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Bankruptcy & Restructuring Advisory Services

Many people misconstrue bankruptcy, giving it a negative connotation and considering it something to be dreaded. The truth is that when executed correctly, filing for chapter 11 bankruptcy can lift you and your business out of debt, providing you with a fresh financial start.

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What Is Chapter 11 Bankruptcy?

A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a “reorganization” bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements.

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Subchapter V in Chapter 11 Bankruptcy

Created by the Small Business Reorganization Act (SBRA) in 2019 and effective since 2020, subchapter V provides small businesses a streamlined process to pay their debts. Some additional benefits offered by subchapter V include:

  • No need for creditor approval or filing of a disclosure statement
  • Ability to pay expenses in affordable installments
  • Maintain business operations

Subchapter V applies to businesses with under $2.75 million in debt, 50% of which must pertain to business activities.

Successfully Restructuring Your Business

At the DSJ Advisory Group, we have decades of experience assisting businesses with their restructuring plans, giving them a viable path to reemerging as profitable entities. Some of our restructuring advisory services include:

  • Determining liquidity and cash needs
  • Development and implementation of cost-effective strategies and operational improvements
  • Receivable collection
  • Assessment of long-term viability
  • Debt capital advisory
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Wind Down and Liquidation Advisory

If we determine your company is not a going concern, restructuring may not be the best path forward. In scenarios like this, two potential options include dissolution through chapter 7 bankruptcy or a chapter 11 wind down. Filing for either chapter 7 or 11 bankruptcy will grant your business an automatic stay injunction, halting a wide range of debt collections. In addition, the automatic stay provides the time necessary to strategize liquidation.

Chapter 7 Bankruptcy – Quick Facts

Liquidation under Chapter 7 is a common form of bankruptcy. It is available to individuals who cannot make regular, monthly, payments toward their debts. Businesses choosing to terminate their enterprises may also file Chapter 7. Chapter 7 provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent. A Chapter 7 Trustee is appointed to convert the debtor’s assets into cash for distribution among creditors.

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The Right Team in Your Corner

Our advisors understand that your business is unique, requiring an individualized approach that works for you. All of the services we offer share one common goal, helping our clients succeed.

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