Small Business Bankruptcy
Experienced Counsel for Small Business Bankruptcy in Miami: Lawyers Serving Eligible Businesses Throughout South Florida
If your small business is struggling, it’s worth talking to an experienced bankruptcy attorney about your options. This is common, and for many business owners, the best path forward is pursuing a small business bankruptcy. Miami small businesses have several options, and an experienced attorney can provide the insights you need to make an informed decision about how best to proceed.
Bankruptcy Options for Small Businesses in South Florida
When filing for bankruptcy, small businesses in South Florida have four primary options. While pursuing a Subchapter V small business bankruptcy will prove to be the best option in most cases, it is worth making sure you are considering all of the options you have available:
“Traditional” Chapter 11 Bankruptcy
Pursuing a “traditional” Chapter 11 bankruptcy lets small businesses develop a reorganization plan to pay down their debts over time. In many cases, pursuing a Chapter 11 bankruptcy will involve eliminating (or “discharging”) some of the business’s debts as well. Businesses can also reject executory contracts and sell unwanted assets during a Chapter 11 bankruptcy to free up capital and improve cash flow.
“Traditional” Chapter 11 bankruptcies are complex and intended primarily for larger businesses with substantial debts to multiple secured and unsecured creditors. As a result, in most cases, eligible small businesses should file under Subchapter V.
Subchapter V Small Business Bankruptcy
Subchapter V establishes streamlined procedures for small business bankruptcies. Small businesses can qualify to file under Subchapter V if they have less than $3.42 million in “aggregate noncontingent liquidated secured and unsecured debts” (though Congress approved a bill that would increase the debt limit to $7.5 million in September 2026).
With its streamlined procedures, Subchapter V offers a cost-effective alternative to a “traditional” Chapter 11 filing. If developing a reorganization plan is your business’s best option, our attorneys can determine if filing under Subchapter V is a viable path forward.
“Small Business Case” Under BAPCPA
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) offers another alternative to a “traditional” Chapter 11 bankruptcy: a “small business case.” BAPCPA preceded Subchapter V, and today filing under Subchapter V is more advantageous in most cases. But again, it is worth considering all your options, and our attorneys can help you make an informed decision based on your business’s specific circumstances.
Chapter 7 Liquidation Bankruptcy
If a reorganization plan is unlikely to provide the financial relief your small business needs, consider filing Chapter 7 instead. While Chapter 11 filings (including Subchapter V filings) focus on restoring a business’s financial stability, Chapter 7 filings focus on liquidating a business’s assets and winding up its affairs. Several important factors come into play before filing under Chapter 7, and our attorneys can help you make an informed decision.
Alternatives to Bankruptcy for Small Businesses in South Florida
Importantly, filing for bankruptcy isn’t necessarily the only option for struggling small businesses in South Florida. Several alternatives to bankruptcy can prove highly effective in many scenarios. These include (but are not limited to) alternatives such as:
- Forbearance agreements
- Composition agreements
- Refinancing options
- Debt-for-equity swaps
- Other means of informal debt restructuring
For small businesses considering liquidation, pursuing an assignment for the benefit of creditors (ABC) is another potential alternative. With an ABC, the business’s assets are transferred to an intermediary which then sells the assets in order to pay the business’s creditors.
How to File for a Subchapter V Small Business Bankruptcy
Pursuing a Subchapter V small business bankruptcy formally begins with submitting a voluntary petition under Chapter 11 (and electing Subchapter V status). Practically, however, the process starts before this stage. Once business owners decide to reorganize under Subchapter V, they should work closely with their bankruptcy counsel to take steps including (but not limited to):
- Gathering relevant documentation
- Developing a proposed reorganization plan
- Deciding whether to seek to discharge any debts
- Deciding whether to reject any executory contracts
- Deciding whether to sell any encumbered assets
While business owners should make informed, strategic decisions, prompt action can also be important in some cases. For example, if your small business is facing collection or foreclosure, it may make sense to file immediately to secure the protection of the automatic stay.
Why It’s Important to Work with an Experienced Bankruptcy Attorney
When considering a small business bankruptcy, work with an experienced bankruptcy attorney who can lay out your options and provide strategic advice focused on the future. Each option has different benefits and limitations; if your business is struggling, you need to feel confident you are doing what is best under the circumstances.
Our attorneys have extensive experience advising small business owners and representing businesses on all the options and alternatives discussed above. We can provide the insights you need, and if you need to act quickly, we can start protecting your business interests right away.
Considering a Small Business Bankruptcy in Miami? Contact Us for a Free and Confidential Consultation
If you’re considering a small business bankruptcy in Miami or have questions, we can help. Our attorneys can explain what you need to know and take the necessary steps to protect your business interests once you decide how to move forward. To schedule a free and confidential consultation at Edelboim Lieberman, call us at 305-768-9909 or tell us how we can reach you online today.
