Daily Business Review Interviews Luis Salazar on Bankruptcy Filings
October 22, 2024 Posted in Firm News
Small businesses in debt are finding it more difficult to find options to overcome financial distress now that Subchapter V bankruptcy filings require a threshold of $2.7 million. To help more businesses during COVID, the federal government had increased that limit in 2020 to $7.5 million, which the U.S. Senate let sunset this year.
“Companies with over $2 million in size but under tens of millions in size find it really hard and really prohibitive in terms of the complexity and expense to go into a Chapter 11. A lot of times, what we're forced to do for them is use litigation as a means of getting leverage or negotiating with creditors and interested parties and try and do out-of-court workouts, which can be very uneven and very difficult," Mr. Salazar commented to the Daily Business Review about the limited options available to small businesses seeking financial recovery.
Salazar Law’s Reorganization and Bankruptcy Team has decades of experience representing clients in every aspect of reorganizations, restructurings, workouts, bankruptcies, liquidations, and distressed acquisitions and sales, as well as cross-border proceedings.
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