Reorganize Your Business Debt Without Losing Control
If you’re a small business owner in Boynton Beach struggling with overwhelming debt, lease obligations, or vendor disputes, you may feel like bankruptcy is your last resort. But thanks to a powerful update to the bankruptcy code—Subchapter V of Chapter 11—you now have a more efficient, cost-effective way to restructure your business and stay open.
At Wallace Law, PLLC, we help small businesses in Boynton Beach, Palm Beach County, and throughout South Florida use Subchapter V to regain control of their finances and return to profitability.
What Is Subchapter V?
Subchapter V is a special section of the Chapter 11 bankruptcy code created by the Small Business Reorganization Act (SBRA) of 2019. It was designed to simplify the Chapter 11 process for businesses with under $7.5 million in debt, allowing them to:
- Stay in control of business operations (debtor-in-possession status)
- Eliminate unsecured debt without creditor approval of a repayment plan
- Avoid the high costs and delays of traditional Chapter 11
For small and mid-sized businesses in Boynton Beach, Subchapter V offers the speed and flexibility needed to restructure without shutting down.
Who Qualifies for Subchapter V?
Your business may be eligible if:
✅ You are engaged in commercial or business activity
✅ Your total debt is under $7.5 million (including secured and unsecured debt)
✅ At least 50% of that debt is from business activity
✅ You are not a single-asset real estate entity
Wallace Law helps clients evaluate eligibility and prepare filings that comply with all requirements of the Southern District of Florida (West Palm Beach Division).
Benefits of Subchapter V for Boynton Beach Businesses
Unlike traditional Chapter 11, Subchapter V:
- Removes the creditors’ committee (saving time and money)
- Appoints a Subchapter V trustee to facilitate—not control—the case
- Allows you to confirm a reorganization plan without a creditor vote
- Requires a plan to be filed within 90 days (faster turnaround)
- Reduces attorney fees and court costs for eligible businesses
This makes it ideal for businesses in retail, hospitality, construction, healthcare, and professional services that operate in or around Boynton Beach, Delray Beach, and Boca Raton.
Common Use Cases in Palm Beach County
Wallace Law has seen an uptick in local businesses using Subchapter V to:
- Renegotiate expensive commercial leases or rent arrears
- Consolidate vendor and supplier debt
- Reorganize cash flow after COVID-related slowdowns
- Prevent judgment creditors or lenders from forcing liquidation
- Keep valuable contracts and employees in place while restructuring
The Subchapter V Process: What to Expect
- Initial Consultation: We evaluate your eligibility, debts, and goals
- Petition Filing: We draft and file your Chapter 11 case in the West Palm Beach Division
- Trustee Appointment: A Subchapter V trustee is assigned (they do not take control of your business)
- Plan of Reorganization: Filed within 90 days, this plan outlines how you’ll pay debts over 3–5 years
- Court Approval: Your plan can be approved even if creditors object, provided it meets certain criteria
- Fresh Start: Once the plan is complete, remaining unsecured debts may be discharged
Why Work with Wallace Law?
At Wallace Law, we’re not just bankruptcy attorneys—we’re trusted legal partners to South Florida’s business community. Based in Boynton Beach, we understand the real-world pressures local business owners face. Our firm brings:
✅ Deep experience with local courts, trustees, and creditor negotiations
✅ Personalized, cost-sensitive strategies for small business restructuring
✅ A hands-on approach that keeps you informed and in control
📞 Ready to Rebuild Your Business?
Don’t let debt force you out of the market. Subchapter V may be your best path to recovery—and Wallace Law is ready to help.
👉 Call Wallace Law, PLLC at (561) 400-3896
📍 Office: 2500 Quantum Lakes Drive, Suite 203, Boynton Beach, FL 33426
🌐 www.wallacelawflorida.com
📆 Schedule a confidential consultation today.
Let’s restructure your business and protect what you’ve worked so hard to build—right here in Boynton Beach.