middle of an LLC chapter 13 and it’s the worst thing I’ve gone through in my life

[despritfreya]

Should not file 11 for small business. They never survive. Only money made is attorney and Trustee.

What the are you talking about? In the six years since the program began, I have only had 6 out of multiple dozens of cases fail. The ones that ended up converting to a Chapter 7 were 2 restaurants, 2 towing companies, 1 audiologist and 1 dentist. All failures were directly related to COVID by way of either the shutdown or the inability to recover after the shutdown. It is probably the best program to date that Congress has come up with to help the mom & pop business that needs bankruptcy protection but can't afford the very large fees charged for the regular Chapter 11. Average total cost of a regular 11 in my firm is $75,000. Average total cost of a Subchapter V Chapter 11 in my firm is $25,000.

One more thing. . . in one of those successful cases my client was able to take a $2 mill secured loan and lower it to $418,000 (the value of the collateral). Yes, the lender could have taken the 1111(b) election and we would have negotiated from there, but fortunately the lender didn't. This successful case (fees were well above the average) saved the jobs of 53 employees and has quietly benefited consumers across the country - including you.

Edt. for correction - it was 8 (not 6) failures. I forgot about the two trucking companies.

Des.

[garybrock]

Should not file 11 for small business. They never survive. Only money made is attorney and Trustee.

[justbroke]

Again, welcome to the forum. You will find nearly any Chapter 11, let alone Subchapter V, debtors on here. This is mostly a consumer bankruptcy with some business involved (including LLC, S Corp, C Corp). But very few business bankruptcies, especially Chapter 11s.

[Kkahanxo]

I have a really good attorney. I did file a Sub chapter V in my 11. The trustee, doing the MORs. I don’t think anything emotionally prepares you for the stress and sleepless nights. I’m at the very end now but just devastated we had to file a continuance before the confirmation hearing. Both issues have been addressed so the case should confirm. Key word should. I joined this forum because I was hoping to talk to other people who’ve been through it and survived. I feel like I’ll have ptsd for years 😂

[justbroke]

I meant chapter 11 😂 it’s been a long week.

Yes, Chapter 11 is difficult. if you attempted or have filed a Chapter 11 on your own, that's a lot. That also makes me wonder why you didn't file a Subchapter V. In a Chapter 11, you are technically a debtor in possession (DIP) and have all the rights of and you are the Trustee. (Unless a Trustee is assigned because they don't think you can do it.)

Most of the time, most business just close and wind down and not go through a Chapter 11. I hope that you received or are receiving assistance from an attorney. A Chapter 11 is no joke.

[Kkahanxo]

I meant chapter 11 😂 it’s been a long week.

[justbroke]

An LLC can't file a Chapter 13. A Chapter 13 can only be filed by an individual. If you're saying that you filed as an individual in a Chapter 13 and you are a member of an LLC and that LLC only has one member, then there can be some interesting dynamics. Otherwise, an LLC can only file a Chapter 7 or Chapter 11 (or Subchapter V).

Welcome to BKForum!

[Kkahanxo]

Hi,

I am currently in the middle of a chapter 13 business bankruptcy and it’s the worst thing I’ve gone through. Some days are so stressful. I’m just before confirmation and the US trustee filed a continuance in my case as well as objection from TD Bank. Both issues have been solved for but I’m so desperate for this to be over and just looking to talk to anyone who has been where I have.