In business, the word "bankruptcy" carries a stigma. But the reality is far from the common perception. Bankruptcy is not the end of the road. It's a financial tool designed to provide relief and, in many cases, a path to continue operating.
The most successful business owners understand when to use every tool available to protect what they've built. That includes knowing when restructuring, reorganization, or even an orderly wind-down makes more strategic sense than continuing to fight a losing battle against mounting debt.
At Shelomith Law, we've guided businesses of all sizes through complex debt situations. Our goal is to help you understand your options clearly so you can make the decision that's right for your business, your employees, and your future.
If any of these sound familiar, it may be time to explore your options:
Creditors are threatening lawsuits or have already filed
You're falling behind on payroll, rent, or essential vendor payments
Cash flow no longer covers operating expenses
You're personally guaranteeing business debts and worried about personal liability
You're considering closing but don't know how to handle outstanding obligations
Aggressive collection actions are disrupting your ability to operate
These situations don't resolve themselves. But with the right strategy, you can regain control and protect what matters most.
Chapter 11 allows your business to continue operating while you develop a court-approved plan to repay creditors over time. It provides breathing room from collection actions and the opportunity to renegotiate terms with creditors.
Who it's for: Businesses with viable operations that need time and structure to reorganize their finances and reduce debt burdens.
The Small Business Reorganization Act (SBRA) created Subchapter V to make Chapter 11 reorganization more accessible and affordable for small businesses. It eliminates many of the costly and time-consuming requirements of traditional Chapter 11 while allowing you to keep operating during the process.
Who it's for: Small businesses with debts below the Subchapter V threshold that want to reorganize without the complexity and expense of traditional Chapter 11.
An Assignment for the Benefit of Creditors (ABC) is a state-level process that can serve as an alternative to federal bankruptcy. The business transfers its assets to an assignee (trustee) who liquidates them and distributes proceeds to creditors. It can be faster, more private, and more flexible than bankruptcy in certain situations.
Who it's for: Businesses looking for a quicker, more discreet wind-down process without the federal court involvement of bankruptcy.
Chapter 7, sometimes called "liquidation bankruptcy," allows you to discharge most unsecured debts like credit cards, medical bills, and personal loans. The process is typically completed within a few months from filing to discharge.
Who it's for: Individuals with limited income who cannot realistically repay their debts.
Business bankruptcy requires deep expertise in corporate law, creditor negotiations, and court procedures. Here's why clients trust us with their most complex cases:
Zach Shelomith is one of the few attorneys in Florida Board Certified in both Business Bankruptcy and Consumer Bankruptcy Law, demonstrating recognized expertise in complex business debt matters.
Chambers ranked, Best Lawyers recipient, Super Lawyers Top 100. Attorneys across South Florida refer their toughest bankruptcy matters to our firm.
We understand that business bankruptcy is as much a business decision as a legal one. We help you evaluate options in terms of your goals, not just legal technicalities.
Every business situation is unique. We develop strategies tailored to your specific debts, assets, operations, and objectives.
We've represented both debtors and creditors, giving us insight into how the other side thinks and what it takes to reach workable agreements.
From initial strategy session through final resolution, we guide you through every step and keep you informed along the way.
The duration of the bankruptcy process depends on the type of bankruptcy filed. A Chapter 7 bankruptcy typically takes about 4-6 months from filing to discharge, while a Chapter 13 bankruptcy plan lasts 3-5 years.
Qualifying for bankruptcy in Florida involves several factors, including your income, the type and amount of your debts, and your ability to repay your debts. A bankruptcy attorney can help you understand these requirements and determine if bankruptcy is the right option for you.
The income limit for Chapter 7 bankruptcy in Florida is determined by the state's median income and your household size. If your income is below the state median, you can file for Chapter 7. If it's above, you may still qualify after passing the Means Test, which considers your disposable income and unsecured debts.
In Florida, there's no minimum amount of debt required to file for bankruptcy. We typically don't take on cases with less than $15,000 in debt. We believe that in such situations, other debt relief options may be more beneficial and cost-effective.
While technically you can file for bankruptcy on your own (pro se), it's not recommended. The process is complex and requires a thorough understanding of bankruptcy law. Mistakes can be costly, jeopardizing your financial future. For instance, imagine accidentally leaving a valuable asset off your bankruptcy forms, only to have it seized and sold to repay your creditors. With so much at stake, it's wise to seek professional help.
