Bankruptcy for Small Business Debtors
Special Rules Apply to Debtors in Small Business Cases
On September 9, 2016, Aure Robleto participated with a panel of speakers at the 21st Annual Bankruptcy Institute in Pittsburgh. The event is conducted annually by the Pennsylvania Bar Institute and consistently draws many of the top bankruptcy practitioners in Pittsburgh. The session was entitled Smaller Chapter 11s and Closely-Held Businesses – (Commercial). The topic evoked a spirited discussion of the merits and drawbacks the small business debtor designation.
As part of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, the United States Bankruptcy Code, the concepts of a small business debtor and a small business case were introduced. The designation of “small business debtor” carriers additional reporting requirements not present in a typical chapter 11 bankruptcy case. In many jurisdictions, including the United States Bankruptcy Court for the Western District of Pennsylvania, a special form disclosure statement must be used that plainly sets out projected revenue and expenses and other important financial data.
Perhaps most critically, the period during which the debtor has an exclusive right to file a plan is slightly longer than that permitted to debtors in chapter 11 bankruptcy cases that are not small business cases. However, in order to have that deadline extended, the debtors’ lawyers must meet very strict timing and pleading requirements. The consequence for failing to meet the deadlines for the filing of a plan and disclosure statement or for confirming a chapter 11 plan are severe and often deprive the debtor of an opportunity to reorganize.
Bankruptcy is complex and small business cases can add a new layer of complexity. Small business owners who want the best chance to keep their company operating should have a comprehensive discussion with an experienced bankruptcy lawyer.
Bankruptcy Law Practice Moves into Three Gateway Center.
On February 1, 2013, Robleto Law, PLLC moved into its new home at Three Gateway Center. After almost three years in an older, less prestigious space, the lawyers and professionals at Robleto Law are very pleased to be settling into our new offices. Three Gateway Center stands only footsteps from the Point State Park, market square, a “T” stop (Pittsburgh’s well-run light rail car system) and the numerous attractions of the cultural district. The grounds of Gateway Center are also home to the Three Rivers Art Festival.
Most importantly, the new law offices are designed to more fittingly service our growing bankruptcy and commercial law practice. Our clients appreciate our commitment to downtown Pittsburgh–both because of our proximity to Pennsylvania’s State and Federal Courts and because of our connection to one of America’s most livable cities. In addition to larger reception and conference areas, we now have the flexibility to have meetings at a traditional conference table or with less formal, couch seating. Our designers have strived to maintain the integrity and stately nature of a Pittsburgh bankruptcy law firm while allowing for greater comfort and flexibility. We recognize that our clients are diverse–from youthful software and design companies to corporate executives.
Our move is a product of our growth and, for that, we thank our outstanding clients. We are delighted to have outgrown our former space but we fully intend to maintain the professional connections with the many fine co-tenants of that building. We also look forward to developing new relationships with the many law firms and professionals with offices in and around Gateway Center.
The professionals at Robleto Law remain committed to providing the high quality legal services our clients have come to expect. We very much hope that our existing and past clients will drop in for a visit.
Robleto Law, PLLC | Three Gateway Center | 401 Liberty Avenue, Suite 1306 | Pittsburgh, Pennsylvania 15222
Pittsburgh Bankruptcy Attorneys.