Florida Chapter 11 Bankruptcy Attorney
Florida Chapter 11 and Subchapter V attorney helping businesses and high-debt individuals reorganize their debt and keep operating, not liquidate. Schedule a free, confidential consultation.
By Robert A. Stiberman, Esq., Member of The Florida Bar since 1998, representing Florida debtors since 2009. Last reviewed: July 2026.
Chapter 11 lets a business, or an individual with debts too large for Chapter 13, reorganize obligations while staying in control and, for companies, keeping the doors open. Instead of liquidating, you propose a plan to restructure and repay debt on sustainable terms. It’s the most powerful and most complex chapter of the Bankruptcy Code, and since 2020 a streamlined version, Subchapter V, has made it genuinely practical for small businesses.
I’m Robert Stiberman, admitted to The Florida Bar since 1998 and to all three Florida federal bankruptcy districts. Here’s how Chapter 11 works and who it fits. To discuss your situation, schedule a free consultation.
What Chapter 11 Is
Chapter 11 is a reorganization. You become the “debtor-in-possession,” meaning you keep running the business while under court protection. The automatic stay stops collection, lawsuits, and foreclosure the moment you file, giving you breathing room to negotiate with creditors and propose a plan that the court can confirm. Most businesses continue operating throughout. Most owners are relieved to learn they can keep their business and keep operating it in Chapter 11.
Who Chapter 11 Is For
- Businesses, corporations, partnerships, and LLCs, that are viable but overloaded with debt.
- Individuals with very high debts who exceed Chapter 13’s limits (over $1,580,125 secured or $526,700 unsecured).
- Business owners who need to restructure leases, vendor contracts, or secured loans while staying open.
This includes property-holding companies: if your LLC owns a single income property in foreclosure, see our guide to single asset real estate Chapter 11 in Florida.
Subchapter V, Streamlined Chapter 11 for Small Business
Subchapter V (added by the Small Business Reorganization Act) makes reorganization faster and far less expensive for qualifying small businesses. Key features: no creditors’ committee, no separate disclosure statement, a trustee who facilitates rather than displaces you, and relaxation of the “absolute priority rule” so owners can keep their equity.
Eligibility: under 11 U.S.C. § 1182, your business must have aggregate noncontingent, liquidated secured and unsecured debts at or below $3,424,000 (the figure as of January 1, 2026; it is adjusted for inflation), at least half of which arose from business activity. Note: this limit was temporarily $7.5 million until that increase sunset in June 2024, and legislation to restore $7.5 million is pending, we monitor this, since it directly affects who can use Subchapter V. For more, see our overview of Florida Chapter 11 Subchapter V small-business reorganization. For the current figure and where the bill stands, see our regularly updated guide to the Subchapter V debt limit and the S. 3977 bill.
Stopping Merchant Cash Advance (MCA) Sweeps
Merchant Cash Advances are the fastest-growing threat to Florida small businesses. An MCA isn’t a normal loan, it takes a fixed amount out of your bank or merchant account every day or every week, and when several stack up, they drain the cash a business needs to operate. Many MCA companies also freeze merchant accounts or file UCC liens to choke off revenue.
Filing Chapter 11 or Subchapter V triggers the automatic stay (11 U.S.C. § 362), which stops the daily sweeps and account freezes the moment you file. From there, we work to separate legitimate secured debt (equipment loans, SBA loans) from MCA claims, which are frequently unsecured or challengeable, so your plan pays what is genuinely owed on fair terms rather than whatever an MCA contract demanded. For many owners, this is the difference between closing the doors and staying open. If your accounts are already frozen, call us right away, the sooner we file, the more options you have. In some cases an MCA may not even be a valid, enforceable debt, see our analysis of whether your MCA is actually an illegal loan. For a deeper look at how filing stops the daily withdrawals, see our guide on how to stop Merchant Cash Advance sweeps in Florida.
Why Work With Stiberman Law
Chapter 11 is the most demanding area of bankruptcy practice, where strategy and execution determine whether a plan gets confirmed. I’ve practiced Florida bankruptcy since 2009 and am admitted across all three Florida districts. We bring large-case discipline to small and mid-sized Florida businesses, and we’ll tell you honestly whether Subchapter V, standard Chapter 11, or a different path serves you best.
Proven Subchapter V Results Across Florida
Real, confirmed Subchapter V reorganizations:
Plumbing contractor, South Florida (SDFL, Miami Division). A family-owned plumbing company had taken on SBA loans and lines of credit to bridge a downturn and keep payroll running, and emerged with an unsustainable debt load. We filed Subchapter V, kept the company operating under the automatic stay (with court authority to use cash collateral and pay wages), and continued its financed service vehicles on their existing terms. On the unsecured side, of roughly $296,000 in general unsecured claims, the confirmed plan pays about $32,700 over three years, an estimated 11%, compared with the 0% those creditors would have received in a Chapter 7 liquidation, eliminating close to $263,000 (about 89%) of the unsecured debt. With every voting class accepting the plan and no objections filed, the court confirmed it on a consensual basis under 11 U.S.C. § 1191(a) in July 2026, and the business kept operating with its workforce intact.
Take-out restaurant, South Florida (SDFL, Fort Lauderdale Division). After COVID losses and predatory Merchant Cash Advance loans froze its accounts, a neighborhood restaurant faced ~$810K in debt. When consensus wasn’t possible, we confirmed the plan non-consensually, a cramdown over creditor objection, and the restaurant stayed open.
Organic agricultural manufacturer, Central Florida (MDFL, Orlando Division). Facing multi-state regulatory action and class-action litigation, this manufacturer used Subchapter V to contain its legal exposure and keep operating, with a plan confirmed on a consensual basis.
Pool-service company, Central Florida (MDFL, Orlando Division). A pool installation and maintenance company with about 16 employees had stacked multiple high-interest MCA loans on top of significant secured debt, a financed vehicle fleet, SBA-type loans, and inventory financing, well over $2 million against limited free cash flow. We used Subchapter V to separate genuine secured financing from the MCA claims, obtain authority to use cash collateral and keep payroll running, and structure a plan the business could sustain. The result: a confirmed plan, continued operations, and roughly 16 jobs preserved.
We’ve confirmed Subchapter V plans in both the Southern and Middle Districts of Florida, across manufacturing, food service, and home-services businesses, consensually and, when necessary, through a contested cramdown.
Past results do not guarantee a similar outcome.
See more Florida bankruptcy case results, including additional Subchapter V outcomes.
Schedule a Free Consultation
Discuss your business or high-debt situation with a Florida Chapter 11 attorney. Call 954-922-2283 or request a free consultation. Confidential, with responses in under 24 hours.
We serve businesses across the state, see our areas we serve.
