Subchapter V Bankruptcy for Retail & E-commerce
If a cash advance company is pulling from your account every single day, that stops the moment we file. Subchapter V bankruptcy freezes the daily ACH pulls, then restructures the advances and the inventory debt into one plan the store can actually pay. You decide whether to keep the storefront lease by catching up the back rent, or to walk away from a lease that no longer works. You keep selling on the shelf and online the whole time.
Stop the daily pulls, keep selling
Retail runs on thin margins, and a stack of daily-draw cash advances can drain a good store faster than any slow season would. Subchapter V halts those withdrawals and reorganizes what you owe into a single plan the register can support, whether the sale rings up in the shop or on a marketplace.
Retail debts we restructure
- Inventory and supplier financing
- Back rent on a storefront you leave, or a negotiated catch-up on one you keep
- Merchant cash advances, the kind that pull every day
- Marketplace holds and reserves on your online payouts
- Store credit cards and POS equipment financing
- SBA loans and pandemic EIDL loans
How Subchapter V helps retailers
- Cut off the daily cash-advance withdrawals at filing
- Keep ringing sales on the shelf and on every online channel
- Roll supplier and inventory debt into one plan the register can meet
- Keep a storefront lease that works or step out of one that does not
- Stay the owner and keep making the buying calls throughout
How it works
A clear path for shop and online store owners.
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Step 1 of 4
Free consultation
We look at your cash advances, your inventory financing, and your sales history to figure out whether Subchapter V clears the path or another route is smarter.
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Step 2 of 4
File and stop collections
The day we file, the automatic stay cuts off the daily ACH pulls along with the lawsuits and the collection calls, which is often the breath the store needs.
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Step 3 of 4
Build the plan
We build a three-to-five-year plan around what the store nets after a normal sales cycle, not a peak-season fantasy.
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Step 4 of 4
Stay open
Once the plan is confirmed, you fund it from ongoing sales and keep running the business, online and in-store.
Common questions about Subchapter V for Retail and E-commerce
Will this stop the daily withdrawals from my cash advance?
Usually, yes. Once we file, the automatic stay bars creditors from collecting what you owe, and that covers daily ACH pulls on a cash advance. How the advance is treated in the plan depends on the contract. Some funders argue they bought your future sales instead of lending you money, and we sort that out early in the case.
What happens to my online payouts and marketplace holds?
Marketplaces sometimes hold back a reserve against returns, and that reserve is a receivable of the business, not something the filing wipes out. We account for those holds in general terms in the plan, since the exact treatment depends on your seller agreements, and the aim is to keep the payouts flowing.
What happens to my inventory and suppliers?
Filing stops supplier lawsuits and folds the old balances into the plan, and you keep the stock you need to run. Most vendors would rather keep shipping to a paying store than chase a closed one.
What about my store lease?
If the storefront still earns its rent, you can keep the lease. Keeping it means catching up any past-due rent, and the decision has to be made within a few months of filing. If it has become an anchor, Subchapter V lets you step out and limit what the landlord can claim.