The Restructuring Report

Receiverships and ABCs are increasingly attractive alternatives to bankruptcy in the Upper Midwest. Bankruptcy has become unaffordable or inaccessible for many businesses, prompting states to modernize their state remedies.

Merchant cash advances promise fast cash to struggling small businesses, but their rigid daily repayments and personal guarantees often deepen financial distress instead of relieving it. A sharp drop in the Subchapter V debt limit to just $3.42 million now locks many MCA-burdened businesses out of this streamlined bankruptcy option, forcing them into costlier Chapter 11, Chapter 7 liquidation or state-court alternatives.