What is Subchapter V Bankruptcy?
One of the obstacles for small businesses attempting to reorganize their financial affairs through bankruptcy is that Chapter 11, the corporate reorganization section of the Bankruptcy Code, can be cumbersome and unwieldy, not to mention expensive, for a smaller business. In 2019, Congress enacted “Subchapter V,” also known as Subchapter 5, to provide a streamlined and cost-effective means for small businesses to restructure their debts, offering a simpler and faster option compared to the traditional Chapter 11 process. Learn more about Subchapter V bankruptcy and how small businesses can more effectively seek debt relief and reorganization.