Congress' Failure to Extend Subchapter V Debt Limit Hurts Small Businesses

Where it applies, Subchapter V has been a great success. But, much of that success was due to a temporary change to the law that allowed more companies to qualify for Subchapter V treatment. That change has now expired, taking with it the only viable avenue for many businesses to reorganize.

5 minute read October 01, 2024 at 12:09 AM
By
Michael Napoli
Congress' Failure to Extend Subchapter V Debt Limit Hurts Small Businesses

Introduced in 2019, Subchapter V of Chapter 11 of the Bankruptcy Code (11 U.S.C. Section 1181 et seq.) has been an invaluable tool for lawyers advising financially troubled small businesses.

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