SMALL BUSINESS REORGANIZATION-SUBCHAPTER V TO CHAPTER 11

Subchapter 5 was added to Chapter 11 of the U.S. Bankruptcy Code in 2019 to make reorganization bankruptcies more accessible to small businesses. The subchapter went into effect in 2020. Businesses that file under Subchapter 5 can force creditors to accept court-approved repayment plans of three to five years. It gives small businesses earning a profit but having trouble paying their obligations a simplified process for paying down their debt. Businesses that file under Subchapter 5 can force creditors to accept court-approved repayment plans of three to five years. 

If you would like more information regarding the options of reorganization for your Business, call our office today and ask for a consultation with our attorneys, who are experts in Business Bankruptcy. Our attorneys have successfully worked with many businesses to reorganize their businesses before and during the bankruptcy process. Your company may not even need bankruptcy as there are various options available to businesses.