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Chapter 11

Is Subchapter 5 a Better Alternative to Traditional Chapter 11 for Small Businesses?

Posted in General Bankruptcy , Chapter 11

Is Subchapter 5 a Better Alternative to Traditional Chapter 11 for Small Businesses?

After fourteen (14) months of enactment, the Subchapter V provisions of Chapter 11 of the Bankruptcy Code has worked remarkably well in terms of simplification and reduction of time and expenses for small business reorganizations. The concern of run-a-way trustee fees has not materialized and plans are being confirmed far quicker and at higher rates than traditional Chapter 11 filings.

New Subchapter 5 of the U.S. Bankruptcy Code

Posted in General Bankruptcy , Chapter 11

New Subchapter 5 of the U.S. Bankruptcy Code

Effective February 19, 2020, the Bankruptcy Code will provide for a somewhat more compact and hopefully, easier version of Chapter 11 Reorganizations for Small Business Corporate and Individual Debtors. It is commonly referred to as a “Subchapter 5.”