Chapter 11

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.

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.”