After its inception in 2019, the Subchapter V bankruptcy filing option exploded in popularity, particularly in Florida, but it just got harder for small businesses to qualify for it.

The Subchapter V option was created to help small businesses file for bankruptcy more easily and with lower fees. After COVID-19 brought urgency to help those same small businesses, the limit of total debt to qualify for the option went from $2.7 million to $7.5 million, expanding the scope of who qualified. On Friday, that limit went back down to $2.7 million after the U.S. Senate failed to move legislation forward that would have kept the higher limit intact for two more years.