The goal of most corporate reorganization cases is for the company to obtain a “discharge” of its debts, and obtain a “fresh start.” Though a Chapter 11 plan will discharge most types of debts, certain debts are deemed ineligible for discharge for public policy reasons. These debts are excepted from discharge under Section 523(a) of the Bankruptcy Code.

In 2019, Congress enacted subchapter V in the Small Business Reorganization Act as a streamlined, less expensive alternative to traditional Chapter 11 cases. Case law is still evolving under this relatively new law; the latest issue is whether a corporate debtor in a subchapter V case is subject to the non-dischargeability provisions of Section 523(a).