Subsection V—A Missed Opportunity to Fix Chapter 11 Bankruptcy
"Bankruptcy practitioners have long recognized that traditional Chapter 11 reorganizations are too complicated, too lengthy and too expensive for any but the largest businesses," writes Michael Napoli of Akerman.
August 30, 2024 at 11:00 AM
5 minute read
BankruptcyIntroduced in 2019, Subchapter V of Chapter 11 of the Bankruptcy Code (11 U.S.C. Section 1181 et seq.) has been an invaluable tool for lawyers advising financially troubled small businesses. It provides a streamlined, cost-effective process for reorganization. Where it applies, Subchapter V has been a great success. It has been very popular in Texas, as well. But, much of that success was due to a temporary change to the law that allowed more companies to qualify for Subchapter V treatment. That change has now expired, taking with it the only viable avenue for many businesses to reorganize.
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