Chapter 11 Subchapter V

Chapter 11 bankruptcy is a type of bankruptcy that is typically used by businesses to reorganize their debts and assets. Subchapter V of Chapter 11 is a new provision that was added to the bankruptcy code in response to the COVID-19 pandemic. It is designed to provide a streamlined and less expensive bankruptcy process for small businesses.

Subchapter V of Chapter 11 allows small businesses to reorganize their debts and create a repayment plan under the supervision of a bankruptcy trustee. The repayment plan must be approved by the bankruptcy court and must be feasible, meaning that it is realistic and will be able to be completed.

One of the main benefits of Subchapter V of Chapter 11 is that it allows small businesses to retain control of their operations while going through the bankruptcy process. In traditional Chapter 11 bankruptcy, a business may be required to turn over control to a bankruptcy trustee, which can be disruptive to the business's operations.

Subchapter V of Chapter 11 is only available to small businesses, which are defined as businesses with fewer than $7,500,000 in debts.