“Subchapter V” Bankruptcy

“Subchapter V” (or “subchapter five”) is a special kind of Chapter 11 bankruptcy that was created during the COVID-19 pandemic and offers a more cost-effective option for small-to-midsize businesses. A Chapter Subchapter V gives much more power to the debtor and much less power to creditors, which allows the process to be streamlined compared to other Chapter 11 bankruptcies. If your business has debts under $7.5 million and you want to restructure or reduce those debts, a Subchapter V may be a highly cost-effective option.