Reported 12 months ago
A type of bankruptcy protection filing, known as Subchapter V, that simplified relief for small businesses with more than $3 million in debt has expired. This will complicate filing for small businesses as the easier and cheaper Subchapter V option offered under the Small Business Reorganization Act reverted to the original $3 million debt limit in June 2024. Subchapter V filing imposes shorter deadlines, offers more flexibility in negotiating restructuring with creditors, and does not require U.S. Trustee quarterly fees, with higher success rates in confirming reorganization plans compared to other bankruptcy protection types.
Source: YAHOO