Subchapter V

Subchapter V refers to a specific part of the U.S. bankruptcy code that provides a streamlined process for small businesses to reorganize their debts. Introduced as part of the Small Business Reorganization Act of 2019, it allows eligible businesses to retain control while working out a repayment plan with creditors. This approach is designed to make it easier and quicker for small business owners to navigate bankruptcy, keeping them in operation, preserving jobs, and maximizing value for stakeholders. It typically involves less paperwork and a faster resolution compared to traditional bankruptcy proceedings.