SUBCHAPTER V
YOUR GUIDE TO SUBCHAPTER V BANKRUPTCY
Are you feeling overwhelmed by debt and need a way to get back on track? You may want to consider bankruptcy, specifically Subchapter V of the Bankruptcy Code. This type of bankruptcy allows small business owners and individuals to reorganize their debt in a way that makes it easier for them to pay off. Let’s take a closer look at what this type of bankruptcy entails, who qualifies, and how it can help you get back on track financially.
WHAT IS SUBCHAPTER V BANKRUPTCY?
Subchapter V bankruptcy is an option available under Chapter 11 of the United States Bankruptcy Code. It was created in 2019 as part of the Small Business Reorganization Act (SBRA) and offers some key advantages over traditional Chapter 11 bankruptcies. The main difference between the two types of bankruptcies is that with Subchapter V, there are no creditors’ committees involved and the debtor (the person filing for bankruptcy) can use their own plan to repay their debts. This means that the debtor has more control over how they will repay their debts and can negotiate with creditors if needed.
BENEFITS OF SUBCHAPTER V BANKRUPTCY
One of the main benefits of Subchapter V is that it provides more flexibility than traditional Chapter 11 bankruptcies. The debtor has more control over how and when they will repay their debts, as well as which creditors will be paid first. Additionally, this type of bankruptcy does not require a court-approved plan or disclosure statement, so it can be quicker and less expensive than other forms of bankruptcy. Finally, it also allows small business owners or individuals to remain in control of their assets while they repay their debts instead of handing them over to a trustee appointed by the court.
IS SUBCHAPTER V BANKRUPTCY RIGHT FOR YOU?
One of the main benefits of Subchapter V is that it provides more flexibility than traditional Chapter 11 bankruptcies. The debtor has more control over how and when they will repay their debts, as well as which creditors will be paid first. Additionally, this type of bankruptcy does not require a court-approved plan or disclosure statement, so it can be quicker and less expensive than other forms of bankruptcy. Finally, it also allows small business owners or individuals to remain in control of their assets while they repay their debts instead of handing them over to a trustee appointed by the court.