Francis J. Brennan, Esq., a partner at Nolan Heller Kauffman LLP, will be a member of a panel discussing Subchapter V of Chapter 11 of the Bankruptcy Code for the Upstate New York Chapter of the Turnaround Management Association (TMA) on February 17, 2022.
Is Your Client or Borrower Eligible for the Benefits that a Subchapter V Bankruptcy Can Provide?
Presented by the Upstate New York Chapter of the Turnaround Management Association on Thursday, February 17, 2022, at 5:00 PM – 7:00 PM
Bankruptcy Code: Subchapter V of Chapter 11
Enacted in 2019, Subchapter V of Chapter 11 of the United States Bankruptcy Code, is specifically designed for small businesses to attempt to reorganize their debts. For qualifying small businesses, the statute provides a simplified process to proceed under Chapter 11 and avoids the more cumbersome and complicated procedures applicable to businesses that don’t qualify as small businesses. Until the enactment of Subchapter V, small businesses, defined as those with less than $2,725,625 in debt, were subject to the same statutes, rules, and procedures applicable to larger businesses such as airlines and General Motors.
With the temporary (at this point) increase of that debt limit to $7,500,000 under the CARES Act and Covid-19 Bankruptcy Relief Extension Act of 2021, small businesses have been able to successfully reorganize and continue in business at a rate substantially greater than non-Subchapter V debtors.
If your small business is experiencing financial difficulty and you would like to discuss the potential benefits of Subchapter V of Chapter 11, contact Francis J. Brennan, Esq. at (518) 449-3300, or by email at firstname.lastname@example.org.