Small Business Bankruptcy Relief Shrinks as Subchapter V Expansion Expires The expiration of the Subchapter V bankruptcy protection filing, which made it easier for small businesses to seek relief, will now complicate the process for those with more than $3 million in debt. This filing type, introduced in 2020 and temporarily expanded during the pandemic, offered a cheaper and less time-consuming alternative to traditional Chapter 11 bankruptcy. It provided benefits such as shorter deadlines, greater flexibility in restructuring plans, and no U.S. Trustee quarterly fees. Data shows that Subchapter V filers had a higher rate of plan confirmation and fewer dismissals compared to other bankruptcy types. The reversion to the lower debt threshold may significantly impact small businesses seeking bankruptcy protection. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Federal Reserve Signals Economic Pivot with Anticipated Rate Reduction READ MORE Gold Inches Higher with Eyes on Major U.S. Economic Reports READ MORE CBO Report: U.S. National Debt to Exceed $56 Trillion by 2034 READ MORE Record Increase in U.S. Labor Costs Points to Continued Inflationary Pressure READ MORE August Jobs Data: Key to Fed's September Rate Decision READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment