A Chapter 11 bankruptcy case gives businesses a chance at a fresh start through a reorganization process that allows them to stay open while going through bankruptcy. However, a basic Chapter 11 case can oftentimes be too expensive and overly complex for small business owners.

As a result, Congress enacted the Small Business Reorganization Act (SBRA), which went into effect in February 2020. The SBRA added “Subchapter V,” 11 U.S.C. §§1181-95, to Chapter 11 of the Bankruptcy Code. Essentially, Subchapter V provides a simplified and quicker process for you to pay down your business debt, while remaining open. It is intended to make the Chapter 11 bankruptcy process quicker and less expensive for smaller businesses that would not have sought Chapter 11 protection, previously.

If you are a small business owner needing a fresh start, you can seek this relief through a Subchapter 5 (“Subchapter V”) Chapter 11 bankruptcy case. Please scroll down for more information about filing a Subchapter 5 Chapter 11 bankruptcy in Orlando.