Much has been written about the recently passed Small Business Reorganization Act regarding Subchapter V of Chapter 11. Basically, the new subchapter, which went into effect about one year ago, is intended to give small business bankruptcies a simplified way of filing chapter 11. Prior to Subchapter V being enacted, Small businesses, companies with debts of less than 2.7 million dollars proceeded under special Small Business Bankruptcy provisions. It is important to note that the prior Small Business Bankruptcy law is still valid law. If a small business files for bankruptcy and does NOT specifically elect to be a Subchapter V bankruptcy then it will automatically be a Small Business Bankruptcy under the prior existing law. An experienced bankruptcy attorney will consider the advantages and disadvantages of each bankruptcy in determining the best way to proceed. See more on these and other business bankruptcy issues here: https://www.bravermanlaw.com/business-bankruptcy/
