The Small Business Reorganization Act (“SBRA”), created a subchapter to Chapter 11 bankruptcy, known as Subchapter V (five) (“Sub-V”). The subchapter became effective in February 2020, and available to companies with debt of less than $2.7 million. Effective February 19, 2020, the CARES Act modified the debt limit and raised it to $7.5 million (through March 2021), opening the door to a significant number of additional businesses.
What changed?
A typical Chapter 11 bankruptcy is well known to be a