Frost Law
In March of 2022, the House passed a bill that would have extended for an additional year the increased debt-eligibility limit for Subchapter V of Chapter 11.¹
It was hoped that the bill would be passed before the sunset date of March 27, 2022, so that even more struggling, debt-laden businesses could continue to access the streamlined, more affordable, Subchapter V process. But the Senate failed to address the matter before March 27, 2022, the threshold reverted back to its lower amount, and now only those businesses with less than $2,725,625.00 in debt qualify for the Subchapter V process.
Congress still appears to be working on this issue, and we will keep you up-to-date as developments and opportunities arise.
In March of 2022, the House passed a bill that would have extended for an additional year the increased debt-eligibility limit for Subchapter V of Chapter 11.¹
It was hoped that the bill would be passed before the sunset date of March 27, 2022, so that even more struggling, debt-laden businesses could continue to access the streamlined, more affordable, Subchapter V process. But the Senate failed to address the matter before March 27, 2022, the threshold reverted back to its lower amount, and now only those businesses with less than $2,725,625.00 in debt qualify for the Subchapter V process.
Congress still appears to be working on this issue, and we will keep you up-to-date as developments and opportunities arise.
