ABI’s Subchapter V Task Force Final Report Provides Key Recommendations to Bolster the Ability of Small Businesses to Reorganize Under Subchapter V of The Bankruptcy Code
The ABI Subchapter V Task Force unveiled its final report of recommendations, revealing that subchapter V of chapter 11 of the U.S. Bankruptcy Code is achieving its objective of helping more small businesses reorganize efficiently in bankruptcy while also offering best practices and potential statutory amendments for policymakers, judges and practitioners to consider. The key recommendation highlighted by the Task Force’s Final Report was the support for permanently maintaining the filing eligibility limit of $7.5 million in aggregate noncontingent, liquidated debt for small businesses looking to reorganize under subchapter V.