Timeline of Subchapter V
Subchapter V enacted with $2,725,625 debt ceiling
During COVID-19
Ceiling raised to $7,500,000
Higher limit expired
Current
Debt ceiling receded to $3,024,725
ABI Subchapter V Task Force Findings
The ABI Subchapter V Task Force's Final Report recommends making the $7.5 million debt limit permanent. Their study found that under the higher limit:
Confirmations occur more often and quickly.
Costs are lower than in other bankruptcy cases
Creditors receive more money
ABI wants to hear from you
ABI is continuing its study of Subchapter V, and it needs your help! We are particularly interested in learning more about the real-world impact of Subchapter V. So our question is, do you have a story about a distressed business or creditor who has used or benefitted from the subchapter? If so, could that case still happen under the lower debt cap for Subchapter V debtors? Any and all responses welcome. Please submit your stories using the form below