Chapter 11 Subchapter V bankruptcy may be of particular interest to venture capital and private equity firms investing in small to lower-middle market businesses, according to Bankruptcy and Reorganization Partner Eyal Berger.

"This could become a playground for private equity," Berger recently told business publication The Deal. "You can use it for the things that may be going wrong in a start-up."

Subchapter V is a relatively recent option for small businesses with aggregate non-contingent and liquidated debt of less than $7.5 million. An Akerman team led by Berger guided a client through bankruptcy late last year in just 33 days using an innovative strategy for prepackaged Chapter 11 bankruptcies under Subchapter V.