Akerman Fraud and Recovery Practice Partner Michael Napoli discusses the disappointing rollback of Chapter 11's Subsection V in a this new Texas Lawyer column.

Introduced in 2019, Subchapter V of Chapter 11 of the Bankruptcy Code provides a streamlined, cost-effective process for reorganization. Much of that success was due to a temporary change to the law that allowed more companies to qualify for Subchapter V treatment, but that change expired, taking with it the only viable avenue for many businesses to reorganize.

"Small, generally family-owned, businesses were simply priced out of the [Chapter 11] process," Napoli writes. "To remedy this, Subchapter V made some key changes to the Bankruptcy Code to make the process more efficient in smaller cases."