The Wall Street Journal quoted Bankruptcy and Reorganization Partner Eyal Berger this week in an article discussing the recent increase in bankruptcies filed under Chapter 11 Subchapter V. The newspaper highlighted thoughts Berger shared as a featured speaker with an audience at an American Bankruptcy Institute event in April. During that panel, Berger attributed the increase in Subchapter V filings to the potential for a major change in the law.

Subchapter V was created as part of the Small Business Reorganization Act of 2019 and capped eligible businesses to those with less than $2.7 million in debt. In response to pandemic-fueled economic stresses, Congress authorized a temporary increase to $7.5 million for cases filed on or after March 27, 2020. That authorization is set to end on June 21, and it isn't clear if the debt cap will be lowered or not.

In addition to being a thought leader on the subject, Berger led an Akerman team that represented a client through bankruptcy late last year in just 33 days using an innovative strategy for prepackaged Chapter 11 bankruptcies under Subchapter V.