Bankruptcy filings, particularly Chapter 11 bankruptcy reorganization filings, are on a significant rise. Approximately 3,000 commercial Chapter 11 bankruptcy cases were filed in the first six months of 2023, an increase of more than 60 percent over the prior year. These cases include the most prominent bankruptcy filings—often in Delaware, Southern District of Texas or Southern District of New York. Approximately 900 small business Chapter 11 bankruptcy filings—Subchapter V cases—were filed during the first six months of 2023, which is a similar increase to the Chapter 11 commercial filings over the prior year and which is projected to continue. Subchapter V bankruptcy reorganization cases involve a business or individual with less than $7.5 million in debt and are being filed with increasing frequency across the country, including in Minnesota and other upper Midwest states.
While the rate of filing Subchapter V cases is increasing, many—including bankruptcy practitioners and financial advisors—lack command of the uses and strategies of small business reorganization filing, including the additional and powerful rights afforded to the debtor. The accompanying materials succinctly describe the individuals and businesses that qualify for a Subchapter V filing, the distinct advantages as well as challenges of such a filing, and the stream-lined reorganization process.
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Ryan is a skilled negotiator and regularly resolves issues out of court. He is also a seasoned litigator and represents parties in bankruptcy, receiverships and commercial litigation across the country. He has extensive ...