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sub chapter 5 is a type of chapter 11
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that’s made for small business it
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started in
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2019 and the debt limit currently is 7.5
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million which means the business cannot
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have more than $7.5 million in debt
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though that is subject to change and
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it’s very beneficial for the business or
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even a person who’s filing the business
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or person has to be engaged in some sort
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of commercial activity the reason why
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it’s so beneficial is number one a vote
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is not required to confirm a plan so to
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get the payment plan approved by the
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court it is not essential for any
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creditor to vote in favor of it number
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one number two it’s a faster process and
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a cheaper process number three there’s
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no absolute abute priority Rule and the
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absolute priority rule means that a
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person cannot maintain equity in their
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company unless all the junior unsecured
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creditors are paid in full in the sub
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chapter 5 that rule doesn’t exist so for
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small business owners sub chapter 5 is
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extremely beneficial