Degree Name

Department

Finance

College

Marriott School of Management

Defense Date

2021-03-12

Publication Date

2021-03-12

First Faculty Advisor

Dr. Benjamin Iverson

First Faculty Reader

Professor Brook Gotberg

Honors Coordinator

Dr. Hal Heaton

Keywords

bankruptcy, small business, reorganization, debtor, creditor, Subchapter V, law

Abstract

On February 19, 2020, the Small Business Reorganization Act of 2019 went into effect, ushering in the use of Subchapter V by small business debtors. Lawmakers crafted Subchapter V with the intent to make the reorganization process more streamlined and cost effective than the standard Chapter 11 was for these debtors. With features such as the Subchapter V trustee, cramdown provisions, filing deadlines, lack of a creditors’ committee, and relaxed disclosure requirements, small business debtors should in theory be better positioned to emerge from bankruptcy as viable entities. Through quantitative analysis and qualitative research, this Article explores initial observations on Subchapter V by seeking to reconcile the lens of current research and theory and the viewpoint of practitioners. It also suggests further areas of research.