The enactment of the Small Business Reorganization Act (“SBRA”) has added a new subsection to Chapter 11 of the Bankruptcy Code, which is being referred to as a Subchapter V.  Subchapter V was created to offer small business debtors a faster and less expensive Chapter 11 reorganization path.  The Chapter 11 bankruptcy attorneys at Gregory K. Stern, P.C. are available to discuss this new reorganizational option. The SBRA and Subchapter V include many new provisions, but here are some of the key differences between a Subchapter V case versus a regular Chapter 11 case. Eligibility To be eligible for Subchapter V, a debtor (whether an entity or an individual) must be engaged in commercial activity and its total debts -- secured and unsecured – must normally be less than $2,725,625.  Section 1113 of the CARES Act has increased the debt limit to $7,500,000. The increased debt limit applies to cases filed after the enactment of the CARES Act and is valid for one year after the CARES Act becomes effective (March 27, 2021). Thereafter, the debt limit will be reduced back to $2,725,625. In addition, single asset real estate debtors are ineligible for relief under Subchapter V. At least half of those debts must come from business activity.  The debtor's principal activity cannot be a single-asset real estate operation.  The debtor must elect to proceed under [...]