Subchapter V
STREAMLINED SMALL BUSINESS RESTRUCTURINGS

​What Is Subchapter V—and Why Should You Care?

If your business is overwhelmed by debt, struggling with cash flow, or facing legal threats from creditors, Subchapter V may be the solution you've never heard of—but desperately need.

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Designed specifically for small and mid-sized businesses, Subchapter V is a faster, less expensive, and more owner-friendly version of Chapter 11. It allows you to reduce or eliminate unsecured debt, restructure secured obligations, and stay in control of your company throughout the process.

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Eliminate Debt Without Losing Your Business

Unlike traditional Chapter 11, Subchapter V eliminates the need for creditor approval of your restructuring plan. There’s no creditors’ committee. Competing plans are not allowed. And most importantly, you stay in charge.

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Whether you’re battling SBA or EIDL loan defaults, MCA debt, judgment enforcement, or simply overextended operations, Subchapter V can reduce what you owe to what your business can afford, all while protecting your equity and operations.

 

How Do You Qualify for Subchapter V?

To be eligible, your business must:

• Be engaged in commercial activity

• Have secured and unsecured debts totaling less than $3,424,000, not including disputed or insider debts (likely to be raised back to $7.5 million)

• Not be a publicly traded company

 

Even if your business is in active litigation, has defaulted on loans, or is facing foreclosure or receivership, you can still qualify.

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Why Subchapter V Works So Well

Subchapter V was created in 2019 to give struggling businesses a real chance to survive and thrive. Here’s what makes it so powerful:

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• You propose the plan. No competing plans from creditors.

• No creditor approval needed if the plan meets basic fairness and feasibility tests.

• Equity can be retained without full repayment of creditors.

• Streamlined process with reduced legal and court costs.

 

In short, it was built for moments like this—when good businesses are buried by debt and need a fresh start.

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Subchapter V in Action—How EmergeLaw Makes It Work

At EmergeLaw, we’ve helped dozens of companies use Subchapter V to eliminate burdensome liabilities, restructure secured debt, eliminate excessive unsecured debt and emerge stronger—without losing their company to creditors or court-appointed professionals.

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We know how to:

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• Position your case to succeed from day one

• Avoid the traps that can derail a Subchapter V filing

• Use the automatic stay to stop lawsuits, judgments, foreclosures, and collection

• Craft realistic repayment plans that your business can actually meet

 

And when you work with us, you won’t feel like just another case—we understand that your business is your life’s work.

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Think You Can’t File? Think Again.

Even if you think your debt is too complex or your situation too dire, Subchapter V may still work. Many of our clients initially believed they had no options left—only to find that Subchapter V was the exact tool they needed to preserve their business, jobs, and future.

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If your business is drowning in debt, Subchapter V may be your lifeline.

Request a confidential consultation with EmergeLaw today.​​