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Eligibility for Subchapter V Is Liberal, but Not Wide Open

Courts are split on whether the debt providing eligibility for Sub V must have arisen from a business that was active on the filing date.

Bankruptcy Judges Agree: Later Developments Don’t Undo Subchapter V Eligibility

The $7.5 million debt cap for Subchapter V doesn’t include the debt of affiliates who file later.

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