The CARES Act has amended the Bankruptcy Code to provide an expedited and easier version of a business bankruptcy proceeding. We now have “Subchapter V” for small business and individual debtors. This process fulfills a sweet spot for small franchisors and franchisees. It anticipates a Chapter 11-type result, without the administrative headaches and expense, within 90 days of filing.

The purpose of this new section of the Bankruptcy Code is to allow business debtors and certain individuals with debts below $7.5 million to reorganize their obligations under in a much less expensive and streamlined manner.