Joseph C. Barsalona II Quoted in Law.com, “Subchapter V Bankruptcy Filings Plummeted After Congress Let Its Qualification Threshold Sunset”
Joseph C. Barsalona II, partner in the Bankruptcy, Restructuring and Creditors’ Rights practice at Pashman Stein Walder Hayden P.C., was recently quoted in an article in Law.com titled, “Subchapter V Bankruptcy Filings Plummeted After Congress Let Its Qualification Threshold Sunset.” The article discusses how Subchapter V cases are facing a downswing after the U.S. Senate failed to uphold its threshold, which was lifted in 2020 to help businesses get through the pandemic. With the limit going back down to $2.7 million in debt to qualify, bankruptcy attorneys are now facing less options for their clients.
"It really came down to [Sen.] Rand Paul[, R-Kentucky]. He's against any type of COVID bill and he misunderstood Subchapter V to be a COVID-based bill when it in fact came out in 2019. But simply because it was [revised during] COVID, he has put his foot down and said, 'I'm not going to support an extension. The [American Bankruptcy Institute], along with all their lobbying efforts, are trying to get it back up. But small businesses are really suffering due to this change,” Joseph Barsalona explained.
To read the full Law.com article, click here.
