Debt Limit
Aggregate noncontingent, liquidated debts must not exceed $7.5 million (as extended by Congress). This includes both secured and unsecured debts. Contingent and unliquidated debts are excluded from the calculation.
Business Activity Requirement
At least 50% of debts must arise from the debtor's commercial or business activities. This excludes primarily consumer debtors. A sole proprietor with mostly business debts qualifies. A wage earner with mostly personal debts does not.
Exclusions
Single asset real estate debtors are excluded. Entities whose primary activity is the business of owning single asset real estate cannot use Subchapter V. Affiliates of publicly traded companies are also excluded.
Who Can File
Individuals, partnerships, LLCs, and corporations can all file under Subchapter V. The debtor elects Sub V at the time of filing by checking the appropriate box on the petition.
Learn about Sub V discharge
Section 1192 Guide