How will Subchapter 5 of the Bankruptcy Code impact landlords? RLG attorney Dan Gauthier provides insight

By John Egan | National Real Estate Investor

Recent revisions to the U.S. Bankruptcy Code might open the door to headaches and heartaches for landlords that rent to small businesses.

In August 2019, Congress created what’s known as Subchapter 5 of the Bankruptcy Code. Subchapter 5 is designed to streamline the Chapter 11 bankruptcy process for small businesses and slash their legal bills, according to Robert Dremluk, a partner in the New York City office of law firm Culhane Meadows Haughian & Walsh PLLC who specializes in bankruptcy cases.


“The Small Business Reorganization Act should provide ancillary benefits to landlords with small business tenants filing for bankruptcy, as the SBRA provides those tenants with a path through bankruptcy while potentially keeping their doors open for business and thereby the ability to continue to meet lease obligations.” ~Dan Gauthier, Attorney at Rose Law Group