Central Florida leads the nation in Subchapter V bankruptcy filings

Small business Subchapter V bankruptcy elections jumped 46% in the first nine months of 2026, and the U.S. Bankruptcy Court for the Middle District of Florida is leading the country in filings. Orlando bankruptcy firm Juan Burgos Law says the trend underscores how timing and debt levels are shaping whether small businesses can use the streamlined Chapter 11 option.

Why it matters: - Subchapter V is one of the main restructuring tools for small businesses trying to stay open while reorganizing debt. - The filing surge suggests more owners are turning to bankruptcy earlier, before options narrow. - The current debt cap of $3,424,000 limits which businesses can use Subchapter V, even as Congress has approved a higher threshold that has not yet taken effect.

What happened: - National Subchapter V elections rose 46% through the first nine months of 2026 compared with the same period in 2025, reaching 2,442 filings, according to Epiq as reported by BriefGlance/GlobeNewswire. - The U.S. Bankruptcy Court for the Middle District of Florida, based in Orlando, led the country in Subchapter V filings. - The court's newsletter said it recorded 324 Subchapter V cases in the 12 months through June 30, 2026. - Juan Burgos Law said that total reflects Central Florida activity.

The details: - Subchapter V is a simplified Chapter 11 process for small businesses. - The structure lets the business owner remain in control while proposing a repayment plan. - In most cases, creditors cannot force a competing plan. - A court-appointed trustee helps guide the case. - The current maximum debt level for Subchapter V eligibility is $3,424,000. - Congress passed the Bankruptcy Threshold Adjustment Act, H.R. 7730, which would raise the limit to $7.5 million. - As of November 5, 2026, the bill was still waiting for the president's signature. - Juan Burgos Law founder Juan C. Burgos said more Central Florida business owners are learning about Subchapter V before they lose access to it. - Burgos said the debt limit is too low for businesses with $4 million to $5 million in debt, and timing plus debt type can determine eligibility. - Juan Burgos Law says it offers a short case review for that type of question. - The firm handles Chapter 7, 11, 13 and Subchapter V cases in the U.S. Bankruptcy Court for the Middle District of Florida. - The firm represents individuals and businesses and offers free consultations. - Consultations can be scheduled online or by calling (407) 505-4190. - Juan Burgos Law represents clients in English, Spanish and Portuguese. - The firm also offers a plain-language Subchapter V guide for Central Florida business owners, including a Spanish version.

Between the lines: - The Orlando court's ranking points to a regional concentration of small business distress, or at least a higher uptake of the Subchapter V tool, than in other districts. - The pending federal debt-limit change could make Subchapter V available to a broader set of mid-sized businesses if signed into law. - The surge in filings may also reflect greater awareness of a bankruptcy option that is designed to be faster and less complex than a traditional Chapter 11.

What's next: - The key near-term question is whether the president signs the Bankruptcy Threshold Adjustment Act and raises the Subchapter V debt cap. - If the higher threshold takes effect, more businesses with debt above the current ceiling could qualify. - Juan Burgos Law says it will continue offering bankruptcy consultations and educational resources for Central Florida businesses.