What new bankruptcy law means for small businesses Posted on November 26, 2019 by curata Small businesses often struggle to reorganize effectively under Chapter 11 of the Bankruptcy Code. To address this issue, Congress passed the Small Business Reorganization Act of 2019, creating a new subchapter of Chapter 11 of the Bankruptcy Code. The Act takes effect in February 2020. Businesses, lenders and other creditors should understand the risks and opportunities created by this new subchapter of the Bankruptcy Code. The Act aims to make small business bankruptcies faster and less expensive. At this time, the Act only applies to business debtors with secured and unsecured debts, subject to certain qualifications, less than $2,725,625. Some notable provisions of the Act include: • Appointment of a Trustee. The Act provides for the appointment of a trustee who will help facilitate reorganization and may monitor payments to creditors under the debtor’s confirmed plan. • Streamlining of the Reorganization Process. Read the source article at bizjournals.com
Home
