Addition to Ch.11 Bankruptcy Code – Small Business Reorganization Act (SBRA) – The National Law Review

Last month, Congress reintroduced theSmall Business Reorganization Act (SBRA), under which a new subchapter V would be added to chapter 11 of the United States Bankruptcy Code. This new subchapter would provide small businesses with aggregate liabilities that do not exceed $2,566,050 with an opportunity to resolve outstanding liabilities through a streamlined and costeffective chapter 11 bankruptcy proceeding. The SBRA also offers small business owners the opportunity to preserve their ownership interest in the company, unlike state and federal receiverships or assignments for the benefit of creditors which typically result in the …

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