In this article, we consider the new Subchapter V of Chapter 11, which is open to small businesses with under $7.5 Million in debt.
With minimal fanfare, the Small Business Reorganization Act (SBRA) was passed in August 2019, to come into effect in February 2020, ushering in Subchapter V of Chapter 11. Nobody could have predicted how critical this timing would be; the consequences of COVID-19 crippling many small businesses just one month later.
This Small Business Reorganization Act (SBRA) is now commonly referred to as Subchapter V. This SBRA was designed to streamline existing bankruptcy procedures and provide new tools to increase a small business ability to achieve a successful restructuring.
When the SBRA was first passed in 2019,…
Read the full article at: https://journalrecord.com/2020/05/08/small-business-reorganization-act-sbra-and-subchapter-v/