Mar/Apr 2020: A brief update on the Small Business Reorganization Act
In this issue of Community Banker, we discuss the Small Business Reorganization Act and how it changes bankruptcy law.
Effective February 20, 2020, an amendment to the Bankruptcy Code aims to make small business bankruptcies faster and less expensive. The “Small Business Reorganization Act” (SBRA) is designed to help small businesses to reorganize in bankruptcy by choosing (“opting-in”) to be treated as a subchapter V debtor under the SBRA. The SBRA is an effort to create a workable compromise for small-business debtors between having to file a Chapter 7 or a Chapter 11 bankruptcy, when neither chapter is a good fit.
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