SMALL BUSINESS REORGANIZATION THROUGH BANKRUPTCY
It’s now easier than ever for a small business to file for Chapter 11 protection and reorganize the business. Begining in Feburary of 2020, the Small Business Reorganization Act introduces new procedures and protections for small businesses. The new small business law also lowers the fees associated with filing a Chapter 11, which is truly a win for small business that need to reorganize. Call today to discuss your situation.
The Small Business Reorganization Act of 2019:
- The major differences for small businesses under the new subchapter 5 compared to the regular chapter 11 procedures:
- The appointment of a standing trustee
- No requirement to pay United States Trustee (“UST”) quarterly fees
- No appointment of a committee of unsecured creditors,
- No requirement for a disclosure statement to accompany the debtor’s plan of reorganization.
- Within the first 60 days of filing the bankruptcy petition, the court will schedule a status conference to help the direction for the debtor.
- Within 90 days of filing, the debtor’s plan is due.
The bankruptcy process is complicate, but we can guide you through it. Set up an appointment to get your questions answered and see if this type of bankruptcy makes sense for your small business.