Changes That Came At The Right Time
The Small Business Reorganization Act of 2019 became effective on February 19, 2020. The Act, along with recent changes to the Bankruptcy Code contained in the CARES stimulus bill, will make it easier for small businesses to reorganize through Chapter 11.
The new law could not have come at a better time for South Florida companies suffering from the financial ramifications of the COVID-19 pandemic.
Chapter 11 bankruptcy allows financially troubled businesses to restructure their debts through a plan of reorganization. Unfortunately, the skyrocketing legal costs and the complex legal requirements surrounding plan confirmation have historically made Chapter 11 impractical for small businesses, which make up 99% of all businesses in the United States. This reality has forced many otherwise viable companies into shutting their doors.
The Small Business Reorganization Act of 2019 Opens new Opportunities
The Small Business Reorganization Act of 2019 has reopened the doors of Chapter 11 bankruptcy to the small business community.Read More