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In November, we discussed the Small Business Reorganization Act (SBRA) passed by Congress to speed up the process and reduce the cost of bankruptcy for small businesses (under $2.7 million in debt). The SBRA went into effect on February 19, 2020, and it is aimed at providing a better solution for small businesses to restructure, save jobs, and reduce the need to liquidate assets to survive while also paying off creditors pursuant to a 3 to 5-year plan. Since then, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES), which made small business reorganizations even easier:
The CARES ACT provides that these foregoing bankruptcy provisions will all expire within a year.
About the Author: Jaime Leggett practices in the areas of bankruptcy and complex commercial litigation. His experience includes prosecuting director and officer liability claims; representing trustees, creditors, equity holders, and debtors in bankruptcy proceedings; federal and state court commercial litigation; and trials in federal, bankruptcy, and state courts nationwide. Click here to find out more about Jaime.