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New Bankruptcy Relief Coming Soon

Thursday, October 17, 2019

Is your small business struggling to make ends meet? Some relief may be on the way for distressed business owners. The Small Business Reorganization Act of 2019 will make it faster and less expensive to benefit from a Chapter 11 bankruptcy. The legislation was signed into law in August, and it goes into effect on February 19, 2020. Here’s what you need to know.

Basics of Bankruptcy Reorganization

Chapter 11 of the bankruptcy code allows a business to reorganize its debt. It may be advantageous to make a liquidation filing under Chapter 7, where assets are auctioned off or sold piecemeal, often leaving creditors with little or nothing. Or a business may not qualify under the threshold for Chapter 13. READ MORE