From JD Supra:
The Small Business Reorganization Act (SBRA) took effect on February 19, 2020 to little fanfare. The new law was years in the making and intended to address a disconnect in the Chapter 11 process: small businesses that could benefit most from bankruptcy were reluctant to file, and when they did the cases often failed and the businesses shuttered. Failure was not the business owners’ fault, but rather the result of a Chapter 11 process that had become too costly, time consuming and risky to be a viable restructuring alternative for most small businesses. The SBRA changes this calculus by providing small businesses access to a new “Subchapter V” Chapter 11 process that is designed to be cheaper, faster and pose far less risk that owners might lose control of their businesses. Read more.
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