Tag Archives: Small Business Reorganization Act
COVID-19 Complicates Estimation of Future Income for Subchapter V Reorganizations
The Small Business Reorganization Act (SBRA) offers a simpler and more affordable alternative to the traditional Chapter 11 bankruptcy process, which historically has been of little use to modest-sized companies. The SBRA procedure, known as Subchapter V, allows such businesses to create three- to five-year repayment plans based their “projected disposable income.” However, the recession […]
How the CARES Act Expands the Reach of Small Business Bankruptcy Protection
In February 2020 the Small Business Reorganization Act went into effect, creating a low-cost, streamlined procedure, known as Subchapter V, for small businesses seeking bankruptcy protection from creditors. No sooner had the law gone into effect than the COVID-19 virus hit the U.S., with a resulting economic recession that put thousands of businesses across the […]
CARES Helps Bankruptcy Filers During the COVID-19 Pandemic
More than 40 million U.S. workers have filed for unemployment since the coronavirus pandemic spread across the nation, and many who still have their jobs are understandably worried that layoffs could be coming anytime. Business owners, too, are feeling the pain. A recent BizFed survey found that approximately 90 percent of small companies in the […]
