Introducing the Small Business Reorganization Act
Mar 03, 2020
The Small Business Reorganization Act (the “SBRA”) went into effect on February 19, 2020. It amends the Bankruptcy Code by adding a new subchapter under Chapter 11 for small business debtors. The SBRA does not repeal existing Chapter 11 provisions but provides an alternative procedure that small business debtors can elect to use. The SBRA only applies to business debtors with liquidated secured and unsecured debts totaling less than $2,725,625.
With the assistance of a private trustee, the SBRA provides a fast track for small businesses to confirm a consensual bankruptcy plan. SBRA’s key provisions seek to:
- lessen certain procedural burdens and costs
- increase a debtor’s ability to negotiate a reorganization while retaining control of their business
- accelerate the reorganization process
At Waldrep LLP, we represent small businesses facing financial distress both inside and outside of bankruptcy proceedings. We look forward to having the SBRA as an option for our clients.
Chapter 12 Debt Limit Cap Raised to $10M
Feb 25, 2020
In August 2019, the US Senate passed the “Family Farmer Relief Act of 2019” (H.R. 2336), which more than doubled the debt limit for agricultural producers filing for relief under Chapter 12 of the United States Bankruptcy Code. This Act raises the debt limit from approximately $4.3 million to $10 million, which dramatically expands Chapter 12 bankruptcy eligibility.
At Waldrep LLP, we routinely represent family farmers facing financial distress both inside and outside of bankruptcy proceedings. We look forward to seeing how this Act will positively impact our clients.
Waldrep LLP Attorneys at the ABI Health Care Program in Nashville
Feb 18, 2020
Partner Jim Lanik and Associate Chris Coleman will be traveling to Nashville in March to attend the ABI Health Care Program: The New Reality in Health Care. According to the American Bankruptcy Institute, “Conference attendees will take away a detailed understanding of the key issues that will plague the health care industry in the coming years, helping them identify opportunities within this ever-changing landscape.”
At Waldrep LLP, we routinely work in healthcare restructuring and insolvency matters both inside and outside of bankruptcy proceedings. Jim and Chris are looking forward to gaining even more industry insight in Nashville next month.