Webinar: CARES Act Increases Debt Eligibility Amount Under New Small Business Reorganization Act
Date: April 6, 2020
The Small Business Reorganization Act (new Subchapter V of Chapter 11 of the United States Bankruptcy Code) went into effect in February 2020, greatly increasing the ability of small businesses to successfully reorganize under Chapter 11. Under the new legislation, small business owners have a less expensive and more streamlined process available to them to successfully reorganize their business debts and maintain their ownership interests while paying creditors over time. With the increase of the eligibility cap under the recently enacted CARES Act to $7.5 million of undisputed liquidated debt, even more small and medium sized businesses will be able to use this new law to help them through these difficult financial times.