Legal Alerts/Details

New Small Business Reorganization Act May Provide Easier Bankruptcy Relief for Many Small Businesses Impacted by COVID-19

March 24, 2020
Footnotes:
  1. “First Case of 2019 Novel Coronavirus in the United States,” The New England Journal of Medicine, March 5, 2020, https://www.nejm.org/doi/full/10.1056/NEJMoa2001191 (first case confirmed on January 20, 2020).
  2. See Legislative History “H.R. 3311, the “Small Business Reorganization Act of 2019.” SBRA requires at least fifty percent of a small business debtor’s debt to have arisen from commercial or business activities.  Current Section 101(51D) defines a “small business debtor” as one that has aggregate, noncontingent, liquidated, secured and unsecured debts of $2,725,625 or less.
  3. “Bankruptcy Pros Want Protections Broadened to Blunt Coronavirus Impact,” The Wall Street Journal, March 23, 2020, https://www.wsj.com/articles/bankruptcy-pros-want-protections-broadened-to-blunt-coronavirus-impact-11584978603.

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