While many small businesses have managed to stay afloat via the PPP loan programs, many more face uncertainty in the coming months. The latest Covid-19 stimulus shows some signs of life and may very well be signed into law before this article is posted. Whatever happens, small businesses facing bankruptcy will need to decide before long as the expanded benefits of Subchapter V will expire in March 2021. Read the full article here: https://www.oflaherty-law.com/learn-about-law/bankruptcy-benefits-of-cares-act-set-to-expire
Chapter 11 bankruptcy is a common option for larger companies seeking to reorganize their finances and develop a payment plan to get them out of debt. However, Chapter 11 can be time-consuming, resource-intensive, and costly, making it a less desirable option for small businesses. The Small Business Reorganization Act passed in February of 2020 included Subchapter V, which softened some small business debtors’ restrictions and challenges. The CARES Act expanded Subchapter V eligibility by increasing the debt limit from just over 2.7 million to 7.5 million.
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This video will discuss the benefits afforded to debtors under the Small Business Reorganization Act of 2019 and the CARES Act. We will answer the following questions: What is the Small Business Reorganization Act?, Am I eligible for Subchapter V bankruptcy?, What are the benefits of Subchapter V reorganization?, and When is the deadline to petition for Subchapter V bankruptcy?
**None of the content in this series is intended as paid legal advice.