Small business debtors, those with total debt less than $2,725,000, now have a cost effective alternative to Chapter 11 bankruptcy.
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Mini Chapter 11 Bankruptcy
Legal commentators have long lamented that chapter 11's high costs and complexities make it too difficult for small businesses to successfully reorganize.[i] In response to these concerns, Congress recently passed amendments to the Bankruptcy Code known as the Small Business Reorganization Act (SBRA). On August 23, 2019, SBRA was signed into law.[ii]
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