New Jersey Law Journal: 'Small Business' Bankruptcies: What You Need to Know about Subchapter V of Chapter 11
Sam Della Fera, Jr., Robert L. Hornby and Michael R. Caruso were published in the New Jersey Law Journal with an article offering a closer look at the Small Business Reorganization Act of 2019 (SBRA), which became effective in February 2020 – and how a new subchapter was created within Chapter 11 of the Bankruptcy Code – Subchapter V. This new chapter brings sweeping changes to the way Chapter 11 bankruptcies are conducted for qualifying small businesses.
In the article, they note, “The underlying goal of this streamlined process is to give small businesses a better opportunity to reorganize, which historically has been difficult for them through Chapter 11 proceedings. Chapter 11 is more suited for larger, often publicly traded companies with substantial and complicated debt structures. Accordingly, the reorganization process in Chapter 11 is often long and expensive, with significant legal fees payable to counsel not only for the debtor company, but also for one or more official committees, as well as quarterly fees payable to the Office of the United States Trustee (UST).”
To read the full article, please visit the New Jersey Law Journal's website or view the pdf below.