The Senate Judiciary Committee recently approved a bill that is set to make the Chapter 11 bankruptcy process less stressful for small businesses.
The current Chapter 11 regulations are allegedly geared more towards large, publicly-traded corporations. The Small Business Reorganization Efficiency and Clarity Act will double the amount of time (from 45 days to 90 days) small businesses have to confirm their plans for bankruptcy.
The bill also aims to eliminate certain requirements that end up wasting attorney time, resulting in unnecessary fees. It also has a provision that allows firms who are bankrupt to continue being represented by familiar attorneys who have small claims against them.
This new bill will add to the advantages of Chapter 11 bankruptcies. If your small business is running too deep in the red, consider contacting a Chapter 11 bankruptcy lawyer from Hong Law, PLC, to help you begin restructuring and clear your overwhelming debts.
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