In February 2020, the Small Business Reorganization Act (SBRA) went into law; among its changes to the U.S. Bankruptcy Code was the addition of a “Subchapter V” to Chapter 11. The change streamlined the process for small businesses to use the protections of chapter 11 when restructuring its operations and debts. The new CARES Act, enacted in response to COVID-19, makes important modifications to the SBRA. Most importantly it makes Subchapter V available to a substantially larger number of businesses. We now have another tool at our disposal.
What do changes in the bankruptcy code mean for small businesses today and when should you consider using this option? Thomas Fawkes, a bankruptcy and restructuring partner with Tucker Ellis LLP, joins us to share his bankruptcy expertise and provide clarity into the newly available options.