Small Business Reorganization Act of 2019 helps small businesses reorganize
In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (2005 Act) in an effort to make bankruptcy reorganization of small businesses more effective. Recently, Congress recognized that the 2005 Act did not do enough and “…while most Chapter 11 cases are filed by small business debtors, they are often the least likely to reorganize successfully.”1
Similarly, Congress found that the Bankruptcy Code has Congress recognizing that while the Bankruptcy Code envisioned creditors actively monitoring Chapter 11 cases, the practical result showed claims involved were too small for creditors to devote the time and money necessary to actively be involved.2
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