The Small Business Reorganization Act of 2019 (SBRA) became effective on the eve of the economic free fall stemming from the COVID-19 pandemic. Longleaf Law Partner’s bankruptcy law expert, Cindy G. Oliver, explains the new law in our 13-part series, Bankruptcy Buzz.
Part 8 of 13:
Unlike in a traditional Chapter 11 case, nobody can file a competing plan of reorganization in a Subchapter V small business case. The plan, which must be filed within 90 days, can only be filed by the small business debtor. This unique feature of the Small Business Reorganization Act (SBRA) should help the debtor remain focused on the fast track requirement of timely filing a plan, without the distraction of defending against competing plans filed by someone other than the debtor. Efficiency hopefully leads to quicker plan confirmation, which should translate to a shorter period of time that a creditor is accruing legal costs defending its interests in the bankruptcy case.
The information provided in this article does not, and is not intended to, constitute legal advice. No action should be taken in any particular circumstance or fact situation with reliance upon the information contained in this article without obtaining the advice of an attorney.