The Preparation Process
We help prepare businesses for financial restructuring under Subchapter V of the Chapter 11 Bankruptcy Code
The Small Business Reorganization Act of 2019 (“SBRA”), became law on February 19, 2020, and was enacted by Congress specifically to provide a streamlined and cost effective method for small businesses to recover from financial distress.
The Preparation Process
I guide business owners through the confusing and time-consuming process of preparing to restructure their company’s debt by helping them:
- Consider all restructuring alternatives, including Subchapter V
- Arrange a free initial consultation with a bankruptcy attorney
- Develop a realistic 3-year financial forecast
- Prioritize operating and financial issues and recommend immediate solutions
- Seek non-bank sources of debtor-in-possession (“DIP”) financing
- Build a digital vault that includes all of the disclosure documents and financial data required by your bankruptcy attorney or turnaround advisor
- Make a decision and execute on a plan of action to save their business
- By continuing to act as an advisor and mentor to distressed business owners, directors and company management
The Small Business Reorganization Act (“SBRA”) became effective on February 19, 2020 and is intended to reduce the barriers that once prevented small businesses from effectively reorganizing by adding “Subchapter V” to Chapter 11 of the Bankruptcy Code to alleviate many of the burdens of small business reorganization through the following mechanisms:

Key Features of a Subchapter V Reorganization
Automatic Appointment of a Trustee
Absolute Priority Rule Eliminated
New Value Rule Eliminated
Administrative Expense Payments Delayed
No Impaired Class Required
Discharge
Principal Residence Loans Modified
The CARES Act Extension
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides fast and direct economic assistance for American workers and families, small businesses, and preserves jobs for American industries.
The CARES Act expanded the debt limits for filing as a small business under the Small Business Reorganization Act of 2019 (“SBRA”), from under $2,725,625 million to $7.5 million. In doing so, Congress greatly expanded the availability of reorganization under SBRA to businesses that would not have previously qualified. However, the increased debt limits are only available to filers who commence a reorganization on or before March 27, 2021. As a result, businesses who might otherwise not be eligible to reorganize under the SBRA should consider filing before March 27, 2021.
The CARES Act expanded the debt limits:
$2.725 MILLION
to
$7.5 MILLION