Understanding How SBRA Or Subchapter 5 Aims To Help North Carolina Small Businesses
A few months ago, a new law – known as the Small Business Reorganization Act of 2019 (SBRA), or Subchapter V under Chapter 11 of the Bankruptcy Code – took effect. The law aims to help small businesses that wish to reorganize their debts under Chapter 11 bankruptcy. Although initially passed late last year, the SBRA provides timed relief for many in the wake of economic impacts of COVID-19.
Past Issues With Chapter 11 For Business Owners
In the past, Chapter 11 bankruptcy often failed for business owners looking to reorganize their debt. The costs, procedural requirements and hurdles associated with filing a Chapter 11 were simply too burdensome for business owners trying to stay afloat. Many business owners looking for relief simply couldn’t wait and were forced to convert their bankruptcy petition to a Chapter 7 liquidation plan, thereby closing their doors.
The new law is designed to streamline the process and shorten the time frame for relief, allowing many business owners to avoid dissolving their entities.
Help From Experienced Small-Business Bankruptcy Attorneys
If your business is struggling financially, we at Gillespie & Murphy, P.A., invite you to contact us to learn more about how the new law can help you.
Since 1991, our bankruptcy attorneys have assisted thousands of individuals and business owners located throughout Eastern North Carolina with debt relief through a variety of solutions, including Chapter 11 bankruptcy.
We can speak with you about your business, provide an honest evaluation and present you with options for your specific circumstances.
Learn More About How SBRA Could Help You – Contact Us Today
Find out how the new bankruptcy law can provide a lifeline to help your business obtain debt relief. Schedule a free consultation today with one of our experienced bankruptcy attorneys.
Call 252-558-1374 today. For your convenience, we offer over-the-phone consults. You can also reach us by email.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.