The “Small Business Reorganization Act” (SBRA) recently went into effect to eliminate many procedural hurdles small businesses otherwise needed to clear in typical Chapter 11 bankruptcy cases. This new act created the “Subchapter V” to simplify the Chapter 11 bankruptcy process for most small business debtors, by reducing the cost and expense of small business bankruptcy reorganizations and increasing accessibility to small business owners throughout Southwest Florida.
Small businesses with less than $2,725,625.00 in debt are generally eligible for relief under Subchapter V.