©Maxim_Kazmin – stock.adobe.com Why Small Business Bankruptcy Could Lead a National Insolvency Wave
Small business bankruptcy filings are on the rise, but a legislative lapse means Chapter 11 is temporarily off the table for thousands of commercial debtors.
April 01, 2022 at 05:00 AM
10 minute read
Bankruptcy
Since 2020, uncertainty has plagued the commercial bankruptcy bar as government stimulus, low interest rates and lenient lenders sent Chapter 11 filings to historic lows. Simultaneously, subchapter V of the 2019 Small Business Reorganization Act (SBRA) benefitted attorneys by making Chapter 11 accessible to more debtors, including a substantial portion that were enabled to file for bankruptcy after the CARES Act temporarily tripled the debt limit for eligible small businesses.
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