It’s now easier than ever for US small businesses to go bankrupt | Gene Marks
Reorganizing under chapter 11 of the bankruptcy code has been too onerous and expensive a task – but the Small Business Reorganization Act provides relief
With the economy relatively strong and most small businesses doing pretty well, this may not seem like the most opportune time to be thinking of bankruptcy. But let’s face it: when the economy ultimately turns downwards, many small businesses are going to face financial hardship. And many of those may very well be forced into bankruptcy.
In the past the problem has been that getting a chance to reorganize under chapter 11 of the bankruptcy code has been too onerous and expensive a task for most of these small business owners. So much so that, according to this report in Lexology, of the 18,000 small business bankruptcy cases filed between 2008 and 2015, less than 27% resulted in confirmed plans of reorganization.