Small Business Types of Bankruptcy - Chapter 11
In these bankruptcy types, a small business is a person or organization operating a commercial enterprise for profit that has non-contingent, liquidated, secured, and unsecured debts totaling less than $2,000,000 according to 11 U.S.C. Dec. 101. If a debtor requests small business status under 11 U.S.C. 1121(e), the case is accelerated through streamlined procedures. For more information, see:
Combining small businesses bankruptcy type administrations
Small business reorganization plans in these types of bankruptcy may combine the appointment of a creditor committee and approval of the debtor's written disclosures into one hearing. Also, deadlines for filing a proposed plan may be decreased by the Court. The Court may delay approval of written disclosures and disputed issues and schedule these topics for consideration during the confirmation hearing. In essence, small business status is intended to improve efficiency in the Court 's hearing schedule when relatively few parties show interest. The burden for legal compliance, from a debtor's view, remains the same.
|
