Providing Sound Legal Solutions and Guidance to Business Owners in Clark County 

At Flynn Giudici, we strive to build lasting relationships with our clients, acting as their trusted legal partners. We understand the complexities and challenges that business owners in Nevada face during the bankruptcy process. Our Las Vegas small business bankruptcy attorneys are committed to meeting the diverse needs of entrepreneurs and business owners throughout Clark County. Running a business is no small feat. Even the most successful companies can encounter substantial financial roadblocks. The small business bankruptcy process offers financially struggling businesses the opportunity to restructure their debts and financial obligations. Our Las Vegas small business bankruptcy attorneys deliver high-quality, solution-focused legal representation for clients throughout the area. If you're a small business owner contemplating filing for bankruptcy protection, our proficient legal team is here to guide you every step of the way.

What Is the Small Business Reorganization Act?

In recent years, significant strides have been made to improve bankruptcy procedures for small businesses. One of these key advancements was implementing the Small Business Reorganization Act (SBRA) in 2019. Congress introduced legislation to simplify existing bankruptcy procedures and make it easier for small businesses to take advantage of bankruptcy protections. 

Chapter 11 of the Bankruptcy Code is often considered complex and cumbersome. As a solution to this complexity, the SBRA was incorporated into the U.S. bankruptcy code in February 2020. This law was designed to assist small business owners in restructuring their debts, minimizing liquidations, and retaining equity. The SBRA has effectively simplified the Chapter 11 bankruptcy process, making it more affordable, quicker, and less intricate for small businesses.

To better understand the impact of the SBRA, let's delve into its key advantages:

• It allows for a more streamlined reorganization process, enabling businesses to propose their reorganization plan without needing approval from a creditors' committee. The plan must be filed within 90 days of filing for Chapter 11.
• The law extends the deadline for paying administrative expense claims, providing businesses additional time to manage their financial responsibilities.
• Businesses can now modify residential mortgages if the loan was primarily used for business operations, offering greater flexibility in financial management.
• The SBRA eliminates the necessity for business equity holders to provide new value to retain their interest without settling all debts with creditors.
• The court may appoint a case trustee to supervise the reorganization process, ensuring that proceedings are both fair and efficient.

The Small Business Reorganization Act is a significant development in the U.S. bankruptcy code. Simplifying and streamlining the process has made Chapter 11 a more accessible and manageable option for small businesses looking to restructure their debts and regain financial stability.

Call (775) 406-9595 today to schedule a consultation with one of our Nevada small business bankruptcy attorneys.