Reno Small Business Bankruptcy Lawyers

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

At Flynn Giudici, our Reno small business bankruptcy lawyers work hard to build relationships with our business clients to ensure we can meet their needs and serve as dependable legal allies. We recognize the intricacies and obstacles that business owners in Nevada encounter during the bankruptcy process, and our experienced Reno small business bankruptcy attorneys are dedicated to addressing the wide-ranging needs of entrepreneurs and business owners throughout Washoe County.

Our legal team realizes operating a business is no easy task, and even highly successful companies can face financial challenges. The small business bankruptcy process allows financially distressed businesses to restructure their debts and financial commitments. Our Reno small business bankruptcy attorneys provide top-tier, results-oriented legal representation for clients throughout the area. If you're a small business owner contemplating filing for bankruptcy protection, our legal team is ready to assist you at every turn.

Understanding the Significance of the Small Business Reorganization Act

The Small Business Reorganization Act (SBRA), enacted by Congress in 2019, marked a significant stride in simplifying the bankruptcy process for small businesses. The new legislation was designed to streamline the complex procedures of Chapter 11 of the Bankruptcy Code. Despite its potential benefits, Chapter 11 has often been viewed as a daunting and intricate system. A successful filing can enable companies to restructure their financial obligations, but the complexity of the process can be overwhelming. Recognizing this challenge, the SBRA was incorporated into the U.S. bankruptcy code in February 2020. The changes reduce liquidation and preserve equity, consequently making the Chapter 11 process more affordable, expedited, and less complicated for small businesses.

To gain a deeper understanding of the SBRA's impact, let's examine its key benefits:

• It streamlines the reorganization process, allowing businesses to propose their reorganization plan without seeking 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, giving businesses extra time to handle their financial responsibilities.
• Businesses can now modify residential mortgages if the loan was primarily used for business operations, offering increased flexibility in financial management.
• The SBRA removes the requirement 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 oversee the reorganization process, ensuring fair and efficient proceedings.

The Small Business Reorganization Act significantly improved the U.S. bankruptcy code. It has simplified Chapter 11, turning it into a more accessible and less cumbersome avenue for small businesses aiming to reorganize their debts and restore their financial footing.

Schedule a consultation with our Reno small business bankruptcy lawyers today by calling (775) 406-9595 or sending a message online.