How a new bankruptcy law will help small businesses
The economy today remains strong, but we all know that’s not going to last forever. When the next downturn comes – and it will come – it’s inevitable that some small-business owners, for whatever reason, are going to face bankruptcy.
Deciding to declare bankruptcy is never an easy choice. But for a small-business owner, the decision is even harder. It’s true that today’s bankruptcy laws can give us the chance to take a breath, work out deals with our creditors, attempt a reorganization, and try to get back on our feet. Or – in extreme cases – liquidate. But unfortunately, these same laws have historically been expensive, complicated and favored larger organizations.
The good news is that’s about to change.
About a month ago, President Donald Trump signed a new law called the Small Business Reorganization Act of 2019, which will go into effect this February. Its impact on small businesses is expected to be significant.