Small Business Bankruptcy Cases up 81%

Small business bankruptcy cases under the Small Business Reorganization Act – a special type of streamlined Chapter 11 bankruptcy case for smaller businesses – have increased 81% since this time last year. A clear sign that without the pandemic-era economic protections, more and more businesses are feeling the squeeze of a recessing economy and are turning to traditional methods to deal with mounting debt. Having been involved in SBRA cases representing both debtors and creditors, we can attest that it can be a very effective way for a struggling, but viable, business to manage its debts and deal with its creditors fairly and in a way that provides the necessary breathing room to operate profitably and still get out of debt.