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Small Business Reorganization Act Helping Small Businesses and Individuals Eliminate Debt

The Small Business Reorganization Act

Helping NY’s Small Businesses Use Subchapter V of Chapter 11 Bankruptcy

Effective in February of 2020, the Small Business Reorganization Act (SBRA) was created by Congress to provide small business owners with a more streamlined version of Chapter 11 bankruptcy. At the Law Office of Charles A. Higgs, we have more than 10 years of experience helping White Plains clients overcome financial adversity, and we know how to help your small business regain control over its financial wellbeing. Because we have helped small businesses in a wide variety of industries (e.g. real estate, health care, tech, software, transportation, and more), we can apply a thoughtful and meticulous approach to your unique financial situation and business model.


Ready to learn more about how the SBRA can help you with a Chapter 11 bankruptcy filing? Talk to a one of our White Plains attorneys at (917) 791-2151 to get started today.


Benefits of Chapter 11 Under the SBRA

Prior to the SBRA, the Chapter 11 process could be extremely complex and overwhelming for small businesses, involving stringent standards, approval requirements by creditors, monthly reporting, and more. Addressing these issues, the SBRA adds Subchapter V to Chapter 11 bankruptcy. Exclusively available to small businesses with less than $2,725,625 of debt (at least 50% of which was accrued through commercial activities), this new chapter expedites the procedure and makes it less costly for small business owners.

The SBRA provides certain benefits to small business debtors, including:

  • Allowing equity holders to retain an interest in the business without paying creditors in full
  • Extending the time for debtors to pay administrative claims
  • Allowing the confirmation of a plan without creditor consent
  • Allowing the small business debtor to be the only one who can create a reorganization plan
  • Eliminating the requirement of a creditors’ committee (which is usually costly and time-consuming)
  • Providing the small business with a trustee whose main task is to ensure the development of a successful reorganization plan (rather than selling as many assets as possible)
  • Eliminating the “absolute priority” rule, which allowed plans to be denied unless unsecured creditors agreed to be paid less than what was owed

We urge you to take advantage of our free initial consultation so you can learn more about how the new law could allow you to reorganize and repay your debts under Chapter 11. Our firm filed the first Subchapter V case in the Southern District of New York, so we are fully prepared to help you take full advantage of the SBRA.

Call (917) 791-2151 or contact us online to get your questions answered and begin the legal process today.

Meet Our Experienced 
& Dedicated Attorneys

See What our Clients Have to Say 

Real Stories From Real People 
  • “Mr. Higgs followed my case from start to finish and did an excellent job.”

    - Beth
  • “He was able to walk me through this process so I could put my debt issues behind me.”

    - Former Client
  • “Mr. Higgs took the time and energy to understand every nuance, proposed alternative strategies, and in a single day.”

    - John

What Sets Us Apart?

  • Customer Care

    Clients can expect quick response times, transparent communication, a receptive listener, and straightforward counsel.

  • Experience

    We have over a decade of experience in handling bankruptcy filings. 

  • Free Consultation

    We offer free consultations to those who are interested in filing with us.

  • Guidance

    We take the time to walk you through the process, step by step.

  • Highly Skilled

    We are highly knowledgeable in all facets of bankruptcy law.

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