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Bankruptcy Debt Limits Set to Drop: What Small Businesses Need to Know
ARTICLE | June 25, 2024
Authored by Vasquez + Company
In "Small Business Alert: Bankruptcy Debt Limits Soon Could Drop," the article discusses the impending expiration of temporary debt limit increases for bankruptcy filings and its implications for small businesses. It highlights the differences between Subchapter V and Chapter 13 bankruptcy, the effects of the CARES Act, and potential legislative actions that may extend the higher limits.
Key Points:
- Temporary Debt Limit Increases: The SBRA and subsequent acts temporarily raised debt limits, making more businesses eligible for Subchapter V and Chapter 13 bankruptcies.
- Impact on Bankruptcy Filings: Higher limits led to a significant increase in business bankruptcy filings, particularly under Subchapter V.
- Advice for Businesses: Businesses struggling with debt are advised to consider bankruptcy before the limits drop in June 2024.
For more information, read the full article here.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
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