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.