Chapter 11 - Small Business Case
Chapter 11 provides a more expeditious confirmation process for a "small business debtor." A small business debtor is defined as one engaged in commercial or business activities other than owning or operating real estate with deb t no greater than $2.19 million, excluding debt to insiders and affiliates.
A debtor is not a small business debt if a creditors' committee is appointed unless the court find that the committee is not "sufficiently active and representative." A small business debtor may seek an order to prevent the appointment of a committee.
A small business debtor must file balance sheets, income statements, and cash flow statements with its petition or swear that non exist.
The bankruptcy court may limit the information required to be set forth in the disclosure statement for a small business debtor depending on the complexity of the case or it may eliminate the need for a disclosure statement altogether if the plan contains sufficient information.
The exclusivity period for filing a reorganization plan is 180 after the filing and a plan and disclosure statement are required before 300 days after filing.
A debtor is not a small business debt if a creditors' committee is appointed unless the court find that the committee is not "sufficiently active and representative." A small business debtor may seek an order to prevent the appointment of a committee.
A small business debtor must file balance sheets, income statements, and cash flow statements with its petition or swear that non exist.
The bankruptcy court may limit the information required to be set forth in the disclosure statement for a small business debtor depending on the complexity of the case or it may eliminate the need for a disclosure statement altogether if the plan contains sufficient information.
The exclusivity period for filing a reorganization plan is 180 after the filing and a plan and disclosure statement are required before 300 days after filing.