Concerned that the Chapter 11 bankruptcy procedures were harming the creditors of small businesses,Congress added some provisions in 2005 to change the process for businesses with less than $2 million in debt.Which of these provisions was included in that revision?

Question

Quizplus · Accepted Answer

This provision, known as the "fast-track" process, was included in the 2005 revision to the Chapter 11 bankruptcy procedures for small businesses. It aimed to expedite the bankruptcy process and ensure that small business owners have a better chance of successfully reorganizing their debts and resuming operations. Under this provision, the court has only 45 days to confirm or reject the reorganization plan submitted by the small business. If the court confirms the plan, the small business must begin implementing it immediately. If the court rejects the plan, the small business must either submit a new plan or convert the bankruptcy to a Chapter 7 liquidation.

Concerned That the Chapter 11 Bankruptcy Procedures Were Harming the Creditors