Many small businesses are generating revenue but are struggling to service debt. If your business is struggling with debt and you wish to remain in business a Small Business Chapter 11 bankruptcy may help. Owners of small businesses are often also liable on business debt that further complicates the situation. Under the Small Business Reorganization Act of 2019 allows small businesses to cram down many types o f debts. The Act substantially reduces the burdens on small business debtors to allow them to survive. The Act applies to small businesses who have less than $2,725,625 in combined secured and unsecured debts. However the Cares Act has raised the limit to $7,500,000 during Covid-19.
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