If you are a small business owner or president, and are considering a Chapter 11 Bankruptcy, you should carefully review the changes in the newest law, which took effect on October 17, 2005. The law (BAPCPA) named “The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” has not only made it much tougher for consumers filing bankruptcy, but has also included several changes that are not friendly to small business owners.
A small business, under this bankruptcy law, is defined as any business with $2,000,000.000. in debt or less. Here are a few of the provisions that will make filing a Chapter 11 Bankruptcy much riskier for a small business:
In short, bankruptcy is now a less desirable option for many businesses that are burdened by heavy debt. The various disruptions placed on them by their creditors trying to collect are even more burdensome. Fortunately, there are alternatives for the small business owner to consider. The most effective one could well be an out of court debt relief program through American Finasco’s Business Debt Settlement Program.
