Bob Keach Quoted in Bloomberg Law, Optimistic about Small Business Bankruptcy Eligibility

Shareholder Bob Keach was quoted in Bloomberg Law article, Senate Proposal Would Grow Small Business Bankruptcy Eligibility, discussing the potential revival of more lenient standards for Chapter 11 relief designed for small businesses. The Senate proposal aims to restore higher debt limits, allowing more businesses to take advantage of “Subchapter V,” a special section under Chapter 11 of the US Bankruptcy Code created in 2019.

The proposed amendment to the annual defense policy bill would increase the debt limit to $7.5 million, compared to the current limit of about $3 million. This expansion would enable more businesses to restructure more cheaply and quickly than traditional Chapter 11s. Bob, a member of the American Bankruptcy Institute’s Subchapter V task force, expressed optimism about the legislation’s passage, stating, “I’m hopeful that this is going to get done either between now and year end or very soon into the new year.”

Bob has been instrumental in educating Congress about the task force’s findings and remains a steadfast advocate for small businesses through his leadership in Subchapter V. His insights and advocacy have helped to shift bankruptcy law, ensuring that small businesses have the essential tools to navigate financial challenges effectively.

Read the original article here.