The Small Business Reorganization Act of 2019 is a new streamlined bankruptcy process for businesses that qualify as a small business and took effect on February 22, 2020. The act is commonly known as “Subchapter V”.
SBA Bankruptcy Battle Hillary Crabtree, Reid Dyer and Luis Lluberas April 2020, MVA COVID-19 Resource Center
On April 15, 2020, the SBA issued an Interim Final Rule (“IFR”) for the Paycheck Protection Program (“PPP”) component of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The PPP allows qualified businesses to receive loans equal to 2.5 times their average monthly payroll, up to $10 million, which may be fully forgiven if the proceeds are used for payroll and related expenses (subject to certain caps), rent, utilities, and interest on debts incurred prior to February 15, 2020.
Charlotte Bankruptcy & Financial Restructuring Member Luis Lluberas and Associate Gabe Mathless published an article in the January/February issue of the Turnaround Management Association’s Journal of Corporate Renewal titled "Assessing Distressed Acquisition Opportunities."
The U.S. Supreme Court recently held in Henson v. Santander
Consumer USA Inc., 137 S. Ct. 1718 (2017), that a company may
collect debts it purchased for its own account without triggering
the statutory definition of “debt collector” under the Fair Debt
Collection Practices Act.
In Justice Neil Gorsuch’s debut opinion, the high court held that
purchasers of defaulted loans who attempt to collect on the
loans for their own account do not constitute “debt collectors” for
purposes of the FDCPA.
