American Bankruptcy Institute Pushes for Less Expensive Chapter 11s

            A recent article in the December, 2016 American Bankruptcy Institute Journal argues for the creation of a subset of rules for smaller companies who need to file Chapter 11. One of the key proposals would be to remove creditor’s committees or, at least, have the creditor’s committee paid for by the creditors. It would also extend the time for a small business to confirm a Chapter 11 Plan while keeping deadlines in place which do not exist for larger business. Finally, it also argues for immunity for estate professionals so that parties cannot hold professionals hostage in order to obtain concessions. Of course, Congress will have to act, but with a president in the White House which proudly claimed he used the bankruptcy laws to his advantage, perhaps we will have a sympathetic ear in the highest office in the land.

Categories: Bankruptcy

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