No Easy Answers: Small Business Bankruptcy After BAPCPA

Abstract

Among the changes the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 brings to the Bankruptcy Code are a host of new burdens on small business debtors attempting to reorganize under Chapter 11. This Article examines those provisions affecting small business debtors and outlines suggestions for navigating through the new requirements without jeopardizing a small business's chances for a successful and expeditious reorganization. In particular, this Article argues for the formation of active prepetition creditors' committees for those businesses that intend to seek Chapter 11 protection. Finally, this Article suggests that a potential solution to the problems faced by small business lies in expanding Chapter 12 to permit non-agricultural small businesses to fall within its protection.