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Written by Administrator
Thursday, 30 April 2009 19:03
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Small Business Debtor
Certain types of debtors are defined in the Bankruptcy Code and have special provisions that apply only to them. One such debtor is a “small business,” defined as a person engaged in commercial or business activities (not including a person who primarily owns or operates real property) who has aggregate non-contingent liquidated secured and unsecured debts that do not exceed $2,000,000.00. If a debtor qualifies and elects to be considered a small business, the case is put on a “fast track” and treated differently than a regular chapter 11 case under the Code. For example, the appointment of a creditor’s committee and a separate hearing to approve the disclosure statement are not mandatory. On request of a party in interest and for cause, the court may order that a creditor’s committee not be appointed. The court may conditionally approve a disclosure statement, subject to final approval after notice and a hearing. Solicitation of votes for acceptance or rejection of the plan may proceed based on the conditional approval of the disclosure statement. Thereafter, the disclosure statement hearing may be combined with the confirmation hearing. In addition, the debtor has a shortened period of time within which only the debtor may file a plan. After that period expires, any party in interest may file a plan; however, all plans must be filed within 160 days from the date of the order for relief.
Last Updated ( Monday, 18 May 2009 07:01 )
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Small Buisness Debtor
