Houston bankruptcy attorney: CARES Act allows more small businesses to file for bankruptcy protection

As financially distressed businesses navigate the ongoing coronavirus shutdown, recent legislation makes a new type of bankruptcy an option for a larger number of small businesses, a local attorney said.

Under the Small Business Reorganization Act of 2019 (SBRA), which became effective in late February, a new subchapter V was added to Chapter 11 of the U.S. Bankruptcy Code. Subchapter V gives small business debtors a quicker timeline for completing the bankruptcy process, creates greater flexibility…