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Small Business Reorganization: Clarifications for Debt Restructuring

This act introduces technical corrections to small business reorganization laws, aiming to simplify debt restructuring processes. These changes can help small business owners maintain operations and avoid full liquidation by offering more flexible debt repayment terms and clear trustee guidelines.
Key points
Clarifies the definition of a small business debtor, impacting which companies qualify for simplified reorganization.
Defines the trustee's role and powers in reorganization, including the authority to operate the debtor's business.
Introduces more flexible conditions for approving debt repayment plans, increasing chances for businesses to succeed even with a "reasonable likelihood" of repayment, provided creditors are protected.
article Official text account_balance Process page
Expired
Citizen Poll
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Additional Information
Print number: 117_HR_5939
Sponsor: Rep. Neguse, Joe [D-CO-2]
Process start date: 2021-11-09
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Reorganization Technical Corrections Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_5939.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-11-09.

What are the main provisions?

Key points include:

  • Clarifies the definition of a small business debtor, impacting which companies qualify for simplified reorganization.
  • Defines the trustee's role and powers in reorganization, including the authority to operate the debtor's business.
  • Introduces more flexible conditions for approving debt repayment plans, increasing chances for businesses to succeed even with a "reasonable likelihood" of repayment, provided creditors are protected.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Neguse, Joe [D-CO-2].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Economy Courts and Law