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Video Transcribed: Oklahoma Bankruptcy Attorney Edward Kelley here, answering your bankruptcy questions with oklahomacitybankruptcyattorney.pro. I wanted to post a quick video about the Small Business Reorganization Act. In previous videos, as I’ve explained, this expands chapter 11 protection to make it easier for small businesses to access that.
And the cap basically, as far as the size of your business, the cap is a function of your debt. So typically in chapter 11’s multi, multi multimillion of dollars debt, which the cap in a SBRA, Business Chapter 11, it’s called a sub chapter five specifically, it’s about $2.7 million.
Now bear in mind another COVID benefit that expanded the cap up to almost $7 million, but generally to qualify for SBRA and that’s all I want to talk about this morning, who can do it, the question is how much debt have you got and what kind is it?
So $2.7 million and I believe it’s 50% of that must be commercial business related. So as I said before, that brings in all kinds of loosened requirements and easier streamlined process, which I’m going to talk about in the next few videos. But again, you want to know, does my business qualify for chapter 11?
This is an extraordinary change making chapter 11, a reality, a possible reality for many small businesses through this streamlining process, but just remember right now due to the CARES Act and this is only good through 2021, your cap is $7 million in debt, 50% commercial related and typically before the CARES Act and probably after it’s going to be about $2.7 million and we’ll talk more in future videos about all the new streamlines that can help your business.
So of course always reach out to me, 1-888-debtline, Edward Kelly. Edward@wirthlawoffice, or our Facebook Group Oklahoman’s for Debt Relief.