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Narrow Bankruptcy Reforms Make Big Changes for Small Business, Vets, Farmers

Updated: Apr 10, 2023

Three important pieces of bankruptcy legislation were signed into law this summer. The legislation did not make substantial structural changes to the bankruptcy system, but the laws do meaningfully impact three important constituencies: small businesses, veterans, and family farmers.


The most important legislation signed into law was the Small Business Reorganization Act of 2019 (SBRA) (H.R. 3311), effective Feb. 20, 2020. When it takes effect, getting a small business plan confirmed should be easier and quicker, provided that the company is transparent about its financial conditions and can demonstrate a path forward that returns it to profitability


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