Small Business Reorganization Act: What It Means for Creditors

The Small Business Reorganization Act (SBRA), also known as Subchapter V, was enacted to streamline bankruptcy for small businesses. While it provides relief for debtors, it also changes how creditors must approach recovery.

Key Points for Creditors

• Faster Timelines – Small businesses can restructure more quickly.
• Reduced Creditor Influence – Debtors often maintain more control under Subchapter V.
• Potential Lower Recovery Rates – Creditors may need to accept reduced repayment.

Trueline’s Role

We help creditors navigate these challenges by providing legal coordination, negotiation strategies, and debtor communication that align with SBRA requirements.

Conclusion: The SBRA makes collections more complex, but Trueline ensures creditors are protected and informed throughout the process.