S.2370 - Small Business Reorganization Efficiency and Clarity Act112th Congress (2011-2012)
Summary: S.2370 — 112th Congress (2011-2012)
Reported to Senate without amendment (05/24/2012)
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
Small Business Reorganization Efficiency and Clarity Act - (Sec. 2) Amends federal bankruptcy law to extend from 45 to 90 days the time within which the bankruptcy court must confirm a small business bankruptcy plan under chapter 11 (Reorganization).
(Sec. 3) Modifies small business debtor reporting requirements to repeal the requirement for periodic filing of financial and other reports containing such other matters as are in the best interests of the debtor and creditors and in the public interest.
(Sec. 4) Modifies restrictions on employment by a trustee of professional persons to declare a person is not disqualified for such employment by a small business debtor solely because the person holds a claim of less than $5,000 that arose before commencement of the case in bankruptcy.
(Sec. 5) Modifies requirements for debtor conversion from chapter 11 to chapter 7 (Liquidation), or for dismissal in chapter 11, for cause to include within the scope of "cause" the failure of a small business debtor to designate itself as a small business debtor.
(Sec. 6) Instructs the Comptroller General to report to Congress detailing: (1) the number and percentage of all cases filed under chapter 11 in which the debtor is a small business debtor, and (2) recommendations for improving the confirmation rate for small business debtors.