Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is a small business bankruptcy?”
The craziness in Washington, D.C. is heating up, as one party has foisted onto the floor of the House of Representatives a bill that will be considered under rules suspension. That means the bill will not be amended and will be subject to limited debate.
It is not what you might imagine, however, and far from the advertised “gridlock” that is supposed to have been ensuing in the nation’s capital. The Financial Institution Bankruptcy Act actually enjoys broad, bipartisan support and is co-sponsored by powerful members of both predominant political parties, including Reps. Spencer Bachus (R., Ala.), John Conyers (D., Mich.), and Bob Goodlatte (R., Va.).
Many critics of the 2010 Dodd-Frank Act complained that it enshrined in law the kind of taxpayer bailouts of large companies and financial institutions that were employed on an emergency basis during the Great Recession. The new Act creates a new section of the bankruptcy code, which vests in the bankruptcy courts the authority to oversee bankruptcies involving large financial firms. This authority would appear to supplant the “orderly liquidation authority” created by the Dodd-Frank Act, which critics said enabled bureaucrats to pick and choose among creditors.
The new Act, however, does not eliminate or sap power from the “orderly liquidation authority.”