The change will “enhance a small business’s ability to get a plan confirmed over objections by creditors” if it has proved to have applied its disposable income over a three-to-five-year plan, said retired Judge A. Thomas Small of the U.S. Bankruptcy Court for the Eastern District of North Carolina in an interview with Bloomberg Law.
Creditors would benefit under the measure because of the standing trustee appointed in every case. It’s hard to get a creditors’ committee to participate in a small business case because of the cost and the time involved, Small said. A standing trustee would make sure the reorganization stays on track, he said.