Bankruptcy Law Alert: President Signs Major Bankruptcy Reform into Law
4/21/2005
On April 20, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (the "Bankruptcy Act" or "Act"). While much of the public attention on the Act has been focused on its provisions concerning consumer bankruptcies, the Act will also have an impact on business bankruptcy cases. This Alert summarizes some of the key business bankruptcy provisions of the Bankruptcy Act, which include tightening deadlines with respect to a debtor's "exclusivity period" to propose a plan of reorganization and the debtor's ability to assume or reject commercial real property leases. The Act also provides new rules for health care and not-for-profit debtors, and alters the rights of employees in a bankruptcy.
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