Clayson, Schneider & Miller, PC is pleased to announce the appointment of one of its principals, Kim Clayson, to one of the five newly created small business trustee positions for the Eastern District of Michigan. The Small Business Restructuring Act known as “Subchapter V” is a new addition to the current federal bankruptcy code that is aimed at easing the burdens of the chapter 11 process for small businesses.
Chapter 11 bankruptcy was utilized by General Motors and Chrysler to restructure their businesses. The former version of the code had few distinctions for addressing financial distress faced by fortune 10 companies and small businesses alike. The new rules simplify the process for small businesses while adding a new role for Subchapter V trustees to facilitate the restructuring process with debtors and their attorneys.
Over Ms. Clayson’s tenure she has ushered dozens of entrepreneurs and small businesses through Chapter 11 who would have qualified under the new rules improving the process for small businesses.
“By enacting these new rules for small businesses, Congress has eased the burdens that often have turned into roadblocks for entrepreneurs and small businesses to emerge from Chapter 11.” Ms. Clayson said. “I look forward to enhancing my role in helping small business owners to persevere and thrive after emerging from bankruptcy.”
Ms. Clayson’s work experience ranging from her after school jobs in highschool and college to working in a boutique law firm for her legal tenure and taking over that same law firm 3 years ago uniquely positioned her for eligibility to serve as a Subchapter V trustee.
“My passion for small business goes back as far as my first highschool jobs working the register at a couple of bakeries in my small town, maybe it was odd for a highschool kid, but I cared as much about how the business owners operated their businesses as I did about all the of my day to day duties. That passion has translated into a law practice aimed at helping businesses work through tough financial decisions to emerge from bankruptcy.”
The firm’s small business Chapter 11 practice has grown into a broader business law practice that works with entrepreneurs and small businesses to establish and grow businesses with sound financial footing and legal structures to thwart or minimize financial distress. While serving in this new role, Ms. Clayson will continue to lead the business law practice and she and her firm remain eligible to serve as Chapter 11 counsel for small business debtors.
“Bankruptcy is there for business owners who are facing unforeseen financial strain and I look forward to representing small businesses under the new Small Business Act, I expect the new law to bring greater success in restructuring.”