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Small Business Bankruptcy Court Small Business Reorganization Act of 2019 (SBRA)

Pillsbury Winthrop Shaw Pittman LLP

Conflicting Court Rulings on Subchapter V Eligibility Leave Small Businesses in Limbo

Two recent bankruptcy court decisions reflect a split of authority on subchapter V eligibility. In re Macedon Consulting Inc. finds that all future amounts due under an unexpired lease qualify as “noncontingent and...more

Nelson Mullins Riley & Scarborough LLP

Subchapter V—Fourth Circuit Rules Not a Panacea for the Dishonest Debtor

In 2019, Congress enacted the Small Business Reorganization Act. This legislation created a new type of Chapter 11 reorganization under which certain businesses with total debts less than a certain threshold (currently $7.5...more

Miles & Stockbridge P.C.

Maryland Bankruptcy Court Rules Corporate Debtors May Discharge Nondischargeable Debts in Subchapter V Chapter 11 Case

The Small Business Restructuring Act of 2019, Pub. L. 116-54, 133 Stat. 1079 (Aug. 23, 2019) (“SBRA”) became effective February 19, 2020. SBRA, among other things, created a new Subchapter V under Chapter 11 of Title 11 of...more

Burr & Forman

You Can Come In, But You Can’t Stay – Judge Grossman Dismisses Debtor’s Case for Re-designating Under the SBRA After Deadlines...

Burr & Forman on

“Timing in Life Is Everything” – John Sculley - Relying on a plain reading of Sections 1188 and 1189 of the Bankruptcy Code, Bankruptcy Judge Scott M. Grossman dismissed the Seven Stars bankruptcy case based on the debtor’s...more

Lowndes

Big Changes for Small Business Coming to Chapter 11 Bankruptcy

Lowndes on

In the coming weeks, the Small Business Reorganization Act (the “SBRA”) will go into effect. As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005—the most significant large-scale change to the...more

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