News & Analysis as of

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

Locke Lord LLP

Too Much of a Good Thing: Congress Allows Increased Subchapter 5 Eligibility Level to Expire

Locke Lord LLP on

Over the past few years, one of the universally celebrated success stories in the bankruptcy and restructuring world has been Subchapter V of the Bankruptcy Code. Created by the Small Business Reorganization Act of 2019 (the...more

Kerr Russell

Subchapter V Debt Limit Set to Expire in June 2024: What This Means for Small Businesses

Kerr Russell on

The Small Business Reorganization Act (SBRA), enacted in 2020, codified Subchapter V of Chapter 11 of the U.S. Bankruptcy Code. Subchapter V was enacted to provide a more efficient and affordable process for small businesses...more

Nelson Mullins Riley & Scarborough LLP

ABI’s Subchapter V Task Force Releases Final Report on Subchapter V Recommendations

Congress enacted the Small Business Reorganization Act of 2019 (“SBRA”) on August 23, 2019, to facilitate the reorganization of smaller business debtors in the United States. The SBRA, codified as Subchapter V of Chapter 11...more

Patterson Belknap Webb & Tyler LLP

Popularity of Subchapter V Bankruptcy Filings

In 2019, Congress enacted the Small Business Reorganization Act, which created subchapter V within chapter 11 of the Bankruptcy Code. Congress’ intent was to create a more cost-efficient and streamlined restructuring process...more

Miller Canfield

Debt Limit to Qualify for Subchapter V and Chapter 13 Set to Revert This Summer

Miller Canfield on

In 2022, Congress passed the Bankruptcy Threshold Adjustment and Technical Corrections Act (the “Act”), raising the debt limits for bankruptcy cases under the Small Business Reorganization Act (“SBRA,” a.k.a. “Subchapter V”)...more

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

White and Williams LLP

Federal Rules Of Bankruptcy Procedure Amended In Response To Small Business Reorganization Act Of 2019

White and Williams LLP on

On February 19, 2020, the Small Business Reorganization Act of 2019 (SBRA) took effect after being signed into law in mid-2019. Among other things, the SBRA created a new subchapter (Subchapter V) to chapter 11 of title 11 of...more

Arnall Golden Gregory LLP

The Benefits of Subchapter V — But Are You Guaranteed To Stay?

Benefits of Subchapter V - On August 23, 2019, Congress enacted the Small Business Reorganization Act of 2019 (“SBRA”), which became effective on February 19, 2020, creating Subchapter V of Chapter 11 of the Bankruptcy Code...more

Miller Canfield

Passage of Bankruptcy Threshold Adjustment and Technical Corrections Act

Miller Canfield on

Congress has made some small but important changes to the Bankruptcy Code through its enactment of the Bankruptcy Threshold Adjustment and Technical Corrections Act (the "Act") on June 21, 2022. The most important of these...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

Bradley Arant Boult Cummings LLP

Fourth Circuit Decision Clarifies Application of Exceptions to Discharge in a Subchapter V

As discussed in prior posts and articles (here, here and here), in 2019 Congress passed the Small Business Reorganization Act creating new Subchapter V of Chapter 11 of the Bankruptcy Code. The purpose of Subchapter V was to...more

Kelley Drye & Warren LLP

Subchapter V Changed The Chapter 11 Bankruptcy Landscape – How Should A Creditor Protect Itself?

Subchapter V was intended to be the faster, easier, and cheaper version of Chapter 11 bankruptcy, allowing small “Main Street” businesses to reorganize like mid-size and large companies. After participating in Subchapter V...more

Levenfeld Pearlstein, LLC

Increase in Subchapter V Debt Limit Poised to be Made Permanent

On February 19, 2020, Congress enacted the Small Business Reorganization Act (“SBRA”) to, among other things, streamline the chapter 11 bankruptcy process for a small business. Under the SBRA, a “small business” was one with...more

Williams Mullen

Subchapter V of Chapter 11: New Rules and New Players to Help with Small Business Reorganization

Williams Mullen on

Last year, while your life shifted to monitoring COVID-testing statistics, masking protocols, and your progress toward finding the end of the internet, a new facet of Chapter 11 of the Bankruptcy Code came into being. You may...more

Epiq

The Future of Subchapter V: Navigating the Pandemic and Beyond

Epiq on

Bankruptcy courts have had an increase in activity since the COVID-19 pandemic struck, especially for small businesses facing financial challenges. The Small Business Reorganization Act (SBRA), which was passed in August 2019...more

Goodwin

A New Bankruptcy Lifeline for Startup, Early Stage and Emerging Growth Companies?

Goodwin on

Top 10 Questions About Subchapter V Reorganization - Reorganization under Chapter 11 of the Bankruptcy Code offers powers and benefits that are simply not available in out-of-court restructurings. Chapter 11...more

Snell & Wilmer

Debt Limit Increase of Subchapter V of Chapter 11 of Bankruptcy Code Extended

Snell & Wilmer on

The 2020 CARES Act, enacted in response to the COVID-19 pandemic, included what was thought to be a temporary increase in the debt limits for Subchapter V bankruptcy filings under the Small Business Reorganization Act....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

Miller Canfield

The Impact of the Bankruptcy Relief Act and Other Recent Bankruptcy Code Changes

Miller Canfield on

Bankruptcy law has seen many changes in 2020 and 2021. Some of these were enacted in response to COVID, but many other changes were included in the Bankruptcy Code before the pandemic. This article highlights some of these...more

Genova Burns LLC

President Biden Signs the “COVID-19 Bankruptcy Relief Extension Act”

Genova Burns LLC on

On March 27, 2021, President Biden signed the “COVID-19 Bankruptcy Relief Extension Act”. The Legislation will extend personal and small business bankruptcy relief provisions that were part of last year’s CARES Act through...more

Kerr Russell

Increased Bankruptcy Debt Ceiling Set To Expire

Kerr Russell on

In February 2020, Congress established a new subchapter of Chapter 11 of the Bankruptcy Code aimed at easing the burden and costs of reorganization for small businesses. This new Subchapter V, enacted under the Small Business...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Code Amendments Aimed at Allowing Extended Rent Holidays for Small Business Debtors Pose More Questions Than They...

While the recent Bankruptcy Code amendments allow small business debtors to extend their deferral of lease obligations beyond the first 60 days of the bankruptcy case, the amendments raise and leave unanswered important...more

Obermayer Rebmann Maxwell & Hippel LLP

Big Changes to Small Business Bankruptcies: Timely Amendments to The Bankruptcy Code Throw A Lifeline to Small Businesses...

The Small Business Reorganization Act (“SBRA”), which became effective February 19, 2020 after being signed into law in August 2019, created a new Subchapter V of Chapter 11 of the Bankruptcy Code with a stated purpose “to...more

Bradley Arant Boult Cummings LLP

Individual Chapter 11 Cases Under New Subchapter V

IN BRIEF - • The current economic decline caused by the COVID-19 pandemic will result in a surge of debtors in need of bankruptcy protection. • Subchapter V to the rescue! Despite some burdens on debtors, the advantages...more

Patterson Belknap Webb & Tyler LLP

A Cogent Opposing View on SBRA Flexibility

I don’t know if Congress foresaw, when it enacted new Subchapter V of Chapter 11 of the Code in the Small Business Reorganization Act of 2019 (“SBRA”), that debtors in pending cases would seek to convert or redesignate their...more

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