News & Analysis as of

Small Business Small Business Reorganization Act of 2019 (SBRA) CARES Act

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

Levenfeld Pearlstein, LLC

Congress Considers Another Extension to the Subchapter V $7.5 Million Debt Limit

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 by creating subchapter V of the Bankruptcy Code....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

Lowenstein Sandler LLP

Senate’s Bankruptcy Threshold Adjustment and Technical Corrections Act Retains $7.5 Million Eligibility for Subchapter V Small...

The Small Business Reorganization Act (SBRA) went into effect on Feb. 19, 2020, creating Subchapter V of the Bankruptcy Code. Acknowledging that a bankruptcy proceeding is not “one size fits all” and that a Chapter 11...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

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

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

Expanded Chapter 11 Small Business Reorganization Act Eligibility: A Temporary Opportunity for New Jersey and Pennsylvania...

The COVID-19 pandemic has upset the expectations of many business owners. Lines of business that seemed profitable are now struggling, and previously underappreciated lines of business are blossoming. The pandemic will bring...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

Fox Rothschild LLP

Retention Of Counsel By Trustee Is Not An Absolute Right In Some Chapter 11 Cases

Fox Rothschild LLP on

How can you be an effective trustee appointed in a chapter 11 case if you cannot retain counsel when the case first begins? Well one bankruptcy court in North Carolina explained that a trustee’s retention of counsel is not an...more

Miles & Stockbridge P.C.

Maryland Bankruptcy Court Rules PPP Funds and Lease Rejection Damages Claims Not Considered for Purposes of Debtor Eligibility...

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 the...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

Nelson Mullins Riley & Scarborough LLP

The Small Business Reorganization Act: An Unintended Lifeline For Small Businesses Considering Restructuring Due to COVID-19

For years, small business debtors have struggled with the intricacies of Chapter 11, the debt limitations of Chapter 13 and Chapter 7 bankruptcy liquidations. Stringent requirements and procedural hurdles often made...more

Bradley Arant Boult Cummings LLP

The Pros and Cons of the Small Business Reorganization Act of 2019

Effective February 19, 2020, Congress enacted new bankruptcy legislation granting debtors the option to elect a new subchapter V of chapter 11 of the bankruptcy code (Subchapter V). This was made possible by the bipartisan...more

Miller Canfield

Bankruptcy Rulings: Debtors Do Not Have to Be Currently Engaged in Business and Commercial Activities to Qualify for SBRA Relief

Miller Canfield on

The recently enacted Small Business Reorganization Act ("SBRA") is available to help "small business debtors" with debts of no more than $2,725,625 (temporarily increased to $7,500,000 for one year by the CARES Act). Although...more

Vinson & Elkins LLP

The Paycheck Protection Program And Bankruptcy

Vinson & Elkins LLP on

The COVID-19 pandemic has heavily disrupted our lives, communities, and businesses. Even with new approaches, not all businesses can overcome the substantial challenges brought by the pandemic. Lending programs like the...more

Schwabe, Williamson & Wyatt PC

Chapter 11 Bankruptcy is Expensive; the Small Business Reorganization Act Provides a Realistic Opportunity for Small Businesses to...

Many commentators have long complained and many companies have experienced the reality that bankruptcy laws are too complex, costly, and onerous to successfully allow small businesses to survive by reorganizing in bankruptcy....more

Robinson & Cole LLP

Distressed Investors' Unexpected Tool: Understanding the Small Business Reorganization Act and Changes Related to the CARES Act

Robinson & Cole LLP on

In what seems like in the blink of an eye, a once robust economy quickly evaporated, leaving many small businesses with little to no revenue and depleted cash reserves. While many businesses are facing financial distress, the...more

Cooley LLP

Alert: Options for US Small Businesses in Distress in Age of COVID-19

Cooley LLP on

In the wake of the COVID-19 pandemic, more and more businesses are finding themselves in distress. According to Forbes, 30 million small businesses across the United States are experiencing financial distress, with half of...more

Genova Burns LLC

CARES Act: Expanded Small Business Reorganization Act Can Assist Distressed Businesses

Genova Burns LLC on

On February 19, 2020, just a few months before the COVID-19 pandemic sent shockwaves throughout the business communities, the Small Business Reorganization Act (“SBRA”) became effective. Now more than ever, as payroll...more

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