Implementation of Subchapter V of Chapter 11
Under the Small Business Reorganization Act of 2019 (SBRA)
On February 19, 2020, the Small Business Reorganization Act of 2019 (SBRA) took effect. The first subchapter V case in this court was filed on 2/25/2020 in the West Palm Beach Division and a second subchapter V case was filed in Miami-Dade on 3/5/2020.
The SBRA creates a new subchapter V under chapter 11 for the reorganization of small business debtors. It does not repeal existing chapter 11 provisions regarding small business debtors, but instead creates an alternative procedure that small business debtors may elect to use.
The Committee on Rules of Practice and Procedure of the Judicial Conference of the United States has promulgated Interim Rules and Form Amendments to the Federal Rules of Bankruptcy Procedure as a result of the passage of the Small Business Reorganization Act. The Interim Bankruptcy Rules were adopted in this Court under Administrative Order 2020-02 “In re: Adoption of Interim SBRA Bankruptcy Rules”.
Amended Official Forms 101, 201, 309E (renumbered 309E1), 309F (renumbered as 309F1), 314 (use Local Form LF-33), 315, and 425A, and new Official Forms 309E2, and 309F2 became effective February 19, 2020. For changes in the Bankruptcy Forms please visit: https://www.uscourts.gov/rules-policies/pending-rules-and-forms-amendments/pending-changes-bankruptcy-forms.
The United States Courts and the Federal Judicial Center have made available SBRA educational resources to the public, including the following: https://www.fjc.gov/publications/small-business-reorganization-act (Federal Judicial Center website with online video of panel discussion on SBRA moderated by Judge A. Thomas Small (Ret.) (Bankr. E.D.N.C.) and the following downloadable files: 1) Small Business Reorganization Act of 2019 (Legislation), 2) Revised Testimony of A. Thomas Small on Behalf of the National Bankruptcy Conference, and 3) Legislative History.
A “Guide to the Small Business Reorganization Act of 2019” by U.S. Bankruptcy Judge Paul W. Bonapfel Northern District of Georgia is available at the following link: http://www.gamb.uscourts.gov/USCourts/sites/default/files/pdf/SBRA_Guide.pdf