On August 23, 2019, the Small Business Reorganization Act of 2019 (the SBRA) was enacted into law. The SBRA creates a new subchapter V of 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 effective date of the SBRA is February 19, 2020, which does not afford sufficient time for the completion of the approval process needed to amend the Federal Rules of Bankruptcy Procedures under the Rules Enabling Act, 28 U.S.C. §§ 2071-77.
The Judicial Conference of the United States Advisory Committee on Bankruptcy Rules and the Committee on Rules of Practice and Procedure approved the following Interim Rules and SBRA-related forms, and the Judicial Conference of the United States has authorized distribution of the Interim Rules to courts for adoption locally to facilitate uniform implementation of the SBRA:
- Interim Bankruptcy Rules 1007, 1020, 2009, 2012, 2015, 3010, 3011, 3014, 3016, 3017.1, 3017.2 (new), 3018, and 3019 (“Interim Rules”)
The Interim Rules have been adopted by General Order M-535, dated, January 16, 2020. The Official Forms will go into effect on February 19, 2020.