Chapter 11 Sub V Small Business Reorganization Act of 2019

Last Updated: February 19, 2020

On February 4, 2020, Judge Shon Hastings entered an Order Adopting Small Business Reorganization Act Interim Bankruptcy Rules.

The Bankruptcy Code allows small business debtors to file for relief under two different special categories of Chapter 11 intended to streamline processes and reduce costs.  In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) created the Chapter 11 Small Business.  Later Congress enacted the Small Business Reorganization Act of 2019 (SBRA) which created Subchapter V that became effective on February 19, 2020.

In a chapter 11 voluntary case, the debtor will state in the petition whether the debtor is a small business and/or subchapter V.