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Small Business Reorganization Act of 2019

SBRA: ECF Events and Procedures, National Rules

National Rule Changes Implementing the SBRA

The Small Business Reorganization Act of 2019 (the SBRA) becomes effective on February 19, 2020.  To implement the SBRA's substantive and procedural changes to the Bankruptcy Code and Federal Rules of Bankruptcy Procedure, the Judicial Conference of the United States authorized the distribution of approved interim bankruptcy rules for adoption by local bankruptcy courts.

General Order 2020-1 adopts the national Interim Rules in the District of Colorado Bankruptcy Court effective February 13, 2020.

Court Procedures for Cases with the SBRA Election

  • Cases filed under the SBRA in Colorado will differ from standard chapter 11 cases in that A proof of claim deadline of 70 days will be established in the Notice of Meeting of Creditors issued in each case.
  • The Court will hold a case status conference within 60 days.  The Debtor is responsible for filing a status report 14 days prior to the hearing.

Electronic Filing Procedures for Cases with the SBRA Election

Chapter 11 cases electing to proceed under the Small Business Reorganization Act (Subchapter V cases) will be docketed much like a current "regular" chapter 11 case.  If you are using petition preparation software, check with your vendor for updates related to Subchapter V cases.

The following ECF events and procedures apply to cases electing to proceed under Subchapter V in the District of Colorado:

Form of Voluntary Petition: The Official Forms of Voluntary Petition in Chapter 11 are modified to provide an option for electing to proceed under Subchapter V. See Official Form 101, Individual, Line 13, and Official Form 201, Non-Individual, Line 8.

Means Test Not Required: Interim Federal Rule of Bankruptcy Procedure 1007(b)(5) excepts the Subchapter V debtor from the requirement to file a statement of current monthly income.

Case Opening in ECF: The electronic filer will proceed as with a chapter 11 case, using the event "Open Voluntary Bankruptcy Case." If the debtor is electing Subchapter V in the voluntary petition, the same election must be made in the small business drop down menu in ECF:

Debtor's Pre-Status Conference Report: The debtor will docket the pre-status conference report in a Subchapter V case by using the new ECF event "Bankruptcy Events>Miscellaneous>Pre-Status Conference Report."

Docketing the Subchapter V Plan: In a Subchapter V case, the plan is docketed using the new ECF event "Bankruptcy Events>Plan>Chapter 11 Small Business Subchapter V Plan."

Statement re Election of Sub Chapter V: To be filed by a Debtor in an involuntary case.  This new ECF event can be found in "Bankruptcy Events>Miscellaneous>Statement re Election of Sub Chapter V".