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Chapter 11 – Small Business Reorganization Act of 2019 (SBRA)

Chief Judge Karen K. Specie signed Administrative Order No. 20-001 Interim Order Adopting Rules for Small Business Reorganization Act of 2019. The Act known as "SBRA" went into effect on February 19, 2020. A "redline" version of related rule amendments is attached to the order. The Interim Rules shall remain in effect until further order of the court.
 

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SUBCHAPTER V AND CHAPTER 13 DEBT THRESHOLDS TO SUNSET BY JUNE 21, 2024 UNLESS CONGRESS ACTS

Despite months of educational outreach to members of Congress by numerous bankruptcy judges, including Judge Specie, and members of the bankruptcy bar nationwide, bipartisan legislation to continue the current debt limits for Subchapter V and Chapter 13 is stalled in the U.S. Senate. Unless Congress acts, the current debt thresholds to qualify for Subchapter V ($7,500,000.00) and Chapter 13 ($2,75,000.00) relief will sunset on June 21, 2024.

Absent action by Congress, the debt limits for Subchapter V and Chapter 13 cases will revert to the amounts in effect in March of 2020. The Subchapter V debt limit will drop to $3,024,725. The Chapter 13 threshold of $2,750,000 for both secured and unsecured debt will revert to a two-part test that limits eligibility to a maximum of $465,275 for unsecured debt and $1,395,625 for secured debt.

 

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