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Proposed Interim Small Business Reorganization Act Rules & Forms Published For Public Comment

Wednesday, October 30, 2019

On August 23, 2019, the Small Business Reorganization Act of 2019, P.L. 116-54 (SBRA) was enacted into law. The SBRA creates a new subchapter V of chapter 11 for the reorganization of small business debtors. It creates an alternative procedure that small business debtors may elect to use in reorganizing – no current provision of chapter 11 is repealed. The effective date of the SBRA is February 19, 2020.

Because the federal rule-making process takes three years to complete, the Judicial Conference’s Committee on Rules of Practice and Procedure has published for public comment proposed interim SBRA rules that the Committee hopes will be adopted uniformly in judicial districts throughout the country as local rules or by general order. The public comment period for the SBRA interim rules, as well as proposed SBRA form changes, begins October 16, 2019, and will end on November 13, 2019. The proposed interim rules and form changes, as well as instructions for submitting comments, can be found at