The changes to the Bankruptcy Code from the SBRA are extensive and may seem confusing. The article titled, “To Choose Subchapter V, or Not to Choose Subchapter V? That Is the Question,” written by Linda W. Knight and Thomas H. Forrester, provide bankruptcy counsel with a concise and informative look at the changes in the new law and strategies to implement the new Code sections. (Read Online) Although this article is longer than what you typically see from our newsletter, the committee leadership believed that it was worthwhile to publish it in its entirety.

Have you considered what additional legislation Congress should pass to help debtors during this difficult COVID-19 period? We urge you to take a look at the article written by Amanda Hunt that is included in this newsletter; there are a few bills that could pass soon to provide aid to more people through the Bankruptcy Code.

A special thank you to everyone who submitted articles. We at the ABI Legislative Committee hope that everyone continues to stay safe, and hope that your practices continue to thrive even during these uncertain times. For additional information and updates please visit the Legislation Committee Website.

The SBRA affects many sections of the Bankruptcy Code (title 11, U.S. Code, the “Code” or the “Bankruptcy Code”). They are listed at 11 U.S.C. § 1181.

• Section 1181(a) provides that the following Code sections do not apply at all: 105(d), 1101(1), 1104, 1105, 1106, 1107, 1108, 1115, 1116, 1121, 1123(a)(8), 1123(c), 1127, 1129(a)(15), 1129(b), 1129(c), 1129(e) and 1141(d)(5).
• Also, § 1181(b) provides that unless the court orders otherwise for cause, Code §§ 1102(a), 1102(b), 1103 and 1125 do not apply to subchapter V.
• Section 1181(c) provides that if a subchapter V plan is confirmed under § 1191(b), then Code § 1141(d) does not apply unless § 1192 provides otherwise.