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| vol 20, num 1 | September 2024 |
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| Congress Still Has Not Passed Subchapter V Debt Limit Extension; Sen. Durbin Attempts to Break Logjam with Inclusion of Extension in Defense Authorization Bill |
| Small business debtors and other stakeholders hoping for an extension of the increased ($7.5 million) debt-eligibility limit for subchapter V cases, which sunsetted on June 21, 2024, will need to wait until the fall. On a more encouraging note, in July Sen. Richard Durbin attempted to break through several months of stagnation on the effort to pass an extension by proposing an amendment to Congress’s annual defense authorization bill that would extend the increased debt limit for two additional years, through June 21, 2026. The proposed extension would apply retroactively to chapter 11 cases filed during the “gap period” between
expiration of the last extension and enactment of the proposed extension, such that chapter 11 debtors who would have otherwise been eligible to file for subchapter V relief will have the option to convert their (non-subchapter V) chapter 11 cases into subchapter V cases.
Inclusion of the proposed extension in what sources see as a “must pass” bill represents a positive development for those hoping to see the extension implemented sooner rather than later. Despite the broad bipartisan support for the extension and the absence of significant substantive concerns about the relief, efforts to pass the extension in standalone legislation (S. 4150) through the unanimous consent process had been stymied in the Senate, and that bill remains with the Senate Judiciary Committee, to which it was referred on April 17, 2024.
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| We Want to Hear Your Subchapter V Success Stories |
| We want to hear from you! As part of our ongoing efforts to share insights and experiences from across the bankruptcy community, ABI is collecting Subchapter V success stories. Have you been involved in a case where Subchapter V of the Bankruptcy Code helped a small business reorganize or find a path forward? We’d love to showcase your experience! Please share your stories with us, and they may be featured in an upcoming issue of our newsletter or at an ABI event. This is a great opportunity to highlight the positive impact of Subchapter V on small businesses and demonstrate its practical applications. |
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| Register for WLC Today! |
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| WLC24 will take place at the Phoenician in Scottsdale, Arizona, from December 12–17, 2024. It will include a full schedule of panels with experts, networking opportunities, and instructional sessions. Important topics of conversation will include the latest changes to bankruptcy law, economic projections, and methods for navigating the changing insolvency environment. This year, the Legislative Committee will be partnering with the Mediation Committee to host a panel titled "Do you want to Make Change: The process to Amend the Bankruptcy Rules.” This panel will explore the
process to Amend the Bankruptcy Rules. Using the current proposed amendments to Bankruptcy Rule 9031 as an example, an overview on how to add, delete, or revise the Bankruptcy Rules from concept to a successful enacted rule change. Speakers for this panel include: Syliva Mayer of Mayer Law; Hon. Martin Barash (C.D. CA); and Carly Giffin of the Federal Judicial Center. |
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