The Small Business Reorganization Act of 2019 (“SBRA”) is effective February 19, 2020. The SBRA creates a new subchapter V of chapter 11 for the reorganization of small business debtors. To aid in the implementation of the SBRA, the Judicial Conference has approved Interim Rules and related forms for adoption by bankruptcy courts. The U.S. Bankruptcy Court for the Eastern District of Washington has adopted the Interim Rules in General Order 20-01, which may be accessed here. A redline version of the Interim Rules is attached to the General Order. To view a clean version of the rules and the forms, click here.
The Advisory Committee on Bankruptcy Rules is moving forward with promulgation of permanent SBRA rules under the Rules Enabling Act. The first step of that process will be the republication of the Interim Rules and related forms in August 2020, with any further amendments that appear necessary as a result of using the Interim Rules. Those rules, when finally approved, will replace the Interim Rules.