Public Law 116-54, Small Business Reorganization Act of 2019

Public Law 116-54, the Small Business Reorganization Act of 2019, took effect on February 19, 2020. It changed 40 parts of the United States Code.

Title 11, Section 101(51C): amended. Inserted "and has not elected that subchapter V of chapter 11 of this title shall apply" after "is a small business debtor" in section 101(51C) of title 11.

Title 11, Section 101(51D)(A): amended. Struck "or operating real property or activities incidental thereto" and inserted "single asset real estate" in section 101(51D)(A) of title 11.

Title 11, Section 101(51D)(A): amended. Replaced the clause beginning with "for a case in which" with "not less than 50 percent of which arose from the commercial or business activities of the debtor; and" in section 101(51D)(A) of title 11.

Title 11, Section 101(51D)(B): amended. Struck the period at the end of section 101(51D)(B) of title 11 and inserted a semicolon.

Title 11, Section 101(51D)(B): amended. In section 101(51D)(B), replaced “does not include any member” with “does not include— (i) any member”.

Title 11, Section 101(51D)(B): amended. Added clauses (ii) and (iii) at the end of section 101(51D)(B) of title 11 to exclude certain reporting corporations and their affiliates.

Title 11, Section 103: renumbered. Renumbered subsections (i) through (k) as subsections (j) through (l) in section 103 of title 11.

Title 11, Section 103: amended. Inserted subsection (i) in section 103 of title 11 to state that subchapter V of chapter 11 of this title applies only in a case under chapter 11 in which a small business debtor elects that subchapter V of chapter 11 shall apply.

Title 11, Section 322(a): amended. Inserted "1183," after "1163," in section 322(a) of title 11.

Title 11, Section 326(a): amended. Inserted ", other than a case under subchapter V of chapter 11" after "7 or 11" in section 326(a) of title 11.

Title 11, Section 326(b): amended. Inserted "subchapter V of chapter 11 or" after "In a case under" in section 326(b) of title 11.

Title 11, Section 347(a): amended. Inserted "1194," after "726," in section 347(a) of title 11.

Title 11, Section 347(a): amended. Inserted "subchapter V of chapter 11," after "chapter 7," in section 347(a) of title 11.

Title 11, Section 347(b): amended. Inserted "1194," after "1173," in section 347(b) of title 11.

Title 11, Section 363(c)(1): amended. Inserted "1183, 1184," after "1108," in section 363(c)(1).

Title 11, Section 364(a): amended. Inserted "1183, 1184," after "1108," in section 364(a).

Title 11, Section 523(a): amended. Inserted "1192" after "1141," in the matter preceding paragraph (1) of section 523(a).

Title 11, Section 524(a)(1): amended. Inserted "1192," after "1141," in section 524(a)(1).

Title 11, Section 524(a)(3): amended. Inserted "1192," after "523," in section 524(a)(3).

Title 11, Section 524(c)(1): amended. Inserted "1192," after "1141," in section 524(c)(1).

Title 11, Section 524(d): amended. Inserted "1192," after "1141," in section 524(d).

Title 11, Section 547(b): amended. Inserted ", based on reasonable due diligence in the circumstances of the case and taking into account a party's known or reasonably knowable affirmative defenses under subsection (c)," after "may" in section 547(b).

Title 11, Section 557(d)(3): amended. Inserted “1183,” after “1104,” in section 557(d)(3) of title 11.

Title 11, Section 1102(a): rewritten. Rewrote paragraph (3) in section 1102(a) of title 11 to bar appointment of a creditors’ committee in a small business case or a case under subchapter V of this chapter, unless the court for cause orders otherwise.

Title 11, Section 1146(a): amended. Inserted “or 1191” after “1129” in section 1146(a) of title 11.

Title 11, Section 1181: added. Added section 1181 to title 11 and provided that specified sections do not apply in a case under this subchapter.

Title 11, Section 1182: added. Added section 1182 to title 11 and defined “debtor” and “debtor in possession” for this subchapter.

Title 11, Section 1183: added. Added section 1183 to title 11 and established the trustee for cases under this subchapter, along with the trustee’s duties.

Title 11, Section 1184: added. Added section 1184 to title 11 and gave a debtor in possession the rights, powers, functions, and duties of a trustee, except the right to compensation under section 330 of this title and specified duties under section 1106(a) of this title.

Title 11, Section 1185: added. Added section 1185 to title 11 and authorized the court to remove a debtor in possession for cause and later reinstate the debtor in possession.

Title 11, Section 1186: added. Added section 1186 of title 11 to include certain postpetition property and earnings in the estate and to let the debtor remain in possession, except as provided in section 1185 of this title.

Title 11, Section 1187: added. Added section 1187 of title 11 to require filing specified documents, compliance with section 308 and section 1116, and application of section 1125(f) if section 1125 of this title applies.

Title 11, Section 1188: added. Added section 1188 of title 11 to require a status conference within 60 days after the order for relief, allow extensions for debtor-unaccountable circumstances, and require a preconference report.

Title 11, Section 1189: added. Added section 1189 of title 11 to allow only the debtor to file a plan under this subchapter and to require filing within 90 days after the order for relief, subject to extension for debtor-unaccountable circumstances.

Title 11, Section 1190: added. Added section 1190 of title 11 to require a plan to include a business history, liquidation analysis, and payment projections, and to allow modification of certain home-mortgage rights when the new value was used primarily in the small business.

Title 11, Section 1191: added. Added section 1191 of title 11 to set confirmation requirements for plans under this subchapter and to authorize confirmation over the nonacceptance of impaired classes if the plan was not unfairly discriminatory and was fair and equitable.

Title 11, Section 1192: added. Added section 1192 of title 11 to require discharge after completion of payments due in the first 3 years, or up to 5 years if the court fixed a longer period, for plans confirmed under section 1191(b) of this title.

Title 11, Section 1193: added. Added section 1193 of title 11 to allow plan modification before confirmation, after confirmation before substantial consummation under section 1191(a) of this title, and under section 1191(b) of this title within 3 years or up to 5 years.

Title 11, Section 1194: added. Added section 1194 of title 11, which required the trustee to retain plan payments until confirmation or denial, distribute confirmed payments under the plan, and return unconfirmed payments after listed deductions.

Title 11, Section 1195: added. Added section 1195 of title 11, which said a person was not disqualified from employment under section 327 solely because the person held a prepetition claim under $10,000.