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Small Business Reorganization Act of 2019

USA116th CongressS-1091| Senate 
| Updated: 4/9/2019
Chuck Grassley

Chuck Grassley

Republican Senator

Iowa

Cosponsors (6)
Joni Ernst (Republican)Thomas Tillis (Republican)Marsha Blackburn (Republican)Amy Klobuchar (Democratic)Sheldon Whitehouse (Democratic)Richard Blumenthal (Democratic)

Judiciary Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
Small Business Reorganization Act of 2019 This bill creates new bankruptcy procedures for small businesses filing under Chapter 11 and otherwise revises provisions related to venue and trustee responsibilities in Chapter 11 bankruptcies. For small businesses filing under these new procedures, the bill provides for the appointment of a trustee, sets forth requirements regarding the filing, contents, and confirmation of a plan of reorganization, and establishes the conditions of a discharge. Among other things, the bill provides authority to the bankruptcy court to approve a reorganization plan for these small businesses over the objections of the creditors. Currently, creditors must generally vote to approve such a plan. Additionally, only a debtor is allowed to file a plan. Under current law, creditors may also submit plans for court approval. The bill also generally reduces the required disclosures for these small businesses. The bill also provides additional standards a trustee must meet in order to void a preferential transfer for all Chapter 11 filers. (Preferential transfers generally occur when a debtor transfers property before filing bankruptcy that is beneficial to one creditor to the detriment of others.) Specifically, a trustee may only void such a transfer based on reasonable due diligence and must take into account a party's known or reasonably knowable affirmative defenses.
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Timeline
Apr 9, 2019
Introduced in Senate
Apr 9, 2019
Read twice and referred to the Committee on the Judiciary.
Aug 23, 2019

Latest Companion Bill Action

HR 116-3311
Signed by President.
  • April 9, 2019
    Introduced in Senate


  • April 9, 2019
    Read twice and referred to the Committee on the Judiciary.


  • August 23, 2019

    Latest Companion Bill Action

    HR 116-3311
    Signed by President.

Finance and Financial Sector

Related Bills

  • HR 116-3311: Small Business Reorganization Act of 2019
BankruptcyCorporate finance and managementJurisdiction and venueSmall business

Small Business Reorganization Act of 2019

USA116th CongressS-1091| Senate 
| Updated: 4/9/2019
Small Business Reorganization Act of 2019 This bill creates new bankruptcy procedures for small businesses filing under Chapter 11 and otherwise revises provisions related to venue and trustee responsibilities in Chapter 11 bankruptcies. For small businesses filing under these new procedures, the bill provides for the appointment of a trustee, sets forth requirements regarding the filing, contents, and confirmation of a plan of reorganization, and establishes the conditions of a discharge. Among other things, the bill provides authority to the bankruptcy court to approve a reorganization plan for these small businesses over the objections of the creditors. Currently, creditors must generally vote to approve such a plan. Additionally, only a debtor is allowed to file a plan. Under current law, creditors may also submit plans for court approval. The bill also generally reduces the required disclosures for these small businesses. The bill also provides additional standards a trustee must meet in order to void a preferential transfer for all Chapter 11 filers. (Preferential transfers generally occur when a debtor transfers property before filing bankruptcy that is beneficial to one creditor to the detriment of others.) Specifically, a trustee may only void such a transfer based on reasonable due diligence and must take into account a party's known or reasonably knowable affirmative defenses.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Apr 9, 2019
Introduced in Senate
Apr 9, 2019
Read twice and referred to the Committee on the Judiciary.
Aug 23, 2019

Latest Companion Bill Action

HR 116-3311
Signed by President.
  • April 9, 2019
    Introduced in Senate


  • April 9, 2019
    Read twice and referred to the Committee on the Judiciary.


  • August 23, 2019

    Latest Companion Bill Action

    HR 116-3311
    Signed by President.
Chuck Grassley

Chuck Grassley

Republican Senator

Iowa

Cosponsors (6)
Joni Ernst (Republican)Thomas Tillis (Republican)Marsha Blackburn (Republican)Amy Klobuchar (Democratic)Sheldon Whitehouse (Democratic)Richard Blumenthal (Democratic)

Judiciary Committee

Finance and Financial Sector

Related Bills

  • HR 116-3311: Small Business Reorganization Act of 2019
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
BankruptcyCorporate finance and managementJurisdiction and venueSmall business