CARES Act Expands Relief Available under Small Business Reorganization Act (Subchapter V of Ch. 11)

The Small Business Reorganization Act of 2019 (the "SBRA"), enacting new subchapter V of Chapter 11 of the U.S. Bankruptcy Code, became effective February 19, 2020. The SBRA makes it significantly easier for many small businesses to reorganize under Chapter 11 of the Bankruptcy Code by reducing costs, streamlining certain disclosure and filing requirements, reducing or eliminating certain stringent plan confirmation requirements, such as the "absolute priority rule," and spee

CARES Act, Part Three: How is my Mortgage Affected?

In Part Three, we discuss the mortgage forbearance provisions in the CARES Act, and how those provisions may affect individuals in bankruptcy. Section 4022 of the CARES Act provides foreclosure relief for "federally-backed loans" (which typically means Fannie Mae, Freddie Mac, FHA, VA, or USDA mortgages.) To determine if your mortgage is a Fannie Mae loan, use the below link: To determine if your mortgage is a Freddie Mac loan, use

CARES Act, Part Two: Plan Payment Issues Resulting from COVID-19

In Part Two, we discuss the CARES Act amendments to Section 1329(d)(1) of the Bankruptcy Code, regarding what happens when a chapter 13 debtor can no longer make his or her plan payments as a result of the COVID-19 pandemic. Under amended Section 1329(d)(1) of the Bankruptcy Code, debtors with plans confirmed prior to the enactment of the CARES Act on March 27, 2020, may modify and extend their confirmed chapter 13 plans from the standard three or five year plan to a seven ye