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SBRA - Part 1: Overview

Judge Hannah L. Blumenstiel's Master Class on the Small Business Reorganization Act (SBRA) provides an overview of the new Subchapter 5 within Chapter 11 of the Bankruptcy Code. Key features include a Subchapter 5 trustee, no quarterly US Trustee fees, and the debtor retaining possession of assets. Subchapter 5 cases have tight timelines, with a mandatory status conference within 60 days and a plan filing within 90 days. The debt limit is $7.5 million, and the absolute priority rule does not apply. Comparisons are made with regular Chapter 11 and small business cases, highlighting differences in eligibility, debt limits, and reporting requirements.

Tags:
Keywords:

eligibility, Subchapter 5 trustee, confirmation, discharge, Small Business Reorganization Act, SBRA, Chapter 11, debt limit, creditors committee, reporting requirements, absolute priority rule, plan exclusivity, disclosure statement, status conference

Duration:

13 minutes 46 seconds

Hon. Hannah L. Blumenstiel is a U.S. Bankruptcy Judge for the Northern District of California in San Francisco. Prior to her appointment on Feb. 11, 2013, Judge Blumenstiel was an associate (2003-08) and then a partner (2008-12) with Winston & Strawn LLP, where she focused her practice on creditors’ rights litigation in state and federal court, including bankruptcy court. From 2001 to 2003, Judge Blumenstiel was an associate with Murphy Sheneman Julian & Rogers LLP, where she represented debtors, creditors and trustees in bankruptcy cases and adversary proceedings. She served as a law clerk to Hon. Charles M. Caldwell of the U.S. Bankruptcy Court for the Southern District of Ohio (Eastern Division) from 1998 to 2001, and from 1997-98, she represented the State of Ohio’s interests in bankruptcy cases as an assistant attorney general with the Revenue Recovery Section of the Ohio Attorney General’s Office. Judge Blumenstiel is ABI’s Vice President-Research Grants and serves as an Executive Editor of the ABI Journal. She received her J.D. from Capital University Law School in 1997 while working full-time for the Columbus Bar Association as director of its pro bono initiative, “Lawyers for Justice,” and her B.A. from Ohio State University in 1992.

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