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SBRA - Part 2: Eligibility

Judge Hannah L. Blumenstiel, focuses on eligibility for debtors under subchapter five of chapter 11. Eligibility is defined by Section 1182, which includes debtors with non-contingent, liquidated debts not exceeding $7.5 million, with at least 50% incurred for business activities. The debt limit increased from $2.7 million to $7.5 million under the CARES Act and was extended by the COVID-19 bankruptcy relief extension. The character of the debt and the debtor's business activities are also crucial. The discussion includes cases like Parking Management and Family Friendly Contracting, which clarify debt eligibility. The session also covers the implications of opting into subchapter five after a case has been pending.

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Keywords:

eligibility, debt limits, commercial or business activities, publicly traded securities, opting into subchapter V

Duration:

12 minutes 33 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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