Firm Counsel and Bankruptcy, Reorganization & Creditors' Rights Practice member Scott S. Rever, Esq. recently had an article he penned published in NJBIZ entitled "The New Subchapter V of the Bankruptcy Code: A Trustee’s Perspective".
The Small Business Reorganization Act of 2019 (“SBRA”) was signed into law by President Trump on August 23, 2019. The law enacted a new subchapter of Chapter 11 of the Bankruptcy Code, which is codified at 11 U.S.C. §§1181 – 1195. The law was established to assist small business debtors in reorganizing their financial affairs in a timely and costs efficient manner. Due to the requirements of Chapter 11, oftentimes the cost of the case alone is the death knell of the small business debtor’s ability to reorganize its affairs. Other times, one large creditor controls the debtor’s fate and blocks the debtor from emerging from bankruptcy intact and viable. Prior to the enactment of the SBRA, small business cases were like a roach motel, you could file the Chapter 11 case to get into bankruptcy but you couldn’t get out. The motivation behind the enactment of the statute is to give small business debtors a chance of survival in and after Chapter 11, and to serve public policy by preserving the jobs small businesses create. The timing of the enactment of the statute is eerie. It is as if someone had a crystal ball as to what was to come – a pandemic and its detrimental impact, particularly on small businesses.
To access the full article, please click here.
ABOUT THE ATTORNEY
Scott S. Rever, Esq. represents Debtors, Trustees, Creditors’ Committees and creditors in Chapter 7, 11 and Chapter 13 cases. Mr. Rever has prepared and filed Bankruptcy Petitions, and has filed, prosecuted and defended complex adversary complaints and motions before the Bankruptcy Court and State Courts.
Mr. Rever has served as an Adjunct Law Professor at Seton Hall University School of Law in Newark where he taught legal research and writing. He is a member of the New Jersey State Bar Association, the Essex County Bar Association and has been a Master in the Bankruptcy Inn of Court.