Amendments To Federal Rules Of Bankruptcy Procedure
Whether you are planning to file for business bankruptcy under Chapter 11 or Chapter 7 (or Chapter 12, in some cases), or you are planning to file for personal bankruptcy under Chapter 7, Chapter 11, or Chapter 13, it is important to know about recent changes to U.S. bankruptcy law. Federal bankruptcy law was last overhauled in 2005 with the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). More recently, Senator Elizabeth Warren has proposed another overhaul through the Consumer Bankruptcy Reform Act, which may or may not come to pass. While there have not been any major overhauls to federal bankruptcy law in recent years, it is important to know that there have been smaller amendments to the Federal Rules of Bankruptcy Procedure that could impact your case. Our bankruptcy lawyers in West Palm Beach can provide you with more information about recent amendments that took effect on December 1, 2022.
Amendments Related to the Small Business Reorganization Act of 2019 (SBRA)
As you may know, the SBRA was enacted in 2020 and is the law that created Subchapter V bankruptcy under Chapter 11. Subchapter V gives small businesses an opportunity to file for reorganization bankruptcy without many of the complications and high costs of a traditional Chapter 11 bankruptcy filing. Amendments to the Federal Rules of Bankruptcy Procedure that took effect in late 2022 include a range of rules related to the SBRA and Subchapter V cases, including an option to file under Subchapter V with an involuntary bankruptcy case and various clarifications concerning debtor and trustee rights and obligations.
If you are planning to file for a business bankruptcy case under Subchapter V, you should discuss the various amendments that could have an impact on your case.
Amendments Unrelated to the SBRA
There were also a number of other amendments that took effect in 2022, which are unrelated to the SBRA. Some of these amendments are practical, such as a shift to electronic filing instead of hard-copy delivery requirements. There are also a range of clarifications to existing bankruptcy practices, including how defendant businesses are served in bankruptcy cases and what types of fees are required before a bankruptcy case can be dismissed.
To ensure that your bankruptcy case complies with all recent amendments, you should work closely with a bankruptcy attorney on any consumer or business bankruptcy filing.
Contact Our Bankruptcy Attorneys in West Palm Beach
It is important for any individual or business considering bankruptcy to stay aware of any changes to bankruptcy law in the U.S that could affect their case. While bankruptcy law does not often get overhauled on a regular basis, small changes can have a significant impact depending upon the particular case and the specific issues involved. If you have any questions about recent changes to U.S. bankruptcy law that could impact you, it is important to seek advice from an experienced West Palm Beach bankruptcy attorney at Kelley Kaplan & Eller as soon as possible. One of the advocates at our firm can answer any questions you have and can provide you with more information about filing for bankruptcy in South Florida.
Sources:
govinfo.gov/content/pkg/PLAW-109publ8/html/PLAW-109publ8.htm
warren.senate.gov/newsroom/press-releases/senator-warren-and-representative-nadler-reintroduce-the-consumer-bankruptcy-reform-act
govinfo.gov/content/pkg/CDOC-117hdoc108/pdf/CDOC-117hdoc108.pdf
