H. R. 3311 
One Hundred Sixteenth Congress 
of the 
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Thursday, 
the third day of January, two thousand and nineteen 
An Act 
To amend chapter 11 of title 11, United States Code, to address reorganization 
of small businesses, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Reorganization 
Act of 2019’’. 
SEC. 2. REORGANIZATION OF SMALL BUSINESS DEBTORS. 
(a) IN GENERAL.—Chapter 11 of title 11, United States Code, 
is amended by adding at the end the following: 
‘‘SUBCHAPTER V—SMALL BUSINESS DEBTOR 
REORGANIZATION 
‘‘§ 1181. Inapplicability of other sections 
‘‘(a) IN GENERAL.—Sections 105(d), 1101(1), 1104, 1105, 1106, 
1107, 1108, 1115, 1116, 1121, 1123(a)(8), 1123(c), 1127, 1129(a)(15), 
1129(b), 1129(c), 1129(e), and 1141(d)(5) of this title do not apply 
in a case under this subchapter. 
‘‘(b) COURT AUTHORITY.—Unless the court for cause orders 
otherwise, paragraphs (1), (2), and (4) of section 1102(a) and sections 
1102(b), 1103, and 1125 of this title do not apply in a case under 
this subchapter. 
‘‘(c) SPECIAL RULE
FOR DISCHARGE.—If a plan is confirmed 
under section 1191(b) of this title, section 1141(d) of this title 
shall not apply, except as provided in section 1192 of this title. 
‘‘§ 1182. Definitions 
‘‘In this subchapter: 
‘‘(1) DEBTOR.—The term ‘debtor’ means a small business 
debtor. 
‘‘(2) DEBTOR IN POSSESSION.—The term ‘debtor in posses-
sion’ means the debtor, unless removed as debtor in possession 
under section 1185(a) of this title. 
‘‘§ 1183. Trustee 
‘‘(a) IN GENERAL.—If the United States trustee has appointed 
an individual under section 586(b) of title 28 to serve as standing 
trustee in cases under this subchapter, and if such individual quali-
fies as a trustee under section 322 of this title, then that individual 
shall serve as trustee in any case under this subchapter. Otherwise, 
the United States trustee shall appoint one disinterested person
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to serve as trustee in the case or the United States trustee may 
serve as trustee in the case, as necessary. 
‘‘(b) DUTIES.—The trustee shall— 
‘‘(1) perform the duties specified in paragraphs (2), (5), 
(6), (7), and (9) of section 704(a) of this title; 
‘‘(2) perform the duties specified in paragraphs (3), (4), 
and (7) of section 1106(a) of this title, if the court, for cause 
and on request of a party in interest, the trustee, or the United 
States trustee, so orders; 
‘‘(3) appear and be heard at the status conference under 
section 1188 of this title and any hearing that concerns— 
‘‘(A) the value of property subject to a lien; 
‘‘(B) confirmation of a plan filed under this subchapter; 
‘‘(C) modification of the plan after confirmation; or 
‘‘(D) the sale of property of the estate; 
‘‘(4) ensure that the debtor commences making timely pay-
ments required by a plan confirmed under this subchapter; 
‘‘(5) if the debtor ceases to be a debtor in possession, per-
form the duties specified in section 704(a)(8) and paragraphs 
(1), (2), and (6) of section 1106(a) of this title, including oper-
ating the business of the debtor; 
‘‘(6) if there is a claim for a domestic support obligation 
with respect to the debtor, perform the duties specified in 
section 704(c) of this title; and 
‘‘(7) facilitate the development of a consensual plan of 
reorganization. 
‘‘(c) TERMINATION OF TRUSTEE SERVICE.— 
‘‘(1) IN GENERAL.—If the plan of the debtor is confirmed 
under section 1191(a) of this title, the service of the trustee 
in the case shall terminate when the plan has been substan-
tially consummated, except that the United States trustee may 
reappoint a trustee as needed for performance of duties under 
subsection (b)(3)(C) of this section and section 1185(a) of this 
title. 
‘‘(2) SERVICE OF NOTICE OF SUBSTANTIAL CONSUMMATION.— 
Not later than 14 days after the plan of the debtor is substan-
tially consummated, the debtor shall file with the court and 
serve on the trustee, the United States trustee, and all parties 
in interest notice of such substantial consummation. 
‘‘§ 1184. Rights and powers of a debtor in possession 
‘‘Subject to such limitations or conditions as the court may 
prescribe, a debtor in possession shall have all the rights, other 
than the right to compensation under section 330 of this title, 
and powers, and shall perform all functions and duties, except 
the duties specified in paragraphs (2), (3), and (4) of section 1106(a) 
of this title, of a trustee serving in a case under this chapter, 
including operating the business of the debtor. 
‘‘§ 1185. Removal of debtor in possession 
‘‘(a) IN GENERAL.—On request of a party in interest, and after 
notice and a hearing, the court shall order that the debtor shall 
not be a debtor in possession for cause, including fraud, dishonesty, 
incompetence, or gross mismanagement of the affairs of the debtor, 
either before or after the date of commencement of the case, or 
for failure to perform the obligations of the debtor under a plan 
confirmed under this subchapter.
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‘‘(b) REINSTATEMENT.—On request of a party in interest, and 
after notice and a hearing, the court may reinstate the debtor 
in possession. 
‘‘§ 1186. Property of the estate 
‘‘(a) INCLUSIONS.—If a plan is confirmed under section 1191(b) 
of this title, property of the estate includes, in addition to the 
property specified in section 541 of this title— 
‘‘(1) all property of the kind specified in that section that 
the debtor acquires after the date of commencement of the 
case but before the case is closed, dismissed, or converted 
to a case under chapter 7, 12, or 13 of this title, whichever 
occurs first; and 
‘‘(2) earnings from services performed by the debtor after 
the date of commencement of the case but before the case 
is closed, dismissed, or converted to a case under chapter 7, 
12, or 13 of this title, whichever occurs first. 
‘‘(b) DEBTOR REMAINING IN POSSESSION.—Except as provided 
in section 1185 of this title, a plan confirmed under this subchapter, 
or an order confirming a plan under this subchapter, the debtor 
shall remain in possession of all property of the estate. 
‘‘§ 1187. Duties and reporting requirements of debtors 
‘‘(a) FILING REQUIREMENTS.—Upon electing to be a debtor under 
this subchapter, the debtor shall file the documents required by 
subparagraphs (A) and (B) of section 1116(1) of this title. 
‘‘(b) OTHER APPLICABLE PROVISIONS.—A debtor, in addition to 
the duties provided in this title and as otherwise required by 
law, shall comply with the requirements of section 308 and para-
graphs (2), (3), (4), (5), (6), and (7) of section 1116 of this title. 
‘‘(c) SEPARATE DISCLOSURE STATEMENT EXEMPTION.—If the 
court orders under section 1181(b) of this title that section 1125 
of this title applies, section 1125(f) of this title shall apply. 
‘‘§ 1188. Status conference 
‘‘(a) IN GENERAL.—Except as provided in subsection (b), not 
later than 60 days after the entry of the order for relief under 
this chapter, the court shall hold a status conference to further 
the expeditious and economical resolution of a case under this 
subchapter. 
‘‘(b) EXCEPTION.—The court may extend the period of time 
for holding a status conference under subsection (a) if the need 
for an extension is attributable to circumstances for which the 
debtor should not justly be held accountable. 
‘‘(c) REPORT.—Not later than 14 days before the date of the 
status conference under subsection (a), the debtor shall file with 
the court and serve on the trustee and all parties in interest 
a report that details the efforts the debtor has undertaken and 
will undertake to attain a consensual plan of reorganization. 
‘‘§ 1189. Filing of the plan 
‘‘(a) WHO MAY FILE A PLAN.—Only the debtor may file a plan 
under this subchapter. 
‘‘(b) DEADLINE.—The debtor shall file a plan not later than 
90 days after the order for relief under this chapter, except that 
the court may extend the period if the need for the extension
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is attributable to circumstances for which the debtor should not 
justly be held accountable. 
‘‘§ 1190. Contents of plan 
‘‘A plan filed under this subchapter— 
‘‘(1) shall include— 
‘‘(A) a brief history of the business operations of the 
debtor; 
‘‘(B) a liquidation analysis; and 
‘‘(C) projections with respect to the ability of the debtor 
to make payments under the proposed plan of reorganiza-
tion; 
‘‘(2) shall provide for the submission of all or such portion 
of the future earnings or other future income of the debtor 
to the supervision and control of the trustee as is necessary 
for the execution of the plan; and 
‘‘(3) notwithstanding section 1123(b)(5) of this title, may 
modify the rights of the holder of a claim secured only by 
a security interest in real property that is the principal resi-
dence of the debtor if the new value received in connection 
with the granting of the security interest was— 
‘‘(A) not used primarily to acquire the real property; 
and 
‘‘(B) used primarily in connection with the small busi-
ness of the debtor. 
‘‘§ 1191. Confirmation of plan 
‘‘(a) TERMS.—The court shall confirm a plan under this sub-
chapter only if all of the requirements of section 1129(a), other 
than paragraph (15) of that section, of this title are met. 
‘‘(b) EXCEPTION.—Notwithstanding section 510(a) of this title, 
if all of the applicable requirements of section 1129(a) of this 
title, other than paragraphs (8), (10), and (15) of that section, 
are met with respect to a plan, the court, on request of the debtor, 
shall confirm the plan notwithstanding the requirements of such 
paragraphs if the plan does not discriminate unfairly, and is fair 
and equitable, with respect to each class of claims or interests 
that is impaired under, and has not accepted, the plan. 
‘‘(c) RULE
OF CONSTRUCTION.—For purposes of this section, 
the condition that a plan be fair and equitable with respect to 
each class of claims or interests includes the following requirements: 
‘‘(1) With respect to a class of secured claims, the plan 
meets the requirements of section 1129(b)(2)(A) of this title. 
‘‘(2) As of the effective date of the plan— 
‘‘(A) the plan provides that all of the projected dispos-
able income of the debtor to be received in the 3-year 
period, or such longer period not to exceed 5 years as 
the court may fix, beginning on the date that the first 
payment is due under the plan will be applied to make 
payments under the plan; or 
‘‘(B) the value of the property to be distributed under 
the plan in the 3-year period, or such longer period not 
to exceed 5 years as the court may fix, beginning on the 
date on which the first distribution is due under the plan 
is not less than the projected disposable income of the 
debtor.
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‘‘(3)(A)(i) The debtor will be able to make all payments 
under the plan; or 
‘‘(ii) there is a reasonable likelihood that the debtor will 
be able to make all payments under the plan; and 
‘‘(B) the plan provides appropriate remedies, which may 
include the liquidation of nonexempt assets, to protect the 
holders of claims or interests in the event that the payments 
are not made. 
‘‘(d) DISPOSABLE INCOME.—For purposes of this section, the 
term ‘disposable income’ means the income that is received by 
the debtor and that is not reasonably necessary to be expended— 
‘‘(1) for— 
‘‘(A) the maintenance or support of the debtor or a 
dependent of the debtor; or 
‘‘(B) a domestic support obligation that first becomes 
payable after the date of the filing of the petition; or 
‘‘(2) for the payment of expenditures necessary for the 
continuation, preservation, or operation of the business of the 
debtor. 
‘‘(e) SPECIAL RULE.—Notwithstanding section 1129(a)(9)(A) of 
this title, a plan that provides for the payment through the plan 
of a claim of a kind specified in paragraph (2) or (3) of section 
507(a) of this title may be confirmed under subsection (b) of this 
section. 
‘‘§ 1192. Discharge 
‘‘If the plan of the debtor is confirmed under section 1191(b) 
of this title, as soon as practicable after completion by the debtor 
of all payments due within the first 3 years of the plan, or such 
longer period not to exceed 5 years as the court may fix, unless 
the court approves a written waiver of discharge executed by the 
debtor after the order for relief under this chapter, the court shall 
grant the debtor a discharge of all debts provided in section 
1141(d)(1)(A) of this title, and all other debts allowed under section 
503 of this title and provided for in the plan, except any debt— 
‘‘(1) on which the last payment is due after the first 3 
years of the plan, or such other time not to exceed 5 years 
fixed by the court; or 
‘‘(2) of the kind specified in section 523(a) of this title. 
‘‘§ 1193. Modification of plan 
‘‘(a) MODIFICATION BEFORE CONFIRMATION.—The debtor may 
modify a plan at any time before confirmation, but may not modify 
the plan so that the plan as modified fails to meet the requirements 
of sections 1122 and 1123 of this title, with the exception of sub-
section (a)(8) of such section 1123. After the modification is filed 
with the court, the plan as modified becomes the plan. 
‘‘(b) MODIFICATION AFTER CONFIRMATION.—If a plan has been 
confirmed under section 1191(a) of this title, the debtor may modify 
the plan at any time after confirmation of the plan and before 
substantial consummation of the plan, but may not modify the 
plan so that the plan as modified fails to meet the requirements 
of sections 1122 and 1123 of this title, with the exception of sub-
section (a)(8) of such section 1123. The plan, as modified under 
this subsection, becomes the plan only if circumstances warrant 
the modification and the court, after notice and a hearing, confirms 
the plan as modified under section 1191(a) of this title.
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‘‘(c) CERTAIN OTHER MODIFICATIONS.—If a plan has been con-
firmed under section 1191(b) of this title, the debtor may modify 
the plan at any time within 3 years, or such longer time not 
to exceed 5 years, as fixed by the court, but may not modify 
the plan so that the plan as modified fails to meet the requirements 
of section 1191(b) of this title. The plan as modified under this 
subsection becomes the plan only if circumstances warrant such 
modification and the court, after notice and a hearing, confirms 
such plan, as modified, under section 1191(b) of this title. 
‘‘(d) HOLDERS OF A CLAIM OR INTEREST.—If a plan has been 
confirmed under section 1191(a) of this title, any holder of a claim 
or interest that has accepted or rejected the plan is deemed to 
have accepted or rejected, as the case may be, the plan as modified, 
unless, within the time fixed by the court, such holder changes 
the previous acceptance or rejection of the holder. 
‘‘§ 1194. Payments 
‘‘(a) RETENTION AND DISTRIBUTION BY TRUSTEE.—Payments and 
funds received by the trustee shall be retained by the trustee 
until confirmation or denial of confirmation of a plan. If a plan 
is confirmed, the trustee shall distribute any such payment in 
accordance with the plan. If a plan is not confirmed, the trustee 
shall return any such payments to the debtor after deducting— 
‘‘(1) any unpaid claim allowed under section 503(b) of this 
title; 
‘‘(2) any payment made for the purpose of providing ade-
quate protection of an interest in property due to the holder 
of a secured claim; and 
‘‘(3) any fee owing to the trustee. 
‘‘(b) OTHER PLANS.—If a plan is confirmed under section 1191(b) 
of this title, except as otherwise provided in the plan or in the 
order confirming the plan, the trustee shall make payments to 
creditors under the plan. 
‘‘(c) PAYMENTS PRIOR TO CONFIRMATION.—Prior to confirmation 
of a plan, the court, after notice and a hearing, may authorize 
the trustee to make payments to the holder of a secured claim 
for the purpose of providing adequate protection of an interest 
in property. 
‘‘§ 1195. Transactions with professionals 
‘‘Notwithstanding section 327(a) of this title, a person is not 
disqualified for employment under section 327 of this title, by 
a debtor solely because that person holds a claim of less than 
$10,000 that arose prior to commencement of the case.’’. 
(b) CLERICAL AMENDMENT.—The table of subchapters at the 
beginning of chapter 11 of title 11, United States Code, is amended 
by adding at the end the following: 
‘‘SUBCHAPTER V—SMALL BUSINESS DEBTOR REORGANIZATION 
‘‘1181. Inapplicability of other sections. 
‘‘1182. Definitions. 
‘‘1183. Trustee. 
‘‘1184. Rights and powers of a debtor in possession. 
‘‘1185. Removal of debtor in possession. 
‘‘1186. Property of the estate. 
‘‘1187. Duties and reporting requirements of debtors. 
‘‘1188. Status conference. 
‘‘1189. Filing of the plan. 
‘‘1190. Contents of plan. 
‘‘1191. Confirmation of plan.
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‘‘1192. Discharge. 
‘‘1193. Modification of plan. 
‘‘1194. Payments. 
‘‘1195. Transactions with professionals.’’. 
SEC. 3. PREFERENCES; VENUE OF CERTAIN PROCEEDINGS. 
(a) PREFERENCES.—Section 547(b) of title 11, United States 
Code, is amended by inserting ‘‘, based on reasonable due diligence 
in the circumstances of the case and taking into account a party’s 
known or reasonably knowable affirmative defenses under sub-
section (c),’’ after ‘‘may’’. 
(b) VENUE OF CERTAIN PROCEEDINGS.—Section 1409(b) of title 
28, United States Code, is amended by striking ‘‘$10,000’’ and 
inserting ‘‘$25,000’’. 
SEC. 4. CONFORMING AMENDMENTS. 
(a) TITLE 11.—Title 11, United States Code, is amended— 
(1) in section 101— 
(A) in paragraph (51C), by inserting ‘‘and has not 
elected that subchapter V of chapter 11 of this title shall 
apply’’ after ‘‘is a small business debtor’’; and 
(B) in paragraph (51D)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘or operating real property or 
activities incidental thereto’’ and inserting ‘‘single 
asset real estate’’; and 
(II) by striking ‘‘for a case in which’’ and all 
that follows and inserting ‘‘not less than 50 percent 
of which arose from the commercial or business 
activities of the debtor; and’’; and 
(ii) in subparagraph (B)— 
(I) by striking the period at the end and 
inserting a semicolon; 
(II) by striking ‘‘does not include any member’’ 
and inserting the following: ‘‘does not include— 
‘‘(i) any member’’; and 
(III) by adding at the end the following: 
‘‘(ii) any debtor that is a corporation subject to 
the reporting requirements under section 13 or 15(d) 
of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 
78o(d)); or 
‘‘(iii) any corporation that— 
‘‘(I) is subject to the reporting requirements 
under section 13 or 15(d) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); 
and 
‘‘(II) is an affiliate of a debtor.’’; 
(2) in section 103— 
(A) by redesignating subsections (i) through (k) as sub-
sections (j) through (l), respectively; and 
(B) by inserting after subsection (h) the following: 
‘‘(i) Subchapter V of chapter 11 of this title applies only in 
a case under chapter 11 in which a small business debtor elects 
that subchapter V of chapter 11 shall apply.’’; 
(3) in section 322(a), by inserting ‘‘1183,’’ after ‘‘1163,’’; 
(4) in section 326— 
(A) in subsection (a), by inserting ‘‘, other than a case 
under subchapter V of chapter 11’’ after ‘‘7 or 11’’; and
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(B) in subsection (b), by inserting ‘‘subchapter V of 
chapter 11 or’’ after ‘‘In a case under’’; 
(5) in section 347— 
(A) in subsection (a)— 
(i) by inserting ‘‘1194,’’ after ‘‘726,’’; and 
(ii) by inserting ‘‘subchapter V of chapter 11,’’ after 
‘‘chapter 7,’’; and 
(B) in subsection (b), by inserting ‘‘1194,’’ after ‘‘1173,’’; 
(6) in section 363(c)(1), by inserting ‘‘1183, 1184,’’ after 
‘‘1108,’’; 
(7) in section 364(a), by inserting ‘‘1183, 1184,’’ after 
‘‘1108,’’; 
(8) in section 523(a), in the matter preceding paragraph 
(1), by inserting ‘‘1192’’ after ‘‘1141,’’; 
(9) in section 524— 
(A) in subsection (a)— 
(i) in paragraph (1), by inserting ‘‘1192,’’ after 
‘‘1141,’’; and 
(ii) in paragraph (3), by inserting ‘‘1192,’’ after 
‘‘523,’’; 
(B) in subsection (c)(1), by inserting ‘‘1192,’’ after 
‘‘1141,’’; and 
(C) in subsection (d), by inserting ‘‘1192,’’ after ‘‘1141,’’; 
(10) in section 557(d)(3), by inserting ‘‘1183,’’ after ‘‘1104,’’; 
(11) in section 1102(a), by striking paragraph (3) and 
inserting the following: 
‘‘(3) Unless the court for cause orders otherwise, a com-
mittee of creditors may not be appointed in a small business 
case or a case under subchapter V of this chapter.’’; and 
(12) in section 1146(a), by inserting ‘‘or 1191’’ after ‘‘1129’’. 
(b) TITLE 28.—Title 28 United States Code, is amended— 
(1) in section 586— 
(A) in subsection (a)(3), by inserting ‘‘(including sub-
chapter V of chapter 11)’’ after ‘‘7, 11’’; 
(B) in subsection (b), by inserting ‘‘subchapter V of 
chapter 11 or’’ after ‘‘cases under’’ the first place it appears; 
(C) in subsection (d)(1), by inserting ‘‘subchapter V 
of chapter 11 or’’ after ‘‘cases under’’ each place that term 
appears; and 
(D) in subsection (e)— 
(i) in paragraph (1), by inserting ‘‘subchapter V 
of chapter 11 or’’ after ‘‘cases under’’; 
(ii) in paragraph (2), by inserting ‘‘subchapter V 
of chapter 11 or’’ after ‘‘cases under’’ each place that 
term appears; and 
(iii) by adding at the end the following: 
‘‘(5) In the event that the services of the trustee in a case 
under subchapter V of chapter 11 of title 11 are terminated by 
dismissal or conversion of the case, or upon substantial consumma-
tion of a plan under section 1183(c)(1) of that title, the court 
shall award compensation to the trustee consistent with services 
performed by the trustee and the limits on the compensation of 
the trustee established pursuant to paragraph (1) of this sub-
section.’’; 
(2) in section 589b— 
(A) in subsection (a)(1), by inserting ‘‘subchapter V 
of chapter 11 and’’ after ‘‘cases under’’; and
H. R. 3311—9 
(B) in subsection (d)— 
(i) in the matter preceding paragraph (1), by 
inserting ‘‘subchapter V of chapter 11 and’’ after 
‘‘trustees under’’; and 
(ii) in the undesignated matter following para-
graph (8), by inserting ‘‘subchapter V of chapter 11 
and’’ after ‘‘cases under’’; and 
(3) in section 1930(a)(6)(A), by inserting ‘‘, other than under 
subchapter V,’’ after ‘‘chapter 11 of title 11’’. 
SEC. 5. EFFECTIVE DATE. 
This Act and the amendments made by this Act shall take 
effect 180 days after the date of enactment of this Act. 
SEC. 6. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined 
by reference to the latest statement titled ‘‘Budgetary Effects of 
PAYGO Legislation’’ for this Act, submitted for printing in the 
Congressional Record by the Chairman of the House Budget Com-
mittee, provided that such statement has been submitted prior 
to the vote on passage. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.