Source: https://www.jdsupra.com/legalnews/the-new-small-business-reorganization-20197/
Timestamp: 2020-07-16 13:58:23
Document Index: 188339388

Matched Legal Cases: ['§ 1102', '§ 1183', '§ 1191', '§ 1191', '§1190', '§ 1191']

The New Small Business Reorganization Act Comes with New Forms and Rules | Sands Anderson PC - JDSupra
Elimination, for the most part, of a creditor’s committee in all small business cases including those that proceed under subchapter V; 11 U.S.C § 1102
Appointment of a standing subchapter V trustee to facilitate a consensual plan, oppose discharge of the debtor, object to claims and even make adequate protection payments to secured creditors prior to confirmation of a plan. 11 U.S.C. § 1183
No Absolute Priority Rule – 11 U.S.C. § 1191(b) permits cramdown confirmation if the plan does not discriminate unfairly and if it is “fair and equitable with respect to” each impaired, nonaccepting class. In a regular chapter 11 case, plan confirmation cannot be achieved over the objection of a creditor if the debtor is retaining equity unless the plan pays creditors in full. The “fair and equitable” requirement in subchapter V does not include the absolute priority rule. However, creditors can insist that the debtor make three to five years of best-efforts plan payments giving them negotiating leverage for a favorable subchapter V plan treatment. 11 U.S.C. § 1191(b).
Allows modification of a non-purchase money security interest or mortgage in a residence used in connection with a Debtor’s business. 11 U.S.C. §1190(3).
Administrative expenses can be paid over the life of a plan (as opposed to the requirement that such claims be paid on the effective date of the plan). 11 U.S.C. §§ 1191(e) & 1194.