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Bankruptcy Law Commons

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Pepperdine University

2024

Bankruptcy Code

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Full-Text Articles in Bankruptcy Law

Applicability Of Discharge Exceptions To Corporate Debtors In Subchapter V: A “Death Blow” To Rescuing Small Businesses, Robert J. Landry Iii Jun 2024

Applicability Of Discharge Exceptions To Corporate Debtors In Subchapter V: A “Death Blow” To Rescuing Small Businesses, Robert J. Landry Iii

The Journal of Business, Entrepreneurship & the Law

On August 23, 2019, the Small Business Reorganization Act of 2019 (SBRA) was signed into law, adding a new subchapter to Chapter 11 for small business debtors, i.e. “Subchapter V”. The underlying driver for SBRA was a concern that while most Chapters 11 cases are small business debtors, most small business debtors face difficulty successfully reorganizing under Chapter 11. SBRA is intended to streamline Chapter 11 reorganization for small business debtors by making the process quicker and cheaper. However, SBRA arguably curtailed the scope of discharge when a plan is confirmed without the consent of the creditors for corporate small …