Improving Accessibility to the Protection Offered by Bankruptcy
President Donald Trump signed three bills on Friday, August 25, 2019 that are designed to assist veterans, small business and family farmers during and after bankruptcy proceedings. When the bills passed in the U.S. Senate, ABI Executive Director Samuel J. Gerdano summed up the bills as a modernization of the Bankruptcy Code.
“The three bills modernize the Bankruptcy Code to ensure that struggling veterans, Main Street businesses and family farmers have access to better tools for achieving a financial fresh start.”
Samuel J. Gerdano, Executive Director American Bankruptcy Institute
Small Business Reorganization Act of 2019 (SBRA)
The SBRA adds a new subchapter V to chapter 11 that provides an expedited path for small businesses (defined as businesses owing less than $2,000,000 in total debts) to successfully restructure, reduce liquidations, and increase recoveries to creditors. Financially troubled small businesses can emerge from bankruptcy within months following a court-approved plan of reorganization.
Honoring American Veterans in Extreme Need Act of 2019 (HAVEN Act)
The HAVEN Act excludes Veteran Administration and Department of Defense disability payments from the monthly income calculation used for bankruptcy means testing. This will enable veterans and their dependent survivors easier access to the protection from creditors available under the bankruptcy code.
Family Farmer Relief Act of 2019
The Family Farmer Relief Act of 2019 updates chapter 12 of the U.S. Bankruptcy Code to reflect the economic challenges facing distressed farmers. This chapter of the U.S. Bankruptcy Code provides reorganization relief to family farmers and fishermen. The new act reinforces this specialized area of bankruptcy law with added protections for dealing with cyclical economic challenges faced in American agriculture exacerbated by fluctuating land values, swings in commodity prices, weather calamities and adverse trade policies made by government.
These new additions to the U.S. Bankruptcy Code deal with specialized areas of bankruptcy law. A bankruptcy attorney can help you understand how these acts are intended to assist individuals in these targeted groups. Call attorney Chris Bush, at (619) 678-1134, for more information. He is an experienced bankruptcy attorney and consumer debt advocate. He’ll help you find the best solution to your debt burden and get back you on a track to financial freedom.