CANB — General Order 37: (Amended) Adoption of Interim Bankruptcy Rules

Source: https://www.canb.uscourts.gov/sites/default/files/general-orders/AmendedGeneralOrder37.pdf

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7 UNITED STATES BANKRUPTCY COURT

8 NORTHERN DISTRICT OF CALIFORNIA

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In re:
10 AMENDED GENERAL ORDER 37
ADOPTION OF INTERIM BANKRUPTCY
11 RULES AND NOTICE OF AMENDED
OFFICIAL FORMS
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In General Order 37 (issued January 30, 2020), the court adopted Interim Federal Rules ofCOURT 13 California 14 Bankruptcy Procedure pertaining to the Small Business Reorganization Act of 2019 (the “SBRA”).

Of 15 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”)

16 became effective. The CARES Act temporarily changes the definition of “debtor” set forth in DistrictBANKRUPTCY 17 Bankruptcy Code § 1182(1) to include small business debtors with aggregate noncontingent

18 liquidated secured and unsecured debts as of the date of the filing of the petition or the date of the NorthernSTATES 19 order for relief of not more than $7,500,000.1 This change required a conforming temporary The
20 amendment to Interim Bankruptcy Rule 1020, as well as temporary amendments to several Official ForUNITED 21 Forms.

22 A copy of Amended Interim Bankruptcy Rule 1020 is attached to this Amended General

23 Order. The Judicial Conference of the United States has authorized distribution of this material for

24 adoption locally and to facilitate uniform implementation of the SBRA and of the CARES Act.

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1 The CARES Act also amended the definition of “current monthly income” in Bankruptcy
26 Code § 101(10A) and the definition of “disposable income” in Bankruptcy Code § 1325(b)(2) to
exclude certain payments made pursuant to the CARES Act. The CARES Act-related amendments 27
to the Bankruptcy Code and the related changes to Official Forms will terminate one year after the
28 enactment of the CARES Act.

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AMENDED GENERAL ORDER 37

1 NOW THEREFORE, pursuant to 28 U.S.C. § 2071, Rule 83 of the Federal Rules of Civil

2 Procedure, and Bankruptcy Rule 9029, the court ORDERS as follows:

3 1. The attached Amended Interim Bankruptcy Rule 1020 is adopted in its entirety without

4 change by the judges of this court, effective as of the date of this order.

5 2. The adoption of Amended Interim Bankruptcy Rule 1020 constitutes the only change to

6 General Order 37 made by this Amended General Order. In all other respects, General Order

7 37 shall remain effective.

8 3. Notice is hereby given that the Advisory Committee on Bankruptcy Rules of the Judicial

9 Conference of the United States has approved temporary changes to Official Forms 101,

10 122A-1, 122B, 122C-1, and 201 to conform to CARES Act-related changes to the

11 Bankruptcy Code.2

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COURT 13 SO ORDERED this 18th day of May 2020. California 14 _________________________________ Of Charles Novack 15 Chief Bankruptcy Judge

16 District * * END OF ORDER * *BANKRUPTCY 17

18 NorthernSTATES 19 The

For 20UNITED 21

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2 Copies of Official Forms can be found at https://www.uscourts.gov/forms/bankruptcy-
28 forms. The Committee Notes to the Official Forms explain the relevant changes.

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AMENDED GENERAL ORDER 37

Attachment

1 Rule 1020. Chapter 11 Reorganization Case for Small

2 Business Debtors or Debtors Under Subchapter V

3 (a) SMALL BUSINESS DEBTOR

4 DESIGNATION. In a voluntary chapter 11 case, the debtor

5 shall state in the petition whether the debtor is a small

6 business debtor or a debtor as defined in § 1182(1) of the

7 Code and, if the latter so, whether the debtor elects to have

8 subchapter V of chapter 11 apply. In an involuntary chapter

9 11 case, the debtor shall file within 14 days after entry of the

10 order for relief a statement as to whether the debtor is a small

11 business debtor or a debtor as defined in § 1182(1) of the

12 Code and, if the latter so, whether the debtor elects to have

13 subchapter V of chapter 11 apply. The status of the case as

14 a small business case or a case under subchapter V of chapter

15 11 shall be in accordance with the debtor’s statement under

16 this subdivision, unless and until the court enters an order

17 finding that the debtor’s statement is incorrect.

18 (b) OBJECTING TO DESIGNATION. The United

19 States trustee or a party in interest may file an objection to

20 the debtor’s statement under subdivision (a) no later than 30

21 days after the conclusion of the meeting of creditors held

22 under § 341(a) of the Code, or within 30 days after any

23 amendment to the statement, whichever is later.

24 (c) PROCEDURE FOR OBJECTION OR

25 DETERMINATION. Any objection or request for a

26 determination under this rule shall be governed by Rule 9014

27 and served on: the debtor; the debtor’s attorney; the United

28 States trustee; the trustee; the creditors included on the list

29 filed under Rule 1007(d) or, if a committee has been

30 appointed under § 1102(a)(3), the committee or its

31 authorized agent; and any other entity as the court directs.

Committee Note

The interim rule is amended in response to the

enactment of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), Pub. L. No. 116-136, 134 Stat. 281. That law provides a new definition of “debtor” for determining eligibility to proceed under subchapter V of chapter 11. Subdivision (a) of the rule is amended to reflect that change. This amendment to the Code will terminate one year after the date of enactment of the CARES Act.