CASB — General Order 196

Source: https://www.casb.uscourts.gov/sites/casb/files/documents/general-orders/General%20Order%20196%20WEB_0.pdf

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF CALIFORNIA

In re: ) Filed: May 1, 2020 ) ADOPTION OF TEMPORARY ) BANKRUPTCY GENERAL AMENDMENT TO INTERIM ) ORDER NO. 196 BANKRUPTCY RULE 1020 ) CORRESPONDING TO THE ) CORONAVIRUS AID, RELIEF, ) AND ECONOMIC SECURITY ACT ) _____________________________________ )

On January 28, 2020, the Court adopted the Interim Amendments to the Federal Rules of

Bankruptcy Procedure to implement the changes mandated by the Small Business Reorganization Act of 2019. The Interim Amendments included modifications to Rule 1020 of the Federal Rules of Bankruptcy Procedure. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law, and section 1113 of that legislation made several temporary changes to the Bankruptcy Code to provide financial assistance during the coronavirus crisis. Further amendments to Interim Rule 1020 are now required to account for the CARES Act.

IT IS ORDERED that, pursuant to 28 U.S.C. § 2071, Rule 83 of the Federal Rules of

Civil Procedure, and Rule 9029 of the Federal Rules of Bankruptcy Procedure, the attached amendment to Interim Rule 1020 (“Amended Interim Rule 1020”) is adopted in its entirety without modification by the Judges of this Court to be effective as of the date of this Order;

IT IS FURTHER ORDERED that Amended Interim Rule 1020 will remain in effect

while the legislation remains effective, or until further order of this Court.

DATED: ______________________May 1, 2020

s/Margaret M. Mann s/Louise DeCarl Adler

MARGARET M. MANN LOUISE DeCARL ADLER Chief Judge, U.S. Bankruptcy Court Judge, U.S. Bankruptcy Court

s/Laura S. Taylor s/Christopher B. Latham

LAURA S. TAYLOR CHRISTOPHER B. LATHAM Judge, U.S. Bankruptcy Court Judge, U.S. Bankruptcy Court

General Order No. 196

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.

4 INTERIM RULES OF BANKRUPTCY PROCEDURE

Rule 1020. Chapter 11 Reorganization Case for Small

Business Debtors or Debtors Under Subchapter V

(a) DEBTOR DESIGNATION. In a voluntary

chapter 11 case, the debtor shall state in the petition whether

the debtor is a small business debtor or a debtor as defined

in § 1182(1) of the Code and, if the latter, whether the debtor

elects to have subchapter V of chapter 11 apply. In an

involuntary chapter 11 case, the debtor shall file within 14

days after entry of the order for relief a statement as to

whether the debtor is a small business debtor or a debtor as

defined in § 1182(1) of the Code and, if the latter, whether

the debtor elects to have subchapter V of chapter 11 apply.

The status of the case as a small business case or a case under

subchapter V of chapter 11 shall be in accordance with the

debtor’s statement under this subdivision, unless and until

the court enters an order finding that the debtor’s statement

is incorrect.

INTERIM RULES OF BANKRUPTCY PROCEDURE 5

(b) OBJECTING TO DESIGNATION. The United

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

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

days after the conclusion of the meeting of creditors held

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

amendment to the statement, whichever is later.

(c) PROCEDURE FOR OBJECTION OR

DETERMINATION. Any objection or request for a

determination under this rule shall be governed by Rule 9014

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

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

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

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

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