CANB — General Order 37: (Third Amended)

Source: https://www.canb.uscourts.gov/sites/default/files/general-orders/3rdAmendedGeneralOrder37Signed.pdf

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2 UNITED STATES BANKRUPTCY COURT 3 NORTHERN DISTRICT OF CALIFORNIA

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5 In re ADOPTION OF INTERIM BANKRUPTCY THIRD AMENDED GENERAL 6 RULE 1020, NOTICE OF AMENDED ORDER 37 OFFICIAL FORMS, ABROGATION OF 7 SECOND AMENDED GENERAL ORDER 37 8

9 When implemented, SubChapter V of Chapter 11 of the Bankruptcy Code was limited to small business debtors (as defined in Bankruptcy Code section 1182) whose aggregate,10 noncontingent, liquidated, secured and unsecured debts were not greater than $2,725,625. The11 passage of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) in 2020 12 increased this debt ceiling to $7,500,000, but this debt ceiling increase expired under the terms of 13 the CARES Act on March 27, 2022. The court issued General Order 37 in response to the 14 implementation of SubChapter V, amended General Order 37 in response to the CARES Act debt 15 ceiling increase, and issued a Second Amended General Order 37 in response to the expiration of 16 the increased debt ceiling.

17 On June 21, 2022, the Bankruptcy Threshold Adjustment and Technical Corrections Act 18 (the “BTATC Act”) became effective. The BTATC Act reinstates the $7,500,000 debt ceiling in 19 SubChapter V cases retroactive to March 27, 2022.1 This change requires this court to again

20 amend General Order 37.

21 NOW THEREFORE, pursuant to 28 U.S.C. § 2071, Rule 83 of the Federal Rules of 22 Civil Procedure, and Rule 9029 of the Federal Rules of Bankruptcy Procedure, the court

23 ORDERS as follows:

24 1) Second Amended General Order 37 is hereby abrogated;

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28 1 Unless extended, these BTATC Act changes expire on June 21, 2024.

THIRD AMENDED GENERAL ORDER 37 - ADOPTION OF INTERIM BANKRUPTCY RULE, NOTICE OF AMENDED OFFICIAL FORMS; ABROGATION OF SECOND AMENDED GENERAL ORDER 37

2. Interim Rule 1020. Chapter 11 Reorganization Case for Small Business Debtors or 1 Debtors Under Subchapter V (a copy is attached) is adopted in its entirety without

2 change by the judges of this court, effective as of the date of this order; 3 3) Notice is hereby given that the Judicial Conference of the United States has approved 4 temporary changes to Official Form 101 (Voluntary Petition for Individuals Filing for 5 Bankruptcy) and Official Form 201 (Voluntary Petition for Non-Individuals Filing for 6 2 Bankruptcy); and 7 4) General Order 37 shall remain effective. 8

9 IT IS SO ORDERED. Dated: July 28, 202210

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12 Charles Novack Chief Bankruptcy Judge13

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27 2 Copies of Official Forms can be found at https://www.uscourts.gov/forms/bankruptcy-forms. The Committee Notes28 to the Official Forms explain the relevant changes.

THIRD AMENDED GENERAL ORDER 37 - ADOPTION OF INTERIM BANKRUPTCY RULE, NOTICE OF AMENDED OFFICIAL FORMS; ABROGATION OF SECOND AMENDED GENERAL ORDER 37

1 Interim Rule 1020. Chapter 11 Reorganization Case for

2 Small 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 Bankruptcy Threshold Adjustment and Technical Correction Act (the “BTATC Act”), Pub. L. No. 117-151, ___ Stat. ____. The BTATC reinstates the definition of “debtor” for determining eligibility to proceed under subchapter V of chapter 11 that was in effect from March 27, 2020 through March 27, 2022, under the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281, as amended. Subdivision (a) of the rule is amended to reflect that change. This Interim Rule will terminate two years after the date of enactment of the BTATC, unless the Act is extended.