The U.S. House of Representatives yesterday passed the Small Business Reorganization Act of 2019 (H.R. 3311) and the HAVEN Act (H.R. 2938) by a voice vote. ABI testified in support of both bills, which have bipartisan companion bills pending in the Senate. The Small Business Reorganization Act of 2019 (SBRA), introduced by Reps. Ben Cline (R-Va.), David Cicilline (D-R.I.), Doug Collins (R-Ga.) and Steve Cohen (D-Tenn.), is inspired by the work of the National Bankruptcy Conference and ABI’s Commission to Study the Reform of Chapter 11. The SBRA would add a new subchapter V to chapter 11 to address these problems, leading to more successful restructurings, reduced liquidations, saved jobs and increased recoveries to creditors. It adopts the current definition of a “small business debtor” as a person in commercial or business activity with an aggregate or noncontingent liquidated secured and unsecured debts as of its bankruptcy filing date of not more than $2,725,625. The Honoring American Veterans in Extreme Need Act of 2019 (HAVEN Act) (H.R. 2938) was introduced in the House by Reps. Lucy McBath (D-Ga.) and Greg Steube (R-Fla.) and would exclude VA and DoD disability payments from the monthly income calculation used for bankruptcy means testing. The bill was included in the National Defense Authorization Act, which passed on June 27.
