04 Mar Debtor successfully applies new small business bankruptcy act retroactively
The American Bankruptcy Institute in a featured post titled “Judge Kahn Finds No Constitution Infirmities in Applying the SBRA Retroactively” wrote about the bankruptcy court’s decision affirming our client’s ability to redesignate their already filed case to one under new Subchapter V of the Bankruptcy Code. Bill Rochelle wrote:
Because the SBRA’s foundation is chapter 11, the new statute may be applied constitutionally to rights or property interests arising before enactment.
Bankruptcy Judge Benjamin A. Kahn of Greensboro, N.C., ruled that the redesignation of a typical small business case under newly enacted subchapter V of chapter 11 does not impair a creditor’s constitutional rights.
Judge Kahn also found no constitutional prohibition in applying subchapter V to contracts and property rights in place before the enactment of the Small Business Reorganization Act of 2019, or SBRA.
A copy of Judge Kahn’s opinion is here: