IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA
NOTICE
On May 11, 2020, pursuant to 28 U.S.C. § 2071(e), the judges of the United
States District Court for the Eastern District of Pennsylvania having determined that
there is an immediate need to amend the local bankruptcy rules to implement the
procedural and substantive changes to the Bankruptcy Code made by the
Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) approved a
Resolution amending the Local Bankruptcy Rules. The amended Local Bankruptcy
Rules are available on the Eastern District of Pennsylvania’s website:
www. paed.uscourts.gov.
The amended local bankruptcy rules reflect Section 1113 of the CARES Act
which made several temporary changes to the Bankruptcy Code to provide financial
assistance during the coronavirus crisis. These changes necessitate a
corresponding amendment to Interim Bankruptcy Rule 1020. Interim Rule 1020
was adopted in February 2020 to implement the Small Business Reorganization Act.
The bankruptcy provisions of the CARES Act are of limited duration, but require
additional amendments to Interim Rule 1020, as well as to several Official
Bankruptcy Forms. The five bankruptcy forms are Official Forms 101, 122A-1, 122B,
122C-1 and 201. The adoption of this amendment to Local Rule 1020, Local Rule
1020-1, is for one year and is needed to maintain national uniformity in the
administration of the Bankruptcy Code.
The adoption of these amendments does not change the conformance of the
Local Rules of Bankruptcy Procedures and the Local Bankruptcy Forms with the
Federal Rules of Bankruptcy Procedures. Accordingly, an Order of the Court was
entered on May 19th, 2020 making these amendments effective May 19th, 2020
with a period to follow of forty-five (45) days for purposes of Notice to the Bar and
Public and Solicitation of Comment pursuant to 28 U.S.C. § 2071(e).
Those wishing to offer comments on these amendments may do so by
submitting said comments to the attention of Kate Barkman, Clerk of Court, United
States Courthouse, 601 Market St., Room 2609, Philadelphia, PA, 19106, before the
close of business on Monday, July 6, 2020 by emailing
[email protected]. Copies of the amended Local Bankruptcy
Rules may be obtained by submitting a request at the address listed above or at
the court's website, www.paed.uscourts.gov.
Juan R. Sánchez
Chief Judge
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA
IN RE: LOCAL RULES OF BANKRUPTCY PROCEDURE
ORDER
AND NOW, this 19th day of May, 2020, it appearing that this Court is vested with authority,
pursuant to 28 U.S.C. §§ 2071(e), 2077, and Fed. R. Bankr. P. 9029 ;
AND, in accordance with the resolution of the Judges of the Court on May 11, 2020, the
court having determined that there is a need to amend Rule 1020 of the Local Rules of Bankruptcy
Procedure, including Forms, effective immediately to conform with the Coronavirus Aid, Relief,
and Economic Security Act (“the CARES Act”) which modifies the definition of “debtor” for
determining eligibility to proceed under subchapter V of chapter 11 of the Bankruptcy Code;
AND, the amendments to Rule 1020 and forms are based on the recommendations of the
Advisory Committee on Bankruptcy Rules which has been approved by the Committee on Rules
of Practice and Procedure and by the Executive Committee acting on an expedited basis on behalf
of the Judicial Conference to amend Rules 1020 as soon as possible for a one year period, it is
hereby
ORDERED that amendments to the Local Bankruptcy Rule 1020, as Local Rule
1020-1, and Forms, as set forth on the attachments to this Order, are approved and adopted by
the court, effective May 19, 2020, with a period to follow of forty-five (45) days afforded for
purposes of Notice to the Bar and Public and Solicitation of Comment pursuant to 28 U.S.C. §
2071(e).
It is FURTHER ORDERED that the Clerk of Court transmit a copy of the amendments to the
Local Bankruptcy Rules, as approved and adopted by the Court, to the Director of the
Administrative Office of the United States Courts and the Judicial Council of the Third Circuit
Court of Appeals and make said Rules and Forms available to the bar and public.
FOR THE COURT:
/s/ Juan R. Sánchez
Juan R. Sánchez, Chief Judge
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.
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.
