,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #ccaa  ,,in ,,the ,,house ,,of  
,,representatives  ,june #ah1 #bjai ,mr4
 ,cline 7for himself1 ,mr4 ,cicilline1  
,mr4 ,collins of ,georgia1 and ,mr4     
,cohen7 introduced the following bill2  
which was referred to the ,committee on 
the ,judiciary  ,a ,,bill  ,to amend    
chapter #aa of title #aa1 ,united       
,states ,code1 to address reorganization
 of small businesses1 and for other     
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,small ,business    
,reorganization ,act of #bjai4  #b4     
,reorganization of small business       
debtors  7a7 ,in general ,chapter #aa of
 title #aa1 ,united ,states ,code1 is   
amended by adding at the end the        
following3  ,v ,small business debtor   
reorganization  #aaha4 ,inapplicability 
of other sections  7a7 ,in general      
,sections #aje7;d71 #aaja7a71 #aajd1    
#aaje1 #aajf1 #aajg1 #aajh1 #aaae1      
#aaaf1 #aaba1 #aabc7;a77#h71 #aabc7;c71 
#aabg1 #aabi7;a77#ae71 #aabi7;b71       

#aabi7;c71 #aabi7;e71 and #aada7;d77#e7 
of this title do not apply in a case    
under this subchapter4  7b7 ,court      
authority ,unless the court for cause   
orders otherwise1 paragraphs 7#a71 7#b71
 and 7#d7 of section #aajb7;a7 and      
sections #aajb7;b71 #aajc1 and #aabe of 
this title do not apply in a case under 
this subchapter4  7c7 ,special rule for 
discharge ,if a plan is confirmed under 
section #aaia7;b7 of this title1 section
 #aada7;d7 of this title shall not      
apply1 except as provided in section    
#aaib of this title4  #aahb4            
,definitions ,in this subchapter3  7#a7 
,debtor ,the term debtor means a small  
business debtor4  7#b7 ,debtor in       
possession ,the term debtor in          
possession means the debtor1 unless     
removed as debtor in possession under   
section #aahe7;a7 of this title4  #aahc4
 ,trustee  7a7 ,in general ,if the      
,united ,states trustee has appointed an
 individual under section #ehf7;b7 of   
title #bh to serve as standing trustee  

in cases under this subchapter1 and if  
such individual qualifies as a trustee  
under section #cbb of this title1 then  
that individual shall serve as trustee  
in any case under this subchapter4      
,otherwise1 the ,united ,states trustee 
shall appoint #a disinterested person to
 serve as trustee in the case or the    
,united ,states trustee may serve as    
trustee in the case1 as necessary4  7b7 
,duties ,the trustee shall--  7#a7      
perform the duties specified in         
paragraphs 7#b71 7#e71 7#f71 7#g71 and  
7#i7 of section #gjd7;a7 of this title2 
7#b7 perform the duties specified in    
paragraphs 7#c71 7#d71 and 7#g7 of      
section #aajf7;a7 of this title1 if the 
court1 for cause and on request of a    
party in interest1 the trustee1 or the  
,united ,states trustee1 so orders2     
7#c7 appear and be heard at the status  
conference under section #aahh of this  
title and any hearing that concerns--   
7,a7 the value of property subject to a 
lien2  7,b7 confirmation of a plan filed

 under this subchapter2  7,c7           
modification of the plan after          
confirmation2 or  7,d7 the sale of      
property of the estate2  7#d7 ensure    
that the debtor commences making timely 
payments required by a plan confirmed   
under this subchapter2  7#e7 if the     
debtor ceases to be a debtor in         
possession1 perform the duties specified
 in section #gjd7;a77#h7 and paragraphs 
7#a71 7#b71 and 7#f7 of section         
#aajf7;a7 of this title1 including      
operating the business of the debtor2   
7#f7 if there is a claim for a domestic 
support obligation with respect to the  
debtor1 perform the duties specified in 
section #gjd7;c7 of this title2 and     
7#g7 facilitate the development of a    
consensual plan of reorganization4  7c7 
,termination of trustee service  7#a7   
,in general ,if the plan of the debtor  
is confirmed under section #aaia7;a7 of 
this title1 the service of the trustee  
in the case shall terminate when the    
plan has been substantially consummated1

 except that the ,united ,states trustee
 may reappoint a trustee as needed for  
performance of duties under subsection  
7b77#c77;,c7 of this section and section
 #aahe7;a7 of this title4  7#b7 ,service
 of notice of substantial consummation  
,not later than #ad days after the plan 
of the debtor is substantially          
consummated1 the debtor shall file with 
the court and serve on the trustee1 the 
,united ,states trustee1 and all parties
 in interest notice of such substantial 
consummation4  #aahd4 ,rights and powers
 of a debtor in possession ,subject to  
such limitations or conditions as the   
court may prescribe1 a debtor in        
possession shall have all the rights1   
other than the right to compensation    
under section #ccj of this title1 and   
powers1 and shall perform all functions 
and duties1 except the duties specified 
in paragraphs 7#b71 7#c71 and 7#d7 of   
section #aajf7;a7 of this title1 of a   
trustee serving in a case under this    
chapter1 including operating the        

business of the debtor4  #aahe4 ,removal
 of debtor in possession  7a7 ,in       
general ,on request of a party in       
interest1 and after notice and a        
hearing1 the court shall order that the 
debtor shall not be a debtor in         
possession for cause1 including fraud1  
dishonesty1 incompetence1 or gross      
mismanagement of the affairs of the     
debtor1 either before or after the date 
of commencement of the case1 or for     
failure to perform the obligations of   
the debtor under a plan confirmed under 
this subchapter4  7b7 ,reinstatement ,on
 request of a party in interest1 and    
after notice and a hearing1 the court   
may reinstate the debtor in possession4 
#aahf4 ,property of the estate  7a7     
,inclusions ,if a plan is confirmed     
under section #aaia7;b7 of this title1  
property of the estate includes1 in     
addition to the property specified in   
section #eda of this title-- 7#a7 all   
property of the kind specified in that  
section that the debtor acquires after  

the date of commencement of the case but
 before the case is closed1 dismissed1  
or converted to a case under chapter #g1
 #ab1 or #ac of this title1 whichever   
occurs first2 and  7#b7 earnings from   
services performed by the debtor after  
the date of commencement of the case but
 before the case is closed1 dismissed1  
or converted to a case under chapter #g1
 #ab1 or #ac of this title1 whichever   
occurs first4  7b7 ,debtor remaining in 
possession ,except as provided in       
section #aahe of this title1 a plan     
confirmed under this subchapter1 or an  
order confirming a plan under this      
subchapter1 the debtor shall remain in  
possession of all property of the       
estate4  #aahg4 ,duties and reporting   
requirements of debtors  7a7 ,filing    
requirements ,upon electing to be a     
debtor under this subchapter1 the debtor
 shall file the documents required by   
subparagraphs 7,a7 and 7,b7 of section  
#aaaf7a7 of this title4  7b7 ,other     
applicable provisions ,a debtor1 in     

addition to the duties provided in this 
title and as otherwise required by law1 
shall comply with the requirements of   
section #cjh and paragraphs 7#b71 7#c71 
7#d71 7#e71 7#f71 and 7#g7 of section   
#aaaf of this title4  7c7 ,separate     
disclosure statement exemption ,if the  
court orders under section #aaha7;b7 of 
this title that section #aabe of this   
title applies1 section #aabe7;f7 of this
 title shall apply4  #aahh4 ,status     
conference  7a7 ,in general ,except as  
provided in subsection 7b71 not later   
than #fj days after the entry of the    
order for relief under this chapter1 the
 court shall hold a status conference to
 further the expeditious and economical 
resolution of a case under this         
subchapter4  7b7 ,exception ,the court  
may extend the period of time for       
holding a status conference under       
subsection 7a7 if the need for an       
extension is attributable to            
circumstances for which the debtor      
should not justly be held accountable4  

7c7 ,report ,not later than #ad days    
before the date of the status conference
 under subsection 7a71 the debtor shall 
file with the court and serve on the    
trustee and all parties in interest a   
report that details the efforts the     
debtor has undertaken and will undertake
 to attain a consensual plan of         
reorganization4  #aahi4 ,filing of the  
plan  7a7 ,who may file a plan ,only the
 debtor may file a plan under this      
subchapter4  7b7 ,deadline ,the debtor  
shall file a plan not later than #ij    
days after the order for relief under   
this chapter1 except that the court may 
extend the period if the need for the   
extension is attributable to            
circumstances for which the debtor      
should not justly be held accountable4  
#aaij4 ,contents of plan ,a plan filed  
under this subchapter-- 7#a7 shall      
include--  7,a7 a brief history of the  
business operations of the debtor2  7,b7
 a liquidation analysis2 and  7,c7      
projections with respect to the ability 

of the debtor to make payments under the
 proposed plan of reorganization2  7#b7 
shall provide for the submission of all 
or such portion of the future earnings  
or other future income of the debtor to 
the supervision and control of the      
trustee as is necessary for the         
execution of the plan2 and  7#c7        
notwithstanding section #aabc7;b77#e7 of
 this title1 may modify the rights of   
the holder of a claim secured only by a 
security interest in real property that 
is the principal residence of the debtor
 if the new value received in connection
 with the granting of the security      
interest was-- 7,a7 not used primarily  
to acquire the real property2 and  7,b7 
used primarily in connection with the   
small business of the debtor4  #aaia4   
,confirmation of plan  7a7 ,terms ,the  
court shall confirm a plan under this   
subchapter only if all of the           
requirements of section #aabi7;a71 other
 than paragraph 7#ae7 of that section1  
of this title are met4  7b7 ,exception  

,notwithstanding section #eaj7;a7 of    
this title1 if all of the applicable    
requirements of section #aabi7;a7 of    
this title1 other than paragraphs 7#h71 
7#aj71 and 7#ae7 of that section1 are   
met with respect to a plan1 the court1  
on request of the debtor1 shall confirm 
the plan notwithstanding the            
requirements of such paragraphs if the  
plan does not discriminate unfairly1 and
 is fair and equitable1 with respect to 
each class of claims or interests that  
is impaired under1 and has not accepted1
 the plan4  7c7 ,rule of construction   
,for purposes of this section1 the      
condition that a plan be fair and       
equitable with respect to each class of 
claims or interests includes the        
following requirements3  7#a7 ,with     
respect to a class of secured claims1   
the plan meets the requirements of      
section #aabi7;b77#b77;,a7 of this      
title4  7#b7 ,as of the effective date  
of the plan--  7,a7 the plan provides   
that all of the projected disposable    

income of the debtor to be received in  
the #c-year period1 or such longer      
period not to exceed #e years as the    
court may fix1 beginning on the date    
that the first payment is due under the 
plan will be applied to make payments   
under the plan2 or  7,b7 the value of   
the property to be distributed under the
 plan in the #c-year period1 or such    
longer period not to exceed #e years as 
the court may fix1 beginning on the date
 on which the first distribution is due 
under the plan is not less than the     
projected disposable income of the      
debtor4  7#c7  7,a7  7i7 ,the debtor    
will be able to make all payments under 
the plan2 or  7ii7 there is a reasonable
 likelihood that the debtor will be able
 to make all payments under the plan2   
and  7,b7 the plan provides appropriate 
remedies1 which may include the         
liquidation of nonexempt assets1 to     
protect the holders of claims or        
interests in the event that the payments
 are not made4  7d7 ,disposable income  

,for purposes of this section1 the term 
disposable income means the income that 
is received by the debtor and that is   
not reasonably necessary to be          
expended--  7#a7 for-- 7,a7 the         
maintenance or support of the debtor or 
a dependent of the debtor2 or  7,b7 a   
domestic support obligation that first  
becomes payable after the date of the   
filing of the petition2 or  7#b7 for the
 payment of expenditures necessary for  
the continuation1 preservation1 or      
operation of the business of the debtor4
  7e7 ,special rule ,notwithstanding    
section #aabi7;a77#i77;,a7 of this      
title1 a plan that provides for the     
payment through the plan of a claim of a
 kind specified in paragraph 7#b7 or    
7#c7 of section #ejg7;a7 of this title  
may be confirmed under subsection 7b7 of
 this section4  #aaib4 ,discharge ,if   
the plan of the debtor is confirmed     
under section #aaia7;b7 of this title1  
as soon as practicable after completion 
by the debtor of all payments due within

 the first #c years of the plan1 or such
 longer period not to exceed #e years as
 the court may fix1 unless the court    
approves a written waiver of discharge  
executed by the debtor after the order  
for relief under this chapter1 the court
 shall grant the debtor a discharge of  
all debts provided in section           
#aada7;d77#a77;,a7 of this title1 and   
all other debts allowed under section   
#ejc of this title and provided for in  
the plan1 except any debt--  7#a7 on    
which the last payment is due after the 
first #c years of the plan1 or such     
other time not to exceed #e years fixed 
by the court2 or  7#b7 of the kind      
specified in section #ebc7;a7 of this   
title4  #aaic4 ,modification of plan    
7a7 ,modification before confirmation   
,the debtor may modify a plan at any    
time before confirmation1 but may not   
modify the plan so that the plan as     
modified fails to meet the requirements 
of sections #aabb and #aabc of this     
title1 with the exception of subsection 

7a77#h7 of such section #aabc4 ,after   
the modification is filed with the      
court1 the plan as modified becomes the 
plan4  7b7 ,modification after          
confirmation ,if a plan has been        
confirmed under section #aaia7;a7 of    
this title1 the debtor may modify the   
plan at any time after confirmation of  
the plan and before substantial         
consummation of the plan1 but may not   
modify the plan so that the plan as     
modified fails to meet the requirements 
of sections #aabb and #aabc of this     
title1 with the exception of subsection 
7a77#h7 of such section #aabc4 ,the     
plan1 as modified under this subsection1
 becomes the plan only if circumstances 
warrant the modification and the court1 
after notice and a hearing1 confirms the
 plan as modified under section         
#aaia7;a7 of this title4  7c7 ,certain  
other modifications ,if a plan has been 
confirmed under section #aaia7;b7 of    
this title1 the debtor may modify the   
plan at any time within #c years1 or    

such longer time not to exceed #e years1
 as fixed by the court1 but may not     
modify the plan so that the plan as     
modified fails to meet the requirements 
of section #aaia7;b7 of this title4 ,the
 plan as modified under this subsection 
becomes the plan only if circumstances  
warrant such modification and the court1
 after notice and a hearing1 confirms   
such plan1 as modified1 under section   
#aaia7;b7 of this title4  7d7 ,holders  
of a claim or interest ,if a plan has   
been confirmed under section #aaia7;a7  
of this title1 any holder of a claim or 
interest that has accepted or rejected  
the plan is deemed to have accepted or  
rejected1 as the case may be1 the plan  
as modified1 unless1 within the time    
fixed by the court1 such holder changes 
the previous acceptance or rejection of 
the holder4  #aaid4 ,payments  7a7      
,retention and distribution by trustee  
,payments and funds received by the     
trustee shall be retained by the trustee
 until confirmation or denial of        

confirmation of a plan4 ,if a plan is   
confirmed1 the trustee shall distribute 
any such payment in accordance with the 
plan4 ,if a plan is not confirmed1 the  
trustee shall return any such payments  
to the debtor after deducting-- 7#a7 any
 unpaid claim allowed under section     
#ejc7;b7 of this title2  7#b7 any       
payment made for the purpose of         
providing adequate protection of an     
interest in property due to the holder  
of a secured claim2 and  7#c7 any fee   
owing to the trustee4  7b7 ,other plans 
,if a plan is confirmed under section   
#aaia7;b7 of this title1 except as      
otherwise provided in the plan or in the
 order confirming the plan1 the trustee 
shall make payments to creditors under  
the plan4  7c7 ,payments prior to       
confirmation ,prior to confirmation of a
 plan1 the court1 after notice and a    
hearing1 may authorize the trustee to   
make payments to the holder of a secured
 claim for the purpose of providing     
adequate protection of an interest in   

property4  #aaie4 ,transactions with    
professionals ,notwithstanding section  
#cbg7;a7 of this title1 a person is not 
disqualified for employment under       
section #cbg of this title1 by a debtor 
solely because that person holds a claim
 of less than #aj1jjj that arose prior  
to commencement of the case4  4  7b7    
,clerical amendment ,the table of       
subchapters at the beginning of chapter 
#aa of title #aa1 ,united ,states ,code1
 is amended by adding at the end the    
following3  ,,subchapter ,v--,small     
business debtor reorganization #aaha4   
,inapplicability of other sections4     
#aahb4 ,definitions4 #aahc4 ,trustee4   
#aahd4 ,rights and powers of a debtor in
 possession4 #aahe4 ,removal of debtor  
in possession4 #aahf4 ,property of the  
estate4 #aahg4 ,duties and reporting    
requirements of debtors4 #aahh4 ,status 
conference4 #aahi4 ,filing of the plan4 
#aaij4 ,contents of plan4 #aaia4        
,confirmation of plan4 #aaib4           
,discharge4 #aaic4 ,modification of     

plan4 #aaid4 ,payments4 #aaie4          
,transactions with professionals4  4    
#c4 ,preferences2 venue of certain      
proceedings  7a7 ,preferences ,section  
#edg7;b7 of title #aa1 ,united ,states  
,code1 is amended by inserting #8#81    
based on reasonable due diligence in the
 circumstances of the case and taking   
into account a party's known or         
reasonably knowable affirmative defenses
 under subsection 7c71'' after may4  7b7
 ,venue of certain proceedings ,section 
#adji7;b7 of title #bh1 ,united ,states 
,code1 is amended by striking #aj1jjj   
and inserting #be1jjj4  #d4 ,conforming 
amendments  7a7 ,title #aa ,title #aa1  
,united ,states ,code1 is amended-- 7#a7
 in section #aja--  7,a7 in paragraph   
7#ea;,c71 by inserting and has not      
elected that subchapter ,v of chapter   
#aa of this title shall apply after is a
 small business debtor2 and  7,b7 in    
paragraph 7#ea;,d7--  7i7 in            
subparagraph 7,a7-- 7,i7 by striking or 
operating real property or activities   

incidental thereto and inserting single 
asset real estate2 and  7,,ii7 by       
striking for a case in which and all    
that follows and inserting not less than
 #ej percent of which arose from the    
commercial or business activities of the
 debtor2 and2 and  7ii7 in subparagraph 
7,b7--  7,i7 by striking the period at  
the end and inserting a semicolon2      
7,,ii7 by striking does not include any 
member and inserting the following3     
8does not include--  7i7 any member  2  
and  7,,iii7 by adding at the end the   
following3  7ii7 any debtor that is a   
corporation subject to the reporting    
requirements under section #ac or       
#ae7;d7 of the ,securities ,exchange    
,act of #aicd 7#ae ,u4,s4,c4 #ghm1      
#gho7d772 or  7iii7 any corporation     
that--  7,i7 is subject to the reporting
 requirements under section #ac or      
#ae7;d7 of the ,securities ,exchange    
,act of #aicd 7#ae ,u4,s4,c4 #ghm1      
#gho7d772 and  7,,ii7 is an affiliate of
 a debtor4  2  7#b7 in section #ajc--   

7,a7 by redesignating subsections 7i7   
through 7k7 as subsections 7j7 through  
7l71 respectively2 and  7,b7 by         
inserting after subsection 7h7 the      
following3  7i7 ,subchapter ,v of       
chapter #aa of this title applies only  
in a case under chapter #aa in which a  
small business debtor elects that       
subchapter ,v of chapter #aa shall      
apply4  2  7#c7 in section #cbb7;a71 by 
inserting #aahc1 after #aafc12  7#d7 in 
section #cbf--  7,a7 in subsection 7a71 
by inserting 1 other than a case under  
subchapter ,v of chapter #aa1 after #g  
or #aa2 and  7,b7 in subsection 7b71 by 
inserting subchapter ,v of chapter #aa  
or after ,in a case under2  7#e7 in     
section #cdg-- 7,a7 in subsection 7a7-- 
7i7 by inserting #aaid1 after #gbf12 and
  7ii7 by inserting subchapter ,v of    
chapter #aa1 after chapter #g12 and     
7,b7 in subsection 7b71 by inserting    
#aaid1 after #aagc12  7#f7 in section   
#cfc7;c77#a71 by inserting #aahc1 #aahd1
 after #aajh12  7#g7 in section         

#cfd7;a71 by inserting #aahc1 #aahd1    
after #aajh12  7#h7 in section #ebc7;a71
 in the matter preceding paragraph 7#a71
 by inserting #aaib1 after #aada12  7#i7
 in section #ebd-- 7,a7 in subsection   
7a7--  7i7 in paragraph 7#a71 by        
inserting #aaib1 after #aada12 and  7ii7
 in paragraph 7#c71 by inserting #aaib1 
after #ebc12  7,b7 in subsection        
7c77#a71 by inserting #aaib1 after      
#aada12 and  7,c7 in subsection 7d71 by 
inserting #aaib1 after #aada12  7#aj7 in
 section #eeg7;d77#c71 by inserting     
#aahc1 after #aajd12  7#aa7 in section  
#aajb7;a71 by striking paragraph 7#c7   
and inserting the following3  7#c7      
,unless the court for cause orders      
otherwise1 a committee of creditors may 
not be appointed in a small business    
case or a case under subchapter ,v of   
this chapter4  2 and  7#ab7 in section  
#aadf7;a71 by inserting or #aaia after  
#aabi4  7b7 ,title #bh ,title #bh       
,united ,states ,code1 is amended-- 7#a7
 in section #ehf--  7,a7 in subsection  

7a77#c71 by inserting 7including        
subchapter ,v of chapter #aa7 after #g1 
#aa2  7,b7 in subsection 7b71 by        
inserting subchapter ,v of chapter #aa  
or after cases under2  7,c7 in          
subsection 7d77#a71 by inserting        
subchapter ,v of chapter #aa or after   
cases under each place that term        
appears2 and  7,d7 in subsection 7e7--  
7i7 in paragraph 7#a71 by inserting     
subchapter ,v of chapter #aa or after   
cases under2  7ii7 in paragraph 7#b71 by
 inserting subchapter ,v of chapter #aa 
or after cases under each place that    
term appears2 and  7iii7 by adding at   
the end the following3  7#e7 ,in the    
event that the services of the trustee  
in a case under subchapter ,v of chapter
 #aa of title #aa are terminated by     
dismissal or conversion of the case1 or 
upon substantial consummation of a plan 
under section #aahc7;c77#a7 of that     
title1 the court shall award            
compensation to the trustee consistent  
with services performed by the trustee  

and the limits on the compensation of   
the trustee established pursuant to     
paragraph 7#a7 of this subsection4  2   
7#b7 in section #ehi;b-- 7,a7 in        
subsection 7a77#a71 by inserting        
subchapter ,v of chapter #aa and after  
cases under2 and  7,b7 in subsection    
7d7-- 7i7 in the matter preceding       
paragraph 7#a71 by inserting subchapter 
,v of chapter #aa and after trustees    
under2 and  7ii7 in the undesignated    
matter following paragraph 7#h71 by     
inserting subchapter ,v of chapter #aa  
and after cases under2 and  7#c7 in     
section #aicj7;a77#f77;,a71 by inserting
 1 other than under subchapter ,v1 after
 chapter #aa of title #aa4  #e4         
,effective date ,this ,act and the      
amendments made by this ,act shall take 
effect #ahj days after the date of      
enactment of this ,act4