What You Need to Know About the New Bankruptcy Amendments
In our last article about the bankruptcy amendments, we addressed the Small Business Reorganization Act (SBRA) that was signed into law by President Trump on August 23, 2019. However, the SBRA was not the only amendment that came to life that day. In addition, two more amendments were made to the bankruptcy code. These amendments include the Honoring American Veterans in Extreme Need Act of 2019 or HAVEN Act, as well as the Family Farmer Relief Act of 2019.
The HAVEN Act
The HAVEN Act excludes certain Veterans Affairs (VA) and Department of Defense (DOD) benefits from bankruptcy.
This act basically removes the benefits that veterans have received from their time in the military from the bankruptcy process. They are not required to include those benefits in the form of income as a part of the monthly calculation for Chapter 7 or Chapter 13 bankruptcy. This is a big relief for veterans who find themselves in a bankruptcy.
The Family Farmer Relief Act
The Family Farmer Relief Act of 2019 or H.R.2336 revises the term “family farmer.” A family farmer is now defined as an individual or an individual and a spouse participating in farming activity whose debts do not go over $10,000,000.
This Act essentially triples the limit for farmers, fishermen and other agricultural producers who are looking to file for debt relief under Chapter 12 of the United States Bankruptcy Code. Because of the Family Farmer Relief Act, the following is possible:
- A farm can now reorganize and restructure its debt to continue business in Chapter 13, Chapter 12, and Chapter 11 of bankruptcy. This law makes it easier for families who are farmers to handle financial difficulties and hardships.
- Family farmers who are in business together can take the necessary measures to save their farms and remain in business.
This law is another way to manage the farm economy, considering the declining profits the farming industry has been experiencing due to tariffs and other circumstances.
Brief Insight into the SBRA
The Small Business Reorganization Act of 2019 is an improvement to Chapter 11 of the US Bankruptcy Code that will go into effect on February 19, 2020.
The new law helps small businesses by making amending the Chapter 11 bankruptcy process to remove its costly aspects such as disclosure statements and make it simpler for small business debtors.
Do You Have Questions about the new Bankruptcy Code Amendments and How You Can Use Them For Your Bankruptcy? Call Our West Palm Beach Bankruptcy Attorneys Today.
Filing bankruptcy should be your last resort. But you don’t have to go it alone. The new bankruptcy amendments are making the process easier for people, and our attorneys can help you use them to your advantage and gain leverage in society.
For more information and understanding on the new laws, contact the West Palm Beach bankruptcy attorneys at Kelley, Fulton & Kaplan at 561-264-6850 for a consultation. We are here to help you find the right solution for your business and personal financial problems, so don’t hesitate to contact us for help getting back on your feet.