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Public Notice : Interim Bankruptcy Rule 1020

Thursday, July 11, 2024

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NEW YORK

Robert A. Gavin, Jr.,                                                            Brooklyn  (347) 394-1700

Clerk of Court                                                                Central Islip   (631) 712-6200

Public Notice

Interim Bankruptcy Rule 1020
(Inapplicable to cases filed after June 21, 2024)

On June 21, 2022, the Bankruptcy Threshold and Technical Corrections Act (BTATC Act), Pub. L. 117-151 temporarily set, until June 21, 2024, the total debt limit for determining eligibility of a debtor to proceed under subchapter V of chapter 11 to $7,500,000 – the amount previously in effect for several years under the CARES Act. Interim Bankruptcy Rule 1020 (pdf) was drafted to implement that temporary $7,500,000 BTATC Act debt limit, and courts were encouraged to adopt the Interim Rule as a local rule while the BTATC debt limits were in effect. Because the BTATCA debt limit for subchapter V cases expired on June 21, 2024, Interim Rule 1020 is not applicable to cases filed after that date. With respect to cases filed after June 21, 2024, the applicable debt limit for subchapter V cases is the same as that for a small business case as defined in 11 U.S.C. § 101(51D) - $3,024,725 (amount subject to adjustment on 4/01/25 and every three years after that). See, https://www.uscourts.gov/rules-policies/current-rules-practice-procedure/federal-rules-bankruptcy-procedure

Additionally, the following Official Forms have been revised:

· Official Form 101 – Voluntary Petition for Individuals Filing for Bankruptcy (Line 13)

· Official Form 201 – Voluntary Petition for Non-Individuals Filing for Bankruptcy (Line 8)

The updated forms are available on the U.S. Courts website at https://www.uscourts.gov/forms/bankruptcy-forms.

Dated: Brooklyn, New York
            July 8, 2024