Local Rule Admin. Order 20-09: Administrative Order Adopting Interim Bankruptcy Rules as Amended by the CARES Act

Admin. Order 20-09 All Divisions ADMINISTRATIVE ORDER ADOPTING INTERIM BANKRUPTCY RULES AS AMENDED BY THE CARES ACT In Administrative Order No. 20-02, this court adopted Interim Rules (including Interim Rule 1020) relating to the Small Business Reorganization Act of 2019 (the "SBRA"). On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law, and that legislation requires a revision of Interim Rule 1020.1 The previously adopted SBRA-related Interim Rules, with the revision of Interim Rule 1020 now necessitated by the CARES Act, are attached hereto.2 The changes incorporated therein need to be in place long before the Bankruptcy Rules can be amended under the three-year process required by the Rules Enabling Act. The Judicial Conference has authorized distribution of these Interim Rules to courts for adoption locally to facilitate uniform implementation of the changes mandated by the SBRA and the CARES Act.

NOW THEREFORE, pursuant to 28 U.S.C. § 2071, Rule 83 of the Federal Rules of Civil Procedure, and Rule 9029 of the Federal Rules of Bankruptcy Procedure, it is ORDERED that the attached SBRA-related Interim Rules, with the revision of Interim Rule 1020 necessitated by the CARES Act, are adopted in their entirety without change by the judges of this Court to be effective April 22, 2020. This Administrative Order No. 20-09 revises Administrative Order No. 20-02 only to add the change, effective April 22, 2020, to Interim Rule 1020 necessitated by the CARES Act. In other words, Administrative Order No. 20-02 remains effective as to filings made before April 22, 2020.3 It is further ORDERED that notice is given that the Judicial Conference's Advisory Committee on Bankruptcy Rules has approved conforming one-year technical changes to five bankruptcy forms (Official Forms 101, 122A-1, 122B, 122C-1, and 201) in light of the CARES Act amendments to the Bankruptcy Code.4 The Official Forms are posted at: https://www.uscourts.gov/forms/bankruptcy-forms, and the Committee Notes to the Official Forms explain the significant changes to these forms.

DATED: April 21, 2020 /s/ James J. Robinson JAMES J. ROBINSON Chief Judge, U.S. Bankruptcy Court /s/ Tamara O. Mitchell TAMARA O. MITCHELL Judge, U.S. Bankruptcy Court /s/ Jennifer H. Henderson JENNIFER H. HENDERSON Judge, U.S. Bankruptcy Court /s/ Clifton R. Jessup, Jr. CLIFTON R. JESSUP, JR. Judge, U.S. Bankruptcy Court /s/ D. Sims Crawford D. SIMS CRAWFORD Judge, U.S. Bankruptcy Court 1 A copy of the amendment to Interim Rule 1020 showing the CARES Act-related changes can be found at: https://www.uscourts.gov/rules-policies/current-rules-practice-procedure. The amendment to the Bankruptcy Code (11 U.S.C. § 101, et seq.) by the CARES Act that has necessitated the amendment of Interim Rule 1020 will terminate one year after the date of enactment of the CARES Act.

2 The attached Interim Rules include an Interim Rule 1007 reflecting a needed change in light of SBRA which ought not be confused with Interim Rule 1007-I. The National Guard and Reservists Debt Relief Act of 2008, Pub. L. No. 110-438, as amended by Public Law No.116-53, provides a temporary exclusion from the bankruptcy means test for certain reservists and members of the National Guard. Interim Rule 1007-I implemented that provision, and it was adopted in Administrative Order No. 12-02.

3 The Federal Rules of Bankruptcy Procedure and the Local Bankruptcy Rules of this Court, except to the extent inconsistent with these Interim Rules, continue to apply to cases and proceedings in this Court.

4 The CARES Act modifies the definition of "debtor" in 11 U.S.C. § 1182(1); and modifies the definitions of "current monthly income" in 11 U.S.C. § 101(10A) and of "disposable income" in 11 U.S.C. § 1325(b)(2) to exclude certain payments under the CARES Act. These amendments to the Bankruptcy Code will terminate one year after the date of enactment of the CARES Act.