PRIA, Government Policy, Made Personal

Summary

Requires debtors in small-business Chapter 11 cases to file regular financial and other reports. The reports must show the debtor’s profitability; estimates of future cash coming in and going out; how actual cash compared with earlier estimates; whether the debtor is following post-filing rules and timely filing and paying taxes and other required payments; if not, what the problems are and how, when, and at what cost they will be fixed; and any other information needed for fair, efficient cases. Profitability means how much money the debtor earned or lost during current and recent fiscal periods.

Title 11, §308

Bankruptcy, Source: USLM XML via OLRC

(a)For purposes of this section, the term “profitability” means, with respect to a debtor, the amount of money that the debtor has earned or lost during current and recent fiscal periods.

(b)A debtor in a small business case shall file periodic financial and other reports containing information including—

(1)the debtor’s profitability;

(2)reasonable approximations of the debtor’s projected cash receipts and cash disbursements over a reasonable period;

(3)comparisons of actual cash receipts and disbursements with projections in prior reports;

(4)whether the debtor is—

(A)in compliance in all material respects with postpetition requirements imposed by this title and the Federal Rules of Bankruptcy Procedure; and

(B)timely filing tax returns and other required government filings and paying taxes and other administrative expenses when due;

(5)if the debtor is not in compliance with the requirements referred to in paragraph (4)(A) or filing tax returns and other required government filings and making the payments referred to in paragraph (4)(B), what the failures are and how, at what cost, and when the debtor intends to remedy such failures; and

(6)such other matters as are in the best interests of the debtor and creditors, and in the public interest in fair and efficient procedures under chapter 11 of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Rules of Bankruptcy Procedure, referred to in subsec. (b)(4)(A), are set out in the Appendix to this title.

Amendments

2010—Subsec. (b). Pub. L. 111–327, § 2(a)(10)(A), substituted “debtor in a small business case” for “small business debtor” in introductory provisions. Subsec. (b)(4) to (6). Pub. L. 111–327, § 2(a)(10)(B), struck out subpar. (A) designation before “whether the debtor” in par. (4) and redesignated cls. (i) and (ii) of former subpar. (A) as subpars. (A) and (B), respectively, redesignated former subpars. (B) and (C) of par. (4) as pars. (5) and (6), respectively, and, in par. (5), substituted “paragraph (4)(A)” for “subparagraph (A)(i)” and “paragraph (4)(B)” for “subparagraph (A)(ii)”.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 109–8, title IV, § 434(b), Apr. 20, 2005, 119 Stat. 111, provided that: “The

Amendments

made by subsection (a) [enacting this section] shall take effect 60 days after the date on which rules are prescribed under section 2075 of title 28, United States Code, to establish forms to be used to comply with section 308 of title 11, United States Code, as added by subsection (a) [See Bankruptcy Form No. 25C, eff. Dec. 1, 2008].”

§308 Debtor Reporting Requirements

Summary

Title 11, §308

Notes & Related Subsidiaries

Editorial Notes

References in Text

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Citations & Metadata