As a result of the coronavirus pandemic, Arizona banks and their borrowers are facing economic uncertainty. Bankruptcy filings are on the rise, and many eligible borrowers are opting to file under the Small Business Reorganization Act of 2019 (SBRA), a new fast-track bankruptcy option that alters lenders’ and other creditors’ rights in certain Chapter 11 bankruptcy cases.

The SBRA is quickly becoming an important tool for debtors in bankruptcy as the effects of COVID-19 are felt across the country.

In January 2018, Senators John Cornyn (R-TX) and Elizabeth Warren (D-MA) introduced a bill that would require corporate debtors to file for bankruptcy protection in the district in which their principal assets or principal place of business is located.