The Small Business Reorganization Act (“SBRA”) was signed into law in August 2019 and became effective in February 2020. The SBRA makes Chapter 11 bankruptcy more accessible and less expensive for small businesses by establishing a process for small business debtors under Chapter 11 that is similar to the bankruptcy process under Chapter 12 for family farmers and Chapter 13 for individuals.

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On May 20, 2019, the Supreme Court issued its opinion in Mission Product Holdings, Inc. v. Tempnology, LLC (“Tempnology”) deciding that rejection of an executory contract by a debtor is only a prepetition breach and not a termination of the contract.

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While bankruptcy is an option for those facing insurmountable debt, it is often difficult for the truly impoverished to obtain access to a chapter 7 bankruptcy. The 2005 amendments to the Bankruptcy Code made filing a chapter 7 bankruptcy more difficult, which increased the cost. Today, many people are just too broke for bankruptcy. While some legal aid programs assist with bankruptcy filings, not all do, and most limit bankruptcy filings to only those people who are in immediate danger of losing property. Otherwise, most programs would be overrun with bankruptcy cases.

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A controlling question of California law dealing with the interplay between State law presumptions of community property and “form of title” on which there was no controlling California precedent has been certified to the California Supreme Court by the Ninth Circuit.

In Brace v. Speier (In re Brace), 908 F.3d 531 (9th Cir.), the Ninth Circuit certified the following questions to the California Supreme Court:

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