2019 Small Business Reorganization Act (“SBRA” or “Subchapter 5”)

In August 2019, effective in February 2020, Congress enacted SBRA in response to complaints the 2005 Chapter 11 was too cumbersome (and expensive) for small businesses.  Unfortunately, only businesses with less than 2.726 million of debt were eligible.  The virus-driven CARES Act later raised the cap (temporarily) to 7.5 million. The SBRA provides that so long as secured creditors receive the value of their collateral (over time), and the debtor pays all of its discretionary income (after operating expenses) to unsecured creditors for 3-5 years, the debtor (individual or corporate) can retain ownership of the business. 

Some features:

  • A “SBRA Trustee” is appointed to help (but not replace) debtor’s management;
  • A Plan with Disclosure Statement is to be proposed in the first 90 days;
  • Creditors can’t propose a Plan or vote on debtor’s Plan of Reorganization;
  • The “absolute priority rule” is eliminated (it required owners paying creditors in full or injecting new capital to retain ownership); and
  • Certain burdensome admin reporting and financial requirements were relaxed or eliminated.

The SBRA was negotiated and enacted before the COVID-19 pandemic.  In its wake, corporations urged Congress to raise the debt ceiling to 10 million.  In response, the CARES Act increased the debt limit to 7.5 million for cases filed before March 27, 2021.  After this deadline the cap reverts to 2.726 million.  Temporary, but disabling, reductions of cash flow are impairing otherwise viable businesses.  SBRA/CARES provide an opportunity for struggling business debtors to discount and stretch out repayment of suspended landlord, vendor, and other similar payment-deferred obligations.  If the foregoing debt restructuring provisions (the crisis “vaccine”) seem helpful, and/or necessary, management should contact reorganization attorney Jon Clarke for further details and discussion.

Welcome to
Colorado’s Most Experienced Bankruptcy Attorney

Denver bankruptcy attorney

Castle Rock’s most experienced attorney

Castle Rock Law Office

The Law Office of Jon B. Clarke, P.C., was established in 1992. Before that time, attorney Jon B. Clarke was a shareholder and director of Clarke & Waggener, P.C. — a downtown Denver law firm founded in 1966 — which moved to Denver Tech Center offices in 1983. Now a leading Castle Rock bankruptcy attorney, Jon brings dedication and extensive experience to each case.

Mr. Clarke is a second generation Castle Rock bankruptcy attorney with more than 35 years of experience. In 2006, attorney Clarke was named a top attorney in Colorado’s SuperLawyer magazine, one of only a few consumer bankruptcy lawyers to achieve this distinction.

Today, Castle Rock bankruptcy attorney Jon Clarke focuses his practice on the area of insolvency, particularly in Chapter 7 and Chapter 11 bankruptcy. He and his support staff can efficiently handle your bankruptcy case, answering your questions and addressing concerns involving the protection of your assets and the long-term effects of a bankruptcy filing. Mr. Clarke is prepared to handle any level of complexity an insolvent individual or business debtor may bring to him.

Currently, Mr. Clarke does not represent Chapter 13 individual regular-income debtors, but he can give you names of Denver’s most experienced bankruptcy attorneys in your area who do.

Key Bankruptcy Steps

Your first step toward debt relief is to complete the business, consumer debtor analysis form, so we can determine whether you are an individual debtor. If so, Castle Rock bankruptcy attorney Clarke will determine if your debts are primarily business or consumer in nature. We will then contact you to discuss the type of attorney-client relationship that can then follow.

Mr. Clarke’s procedure for accepting clients is described on our law firm’s Becoming a Client and Debt Relief Agency pages. His extensive experience and devotion to this area of law allowed him to create an efficient, web-based procedure that reduces the number of times clients have to make office visits. Some very complex cases may require additional office meetings.

New Bankruptcy Law

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 — which applies to all cases filed after Oct. 16, 2005 — imposes extensive and stringent disclosure requirements on entities providing bankruptcy assistance to prospective clients.

The act necessitates fundamental changes in client marketing, client intake, client consultation, as well as obtaining client information, conducting pre-bankruptcy analysis and culminating in the filing of a Chapter 7, 11, or 13 bankruptcy petition. At the Castle Rock Law Office of Jon B. Clarke, we focus on acquainting you with the disclosures and notices legally required before we can give meaningful, personalized advice about your unique situation.

Contact Castle Rock’s Best Debt Relief Attorney

Castle Rock bankruptcy attorney Jon B. Clarke is committed to helping you obtain a fresh start with mortgage, car loan, personal guaranty, credit card and other debt relief. To get started, please complete our Business or Consumer Debtor Analysis form.

For more bankruptcy information see:

Our Legal Support Staff


Education: University of Northern Colorado B.A., 2005; University of Denver, Sturm College of Law, J.D., 2010; Peer Rated “A” for Legal Ability and Ethics; Super Lawyer “Rising Star” 2020.

Practice Areas: Business Bankruptcy Litigation; Private Debt Workouts.

PHYLLIS BARRETT, Legal Assistant, 1979 to date.

JANIE REIVER, Denver Office Manager, 1992 to date.

JODI LOPEZ, Castle Rock Office Manager, 2015 to date.

Contemplating Bankruptcy?


Get your questions answered, using the information provided via this site.


To discuss your situation with Jon Clarke, fill out and submit the Business or Consumer Debtor Analysis Form.


We will endeavor to contact you within 3 business days of receipt of your Business or Consumer Debtor Analysis Form.

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What Our Clients Say

“The website was pretty instrumental in my decision to call Mr. Clarke. It was very professional and highlighted his expertise very well. Mr. Clarke was very helpful with our special circumstances and was very straightforward with what we had to do. Jon was awesome. I had a ton of questions and we had a special circumstance and he was very helpful with his advice and his expertise. Though this isn’t something you hope to recommend to friends, if we ever have friends in this situation I would most definitely recommend Mr. Clarke to them.”
DW – Aurora
“Thank you for providing services to us. From our first conversation I was put at ease that there was a solution to my problem and that you knew how to help. I am also thankful for your help with matters after the discharge. Both you and your staff have been very thorough and professional and a huge help withmy case. Thank you very much. Thanks again.”
Val – Douglas County
“I just want to take this opportunity to once again say, “Thank You” Jon and Phyllis for helping my husband and I through what I know to be one of the most difficult times in our lives. We were in denial the we were facing bankruptcy and I’m sure one of the more difficult clients. Jon was so reassuring and informative throughout the process and helped us realize that there really is normalcy after bankruptcy! My husband and I are a month away from our discharge being two years old and we are preparing to buy a home. We have established good credit again, have a growing savings account and looking forward to our future…something I couldn’t allow myself to even consider two years ago.”
The Smiths – Denver