On March 27, 2021, President Biden signed into law the “COVID-19 Bankruptcy Relief Extension Act of 2021.” The Act extends the bankruptcy-related sunset provisions for the CARES Act by one year, but left intact the sunset provisions in the Consolidated Appropriations Act of 2021 that passed on December 27, 2020. The CARES Act amendments to the Bankruptcy Code will now expire on March 27, 2022. Those amendments include an increased debt limit of $7.5 million for small businesses electing to file bankruptcy under subchapter V of Chapter 11, a process for individuals to seek COVID-19 related hardship modifications, and confirmation that COVID-related relief payments are not included in the disposable income calculation. If you have any questions or would like more information, please contact Eaton Peabody’s Bankruptcy & Creditor’s Rights Practice Group Chair, Shawn Doil at firstname.lastname@example.org.
COVID-19 Update: Temporary CARES Act Bankruptcy Provisions Extensions
March 30, 2021