Legislation Introduced to Extend CARES and CAA Bankruptcy Provisions
March 1, 2021
Author: Harold Israel
On February 25, 2021, Senators Durbin and Grassley introduced bipartisan legislation to extend the expiration dates of certain bankruptcy provisions of the CARES Act and the Consolidated Appropriations Act to March 27, 2022.
Most importantly for small businesses is the proposed one-year extension of the increased $7.5 million debt limitation to file a small business chapter 11 case. Other provisions are primarily consumer in nature and relate to protecting COVID relief payments from creditors and provide additional relief to renters. A summary of the provisions to be extended are as follows:
The Financial Services & Restructuring Group at Levenfeld Pearlstein will continue to monitor developments and provide updates as available.
Source: American Bankruptcy Institute