Among many other accommodations, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided small business and individual debtors with expanded access to bankruptcy relief. The extended provisions include:
Originally set to expire in March 2021, these provisions were extended for another year to March 27, 2022, pursuant to the COVID-19 Bankruptcy Relief Extension Act of 2021. While there appears to be bipartisan support for a similar extension, we have yet to see a concrete proposal to extend some or all of the CARES Act bankruptcy provisions.
Practice Point: Small business debtors and their creditors should be mindful of the approaching expiration of the increased debt limit for subchapter V eligibility. Unless a legislative intervention materializes, there may be an uptick in filings before the end of the month by debtors who wish to take advantage of the increased debt limit.
For additional information on the impact of the coronavirus, visit our information hub for a list of up-to-date content.
For questions about this topic, please contact Bryan M. Mull.
Bryan M. Mull
410-576-4227 • bmull@gfrlaw.com