shape
shape
shape
shape
shape
shape
8 April 2021 / Garry A. Masterson

COVID-19 Bankruptcy Relief Extension Act Extends CARES Act Provisions

Topics: Bankruptcy

President Biden signed the COVID-19 Bankruptcy Relief Extension Act into law on March 27, 2021, previously passed overwhelmingly by Congress. The Act extends provisions of the Coronavirus Economic Stabilization Act of 2020 (CARES Act) through March 27, 2022.

Key provisions previously signed into law that are now extended include the following:
  • Increased eligibility for small businesses to file a subchapter V chapter 11 bankruptcy case, as long as debt is $7,500,000.00 or less.
  • Exclusion of coronavirus-related payments from income under the Bankruptcy Code for purposes of the filing of bankruptcy under chapters 7 and 13.
  • Debtors' ability to modify their chapter 13 plan to reduce payments and/or to extend the length of the plan, as long as confirmed before March 27, 2021 and a financial hardship is experienced due to the pandemic.
  • Chapter 13 debtors will not be denied a bankruptcy discharge if they have made all of their plan payments but have missed three or less mortgage payments due to the pandemic.
In addition, there are other provisions extended as well, as more fully covered in the prior Weltman alerts. We will continue to monitor for any additional changes or legislation that is introduced or signed into law. If you have any questions, please feel free to reach out to Weltman’s Bankruptcy team.

This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.

Related News

Insights / 13 October 2021

Pennsylvania Private School Series: Part III - Being Prepared for Cases of Divorced Parents

One of the most difficult situations to deal with for a child is the divorce of their parents. It's an event that will redefine the lives of all people involved and can naturally cause a lot of stress and uncertainty. This uncertainty and additional stress can transfer over to the school the children are enrolled in.
Read More
Insights / 13 October 2021

What You Need to Know About Embezzlement and Fraud: Our Top Four Tips

We recently attended the Ohio Association of Public Treasurers (OAPT)'s fall conference on October 6, 2021. Shareholder and presenter Sara Costanzo presented Embezzlement & Fraud in Government. Now, we want to share our top four takeaways from this presentation.
Read More
Insights / 6 October 2021

Pennsylvania Private School Series: Part II - Using the Unjust Enrichment Theory to Recover

As schools continue to face the ever changing landscape of educating their students and developing relationships with the families that attend their institutions, they also can encounter situations in which tuition goes unpaid.
Read More

Join Our Email List

Get the latest articles and news delivered to your email inbox!
Subscribe

Contact the Author

Garry A. Masterson

Attorney
Contact

Join Our Email List