News & Analysis as of

Small Business Coronavirus/COVID-19 Bankruptcy Code

Locke Lord LLP

Too Much of a Good Thing: Congress Allows Increased Subchapter 5 Eligibility Level to Expire

Locke Lord LLP on

Over the past few years, one of the universally celebrated success stories in the bankruptcy and restructuring world has been Subchapter V of the Bankruptcy Code. Created by the Small Business Reorganization Act of 2019 (the...more

Miller Canfield

Debt Limit to Qualify for Subchapter V and Chapter 13 Set to Revert This Summer

Miller Canfield on

In 2022, Congress passed the Bankruptcy Threshold Adjustment and Technical Corrections Act (the “Act”), raising the debt limits for bankruptcy cases under the Small Business Reorganization Act (“SBRA,” a.k.a. “Subchapter V”)...more

Miller Canfield

Sunset of Certain Bankruptcy Code Changes

Miller Canfield on

As we previously reported, the Bankruptcy Code saw many changes in 2020 and 2021. Some of the changes that were enacted under the Consolidated Appropriations Act, 2021 ("CAA") will soon end....more

Womble Bond Dickinson

Sun Sets on Increased Subchapter V Debt Limit for Now

Womble Bond Dickinson on

A key bankruptcy-related response to the pandemic has ended as the increased debt limits under subchapter V of chapter 11, passed by Congress in the CARES Act, have expired. In an effort to provide bankruptcy relief and...more

Levenfeld Pearlstein, LLC

Increase in Subchapter V Debt Limit Poised to be Made Permanent

On February 19, 2020, Congress enacted the Small Business Reorganization Act (“SBRA”) to, among other things, streamline the chapter 11 bankruptcy process for a small business. Under the SBRA, a “small business” was one with...more

Williams Mullen

Subchapter V of Chapter 11: New Rules and New Players to Help with Small Business Reorganization

Williams Mullen on

Last year, while your life shifted to monitoring COVID-testing statistics, masking protocols, and your progress toward finding the end of the internet, a new facet of Chapter 11 of the Bankruptcy Code came into being. You may...more

Epiq

The Future of Subchapter V: Navigating the Pandemic and Beyond

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Bankruptcy courts have had an increase in activity since the COVID-19 pandemic struck, especially for small businesses facing financial challenges. The Small Business Reorganization Act (SBRA), which was passed in August 2019...more

Goodwin

A New Bankruptcy Lifeline for Startup, Early Stage and Emerging Growth Companies?

Goodwin on

Top 10 Questions About Subchapter V Reorganization - Reorganization under Chapter 11 of the Bankruptcy Code offers powers and benefits that are simply not available in out-of-court restructurings. Chapter 11...more

Haynsworth Sinkler Boyd, P.A.

COVID-19 Bankruptcy Relief Extension Act: Bankruptcy Provisions Of The 2020 Cares Act Extended

On March 27, 2020, the federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, providing relief to a wide array of individuals and industries. Included in the CARES Act were certain...more

Snell & Wilmer

Debt Limit Increase of Subchapter V of Chapter 11 of Bankruptcy Code Extended

Snell & Wilmer on

The 2020 CARES Act, enacted in response to the COVID-19 pandemic, included what was thought to be a temporary increase in the debt limits for Subchapter V bankruptcy filings under the Small Business Reorganization Act....more

Miller Canfield

The Impact of the Bankruptcy Relief Act and Other Recent Bankruptcy Code Changes

Miller Canfield on

Bankruptcy law has seen many changes in 2020 and 2021. Some of these were enacted in response to COVID, but many other changes were included in the Bankruptcy Code before the pandemic. This article highlights some of these...more

Kerr Russell

Increased Bankruptcy Debt Ceiling Extended An Additional Year

Kerr Russell on

As we recently reported, the temporary increase of the “debt ceiling” for small business debtors under Subchapter V of the Bankruptcy Code from $2,725,625 to $7,500,000 was set to “sunset” or expire on March 31, 2021. That...more

Bradley Arant Boult Cummings LLP

Guest Notebook: New Law Offers Rent Relief for Commercial Tenants

At the end of 2020, Congress enacted the Consolidated Appropriations Act, 2021, partially in response to the COVID-19 pandemic and resulting economic crisis. While funding the federal government and preventing a government...more

Genova Burns LLC

President Biden Signs the “COVID-19 Bankruptcy Relief Extension Act”

Genova Burns LLC on

On March 27, 2021, President Biden signed the “COVID-19 Bankruptcy Relief Extension Act”. The Legislation will extend personal and small business bankruptcy relief provisions that were part of last year’s CARES Act through...more

Holland & Knight LLP

Congress Enacts Temporary Bankruptcy Relief Related to COVID-19

Holland & Knight LLP on

Congress passed new, temporary bankruptcy relief measures late last year that impact certain commercial landlords and tenants. Among other things, the new legislation, which was signed into law on Dec. 27, 2020: 1) extends...more

Foley Hoag LLP

PPP Loans and Small Business Debtors in Bankruptcy

Foley Hoag LLP on

After the Paycheck Protection Program (the "PPP") was established in The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted on March 27, 2020, debtors in bankruptcy cases applied for PPP loans. The...more

Kerr Russell

Increased Bankruptcy Debt Ceiling Set To Expire

Kerr Russell on

In February 2020, Congress established a new subchapter of Chapter 11 of the Bankruptcy Code aimed at easing the burden and costs of reorganization for small businesses. This new Subchapter V, enacted under the Small Business...more

Tonkon Torp LLP

Chapter 11 Bankruptcy: The Ultimate Corporate Finance Tool

Tonkon Torp LLP on

COVID-19 ushered in a volatile economic climate that has made it difficult for many companies to meet their debt obligations. These companies may soon face a lender demanding repayment of debt that the company cannot pay....more

Patterson Belknap Webb & Tyler LLP

Court Dismisses Bankruptcy Case to Enable Debtor to Seek a Paycheck Protection Loan

It is well known in the restructuring world that a debtor in bankruptcy can’t get a PPP loan. But what if you’re a debtor and decide a PPP loan could save your business? Will a court dismiss the case so you can seek a loan?...more

Levenfeld Pearlstein, LLC

Legislation Introduced To Extend CARES And CAA Bankruptcy Provisions

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. ...more

Cozen O'Connor

Congress Enacts Modification to Bankruptcy Procedures Governing Assumption and Rejection of Leases

Cozen O'Connor on

The Consolidated Appropriations Act of 2021 (the Appropriations Act) is a $2.3 trillion spending bill that combines stimulus relief for the COVID-19 pandemic and an omnibus spending bill for the federal fiscal year. ...more

Bowditch & Dewey

Rent Abatement, PPP Loans (Maybe), and Other Bankruptcy Relief in the Appropriations Act

Bowditch & Dewey on

On December 27, 2020, the Consolidated Appropriations Act, 2021 became law. In addition to funding the government and providing coronavirus relief, the Act contains several intriguing amendments to the Bankruptcy Code. The...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Code Amendments Aimed at Allowing Extended Rent Holidays for Small Business Debtors Pose More Questions Than They...

While the recent Bankruptcy Code amendments allow small business debtors to extend their deferral of lease obligations beyond the first 60 days of the bankruptcy case, the amendments raise and leave unanswered important...more

Morrison & Foerster LLP

New COVID-19 Bill Provides Additional Bankruptcy Relief

On Sunday, December 27, 2020, President Trump signed into law the Consolidated Appropriations Act, which provides $900 billion in a second wave of economic stimulus relief for industries and individuals faced with challenges...more

Farella Braun + Martel LLP

Bankruptcy Provisions in COVID Relief Legislation Impacting PPP Loans, Commercial Leases and Preference Claims

With the COVID-19 pandemic stretching on into another year, businesses continue to experience adverse effects. Bankruptcy filings, especially among retailers, were higher than average in 2020, and it is likely that more...more

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