Amendment of Interim Bankruptcy Rule 1020 to Implement Provisions of CARES Act

The Court has entered General Order 20-008 amending Interim Bankruptcy Rule 1020 to  implement the provisions of the CARES Act related to eligibility to be a small business debtor under subchapter V of Chapter 11, which increased the maximum “aggregate noncontingent liquidated secured and unsecured debts” of the debtor from $2,725,625 to $7,500,000. This new maximum does not apply to cases filed prior to the enactment of the CARES Act, and is effective for one year from the effective date of the CARES Act, March 27, 2020. See 11 U.S.C. § 1182(1)(A).

Tuesday, April 21, 2020