On March 27, 2021, the President signed into law an amended version of H.R. 1651, the “COVID–19 Bankruptcy Relief Extension Act of 2021,” Pub. L. No. 117-5 (2021), which extends for one year certain provisions amending the Bankruptcy Code included in the CARES Act, Pub. L. No. 116-136 (2020).  As a result of the enactment of this legislation, the following provisions in the CARES Act are extended through to March 27, 2022:

• Increasing the maximum debt eligibility limit for a small business debtor seeking to reorganize under Subchapter V of Chapter 11 from $2,725,625 to $7,500,000;

• With respect to Chapters 7 and 13, amending the Bankruptcy Code’s definition of income to exclude federal COVID-19 related relief payments from being treated as income;

• Excluding federal COVID-19 related relief payments from the calculation of disposable income for purposes of confirming a Chapter 13 plan;

• Permitting a confirmed Chapter 13 plan to be modified to extend payments under such plan for up to seven years if the debtor is experiencing or has experienced a material financial hardship due directly or indirectly to the COVID-19 pandemic.

The Court has updated the training document outlining the provisions contained in the Bankruptcy Provisions of the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to include these recent amendments.  In addition, we are pleased to provide you with a link to an article, “Cheat Sheet to COVID-19 Bankruptcy Provisions and Sunsets”, and  a convenient chart, “Summary of COVID Bankruptcy Relief Provision”, authored by John Rao, an attorney with the National Consumer Law Center.