March 27, 2020.
The Coronavirus Aid Relief and Economic Security (“CARES”) Act became law Friday March 27, 2020.
The CARES Act makes temporary changes to the United States Bankruptcy Code. Here are some highlights:
Amends Small Business Reorganization Act of 2019 (SBRA ) to increase debt limit eligibility threshold for Subchapter V (small business reorganizations) of Chapter 11 from $2,725,625 to $7,500,000 for one year.
Amends definition of “Income” for Chapters 7 and 13 to exclude Coronavirus-related payments from the federal government.
Clarifies that the calculation of disposable income for Chapter 13 cases will exclude Coronavirus-related payments.