Author Update: On Saturday, March 27, 2021, President Biden signed the “COVID-19 Bankruptcy Relief Extension Act” into law, which – among other things – extended the increased debt eligibility threshold until March 27, 2022.

The COVID-19 pandemic has brought incredible difficulties to businesses across the nation. In an attempt to alleviate the pressure, Congress passed the 2020 CARES Act, which provided many forms of stimulus. One component of the act increased the maximum debt limit from $2,725,625 to $7.5 million for Subchapter V bankruptcy filings under the Small Business Reorganization Act. In other words, Subchapter V used to be available only to businesses with no more than $2.7 million in debt. The CARES Act raised that limit to $7.5 million, making Subchapter V available to millions of more businesses.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]