Extended Bankruptcy Relief Act Signed

President Biden has signed legislation extending personal and small business bankruptcy relief provisions that were part of last year’s CARES Act. The provisions were due to sunset on March 27 of this year. The extension lasts through March 27, 2022. Key provisions include: increased eligibility threshold for businesses filing under subchapter V of chapter 11 from $2,725,625 of debt to $7,500,000; amending the definition of “income” for chapters 7 and 13 to exclude coronavirus-related payments; permitting individuals and families currently in chapter 13 to seek payment plan modifications if they are experiencing financial hardship due to the pandemic, including extending their payments for up to seven years after their initial plan payment was due.