Our Clients Receive Individualized Attention And Advice

Upcoming Extension of Subchapter V from CARES Act

| Mar 3, 2021 | Bankruptcy, Business, Debt, Firm News, News

Small Businesses will Benefit from the Chapter 11 Provisions

Update 3/29/2021: This provision has been extended to June 2022.

New legislation to extend an important provision to the CARES Act was just introduced. Should it be passed, the Subchapter V bankruptcy provision will be extended to March 27, 2022. This is good news for small businesses.

The CARES Act contained the Subchapter V provision for chapter 11 bankruptcies which currently expires on March 26, 2021. It includes provisions that are beneficial to small business owners including increasing the debt limit from $2,725,625 to $7.5 million to take advantage of chapter 11 filing.

There are other provisions included but the debt limit increase is a major one for small businesses. Below is a summary of what would be extended:

**Source of Chart: American Bankruptcy Institute

About DelCotto Law Group

DelCotto Law Group is Kentucky’s asset protection law firm known for its commitment to the lifetime success of its clients. With offices located in Lexington, Louisville and Danville, DLG serves Kentuckians with complicated financial matters, especially in the areas of bankruptcy and complex litigation. For more information please call 859-231-5800, email [email protected] or reach us on our contact page.

Archives

Categories