Temporary Increase in Debt Limit Eligibility Under Subchapter V of Chapter 11 included in Stimulus Package
U.S. Courts sent this bulletin at 03/25/2020 03:33 PM EDT
Temporary Increase in Debt Limit Eligibility Under Subchapter V of Chapter 11 included in Stimulus Package
The Bankruptcy Court has been notified by Senator Sheldon Whitehouse's Office that the Senate will today pass an enhancement to the Small Business Reorganization Act which will raise the eligibility debt limit to $7.5 million (from current $2,725,625) for 1 year, so more businesses can take advantage of the SBRA provisions. This provision is part of the COVID-19 stimulus package. In short, the bill tries to make the bankruptcy process quicker and more efficient for small businesses by eliminating certain chapter 11 requirements. It also helps small businesses retain ownership in their business after emerging from bankruptcy by allowing them to pay creditors over a longer period of time. For more information about the Small Business Reorganization Act, please visit the Court's website and training document.
Sincerely,
Susan M. Thurston
Clerk of Court
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U.S. Bankruptcy Court, District of Rhode Island 380 Westminster Street, Follow us on |
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