COVID-19 Bankruptcy Relief Extension Act of 2021
Bill: H.R.1651 | Sponsor: Rep. Nadler, Jerrold (D-NY)
Policy area: Law

Summary:
COVID-19 Bankruptcy Relief Extension Act of 2021
This bill extends existing provisions that provide relief to debtors in bankruptcy, including those related to the COVID-19 (i.e., coronavirus disease 2019) pandemic.
These provisions (1) exclude certain COVID-19 aid payments from income for the purposes of bankruptcy, and (2) increase the debt eligibility threshold for businesses qualifying for certain types of Chapter 11 reorganization bankruptcy. Currently, these provisions expire March 27, 2021. The bill extends these provisions for one year.
The bill also allows for modification of a Chapter 13 repayment plan for plans confirmed before the date of enactment of this bill if the debtor is experiencing material financial hardship due to COVID-19. Currently, such a modification is only available for plans confirmed before March 27, 2020.

[117th Congress Public Law 5]
[From the U.S. Government Publishing Office]



[[Page 135 STAT. 249]]

Public Law 117-5
117th Congress

                                 An Act


 
  To amend the CARES Act to extend the sunset for the definition of a 
    small business debtor, and for other purposes. <<NOTE: Mar. 27, 
                         2021 -  [H.R. 1651]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: COVID-19 
Bankruptcy Relief Extension Act of 2021. 11 USC 101 note.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``COVID-19 Bankruptcy Relief Extension 
Act of 2021''.
SEC. 2. EXTENSIONS.

    (a) In General.--Section 1113 of the CARES Act (Public Law 116-136) 
is amended--
            (1) in subsection (a)(5) (11 U.S.C. 1182 note), by striking 
        ``1 year'' and inserting ``2 years''; and
            (2) in subsection (b)(2)(B) (11 U.S.C. 101 note), by 
        striking ``1 year'' and inserting ``2 years''.

    (b) Modification of Plan After Confirmation.--
            (1) Section 1329(d)(1) of title 11, United States Code, is 
        amended, in the matter preceding subparagraph (A), by striking 
        ``this subsection'' and inserting ``the COVID-19 Bankruptcy 
        Relief Extension Act of 2021''.
            (2) Section 1113(b)(1)(D)(ii) of the CARES Act (11 U.S.C. 
        1329 note) is amended by striking ``this Act'' and inserting 
        ``the COVID-19 Bankruptcy Relief Extension Act of 2021''.
SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying with 
the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that such 
statement has been submitted prior to the vote on passage.

    Approved March 27, 2021.

LEGISLATIVE HISTORY--H.R. 1651:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 167 (2021):
            Mar. 16, 17, considered and passed House.
            Mar. 24, considered and passed Senate, amended.
            Mar. 26, House concurred in Senate amendment.

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