Title: COVID–19 Bankruptcy Relief Extension Act of 2021
Policy area: Finance and Financial Sector

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.
In addition, the bill extends through March 27, 2022, other bankruptcy protections that currently expire December 27, 2021. These provisions include those that (1) provide for discharge of certain debts, (2) prohibit denying a party COVID-related mortgage or eviction relief due to a party being a debtor in bankruptcy, and (3) protect against termination of utility services in certain circumstances.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 473 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                 S. 473

  To amend the CARES Act to extend the sunset for the definition of a 
             small business debtor, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 25, 2021

  Mr. Durbin (for himself and Mr. Grassley) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL


 
  To amend the CARES Act to extend the sunset for the definition of a 
             small business debtor, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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''.
    (c) Bankruptcy Relief.--Section 1001 of division FF of the 
Consolidated Appropriations Act, 2021 (Public Law 116-260) is amended 
by striking ``the date that is 1 year after the date of enactment of 
this Act'' each place the term appears and inserting ``March 27, 
2022''.
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