COVID–19 Bankruptcy Relief Extension Act of 2021

Bill: 117-s-473
Sponsor: full_name: Sen. Durbin, Richard J. [D-IL]
Introduced: 2021-02-25
Policy area: Finance and Financial Sector
Subjects: Bankruptcy

Cardiovascular and respiratory health

Debt collection

Emergency medical services and trauma care

Infectious and parasitic diseases

Small business
Latest action: action_date: 2021-02-25
text: Read twice and referred to the Committee on the Judiciary. (text: CR S900)

Summaries:
action_date: 2021-02-25
action_desc: Introduced in Senate
text: <p><strong>COVID-19 Bankruptcy Relief Extension Act of 2021 </strong></p> <p>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. </p> <p>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. </p> <p>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. </p> <p>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. </p>

tv_txt: II 117th CONGRESS 1st Session S. 473 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.

1. Short title This Act may be cited as the COVID–19 Bankruptcy Relief Extension Act of 2021 . 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 .