9 Ways the Recent Stimulus Bill Affects Bankruptcy
Highlights
In an effort to resolve divergent court rulings, the new Consolidated Appropriations Act gives the Small Business Administration discretion to determine which small and individual debtors may obtain PPP loans in bankruptcy
The CAA allows debtors in all bankruptcy cases to automatically take up to 210 days (thereby extending the statutory period by 90 days) to choose to continue with a non-residential real property lease and provides an additional grace period on payments for small business debtors after a filing
The new law also offers additional protection from “preference” claims to landlords of non-residential real property and to suppliers of goods and services who received deferred payments from a debtor
Among the provisions in the new Consolidated Appropriations Act of 2021 (CAA) are a number of temporary amendments to Title 11 of the United States Code (the Bankruptcy Code) focused on providing relief to creditors and corporate and individual debtors alike.
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