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Improvements Rolled Out by the Bankruptcy Administration Improvement Act of 2020
On Jan. 12, 2021, President Donald J. Trump signed the “Bankruptcy Administration Improvement Act of 2020” into law. The bipartisan legislation was introduced in the Senate by Sen. Lindsey Graham (R-S.C.) and cosponsored by Sens. Christopher A. Coons (D-Del.), Marco Rubio (R-Fla.), Benjamin L. Cardin (D-Md.), Marsha Blackburn (R-Tenn.) and Thomas R. Carper (D-Del.). The Bankruptcy Administration Improvement Act of 2020 moved quickly through Congress, with passage in the Senate on Dec. 9, 2020, and passage in the House on Dec. 21, 2020.
H.R. 133, Consolidated Appropriations Act
H.R. 133, the Consolidated Appropriations Act of 2021, is a proposed $2.3 trillion spending bill that combines $900 billion in stimulus relief for the COVID-19 pandemic in the United States with a $1.4 trillion omnibus spending bill for the 2021 federal fiscal year. On Dec. 21, 2020, by a vote of 92-6, the Senate approved the House amendment to the Senate amendments, thus formally resolving the two chambers’ differences on the bill. On Dec. 24, 2020, H.R. 133 was formally presented to the President for signature; on Dec. 27, 2020, the President formally signed H.R. 133 into law.
ABI Legislation Committee 2020 Co-Chair Corner
ABI’s Legislation Committee had a very active year in 2020. We tracked legislation and provided guidance for ABI members, presented a very well-attended webinar about chapter 12, published numerous newsletters, and hosted a well-regarded panel at the Winter Leadership Conference and a virtual happy hour for membership engagement. Information about our 2020 activities is outlined below. We believe 2021 will also have robust legislative activity, and we look forward to continuing to provide guidance and other valuable content to members.
HEALS Act Summary
The Senate GOP’s proposed coronavirus relief legislation package, commonly known as the HEALS Act, contains numerous provisions that will be of especial import to insolvency professionals. The HEALS Act is comprised of eight smaller bills targeting specific areas of concern. Please click here to find out more.
To Choose Subchapter V, or Not to Choose Subchapter V? That is the Question
As most bankruptcy practitioners know, Congress adopted the Small Business Reorganization Act of 2019 (SBRA) in August 2019.[2] It took effect on Feb. 19, 2020, and is codified as subchapter V of chapter 11, title 11, U.S. Code, 11 U.S.C. §§ 1181-1195. The purpose of this article is to provide a brief summary of the factors weighing in favor of a prospective chapter 11 debtor’s choosing to file a subchapter V case, and a frame of reference for further exploration.
COVID-19 and the Bankruptcy Code: What Could Congress Do Next?
On March 27, 2020, Congress passed the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act)[1] in order to “provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.”[2] The CARES Act made several revisions to the Bankruptcy Code, including (1) increasing the unsecured debt limit for small business debtors from $2.7 million to $7.5 million, (2) excluding the tax rebates paid to individuals from the definition of “c