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NYSB: CARES Act Changes and Changes to Official Forms
On March 27, Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Section 1113 of that legislation made several changes to the Bankruptcy Code, most of them temporary, to provide financial assistance during the coronavirus crisis.
On March 27, Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Section 1113 of that legislation made several changes to the Bankruptcy Code, most of them temporary, to provide financial assistance during the coronavirus crisis.
The enactment of the CARES Act requires one-year amendments to five official forms to account for a new definition of “debtor” applicable to Subchapter V of Chapter 11 and a new exclusion from the definitions of “current monthly income” and “disposable income.” The CARES Act raises the maximum debt level to qualify from $2,725,625 to $7,500,000 to cases filed under Subchapter V of Chapter 11. Because the Act took effect immediately upon enactment and its bankruptcy provisions are of limited duration, the Advisory Committee on Bankruptcy Rules has exercised the authority delegated to it by the Judicial Conference to make conforming technical changes to five bankruptcy forms (Official Forms 101, 122A-1, 122B, 122C-1, and 201). Please see below for a link to the amended forms.
Official Form 101, Committee Note
Official Form 201, Committee Note
Official Forms 122A-1, 122B, 122C-1, Committee Note for 122 Forms