On September 19, 2022, a panel of three appellate judges for the 3rd Circuit heard oral argument in a closely-watched case, In re LTL Management LLC, Case No. 22-2003.

On June 7, 2022, Congress passed (in a 392-21 vote) the “Bankruptcy Threshold Adjustment and technical Corrections Act,” which raises the debt limit back to $7.5 million for businesses electing treatment under the Small Business Reorganization Act (“SBRA”), codified under Subchapter V of Chapter 11.

President Biden signed the COVID-19 Bankruptcy Relief Extension Act on Saturday, March 27, 2021 to extend critical bankruptcy relief provisions under the CARES Act that were set to expire on the same day. The bipartisan bill was introduced in late February 2021 and was passed by Congress just one day before the President signed it into law.

On February 25, 2021, U.S. Senators Dick Durbin and Chuck Grassley introduced the COVID-19 Bankruptcy Relief Extension Act to extend certain bankruptcy relief provisions enacted as part of the March 2020 CARES Act and December 2020 omnibus appropriations bill.

The week of Christmas, Congressional leaders released the text of the new $900 billion COVID-19 relief package. After a week of push-back, President Trump signed the bill on Sunday evening. In addition to the $600 per adult stimulus payment, additional PPP funding, rental assistance, and school/college aid, the bill also provides additional updates on certain bankruptcy provisions. Those changes, which are spelled out in Division FF of the bill “Title X-Bankruptcy Relief,” include the following:

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Small Business Reorganization Act of 2019 (SBRA) provide useful options for small business debtors (i.e. those whose debts are less than $7.5 million) considering Chapter 11 bankruptcy protection. However, to reap the benefits of these Acts, small business debtors may need to act quickly, as some of the key benefits of the CARES Act are scheduled to sunset on March 27, 2021.

Following Wednesday night’s late-night Senate passage of the Coronavirus Aid, Relief and Economic Security (CARES Act), the bill was sent to the House of Representatives. The House will convene Friday morning at 9:00 a.m. to begin consideration of the CARES Act (H.R. 748).

The CARES Act expands earlier versions of two pieces of legislation to help individuals and businesses harmed by the COVID-19 pandemic.

The U.S. Supreme Court set new precedent on January 14, 2020 when it decided that a ruling from a bankruptcy court enforcing a Chapter 11 automatic stay is a final order that must be appealed within 14 days as set forth in the Federal Rules of Bankruptcy Procedure.

On August 1, 2019, the U.S. Senate passed the “Family Farmer Relief Act of 2019” (H.R. 2336), bipartisan legislation which cleared the U.S. House of Representatives in June. The President is expected to sign the Act into law, and it would go into effect on the date it is signed. The Family Farmer Relief Act of 2019 significantly increases the “debt limit” for agricultural producers seeking to reorganize under Chapter 12 of the U.S.

In October 2018, the Wisconsin Court of Appeals reversed a decision by Circuit Court Judge Clare Fiorenza that previously granted summary judgment on behalf of certain defendants. The plaintiff in the case is the Committee of Unsecured Creditors, which represents the interests of approximately 140 unsecured creditors in the Chapter 11 bankruptcy case of Great Lakes Quick Lube LP.