CARES Act & Bankruptcy Attorney in Hackensack
Bankruptcy Assistance During the COVID-19 Pandemic
Signed into law on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act went into effect on the same day. The historic legislation amounted to nearly $2 trillion in economic relief for various sectors of the United States’ economy, including direct aid to individuals and businesses who have been among the hardest hit in the economic fallout caused by statewide closures of non-essential businesses and stay-at-home orders.
Since March 27, 2020, the Cares Act has been amended several times. Despite this, you may still have been and continue to be suffering economic losses due to your business’ closure or loss of income. While it’s a difficult consideration, you may also be among those affected who are now considering filing for bankruptcy protection for the first time, or those already in bankruptcy wondering how the Cares Act legislation applies to you. At The Law Office of Marc G. Alster, our bankruptcy attorney, Marc G. Alster in Hackensack is fully familiar with how the CARES Act can provide valuable financial assistance to those suffering, and related legal guidance and assistance during these unprecedented times.
The CARES Act Can Expand small business owners' Potential for Debt Relief through Bankruptcy
If you’re a small business owner, one of the key bankruptcy features of the CARES Act was an expansion of Chapter 11 to help small businesses more easily qualify for Chapter 11 protection. Keep in mind, however, that most changes to the bankruptcy law and policies Under The CARES Act were temporary and expired on or before March 27nd 2022.
The CARES Act provided an easier and less expensive/streamlined option for more small businesses to reorganize their debt under Chapter 11 when they owed a total of less than $7.5 million of secured and unsecured debt, as opposed to the approximate 2.7 million of secured and unsecured debt limit that existed under subchapter V of the Small Business Reorganization Act (hereinafter "Title V") before The Cares Act amendments went into effect in the spring of 2020.
As with all Chapter 11 business bankruptcies, small business owners are able to maintain control of their company's operations throughout the bankruptcy reorganization process if successful; but under Title V this is much less expensive and easier. On March 27, 2022 the increased $7.5 million secured and unsecured business' debt limit under The Cares Act expired and reverted back to the pre-Cares Act limit. As of April 1, 2022 the secured and unsecured debt limit for the streamlined/easier bankruptcy process under Title V is $3,024,725. However the US Congress is actively debating and I believe is expected to pass a bill into law that will permanently increase the secured and unsecured debt limits back to the $7.5 million limit established under the The Cares Act.
Do You Need Assistance with a Bankruptcy Matter During This Time?
If you’re in need of legal assistance for a bankruptcy-related problem during the COVID-19 pandemic or even after the CARES Act no longer remains in effect, The Law Office of Marc G. Alster can help. Mr. Alster has more than 30 years of experience helping people like you find solutions to their financial problems through bankruptcy on non-bankruptcy resolutions.
While you may be facing unprecedented career and/or non-career related financial stress in your life, the Cares Act amendments to the small business reorganization act of 2019 can still make matters easier on you and your family. Find out how you may benefit from the CARES Act bankruptcy-related provisions in this legislation by reaching out to bankruptcy attorney, Marc G. Alster in Hackensack today.