Grassley-led bankruptcy bill set to become law

WASHINGTON- Bipartisan legislation led by Senators Chuck Grassley (R-Iowa), Sheldon Whitehouse (DR.I.), Dick Durbin (D-Ill.) and John Cornyn (R-Texas) to help small businesses and individuals stay afloat while bankruptcy is set to become law after clearing the House of Representatives on a 392-21 vote last night. The Bankruptcy Threshold Adjustment and Technical Corrections Act (S.3823) has already passed unanimously in the Senate and is now heading to President Biden’s desk to be signed into law.

“Small businesses going through tough times shouldn’t have to deal with a mountain of paperwork designed for big businesses to reorganize and keep running. Senator Whitehouse and I passed the Small Business Reorganization Act in 2019 to streamline and remove barriers to the bankruptcy process for small businesses. In a largely bipartisan fashion, Congress has moved to build on the policy’s success to help more small businesses stay afloat. – especially in the face of difficult economic headwinds,” Grassley said.

“This is a win for small businesses and working families trying to get back on their feet after a few tough years,” said White House. “We must do all we can to help Americans recover from the pandemic and the economic turmoil it has unleashed. That is why I am happy that our bipartisan bill will soon be the law of the land.

“American families and small businesses facing economic hardship need help from Congress,” said Durbin. “Our bipartisan legislation will give small businesses and families more flexibility to navigate the bankruptcy system and get back on their feet. I look forward to President Biden signing the bill into law as soon as possible so they can have the tools they need to succeed.

Whitehouse and Grassley spent the Small Business Reorganization Act in 2019 to establish simplified bankruptcy procedures that help small business owners keep their business afloat and preserve jobs.? The 2020 CARES Act temporarily allowed more small businesses to qualify for these streamlined procedures by increasing the small business debt limit from $2.7 million to $7.5 million. This increase expired on March 27, 2022.?

The new legislation provides a two-year extension of the $7.5 million CARES Act increase and makes minor technical fixes to the Small Business Reorganization Act. more individuals the opportunity to try to save their homes from foreclosure.?