CARES Act – Summary of Insolvency-Related Provisions

As a member of the Insolvency Law Committee, Business Law Section of California Lawyers Association, Chris Hughes helped to draft a post, "CARES Act – Summary of Insolvency-Related Provisions,” on the association’s blog. The post specifies which provisions in the CARES Act are relevant to insolvency professionals, including several key revisions to the Bankruptcy Code. Chief among these revisions are the increase in small business debtor combined debt eligibility limit in Subchapter V bankruptcy cases, exclusion of federal coronavirus related assistance from income, and modification of a Chapter 13 plan due to coronavirus related financial hardship, upon which the post provides further discussion. Finally, the post notes that the CARES Act allows students to defer student loan payments and provides relief from foreclosure to homeowners.