CARES Act: Revised Sections of the Bankruptcy Code to Mitigate Effects of COVID-19 | Practical Law
On March 27, 2020, Congress passed and President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136 (H.R. 748)), which is the third major piece of legislation enacted in response to the COVID-19 outbreak in the US. The CARES Act is intended to provide economic relief to individuals and businesses facing economic hardship due to the outbreak. As part of the relief, the CARES Act temporarily amends the Bankruptcy Code by raising the debt threshold for small businesses under the Small Business Reorganization Act (SBRA), and modifying certain provisions of Chapters 7 and 13.