Bradley attorney James Bailey was quoted in Bloomberg Law on an expiring COVID-19-era measure that lets small businesses with up to $7.5 million in debt file Chapter 11 bankruptcy under a new, streamlined process. The debt cap, originally $2.7 million, was temporarily raised last year to allow struggling business owners to use bankruptcy measures to deal with the pandemic's economic fallout. The threshold is set to drop back to the original cap on March 27 unless lawmakers extend it.
For small businesses in distress, it’s “critical” that Congress extend the $7.5 million threshold, said Bailey.
The original article, "Expiring Debt Cap to Limit Small Business Bankruptcy Fast Lane," appeared in Bloomberg Law on March 3, 20201.