Durbin, Grassley, Whitehouse, Cornyn Bill to Help Small Businesses and Families in Bankruptcy Heads to President Biden's Desk
Legislation helps small businesses stay open and individuals keep their homes as they find their financial footing through bankruptcy
WASHINGTON – U.S. Senate Majority Whip Dick Durbin (D-IL), Chair of the Senate Judiciary Committee, and Senator Chuck Grassley (R-IA), Ranking Member of the Senate Judiciary Committee, along with Senators Sheldon Whitehouse (D-RI), and John Cornyn (R-TX), applauded passage of their bipartisan legislation to help small businesses and individuals stay afloat during bankruptcy in the House of Representatives last night. The bill, which cleared the House on a vote of 392-21, was already passed unanimously in the Senate and now heads to President Biden’s desk to be signed into law.
“American families and small businesses facing economic hardship need Congress's help,” said Durbin. “Our bipartisan legislation will provide small businesses and families with 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 be successful. ”
“Small businesses that fall on hard times should not face a mountain of paperwork designed for major corporations in order to reorganize and continue operating.? Senator Whitehouse and I passed the Small Business Reorganization Act in 2019 to streamline and eliminate barriers in the bankruptcy process for small businesses.?In a broadly bipartisan manner, Congress has acted to build on the success of this policy to help more small businesses stay afloat – especially in the face of challenging economic headwinds,” Grassley said.
“This is a win for the small businesses and working families trying to regain their financial footing after a difficult few years,” said Whitehouse. “We need to do everything we can to help Americans recover from the pandemic and the economic turmoil it triggered. That’s why I’m glad our bipartisan bill will soon be the law of the land.”
The Bankruptcy Threshold Adjustment and Technical Corrections Act would aid small businesses by extending for two years an increase of the debt limit threshold for expedited Ch. 11 bankruptcy filings from $2.7 million to $7.5 million. It would also give substantial assistance to families struggling with high levels of mortgage, student loan, and medical debt by altering and increasing the debt limit for consumers to file for Ch. 13 bankruptcy repayment plans.
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