Covid-19 Bankruptcy Relief Extension Act of 2021

Floor Speech

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Mr. NADLER. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 1651) to amend the CARES Act to extend the sunset for the definition of a small business debtor, and for other purposes, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 1651

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``COVID-19 Bankruptcy Relief Extension Act of 2021''. SEC. 2. EXTENSIONS.

(a) In General.--Section 1113 of the CARES Act (Public Law 116-136) is amended--

(1) in subsection (a)(5) (11 U.S.C. 1182 note), by striking ``1 year'' and inserting ``2 years''; and

(2) in subsection (b)(2)(B) (11 U.S.C. 101 note), by striking ``1 year'' and inserting ``2 years''.

(b) Modification of Plan After Confirmation.--

(1) Section 1329(d)(1) of title 11, United States Code, is amended, in the matter preceding subparagraph (A), by striking ``this subsection'' and inserting ``the COVID-19 Bankruptcy Relief Extension Act of 2021''.

(2) Section 1113(b)(1)(D)(ii) of the CARES Act (11 U.S.C. 1329 note) is amended by striking ``this Act'' and inserting ``the COVID-19 Bankruptcy Relief Extension Act of 2021''.

(c) Bankruptcy Relief.--Section 1001 of division FF of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is amended by striking ``the date that is 1 year after the date of enactment of this Act'' each place the term appears and inserting ``March 27, 2022''. SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled ``Budgetary Effects of PAYGO Legislation'' for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.

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Mr. NADLER. 1651.

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Mr. NADLER. Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, H.R. 1651, the COVID-19 Bankruptcy Relief Extension Act of 2021, is bipartisan legislation to temporarily extend, until March 27, 2022, the COVID-19 bankruptcy relief provisions enacted as part of the CARES Act in the December 2020 omnibus appropriations bill.

Since the bankruptcy provisions of the CARES Act will expire next week, it is urgent for Congress to ensure that families and small businesses do not lose access to these economic lifelines.

These provisions were enacted last year to provide critical relief to families and small businesses forced into bankruptcy because of the ongoing pandemic. For example, they help ensure that Federal COVID- related relief payments are used by families to get through this pandemic instead of being seized by creditors. They also help people stay in their homes and ensure that their utilities are not shut off.

In addition, these provisions protect individuals and creditors alike from the effects of the pandemic derailing the court-ordered repayment plans that promise a way out of chapter 13 bankruptcy.

They will also allow more small businesses to take advantage of the streamlined process established by the Small Business Reorganization Act.

Extending these necessary protections until March of next year will provide much-needed certainty that the bankruptcy system will remain responsive to debtors and creditors alike during this extraordinarily disruptive crisis.

I thank Mr. Cline for his work with me on this bill, and for his work to ensure that small businesses have meaningful access to the bankruptcy process.
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Mr. NADLER. Madam Speaker, I have no further speakers.

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Mr. NADLER. Madam Speaker, this bill will provide critical relief to the small businesses and families forced into bankruptcy because of the ongoing pandemic. These provisions help make sure that the pandemic does not derail the path to a fresh start that the bankruptcy code promises for individuals and businesses alike.

As Mr. Issa said, this is bipartisan legislation. I am aware of no opposition to it whatsoever.

Madam Speaker, I hope all of my colleagues will support this urgently needed bill, and I yield back the balance of my time.

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