Administrative Order #146 on Adoption of Bankruptcy Rule 1020 to Reflect the Bankruptcy Threshold And Technical Corrections Act (BTATCA) Implementation
Administrative Order #146 on Adoption of Bankruptcy Rule 1020 to Reflect the Bankruptcy Threshold And Technical Corrections Act (BTATCA) Implementation
The Bankruptcy Threshold and Technical Corrections Act (BTATCA), Pub. L. 117-151 reinstates the total debt limit for determining eligibility of a debtor to proceed under subchapter V of chapter 11 to $7,500,000 – the amount previously in effect under the CARES Act. Interim Rule 1020 was revised to implement the CARES Act debt limit from March 27, 2020 to March 27, 2022, when the relevant CARES Act provisions expired. The BTATCA restores the $7,500,000 limit retroactively for cases commenced on or after March 27, 2020 through June 21, 2024 (two years after the date of enactment of the BTATCA), and Interim Rule 1020 is amended accordingly. The Advisory Committee on Bankruptcy Rules recommends that courts adopt Interim Rule 1020 as a local rule while the BTATCA subchapter V limit is in effect. You can access the Administrative Order #146 here.