Durbin, Grassley, Whitehouse, Cornyn Pass Key Reforms To Help American Businesses & Families Weather Financial Hardship
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. The bill passed unanimously in the Senate last evening.
“American families and small businesses need Congress's help to get through the pandemic and economic challenges,” said Durbin. “That’s why I’m joining my colleagues in proving our commitment to providing the tools and flexibility for them to once again be successful. Our bipartisan legislation will provide small businesses and families with more flexibility to navigate the bankruptcy system and get back on their feet.”
“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. This unanimous action in the Senate builds on this bill’s success and expands access for more small businesses to efficiently reorganize. I’m grateful for the work of my colleagues in moving this bill forward,” Grassley said.
“The pandemic and supply chain disruptions have left lots of Americans and small businesses in financial trouble. This legislation extends our improvements to the bankruptcy process for small businesses, to help business owners and their employees stay afloat as they face economic hardship. It also helps more Americans keep their homes as they go through bankruptcy,” said Whitehouse. “I’m pleased to build on the bipartisan success of my small business relief bill with Senator Grassley.”
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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