This bill temporarily revises bankruptcy provisions related to a lease of nonresidential real property. Specifically, if a Chapter 11 small business reorganization bankruptcy debtor is experiencing material financial hardship due to the COVID-19 (i.e., coronavirus disease 2019) pandemic, a court may extend the time the debtor may pay rent on a nonresidential real property from 60 days to 120 days. Additionally, businesses impacted by the COVID-19 pandemic have an additional 90 days to determine whether to keep or end a nonresidential lease agreement. The bill also prohibits a bankruptcy trustee from voiding transfers of the debtor's interest due to the payment of certain rental and supplier arrearages. These provisions have a two-year sunset.
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Timeline
Introduced in Senate
Read twice and referred to the Committee on the Judiciary.
Introduced in Senate
Read twice and referred to the Committee on the Judiciary.
Finance and Financial Sector
BankruptcyCardiovascular and respiratory healthContracts and agencyEmergency medical services and trauma careInfectious and parasitic diseasesLandlord and tenant
A bill to amend title 11, United States Code, to change the treatment of certain rental obligations during bankruptcy.
USA116th CongressS-4479| Senate
| Updated: 8/6/2020
This bill temporarily revises bankruptcy provisions related to a lease of nonresidential real property. Specifically, if a Chapter 11 small business reorganization bankruptcy debtor is experiencing material financial hardship due to the COVID-19 (i.e., coronavirus disease 2019) pandemic, a court may extend the time the debtor may pay rent on a nonresidential real property from 60 days to 120 days. Additionally, businesses impacted by the COVID-19 pandemic have an additional 90 days to determine whether to keep or end a nonresidential lease agreement. The bill also prohibits a bankruptcy trustee from voiding transfers of the debtor's interest due to the payment of certain rental and supplier arrearages. These provisions have a two-year sunset.
BankruptcyCardiovascular and respiratory healthContracts and agencyEmergency medical services and trauma careInfectious and parasitic diseasesLandlord and tenant