Bipartisan Cline Bill Signed Into Law
A bipartisan bill introduced by Virginia 6th District Rep. Ben Cline, R-Botetourt, and New York 10th District Rep. Jerry Nadler, D-New York City, was signed into law by President Joe Biden on March 27, according to the U.S. federal legislative information system.
The bill, the COVID–19 Bankruptcy Relief Extension Act of 2021, builds on both the CARES Act of 2020 and a previous bipartisan Cline bill.
The new law extends a more streamlined and cost-effective path for businesses to declare bankruptcy with up to $7.5 million in debt for another year. The CARES Act previously raised the debt limit from $2.7 million to $7.5 million for one year and the cap was set to return back to $2.7 million in March.