The latest COVID-19 relief legislation provided some additional aid and clarity for a select group of debtors and left many other questions unanswered. While most of the attention was directed to restarting the PPP payments and other benefits to individuals, the law makes changes to the Bankruptcy Code as well.
Small business debtors (plus family farmers and Chapter 13 debtors) can now obtain PPP loans while in bankruptcy while other Chapter 11 debtors cannot. Landlords and suppliers that provided deferred payment agreements will have limited protection from preference actions.
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