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Court Entry of Standing Order 22-8—Order Rescinding Standing Order 21-6 Due to Expiration of the COVID-19 Bankruptcy Relief Act of 2021 as to CARES Act-Related Termination Date Changes to Interim Bankruptcy Rule 1020(a)

Wednesday, March 30, 2022

Standing Order No. 22-8---Update to EDVA Local Bankruptcy Rules Exhibit 12-Interim Amendments to Federal Rules of Bankruptcy Procedure, Rule 1020(a). The Court’s Standing Order No. 20-16 initially adopted a temporary revision to Interim Bankruptcy Rule 1020(a), as to an extension of the termination date set forth therein through the CARES Act (Pub. L. No. 116-136, 134 Stat. 281). That extension period was further extended through the March 27, 2021, enactment into law of the COVID-19 Bankruptcy Relief Extension Act (“Extension Act”) of 2021 (Pub. L. No. 117-5, 135 Stat. 249). The Extension Act amended the CARES Act (to extend the termination date for the definition of a Bankruptcy Code chapter 11 Subchapter V small business debtor, and for other purposes). Unless further extended by an Act of Congress, the Extension Act was due to expire one year after its date of enactment—that is, after March 27, 2022. That Act’s expiration date, however, was not extended by Congress. Accordingly, pursuant to the entry of Standing Order 22-8, Standing Order 21-6, which effected the Court’s adoption of the temporary amendment to Interim Bankruptcy Rule 1020(a), terminated after that date. For this reason, Standing Order 21-6 is rescinded. For Bankruptcy Code chapter 11 Subchapter V petition filings, the debt limit also reverts back from $7,500,000 to $2,725,625. On April 1, 2022, however, that debt limit will increase to $3,024,725, per the referenced Bankruptcy Code Section 101(51D) definition of small business debtor adjustment set forth in the attachment to the Clerk of Court’s March 10, 2022, Public Notice. In addition, Standing Order 22-8 provides information of interest regarding the status Official Bankruptcy Form 201.

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