Rountree Leitman & Klein, LLC: COVID-19 Updates
Today, the Supreme Court of Georgia extended its judicial emergency through May 13, 2020. This means that many deadlines, statutes of limitation and the like are stayed. Parties may file motions and other documents with the courts, but generally state courts are only hearing emergency and criminal matters. Unlike the state courts in Georgia, most of the Bankruptcy Courts, including the Northern District of Georgia, continue to operate during the COVID-19 pandemic. Hearings are now primarily telephonic. As such, bankruptcy cases may be filed and will continue to proceed for the foreseeable future.
In late February, the Small Business Reorganization Act of 2019 (the “Act”) became effective. Small businesses may now reorganize under Subchapter V of Chapter 11 of the Bankruptcy Code. This is an entirely new type of Chapter 11 case that is designed to be more streamlined, less expensive, and allow for easier confirmation of a reorganization plan for small businesses. In light of the COVID-19 pandemic, U.S. Congress passed the COVID-19 stimulus package in late March 2020. The stimulus package temporarily increases the eligible debt limit for a small business to $7.5 million from the previous $2.725 million limit.
All types of businesses are suffering due to the COVID-19 pandemic and the various shelter in place orders implemented by state governors, including here in Georgia. The bankruptcy process is intimidating and confusing. Our attorneys at Rountree Leitman & Klein have decades of experience navigating the complexities of bankruptcy law, including the new Subchapter V provision for small businesses filings. If you are a small business or have business debt we remain available to answer any questions you might have regarding the bankruptcy process, including the Subchapter V filing process.
During the uncertainty of the COVID-19 pandemic we will continue to provide our clients with excellent legal advice and customer service, with social distancing in place. We are here to meet your needs and be accessible to you as we always have been via telephone, video conferencing, email, and in-person meetings (by appointment). We continue to accept new clients. Our main number, 404-418-5680 will continue to be answered by our receptionist. We thank you for giving us the continued opportunity to serve.