United States District for the District of Columbia Judge Dabney Friedrich, threw out the U.S. Centers for Disease Control and Prevention’s nationwide moratorium on evictions, blocking enforcement. Judge Friedrich explained that the plain language in the Public Health Service Act blocks the moratorium.
We provide insight and analysis on complex issues affecting distressed businesses or funds throughout the United States and abroad. Our Bankruptcy team is available to speak on various bankruptcy issues and claims. Contact us to learn more.
In April 2021, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium. The CFPB’s rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium.
The Small Business Administration (the “SBA”) on April 6, 2021, issued new guidance on the Payroll Protection Program (the “PPP”) for entities in bankruptcy that wish to participate in the PPP. Moreover, any debtor in a bankruptcy case, or debtor with a part-owner (20% or greater) in bankruptcy, who is considering applying for a PPP loan cannot be “presently involved in a bankruptcy” to be eligible for a PPP loan.
While there was no shortage of mega-bankruptcy filings last year, bankruptcy attorneys continue to scratch their heads at the absence of small-to-midsized corporate bankruptcy filings. There are several reasons for that absence. The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) provided meaningful assistance to small business owners. In addition, economic stimulus checks provided some relief. Moratoriums were placed on federally guaranteed loans, and many states and cities halted evictions actions. With the change in administration, many are likely still trying to survive long enough for another round of stimulus.
Millions of borrowers continue to miss payments on personal loans, including auto, home and student loans. For the most part, these missed payments are consensual between the lender and the borrower. Otherwise, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) placed several temporary moratoriums on foreclosures and evictions of federally-backed loans. Additionally, most, if not all of the larger states and/or cities have instituted statewide or citywide moratoriums or limitations on trials, hearings and eviction procedures.