Bankruptcy Threshold Adjustment and Technical Corrections Act 2022
On June 21, 2022, President Biden signed into law the “Bankruptcy Threshold Adjustment and Technical Corrections Act”, which was passed by the US House on June 7th and by the Senate back in April. The Act increases the debt limit for individuals seeking relief under Chapter 13 to a combined amount of $2,750,000 in liquidated, noncontingent debt. This new combined amount removes the distinction between secured and unsecured debts for the purposes of determining if the Debtor is under the debt limit. This change as to Chapter 13 cases is effective immediately but the Act does sunset 2 years after the enactment date.
The Act also adjusts the amount of debt for Subchapter V debtors to $7,500,000, and makes some technical corrections to code sections relating to those Chapter 11 cases.
The text of the Act can be found here: Text - S.3823 - 117th Congress (2021-2022): Bankruptcy Threshold Adjustment and Technical Corrections Act | Congress.gov | Library of Congress