The American Bankruptcy Institute (ABI) applauds the House of Representatives passage (392-21) yesterday of the S.3823, the “Bankruptcy Threshold Adjustment and Technical Corrections Act.”

Wednesday, June 8, 2022

The Senate on April 7 had passed the legislation introduced by Sen. Charles Grassley (R-Iowa) to raise the debt limit back to $7.5 million for small businesses electing to file for bankruptcy under subchapter V of chapter 11. Consistent with the recommendations of ABI’s Commission on Consumer Bankruptcy, the substitute also raises the debt limit for individual chapter 13 filings to $2.75 million and removes the distinction between secured and unsecured debt for that calculation. All provisions of the legislation will sunset two years after enactment. The legislation will now be sent to President Biden to be signed into law.