II 

117TH CONGRESS 

2D SESSION S. 3823 

To amend title 11, United States Code, to modify the eligibility requirements 

for a debtor under chapter 13, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 14, 2022 

Mr. GRASSLEY (for himself, Mr. DURBIN, Mr. WHITEHOUSE, and Mr. CORNYN) introduced the following bill; which was read twice and referred to 

the Committee on the Judiciary 

A BILL 

To amend title 11, United States Code, to modify the eligibility requirements for a debtor under chapter 13, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Bankruptcy Threshold 

5 Adjustment and Technical Corrections Act’’. 

6 SEC. 2. BANKRUPTCY AMENDMENTS. 

7 (a) CARES ACT AMENDMENT.—Section 1113(a) of 

8 the CARES Act (Public Law 116–136; 134 Stat. 310) is 

9 amended by striking paragraph (5). 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•S 3823 IS

1 (b) DEFINITION OF SMALL BUSINESS DEBTOR.— 

2 Section 101(51D)(B)(iii) of title 11, United States Code, 

3 is amended by striking ‘‘an issuer’’ and all that follows 

4 and inserting ‘‘a corporation described in clause (ii).’’. 

5 (c) ADJUSTMENTS FOR INFLATION.— 

6 (1) IN GENERAL.—Section 104 of title 11, 

7 United States Code, is amended— 

8 (A) in subsection (a), by inserting 

9 ‘‘1182(1),’’ after ‘‘707(b),’’; and 

10 (B) in subsection (b), by inserting 

11 ‘‘1182(1),’’ after ‘‘707(b),’’. 

12 (2) NO ADJUSTMENTS IN 2022.—With respect 

13 to the adjustment of dollar amounts required on 

14 April 1, 2022, under section 104 of title 11, United 

15 States Code, as amended by paragraph (1), the Ju16 dicial Conference of the United States shall not ad17 just the dollar amount in effect under section 109(e) 

18 or 1182(1) of title 11, United States Code. 

19 (d) WHO MAY BE A DEBTOR UNDER CHAPTER 13.— 

20 Section 109 of title 11, United States Code is amended 

21 by striking subsection (e) and inserting the following: 

22 ‘‘(e) Only an individual with regular income that 

23 owes, on the date of the filing of the petition, noncontin24 gent, liquidated debts of less than $2,750,000 or an indi25 vidual with regular income and such individual’s spouse, 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•S 3823 IS

1 except a stockbroker or a commodity broker, that owe, on 

2 the date of the filing of the petition, noncontingent, liq3 uidated debts that aggregate less than $2,750,000 may 

4 be a debtor under chapter 13 of this title.’’. 

5 (e) DEFINITION OF DEBTOR.—Section 1182(1)(B) of 

6 title 11, United States Code, is amended— 

7 (1) in clause (i), by inserting ‘‘under this title’’ 

8 after ‘‘affiliated debtors’’; and 

9 (2) in clause (iii), by striking ‘‘an issuer’’ and 

10 all that follows and inserting ‘‘a corporation de11 scribed in clause (ii).’’. 

12 (f) TRUSTEE.—Section 1183(b)(5) of title 11, United 

13 States Code, is amended— 

14 (1) by striking ‘‘possession, perform’’ and in15 serting ‘‘possession— 

16 ‘‘(A) perform’’; 

17 (2) in subparagraph (A), as so designated— 

18 (A) by striking ‘‘, including operating the 

19 business of the debtor’’; and 

20 (B) by adding ‘‘and’’ at the end; and 

21 (3) by adding at the end the following: 

22 ‘‘(B) be authorized to operate the business 

23 of the debtor;’’. 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•S 3823 IS

1 (g) CONFIRMATION OF PLAN.—Section 1191(c) of 

2 title 11, United States Code, is amended by striking para3 graph (3) and inserting the following: 

4 ‘‘(3)(A) The debtor will be able to make all pay5 ments under the plan; or 

6 ‘‘(B)(i) there is a reasonable likelihood that the 

7 debtor will be able to make all payments under the 

8 plan; and 

9 ‘‘(ii) the plan provides appropriate remedies, 

10 which may include the liquidation of nonexempt as11 sets, to protect the holders of claims or interests in 

12 the event that the payments are not made.’’. 

13 (h) TECHNICAL CORRECTIONS TO THE BANKRUPTCY

14 ADMINISTRATION IMPROVEMENT ACT.—Section 589a of 

15 title 28, United States Code is amended— 

16 (1) in subsection (c) by striking ‘‘subsection 

17 (a)’’ and inserting ‘‘subsections (a) and (f)’’; and 

18 (2) in subsection (f)(1)— 

19 (A) in the matter preceding subparagraph 

20 (A), by striking ‘‘subsections (b) and (c)’’ and 

21 inserting ‘‘subsection (b)(5)’’; and 

22 (B) in subparagraph (A), by inserting 

23 ‘‘needed to offset the amount’’ after 

24 ‘‘amounts’’. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS