S. 3823 

One Hundred Seventeenth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Monday, 

the third day of January, two thousand and twenty two 

An Act 

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

a debtor under chapter 13, and for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Bankruptcy Threshold Adjustment and Technical Corrections Act’’. 

SEC. 2. BANKRUPTCY AMENDMENTS. 

(a) DEFINITION OF SMALL BUSINESS DEBTOR.—Section 

101(51D)(B) of title 11, United States Code, is amended— 

(1) in clause (i), by inserting ‘‘under this title’’ after ‘‘affiliated debtors’’; and 

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

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

(b) ADJUSTMENTS FOR INFLATION.—Section 104 of title 11, 

United States Code, is amended— 

(1) in subsection (a), by inserting ‘‘1182(1),’’ after ‘‘707(b),’’; 

and 

(2) in subsection (b), by inserting ‘‘1182(1),’’ after ‘‘707(b),’’. 

(c) WHO MAY BE A DEBTOR UNDER CHAPTER 13.—Section 109 

of title 11, United States Code is amended by striking subsection 

(e) and inserting the following: 

‘‘(e) Only an individual with regular income that owes, on 

the date of the filing of the petition, noncontingent, liquidated 

debts of less than $2,750,000 or an individual with regular income 

and such individual’s spouse, except a stockbroker or a commodity 

broker, that owe, on the date of the filing of the petition, noncontingent, liquidated debts that aggregate less than $2,750,000 may 

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

(d) DEFINITION OF DEBTOR.—Section 1182(1) of title 11, United 

States Code, is amended to read as follows: 

‘‘(1) DEBTOR.—The term ‘debtor’— 

‘‘(A) subject to subparagraph (B), means a person 

engaged in commercial or business activities (including 

any affiliate of such person that is also a debtor under 

this title and excluding a person whose primary activity 

is the business of owning single asset real estate) that 

has aggregate noncontingent liquidated secured and 

unsecured debts as of the date of the filing of the petition 

or the date of the order for relief in an amount not more 

than $7,500,000 (excluding debts owed to 1 or more affiliates or insiders) not less than 50 percent of which arose 
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from the commercial or business activities of the debtor; 

and 

‘‘(B) does not include— 

‘‘(i) any member of a group of affiliated debtors 

under this title that has aggregate noncontingent liquidated secured and unsecured debts in an amount 

greater than $7,500,000 (excluding debt owed to 1 or 

more affiliates or insiders); 

‘‘(ii) any debtor that is a corporation subject to 

the reporting requirements under section 13 or 15(d) 

of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 

78o(d)); or 

‘‘(iii) any debtor that is an affiliate of a corporation 

described in clause (ii).’’. 

(e) TRUSTEE.—Section 1183(b)(5) of title 11, United States Code, 

is amended— 

(1) by striking ‘‘possession, perform’’ and inserting ‘‘possession— 

‘‘(A) perform’’; 

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

(A) by striking ‘‘, including operating the business of 

the debtor’’; and 

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

(3) by adding at the end the following: 

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

debtor;’’. 

(f) CONFIRMATION OF PLAN.—Section 1191(c) of title 11, United 

States Code, is amended by striking paragraph (3) and inserting 

the following: 

‘‘(3)(A) The debtor will be able to make all payments under 

the plan; or 

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

be able to make all payments under the plan; and 

‘‘(ii) the plan provides appropriate remedies, which may 

include the liquidation of nonexempt assets, to protect the 

holders of claims or interests in the event that the payments 

are not made.’’. 

(g) TECHNICAL CORRECTIONS TO THE BANKRUPTCY ADMINISTRA- TION IMPROVEMENT ACT.—Section 589a of title 28, United States 

Code is amended— 

(1) in subsection (c) by striking ‘‘subsection (a)’’ and 

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

(2) in subsection (f)(1)— 

(A) in the matter preceding subparagraph (A), by 

striking ‘‘subsections (b) and (c)’’ and inserting ‘‘subsection 

(b)(5)’’; and 

(B) in subparagraph (A), by inserting ‘‘needed to offset 

the amount’’ after ‘‘amounts’’. 

(h) EFFECTIVE DATE; APPLICABILITY.— 

(1) IN GENERAL.—Subsections (b) and (c) and the amendments made by subsections (b) and (c) shall take effect on 

the date of enactment of this Act. 

(2) RETROACTIVE APPLICATION OF CERTAIN AMENDMENTS.— 

The amendments made by subsections (a), (d), (e), and (f) 

shall apply with respect to any case that— 

(A) is commenced under title 11, United States Code, 

on or after March 27, 2020; and 
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(B) with respect to a case that was commenced on 

or after March 27, 2020 and before the date of enactment 

of this Act, is pending on the date of enactment of this 

Act. 

(3) EFFECTIVE DATE OF TECHNICAL CORRECTIONS TO BAIA.— 

The amendments made by subsection (g) shall take effect as 

if enacted on October 1, 2021. 

(i) SUNSETS.— 

(1) IN GENERAL.—Effective on the date that is 2 years 

after the date of enactment of this Act— 

(A) subsection (e) of section 109 of title 11, United 

States Code is amended to read as such subsection read 

on the day before the date of enactment of this Act; and 

(B) section 1182(1) of title 11, United States Code, 

is amended to read as follows: 

‘‘(1) DEBTOR.—The term ‘debtor’ means a small business 

debtor.’’. 

(2) AMOUNTS.—For purposes of applying subsection (e) of 

section 109 of title 11, United States Code, as amended by 

paragraph (1)(A), the amounts specified in such subsection 

shall be the amounts that were in effect on the day before 

the date of enactment of this Act. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.