117TH CONGRESS 

2D SESSION S. 3823 

AN ACT 

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, 
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†S 3823 ES

1 SECTION 1. SHORT TITLE. 

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

3 Adjustment and Technical Corrections Act’’. 

4 SEC. 2. BANKRUPTCY AMENDMENTS. 

5 (a) DEFINITION OF SMALL BUSINESS DEBTOR.— 

6 Section 101(51D)(B) of title 11, United States Code, is 

7 amended— 

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

9 after ‘‘affiliated debtors’’; and 

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

11 all that follows and inserting ‘‘a corporation de12 scribed in clause (ii).’’. 

13 (b) ADJUSTMENTS FOR INFLATION.—Section 104 of 

14 title 11, United States Code, is amended— 

15 (1) in subsection (a), by inserting ‘‘1182(1),’’ 

16 after ‘‘707(b),’’; and 

17 (2) in subsection (b), by inserting ‘‘1182(1),’’ 

18 after ‘‘707(b),’’. 

19 (c) 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, 

26 except a stockbroker or a commodity broker, that owe, on 
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1 the date of the filing of the petition, noncontingent, liq2 uidated debts that aggregate less than $2,750,000 may 

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

4 (d) DEFINITION OF DEBTOR.—Section 1182(1) of 

5 title 11, United States Code, is amended to read as fol6 lows: 

7 ‘‘(1) DEBTOR.—The term ‘debtor’— 

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

9 person engaged in commercial or business ac10 tivities (including any affiliate of such person 

11 that is also a debtor under this title and exclud12 ing a person whose primary activity is the busi13 ness of owning single asset real estate) that has 

14 aggregate noncontingent liquidated secured and 

15 unsecured debts as of the date of the filing of 

16 the petition or the date of the order for relief 

17 in an amount not more than $7,500,000 (ex18 cluding debts owed to 1 or more affiliates or in19 siders) not less than 50 percent of which arose 

20 from the commercial or business activities of 

21 the debtor; and 

22 ‘‘(B) does not include— 

23 ‘‘(i) any member of a group of affili24 ated debtors under this title that has ag25 gregate noncontingent liquidated secured 
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1 and unsecured debts in an amount greater 

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

3 or more affiliates or insiders); 

4 ‘‘(ii) any debtor that is a corporation 

5 subject to the reporting requirements 

6 under section 13 or 15(d) of the Securities 

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

8 78o(d)); or 

9 ‘‘(iii) any debtor that is an affiliate of 

10 a corporation described in clause (ii).’’. 

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

12 States Code, is amended— 

13 (1) by striking ‘‘possession, perform’’ and in14 serting ‘‘possession— 

15 ‘‘(A) perform’’; 

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

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

18 business of the debtor’’; and 

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

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

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

22 of the debtor;’’. 

23 (f) CONFIRMATION OF PLAN.—Section 1191(c) of 

24 title 11, United States Code, is amended by striking para25 graph (3) and inserting the following: 
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1 ‘‘(3)(A) The debtor will be able to make all pay2 ments under the plan; or 

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

4 debtor will be able to make all payments under the 

5 plan; and 

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

7 which may include the liquidation of nonexempt as8 sets, to protect the holders of claims or interests in 

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

10 (g) TECHNICAL CORRECTIONS TO THE BANKRUPTCY

11 ADMINISTRATION IMPROVEMENT ACT.—Section 589a of 

12 title 28, United States Code is amended— 

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

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

15 (2) in subsection (f)(1)— 

16 (A) in the matter preceding subparagraph 

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

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

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

20 ‘‘needed to offset the amount’’ after 

21 ‘‘amounts’’. 

22 (h) EFFECTIVE DATE; APPLICABILITY.— 

23 (1) IN GENERAL.—Subsections (b) and (c) and 

24 the amendments made by subsections (b) and (c) 
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1 shall take effect on the date of enactment of this 

2 Act. 

3 (2) RETROACTIVE APPLICATION OF CERTAIN

4 AMENDMENTS.—The amendments made by sub5 sections (a), (d), (e), and (f) shall apply with respect 

6 to any case that— 

7 (A) is commenced under title 11, United 

8 States Code, on or after March 27, 2020; and 

9 (B) with respect to a case that was com10 menced on or after March 27, 2020 and before 

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

12 the date of enactment of this Act. 

13 (3) EFFECTIVE DATE OF TECHNICAL CORREC14 TIONS TO BAIA.—The amendments made by sub15 section (g) shall take effect as if enacted on October 

16 1, 2021. 

17 (i) SUNSETS.— 

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

19 2 years after the date of enactment of this Act— 

20 (A) subsection (e) of section 109 of title 

21 11, United States Code is amended to read as 

22 such subsection read on the day before the date 

23 of enactment of this Act; and 

24 (B) section 1182(1) of title 11, United 

25 States Code, is amended to read as follows: 
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1 ‘‘(1) DEBTOR.—The term ‘debtor’ means a 

2 small business debtor.’’. 

3 (2) AMOUNTS.—For purposes of applying sub4 section (e) of section 109 of title 11, United States 

5 Code, as amended by paragraph (1)(A), the amounts 

6 specified in such subsection shall be the amounts 

7 that were in effect on the day before the date of en8 actment of this Act. 

Passed the Senate April 7, 2022. 

Attest: 

Secretary. 
117TH CONGRESS 

2D SESSION S. 3823 

AN ACT 

To amend title 11, United States Code, to modify 

chapter 13, and for other purposes. the eligibility requirements for a debtor under