I 
117TH CONGRESS 
2D SESSION 
H. R. 7494 
To amend title 11, United States Code, to modify the eligibility requirements 
for a debtor under chapter 13, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 11, 2022 
Mr. NEGUSE (for himself and Mr. CLINE) introduced the following bill; which 
was referred to the Committee on the Judiciary 
A BILL 
To amend title 11, United States Code, to modify the eligi-
bility requirements for a debtor under chapter 13, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives 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— 
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(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 de-
scribed 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, noncontin-
gent, liquidated debts of less than $2,750,000 or an indi-
vidual 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, liq-
uidated 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 fol-
lows: 
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‘‘(1) DEBTOR.—The term ‘debtor’— 
‘‘(A) subject to subparagraph (B), means a 
person engaged in commercial or business ac-
tivities (including any affiliate of such person 
that is also a debtor under this title and exclud-
ing a person whose primary activity is the busi-
ness 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 (ex-
cluding debts owed to 1 or more affiliates or in-
siders) not less than 50 percent of which arose 
from the commercial or business activities of 
the debtor; and 
‘‘(B) does not include— 
‘‘(i) any member of a group of affili-
ated debtors under this title that has ag-
gregate 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 
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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 in-
serting ‘‘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 para-
graph (3) and inserting the following: 
‘‘(3)(A) The debtor will be able to make all pay-
ments 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 
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‘‘(ii) the plan provides appropriate remedies, 
which may include the liquidation of nonexempt as-
sets, to protect the holders of claims or interests in 
the event that the payments are not made.’’. 
(g) TECHNICAL CORRECTIONS TO THE BANKRUPTCY 
ADMINISTRATION 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 sub-
sections (a), (d), (e), and (f) shall apply with respect 
to any case that— 
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(A) is commenced under title 11, United 
States Code, on or after March 27, 2020; and 
(B) with respect to a case that was com-
menced 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 CORREC-
TIONS TO BAIA.—The amendments made by sub-
section (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 sub-
section (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 
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that were in effect on the day before the date of en-
actment of this Act. 
Æ 
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