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Bankruptcy Changes: Higher Debt Limits for Individuals and Businesses

This act raises debt limits for individuals filing for Chapter 13 bankruptcy. It also increases the debt threshold for small businesses in bankruptcy. Some changes apply retroactively to cases commenced on or after March 27, 2020.
Key points
Individuals with regular income can file for Chapter 13 bankruptcy if their noncontingent, liquidated debts are less than $2,750,000.
A debtor engaged in commercial or business activities can qualify for Subchapter V of Chapter 11 bankruptcy if their aggregate debts do not exceed $7,500,000.
Changes regarding small business debt limits apply to bankruptcy cases commenced on or after March 27, 2020, that are pending on the date of enactment.
The act includes technical corrections and modifications to trustee roles and plan confirmation processes.
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Additional Information
Print number: 117_HR_7494
Sponsor: Rep. Neguse, Joe [D-CO-2]
Process start date: 2022-04-11
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OFFICIAL LEGAL TITLE

Bankruptcy Threshold Adjustment and Technical Corrections Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_7494.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-04-11.

What are the main provisions?

Key points include:

  • Individuals with regular income can file for Chapter 13 bankruptcy if their noncontingent, liquidated debts are less than $2,750,000.
  • A debtor engaged in commercial or business activities can qualify for Subchapter V of Chapter 11 bankruptcy if their aggregate debts do not exceed $7,500,000.
  • Changes regarding small business debt limits apply to bankruptcy cases commenced on or after March 27, 2020, that are pending on the date of enactment.
  • The act includes technical corrections and modifications to trustee roles and plan confirmation processes.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Neguse, Joe [D-CO-2].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

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