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Bankruptcy Eligibility Changes for Individuals and Small Businesses

This law temporarily raises debt limits for individuals and small businesses seeking bankruptcy protection. This means more people and small companies can now file for bankruptcy to restructure their debts. These changes aim to provide financial relief but are temporary, reverting to previous limits in two years.
Key points
Increased Debt Limit for Individuals: Individuals with regular income can file for bankruptcy if their debts are less than $2,750,000, a significant increase from the previous limit.
Increased Debt Limit for Small Businesses: Small businesses can file for bankruptcy if their debts are less than $7,500,000, making debt restructuring easier.
Temporary Nature of Changes: The increased debt limits are effective for two years from the law's enactment date, after which they will revert to previous amounts.
Flexible Repayment Plans: The law introduces more flexible rules for approving debt repayment plans, potentially making it easier for debtors to recover financially.
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VOTING RESULTS
2022-06-07
95%
For 392
Against 21
Abstain 0
Full voting results open_in_new
Became Law
Citizen Poll
No votes cast
Additional Information
Print number: 117_S_3823
Sponsor: Sen. Grassley, Chuck [R-IA]
Process start date: 2022-03-14
Voting date: 2022-06-07
Meeting no: 2
Voting no: 234
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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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_S_3823.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-03-14.

What are the main provisions?

Key points include:

  • Increased Debt Limit for Individuals: Individuals with regular income can file for bankruptcy if their debts are less than $2,750,000, a significant increase from the previous limit.
  • Increased Debt Limit for Small Businesses: Small businesses can file for bankruptcy if their debts are less than $7,500,000, making debt restructuring easier.
  • Temporary Nature of Changes: The increased debt limits are effective for two years from the law's enactment date, after which they will revert to previous amounts.
  • Flexible Repayment Plans: The law introduces more flexible rules for approving debt repayment plans, potentially making it easier for debtors to recover financially.
What is the specific legal status?

The current status is Became Law.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Where is the official voting record?

The official roll call vote is recorded at: voting record

Who is the primary sponsor?

The primary sponsor is Sen. Grassley, Chuck [R-IA].

What is the latest detailed status?

The latest detailed status is: Became Public Law No: 117-151.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

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