Senate Bill 3823
117th Congress(2021-2022)
Bankruptcy Threshold Adjustment and Technical Corrections Act
Became Law
Amendments
Became Law
Became Public Law 117-151 on Jun 21, 2022
Overview
Text
S. 3823 (Introduced-in-Senate)


117th CONGRESS
2d Session
S. 3823


To amend title 11, United States Code, to modify the eligibility requirements for a debtor under chapter 13, and for other purposes.


IN THE SENATE OF THE UNITED STATES

March 14, 2022

Mr. Grassley (for himself, Mr. Durbin, Mr. Whitehouse, and Mr. Cornyn) introduced the following bill; which was read twice and referred to the Committee on the Judiciary


A BILL

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) CARES Act amendment.—Section 1113(a) of the CARES Act (Public Law 116–136; 134 Stat. 310) is amended by striking paragraph (5).

(b) Definition of small business debtor.—Section 101(51D)(B)(iii) of title 11, United States Code, is amended by striking “an issuer” and all that follows and inserting “a corporation described in clause (ii).”.

(c) Adjustments for inflation.—

(1) IN GENERAL.—Section 104 of title 11, United States Code, is amended—

(A) in subsection (a), by inserting “1182(1),” after “707(b),”; and

(B) in subsection (b), by inserting “1182(1),” after “707(b),”.

(2) NO ADJUSTMENTS IN 2022.—With respect to the adjustment of dollar amounts required on April 1, 2022, under section 104 of title 11, United States Code, as amended by paragraph (1), the Judicial Conference of the United States shall not adjust the dollar amount in effect under section 109(e) or 1182(1) of title 11, United States Code.

(d) 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.”.

(e) Definition of debtor.—Section 1182(1)(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).”.

(f) 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;”.

(g) 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.”.

(h) 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”.