[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7494 Introduced in House (IH)]
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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 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) Definition of Small Business Debtor.--Section 101(51D)(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).''.
(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, 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.''.
(d) Definition of Debtor.--Section 1182(1) of title 11, United
States Code, is amended to read as follows:
``(1) Debtor.--The term `debtor'--
``(A) subject to subparagraph (B), means a person
engaged in commercial or business activities (including
any affiliate of such person that is also a debtor
under this title and excluding a person whose primary
activity is the business 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 (excluding
debts owed to 1 or more affiliates or insiders) 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 affiliated
debtors under this title that has aggregate
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 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 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;''.
(f) 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.''.
(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 subsections (a), (d), (e), and (f) shall
apply with respect to any case that--
(A) is commenced under title 11, United States
Code, on or after March 27, 2020; and
(B) with respect to a case that was commenced 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 corrections to baia.--The
amendments made by subsection (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 subsection (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 that were in effect on the day before the
date of enactment of this Act.
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