[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3823 Enrolled Bill (ENR)]

        S.3823

                    One Hundred Seventeenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
          the third day of January, two thousand and twenty two


                                 An Act


 
    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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.