116 S3823 IS: Bankruptcy Threshold Adjustment and Technical Corrections Act U.S. Senate 2022-03-14 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II117th CONGRESS2d SessionS. 3823IN THE SENATE OF THE UNITED STATESMarch 14, 2022Mr. 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 JudiciaryA BILLTo amend title 11, United States Code, to modify the eligibility requirements for a debtor under chapter 13, and for other purposes.

1.

Short title

This Act may be cited as the Bankruptcy Threshold Adjustment and Technical Corrections Act.

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.