[Congressional Record Volume 168, Number 62 (Thursday, April 7, 2022)]
[Senate]
[Pages S2081-S2082]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BANKRUPTCY THRESHOLD ADJUSTMENT AND TECHNICAL CORRECTIONS ACT
Mr. MURPHY. Mr. President, I ask unanimous consent that the Committee
on the Judiciary be discharged from further consideration of S. 3823,
and the Senate proceed to its immediate consideration.
The PRESIDING OFFICER. The clerk will report the bill by title.
The senior assistant legislative clerk read as follows:
A bill (S. 3823) to amend title 11, United States Code, to
modify the eligibility requirements for a debtor under
chapter 13, and for other purposes.
There being no objection, the committee was discharged and the Senate
proceeded to consider the bill.
Mr. MURPHY. I ask unanimous consent that the Grassley substitute
amendment at the desk be considered and agreed to; that the bill, as
amended, be considered read a third time and passed; and that the
motions to reconsider be considered made and laid upon the table.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 5025), in the nature of a substitute, was agreed
to as follows:
(Purpose: In the nature of a substitute)
Strike all after the enacting clause and insert the
following:
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:
[[Page S2082]]
``(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.
The bill (S. 3823), as amended, was ordered to be engrossed for a
third reading, was read the third time, and passed.
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