[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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