Senate Passes Bill to Increase Debt Limits for Small Businesses and Individuals

On April 11, 2022, the U.S. Senate passed the the “Bankruptcy Threshold Adjustment and Technical Corrections Act," via unanimous consent. This bill raised the debt limit back to $7.5 million for small businesses electing to file for bankruptcy under Subchapter V of Chapter 11. The bill also raises the debt limit for individual Chapter 13 filings to $2.75 million and removes the distinction between secured and unsecured debt for that calculation.

The legislation now moves to the House of Representatives for consideration.