Bankruptcy Threshold Adjustment Act
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill adjusts the debt limits for individuals and small businesses filing for bankruptcy under Title 11 of the U.S. Code. Specifically, it raises the debt limit for small businesses engaged in commercial activities to $7.5 million, while lowering the debt limit for individual consumer bankruptcy filings to $2.75 million. The bill also makes changes to determine who qualifies as a ‘group of affiliated debtors’ in bankruptcy proceedings. These changes are intended to modify bankruptcy eligibility requirements.
Key provisions
- Raises the small business bankruptcy debt limit to $7,500,000.
- Lowers the consumer bankruptcy debt limit to $2,750,000.
- Defines ‘group of affiliated debtors’ for bankruptcy purposes.
- Excludes certain corporations and affiliates from the small business debt limit increase.
- Specifies that stockbrokers and commodity brokers are excluded from the consumer bankruptcy debt limit reduction.
Who is affected
- Small business owners
- Individuals filing for bankruptcy
- Bankruptcy attorneys
- Creditors
Notable changes
- Increases the debt limit for small business bankruptcy filings.
- Reduces the debt limit for individual consumer bankruptcy filings.
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
7 on record
Primary sponsor
Cosponsors
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours