“To amend title 11, United States Code, to modify certain bankruptcy eligibility requirements, and for other purposes.”
No CRS summary available for this bill.
This section modifies debt eligibility limits for subchapter V small business cases and chapter 13 consumer cases as follows: (1) revises the definition of debtor in 11 U.S.C. §1182(1)—for subchapter V of chapter 11, which provides a streamlined reorganization process for small businesses—to $7,500,000 in aggregate noncontingent liquidated secured and unsecured debts (from $3,024,725), excluding debts owed to affiliates or insiders and requiring at least 50% of remaining debts from commercial or business activities, with exclusions for members of affiliated debtor groups exceeding the limit (also excluding such affiliate/insider debts), public companies subject to Securities Exchange Act reporting, and their affiliates; and (2) revises the chapter 13 eligibility limit in 11 U.S.C. §109(e) to less than $2,750,000 in aggregate noncontingent liquidated debts for an individual with regular income or such an individual and spouse (except a stockbroker or commodity broker) (from separate limits of less than $465,275 in unsecured debts and $1,395,875 in secured debts).