The “Bankruptcy Threshold Adjustment and Technical Corrections Act”
was signed into law by President Biden on June 21, 2022.
This legislation raises certain bankruptcy threshold limits and
makes technical corrections to the Bankruptcy Administration
Improvement Act.
The eligibility parameters are changed for Chapter 11 Subchapter V
and Chapter 13 debtors.
For Chapter 13, there is a new aggregate debt limit of $2.75
million — the prior separate references to secured and unsecured
debt limits are eliminated.
This is an increase of the overall debt limit for Chapter 13
debtors by about $900,000.
The legislation will make Chapter 13 more available for debtors
living in counties, such as Orange County, where large home
mortgages may have precluded filing Chapter 13 in the past.
The new law will automatically expire and revert back to the old
law on June 20, 2024, unless Congress extends these changes.
To discuss how these new changes to Bankruptcy law may affect you
please call our office at 714-550-9305 and speak directly with an
attorney.