06/30/2022
Gooding Law Firm is Oklahoma’s most trusted bankruptcy law firm. Here is some information they want you to know:
On June 21, 2022, President Biden signed S.3823 - The Bankruptcy Threshold Adjustment and Technical Corrections Act (“BTATC”) into law. The BTATC is available at:
https://www.congress.gov/117/bills/s3823/BILLS-117s3823enr.pdf.
The BTATC was introduced to retroactively extend the debt limits for Chapter 11 Subchapter V cases provided for in the Coronavirus Aid, Relief, and Economic Security Act and to make technical corrections to the Bankruptcy Administration Improvement Act.
Things to note of importance in the BTATC are as follows:
1. It amends Section 1182(1) of the Bankruptcy Code to include the increased aggregate debt limit of $7.5 million in Chapter 11 Subchapter V for an additional two years.
2. This increased debt limit is also subject to inflation.
3. It provides that a Chapter 11 Subchapter V small business debtor includes a debtor that is an affiliate of certain publicly traded companies.
4. Authorizes the bankruptcy trustee to operate the business of the debtor if the debtor ceases to be a debtor-in-possession.
5. Provisions (a), (d), (e) and (f) of the BTATC apply retroactively to cases commenced on or after March 27, 2020.
6. It increases, for two years, the debt limit for individuals filing for bankruptcy under Chapter 13 to $2.75 million in combined secured and unsecured debt.
