President Biden signs S.3823 - Bankruptcy Threshold Adjustment and Technical Corrections Act today, June 21, 2022. 

The Corrections Act amends Section 1182(1) of the Bankruptcy Code to include the increased aggregate debt limit of $7.5 million in Subchapter V’s definition of a “debtor” and, upon sunset in two years from enactment, will revert and refer to the definition of a “small business debtor” in Section 101(51D) of the Bankruptcy Code. The Corrections Act also applies retroactively to all cases commenced under Chapter 11 on or after March 27, 2022 that remain pending as of the date of enactment. Further, upon enactment, the Corrections Bill will provide that an individual is eligible to be a debtor under Chapter 13 if the individual owes noncontingent, liquidated debts of less than $2,750,000 as of the date of the petition. This provision also has a two year sunset from enactment.