Maryland Legal Alert for Financial Services

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Senate Bill Seeks Permanent Expansion of Eligibility for Small Business Chapter 11 Filing

As we previously reported, certain temporary bankruptcy code amendments that Congress originally enacted in connection with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) expired as of March 27, 2022.

Among them is the increased debt limit from $2,725,625.00 to $7,500,000.00 for debtors seeking to file a Chapter 11 bankruptcy petition as a small business debtor under the Subchapter V provisions in the Small Business Reorganization Act.

Recently, a bipartisan group of U.S. Senators introduced a bill titled the “Bankruptcy Threshold Adjustment and Technical Corrections Act.” The bill seeks to:

  • Make the increased Subchapter V debt limit permanent and indexed to inflation, and
  • Increase the Chapter 13 debt limit to $2.75 million, and remove the distinction between secured and unsecured debts.

For questions concerning this topic, please contact Bryan M. Mull.


Bryan M. Mull
410-576-4227 •