On June 21, 2022, the “Bankruptcy Threshold Adjustment and Technical Corrections Act” (BTATC) (Pub. L. No. 117-151) was signed into law by the President.  The new law has a direct impact on the bankruptcy system and the administration of bankruptcy cases.  The BTATC includes three major provisions: 

1. Extends for two years the increase of the amount of debt (up to $7,500,000) allowed to be carried by debtors to qualify for small business reorganization under subchapter V (applies retroactively to cases commenced on or after March 27, 2022, and with respect to a case that was commenced on or after March 27, 2020, and before June 21, 2022, is pending on June 21, 2022),
2. Increases, for two years, the debt limit for individuals filing for bankruptcy under Chapter 13 (to less than $2,750,000) and allows both secured and unsecured debt to count towards this single limit (effective June 21, 2022), and
3. Provides technical amendments to the BAIA (to 28 U.S.C. § 589(a) specifically), which are effective as of October 1, 2021. 

Additionally, the BTATC reinstates the definition of “debtor” for determining eligibility to proceed under subchapter V chapter 11 that was in effect from March 27, 2020 to March 27, 2022.  As a result, Line 13 of Official Form 101, and Line 8 of Official Form 201, have been updated to reflect the change.