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Congress Increases Subchapter V Debt Limit Back to $7.5M Until 2024

On June 21, 2022, the “Bankruptcy Threshold Adjustment and Technical Corrections Act” (BTATC) (Pub. L. No. 117-151) was signed into law, extending for two years the $7.5M increased debt limit for qualifying under Subchapter V, the streamlined form of Chapter 11. The increase applies retroactively to cases commenced on or after March 27, 2022. The increased debt limit, set to expire on June 21, 2024, unless extended, will ensure that more small businesses are able to take advantage of the streamlined, and less expensive, Subchapter V process.


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