The Commercial Law League of America Fully Endorses Maintaining the Subchapter V and Chapter 13 Debt Limits for Another Two Years

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Rolling Meadows, IL, June 11, 2024 – On April 17, 2024, Senate Judiciary Chair Richard Durbin (D-IL) introduced bipartisan legislation, which would extend by two years the $7.5 million debt limit for the Small Business Reorganization Act (the “SBRA”), and also maintain the debt limit for Chapter 13 bankruptcy eligibility to $2.75 million, which limits are due to revert back to $3,024,725 for Subchapter V and the pre-COVID limits for Chapter 13 on June 21, 2024. The legislation, which is co-sponsored by Sens. Lindsey Graham (R-SC), Sheldon Whitehouse (D-RI), Charles Grassley (R-IA), Christopher A. Coons (D-DE) and John Cornyn (R-TX), is the “Bankruptcy Threshold Adjustment Extension Act” (S. 4150). The Commercial Law League of America wholeheartedly supports this proposed legislation.

The proposed legislation would continue to allow greater access to the Small Business Debtor Reorganization provisions of the Bankruptcy Code, known as Subchapter V, allowing small businesses and individuals engaged in business a greater opportunity to successfully reorganize, pay creditors’ claims and save jobs. Additionally, by maintaining the debt limit for Chapter 13 bankruptcy eligibility, S. 4150 would continue to expand the options available to individuals who wish to effectively reorganize their debts without the need of filing a more complicated individual Chapter 11 case. The proposed legislation will continue to help promote small businesses to get back on track to build, innovate and grow the economy.

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About the CLLA

Since 1895, the not-for-profit Commercial Law League of America has connected experienced attorneys with credit grantors, lending institutions and other commercial credit, bankruptcy and general finance industry members through networking, education, legislative advocacy and specialized legal services.

 

The association’s members include attorneys, collection agencies, judges, accountants, trustees, turnaround managers and other credit and finance experts. For more information on the CLLA, please visit www.CLLA.org.

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