S. 3977
Raises debt limits for small business and personal bankruptcies
Raises how much debt a small business or an individual can owe and still use certain bankruptcy plans, restoring limits that expired in 2024.
- Debt limit for the simplified small business reorganization plan rises from about $3.4 million to $7.5 million
- Debt limit for the wage earner's repayment plan rises from about $2.1 million to $2.75 million
- Both secured and unsecured debt would count toward the wage earner's plan limit
- The higher limits expired in 2024 and would be restored
Passed the Senate · House's turn