Despite months of educational outreach to members of Congress by numerous bankruptcy judges and members of the bankruptcy bar nationwide, bipartisan legislation to continue the current debt limits for Subchapter V and Chapter 13 is stalled in the U.S. Senate. Unless Congress acts, the current debt thresholds to qualify for Subchapter V ($7,500,000) and Chapter 13 ($2,750,000) relief will sunset on June 21, 2024.

Absent action by Congress, the debt limits for Subchapter V and Chapter 13 cases will revert to the amounts in effect in March of 2020. The Subchapter V debt limit will drop to $3,024,725. The Chapter 13 threshold of $2,750,000 for both secured and unsecured debt will revert to a two-part test that limits eligibility to a maximum of $465,275 for unsecured debt and $1,395,875 for secured debt.