Small businesses with debts up to $7.5 million can qualify for streamlined bankruptcy proceedings under a new law signed by President Biden on Tuesday.
The president signed the Bankruptcy Threshold Adjustment and Technical Corrections Act (S. 3823), which was passed by the House earlier this month.
The new law raises the debt limit for Subchapter V proceedings to $7.5 million for two years, from the current level of just over $3 million.
Subchapter V is designed to help small businesses reorganize, offering reduced costs and removal of certain legal and procedural hurdles that make confirmation of a traditional .
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