National Form Voluntary Petition Modified to Reflect Reduced Debt Limits Effective June 22, 2024

Increased debt limits applicable to Chapter 13 and Subchapter V filings expired at midnight on June 21, 2024. The increase in the qualifying debt limits had been temporarily enacted under the Bankruptcy Threshold Adjustment and Technical Corrections Act (BTATC Act).

Due to the expiration of the BTATC Act, the official forms of voluntary petition for individuals and non-individuals have been revised, effective June 22, 2024, and must be used in cases filed after that date.

Specifically, effective for cases filed on or after June 22, 2024:

• The Subchapter V debt limit is reduced from $7.5 million to $3,024,725. In addition, the definition of a debtor under 11 U.S.C. §1182(1) will mean “a small business debtor.’’
• The Chapter 13 eligibility threshold of $2,750,000 for both secured and unsecured debt will again be divided into separate limitations for unsecured and secured debts. Eligibility will be limited to a maximum unsecured debt of $465,275 and a maximum secured debt of $1,395,875.

Official Form 101 (Voluntary Petition for Individuals Filing for Bankruptcy) and Official form 201 (Voluntary Petition for Non-Individuals Filing for Bankruptcy) have been revised effective June 22, 2024 and are available on the uscourts.gov website.