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Subchapter V
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- 1Congress Passes Law Raising Bankruptcy Debt Limits▼Congress Passes Law to Raise Subchapter V and Chapter 13 Debt Limits
Congress has passed legislation raising the debt limits for Subchapter V small-business bankruptcies and Chapter 13 consumer filings. The change will allow more small businesses and individual debtors to qualify for those bankruptcy protections, which had been capped at thresholds that inflation and economic pressure had increasingly outpaced. Legal observers note the adjustment affects how many struggling borrowers can restructure debts under the bankruptcy code.