What is the Bankruptcy Threshold Adjustment and Technical Corrections Act? - Daniel Straffi

BSPE Legal Marketing Podcast

From Straffi & Straffi Attorneys at Law - In this episode, we explore What is the Bankruptcy Threshold Adjustment and Technical Corrections Act? and its impact on individuals and businesses in New Jersey. This important legislation introduced temporary changes to bankruptcy laws, including increased debt thresholds under Chapter 13 and Subchapter V of Chapter 11. These updates aimed to provide greater accessibility to debt relief, particularly for those affected by pandemic-related financial strains and high costs of living in New Jersey.
We discuss how the BTATC Act raised the debt limits for Chapter 13 to $2.75 million and Subchapter V to $7.5 million, enabling more individuals and small businesses to qualify for bankruptcy protections. These changes were particularly relevant for New Jersey residents, where significant debt levels often result from high housing costs and business expenses. However, with the expiration of these provisions in June 2024, the thresholds have reverted to previous, more restrictive levels.
Listeners will gain insights into how the BTATC Act temporarily simplified bankruptcy processes by clarifying definitions and adjusting procedural requirements. For small businesses in New Jersey, the Act provided streamlined reorganization options under Subchapter V, offering a lifeline during challenging economic times. With these provisions no longer in effect, small business owners and individual debtors must navigate the pre-existing Bankruptcy Code rules to manage their financial situations.
If you are considering bankruptcy in New Jersey, understanding these legislative changes is critical to making informed decisions. The experienced team at Straffi & Straffi Attorneys at Law is here to help you evaluate your options and provide personalized guidance. Contact us at [phone] to schedule a consultation and learn how the current bankruptcy laws may apply to your case.
Straffi & Straffi Attorneys at Law
670 Commons Way, Toms River, NJ 08755, United States
[phone]
https://www.google.com/maps?cid=18340758732161592314