H.R. 7730 · Passed both chambers · Finance and Financial Sector

Bankruptcy Threshold Adjustment Act

Sponsor: Ben Cline (R-VA)

What it does

• Increase the debt limit for Subchapter V small business reorganization bankruptcies from approximately $3.4 million to $7.5 million.
• Increase the cumulative debt limit for Chapter 13 wage earner plan bankruptcies from approximately $2.1 million to $2.75 million.
• Apply both secured and unsecured debt toward the Chapter 13 debt limit, consolidating what were previously separate limits.

Official summary

Bankruptcy Threshold Adjustment Act of 2026 This bill restores changes that expired in 2024 applicable to debt limits for Subchapter V (small business reorganization) and Chapter 13 (the wage earner's plan) bankruptcies. Specifically, the bill increases the debt limit under Subchapter V from approximately $3.4 million to $7.5 million and increases the cumulative debt limit under Chapter 13 from approximately $2.1 million to $2.75 million. The bill also applies both secured and unsecured debt towards the Chapter 13 limit. (Currently, separate limits apply to secured and unsecured debt under Chapter 13 bankruptcy.)

Latest action

Sep 28, 2026: Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)

Committee: House Judiciary