H.R. 7730

Bankruptcy Threshold Adjustment Act

Sponsor: Ben Cline

6 cosponsors
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Official summary

Written by the Congressional Research Service.

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.)

Text of the bill

Expand all
Sec. 1. Short title Changed · Aug 27

Where this section came from

  1. Feb 26, 2026 · Introduced in House Referred to House Committee on the Judiciary, Feb 26
  2. Aug 27, 2026 · Reported in House Marked up by House Committee on the Judiciary, Mar 26 Reported by House Committee on the Judiciary, Aug 27 Committee members' individual votes aren't in our records.
What changed in the text

This Act may be cited as the Bankruptcy Threshold Adjustment Act of 2026 .

What is a markup?

A markup is a committee meeting where members go through a bill and vote on changes before sending it to the full chamber.

This Act may be cited as the Bankruptcy Threshold Adjustment Act.