H.R. 7730

Bankruptcy Threshold Adjustment Act

Sponsor: Ben Cline

6 cosponsors

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Where it stands

Introduced Feb 26
Committee Mar 26
House of Representatives Sep 16
Senate Sep 28
Law Now

Introduced Feb 26
Committee Mar 26
House of Representatives Sep 16
Senate Sep 28
Law Now

Message on Senate action sent to the House. (Oct 14)

Votes

No roll-call votes yet.

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

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Sec. 1. Short title Changed · Aug 27

Sec. 2. Debt limit modifications Since introduced

Sec. 3. Effective date Since introduced

The amendments made by this Act shall apply to any case that is commenced under title 11, United States Code, on or after the date of enactment of this Act.