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Bankruptcy Threshold Adjustment Act

HR 7730 · In progress · last action September 17, 2026

<p><strong>Bankruptcy Threshold Adjustment Act of 2026</strong></p><p>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.</p><p>Specifically, the bill increases the debt limit under Subchapter&nbsp;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.</p><p>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.)</p>

Sponsor

Ben Cline (R-VA)

Associated votes

No votes recorded against this bill yet — vote coverage is a work in progress.

Official summary

<p><strong>Bankruptcy Threshold Adjustment Act of 2026</strong></p><p>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.</p><p>Specifically, the bill increases the debt limit under Subchapter&nbsp;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.</p><p>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.)</p>