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HR 7730·Federal·house

Bankruptcy Threshold Adjustment Act

Passed One ChamberFiled Feb 26, 2026
Sponsor: Rep. Cline, Ben [R-VA-6] (R)
Latest Action

Message on Senate action sent to the House.

Oct 14, 2026

Summary

The Bankruptcy Threshold Adjustment Act of 2026 increases the maximum debt a small business can owe to qualify for Chapter 11 relief to $7.5 million and raises the cap for individuals filing Chapter 13 to $2.75 million. It applies to new cases filed after the law takes effect and excludes certain large affiliates, publicly‑reported corporations, and stock or commodity brokers. The changes aim to broaden access to bankruptcy protection for larger businesses and higher‑income households.

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