Bankruptcy debt caps set at $7.5 million for small businesses, $2.75 million for individuals
Passed both chambersH.R. 7730Latest action
Sponsor: Ben Cline · Representative · VA
AIDecoded by AI · checked against the recordRead the official text
Official title: Bankruptcy Threshold Adjustment Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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HR 7730 would write fixed debt limits into law: $7.5 million for Subchapter V small businesses and under $2.75 million for Chapter 13 filers.
50-second read · 4 questions answered below
What does this do?
The bill replaces the current debt limits for Subchapter V of Chapter 11 and for Chapter 13 bankruptcy with set dollar figures written directly into the law. A business qualifies for Subchapter V if its debts are $7.5 million or less and at least half came from running the business. Individuals or married couples qualify for Chapter 13 with debts under $2.75 million.
Who does it affect?
Small business owners with debts near $7.5 million and individuals or couples with debts near $2.75 million are most directly affected. Publicly traded companies, their affiliates, groups of related companies with combined debts over the limit, single-property real estate companies, and stockbrokers and commodity brokers are excluded.
Why does it matter?
The limits decide whether filers can use these simpler, lower-cost bankruptcy options or must use a more complex process. Under current law the limits are separate and can shift over time, and the bill would fix them in place. Cases already underway would not be affected.
AI-drafted summary. Check it against the official text before you act on it.
Based on the “Received in Senate” text of Sep 17, 2026.
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Where does it stand?
- IntroducedFeb 26, 2026
- House committee
- House vote
- Senate
- The president's deskYou are here · Sep 28, 2026
Right now: both chambers have passed it. It goes to the president next.
Latest action: — Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)