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H.R. 7730119th CongressIn markupLatest action Mar 26, 2026Decoded by AI · checked against the record
Official title: Bankruptcy Threshold Adjustment Act of 2026
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
HR 7730 raises bankruptcy debt ceilings so more small businesses and individuals qualify for reorganization plans instead of liquidation.
50-second read · 4 questions answered below
HR 7730 raises the debt limit for small businesses using Subchapter V bankruptcy from the previous ceiling to $7.5 million, and raises the Chapter 13 debt limit for individuals to $2.75 million. Subchapter V is a faster, lower-cost reorganization process designed for small businesses. Chapter 13 allows individuals with steady income to repay debts over three to five years under a court-approved plan while keeping their property.
Small business owners with debts under $7.5 million now have access to the Subchapter V process, though publicly traded companies and their affiliates are excluded. Individual consumers and married couples with significant debt loads who previously exceeded the Chapter 13 limit may now qualify under the higher threshold.
By raising these thresholds, more debtors gain access to reorganization options rather than being forced into liquidation or other bankruptcy paths. The change expands eligibility without altering the underlying rules of either process.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Ordered to be Reported (Amended) by Voice Vote.