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S. 3977119th Congress
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.
The bill raises debt caps so more small businesses and individuals qualify for faster, simpler bankruptcy options.
35-second read · 4 questions answered below
The bill raises the debt cap for the streamlined "Subchapter V" small business bankruptcy process to $7,500,000, while excluding SEC-reporting companies and their affiliates. It also raises the Chapter 13 individual debt limit to a single combined threshold of $2,750,000, replacing separate secured and unsecured debt limits. These changes apply only to bankruptcy cases filed after the bill becomes law.
Small business owners and individuals (or married couples) considering bankruptcy filings are directly affected.
Higher debt limits would let more businesses and individuals use faster, less complicated bankruptcy processes instead of complex Chapter 11 proceedings. Cases already underway would not be affected by the change.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: it's on the Senate floor calendar. If the House changes it, it goes back to the Senate before reaching the President.
Latest action: — Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.