S. 3977 · 119th Congress
Bankruptcy Threshold Adjustment Act of 2026
- Stage
- Passed a chamber
- Sponsor
- Chuck Grassley
- Introduced
- 2026-03-03
- Latest action
- 2026-08-10 · Held at the desk.
Summary
Bankruptcy Threshold Adjustment Act of 2026
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.
Specifically, the bill increases the debt limit under Subchapter 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.
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.)