H.R. 7730 · Where this bill is now
Passed both chambers
House: Passed Sep 16, 2026, by voice vote; Senate: Passed Sep 28, 2026, by unanimous consent
What this bill does
In plain words · AI-written from the official summaryRaises debt limits for small business bankruptcies
Ever wondered how much debt a small business can have and still use bankruptcy protection. This bill restores and increases debt limits that expired in 2024. For small business reorganizations, it raises the debt limit from about $3.4 million to $7.5 million. For wage earner bankruptcy plans, it raises the limit from about $2.1 million to $2.75 million and changes how the limit is calculated by counting all debt together instead of separately.
How it affects you
This primarily affects small business owners and self-employed people struggling with debt. Higher limits mean more of them could qualify for bankruptcy protection that lets them reorganize and pay back creditors over time rather than liquidate their business. For people on wage earner plans, the change makes it easier to include all types of debt under one limit.
Read the official summary (Introduced in House, Feb 26, 2026)
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.)
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
2nd SessionH. R. 7730
AN ACT
Bankruptcy Threshold Adjustment Act
Sponsor: Rep. Ben Cline (R-VA-6) · Introduced Feb 26, 2026 · Finance and Financial Sector · 5 versions of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Sep 28, 2026: “Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)”