Bankruptcy Threshold Adjustment Act
The source supplies the latest action, but no lifecycle stage.
Latest action (14 Oct 2026): Message on Senate action sent to the House.
What this bill does
The Bankruptcy Threshold Adjustment Act, H.R. 7730, proposes to modify eligibility requirements for certain bankruptcy filings. Specifically, it would adjust the debt limits for both small business bankruptcies and consumer bankruptcies. For small businesses, the maximum aggregate noncontingent liquidated secured and unsecured debts to qualify would be set at $7,500,000, excluding debts owed to affiliates or insiders. The bill also clarifies that certain larger affiliated debtors, corporations subject to specific securities reporting requirements, and their affiliates would not be eligible under this provision.
For consumer bankruptcies, specifically those filed under chapter 13, the bill would establish a new debt limit. Individuals with regular income owing less than $2,750,000 in noncontingent, liquidated debts would be eligible. This limit applies to individuals and their spouses, with exceptions for stockbrokers and commodity brokers. These changes would apply to any bankruptcy case filed on or after the date the Act becomes law.
This bill has passed both the House of Representatives and the Senate. It is now awaiting action by the President.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official 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.)
Timeline
14 Oct 2026
Message on Senate action sent to the House.
Common questions
- What does H.R. 7730 do?
- The Bankruptcy Threshold Adjustment Act, H.R. 7730, proposes to modify eligibility requirements for certain bankruptcy filings. Specifically, it would adjust the debt limits for both small business bankruptcies and consumer bankruptcies. For small businesses, the maximum aggregate noncontingent liquidated secured and unsecured debts to qualify would be set at $7,500,000, excluding debts owed to affiliates or insiders. The bill also clarifies that certain larger affiliated debtors, corporations subject to specific securities reporting requirements, and their affiliates would not be eligible under this provision. For consumer bankruptcies, specifically those filed under chapter 13, the bill would establish a new debt limit. Individuals with regular income owing less than $2,750,000 in noncontingent, liquidated debts would be eligible. This limit applies to individuals and their spouses, with exceptions for stockbrokers and commodity brokers. These changes would apply to any bankruptcy case filed on or after the date the Act becomes law. This bill has passed both the House of Representatives and the Senate. It is now awaiting action by the President.
- Has H.R. 7730 become law?
- The source does not supply a confirmed lifecycle stage for H.R. 7730. Check the latest action and official source below.
- Who sponsored H.R. 7730?
- H.R. 7730 was sponsored by Rep. Cline, Ben [R-VA-6] (R-VA), with 6 cosponsors.
- What's the latest action on H.R. 7730?
- Message on Senate action sent to the House. (14 Oct 2026).
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