WHAT THE LAW DOINCongress, in plain words

H.R. 7730 · 119th Congress

Bankruptcy Threshold Adjustment Act

Passed SenateFinance and Financial Sector
IntroducedFeb 26, 2026
Passed HouseSep 16, 2026
Passed SenateSep 28, 2026
To PresidentNot yet
Became lawNot yet

Where it stands

Passed Senate. Latest step, Oct 14, 2026: Message on Senate action sent to the House.

What it does

Sourced

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.)

Official summary by the Congressional Research Service (Introduced in House, Feb 26, 2026).

Our plain-language breakdown, with what it means for you and the case for and against, is written once a bill starts to move.

What has happened

Sourced
  1. Sep 28, 2026Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)Library of Congress
  2. Sep 16, 2026Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.Library of Congress
  3. Aug 27, 2026Reported (Amended) by the Committee on Judiciary. H. Rept. 119-783.Library of Congress
  4. Feb 26, 2026Introduced in HouseLibrary of Congress

Show all 18 recorded actions

Cosponsors

  • J. Luis Correa D-CA-46
  • Lance Gooden R-TX-5
  • Laurel M. Lee R-FL-15
  • Zoe Lofgren D-CA-18
  • Joe Neguse D-CO-2
  • David J. Taylor R-OH-2