Bankruptcy Threshold Adjustment Act of 2026
119-HR-7730119th CongressIntroduced Feb 26, 2026Finance and Financial Sector
Market Probability
No market
Status
Introduced
Committee
Floor Vote
Other Chamber
Signed
Ordered to be Reported (Amended) by Voice Vote.
Sponsor
Rep. Cline, Ben [R-VA-6](R-VA-6)6 cosponsors
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.)
Subjects
BankruptcyDebt collectionSmall business
Actions (5)
Ordered to be Reported (Amended) by Voice Vote.
Mar 26, 2026House committee actions
Committee Consideration and Mark-up Session Held
Mar 26, 2026House committee actions
Referred to the House Committee on the Judiciary.
Feb 26, 2026House floor actions
Introduced in House
Feb 26, 2026Library of Congress
Introduced in House
Feb 26, 2026Library of Congress