The Bankruptcy Threshold Adjustment Act of 2026 increases the debt limits that determine who can file for certain types of bankruptcy protection. Specifically, the bill raises the small business bankruptcy debt limit from its previous amount to $7.5 million and raises the consumer bankruptcy debt limit to $2.75 million, affecting individuals and couples seeking to reorganize their debts through Chapter 13 bankruptcy. These higher thresholds would allow more small business owners and individuals with significant debt burdens to access bankruptcy protections that were previously unavailable to them. The changes take effect immediately upon the bill's enactment for any new bankruptcy cases filed going forward. The bill does not specify new federal funding requirements, as the changes primarily adjust existing statutory limits in bankruptcy law.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.