Bill > HR7730

This bill, titled the "Bankruptcy Threshold Adjustment Act of 2026," modifies eligibility requirements for bankruptcy filings by adjusting debt limits. Specifically, it raises the debt limit for businesses seeking bankruptcy protection under Chapter 11 to $7,500,000, provided that at least half of the debt originated from commercial or business activities and is not owed to affiliates or insiders; however, this increased limit does not apply to affiliated groups of debtors exceeding this amount, corporations subject to certain securities reporting requirements, or their affiliates. Additionally, the bill increases the debt limit for individuals filing for bankruptcy under Chapter 13 to $2,750,000, allowing individuals and their spouses to qualify if their combined debts fall below this threshold, with exceptions for stockbrokers and commodity brokers. These changes will take effect for any bankruptcy cases filed on or after the date the bill becomes law.