Bill > S3977

This bill, titled the Bankruptcy Threshold Adjustment Act of 2026, modifies certain eligibility requirements for bankruptcy filings under title 11 of the United States Code. Specifically, it increases the debt limit for small businesses seeking bankruptcy protection to $7,500,000, provided that at least half of their debt arose from commercial or business activities and they are not part of an affiliated group exceeding this limit or a publicly traded company subject to Securities Exchange Act reporting requirements. For individuals filing under Chapter 13, which is a debt adjustment plan for individuals with regular income, the bill raises the aggregate debt limit to $2,750,000 for individuals and married couples, excluding stockbrokers and commodity brokers. These changes will take effect for any bankruptcy case filed on or after the date the bill becomes law.