Raises the debt ceilings for bankruptcy eligibility, letting small businesses with up to $7.5 million in debts and individuals with up to $2.75 million in debts qualify for certain bankruptcy filings under the Bankruptcy Code.

Official title: Bankruptcy Threshold Adjustment Act of 2026

Next stop House: awaiting action

Timeline each lane is a chamber; dates pull from congress.gov actions

House

Received 10-AUG-2026

Senate

Introduced 03-MAR-2026

On the calendar 03-MAR-2026

Passed 03-AUG-2026

Key points

Raises the small business debtor limit under Section 1182(1) of title 11 from its prior amount to $7,500,000 in noncontingent liquidated secured and unsecured debts, excluding debts owed to affiliates or insiders
Excludes corporations subject to Securities Exchange Act reporting requirements, their affiliates, and single asset real estate businesses from the small business definition
Sets the consumer chapter 13 debt limit under Section 109(e) at $2,750,000 for individuals, or for individuals and spouses combined, excluding stockbrokers and commodity brokers
Applies to cases commenced on or after the date of enactment

AI-generated from the Engrossed in Senate text of 03-AUG-2026 · verify · report an error

Official CRS summary

Current. The Congressional Research Service's summary covers the bill's latest wording (Passed Senate, 03-AUG-2026).

CRS is the Library of Congress's nonpartisan research office. Read it on congress.gov

Committee referrals (0)

No committee referrals on file.

Policy area

Finance and Financial Sector

Sponsor Chuck Grassley (R-IA) Cosponsors · 5

■ 3 D■ 2 R

3 Democrats

2 Republicans