Bill · H.R. 7730· House(119-HR-7730)
Bankruptcy Threshold Adjustment Act
- Introduced
- 2/26/2026
- Last activity
- 9/28/2026 — Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)
- Sponsored by
- Ben Cline
- Cosponsors
- - 3 - 3
- Introduced
- Passed House
- Passed Senate
What this bill would do
This bill is called the Bankruptcy Threshold Adjustment Act. It updates the debt limits for people and small businesses filing for bankruptcy. Specifically, it changes the debt limit for small business debtors under section 1182(1) of title 11, United States Code. It also changes the debt limit for individuals under section 109 of title 11, United States Code. These new rules apply to any bankruptcy case started on or after the date the Act is enacted.
Yes· 3 of 7
Would business owners be better off under this?+5
The adjustment to the debt limit offers enhanced bankruptcy protections for many small businesses.
Does this make it easier to run a small business?+5
The bill expands bankruptcy eligibility for small businesses by adjusting debt thresholds.
Would households on low incomes be better off under this?+3
The higher debt threshold for Chapter 13 provides more breathing room for individuals with regular income.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 2(a) changes the small business bankruptcy debt limit so that a person with commercial or business debts up to $7,500,000 can qualify as a debtor, which could help more struggling small businesses get relief.
-
Section 2(b) raises the consumer bankruptcy debt limit for individuals with regular income to less than $2,750,000, which could allow more everyday people to qualify as a debtor under chapter 13.
Potential Negative Impacts for People
-
Section 2(a) specifically excludes any member of a group of affiliated debtors that has total debts greater than $7,500,000 from being considered a small business debtor, which might deny relief to certain connected businesses.
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Section 2(a) excludes any debtor that is a corporation subject to specific reporting requirements under the Securities Exchange Act of 1934, or an affiliate of such a corporation, blocking them from using this small business bankruptcy option.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For Low Income Households+3Good For Middle Class Households+3
- Economy And Finance
- Improves Small Business Support+5Improves Consumer Protection+3
- Social Issues And Justice
- Improves Poverty Reduction+3
- Governance And Ideology
- Improves Due Process+2
- Enrolled Bill
The final version, on its way to the President
What changed from Received in Senate: No change to the wording. Only the printed details that record the bill’s progress, such as the heading and dates, are different.
Arrived from the other chamber; nothing has been done to it there yet
What changed from Engrossed in House: No change to the wording. Only the printed details that record the bill’s progress, such as the heading and dates, are different.
- 9/28/2026
- Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)
- Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)
- 9/17/2026
- Received in the Senate, read twice.
- 9/16/2026
- Motion to reconsider laid on the table Agreed to without objection.
- Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
- On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5939-5940)
- DEBATE - The House proceeded with forty minutes of debate on H.R. 7730.
- Considered under suspension of the rules. (consideration: CR H5939-5941)
- Mr. Cline moved to suspend the rules and pass the bill, as amended.
- 8/27/2026
- Reported (Amended) by the Committee on Judiciary. H. Rept. 119-783.
- Placed on the Union Calendar, Calendar No. 684.
- 6/8/2026
- 1 Cosponsor added.
- 3/26/2026
- Committee Consideration and Mark-up Session Held
- Ordered to be Reported (Amended) by Voice Vote.
- 3/25/2026
- 1 Cosponsor added.
- 3/24/2026
- 1 Cosponsor added.
- 2/26/2026
- Referred to the House Committee on the Judiciary.
- 3 Cosponsors added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
J. CorreaDemocrat · California
Lance GoodenRepublican · Texas
Zoe LofgrenDemocrat · California
Laurel LeeRepublican · Florida
Joe NeguseDemocrat · Colorado
David TaylorRepublican · Ohio