Bill · S. 3977· Senate(119-S-3977)
Bankruptcy Threshold Adjustment Act of 2026
- Introduced
- 3/3/2026
- Last activity
- 8/10/2026 — Held at the desk.
- Sponsored by
- Chuck Grassley
- Cosponsors
- - 2 - 3
- Introduced
- Passed Senate
- Awaiting House
What this bill would do
This Act, known as the "Bankruptcy Threshold Adjustment Act of 2026," aims to amend title 11 of the United States Code. It specifically modifies bankruptcy eligibility requirements regarding debt limits. The bill changes the debt limit for small business debtors and modifies the consumer debt limit for individuals filing under chapter 13. These changes apply to any case commenced on or after the date of enactment.
Yes· 3 of 7
Would business owners be better off under this?+5
The bill increases the amount of debt a small business can have while remaining eligible for specific bankruptcy protections.
Does this make it easier to run a small business?+5
The bill expands bankruptcy eligibility for small businesses by adjusting the debt threshold.
Does this protect the right to fair treatment by the courts?+4
Expanding debt limits provides more avenues for individuals to resolve financial obligations through legal processes.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Small Business Debt Limit Adjustment: Under Section 2(a), the debt limit for a person engaged in commercial or business activities is set at an amount not more than $7,500,000. This adjustment modifies the criteria for what constitutes a debtor in this category.
-
Consumer Debt Limit Adjustment: Under Section 2(b), an individual with regular income (or an individual and their spouse, excluding stockbrokers or commodity brokers) may be a debtor under chapter 13 if their aggregate noncontingent, liquidated debts are less than $2,750,000.
Potential Negative Impacts for People
-
Exclusions for Specific Debtors: Section 2(a)(B) excludes certain groups from the small business debt limit, such as members of affiliated groups with debts exceeding $7,500,000, corporations subject to specific Securities Exchange Act reporting requirements, and affiliates of those corporations.
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Exclusions for Specific Professions: Section 2(b) specifies that the updated consumer debt limit for individuals and spouses does not include stockbrokers or commodity brokers.
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
- Governance And Ideology
- Improves Due Process+4
- Social Issues And Justice
- Improves Poverty Reduction+3
- 8/10/2026
- Message on Senate action sent to the House.
- Held at the desk.
- Received in the House.
- 8/3/2026
- Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
- Passed Senate without amendment by Unanimous Consent. (consideration: CR S4412; text: CR S4412)
- 3/4/2026
- Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.
- 3/3/2026
- Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
- 5 Cosponsors added.
- Introduced in Senate
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.
John CornynRepublican · Texas
Christopher CoonsDemocrat · Delaware
Richard DurbinDemocrat · Illinois
Lindsey GrahamRepublican · South Carolina
Sheldon WhitehouseDemocrat · Rhode Island