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119th Congress · S. 3977 · Passed Origin

Bankruptcy Threshold Adjustment Act of 2026

This bill restores changes that expired in 2024 applicable to debt limits for Subchapter V (small business reorganization) and Chapter 13 (the wage earner's plan) bankruptcies. Specifically, the bill increases the debt limit under Subchapter V from approximately $3.4 million to $7.5 million and increases the cumulative debt limit under Chapter 13 from approximately $2.1 million to $2.75 million. The bill also applies both secured and unsecured debt towards the Chapter 13 limit. (Currently, separate limits apply to secured and unsecured debt under Chapter 13 bankruptcy.)

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SubjectsBankruptcyDebt collectionSmall business
Sponsor
Charles E. Grassley, R-IA
11 terms · @ChuckGrassley
135 Hart Senate Office Building Washington DC 20510 · 202-224-3744
Cosponsors (5)
  • Richard J. Durbin, D-ILOriginal cosponsor
    Co-sponsored Mar 3, 2026 · 12 terms · @SenatorDurbin
  • John Cornyn, R-TXOriginal cosponsor
    Co-sponsored Mar 3, 2026 · 5 terms · @JohnCornyn
  • Sheldon Whitehouse, D-RIOriginal cosponsor
    Co-sponsored Mar 3, 2026 · 4 terms · @SenWhitehouse
  • Lindsey O. Graham, R-SCOriginal cosponsor
    Co-sponsored Mar 3, 2026 · 8 terms · @GrahamBlog
  • Christopher A. Coons, D-DEOriginal cosponsor
    Co-sponsored Mar 3, 2026 · 3 terms · @ChrisCoons
Actions (8)
  1. Aug 10, 2026 · via House floor actions
    Held at the desk.
  2. Aug 10, 2026 · via House floor actions
    Received in the House.
  3. Aug 10, 2026 · via Senate
    Message on Senate action sent to the House.
  4. Aug 3, 2026 · via Senate
    Passed Senate without amendment by Unanimous Consent. (consideration: CR S4412; text: CR S4412)
  5. Aug 3, 2026 · via Library of Congress
    Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
  6. Mar 4, 2026 · via Senate
    Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.
  7. Mar 3, 2026 · via Senate
    Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
  8. Mar 3, 2026 · via Library of Congress
    Introduced in Senate
IntroducedMar 3, 2026
Policy areaFinance and Financial Sector
RelatedH.R. 7730
⎔ Pre-anchorPermanent record — anchoring ships soonEpoch 2026-Q4