S. 3977: Bankruptcy Threshold Adjustment Act of 2026

119th Congress · introduced 2026-03-03 · Finance and Financial Sector · Latest: Held at the desk.

federal

Official title

Bankruptcy Threshold Adjustment Act of 2026

Plain summary

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.)

Congressional Research Service summary (Passed Senate), quoted unchanged (nonpartisan). Read the source.

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Official text

Bankruptcy Threshold Adjustment Act of 2026

Source: Congressional Research Service summary (Passed Senate)

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Officials and money

Sponsor: Sen. Grassley, Chuck [R-IA] · 5 cosponsors

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Sources

Congressional Research Service summary (Passed Senate)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-119s3977.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/119/s>

Record fed-us-cong119-s3977 · catalog fed-us-congress-bills-cong119 · updated 2026-11-03 by psicol fed-bills