Proposed Bankruptcy Threshold Adjustment Act of 2026
June 24, 2026
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The Frame
If enacted, this change would allow small businesses with up to $7.5 million in debt and individuals with up to $2.75 million in debt to qualify for specific bankruptcy chapters, potentially altering the legal options available to debtors and creditors.
Potentially affected actors named in the source documents. Mention is not a position.
Small business owners
The amendment changes the debt thresholds that determine their eligibility for specific bankruptcy proceedings.
Individual debtors
The amendment increases the debt limit for individuals seeking to file for Chapter 13 bankruptcy.
Last recorded activity June 24, 2026.
Next step not available in the current record.
Summary
Key Facts
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Frequently Asked Questions
Who would be eligible for the new small business bankruptcy limit?
How does this change individual bankruptcy?
Why It Matters
If enacted, this change would allow small businesses with up to $7.5 million in debt and individuals with up to $2.75 million in debt to qualify for specific bankruptcy chapters, potentially altering the legal options available to debtors and creditors.
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Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Expansion of Bankruptcy Access
The amendment continues a trend of raising debt limits to allow more entities to utilize streamlined bankruptcy chapters.
Connected Entities
Sources
www.govinfo.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy20Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz15Current news / social attention level
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