S. 3977 Passed the Senate Finance and Financial Sector

Bankruptcy Threshold Adjustment Act of 2026

A bill to amend title 11, United States Code, to modify certain bankruptcy eligibility requirements, and for other purposes.

  1. Introduced
  2. Committee
  3. Passed Senate
  4. Passed House
  5. To President
  6. Became law
Sponsor Sen. Grassley, Chuck [R-IA] Introduced March 3, 2026 Cosponsors 5 (3 D, 2 R) Latest action August 10, 2026

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.)

Summary by the Congressional Research Service, Library of Congress.

Congress.gov

Actions

  1. Aug 10, 2026 Held at the desk.
  2. Aug 10, 2026 Received in the House.
  3. Aug 10, 2026 Message on Senate action sent to the House.
  4. Aug 3, 2026 Passed Senate without amendment by Unanimous Consent. (consideration: CR S4412; text: CR S4412)
  5. Aug 3, 2026 Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
  6. Mar 4, 2026 Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.
  7. Mar 3, 2026 Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
  8. Mar 3, 2026 Introduced in Senate

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