Bankruptcy Threshold Adjustment Act

This bill brings back rules that expired in 2024 about how much debt someone can owe and still qualify for certain types of bankruptcy. It raises the debt limit for small business bankruptcy from about $3.4 million to $7.5 million, and raises the debt limit for individual wage earner bankruptcy from about $2.1 million to $2.75 million. It also changes how debt is counted for wage earner bankruptcy by combining all types of debt into one single limit, instead of having separate limits for different kinds of debt.

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