Bankruptcy Threshold Adjustment Act of 2026

This bill brings back some bankruptcy rules that expired in 2024. It raises the maximum amount of debt that small businesses can have when filing for a type of bankruptcy called Subchapter V, going from about $3.4 million to $7.5 million. It also raises the debt limit for Chapter 13 bankruptcy, which is a plan for wage earners, from about $2.1 million to $2.75 million. Additionally, instead of having separate limits for different kinds of debt in Chapter 13, the bill combines all debt into one single limit.

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