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Bankruptcy Threshold Adjustment Act of 2026

The Act modifies certain bankruptcy eligibility requirements by adjusting the debt limits for small businesses and consumers.
Key points
Sets the small business bankruptcy debt limit at $7.5 million.
Sets the consumer bankruptcy debt limit for individuals under Chapter 13 at $2.75 million.
Applies the $2.75 million debt limit to both an individual and an individual with their spouse.
The amendments apply to any case commenced on or after the date of enactment of the Act.
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Status: Placed on Calendar
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Additional Information
Print number: 119_S_3977
Sponsor: Sen. Grassley, Chuck [R-IA]
Process start date: 2026-03-03
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-3.1-pro-preview
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Bankruptcy Threshold Adjustment Act of 2026

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_3977.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2026-03-03.

What are the main provisions?

Key points include:

  • Sets the small business bankruptcy debt limit at $7.5 million.
  • Sets the consumer bankruptcy debt limit for individuals under Chapter 13 at $2.75 million.
  • Applies the $2.75 million debt limit to both an individual and an individual with their spouse.
  • The amendments apply to any case commenced on or after the date of enactment of the Act.
What is the specific legal status?

The current status is Placed on Calendar.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Grassley, Chuck [R-IA].

What is the latest detailed status?

The latest detailed status is: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-03-07.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Courts and Law Economy