Bankruptcy Threshold Adjustment Act Signed into Law
The bipartisan Bankruptcy Threshold Adjustment Act, H.R. 7730, , 119th Cong. § 2(a) (2026) was signed into law on 11/10/26, by President Trump and applies to bankruptcy cases filed on or after 11/10/26. The Bankruptcy Threshold Adjustment Act, sponsored by Rep. Ben Cline (R-Va.), permanently restores the Subchapter V Chapter 11 debt eligibility limit to $7.5 million, reflecting the recommendations of ABI’s Subchapter V Task Force. The legislation also increases the Chapter 13 debt limit to $2.75 million and eliminates the distinction between secured and unsecured debt for eligibility purposes, consistent with reforms proposed by ABI’s Commission on Consumer Bankruptcy. The Senate previously passed companion legislation, S. 3977, sponsored by Senators Charles Grassley (R-Iowa) and Dick Durbin (D-Ill.).