Congress

Bankruptcy Threshold Adjustment Act Signed Into Law as Public Law 119-142

The Bankruptcy Threshold Adjustment Act (H.R. 7730) became law on November 10, 2026, as Public Law 119-142. Rep. Ben Cline (R-Virginia) introduced it on February 26, 2026, with 6 cosponsors.

What the Law Does

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.)

This summary from the Congressional Research Service describes the bill as introduced; it was amended on its way through Congress, so details of the final law may differ.

How It Passed

  • February 26, 2026: Introduced in the House
  • August 27, 2026: Reported by committee
  • September 16, 2026: Passed the House by voice vote
  • September 28, 2026: Passed the Senate by unanimous consent
  • November 10, 2026: Signed into law

The text and full legislative history are on Congress.gov.