Bankruptcy Threshold Adjustment Act of 2026

This bill raises the debt thresholds for qualifying for certain bankruptcy protections under U.S. law. It increases the small business bankruptcy limit (Chapter 11) from $750,000 to $7.5 million in total debts, allowing more small business owners to file. For consumer bankruptcy (Chapter 13), it raises the individual debt limit from $1 million to $2.75 million (or $2.75 million for a couple), excluding stockbrokers and commodity brokers. The changes apply to cases filed after the bill's enactment, directly affecting small business owners and consumers with higher debt levels who previously couldn't qualify.