Bankruptcy Threshold Adjustment Act

This bill, known as the Bankruptcy Threshold Adjustment Act of 2026, raises the maximum debt amounts individuals and small businesses can owe while still being eligible to file for Chapter 13 bankruptcy. For small businesses, it increases the debt limit from $2,750,000 to $7,500,000, while for individual consumers, it raises the limit from $483,000 to $2,750,000. The changes apply to cases filed on or after the bill becomes law and affect people who meet the income requirements for Chapter 13 repayment plans. The bill excludes large corporations and certain affiliated business groups from the new higher limits.