YourVoice.Now Summary
Your MoneyCorporate BenefitsA higher debt ceiling for chapter 13 bankruptcy — $2,750,000, with home loans and other debt counted as one.
Your Money
Chapter 13 is the repayment plan that lets someone with regular income keep a home or car. Owing more than the limit shuts that door. The new ceiling would be $2,750,000 for a person, or for a married couple filing together.
One combined number would replace the separate caps used today, which sit near $1.6 million for debt backed by property and about $527,000 for the rest. Someone with a large mortgage but little other debt could qualify for the first time.
Corporate Benefits
The small-business route through chapter 11 has its own debt ceiling. It would be set at $7,500,000. Public companies that report to the Securities and Exchange Commission, and firms affiliated with them, still could not use it.
More about this bill
People with steady income could carry far more debt and still use chapter 13 bankruptcy. Chapter 13 lets you keep a home or car while you pay debts off under a court plan. The new cutoff would be $2,750,000 in fixed debts. Debt backed by property and debt that is not would count together toward that one number. Small business owners would get more room too. The small-business track in chapter 11 would be open to those with up to $7,500,000 in debt. Public companies and firms tied to them stay shut out. Both limits would apply to cases filed on or after the day the bill becomes law.
Congressional Summary
Bankruptcy Threshold Adjustment Act of 2026This 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.)
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2026-02-26
- Date Added
- 2026-08-26
- Source
- Congress.gov →
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