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 too much shuts that door. Fixed debts would have to add up to less than $2,750,000, whether one person files or a married couple files together.
The bill would strike the current eligibility subsection and put one combined number in its place. Debt backed by property and debt that is not would be added together, rather than measured against two separate caps. 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, not counting debt owed to insiders or affiliates, and at least half of that debt must come from the business. Public companies that report to the Securities and Exchange Commission, and firms affiliated with them, 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 would be shut out. Both limits would apply to cases filed on or after the day the bill becomes law.
Congressional Summary
Congress's official summary of this bill still describes an earlier version of the text, so we have left it out here. You can read it on Congress.gov.
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 →
Like reading a bill in plain English?
We're building an app that does this for every bill in Congress and lets you tell your reps how you want them to vote. We're a small team getting ready to launch, and we're trying to show investors that real people want this. Be one of them. Help us get it built. Leave your email and we'll tell you the moment the app is ready.