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H.R. 7730

Bankruptcy Threshold Adjustment Act

📅 Aug 27, 2026
Summary:
• Increases the debt limit for small business bankruptcy eligibility from an unspecified amount to $7,500,000 in aggregate noncontingent liquidated secured and unsecured debts
• Raises the debt limit for individual consumer bankruptcy under chapter 13 to $2,750,000 in noncontingent, liquidated debts
• Applies to bankruptcy cases commenced on or after the date of enactment
Additional Details:
• Excludes debts owed to affiliates or insiders when calculating the $7,500,000 small business debt limit
• Maintains existing exclusions for small business bankruptcy including corporations subject to Securities Exchange Act reporting requirements and their affiliates
• Allows both individual debtors with regular income and married couples (except stockbrokers or commodity brokers) to qualify for chapter 13 bankruptcy under the new $2,750,000 limit
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