[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7730 Reported in House (RH)]
<DOC>
Union Calendar No. 684
119th CONGRESS
2d Session
H. R. 7730
[Report No. 119-783]
To amend title 11, United States Code, to modify certain bankruptcy
eligibility requirements, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2026
Mr. Cline (for himself, Mr. Correa, Ms. Lee of Florida, and Mr. Neguse)
introduced the following bill; which was referred to the Committee on
the Judiciary
August 27, 2026
Additional sponsors: Mr. Gooden, Ms. Lofgren, and Mr. Taylor
August 27, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on
February 26, 2026]
_______________________________________________________________________
A BILL
To amend title 11, United States Code, to modify certain bankruptcy
eligibility requirements, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bankruptcy Threshold Adjustment
Act''.
SEC. 2. DEBT LIMIT MODIFICATIONS.
(a) Modification to the Small Business Bankruptcy Debt Limit.--
Section 1182(1) of title 11, United States Code, is amended to read as
follows:
``(1) Debtor.--The term `debtor'--
``(A) subject to subparagraph (B), means a person
engaged in commercial or business activities (including
any affiliate of such person that is also a debtor
under this title and excluding a person whose primary
activity is the business of owning single asset real
estate) that has aggregate noncontingent liquidated
secured and unsecured debts as of the date of the
filing of the petition or the date of the order for
relief in an amount not more than $7,500,000 (excluding
debts owed to 1 or more affiliates or insiders) not
less than 50 percent of which arose from the commercial
or business activities of the debtor; and
``(B) does not include--
``(i) any member of a group of affiliated
debtors under this title that has aggregate
noncontingent liquidated secured and unsecured
debts in an amount greater than $7,500,000
(excluding debt owed to 1 or more affiliates or
insiders);
``(ii) any debtor that is a corporation
subject to the reporting requirements under
section 13 or 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78m, 78o(d)); or
``(iii) any debtor that is an affiliate of
a corporation described in clause (ii).''.
(b) Modification to the Consumer Bankruptcy Debt Limit.--Section
109 of title 11, United States Code, is amended by striking subsection
(e) and inserting the following:
``(e) Only an individual with regular income that owes, on the date
of the filing of the petition, noncontingent, liquidated debts that
aggregate less than $2,750,000 or an individual with regular income and
such individual's spouse, except a stockbroker or a commodity broker,
that owe, on the date of the filing of the petition, noncontingent,
liquidated debts that aggregate less than $2,750,000 may be a debtor
under chapter 13 of this title.''.
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall apply to any case that is
commenced under title 11, United States Code, on or after the date of
enactment of this Act.
Union Calendar No. 684
119th CONGRESS
2d Session
H. R. 7730
[Report No. 119-783]
_______________________________________________________________________
A BILL
To amend title 11, United States Code, to modify certain bankruptcy
eligibility requirements, and for other purposes.
_______________________________________________________________________
August 27, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed