[Congressional Record Volume 172, Number 126 (Monday, August 3, 2026)]
[Senate]
[Page S4412]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              BANKRUPTCY THRESHOLD ADJUSTMENT ACT OF 2026

  Mr. MORAN. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 347, S. 3977.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (S. 3977) to amend title 11, United States Code, to 
     modify certain bankruptcy eligibility requirements, and for 
     other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. MORAN. I now ask unanimous consent that the bill be considered 
read a third time and passed and that the motion to reconsider be 
considered made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 3977) was ordered to be engrossed for a third reading, 
was read the third time, and passed as follows:

                                S. 3977

       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 of 2026''.

     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.

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