H.R. 7730

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7730 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7730

To amend title 11, United States Code, to modify certain bankruptcy 
eligibility requirements, and for other purposes.

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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

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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 
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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