S. 3977, the Bankruptcy Threshold Adjustment Act of 2026, passed the Senate on August 3, 2026.
S. 3977 — Bankruptcy Threshold Adjustment Act of 2026
What it does
This bill raises the debt thresholds that determine who can file for bankruptcy protection. It increases the small-business bankruptcy limit from roughly $2.7 million to $7.5 million in total debts, and raises the consumer bankruptcy limit (Chapter 13) from roughly $1.4 million to $2.75 million. The effect is that individuals and small businesses with higher debt loads can now access bankruptcy courts, while those above the new thresholds remain locked out.
Quorum's transparency scan found no buried provisions in Bankruptcy Threshold Adjustment Act of 2026.
What happens next
S. 3977 passed the Senate. It now moves to the other chamber.
Who is behind it
Filed by Chuck Grassley. Cosponsored by Christopher Coons, John Cornyn, Lindsey Graham and Richard Durbin.