AI-assisted analysis based on the official CRS summary. Source version: Aug 26, 2026. Analysis updated: Sep 15, 2026.
01 — The Text
What.
- Restores changes to bankruptcy debt thresholds that expired in 2024
- Increases Subchapter V (small business reorganization) debt limit from approximately $3.4 million to $7.5 million
- Increases Chapter 13 (wage earner's plan) cumulative debt limit from approximately $2.1 million to $2.75 million
- Combines secured and unsecured debt under a single Chapter 13 limit (currently treated as separate limits)
02 — The Stakes
So what?
- Enables small businesses with higher debt levels to access reorganization protections
- Allows wage earners with higher combined debt to use Chapter 13 bankruptcy protection
- Changes how Chapter 13 debt eligibility is calculated by consolidating separate secured/unsecured thresholds
- No effects on other bankruptcy chapters or creditor procedures are documented
03 — The Path
Now what?
- Passed Senate without amendment by Unanimous Consent on August 3, 2026
- Received in House on August 10, 2026 and held at the desk
- No subsequent House action recorded as of available data
Legislative History
Actions.
- Aug 10, 2026 — Held at the desk.
- Aug 10, 2026 — Received in the House.
- Aug 10, 2026 — Message on Senate action sent to the House.
- Aug 3, 2026 — Passed Senate without amendment by Unanimous Consent. (consideration: CR S4412; text: CR S4412)
- Aug 3, 2026 — Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
- Mar 4, 2026 — Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.
- Mar 3, 2026 — Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
- Mar 3, 2026 — Introduced in Senate