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Regulatory or Legal Changes Top 2
Chapter 13 Consumer Bankruptcy Debt Limit Increase to $2.75M
Replaces separate secured and unsecured debt caps for Chapter 13 bankruptcy with a single combined $2.75 million limit, allowing more individuals and couples to reorganize debt under that chapter rather than liquidating under Chapter 7.
- Population Scope Low Only individuals with regular income carrying noncontingent liquidated debts approaching $2.75 million are newly eligible — a financially narrow slice well under 10% of the U.S. population.
- Budgetary Magnitude Low No funds are authorized, appropriated, or obligated by this provision.
- Legal / Regulatory Depth Medium Replaces a bifurcated secured/unsecured eligibility structure with a single aggregate cap, changing the substantive statutory criteria that determine which debtors may access Chapter 13 — a reorganization of an eligibility rule rather than a new mandate or prohibition.
- Degree of Discretion Granted Low The new limit is a fixed statutory dollar figure with no delegation of rulemaking authority and no agency discretion over its application.
- Implementation & Enforcement Burden Low No new enforcement infrastructure is created; bankruptcy courts apply the revised threshold through existing case-by-case petition review.
- Temporal Commitment High Persists indefinitely until Congress acts to repeal or amend it.
No signal yet
Regulatory or Legal Changes Top 2
Small Business Bankruptcy Debt Limit Increase to $7.5M
Raises the maximum debt a small business can carry to qualify for streamlined bankruptcy relief under Subchapter V, making more businesses eligible to reorganize under those faster, lower-cost rules.
- Population Scope Low Affects only small business debtors with debt between the prior threshold and $7.5 million, excluding publicly reporting corporations and affiliated groups — a narrow commercial subset with no meaningful share of the U.S. population.
- Budgetary Magnitude Low Same as above.
- Legal / Regulatory Depth Medium Permanently resets the statutory debt ceiling governing Subchapter V eligibility, changing which businesses qualify for streamlined reorganization — an adjustment to an existing eligibility rule rather than the creation of a new mandate or enforcement authority.
- Degree of Discretion Granted Low The $7.5 million ceiling is a fixed statutory figure leaving no rulemaking delegation or agency discretion in its application.
- Implementation & Enforcement Burden Low No new enforcement mechanisms are created; bankruptcy courts apply the revised threshold through existing petition procedures.
- Temporal Commitment High Same as above.
No signal yet
No possible riders have been surfaced for this bill.
Summary
This bill raises the debt limits that determine who can use certain types of bankruptcy protection. Small businesses can now file under a special bankruptcy chapter if they have up to $7.5 million in debt, up from a lower prior threshold. Individual consumers and couples can use Chapter 13 bankruptcy if they owe less than $2.75 million in combined debt, replacing the old separate limits for secured and unsecured debt.
AI-generated summary, pending human review.
| Version | Event | Date | User support | Your vote | Roll calls |
|---|---|---|---|---|---|
| Original |
Initial publication
Feb 26, 2026
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Feb 26, 2026 | No votes yet | — | — |
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Regulatory or Legal Changes Top 2
Chapter 13 Consumer Bankruptcy Debt Limit Increase to $2.75M
Replaces separate secured and unsecured debt caps for Chapter 13 bankruptcy with a single combined $2.75 million limit, allowing more individuals and couples to reorganize debt under that chapter rather than liquidating under Chapter 7.
- Population Scope Low Only individuals with regular income carrying noncontingent liquidated debts approaching $2.75 million are newly eligible — a financially narrow slice well under 10% of the U.S. population.
- Budgetary Magnitude Low No funds are authorized, appropriated, or obligated by this provision.
- Legal / Regulatory Depth Medium Replaces a bifurcated secured/unsecured eligibility structure with a single aggregate cap, changing the substantive statutory criteria that determine which debtors may access Chapter 13 — a reorganization of an eligibility rule rather than a new mandate or prohibition.
- Degree of Discretion Granted Low The new limit is a fixed statutory dollar figure with no delegation of rulemaking authority and no agency discretion over its application.
- Implementation & Enforcement Burden Low No new enforcement infrastructure is created; bankruptcy courts apply the revised threshold through existing case-by-case petition review.
- Temporal Commitment High Persists indefinitely until Congress acts to repeal or amend it.
No signal yet
Regulatory or Legal Changes
Chapter 13 Consumer Bankruptcy Debt Limit Increase to $2.75M
Regulatory or Legal Changes Top 2
Small Business Bankruptcy Debt Limit Increase to $7.5M
Raises the maximum debt a small business can carry to qualify for streamlined bankruptcy relief under Subchapter V, making more businesses eligible to reorganize under those faster, lower-cost rules.
- Population Scope Low Affects only small business debtors with debt between the prior threshold and $7.5 million, excluding publicly reporting corporations and affiliated groups — a narrow commercial subset with no meaningful share of the U.S. population.
- Budgetary Magnitude Low Same as above.
- Legal / Regulatory Depth Medium Permanently resets the statutory debt ceiling governing Subchapter V eligibility, changing which businesses qualify for streamlined reorganization — an adjustment to an existing eligibility rule rather than the creation of a new mandate or enforcement authority.
- Degree of Discretion Granted Low The $7.5 million ceiling is a fixed statutory figure leaving no rulemaking delegation or agency discretion in its application.
- Implementation & Enforcement Burden Low No new enforcement mechanisms are created; bankruptcy courts apply the revised threshold through existing petition procedures.
- Temporal Commitment High Same as above.
No signal yet
Regulatory or Legal Changes
Small Business Bankruptcy Debt Limit Increase to $7.5M
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