US Congress · 119th Congress (2025-2026)

S 3977Passed Origin Chamber

Bankruptcy Threshold Adjustment Act of 2026

Source of recordUS Congress · congress.govLast synced Aug 29, 2026

Chamber

Senate

Progress

Where this bill stands in the legislative process.

Introduced
Passed Senate
Passed House
To President
Became Law

Overview

This bill adjusts the debt limits for bankruptcy eligibility under U.S. law. Specifically, it raises the debt limit for small business bankruptcies from $3.39 million to $7.5 million, while lowering the debt limit for individual consumer bankruptcies from $3.9 million to $2.75 million. The bill also makes changes to define which entities are considered part of a group of affiliated debtors. These changes are intended to make bankruptcy more accessible for certain businesses and individuals.

Key provisions

Increases the small business bankruptcy debt limit to $7.5 million.
Lowers the consumer bankruptcy debt limit to $2.75 million.
Modifies the definition of a ‘group of affiliated debtors’ in small business bankruptcy.
Excludes certain corporations and their affiliates from the small business bankruptcy debt limit.
Specifies that stockbrokers and commodity brokers are excluded from the consumer bankruptcy debt limit.

Who is affected

Small business owners
Individuals seeking bankruptcy relief
Creditors
Bankruptcy attorneys
The bankruptcy court system

Notable changes

Changes the debt thresholds for both small business and consumer bankruptcies.
Clarifies the definition of affiliated debtors in small business cases.
Excludes specific types of corporations from the small business debt limit.

Bill text

Read the latest version inline or switch to a previous version.

Mar 4, 2026XMLView source

Text extraction is in progress. View the official source.

Legislative history

8 recorded actions

Mar 3, 2026Senate

Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.

Mar 3, 2026

Introduced in Senate

Mar 4, 2026Senate

Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.

Aug 3, 2026Senate

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.

Aug 10, 2026House

Held at the desk.

Aug 10, 2026House

Received in the House.

Aug 10, 2026Senate

Message on Senate action sent to the House.

Votes

Recorded roll calls and chamber actions on this bill.

Passage without roll call

The official record shows passage by unanimous consent or voice vote where no roll call was taken. No member-level tally is available for these steps, and the district map does not apply.

8/3/2026SenateUnanimous consent
Passed Senate without amendment by Unanimous Consent. (consideration: CR S4412; text: CR S4412)
No roll-call vote on record for this action.
8/3/2026Unanimous consent
Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
No roll-call vote on record for this action.

Floor votes and chamber actions

Recorded roll calls list how each member voted. Unanimous consent or voice vote appears in the official action history without a roll call; no member-level tally is available for those steps.

Passage without roll call

Aug 3, 2026SenateUnanimous consent
Passed Senate without amendment by Unanimous Consent. (consideration: CR S4412; text: CR S4412)
No roll-call vote on record for this action.
Aug 3, 2026Unanimous consent
Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
No roll-call vote on record for this action.

Geography

Recorded positions across the country.

No public positions recorded for this legislation.

Arguments

Reasons offered for and against this legislation.

Arguments in favor

No arguments in favor have been submitted.

Submit yours

Arguments opposed

No arguments opposed have been submitted.

Submit yours

Bankruptcy Threshold Adjustment Act of 2026

Progress