Ben Cline (R-VA)
Bankruptcy Threshold Adjustment Act
A Republican bill with 3 Democratic cosponsors · See all 6 cosponsors
Last activity — Became Public Law No: 119-142.
Became law
Passed both chambers and was signed by the President, or became law without a signature.
Nothing more in Congress: it is law. When it takes effect depends on the dates written into it — some parts start at once, others a year or more later.
Its path through Congress
- Introduced
- Passed House voice vote
- Passed Senate unanimous consent
- To President
- Became Law
No one's position on it was recorded: the House by voice vote (members called out yes or no together), and the Senate by unanimous consent (no one objected, so there was no vote).
What this bill would do
This bill is called the Bankruptcy Threshold Adjustment Act. It updates the debt limits for people and small businesses filing for bankruptcy. Specifically, it changes the debt limit for small business debtors under section 1182(1) of title 11, United States Code. It also changes the debt limit for individuals under section 109 of title 11, United States Code. These new rules apply to any bankruptcy case started on or after the date the Act is enacted.
Yes· 3 of 7
- Scored +5
Would business owners be better off under this?
The adjustment to the debt limit offers enhanced bankruptcy protections for many small businesses.
- Scored +5
Does this make it easier to run a small business?
The bill expands bankruptcy eligibility for small businesses by adjusting debt thresholds.
- Scored +3
Would households on low incomes be better off under this?
The higher debt threshold for Chapter 13 provides more breathing room for individuals with regular income.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 2(a) changes the small business bankruptcy debt limit so that a person with commercial or business debts up to $7,500,000 can qualify as a debtor, which could help more struggling small businesses get relief.
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Section 2(b) raises the consumer bankruptcy debt limit for individuals with regular income to less than $2,750,000, which could allow more everyday people to qualify as a debtor under chapter 13.
Potential Negative Impacts for People
-
Section 2(a) specifically excludes any member of a group of affiliated debtors that has total debts greater than $7,500,000 from being considered a small business debtor, which might deny relief to certain connected businesses.
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Section 2(a) excludes any debtor that is a corporation subject to specific reporting requirements under the Securities Exchange Act of 1934, or an affiliate of such a corporation, blocking them from using this small business bankruptcy option.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would business owners be better off under this? — The adjustment to the debt limit offers enhanced bankruptcy protections for many small businesses. Would households on low incomes be better off under this? — The higher debt threshold for Chapter 13 provides more breathing room for individuals with regular income. Would middle-income households be better off under this? — The bill's updated thresholds assist middle-income individuals and small business owners in managing significant debt.
- Economy And Finance
- Does this make it easier to run a small business? — The bill expands bankruptcy eligibility for small businesses by adjusting debt thresholds. Does this give people more protection from unfair business practices? — The bill enhances consumer options by increasing the debt limit for Chapter 13 bankruptcy filings.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — Increasing the debt limit for Chapter 13 may help individuals manage debt and avoid extreme poverty.
- Governance And Ideology
- Does this protect the right to fair treatment by the courts? — The bill facilitates more accessible legal debt relief processes for specific demographics.
- Enrolled Bill
The final version, on its way to the President
What changed from Received in Senate: No change to the wording. Only the printed details that record the bill’s progress, such as the heading and dates, are different.
Arrived from the other chamber; nothing has been done to it there yet
What changed from Engrossed in House: No change to the wording. Only the printed details that record the bill’s progress, such as the heading and dates, are different.
- 11/10/2026
- Signed by President.
- 11/5/2026
- Presented to President.
- 10/14/2026
- Message on Senate action sent to the House.
- 9/28/2026
- Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)
- Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)
- 9/17/2026
- Received in the Senate, read twice.
- 9/16/2026
- Motion to reconsider laid on the table Agreed to without objection.
- Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5939-5940)
- On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5939-5940)
- DEBATE - The House proceeded with forty minutes of debate on H.R. 7730.
- Considered under suspension of the rules. (consideration: CR H5939-5941)
- Mr. Cline moved to suspend the rules and pass the bill, as amended.
- 8/27/2026
- Reported (Amended) by the Committee on Judiciary. H. Rept. 119-783.
- Placed on the Union Calendar, Calendar No. 684.
- 6/8/2026
- 1 Cosponsor added.
- 3/26/2026
- Committee Consideration and Mark-up Session Held
- Ordered to be Reported (Amended) by Voice Vote.
- 3/25/2026
- 1 Cosponsor added.
- 3/24/2026
- 1 Cosponsor added.
- 2/26/2026
- Referred to the House Committee on the Judiciary.
- 3 Cosponsors added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
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