H.R. 7730

IB
  Union Calendar No. 684
  119TH CONGRESS
  2D SESSION
  H. R. 7730
  [Report No. 119–783]
  To amend title 11, United States Code, to modify certain bankruptcy
  eligibility requirements, and for other purposes.
  IN THE HOUSE OF REPRESENTATIVES
  FEBRUARY 26, 2026
  Mr. CLINE (for himself, Mr. CORREA, Ms. LEE of Florida, and Mr. NEGUSE)
  introduced the following bill; which was referred to the Committee on the
  Judiciary
  AUGUST 27, 2026
  Additional sponsors: Mr. GOODEN, Ms. LOFGREN, and Mr. TAYLOR
  AUGUST 27, 2026
  Reported with an amendment, committed to the Committee of the Whole
  House on the State of the Union, and ordered to be printed
  [Strike out all after the enacting clause and insert the part printed in italic]
  [For text of introduced bill, see copy of bill as introduced on February 26, 2026]
ssavage on LAPJG3WLY3PROD with BILLS
  VerDate Sep 11 2014   21:28 Aug 27, 2026    Jkt 069200   PO 00000   Frm 00001   Fmt 6652   Sfmt 6652   E:\BILLS\H7730.RH   H7730
2
  A BILL
  To amend title 11, United States Code, to modify certain
  bankruptcy eligibility requirements, and for other purposes.
ssavage on LAPJG3WLY3PROD with BILLS
  •HR 7730 RH
  VerDate Sep 11 2014   21:28 Aug 27, 2026   Jkt 069200   PO 00000   Frm 00002   Fmt 6652   Sfmt 6652   E:\BILLS\H7730.RH   H7730
3
1Be it enacted by the Senate and House of Representa-
  2 tives of the United States of America in Congress assembled,
3   SECTION 1. SHORT TITLE.
4This Act may be cited as the ‘‘Bankruptcy Threshold
  5 Adjustment Act’’.
6   SEC. 2. DEBT LIMIT MODIFICATIONS.
7(a) MODIFICATION TO THE SMALL BUSINESS BANK-
8   RUPTCY DEBT LIMIT.—Section 1182(1) of title 11, United
  9 States Code, is amended to read as follows:
10‘‘(1) DEBTOR.—The term ‘debtor’—
11‘‘(A) subject to subparagraph (B), means a
12person engaged in commercial or business activi-
13ties (including any affiliate of such person that
14is also a debtor under this title and excluding a
15person whose primary activity is the business of
16owning single asset real estate) that has aggre-
17gate noncontingent liquidated secured and unse-
18cured debts as of the date of the filing of the peti-
19tion or the date of the order for relief in an
20amount not more than $7,500,000 (excluding
21debts owed to 1 or more affiliates or insiders) not
22less than 50 percent of which arose from the com-
23mercial or business activities of the debtor; and
24‘‘(B) does not include—
ssavage on LAPJG3WLY3PROD with BILLS
  •HR 7730 RH
  VerDate Sep 11 2014   21:28 Aug 27, 2026   Jkt 069200   PO 00000   Frm 00003   Fmt 6652   Sfmt 6203   E:\BILLS\H7730.RH   H7730
4
1‘‘(i) any member of a group of affili-
2ated debtors under this title that has aggre-
3gate noncontingent liquidated secured and
4unsecured debts in an amount greater than
5$7,500,000 (excluding debt owed to 1 or
6more affiliates or insiders);
7‘‘(ii) any debtor that is a corporation
8subject to the reporting requirements under
9section 13 or 15(d) of the Securities Ex-
10change Act of 1934 (15 U.S.C. 78m,
1178o(d)); or
12‘‘(iii) any debtor that is an affiliate of
13a corporation described in clause (ii).’’.
14(b) MODIFICATION TO THE CONSUMER BANKRUPTCY
  15 DEBT LIMIT.—Section 109 of title 11, United States Code,
  16 is amended by striking subsection (e) and inserting the fol-
  17 lowing:
18‘‘(e) Only an individual with regular income that
  19 owes, on the date of the filing of the petition, noncontingent,
  20 liquidated debts that aggregate less than $2,750,000 or an
  21 individual with regular income and such individual’s
  22 spouse, except a stockbroker or a commodity broker, that
  23 owe, on the date of the filing of the petition, noncontingent,
  24 liquidated debts that aggregate less than $2,750,000 may
ssavage on LAPJG3WLY3PROD with BILLS
  25 be a debtor under chapter 13 of this title.’’.
  •HR 7730 RH
  VerDate Sep 11 2014   21:28 Aug 27, 2026   Jkt 069200   PO 00000   Frm 00004   Fmt 6652   Sfmt 6203   E:\BILLS\H7730.RH   H7730
5
1   SEC. 3. EFFECTIVE DATE.
2The amendments made by this Act shall apply to any
  3 case that is commenced under title 11, United States Code,
  4 on or after the date of enactment of this Act.
ssavage on LAPJG3WLY3PROD with BILLS
  •HR 7730 RH
  VerDate Sep 11 2014   21:28 Aug 27, 2026   Jkt 069200   PO 00000   Frm 00005   Fmt 6652   Sfmt 6203   E:\BILLS\H7730.RH   H7730
  Union Calendar No. 684
119TH CONGRESS
   2D SESSION       H. R. 7730
  [Report No. 119–783]
  H7730
  A BILL
  E:\BILLS\H7730.RH
To amend title 11, United States Code, to modify
  certain bankruptcy eligibility requirements, and
  for other purposes.
  Sfmt 6651
  AUGUST 27, 2026
Reported with an amendment, committed to the Com-
  mittee of the Whole House on the State of the Union,
  Fmt 6651
  and ordered to be printed
  Frm 00006
  PO 00000
  Jkt 069200
  21:28 Aug 27, 2026
  VerDate Sep 11 2014
  ssavage on LAPJG3WLY3PROD with BILLS