# 119-hr-7730: Bankruptcy Threshold Adjustment Act

119-hr-7730, Bankruptcy Threshold Adjustment Act, is a 119th Congress bill sponsored by Rep. Cline, Ben [R-VA-6] (R-VA); status passed_senate; PRIA reads it as touching household money (as of 2026-11-01).

- Canonical: https://policyrisk.com/legislation/119-hr-7730
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-7730
- Congress: 119
- Title: Bankruptcy Threshold Adjustment Act
- Status: passed_senate
- Introduced: 2026-02-26
- Sponsor: Rep. Cline, Ben [R-VA-6] (R-VA)
- Cosponsors: 6
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-11-01

## Summary

**Raises and clarifies bankruptcy debt limits** for small-business Chapter 11 cases and consumer Chapter 13 cases. It would set a $7.5 million cap for small-business Chapter 11 eligibility and a $2.75 million cap for Chapter 13 filers. - Individuals and families: Individuals with regular income could use Chapter 13 only if their noncontingent, liquidated debts total less than $2.75 million. Joint filers (an individual and spouse) are treated the same, with an exception for stockbrokers and commodity brokers. - Small businesses: A person engaged in commercial activity could qualify as a small-business debtor for Chapter 11 if total noncontingent, liquidated secured and unsecured debts are $7.5 million or less and at least 50 percent of those debts come from the debtor's commercial activities. The bill excludes single-asset real estate owners, corporations that report to the Securities and Exchange Commission, their affiliates, and affiliated groups whose combined debts exceed $7.5 million. - Applicability: The new debt definitions and caps would apply to any bankruptcy case commenced on or after the date of enactment.

## Cosponsors (6)

- Rep. Correa, J. Luis [D-CA-46] (D-CA), 2026-02-26T00:00:00.000Z
- Rep. Lee, Laurel M. [R-FL-15] (R-FL), 2026-02-26T00:00:00.000Z
- Rep. Neguse, Joe [D-CO-2] (D-CO), 2026-02-26T00:00:00.000Z
- Rep. Gooden, Lance [R-TX-5] (R-TX), 2026-03-24T00:00:00.000Z
- Rep. Lofgren, Zoe [D-CA-18] (D-CA), 2026-03-25T00:00:00.000Z
- Rep. Taylor, David J. [R-OH-2] (R-OH), 2026-06-08T00:00:00.000Z

## Provisions PRIA read

- New debt limit for household bankruptcy: mixed, medium. The bill would set a Chapter 13 debt limit below $2.75 million for individuals with regular income. Debts would be measured on the petition filing date. Only debts with known amounts that do not depend on a future event would count. An individual and spouse would qualify together if their combined…
- New bankruptcy debt limit for small businesses: mixed, medium. The bill would set a $7.5 million debt ceiling for the small-business Chapter 11 process. Applicants would need to conduct business, with at least 50% of their debt coming from business activities. Eligible applicants would include related businesses that are also bankruptcy debtors. Secured and un…

## Related bills

- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-3514: Improving Seniors’ Timely Access to Care Act of 2025
- 119-hr-2853: Combating Organized Retail Crime Act of 2025
- 119-hr-1628: 761st Tank Battalion Congressional Gold Medal Act
- 119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage Act
- 119-hr-1422: Enhanced Iran Sanctions Act of 2025

## Sources
- [119-hr-7730 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/7730)

## Related
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-3514: Improving Seniors’ Timely Access to Care Act of 2025](https://policyrisk.com/legislation/119-hr-3514)
- [119-hr-2853: Combating Organized Retail Crime Act of 2025](https://policyrisk.com/legislation/119-hr-2853)
- [119-hr-1628: 761st Tank Battalion Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-1628)
- [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842)
- [119-hr-1422: Enhanced Iran Sanctions Act of 2025](https://policyrisk.com/legislation/119-hr-1422)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-7730 (as of 2026-11-01).