# 119-s-3977: Bankruptcy Threshold Adjustment Act of 2026

119-s-3977, Bankruptcy Threshold Adjustment Act of 2026, is a 119th Congress bill sponsored by Sen. Grassley, Chuck [R-IA] (R-IA); status passed_senate; PRIA reads it as touching household money (as of 2026-08-29).

- Canonical: https://policyrisk.com/legislation/119-s-3977
- As of: 2026-08-29
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-3977
- Congress: 119
- Title: Bankruptcy Threshold Adjustment Act of 2026
- Status: passed_senate
- Introduced: 2026-03-03
- Sponsor: Sen. Grassley, Chuck [R-IA] (R-IA)
- Cosponsors: 5
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-08-29

## Summary

**Raises eligibility debt thresholds** for small-business Chapter 11 and individual Chapter 13 filings and sets clear exclusions and a prospective effective date. This bill would change who can use these bankruptcy chapters by changing the dollar cutoffs and which debts count.

## Cosponsors (5)

- Sen. Durbin, Richard J. [D-IL] (D-IL), 2026-03-03T00:00:00.000Z
- Sen. Cornyn, John [R-TX] (R-TX), 2026-03-03T00:00:00.000Z
- Sen. Whitehouse, Sheldon [D-RI] (D-RI), 2026-03-03T00:00:00.000Z
- Sen. Graham, Lindsey [R-SC] (R-SC), 2026-03-03T00:00:00.000Z
- Sen. Coons, Christopher A. [D-DE] (D-DE), 2026-03-03T00:00:00.000Z

## Provisions PRIA read

- New debt cap for Chapter 13 filers: mixed, high. You would be able to use Chapter 13 only if you have regular income and, on the filing date, your noncontingent, liquidated debts total less than $2,750,000. Married couples would be able to file a joint Chapter 13 only if their combined noncontingent, liquidated debts are under $2,750,000. A spous…
- Debt cap for small-business Chapter 11: mixed, medium. To use the small-business Chapter 11 path, your total noncontingent, liquidated debts would need to be no more than $7,500,000 as of filing (or the order for relief). Debts owed to affiliates or insiders would not count toward the cap. At least 50% of the counted debts would need to come from your…

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-s-1748: Kids Online Safety Act
- 119-s-1241: Sanctioning Russia Act of 2025
- 119-sres-755: A resolution honoring the life of the Honorable Donald W. Riegle, Jr., former Senator for the State of Michigan.
- 119-sres-739: A resolution honoring the life and legacy of John Seymour, the late Senator for the State of California.
- 119-sres-723: A resolution honoring the life of Dirk Arthur Kempthorne, former United States Senator for the State of Idaho.

## Sources
- [119-s-3977 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/3977)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-1241: Sanctioning Russia Act of 2025](https://policyrisk.com/legislation/119-s-1241)
- [119-sres-755: A resolution honoring the life of the Honorable Donald W. Riegle, Jr., former S…](https://policyrisk.com/legislation/119-sres-755)
- [119-sres-739: A resolution honoring the life and legacy of John Seymour, the late Senator for…](https://policyrisk.com/legislation/119-sres-739)
- [119-sres-723: A resolution honoring the life of Dirk Arthur Kempthorne, former United States…](https://policyrisk.com/legislation/119-sres-723)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-3977 (as of 2026-08-29).