Lets more small businesses and individuals qualify for bankruptcy protection.
This bill would make it easier for more small businesses and individuals to file for bankruptcy. It would raise the maximum debt allowed to qualify for certain bankruptcy chapters, allowing individuals and businesses with higher debts to seek financial reorganization. These changes would take effect immediately if the bill becomes law.
Currently, there are debt limits for who can file for Chapter 13 consumer bankruptcy and small business bankruptcy. This bill would raise the debt limit for individuals filing Chapter 13 to less than $2,750,000 and for small businesses to not more than $7,500,000, making these options available to more people and businesses.
HR 7730 · 119th Congress · February 26, 2026 · AI Summary by gemini-2.5-flash · 9/10
Sign in to see your representatives' phone numbers