Bankruptcy Threshold Adjustment Act of 2026

Hozzl · 2026-08-28T08:05:48Z

Explore the details of Senate Bill 3977 Bankruptcy Threshold Adjustment Act of 2026 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Finance and Financial Sector. Stay informed on legislative developments.

8/28/2026, 8:05 AM

Summary of Bill S 3977

The bill titled "A bill to amend title 11, United States Code, to modify certain bankruptcy eligibility requirements, and for other purposes" was introduced in the 119th session of Congress on March 3, 2026, as Senate Bill 3977 (S. 3977). The purpose of this bill is to make changes to specific bankruptcy eligibility requirements under title 11 of the United States Code. Further details on key provisions, specific directives, or proposed actions are not provided in the context object.

Congressional Summary of S 3977

Bankruptcy Threshold Adjustment Act of 2026

This bill restores changes that expired in 2024 applicable to debt limits for Subchapter V (small business reorganization) and Chapter 13 (the wage earner's plan) bankruptcies.

Specifically, the bill increases the debt limit under Subchapter V from approximately $3.4 million to $7.5 million and increases the cumulative debt limit under Chapter 13 from approximately $2.1 million to $2.75 million.

The bill also applies both secured and unsecured debt towards the Chapter 13 limit. (Currently, separate limits apply to secured and unsecured debt under Chapter 13 bankruptcy.)

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Current Status of Bill S 3977

Bill S 3977 is currently in the status of Passed in Senate since August 3, 2026. Bill S 3977 was introduced during Congress 119 and was introduced to the Senate on March 3, 2026. Bill S 3977's most recent activity was Held at the desk. as of August 10, 2026