What This Bill Does · Plain English
Summary · Congress.gov
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.)
Action Timeline
2026-08-10
Held at the desk.
2026-08-10
Received in the House.
2026-08-10
Message on Senate action sent to the House.
2026-08-03
Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
2026-08-03
Passed Senate without amendment by Unanimous Consent. (consideration: CR S4412; text: CR S4412)
2026-03-04
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.
2026-03-03
Introduced in Senate
2026-03-03
Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
Frequently Asked Questions
Did S.3977 pass?
S.3977 is still alive. Current stage: PASSED_ONE. Pass likelihood: pending.
What does S.3977 do?
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 Cha…
Who sponsored S.3977?
S.3977 was sponsored by Chuck Grassley (R-Iowa).
Full Bill Text
Full text not yet indexed for this bill. Check Congress.gov for the official text.
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