AI-assisted analysis based on the official CRS summary. Source version: Aug 25, 2026. Analysis updated: Sep 18, 2026.
01 — The Text
What.
- Restores expired provisions that modified debt limits for two bankruptcy types: Subchapter V (small business reorganization) and Chapter 13 (wage earner's plan).
- Raises the Subchapter V debt limit from approximately $3.4 million to $7.5 million.
- Raises the Chapter 13 cumulative debt limit from approximately $2.1 million to $2.75 million.
- Consolidates Chapter 13 debt counting by applying both secured and unsecured debt toward a single cumulative limit, replacing separate limits for each type.
02 — The Stakes
So what?
- Small businesses and wage earners with debt within the new thresholds become eligible for reorganization options that were previously unavailable to them.
- The official summary does not specify additional effects, such as costs, implementation timelines, or distributional impacts on creditors or debtors.
03 — The Path
Now what?
- House passed the bill by voice vote on September 16, 2026, under suspension of the rules.
- Motion to reconsider was laid on the table on September 16, 2026.
- No subsequent action is documented in the provided record.
Legislative History
Actions.
- Sep 16, 2026 — Motion to reconsider laid on the table Agreed to without objection.
- Sep 16, 2026 — On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
- Sep 16, 2026 — Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
- Sep 16, 2026 — DEBATE - The House proceeded with forty minutes of debate on H.R. 7730.
- Sep 16, 2026 — Considered under suspension of the rules.
- Sep 16, 2026 — Mr. Cline moved to suspend the rules and pass the bill, as amended.
- Aug 27, 2026 — Placed on the Union Calendar, Calendar No. 684.
- Aug 27, 2026 — Reported (Amended) by the Committee on Judiciary. H. Rept. 119-783.