01 — The Text
What.
- Increases small business reorganization bankruptcy debt limit from $3.4M to $7.5M.
- Raises wage earner bankruptcy debt limit from $2.1M to $2.75M.
- Combines secured and unsecured debt toward one Chapter 13 limit instead of tracking separately.
02 — The Stakes
So what?
- Small business owners can now restructure larger debts without liquidating—affects firms with $3.4M-$7.5M debt.
- Self-employed workers and wage earners with higher debts gain more reorganization options instead of forced liquidation.
- These higher thresholds had expired in 2024; bill restores temporary protections that lapsed.
03 — The Path
Now what?
- Senate passed it unanimously Aug. 3; House received it Aug. 10 and currently holds it at the desk—awaiting House floor action.
- No amendments passed; bill moves forward as written.
- Contact your House representative to track their position on small business bankruptcy relief.
Legislative History
Actions.
- Aug 10, 2026 — Held at the desk.
- Aug 10, 2026 — Received in the House.
- Aug 10, 2026 — Message on Senate action sent to the House.
- Aug 3, 2026 — Passed Senate without amendment by Unanimous Consent. (consideration: CR S4412; text: CR S4412)
- Aug 3, 2026 — Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
- Mar 4, 2026 — Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.
- Mar 3, 2026 — Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
- Mar 3, 2026 — Introduced in Senate