U.S. Congress legislation · 119th Congress
SB3977: Bankruptcy Threshold Adjustment Act of 2026
Status: Passed one chamber, August 3, 2026
A bill to amend title 11, United States Code, to modify certain bankruptcy eligibility requirements, and for other purposes.
What the bill says
An act To amend title 11, United States Code, to modify certain bankruptcy eligibility requirements, and for other purposes.
From the engrossed text, August 3, 2026:
AN ACT To amend title 11, United States Code, to modify certain bankruptcy eligibility requirements, and for other purposes. SECTION 1. Short title This Act may be cited as the Bankruptcy Threshold Adjustment Act of 2026 . SECTION 2. Debt limit modifications (a) Modification to the small business bankruptcy debt limit Section 1182(1) of title 11, United States Code, is amended to read as and (B) does not include-- (i) any member of a group of affiliated debtors under this title that has aggregate noncontingent liquidated secured and unsecured debts in an amount greater than $7,500,000 (excluding debt owed to 1 or more affiliates or insiders); (ii) any debtor that is a corporation subject to the reporting requirements under section 13 or 15(d) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m , 78o(d)); or (iii) any debtor that is an affiliate of a corporation described in clause (ii). . (b) Modification to the consumer bankruptcy debt limit Section 109 of title 11, United States Code is amended by striking subsection (e) and inserting the following: (e) Only an individual with regular income that owes, on the date of the filing of the petition, noncontingent, liquidated debts that aggregate less than $2,750,000 or an individual with regular income and such individual's spouse, except a stockbroker or a commodity …
Sponsors
- Grassley, Chuck (R, SD-IA) · primary sponsor
- Durbin, Richard (D)
- Cornyn, John (R)
- Whitehouse, Sheldon (D)
- Graham, Lindsey (R)
- Coons, Christopher (D)
Latest actions
- : Message on Senate action sent to the House.
- : Held at the desk.
- : Received in the House.
- : Passed Senate without amendment by Unanimous Consent. (consideration: CR S4412; text: CR S4412)
- : Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
- : Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 347.
- : Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
- : Introduced in Senate
Subjects: Small business, Bankruptcy, Debt collection, Finance and Financial Sector
Common questions
- What is SB3977?
- SB3977 is a bill in Congress (119th Congress): Bankruptcy Threshold Adjustment Act of 2026.
- What does SB3977 do?
- In its own words: An act To amend title 11, United States Code, to modify certain bankruptcy eligibility requirements, and for other purposes.
- What is the status of SB3977?
- Passed one chamber as of August 3, 2026. Latest action: Message on Senate action sent to the House. (August 10, 2026).
- Who sponsored SB3977?
- Grassley, Chuck (R, SD-IA), with 5 co-sponsors.
- Where is the official record for SB3977?
- On the Congress website: https://www.congress.gov/bill/119th-congress/senate-bill/3977
Source: official Congress record. Tracked by Delilah, AI for legislation across all 50 states and Congress.