More small businesses could soon qualify for Subchapter V again.
The Bankruptcy Threshold Adjustment Act of 2026 would permanently restore the Subchapter V debt limit to $7.5 million and raise the Chapter 13 aggregate debt limit to $2.75 million.
The Senate already passed it unanimously, and the House version was reported out on August 27.
This could materially change which debtors qualify for the faster, less expensive Subchapter V process — and how cases are screened from the start.
See where the bill stands:
-The Bankruptcy Brief