Enrolled Bill

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7730 Enrolled Bill (ENR)]

        H.R.7730

                     One Hundred Nineteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Saturday,
          the third day of January, two thousand and twenty-six


                                 An Act


 
  To amend title 11, United States Code, to modify certain bankruptcy 
            eligibility requirements, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Bankruptcy Threshold Adjustment 
Act''.
SEC. 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 
follows:
        ``(1) Debtor.--The term `debtor'--
            ``(A) subject to subparagraph (B), means a person engaged 
        in commercial or business activities (including any affiliate 
        of such person that is also a debtor under this title and 
        excluding a person whose primary activity is the business of 
        owning single asset real estate) that has aggregate 
        noncontingent liquidated secured and unsecured debts as of the 
        date of the filing of the petition or the date of the order for 
        relief in an amount not more than $7,500,000 (excluding debts 
        owed to 1 or more affiliates or insiders) not less than 50 
        percent of which arose from the commercial or business 
        activities of the debtor; 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 broker, 
that owe, on the date of the filing of the petition, noncontingent, 
liquidated debts that aggregate less than $2,750,000 may be a debtor 
under chapter 13 of this title.''.
SEC. 3. EFFECTIVE DATE.
    The amendments made by this Act shall apply to any case that is 
commenced under title 11, United States Code, on or after the date of 
enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.