Bankruptcy Threshold Adjustment Act of 2026

# Bankruptcy Threshold Adjustment Act of 2026 - Summary **What the Bill Would Do** This bill, introduced in the Senate, would adjust the income thresholds used in U.S. bankruptcy law. These thresholds determine whether individuals can file for Chapter 7 bankruptcy (which typically eliminates most debts) or must instead use Chapter 13 bankruptcy (which requires a repayment plan). By raising these thresholds, the bill would likely allow more people to qualify for Chapter 7 bankruptcy protection. **Who It Affects and Key Details** The bill primarily affects individuals considering bankruptcy and creditors. Currently, bankruptcy thresholds are adjusted periodically to account for inflation.

This bill appears designed to make those adjustments, though the specific new threshold amounts are not detailed in the available information. Higher-income individuals would benefit most, as they could more easily qualify for Chapter 7. This could impact credit card companies, banks, and other creditors. **Current Status** The bill was introduced in the Senate but has not yet advanced further in the legislative process. As of now, it remains in early stages with no additional action taken.