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

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7730 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7730 To amend title 11, United States Code, to modify certain bankruptcy eligibility requirements, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 26, 2026 Mr. Cline (for himself, Mr. Correa, Ms. Lee of Florida, and Mr. Neguse) introduced the following bill; which was referred to the Committee on the Judiciary _______________________________________________________________________ A BILL 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 of 2026''. 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 $7,5