Subchapter V Debt Limit May Permanently Increase to $7.5 Million
On August 3, 2026, the U.S. Senate unanimously passed S. 3977, the Bankruptcy Threshold Adjustment Act of 2026. The bill would permanently restore the Subchapter V debt limit to $7.5 million for qualifying small businesses and individuals seeking to reorganize under Chapter 11.
If S. 3977 becomes law, the $7.5 million Subchapter V debt limit would become permanent. A companion bill, H.R. 7730, is already moving through the House of Representatives.
The full story can be found below at JD Supra
https://www.jdsupra.com/legalnews/senate-passes-bill-to-permanently-raise-2736770/
For a prior post we wrote about Subchapter V bankruptcy see SBA EIDL Loans and Subchapter V Bankruptcy
https://shenwick.blogspot.com/2026/07/sba-eidl-loans-and-subchapter-v.html
Clients and advisors with questions about Subchapter V bankruptcy should contact Jim Shenwick, Esq. at jshenwick@gmail.com or 917-363-3391.
