introduced the bipartisan Bankruptcy Threshold Adjustment Act of 2026. The legislation would permanently raise the small business reorganization threshold for Chapter 11 to $7.5 million, allowing more small businesses to access a faster, more cost-effective bankruptcy process while negotiating...
Permanently raise the small business reorganization threshold for Chapter 11 to $7.5 million.
Occurrences
Evidence
Section 2(d) of Pub. L. 117-151 raised the Subchapter V debtor cap in 11 U.S.C. 1182(1)(A) to $7,500,000. But section 2(i)(1) makes that change temporary: two years after enactment, section 1182(1) reverts to the prior small-business-debtor definition.
Assessments
Congress did enact Pub. L. 117-151 during Ben Cline's time in office, and section 2(d) raised the Chapter 11 Subchapter V debt threshold to $7.5 million. But section 2(i)(1) made that increase temporary by restoring the prior definition two years after June 21, 2022. Current 11 U.S.C. 1182 again defines the debtor by the older small-business-debtor standard, so the promised permanent $7.5 million threshold was not achieved. Because there was a real same-term legislative step toward the goal, this is best scored as a failed delivery with effort rather than a full or partial fulfillment.