Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Ranking Member Dick Durbin’s (D-Ill.) Bankruptcy Threshold Adjustment Act has become law. The bipartisan legislation supports American small businesses and families by reinstating modern debt limits for Subchapter V and Chapter 13 bankruptcy, restoring access to critical reorganization tools.
“The Bankruptcy Threshold Adjustment Act is now the law of the land, ensuring our nation’s bankruptcy code works for Americans, not against them,” Grassley said. “By restoring modern debt limits and eliminating barriers to reorganization, this bipartisan bill provides American small businesses and families the tools they need to regain their financial footing. I thank Senator Durbin for his partnership in getting our bill across the finish line, as well as my colleagues in the Senate and House of Representatives for their support.”
“Bankruptcy is often a painful last resort for small business owners. This bill restores a quicker and cheaper pathway for entrepreneurs to settle debts, keep the lights on, and keep serving their neighbors. It also expands eligibility for Chapter 13 bankruptcy to help more families manage rising costs, stay in their homes, and get back on their feet. Following unanimous passage in the Senate and House, I’m thrilled the President signed our bipartisan bill into law,” Durbin said.
The bipartisan legislation is cosponsored by Sens. John Cornyn (R-Texas), Sheldon Whitehouse (D-R.I.) and Chris Coons (D-Del.).
Bill text can be found HERE.
