Latest action: Passed Senate without amendment by Unanimous Consent. (consideration: CR S5123)
Originating chamber has voted to pass. Sent to the other chamber.
The House voted to pass the bill. It now moves to the Senate, which repeats the committee referral and floor-vote process.
Next: Passed Both Chambers
Conference committee (if versions differ), then the President
Bill adjusts the income threshold for filing personal bankruptcy.
The problem
Current bankruptcy thresholds may not reflect inflation and changes in household income levels, potentially making it harder for financially struggling families to access bankruptcy protection.
The proposal
The bill raises the income limits that determine whether individuals can file for Chapter 7 bankruptcy, adjusting thresholds to account for inflation and economic changes.
The impact
Individuals with moderate to higher incomes who struggle financially may gain easier access to bankruptcy protection. Creditors and lending institutions face potential changes in debt recovery rates.
Families experiencing job loss, medical bills, or other hardships may qualify for bankruptcy protection more easily. This prevents debt from spiraling and gives people a fresh financial start.
Thresholds haven't kept pace with rising living costs and income changes since they were last set. Updating them reflects current economic reality rather than outdated figures.
Higher thresholds mean fewer people get stuck in means testing or complex bankruptcy procedures. This simplifies the process for those legitimately needing help.
More people qualifying for bankruptcy means more debts get canceled instead of repaid. Creditors lose money they were counting on collecting.
Easier bankruptcy access might encourage people to borrow irresponsibly, knowing they can escape debt more easily. This could increase risky borrowing behavior.
Lenders facing higher bankruptcy rates might raise interest rates and fees on all borrowers to offset losses. This makes credit more expensive for everyone.
Small businesses and creditors have less resources to absorb unpaid debts compared to large banks. They bear a disproportionate burden from increased bankruptcies.
Generated by AI from the bill text. Not a prediction and not legal or policy advice. The percentage is the model's own rating of each item — self-reported, and not a measure of how accurate it is.
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Individual contributions, grouped by employer · FEC
Where their individual donors work · 2026 cycle
Money from people who work there, not from the company. Not tied to this bill.
Itemized individual contributions via FEC, grouped by the employer each contributor self-reported. Companies and unions cannot contribute to federal candidates from their treasuries, so these totals are money from people who work at an employer — never from the organization itself. They are campaign contributions covering a full election cycle and are not connected to this bill.
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