Senator Coons, Colleagues Celebrate Passage of Bankruptcy Relief Bill
The U.S. Senate has unanimously passed bipartisan legislation backed by Delaware Senator Chris Coons that would expand access to bankruptcy protections for families and small businesses. The Bankruptcy Threshold Adjustment Act of 2026 would permanently restore higher debt limits for Subchapter V and Chapter 13 bankruptcies, allowing more Americans to qualify for streamlined financial relief. Senator Coons says the bill would make it easier for families and small businesses struggling with rising costs to regain their financial footing. The measure now heads to the U.S. House of Representatives.
Additional Information from the Office of Senator Chris Coons:
“Americans going through one of the most difficult seasons of their lives shouldn’t then be faced with bureaucratic hurdles and outdated rules as they try to restore their financial well-being,” said Senator Coons. “This bipartisan bill will make the path through bankruptcy a little easier for families and small businesses struggling to stay afloat.”
“Our nation’s bankruptcy code should work for Americans, not against them. By eliminating barriers to reorganization and restoring modern debt limits, the bipartisan Bankruptcy Threshold Adjustment Act would provide American families and small businesses the tools they need to regain their financial footing in a quicker, more streamlined process,” said Senator Grassley. “I thank my colleagues in the Senate for their unanimous support of our legislation, and I urge the House of Representatives to swiftly pass this needed legislation.”
“Bankruptcy is often a painful last resort for small business owners. This bill makes permanent 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. With unanimous passage in the Senate, I encourage the House of Representatives to quickly pass this bill—and for the President to sign it into law,” said Senator Durbin.
In 2025, Delaware had 568 cases filed for Chapter 13 bankruptcy. The Bankruptcy Threshold Adjustment Act of 2026 offers more support to Delaware families and small businesses who are just trying to make ends meet and fighting rising costs. This legislation will permanently restore the Subchapter V debt limit to $7.5 million and the Chapter 13 debt limit to $2.75 million, so that more families have access to financial tools they need to regain financial security.
Read the full text of the bill here.