This bill raises debt limits for those filing for streamlined bankruptcy, expanding eligibility for small businesses and individuals. For small businesses, the maximum eligible debt increases from $3.4 million to $7.5 million, allowing more companies—excluding large affiliated groups and publicly traded firms—to use a simplified bankruptcy reorganization process if most debt is business-related. For individuals and couples, it replaces separate current caps ($1,580,125 secured and $526,700 unsecured) with a single $2.75 million limit, simplifying who can file. These changes apply to new bankruptcy filings after enactment, broadening access to reorganization and repayment plans for more struggling businesses and households.
