Senator Coons, colleagues celebrate unanimous passage to extend bankruptcy financial tools to small businesses and American families

WASHINGTON – U.S. Senators Chris Coons (D-Del.), Chuck Grassley (R-Iowa) and Dick Durbin (D-Ill.) celebrated the unanimous passage by the U.S. Senate of their Bankruptcy Threshold Adjustment Act of 2026, which would restore Americans’ access to critical bankruptcy programs by reinstating modern debt limits for Subchapter V and Chapter 13. The legislation is also cosponsored by U.S. Senators John Cornyn (R-Texas), Sheldon Whitehouse (D-R.I.) and the late Senator Lindsey Graham (R-S.C.). “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going through one of the most difficult seasons of their lives shouldn’t then be faced with bureaucratic hurdles and outdated rules as they try to restore their financial well-being,” said Senator Coons .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. Senator Coons has worked hard to make bankruptcy law more fairer throughout his time in the Senate. In 2019, Senator Coons voted to enact the Small Business Reorganization Act into law, which streamlined the Chapter 11 bankruptcy process for small business owners by reducing procedural burdens and lowering filing costs. In 2022, Senator Coons supported the Bankruptcy Threshold Adjustment Extension Act, extending the $7.5 million debt limit for small businesses filing under Subchapter V and establishing a new debt limit of $2.75 million for individuals and families filing under Chapter 13. When that bill expired in 2024, the debt thresholds for both programs reverted to lower levels. Read the full text of the bill here .