The Bankruptcy Threshold Adjustment Act, signed November 10, 2026, also replaces Chapter 13’s two debt caps with a single $2.75 million limit.
ORLANDO, FLORIDA, FL, UNITED STATES, November 10, 2026 /EINPresswire.com/ — The Subchapter V debt limit rose to $7.5 million today when the President signed the Bankruptcy Threshold Adjustment Act (H.R. 7730) into law, according to a White House statement. The previous limit was $3,424,000. Juan Burgos Law, an Orlando bankruptcy firm, has updated its English, Spanish and Portuguese guides and is publishing a plain-language summary for Central Florida business owners and families.
Subchapter V is the streamlined form of Chapter 11 reorganization created for small businesses. Under the new law, a business or business owner can qualify with up to $7.5 million in noncontingent, liquidated debt, meaning debt that is certain and fixed in amount. Debts owed to affiliates or insiders do not count toward the limit, and at least half of the debt must come from business activities. Companies that file reports with the Securities and Exchange Commission and single-asset real estate businesses remain ineligible.
The law also changes Chapter 13, the repayment-plan chapter for individuals with regular income. Chapter 13 previously had two separate caps, $526,700 in unsecured debt and $1,580,125 in secured debt. Those are replaced by one combined limit: total debt must be less than $2.75 million.
The new limits apply only to cases filed on or after November 10, 2026. Cases filed before that date continue to be measured against the earlier limits.
“Many Central Florida owners with four or five million dollars in debt were told Subchapter V was closed to them,” said Juan C. Burgos, founder of Juan Burgos Law. “As of today that door is open again. Whether it is the right path still depends on the business, the personal guarantees behind its loans, and the rest of the eligibility rules. A short review of the numbers will show where a business stands.”
The change matters locally. The Middle District of Florida, which includes Orlando, received 324 Subchapter V cases in the 12 months ending June 30, 2026, the most of any bankruptcy district in the country, according to the court’s August 2026 newsletter.
In a Subchapter V case, the owner generally keeps control of the business while proposing a repayment plan, and only the debtor may file a plan. A trustee is appointed in every case to help the parties reach a plan. The process is described on the firm’s Subchapter V small business bankruptcy page, and a Spanish-language version is available for Hispanic business owners.
Juan Burgos Law represents individuals and businesses in Chapter 7, Chapter 11, Chapter 13 and Subchapter V cases before the U.S. Bankruptcy Court for the Middle District of Florida, and offers free consultations. Consultations can be scheduled online or by calling (407) 505-4190.
Sources: The White House, “Congressional Bills H.R. 997, H.R. 1703, H.R. 1945, and H.R. 7730 Signed into Law,” November 10, 2026; H.R. 7730, Bankruptcy Threshold Adjustment Act, enrolled bill text, Congress.gov; U.S. Bankruptcy Court, Middle District of Florida, “Case Filings Are Indeed Up,” Court Connection newsletter, August 2026.
About Juan Burgos Law
Juan Burgos Law is a bankruptcy and personal injury law firm based in Orlando, Florida, led by attorney Juan C. Burgos (Florida Bar No. 84056). The firm represents individuals and commercial enterprises throughout Central Florida in Chapter 7, Chapter 11, Chapter 13, and Subchapter V bankruptcy proceedings before the U.S. Bankruptcy Court for the Middle District of Florida, providing direct counsel in English, Spanish, and Portuguese.
Media Contact:
Juan Burgos Law
1339 Arlington St, Orlando, FL 32805
(407) 505-4190
info@juanburgoslaw.com
Disclaimer: This press release is for informational purposes only and does not constitute legal advice. Hiring an attorney is an important decision that should not be based solely on advertising. Past results do not guarantee future outcomes. Juan Burgos Law is a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
Juan C Burgos
Juan Burgos Law
+1 321-689-2052
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