08/20/2026
Subject: The Senate Just Did Something Unprecedented — Now the House Needs a Push
On August 3, 2026, the U.S. Senate passed S. 3977, the Bankruptcy Threshold Adjustment Act of 2026, by Unanimous Consent.
Stop. Read that again.
Can you name anything our Congress has passed by Unanimous Consent in the last 10 years? Take your time. I'll wait.
That's how important this bill is. The economy is both Red and Blue — there is no difference. The economy doesn't care if you like Elephants or Donkeys.
Right now, the companion House bill — H.R. 7730 — is pending. It cleared the House Judiciary Committee back in March and has been sitting there ever since. No floor vote scheduled.
Here's where you come in. Enter your zip code here — https://www.house.gov/representatives/find-your-representative — find your Congressman or Congresswoman, and ask them to pass H.R. 7730 by Unanimous Consent, just like the Senate did. Unprecedented!
Here's a short email you can copy and send:
Dear Representative — The Senate passed S. 3977, the Bankruptcy Threshold Adjustment Act, by Unanimous Consent on August 3. The companion bill, H.R. 7730, has been pending in the House since March. This bill restores bankruptcy debt limits so working families can protect their homes and small businesses can reorganize and stay open. The economy isn't Red or Blue. Please support H.R. 7730 and urge leadership to pass it by Unanimous Consent, as the Senate did. Thank you.
Now, in bold, why is this important: the current debt limits are too low, and many people cannot take advantage of bankruptcy debt relief to protect their assets.
This is really an update about Chapter 13 bankruptcy — the one where you actually REPAY your creditors. That's misunderstood by most people, who think Chapter 7 is the only type of bankruptcy available (that's the one for low-income filers, where debts are ERASED in about 90 days).
Chapter 13 is different. It's for people with income — people who often had an unexpected life event: CANCER. DIVORCE. DEATH. JOB LOSS. And a myriad of other life circumstances that were unplanned and unavoidable.
Chapter 13 allows you to STOP foreclosures and prevent your family from becoming homeless. STOP repossessions. STOP lawsuits. STOP levies. STOP garnishments. It STOPS everything and gives you a breathing spell to get back to work, recover from an illness, find a new job, rest and recover. The bankruptcy law literally calls it a "breathing spell."
And most importantly — you DO repay your creditors to keep your assets. Most people misunderstand this and confuse Chapter 13 with Chapter 7. To keep your assets — home, car, boat — you repay the delinquent payments, but you get 60 months — five full years — to do it, with plenty of breathing room.
Nobody wants cancer, divorce, death, or job loss. But they happen seven days a week, and Chapter 13 is the only way to STOP creditors, get a breathing spell, and give yourself time to get back on the horse and ride on.
Separately, H.R. 7730 raises the debt limit for small businesses to $7.5 million, allowing more and more businesses to file a Reorganization Plan and continue operating. Again — they are REPAYING their debt, on better terms, and keeping their doors open and their people employed. With a business, anything can happen: a bad harvest, a flood or a fire, a key customer that doesn't pay, a supplier that doubles its prices, an equipment breakdown, a road closure that kills foot traffic — and the creditors are still calling.
The economy is neutral when it comes to Elephants and Donkeys. Please call or email your Congressman or Congresswoman today: https://www.house.gov/representatives/find-your-representative
