FORT WORTH, TX, October 07, 2026 /24-7PressRelease/ — Small businesses with up to $7.5 million in debt could qualify for Subchapter V, a streamlined form of Chapter 11 reorganization, under a bill awaiting President Trump’s signature, according to The Dallas Morning News. Leinart Law Firm advises Fort Worth business owners whose debts exceed the current limit of about $3.4 million to review their options now. Owners can ask a bankruptcy lawyer whether a business qualifies today and how the pending change affects the timing of a filing.
What the Bill Changes
The bill would restore limits that expired in June 2024 and make them permanent.
• Subchapter V: The small business debt ceiling would rise from $3,424,000 to $7,500,000, giving more companies access to a faster, less costly business bankruptcy option.
• Chapter 13: Separate caps of $526,700 for unsecured debt and $1,580,125 for secured debt would become one $2,750,000 limit, which may help sole proprietors whose business debts are in their own names.
• Effective date: The new limits would apply only to cases filed on or after enactment.
“Subchapter V lets an owner keep running the business and propose a repayment plan without the expense of a full Chapter 11 case, but companies above the current limit cannot use it,” said Marcus Leinart, founder of Leinart Law Firm. “We review the full debt picture with an owner, including personal guarantees, before recommending a chapter or a filing date.”
Weighing Whether to Wait
For a business with debts between the two limits, waiting for the signature may make Subchapter V available, but delay has costs. Creditor lawsuits, bank garnishments, and scheduled withdrawals under merchant cash advance agreements can deplete the cash a reorganization depends on. Owners who would rather close the business may use a Chapter 7 case, in which a trustee liquidates company assets.
Subchapter V elections nationwide reached 302 in August, a 63 percent increase over August 2025, even under the lower limit, according to Epiq AACER data. The Northern District of Texas, which hears Fort Worth cases, ranks among the nation’s busiest bankruptcy courts.
About Leinart Law Firm:
Founded in 2005 by Marcus Leinart, Leinart Law Firm helps individuals, families, and small business owners across Texas resolve debt through Chapter 7, Chapter 13, and business bankruptcy cases, as well as foreclosure, repossession, and wage garnishment matters. Mr. Leinart is a graduate of Texas Tech University School of Law, has been licensed in Texas since 1995, and is a member of the National Association of Consumer Bankruptcy Attorneys. He has filed thousands of bankruptcy cases over his career. The firm has offices in Fort Worth and Dallas, and prospective clients can schedule a consultation online.
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