A New Bankruptcy Law Raises the Entry Limits. It Does Not Erase the Repayment Test.
Economy / Restructuring A New Bankruptcy Law Raises the Entry Limits. It Does Not Erase the Repayment Test. A law signed November 10 widens access to two bankruptcy paths, but higher debt ceilings do not guarantee a workable repayment plan. NewJinMedia · November 12, 2026 Law & economy analysis Archival context: Charleston’s U.S. Post Office and Courthouse, October 2019. Photo: Warren LeMay, CC0. Not a scene from this legislation or a specific bankruptcy case. Original photograph · CC0 . For a small business with a viable operation and an unmanageable balance sheet, the price of entering the right bankruptcy process can matter almost as much as the size of its debts. For a household with regular income, a different question arises: can a court-supervised repayment plan accommodate its obligations without forcing it into a more complex proceeding? A new federal law changes the entry rules for both groups. It does not answer the harder question of whether either can sustain the pay...