Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026
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Summary
This bill amends the federal bankruptcy code to add grounds for dismissing Chapter 11 corporate bankruptcy cases filed in bad faith or that are objectively futile. It creates presumptions that cases are filed in bad faith if the debtor manufactured venue, gained tactical litigation advantage, imposed undue delay on creditors, or lacked a valid reorganizational purpose. The bill also carves out an exception to the automatic bankruptcy stay for actions against non-debtor entities related to "protected claims" (including mass tort and environmental claims) when the debtor underwent corporate restructuring in the prior four years.
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