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119-hr-8393Committee
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Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026

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Summary

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This bill amends the federal bankruptcy code to add grounds for dismissing Chapter 11 corporate bankruptcy cases that are objectively futile or filed in subjective bad faith. It establishes presumptions and conclusive presumptions of bad faith based on factors including venue manipulation, corporate restructuring within four years, asset transfers to insiders, and lack of valid reorganizational purpose. The bill also creates a new exception to the automatic stay for actions against non-debtor entities related to certain mass-injury claims when the debtor underwent corporate restructuring in the preceding four years.

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Bill details

Congress
119
Bill type
hr
Introduced
April 20, 2026
Sponsor
Emilia SykesDOH
Cosponsors
2
Last action
April 20, 2026— Referred to the House Committee on the Judiciary.

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