Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026

This bill changes federal chapter 11 bankruptcy law. It would let courts dismiss a chapter 11 case that is objectively futile or filed or continued in subjective bad faith. Courts would presume bad faith if the debtor manufactured the court location for the case, and would treat bad faith as conclusive in certain situations, such as when the debtor went through a divisional merger in the 4 years before filing. The bill would also keep the automatic pause on lawsuits from covering claims against companies or people who are not in bankruptcy over injuries or harm affecting at least 100 people, when the debtor had a corporate restructuring in the prior 4 years. The changes would apply to cases filed or pending on or after the date the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Sheldon Whitehouse Democrat sponsor
• 2 cosponsors