HR 8393·Federal·house
Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026
In CommitteeFiled Apr 20, 2026
Sponsor: Rep. Sykes, Emilia Strong [D-OH-13] (D)
Latest Action
Referred to the House Committee on the Judiciary.
Apr 20, 2026
Summary
It changes the Bankruptcy Code so a Chapter 11 filing that is objectively futile or filed in subjective bad faith can be dismissed. The legislation creates statutory presumptions of bad faith when a debtor manipulates venue, seeks a tactical advantage, delays creditors, or caps liability, and puts the burden of proof on the debtor. It also expands the automatic stay to protect certain “protected claims” against non‑debtor parties and limits courts from overriding those protections.
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