Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026
Read twice and referred to the Committee on the Judiciary.
Summary
The Consumer Protection and Corporate Accountability in Bankruptcy Act would amend the bankruptcy code so that a Chapter 11 filing deemed objectively futile or filed in subjective bad faith can be dismissed. It creates presumptions of bad faith when a debtor manipulates the case to gain a tactical advantage, delay creditors, limit liability, or after recent corporate restructurings or asset transfers. The bill also expands the automatic stay to shield claims against non‑debtor entities linked to the debtor and limits certain stays and injunctions.
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