Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026 amends bankruptcy law to allow dismissal of cases filed in bad faith.

The Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026 amends the United States Code to allow courts to dismiss bankruptcy cases filed in bad faith. Specifically, it allows dismissal if the case is objectively futile or filed in subjective bad faith. The bill also modifies the automatic stay provisions to prevent certain actions against nondebtor entities. It introduces a presumption that a case is filed in bad faith if the debtor manufactured the venue for the case, which can only be rebutted with clear and convincing evidence.

Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026 amends bankruptcy law to allow dismissal of cases filed in bad faith.

The Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026 amends the United States Code to allow courts to dismiss bankruptcy cases filed in bad faith. Specifically, it allows dismissal if the case is objectively futile or filed in subjective bad faith. The bill also modifies the automatic stay provisions to prevent certain actions against nondebtor entities. It introduces a presumption that a case is filed in bad faith if the debtor manufactured the venue for the case, which can only be rebutted with clear and convincing evidence.