Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 8393 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 8393 To amend title 11, United States Code, to make the filing of a petition for relief under chapter 11 that is objectively futile or in subjective bad faith a cause for dismissal of the case, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES April 20, 2026 Mrs. Sykes (for herself, Mr. Gooden, and Mr. Nadler) introduced the following bill; which was referred to the Committee on the Judiciary _______________________________________________________________________ A BILL To amend title 11, United States Code, to make the filing of a petition for relief under chapter 11 that is objectively futile or in subjective bad faith a cause for dismissal of the case, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026''. SEC. 2. CONVERSION OR DISMISSAL UNDER CHAPTER 11. Section 1112(b) of title 11, United States Code, is amended-- (1) in paragraph (2)(A), by striking ``within a reasonable period of time'' and inserting ``not later than 24 months after the date of the filing of the petition''; (2) in paragraph (4)-- (A) subparagraph (O), by striking ``and'' at the end; (B) in subparagraph (P), by striking the period at the end and inserting ``; and''; and (C) by adding at the end the following: ``(Q) with respect to the dismissal of a case under this chapter, the filing of a petition for relief or the continuation of a case under this title that is-- ``(i) objectively futile; or ``(ii) in subjective bad faith.''; and (3) by adding at the end the following: ``(g)(1) For the purpose of subsection (b)(4)(Q), the court shall presume that a pe