This bill would amend federal bankruptcy law to give courts stronger tools to dismiss Chapter 11 bankruptcy cases filed by corporations or other entities. The legislation allows judges to dismiss cases that are objectively futile or filed in bad faith, with specific presumptions that a case is in bad faith if the company manufactured its venue, gained tactical litigation advantages, or attempted to cap liability for claims affecting 100 or more people. The bill also protects certain lawsuits against parent companies and non-debtor entities from being automatically halted during bankruptcy, particularly in cases involving mass injury claims related to products or substances the debtor sold or used. Additionally, the law shortens the timeline for completing reorganization plans from a reasonable period to no more than 24 months. The changes would apply immediately to all bankruptcy cases filed or pending after the law's enactment, though they would not affect bankruptcy plans already confirmed before the law takes effect. No specific funding is authorized, as the bill primarily creates new legal standards for federal bankruptcy courts to apply.
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