Bills · HR 8393
IN COMMITTEE· 119TH CONGRESS
House BillHR 8393Finance and Financial Sector
Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026
This bill stops companies from using bankruptcy maneuvers to protect their assets and freeze lawsuits when they actually have the money to pay victims.AI-written
INTRO APR 20· LAST ACTION APR 20
READING
7MIN
COSPONSORS
3BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
tl;dr
AI-writtenPrevents wealthy corporations from using the 'Texas Two-Step' and other bankruptcy loopholes to block mass lawsuits from consumers injured by their products.
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenCurrently, multi-billion-dollar companies can use the bankruptcy system—originally designed to help people and businesses that actually run out of money—to force victims into smaller settlements and skip jury trials. If this bill becomes law, companies with enough money to pay their debts could no longer hide behind bankruptcy protections. It ensures that victims of product defects or environmental contamination can continue their lawsuits against the parent companies that actually hold the assets.
KEY PROVISIONS
4AI-extractedPROVISION 01
Allows judges to dismiss bankruptcy cases that are 'objectively futile' or filed in 'bad faith.'
It gives judges the direct power to throw out cases where a company is clearly just using the court to stall or avoid paying creditors they could otherwise afford.
PROVISION 02
Creates a legal presumption of 'bad faith' if a company changes its corporate structure (like a divisional merger) within four years of filing for bankruptcy.
This specifically bans the 'Texas Two-Step' maneuver by treating recent corporate splits as a red flag for legal maneuvering.
PROVISION 03
Bars bankruptcy courts from stopping lawsuits against non-bankrupt parent companies in mass-tort cases.
This prevents 'automatic stays' from protecting wealthy affiliates that haven't actually filed for bankruptcy themselves.
PROVISION 04
Presumes bad faith if a company 'manufactures' its venue by choosing a specific court for tactical reasons.
This stops 'forum shopping,' where companies pick specific judges or regions known for being friendly to corporate interests.
SPONSORSHIP
1 + 3
D· Ohio
YRS IN OFFICE
3
BILLS LED
39
COSPONSOR BREAKDOWNBIPARTISAN · 66%
DEM 2 REP 1 IND 0
ACTION TIMELINE
2 EVENTSAPR 20
Introduced in House
APR 20
Referred to the House Committee on the Judiciary.
BILL INFO
TypeHouse Bill
NumberHR 8393
Congress119th
StatusIn Committee
IntroducedApr 20, 2026
Last actionApr 20, 2026
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IN COMMITTEE· 119TH CONGRESS · JUDICIARY COMMITTEE · INTRODUCED APR 20, 2026
House BillHR 8393Finance and Financial Sector
Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026
This bill stops companies from using bankruptcy maneuvers to protect their assets and freeze lawsuits when they actually have the money to pay victims.AI-written
INTRODUCED APR 20, 2026· LAST ACTION APR 20, 2026
PASSAGE CHANCES
—%
READING
7 min
COSPONSORS
3
COMPLEXITY
Moderate
