What does Preamble of Closing Bankruptcy Loopholes for Child Predators Act of 2026 do?

This bill proposes to amend title 11 of the United States Code. The stated purpose of the bill is to address the misuse of bankruptcy proceedings in cases of child sex abuse. The bill is referred to the Committee on the Judiciary.

What does SHORT TITLE. of Closing Bankruptcy Loopholes for Child Predators Act of 2026 do?

This bill is formally titled the Closing Bankruptcy Loopholes for Child Predators Act of 2026.

What does AMENDMENTS. of Closing Bankruptcy Loopholes for Child Predators Act of 2026 do?

This section amends Title 11 of the United States Code (the Bankruptcy Code) to address claims related to sexual abuse of a child. It defines 'sexual abuse of a child' as an act constituting a violation of specific sections of Title 18 (crimes and criminal procedure) or similar state laws. The court must hold a conference within 60 days of the claim filing deadline in cases involving alleged sexual abuse of a child to consider victim impact statements. Victim impact statements are intended to increase engagement and understanding between the court and victims, and are not to be used as evidence. In cases involving 501(c)(3) organizations with claims of sexual abuse, the court must engage an independent forensic accountant to review assets. The automatic stay may not apply to debts arising from allegations of sexual abuse of a child, except to protect the identity of the individual alleging abuse. Evidence of alleged crimes relating to sexual abuse of a child generally cannot be sealed unless it's to protect the identity of the alleged victim. Third-party releases in sexual abuse cases require affirmative consent from both the debtor and at least 90% of creditors. Claims relating to sexual abuse of a child are deemed timely filed regardless of state statutes of limitations. Debtors responsible for or grossly negligent in the sexual abuse of a minor are ineligible for a discharge. Subchapter 5 filings are prohibited for claims arising from or related to child sexual abuse.

What does AMENDMENTS TO THE FEDERAL RULES OF BANKRUPTCY PROCEDURE. of Closing Bankruptcy Loopholes for Child Predators Act of 2026 do?

This section amends the Federal Rules of Bankruptcy Procedure. Rule 2004 is amended to expand the scope of examinations in reorganization cases related to alleged sexual abuse of a child. The expanded examination under Rule 2004 includes abuse allegations, remedial policies, financial information, and other relevant matters. Rule 2004 is also amended to require debtor attendance and document production in such cases. Rule 9018 is amended to restrict the sealing of evidence related to alleged crimes of sexual abuse of a child.

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Closing Bankruptcy Loopholes for Child Predators Act of 2026

Last updated: 4/29/2026 · Introduced: 4/29/2026

Author: Deborah Ross (D-NC)

TL;DR (AI)

This bill amends the Bankruptcy Code to prevent individuals accused of child sexual abuse from using bankruptcy to shield assets or delay accountability.
It establishes procedures for victim impact statements in bankruptcy cases involving child sexual abuse and mandates independent financial reviews for organizations facing such claims.
The bill prohibits certain bankruptcy filings related to child sexual abuse, expands the scope of examinations in reorganization cases, and restricts the sealing of evidence related to these allegations.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

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