This bill changes the federal bankruptcy code and some bankruptcy rules to limit use of bankruptcy in cases involving child sexual abuse. It defines "sexual abuse of a child" for bankruptcy purposes, requires early court conferences and allows victim impact statements in chapter 11 cases, and says those statements cannot be used as evidence. The bill requires courts to hire independent forensic accountants when nonprofit tax-exempt organizations face claims of child sexual abuse. It narrows secrecy orders and prevents sealing of evidence except to protect a victim's identity unless the accused is acquitted. The bill makes certain stays of actions inapplicable to child sexual abuse claims, raises voting thresholds and consent rules for third-party releases (especially for tax-exempt nonprofits), treats child sexual abuse claims as timely regardless of state statutes of limitation, bars discharge for debtors responsible for or grossly negligent in child sexual abuse, and prohibits using subchapter V for filings tied to child sexual abuse claims. It also amends bankruptcy rules to expand examinations and require debtor attendance in such chapter 11 cases.
No publicly available information on costs or budgetary effects is included in the bill text or metadata.
According to the bill text, the changes are meant to close loopholes that let persons or organizations tied to child sexual abuse use bankruptcy to limit accountability, increase victim engagement and transparency, protect victim identities, and ensure financial interests and nondebtor releases are properly reviewed, especially for tax-exempt nonprofits.
No publicly available information.