# 119-hr-10724: To amend title 11, United States Code, to clarify the rules for the exceptions to the discharge of the debt of an individual debtor, and for other purposes.

119-hr-10724, To amend title 11, United States Code, to clarify the rules for the exceptions to the discharge of the debt of an individual debtor, and for other purposes., is a 119th Congress bill sponsored by Rep. Correa, J. Luis [D-CA-46] (D-CA); status introduced; PRIA reads it as touching household money (as of 2026-10-11).

- Canonical: https://policyrisk.com/legislation/119-hr-10724
- As of: 2026-10-11
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-10724
- Congress: 119
- Title: To amend title 11, United States Code, to clarify the rules for the exceptions to the discharge of the debt of an individual debtor, and for other purposes.
- Status: introduced
- Introduced: 2026-10-05
- Sponsor: Rep. Correa, J. Luis [D-CA-46] (D-CA)
- Cosponsors: 1
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-10-11

## Summary

**Tightens non-dischargeability for debtor fraud.** This bill would clarify that debts an individual owes because of false pretenses, false representations, or actual fraud are not dischargeable in bankruptcy, specify that the debtor's own use of assets or funds can trigger non-dischargeability, and add fraud or defalcation while acting as a fiduciary, embezzlement, and larceny to the list of nondischargeable acts. - Individual debtors: Makes it harder for someone to erase debts they obtained through false pretenses, false representations, or actual fraud. - Creditors and victims: Expands the types of wrongdoing courts will treat as nondischargeable, increasing the chances creditors or victims recover from bankruptcy estates. - Fiduciaries and insiders: Clarifies that fraud or defalcation in a fiduciary role, embezzlement, and larceny by the debtor are explicitly nondischargeable, and ties nondischargeability to the debtor's use of funds.

## Cosponsors (1)

- Rep. Lee, Laurel M. [R-FL-15] (R-FL), 2026-10-05T00:00:00.000Z

## Provisions PRIA read

- Tighter rules on discharging fraud debts: mixed, low. If enacted, this bill would clarify when debts from fraud or theft by an individual debtor would not be discharged in bankruptcy. It would say a debt is non-dischargeable when the debtor used false pretenses, made a false representation, or committed actual fraud, but the rule would not apply to st…

## Related bills

- 119-hr-7481: Department of Homeland Security Appropriations Act, 2026
- 119-hr-7973: Momnibus Act
- 119-hr-4669: FEMA Act of 2025
- 119-hr-4206: CONNECT for Health Act of 2025
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-1530: American Victims of Terrorism Compensation Act

## Sources
- [119-hr-10724 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/10724)

## Related
- [119-hr-7481: Department of Homeland Security Appropriations Act, 2026](https://policyrisk.com/legislation/119-hr-7481)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [119-hr-4206: CONNECT for Health Act of 2025](https://policyrisk.com/legislation/119-hr-4206)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-1530: American Victims of Terrorism Compensation Act](https://policyrisk.com/legislation/119-hr-1530)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-10724 (as of 2026-10-11).