# 119-s-4346: Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026

119-s-4346, Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026, is a 119th Congress bill sponsored by Sen. Whitehouse, Sheldon [D-RI] (D-RI); status introduced; PRIA reads it as touching household money (as of 2026-08-11).

- Canonical: https://policyrisk.com/legislation/119-s-4346
- As of: 2026-08-11
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-4346
- Congress: 119
- Title: Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026
- Status: introduced
- Introduced: 2026-04-20
- Sponsor: Sen. Whitehouse, Sheldon [D-RI] (D-RI)
- Cosponsors: 2
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-08-11

## Summary

**This bill would prevent abusive Chapter 11 filings** by adding hard deadlines, stricter bad‑faith rules, and stronger protections for nondebtor parties. - Debtors and companies: Would impose a 24‑month hard deadline for certain restructuring actions and give courts new grounds to dismiss or convert cases that are objectively futile or filed in subjective bad faith. - Creditors and nondebtor parties: Would create a four‑year pre‑petition lookback that shields nondebtors from suits tied to divisional mergers, spinoffs, or similar restructurings and defines "protected claims" to include harms affecting not fewer than 100 individuals. - Courts and procedure: Would set legal presumptions and shift burdens, including a rebuttable presumption for manufactured venue, a clear‑and‑convincing standard to overcome certain findings, and a rule that places the burden of proof on the debtor for bad‑faith determinations.

## Cosponsors (2)

- Sen. Hawley, Josh [R-MO] (R-MO), 2026-04-20T00:00:00.000Z
- Sen. Durbin, Richard J. [D-IL] (D-IL), 2026-04-20T00:00:00.000Z

## Provisions PRIA read

- Confirmed bankruptcy plans preserved: benefit, low. This bill would apply to bankruptcy cases filed or pending on or after enactment. It would not change the validity of any final judgment or order confirming a bankruptcy plan entered before enactment. Parties who relied on confirmed Chapter 11 plans would keep those final orders in place.
- Broader stay for nondebtor defendants: mixed, medium. This bill would create a new automatic stay that can block lawsuits and other actions against some nondebtor companies. The protection would apply when, in the four years before the bankruptcy filing, the debtor was formed or changed through a divisional merger, spinoff, or similar restructuring. T…
- Tougher rules for bad-faith bankruptcies: mixed, medium. This bill would give courts clearer tools to dismiss or convert Chapter 11 cases that are objectively futile or filed in bad faith. It would create a conclusive presumption of bad faith if filings aimed to gain a tactical advantage, cause undue delay, or cap liability to two or more creditors holdi…

## Related bills

- 119-s-4949: Water Resources Development Act of 2026
- 119-s-5071: Children's Safe Welcome Act of 2026
- 119-s-1748: Kids Online Safety Act
- 119-s-1381: Protecting Employees and Retirees in Business Bankruptcies Act of 2025
- 119-s-3990: PrEP Access and Coverage Act of 2026
- 119-s-237: Honoring Our Fallen Heroes Act of 2025

## Sources
- [119-s-4346 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/4346)

## Related
- [119-s-4949: Water Resources Development Act of 2026](https://policyrisk.com/legislation/119-s-4949)
- [119-s-5071: Children's Safe Welcome Act of 2026](https://policyrisk.com/legislation/119-s-5071)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-1381: Protecting Employees and Retirees in Business Bankruptcies Act of 2025](https://policyrisk.com/legislation/119-s-1381)
- [119-s-3990: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-s-3990)
- [119-s-237: Honoring Our Fallen Heroes Act of 2025](https://policyrisk.com/legislation/119-s-237)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-4346 (as of 2026-08-11).