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HR8589119th CongressWALLET

Closing Bankruptcy Loopholes for Child Predators Act of 2026

Sponsored By: Representative Ross, Deborah K. [D-NC-2]

Introduced

Summary

Creates a bankruptcy-specific definition of sexual abuse of a child and ties that definition into bankruptcy procedures to address misuse of bankruptcy by people who committed or were responsible for child sexual abuse. The bill would add a new paragraph, Section 101(51B), that defines the term by referencing specified federal crimes and similar state laws.

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  • Survivors and victims: The new statutory definition names the harms covered when the aggrieved person was a minor. That gives bankruptcy cases a clear, uniform standard for claims rooted in the listed offenses.
  • People accused or convicted of abuse: The bill links those listed criminal statutes to how bankruptcy proceedings treat related claims. Those statutes include, for example, 18 U.S.C. 1589, 1590, 1591, 2241(c), 2251, 2252, 2422, 2423, 2258, and others.
  • Bankruptcy courts and trustees: Courts and trustees would use the new Section 101(51B) when handling cases involving child sexual abuse to apply bankruptcy-specific consequences and procedures consistently.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Stronger bankruptcy rights for survivors

If enacted, the bill would bar bankruptcy discharges for debts from child sexual abuse when the debtor committed the abuse or was grossly negligent. It would add a clear definition of "sexual abuse of a child" tied to listed federal crimes. It would let abuse claims proceed even if a bankruptcy petition is filed, and it would treat such claims as timely regardless of state time limits. Courts could not seal evidence except to protect a victim's identity. In chapter 11, victims who are creditors could give written, oral, video, or audio impact statements and the court must hold a conference within 60 days after the proof-of-claim deadline.

Stricter bankruptcy rules for organizations

If enacted, the bill would bar small businesses from using Subchapter V to resolve claims arising from child sexual abuse. It would make third-party releases harder by requiring debtor consent and at least 90% of voting creditors in many cases and stronger disclosure from third parties. In chapter 11 cases about child abuse, courts could expand Rule 2004 exams and require the debtor to attend and produce documents. If the debtor is a 501(c)(3) nonprofit, the court would hire an independent forensic accountant to review assets and any nondebtor proposed for release.

Sponsors & CoSponsors

Sponsor

Ross, Deborah K. [D-NC-2]

NC • D

Cosponsors

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 4/29/2026

  • Rep. Sykes, Emilia Strong [D-OH-13]

    OH • D

    Sponsored 4/29/2026

  • Rep. De La Cruz, Monica [R-TX-15]

    TX • R

    Sponsored 4/29/2026

Roll Call Votes

No roll call votes available for this bill.

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