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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10724 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                               H. R. 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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 5, 2026

    Mr. Correa (for himself and Ms. Lee of Florida) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
  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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF EXCEPTION TO DISCHARGE OF INDIVIDUAL 
              DEBTOR.

    Section 523(a) of title 11, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) false pretenses used by the debtor, a false 
                representation made by the debtor, or actual fraud 
                committed by the debtor, other than a statement 
                respecting the debtor's or an insider's financial 
                condition;'';
                    (B) in subparagraph (B), in the matter preceding 
                clause (i), by inserting after ``use'' the following: 
                ``, by the debtor,''; and
            (2) by amending paragraph (4) to read as follows:
            ``(4) for, when committed by the debtor--
                    ``(A) fraud or defalcation while acting in a 
                fiduciary capacity;
                    ``(B) embezzlement; or
                    ``(C) larceny;''.
                                 <all>
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.

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