To amend title 11, United States Code, to make the filing of a petition for relief under chapter 11 that is objectively futile or in subjective bad faith a cause for dismissal of the case, and for other purposes.

Referred to the House Committee on the Judiciary.

2026-04-20

This bill would allow courts to dismiss bankruptcy cases filed under Chapter 11 (which allows businesses to reorganize while continuing operations) if the case appears to have no realistic chance of success or if the company is filing in bad faith to delay creditors or gain unfair advantages. The change would give judges more power to stop frivolous or abusive bankruptcy filings that waste court resources and harm creditors. Businesses, creditors, and bankruptcy courts would be most affected by this stricter standard for Chapter 11 cases.