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.
Clarifies that several bankruptcy discharge exceptions depend on conduct by the individual debtor.
In the House Judiciary Committee since Oct. 5, 2026, 3 days after it was introduced. Most bills never leave committee.
- INTRODUCEDINTROOCT 5, 2026
- COMMITTEECOMM.IN COMMITTEE
- HOUSEHOUSE—
- SENATESENATE—
- LAWLAW—
What the bill would do, and why it matters
Bankruptcy law sets rules for which individual debts can be erased. The bill would clarify that several exceptions for fraud and other misconduct depend on conduct by the debtor, including the debtor’s use of a written financial statement.
- INTRODUCED ONLY This bill has been introduced and possibly referred to a committee, but it has not passed any vote. Most introduced bills never become law — they die in committee without a hearing.
- DATA NOTE No Congressional Research Service summary was available.
- Tie fraud exceptions to debtor conduct
For certain debts to remain outside an individual debtor’s bankruptcy discharge because of fraud, false pretenses or a false representation, the bill specifies that the conduct must be by the debtor. It excludes statements about the debtor’s or an insider’s financial condition from this part of the fraud exception.
- Specify who uses financial statements
For the exception involving a written statement about financial condition, the bill adds that the statement’s use must be by the debtor.
- Tie other misconduct exceptions to the debtor
The bill specifies that the exceptions for fraud or defalcation while acting in a fiduciary capacity, embezzlement and larceny apply when the debtor committed the conduct.
The bill addresses how bankruptcy law identifies responsibility for fraud and other misconduct when deciding whether an individual’s debt can be discharged. The practical stakes are whether particular debts remain owed after bankruptcy.
Written from the bill text.
The path it took, step by step
- IntroducedOCT 5, 2026HOUSEOCT 5, 2026By Rep. Correa with 1 original cosponsorReferred to Judiciary
- SAME DAYNOWHouse committeeOCT 5, 2026JUDICIARY NOWOCT 5, 2026In committee for 3 daysNo hearing yet
- 3 DAYS SO FARPassed the House—HOUSE FLOOR—Not scheduled
- Senate committee—SENATE—
- Passed the Senate—SENATE FLOOR—Not scheduled
- Resolve differencesONLY IF NEEDEDBOTH CHAMBERSONLY IF NEEDEDSkipped if the other chamber passes the same text
- Signed into law—PRESIDENT—10 days to sign or veto
- OCT 52026OCT 5, 2026REFERREDHOUSEReferred to the House Committee on the Judiciary.
- OCT 52026OCT 5, 2026INTRODUCEDHOUSEIntroduced in House
At day 3, this bill is already older than 3% of the laws passed this Congress were when they were signed.
Where your members stand on it
Support from one state
Plus the sponsor, a Democrat. Every cosponsor is from one party.
Plus the sponsor, a Democrat. Every cosponsor is from one party.
Rep. Correa’s record: sponsored 24 bills this Congress. 1 passed the House; 0 became law.
- Laurel M. LeeR-FL-15ORIGINAL
What readers think
Discussion
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