Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026
Sens. Whitehouse and Hawley Push Bill to End Corporate 'Texas Two-Step' Bankruptcy Maneuvers
This bill was introduced in the Senate and is currently being reviewed by the Committee on the Judiciary. It is in the early stages of the legislative process and has no upcoming votes scheduled at this time. The bill is considered active as it waits for further consideration by the committee.
Legislative Progress
The bill has strong bipartisan support from high-profile senators, but it faces heavy opposition from corporate lobbyists who use these bankruptcy tactics.
Key Points
Impact Analysis
Personal Impact
Life & Work
The bill primarily targets large corporations using complex restructuring to evade liability, but the new standards for bad faith and futility apply broadly to all Chapter 11 filers. Some small businesses in genuine financial distress could face additional scrutiny or procedural hurdles, though the bill's provisions are mainly aimed at the divisional merger tactic used by large companies.
Programs
Disabilities
State Impacts
Milestones
Read twice and referred to the Committee on the Judiciary.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
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'Texas Two-Step' Bankruptcy Tactic Targeted Again by Lawmakers
A bipartisan bill aimed at curbing the use of Chapter 11 to limit liability in mass tort cases would impose stricter standards on organizations considering bankruptcy. The effort, led by Reps. Emilia Sykes and others, targets the 'Texas Two-Step' maneuver used by companies like Johnson & Johnson.
Bipartisan Group of Legislators Reintroduce Bill to End 'Texas Two-Step'
Sens. Sheldon Whitehouse, Josh Hawley, and Dick Durbin reintroduced the 'Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026.' The legislation would instruct courts to presume a bankruptcy has been filed in bad faith if it appears to be a Texas Two-Step maneuver.
Senators Condemn Use of Bankruptcy Protection to Evade Mesothelioma Liability
Members of Congress have reintroduced bipartisan legislation aimed at stopping the controversial 'Texas Two-Step,' a bankruptcy maneuver that's been used to interfere with mesothelioma and other asbestos disease claims, allowing profitable companies to dodge accountability.
Source Information
Document Type
Congressional Bill
Official Title
Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026
Data Sources
Sponsor
Cosponsors
(2)Analysis generated by AI. Always verify with official sources.