J. Correa (D-CA)
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.
A Democratic bill with 1 Republican cosponsor · See the cosponsor
Last activity — Referred to the House Committee on the Judiciary.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill is about changing the rules in the bankruptcy laws for individual debtors. It was introduced in the House of Representatives on October 5, 2026. The legislation focuses on clarifying the rules for exceptions to the discharge of an individual's debt. Specifically, it amends section 523(a) of title 11 of the United States Code. The changes target rules regarding false pretenses, false representations, actual fraud, and other acts committed by the debtor.
Who it would affect, and how
Potential Positive Impacts for People
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Section 1(a)(1)(A) clarifies the exception to debt discharge related to false pretenses, false representations, or actual fraud by specifically stating these actions must be committed by the debtor, excluding statements respecting the debtor's or an insider's financial condition. This brings clarity to what specific actions by the debtor prevent a debt from being discharged.
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Section 1(a)(2) clarifies rules under paragraph (4) by explicitly stating that fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny must be committed by the debtor. This helps ensure accountability rests properly on the individual debtor for these specific actions.
Potential Negative Impacts for People
- Based on the provided text, no specific negative consequences, burdens, or negative impacts on individuals or groups are explicitly mentioned in the bill.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
No significant interests or groups are affected by this bill.
- 10/5/2026
- Referred to the House Committee on the Judiciary.
- 1 Cosponsor added.
- Introduced in House
Laurel LeeRepublican · Florida