Nondebtor Release Prohibition Act of 2024

HR 9223, the Nondebtor Release Prohibition Act of 2024, prohibits bankruptcy courts from approving plan provisions that release non-debtor entities (like other companies or individuals) from liability for claims against them. It specifically blocks courts from discharging, releasing, or modifying liabilities of entities other than the debtor or estate, and limits stays on lawsuits against non-debtors to 90 days without the affected party's explicit consent. This bill directly affects creditors and third parties who might otherwise be shielded from liability through bankruptcy proceedings. The law amends Chapter 11 of the U.S. Bankruptcy Code to clarify that courts cannot create authority for nondebtor releases or extended stays, applying to all pending or future bankruptcy cases.