Nondebtor Release Prohibition Act of 2024

This bill prohibits bankruptcy courts from approving or ordering the release of liability for entities other than the debtor (nondebtor releases) in Chapter 11 bankruptcy cases. It specifically prevents courts from discharging, releasing, or modifying claims against non-debtors (like companies or individuals not in bankruptcy) or blocking creditors from pursuing claims against them. The law applies to all pending or future bankruptcy cases and includes limited exceptions, such as when non-debtors consent in writing after receiving clear notice. It directly affects creditors who might lose claims against third parties and businesses that previously relied on such releases in bankruptcy plans. The bill aims to ensure victims of harm can pursue liability against responsible parties, not just the bankrupt entity.