Consumer Protection and Corporate Accountability in Bankruptcy Act of 2026

This bill strengthens consumer protections and corporate accountability by tightening rules for Chapter 11 bankruptcy cases, particularly those involving large corporate restructurings. It allows courts to dismiss bankruptcy filings more quickly if they are filed in bad faith or to gain a tactical advantage, while also limiting the automatic stay that usually pauses legal actions against non-debtor entities like parent companies or insurers. Specifically, the law removes the automatic stay for certain claims related to mass torts or environmental issues if the debtor underwent a major corporate restructuring in the four years before filing. These changes aim to prevent companies from using bankruptcy to shield themselves from liability to hundreds of individuals while still allowing legitimate reorganization efforts to proceed.