,,ii  #aaith ,,congress  #b;d ,session  
,s4 #dcdf  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #bj1    
#bjbf,mr4 ,whitehouse 7for himself1 ,mr4
 ,hawley1 and ,mr4 ,durbin7 introduced  
the following bill2 which was read twice
 and referred to the ,committee on the  
,judiciary  ,a ,,bill  ,to amend title  
#aa1 ,united ,states ,code1 to make the 
filing of a petition for relief under   
chapter #aa that is objectively futile  
or in subjective bad faith a cause for  
dismissal of the case1 and for other    
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,consumer           
,protection and ,corporate              
,accountability in ,bankruptcy ,act of  
#bjbf4  #b4 ,conversion or dismissal    
under chapter #aa ,section #aaab of     
title #aa1 ,united ,states ,code1 is    
amended-- 7#a7 in subsection 7b7-- 7,a7 
in paragraph 7#b77;,a71 by striking     
within a reasonable period of time and  
inserting not later than #bd months     
after the date of the filing of the     

petition2 and  7,b7 in paragraph 7#d7-- 
7i7 subparagraph 7,o71 by striking and  
at the end2  7ii7 in subparagraph 7,p71 
by striking the period at the end and   
inserting 2 and2 and  7iii7 by adding at
 the end the following3  7,q7 with      
respect to the dismissal of a case under
 this chapter1 the filing of a petition 
for relief or the continuation of a case
 under this title that is-- 7i7         
objectively futile2 or  7ii7 in         
subjective bad faith4  2 and  7#b7 by   
adding at the end the following3  7g7   
7#a7 ,for the purpose of subsection     
7b77#d77,q71 the court shall presume    
that a petition has been filed or that a
 case is continuing under this title in 
subjective bad faith if the court       
determines that the debtor manufactured 
the venue for the case4  7#b7 ,the      
presumption under paragraph 7#a7 may be 
rebutted only based on clear and        
convincing evidence4  7h7 7#a7 ,for the 
purpose of subsection 7b77#d77,q71 the  
court shall conclusively presume that a 

petition has been filed or that a case  
is continuing under this title in       
subjective bad faith if the court       
determines that-- 7,a7 a purpose or     
effect of the filing or continuation is 
to-- 7i7 gain a tactical litigation     
advantage2  7ii7 impose undue delay upon
 creditors2 or  7iii7 cap the total     
amount of the liability of the debtor to
 #b or more creditors holding protected 
claims 7as defined in section           
#cfb7p77#a77 that the debtor or any     
affiliate has property of value         
sufficient to pay in full as those      
claims would come due2  7,b7 during the 
#d-year period preceding the date of the
 filing of the petition1 the debtor was 
the subject of1 or was formed or        
organized in connection with1 a         
divisional merger or similar transaction
 changing the corporate structure of and
 affecting the financial condition of   
the debtor or an affiliate2  7,c7 during
 the #d-year period preceding the date  
of the filing of the petition1 the      

debtor engaged in a transfer of         
substantial assets to or for benefit of 
or incurred substantial obligations from
 or for the benefit of any insider or   
affiliate that1 notwithstanding         
subsections 7e7 through 7g7 and 7j7 of  
section #edf1 is avoidable under section
 #edd7;b7 or subsection 7a77#a7 or 7e7  
of section #edh2 or  7,d7 the debtor    
does not have a valid reorganizational  
purpose4  7#b7 ,in making a             
determination under paragraph 7#a77;,d71
 the court shall consider and give      
weight to whether any appointed         
creditors' committee supports the       
dismissal of the case4  7i7 ,in a       
determination under subsection 7g7 or   
7h71 the debtor shall have the burden of
 proof4  4  #c4 ,limitations on certain 
stays and injunctions ,section #aje of  
title #aa1 ,united ,states ,code1 is    
amended by adding at the end the        
following3  7e7 ,notwithstanding        
subsection 7a7 of this section1 any     
provision of title #bh1 the ,federal    

,rules of ,bankruptcy ,procedure1 or any
 applicable nonbankruptcy law1 the court
 may not issue any order1 process1 or   
judgment that has the purpose or effect 
of overriding or nullifying section     
#cfb7;b77#bg7 of this title4  4  #d4    
,automatic stay ,section #cfb of title  
#aa1 ,united ,states ,code1 is amended--
 7#a7 in subsection 7b7-- 7,a7 by       
redesignating paragraphs 7#bg71 7#bh71  
and 7#bi7 as paragraphs 7#bh71 7#bi71   
and 7#cj71 respectively2 and  7,b7 by   
inserting after paragraph 7#bf7 the     
following3  7#bg7 under subsection 7a7  
of this section1 of the commencement or 
continuation1 including the issuance or 
employment of process1 of a judicial1   
administrative1 or other action or      
proceeding against an entity that is not
 a debtor in a case under this title1 or
 any act to obtain or recover property  
of such entity1 on account of or with   
respect to a protected claim against    
such entity1 the debtor1 or the estate  
7including a protected claim that is    

property of the debtor or the estate    
against such entity71 if1 during the    
#d-year period preceding the date of the
 filing of the petition1 the debtor was 
the subject of1 or was formed or        
organized in connection with1 a         
divisional merger1 spinoff1 corporate   
restructuring1 or other transaction     
changing the corporate structure of1 and
 affecting the financial condition of1  
the debtor or an affiliate2  2 and  7#b7
 by adding at the end the following3    
7p7 ,for the purposes of paragraph      
7#bg73 7#a7 ,the term protected claim   
means-- 7,a7 a claim that-- 7i7 is      
against a nondebtor entity or against   
property of a nondebtor entity that is  
alleged to be directly or indirectly    
liable for a claim described in         
subparagraph 7,b7 against the debtor2   
and  7ii7 arises by reason of-- 7,i7 the
 nondebtor entity's ownership of a      
financial interest in the debtor1 a past
 or present affiliate of the debtor1 or 
a predecessor in interest of the debtor2

  7,,ii7 the nondebtor entity's         
involvement in the management of the    
debtor or a predecessor in interest of  
the debtor or the nondebtor entity's    
service as an officer1 director1 or     
employee of the debtor or a related     
party2  7,,iii7 the nondebtor entity's  
provision of insurance to the debtor or 
a related party2 or  7,,iv7 the         
nondebtor entity's involvement in a     
transaction changing the corporate      
structure1 or in a loan or other        
financial transaction affecting the     
financial condition1 of the debtor or a 
related party1 including-- 7aa7         
involvement in providing financing 7debt
 or equity7 or advice to an entity      
involved in such a transaction2 or  7bb7
 acquiring or selling a financial       
interest in an entity as part of such a 
transaction2 or  7,b7 a claim-- 7i7     
against the debtor or a nondebtor entity
 or property of the debtor or a         
nondebtor entity2  7ii7 relating to     
injury1 contamination1 damage1 or loss1 

including any claim for reimbursement1  
indemnity1 contribution1 or subrogation2
  7iii7 affecting1 directly or          
indirectly1 not fewer than #ajj         
individuals on or after the date of the 
filing of the petition2  7iv7 allegedly 
caused1 directly or indirectly1 by the  
presence of1 or exposure to1 a product1 
material1 or substance designed1        
marketed1 manufactured1 sold1 modified1 
extracted1 serviced1 or in any way used 
by the debtor or the nondebtor entity2  
and  7v7 arising1 directly or           
indirectly1 from acts or omissions1 of  
the debtor1 a predecessor in interest of
 the debtor1 or a past or present       
affiliate of the debtor4  7#b7 ,the term
 related party has the meaning given the
 term in section #ebd7;g77#d77;,a77iii74
  4  #e4 ,technical amendments  7a7     
,setoff ,section #eec of title #aa1     
,united ,states ,code1 is amended-- 7#a7
 in subsection 7a7-- 7,a7 in paragraph  
7#b77;,b77ii71 by striking #cfb7;b77#bg7
 and inserting #cfb7;b77#bh72 and  7,b7 

in paragraph 7#c77;,c71 by striking     
#cfb7;b77#bg7 and inserting             
#cfb7;b77#bh72 and  7#b7 in subsection  
7b77#a71 by striking #cfb7;b77#bg7 and  
inserting #cfb7;b77#bh74  7b7 ,relief   
that may be granted upon filing petition
 for recognition ,section #aeai7;f7 of  
title #aa1 ,united ,states ,code1 is    
amended by striking 7#bg7 and inserting 
7#bh74  7c7 ,relief that may be granted 
upon recognition ,section #aeba7;f7 of  
title #aa1 ,united ,states ,code1 is    
amended by striking 7#bg7 and inserting 
7#bh74  #f4 ,application and rule of    
construction ,this ,act and the         
amendments made by this ,act shall--    
7#a7 apply with respect to any case     
under title #aa1 ,united ,states ,code1 
filed or pending on or after the date of
 enactment of this ,act2 and  7#b7 not  
be construed to affect the validity of  
any final judgment or order confirming a
 plan under chapter #aa of title #aa1   
,united ,states ,code1 that was entered 
before the date of enactment of this    

,act4