Bankruptcy shield for child sex abuse claims tightened

What does this do?

This bill changes federal bankruptcy law to make it harder for people and organizations to use bankruptcy to get out of paying for child sexual abuse. Courts could no longer seal financial records or abuse evidence in these cases, except to protect victim identities. Survivors could also file claims in bankruptcy court even if their state's lawsuit deadline has passed.

Who does it affect?

The bill affects any individual or organization, including nonprofits and churches, that faces child sexual abuse claims and files for bankruptcy. It also directly affects survivors, giving them new rights in bankruptcy court including the right to submit victim impact statements.

Why does it matter?

Without these changes, organizations can use bankruptcy proceedings to limit or avoid financial responsibility for child sexual abuse. The bill also means that debts tied to abuse cannot be erased through bankruptcy if the debtor directly committed the abuse or was grossly negligent.

Where does it stand?