Bankruptcy law: fraud debts harder to forgive
H.R. 10724 — To amend title 11, United States Code, to clarify the rules for the exceptions to the discharge of the debt of an individual debtor, and for other purposes. · Filed by J. Correa (D-CA) · 1 cosponsor · Introduced Oct 5, 2026 · Referred to committee
Your members of Congress
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What it does
This bill changes bankruptcy law. It says debts from fraud, false statements, theft, or embezzlement cannot be forgiven. This applies only if the debtor did these things themselves. The law makes clear that only the debtor's own wrongdoing counts.
Who it affects
People who file for bankruptcy. Lenders and credit card companies they owe money to. The bill protects lenders when a debtor committed fraud.
One thing to notice
The bill does not say if false statements must be on purpose. Courts will have to decide what the new rule means.
From the analysis of the bill text, linked under Primary records below.
Where it stands
1 cosponsor: 1 Republicans.
- Oct 5, 2026 — Introduced · Congress.gov: “Introduced in House”
- Oct 5, 2026 — Referred to House Committee on the Judiciary · Congress.gov: “Referred to the House Committee on the Judiciary”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Words to know
- debtor — a person who owes money and files for bankruptcy
- fraud — lying or tricking someone to get money or property
- embezzlement — stealing money from a person or company you work for
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (715 characters) on Oct 7, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
“Bankruptcy law: fraud debts harder to forgive” QuorumCivic. https://share.quorumcivic.app/bill/119/hr10724/simple Report an error
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