Lawmakers have introduced new federal legislation aimed at strengthening the rights of child sexual abuse survivors when institutions accused of abuse file for bankruptcy protection.
According to recent reports, members of Congress introduced a bill that would allow survivors of child sexual abuse to obtain evidence and pursue claims more effectively during bankruptcy proceedings—an issue that has become increasingly significant in cases involving large institutions such as churches, youth organizations, and schools. This child sex abuse bankruptcy reform bill was introduced in April 2026 and is currently in the early stages of the legislative process, pending committee review.
Purpose of the Legislation
The proposed legislation is designed to address a key concern raised by survivors and advocates: that bankruptcy proceedings can limit access to critical evidence needed to prove claims of abuse.
Under current law, when an institution files for bankruptcy, survivors may face restrictions on:
- obtaining documents related to allegations of abuse
- accessing internal records or investigations
- pursuing discovery that could support their claims
The new bill seeks to ensure that survivors are not prevented from uncovering evidence simply because an institution seeks bankruptcy protection.
Key Provisions of the Proposed Legislation
According to the bill summary, the Closing Bankruptcy Loopholes for Child Predators Act would:
- allow survivors of child sexual abuse to continue gathering evidence during bankruptcy proceedings, instead of having those efforts automatically paused
- give survivors the opportunity to submit victim impact statements in Chapter 11 cases, ensuring their voices are heard before any reorganization plan is approved
- require forensic accountants to review a debtor’s assets and related holdings, helping ensure transparency and fair compensation for survivors
Background: Bankruptcy and Abuse Claims
In recent years, numerous institutions—including many Catholic Dioceses and youth programs—have filed for bankruptcy in response to large numbers of sexual abuse claims.
While bankruptcy can provide a mechanism for resolving claims, critics argue that it can also:
- limit survivors’ ability to fully investigate allegations
- consolidate cases in ways that reduce individual claims
- shield institutions from full public accountability
Advocates say reforms are needed to ensure that survivors’ rights are not diminished in these proceedings.
Impact for Survivors
If passed, the legislation could have a significant impact on survivors by:
- improving access to evidence needed to prove abuse
- increasing transparency in institutional misconduct cases
- helping survivors hold organizations accountable
- strengthening their ability to pursue fair compensation
The bill reflects a growing recognition that legal processes should not create additional barriers for survivors seeking justice.
Horowitz Law Is Here to Help
Horowitz Law represents survivors of sexual abuse and has extensive experience handling cases involving institutions that have filed for bankruptcy. We understand the unique challenges survivors face in these complex legal proceedings.
If you or someone you know has been affected by sexual abuse and is concerned about how bankruptcy may impact your rights, contact our law firm at 888-283-9922 or email sexual abuse lawyer Adam Horowitz for a free consultation.