PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on the Judiciary.
Congressional Research Service
No official summary is available in the imported record yet.
People & committees
Rep. Correa, J. Luis [D-CA-46] · D–CA
Legislative record
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Referred to the House Committee on the Judiciary.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Oct 9, 2026. Consult Congress.gov for the current record.
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Analyze H.R.10724 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
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PlainBill explanation
Based on the full Introduced in House · 2026-10-05 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This bill would revise federal bankruptcy rules about debts that individual people cannot have cleared through bankruptcy. It would expressly tie specified exceptions involving deception, fraud, misuse of entrusted funds, and theft to conduct by the debtor—the person who owes the debt. These are proposed changes.
Clarification of exception to discharge of individual debtor Section 523(a) of title 11, United States Code, is amended
false pretenses used by the debtor, a false representation made by the debtor, or actual fraud committed by the debtor
(4) for, when committed by the debtor— (A) fraud or defalcation while acting in a fiduciary capacity; (B) embezzlement; or (C) larceny;
The proposed replacement for paragraph (2)(A) would specify false pretenses used, false representations made, or actual fraud committed by the debtor. It would exclude statements about the financial condition of the debtor or an insider from this subparagraph; that exclusion does not establish how such statements are treated elsewhere in the law.
(A) by amending subparagraph (A) to read as follows: (A) false pretenses used by the debtor, a false representation made by the debtor, or actual fraud committed by the debtor, other than a statement respecting the debtor's or an insider's financial condition;
In paragraph (2)(B), the bill would insert “, by the debtor,” after “use” in the language before clause (i). The supplied text does not reproduce that surrounding language, so it does not show the complete rule this insertion would modify.
(B) in subparagraph (B), in the matter preceding clause (i), by inserting after use the following: , by the debtor,
The proposed replacement for paragraph (4) would apply the words “when committed by the debtor” to three categories: fraud or defalcation while acting in a fiduciary capacity, embezzlement, and larceny. In plain language, these concern fraud or mishandling entrusted funds in a position of trust, misappropriating entrusted property, and theft.
(2) by amending paragraph (4) to read as follows: (4) for, when committed by the debtor— (A) fraud or defalcation while acting in a fiduciary capacity; (B) embezzlement; or (C) larceny;
The supplied official-actions snapshot, updated October 9, 2026, records introduction in the House and referral to the House Committee on the Judiciary on October 5, 2026.
Source snapshot updated 2026-10-09T20:42:46Z. 2026-10-05: Referred to the House Committee on the Judiciary. 2026-10-05: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-10-05. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish what appears in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion does not establish the contents of other versions or accompanying disclosure and committee materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow preferential carve-out was identified in the complete supplied introduced text. The proposed debtor-conduct requirements concern the bill's general bankruptcy policy. This conclusion is limited to the supplied version.
Full text preserved for this analysis. Legislative record snapshot: Oct 9, 2026. How PlainBill uses AI