Closing Bankruptcy Loopholes for Child Abuse Claims and Accountability.
This law amends bankruptcy rules to prevent organizations and individuals accused of child sexual abuse from using bankruptcy to shield assets or avoid accountability. It mandates that victim impact statements be heard in bankruptcy court and removes state statutes of limitations for child abuse claims within bankruptcy proceedings. These changes aim to increase transparency and financial support for survivors.
Key points
Claims by child abuse survivors in bankruptcy cases will no longer be barred by state statutes of limitations.
Bankruptcy courts must hold conferences to hear victim impact statements (written or oral) detailing the abuse's effect, though these statements cannot be used as evidence.
For non-profit organizations (like churches) facing abuse claims, the court must hire an independent forensic accountant to review their assets.
The ability to seal evidence of alleged child abuse crimes in bankruptcy proceedings is significantly restricted.
Status:
Expired
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