118th Congress · SENATE BILLBILL

S. 2831 — SACKLER Act

“A bill to prohibit the non-consensual release of claims by States, municipalities, federally recognized Tribes, or the United States against non-debtors, and for other purposes.”

Finance and financial sector

Introduced Sep 18, 2023

Last action Sep 18, 2023

Pipeline · Bill → Law

Step 1

Introduced

Sep 18, 2023

Step 2

Referred

Sep 18, 2023

the Judiciary

Step 3

Committee

Step 4

Senate

Step 5

House floor

Step 6

Resolve Changes

Step 7

Signed

SummaryCRS Summary

This bill prohibits a bankruptcy court from releasing claims against non-debtors brought by states, tribes, municipalities, or the federal government. However, the bankruptcy court may issue a stay not exceeding 90 days regarding such a claim. Complex bankruptcies may involve creditor claims against non-debtors associated with the debtor, such as the debtor's officers, directors, or employees. Currently, in carrying out a bankruptcy plan, certain courts may release non-debtors from liability (there is a circuit split regarding this practice).

Provisions · 2 sectionsIntroduced in Senate

Timeline · 2 actions

Sep 18, 2023

Introduced in Senate

Sep 18, 2023

Read twice and referred to the Committee on the Judiciary.