U.S. Congress legislation · 119th Congress
HB10942: No Bonuses in Bankruptcy Act of 2026
Status: In committee, October 29, 2026
To amend title 11, United States Code, to prohibit the payment of bonuses to highly compensated individuals employed by the debtor and insiders of the debtor to perform services during the bankruptcy case, and for other purposes.
What the bill says
To amend title 11, United States Code, to prohibit the payment of bonuses to highly compensated individuals employed by the debtor and insiders of the debtor to perform services during the bankruptcy case, and for other purposes.
From the introduced text, October 29, 2026:
A BILL To amend title 11, United States Code, to prohibit the payment of bonuses to highly compensated individuals employed by the debtor and insiders of the debtor to perform services during the bankruptcy case, and for other purposes. SECTION 1. Short title This Act may be cited as the No Bonuses in Bankruptcy Act of 2026 . SECTION 2. Amendments (a) Allowance of administrative expenses Section 503 of title 11, United States Code, is amended by adding at the end the following: (d) (1) Notwithstanding any other provision of this section, there shall neither be allowed nor paid a bonus to-- (A) an individual employed by the debtor at an annual rate of compensation exceeding $250,000; (B) an insider of the debtor; or (C) an individual employed by the debtor to the extent that such bonus would cause that individual's annual rate of compensation to exceed $250,000. (2) For purposes of this subsection, the term bonus means a transfer to, or obligation incurred for the benefit of, an individual employed by the debtor or insider of the debtor as compensation for services in an amount that-- (A) is in addition to the existing wages, salary, or base compensation of an insider of the debtor or individual employed by the debtor; and (B) can be construed as a form of …
Sponsors
- Mary Gay Scanlon (D, HD-PA-5) · primary sponsor
Latest actions
- : Referred to the House Committee on the Judiciary.
- : Introduced in House
Common questions
- What is HB10942?
- HB10942 is a bill in Congress (119th Congress): No Bonuses in Bankruptcy Act of 2026.
- What does HB10942 do?
- In its own words: To amend title 11, United States Code, to prohibit the payment of bonuses to highly compensated individuals employed by the debtor and insiders of the debtor to perform services during the bankruptcy case, and for other purposes.
- What is the status of HB10942?
- In committee as of October 29, 2026. Latest action: Referred to the House Committee on the Judiciary. (October 29, 2026).
- Who sponsored HB10942?
- Mary Gay Scanlon (D, HD-PA-5).
- Where is the official record for HB10942?
- On the Congress website: https://www.congress.gov/bill/119th-congress/house-bill/10942
Source: official Congress record. Tracked by Delilah, AI for legislation across all 50 states and Congress.