I 
118TH CONGRESS 
2D SESSION 
H. R. 9223 
To amend title 11, United States Code, to prohibit nonconsensual release 
of a nondebtor entity’s liability to an entity other than the debtor, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 30, 2024 
Mr. NADLER (for himself, Mr. COHEN, Ms. NORTON, Ms. PORTER, Mr. 
DESAULNIER, and Mr. JOHNSON of Georgia) introduced the following 
bill; which was referred to the Committee on the Judiciary 
A BILL 
To amend title 11, United States Code, to prohibit non-
consensual release of a nondebtor entity’s liability to 
an entity other than the debtor, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Nondebtor Release 
Prohibition Act of 2024’’. 
SEC. 2. PROHIBITION OF NONDEBTOR RELEASES. 
(a) IN GENERAL.—Chapter 1 of title 11, United 
States Code, is amended by adding at the end the fol-
lowing: 
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‘‘§ 113. Prohibition of nondebtor releases 
‘‘(a) Except as provided in subsection (b) of this sec-
tion, subsection (a)(3), (g), (h), or (i) of section 524, sec-
tion 1201, and section 1301, the court may not— 
‘‘(1) with respect to the liability of an entity 
other than the debtor or the estate on, or the liabil-
ity of property of an entity other than the debtor or 
the estate for, a claim or cause of action of an entity 
other than the debtor or the estate— 
‘‘(A) approve any provision, in a plan of 
reorganization or otherwise, for the discharge, 
release, termination, or modification of such li-
ability; or 
‘‘(B) order the discharge, release, termi-
nation, or modification of such liability; or 
‘‘(2) with respect to a claim or cause of action 
of an entity other than the debtor or the estate 
against an entity other than the debtor or the estate, 
or against property of an entity other than the debt-
or or the estate, enjoin— 
‘‘(A) the commencement or continuation 
(including the issuance or employment of proc-
ess) of a judicial, administrative, or other action 
or proceeding to assert, assess, collect, recover, 
offset, recoup, or otherwise enforce such claim 
or cause of action; or 
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‘‘(B) any act to assert, assess, collect, re-
cover, offset, recoup, or otherwise enforce such 
claim or cause of action. 
‘‘(b) Nothing in subsection (a) of this section shall 
affect any power the court may have— 
‘‘(1) to authorize a sale, transfer, or other dis-
position of property free and clear of claims or inter-
ests; 
‘‘(2) to prevent an entity other than the debtor 
or the estate from exercising control over or other-
wise interfering with a right or interest (including a 
claim or cause of action) that is property of the es-
tate; 
‘‘(3) to bar a claim or cause of action for in-
demnity, reimbursement, contribution, or subroga-
tion against an entity that the estate has released 
from a claim or cause of action for which the holder 
of the barred claim or cause of action also is or may 
be liable or has or may have secured; 
‘‘(4) under applicable nonbankruptcy law, title 
28, or the Federal Rules of Bankruptcy Procedure, 
with respect to any claim or cause of action the 
court is hearing under section 157(a) or 1334(b) of 
title 28; 
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‘‘(5) to approve any disposition of a claim or 
cause of action of an entity other than the debtor or 
the estate to which such entity expressly consents in 
a signed writing provided that— 
‘‘(A) such consent is given only after clear 
and conspicuous notice to such entity of the 
proposed disposition in language appropriate 
for the typical holder of such claim or cause of 
action; 
‘‘(B) such consent cannot be given by— 
‘‘(i) accepting a proposed plan; or 
‘‘(ii) failing to accept or reject a pro-
posed plan, failing to object to a proposed 
plan, or any other silence or inaction; and 
‘‘(C) treatment of such entity, and any 
claims or interests of such entity, under a plan 
cannot be more or less favorable by reason of 
such entity’s consent or failure to consent; or 
‘‘(6) to enjoin the commencement or continu-
ation (including the issuance or employment of proc-
ess) of a judicial, administrative, or other action or 
proceeding against an entity appointed or employed 
(or whose appointment or employment was ap-
proved) by or under the auspices of the court, in an-
other court and without leave of the court, with re-
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