Sponsors (4)
The bill increases privacy and safety protections for individuals' genetic data in bankruptcy estates through notice, court oversight, and mandated secure deletion, but it creates extra administrative burdens, costs, and potential inconsistency across courts.
People whose genetic data is part of a bankruptcy estate (including people with disabilities and immigrants) will receive notice before any sale or lease and gain stronger deletion protections enforced by the court.
People with genetic data in bankruptcy estates face a reduced risk of misuse or unauthorized disclosure because courts must ensure any sale or transfer complies with applicable nonbankruptcy privacy laws.
Trustees, government contractors, and estates are prompted to use court‑prescribed secure deletion methods (e.g., NIST SP 800‑88), promoting safer disposal of sensitive genetic data.
Trustees and courts will incur additional procedural burdens and potential delays in administering bankruptcy estates due to notice, compliance, and oversight requirements.
Estates may face higher costs for providing notice, ensuring compliance, and performing secure deletion, which could reduce recoveries for creditors and increase costs for taxpayers or debtors.
Because deletion methods are court‑prescribed, inconsistent application across jurisdictions risks uneven protections and compliance uncertainty for estates, trustees, and affected individuals.
Based on analysis of 2 sections of legislative text.
Adds genetic information to bankruptcy protections, requires prior written notice and court finding before sale/use/lease, and mandates secure deletion of remaining estate genetic data.
Introduced July 17, 2025 by Benjamin Cline · Last progress July 17, 2025
Adds genetic information to the types of personal data protected in federal bankruptcy cases. It blocks use, sale, or lease of genetic data from a bankruptcy estate without actual prior written notice to each affected person and a court finding that the transaction complies with nonbankruptcy law, and requires trustees or debtors in possession to securely delete any estate genetic information not sold or otherwise disposed of.