Sponsors (5)
The bill strengthens privacy and legal protections for individuals' genetic data in bankruptcy at the cost of added compliance and administrative burdens, potential delays and litigation in bankruptcy proceedings, and possible reductions in estate recoveries for creditors.
People whose genetic data is in a bankruptcy estate: must receive prior written notice before any sale, lease, or other use of their genetic information, improving their ability to object or take protective steps.
Individuals whose genetic data is estate property: trustees/debtors must delete any estate-owned genetic data not sold using court-prescribed methods, reducing the risk of unauthorized retention or future misuse of sensitive health information.
All people with genetic information potentially involved in bankruptcy: genetic information is explicitly treated as a protected category in the bankruptcy code, strengthening statutory privacy protections during bankruptcy proceedings.
Trustees and estates (and ultimately taxpayers): requiring prior written notice to every person whose genetic data could be sold may slow asset disposition and increase administrative costs for estates.
Trustees, debtors in possession, and estate administrators: mandating deletion by court-prescribed standards (e.g., NIST SP 800-88) creates compliance costs and operational burdens for securely erasing genetic data.
Bankruptcy courts, creditors, and estate parties: requiring courts to find that a sale or lease would not violate nonbankruptcy law could lengthen proceedings and spur additional litigation over lawfulness of transactions.
Based on analysis of 2 sections of legislative text.
Adds genetic information protections to the bankruptcy code: requires notice before sale/lease, court review of legality, and secure deletion of retained genetic data.
Official title: Amend title 11, United States Code, to account for the protection of genetic information in bankruptcy.
Introduced May 22, 2025 by John Cornyn · Last progress May 22, 2025
Adds genetic information to the list of protected categories in the bankruptcy code and creates new procedural protections before estate-owned genetic data may be used, sold, or leased. It requires prior written notice to people whose genetic information would be affected, a court finding about compliance with nonbankruptcy law before sale/lease, and mandatory secure deletion of estate-held genetic data that is not sold or otherwise disposed of. The rule takes effect on enactment and applies to bankruptcy cases pending, commenced, or reopened on or after enactment. Trustees and debtors in possession must follow court-prescribed deletion methods (for example, NIST SP 800-88 or a successor standard).