To amend title 11 of the United States Code with respect to the allowance of certain claims or interests.

H.R. 4696 proposes changes to federal bankruptcy law that would restrict which asbestos-related health claims can be paid out during a company's reorganization. Under this bill, individuals with "nonmalignant" conditions—such as scarring of the lung lining or a general fear of cancer—would be barred from filing claims unless they can prove permanent breathing impairment or are filing on behalf of someone whose death was directly caused by asbestos.

The practical impact of this legislation is that citizens with early-stage or asymptomatic asbestos exposure would be unable to seek immediate compensation through bankruptcy proceedings. However, the bill includes a "come back" provision, allowing these individuals to file a claim later if they eventually develop a more severe or life-threatening asbestos-related illness.