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In re Character Technologies Inc

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Case Information
Case name In re Character Technologies, Inc.[1]
Court U.S. Bankruptcy Court for the District of Delaware[1]
Docket 26-11603-BLS[2]
Filed October 12, 2026[1]
Judge(s) Brendan L. Shannon[2]
Debtor Character Technologies, Inc., doing business as Character.AI[1]
Defendants Not applicable: voluntary bankruptcy proceeding[1]
Case type Voluntary Chapter 11 bankruptcy[1]
Claims / issues Bankruptcy administration, proposed sale procedures, and state consumer-safety and privacy concerns[3]
Status October 14, 2026: state attorneys general filed a safety and privacy notice; court restated statutory stay protections and set the bidding-motion hearing for October 30.[3][4][2]

In re Character Technologies, Inc. is the Chapter 11 bankruptcy of the company doing business as Character.AI. The company filed its voluntary petition in Delaware on October 12, 2026.[1]

October 14, 2026: state attorneys general filed a safety and privacy notice; court restated statutory stay protections and set the bidding-motion hearing for October 30.[3][4][2]

October 14 safety and privacy notice

A coalition of state attorneys general filed a notice of interest and reservation of rights concerning the debtor’s regulatory, safety and privacy issues. The states describe ongoing investigations and alleged shortcomings in child protections, professional-persona representations, age assurance and sensitive-data handling. These are the coalition’s positions and allegations in its filing.[3]

The states seek protections in any sale or transfer: effective age assurance, safeguards for minors and crisis responses, removal of misleading professional personas, a privacy program, account-level advertising opt-outs, limits on secondary use of private conversations without valid consent, and access and deletion opportunities before a data sale. They reserve rights to seek a consumer privacy ombudsman, object to sale procedures or a plan, supplement the notice and pursue other relief.[3]

October 14 orders and hearing dates

The automatic-stay order restates protections concerning prepetition proceedings and claims, estate property, bankruptcy-triggered contract changes and governmental discrimination based solely on bankruptcy or insolvency. It preserves statutory exceptions and parties’ ability to seek stay relief, including applicable governmental police and regulatory powers.[4]

The court set consideration of the bidding-procedures motion for October 30, 2026 at 10 a.m. Eastern, with objections due October 23 at 4 p.m. Eastern. The order grants shortened notice and schedules consideration of the motion.[2]

The debtor’s omnibus notice records the October 14 first-day hearing and interim approval of the listed operational motions. It schedules their final-approval hearing for November 17 at 10 a.m. Eastern, with objections due October 30 at 4 p.m. Eastern.[5]

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Bankr. D. Del., In re Character Technologies, Inc., No. 26-11603-BLS, ECF 1, voluntary Chapter 11 petition, filed October 12, 2026, pp. 1–12.
  2. ↑ 2.0 2.1 2.2 2.3 2.4 Bankr. D. Del., In re Character Technologies, Inc., No. 26-11603-BLS, ECF 43, order shortening notice and setting bidding-motion hearing, October 14, 2026, pp. 1–2.
  3. ↑ 3.0 3.1 3.2 3.3 3.4 Bankr. D. Del., In re Character Technologies, Inc., No. 26-11603-BLS, ECF 33, states’ notice of interest and reservation of rights, filed October 14, 2026, pp. 1–28.
  4. ↑ 4.0 4.1 4.2 Bankr. D. Del., In re Character Technologies, Inc., No. 26-11603-BLS, ECF 34, automatic-stay order, October 14, 2026, pp. 1–5 and notice exhibit.
  5. ↑ Bankr. D. Del., In re Character Technologies, Inc., No. 26-11603-BLS, ECF 44, omnibus notice of first-day motions and final hearing, October 14, 2026, pp. 1–3.
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