II 

116TH CONGRESS 

2D SESSION S. 4991 

To amend title 11, United States Code, to add a bankruptcy chapter relating 

to the debt of individuals, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 9, 2020 

Ms. WARREN (for herself, Mr. DURBIN, and Mr. WHITEHOUSE) introduced 

the following bill; which was read twice and referred to the Committee 

on the Judiciary 

A BILL 

To amend title 11, United States Code, to add a bankruptcy 

chapter relating to the debt of individuals, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Bankruptcy 

5 Reform Act of 2020’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—CHAPTER 10 INDIVIDUAL BANKRUPTCY 


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Sec. 101. Findings and purpose. 

Sec. 102. Chapter 10 individual bankruptcy. 

Sec. 103. Repeal of chapter 13. 

Sec. 104. Other amendments to the Bankruptcy Code. 

Sec. 105. Data collection. 

Sec. 106. Electronic signatures. 

Sec. 107. Judicial education. 

Sec. 108. Conforming amendments to other laws. 

TITLE II—CONSUMER FINANCIAL PROTECTION AMENDMENTS 

Sec. 201. Amendments to the Consumer Financial Protection Act of 2010. 

Sec. 202. Amendments to the Truth in Lending Act. 

Sec. 203. Amendments to the Fair Credit Reporting Act. 

Sec. 204. Amendments to the Equal Credit Opportunity Act. 

Sec. 205. Amendments to the Fair Debt Collection Practices Act. 

Sec. 206. Amendments to the Electronic Fund Transfers Act. 

TITLE III—BANKRUPTCY RULES 

Sec. 301. Rules Enabling Act amendments. 

Sec. 302. Bankruptcy rules amendments. 

Sec. 303. Sense of Congress. 

TITLE IV—FUNDING THE BANKRUPTCY SYSTEM 

Sec. 401. Bankruptcy fees. 

Sec. 402. Trustee compensation. 

TITLE V—BANKRUPTCY LIEN FILING SYSTEM 

Sec. 501. Bankruptcy lien filing system. 

TITLE VI—MISCELLANEOUS 

Sec. 601. Effective date. 

Sec. 602. Transition. 

Sec. 603. Severability. 

1 TITLE I—CHAPTER 10 

2 INDIVIDUAL BANKRUPTCY 

3 SEC. 101. FINDINGS AND PURPOSE. 

4 (a) FINDINGS.—Congress finds that— 

5 (1) individuals and families are often in finan6 cial distress for reasons outside of their control, such 

7 as job loss, medical bills, or educational debt, and an 

8 effective bankruptcy system not only provides those 

9 individuals and families with a fresh start but also 


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1 ensures that they can participate fully in the United 

2 States economy; 

3 (2) the Bankruptcy Code was adopted in 1978, 

4 and, since then, consumer lending has grown dra5 matically and been transformed by technology and 

6 the preemption of State usury and consumer protec7 tion laws for certain types of lenders; 

8 (3) unnecessary paperwork and overly complex 

9 laws increase the cost of bankruptcy and prevent in10 dividuals and families in the United States who need 

11 help from accessing the bankruptcy system; 

12 (4) many consumer debtors cannot afford bank13 ruptcy counsel and must instead save up to pay an 

14 attorney to file their bankruptcy petitions; 

15 (5) the dual-track bankruptcy system produces 

16 racially disparate outcomes that disadvantage people 

17 of color; 

18 (6) student loan debt burdens are creating dis19 tortions in the labor and housing market; 

20 (7) the nondischargeability of private student 

21 loan debt has not resulted in lower financing costs 

22 for student loan borrowers; 

23 (8) the inability of debtors to restructure home 

24 mortgage loans has led to unnecessary foreclosures 

25 that have created hardships for individuals and famVerDate Sep 11 2014 20:26 Dec 29, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4991.IS S4991

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1 ilies and their communities without reducing costs of 

2 mortgage financing; 

3 (9) individuals and families often rely on their 

4 cars to get to work and to get dependents to school 

5 and medical appointments but often cannot retain 

6 their cars in bankruptcy without paying substan7 tially more than the car is worth; 

8 (10) the difficulty of enforcing the discharge in9 junction has enabled illegal debt collection activity 

10 that undercuts the fresh start policy of bankruptcy; 

11 (11) existing law does not provide a sufficient 

12 deterrent to predatory creditors that harm individ13 uals and families in bankruptcy by violating con14 sumer financial laws or failing to comply with bank15 ruptcy rules; and 

16 (12) well-counseled, affluent debtors can avoid 

17 repaying creditors through asset protection planning. 

18 (b) PURPOSE.—The purpose of the Act is to establish 

19 a bankruptcy system that helps individuals and families 

20 in the United States regain financial stability and protects 

21 against abusive and predatory behavior by— 

22 (1) streamlining the process of filing for bank23 ruptcy, simplifying court procedures in bankruptcy, 

24 and lowering the cost of bankruptcy for both con25 sumers and creditors; 


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1 (2) creating a single-chapter consumer bank2 ruptcy system that allows consumers greater flexi3 bility in addressing their debts and prevents dis4 parate treatment of similarly situated consumers; 

5 (3) offering consumers more and better options 

6 to deal with debts, while ensuring the fair treatment 

7 of creditors; 

8 (4) making it easier for consumers to pay an 

9 attorney for counsel or representation in a bank10 ruptcy case; 

11 (5) simplifying the identification and treatment 

12 of cases by expanding the number of routine cases 

13 that are handled by the court in which there is no 

14 chance of a reasonable payment to creditors and re15 ducing paperwork requirements in those routine 

16 cases; 

17 (6) allowing the modification of mortgages on 

18 all residences; 

19 (7) allowing the modification of car loans based 

20 on the market value of a car; 

21 (8) allowing the discharge of student loan debt 

22 on equal terms with most other types of debt; 

23 (9) reducing racial, gender, and other harmful 

24 disparities in the availability, accessibility, costs, and 

25 outcomes with respect to the bankruptcy process; 


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1 (10) ensuring the fair treatment of claimants 

2 for domestic support obligations; 

3 (11) reducing abusive creditor behavior; and 

4 (12) closing bankruptcy loopholes that allow the 

5 wealthy to exploit the bankruptcy process. 

6 SEC. 102. CHAPTER 10 INDIVIDUAL BANKRUPTCY. 

7 (a) IN GENERAL.—Title 11, United States Code, is 

8 amended by inserting after section 946 the following: 

9 ‘‘CHAPTER 10—INDIVIDUAL BANKRUPTCY 

‘‘SUBCHAPTER I—GENERAL PROVISIONS

‘‘Sec. 

‘‘1001. Trustee. 

‘‘1002. Rights and powers of debtor. 

‘‘1003. Debtor engaged in business. 

‘‘1004. Possession of property of the estate. 

‘‘1005. Conversion or dismissal. 

‘‘1006. Treatment of certain contracts and leases. 

‘‘1007. Treatment of rental-purchase agreements. 

‘‘1008. Obtaining credit. 

‘‘1009. Stay of action against codebtor. 

‘‘1010. Interpretive principle. 

‘‘SUBCHAPTER II—PLANS

‘‘1021. Filing of plans. 

‘‘1022. Contents of plans. 

‘‘1023. Plan confirmation hearing. 

‘‘1024. Confirmation of plans. 

‘‘1025. Payments under a repayment plan. 

‘‘1026. Payments under a residence plan or property plan. 

‘‘1027. Protection of lessors and purchase money lenders. 

‘‘1028. Effect of confirmation. 

‘‘1029. Modification of repayment plan. 

‘‘SUBCHAPTER III—DISCHARGE

‘‘1031. Discharge; scope and timing. 

‘‘1032. Revocation of discharge or order of confirmation. 

‘‘SUBCHAPTER IV—AVOIDANCE ACTIONS

‘‘1041. Treatment of certain liens. 

‘‘1042. Limitations on avoidance actions. 

‘‘SUBCHAPTER V—LIMITED PROCEEDINGS


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‘‘1051. Election of limited proceeding. 

‘‘1052. Effect of limited proceeding. 

‘‘1053. Dismissal or conversion of limited proceedings. 

1 ‘‘SUBCHAPTER I—GENERAL PROVISIONS 

2 ‘‘§ 1001. Trustee 

3 ‘‘(a) APPOINTMENT.—Except as provided by section 

4 1052, in a case under this chapter, the United States 

5 trustee— 

6 ‘‘(1) shall appoint 1 disinterested individual to 

7 serve as trustee from the panel of private trustees 

8 under section 586(a) of title 28 or a standing trust9 ee under subsection (b) of that section who meets 

10 the requirements of a trustee under section 522 of 

11 this title; or 

12 ‘‘(2) may serve as trustee. 

13 ‘‘(b) DUTIES.—The trustee shall— 

14 ‘‘(1) perform the duties required under para15 graphs (2) through (5) and (7) of section 704; 

16 ‘‘(2) appear and be heard at any hearing that 

17 concerns— 

18 ‘‘(A) the value of property subject to a 

19 lien; or 

20 ‘‘(B) confirmation of a repayment plan, a 

21 residence plan, or a property plan; 

22 ‘‘(3) advise, other than on legal matters, and 

23 assist the debtor in the formulation of, and perform24 ance under, any plan; 


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1 ‘‘(4) ensure that the debtor commences making 

2 timely payments under section 1025; 

3 ‘‘(5) in the case of a debtor against whom there 

4 is a claim for a domestic support obligation, provide 

5 the notices required under subsection (d); and 

6 ‘‘(6) in the case of a debtor engaged in business 

7 as described in section 1003(a), perform the duties 

8 required under paragraphs (3) and (4) of section 

9 1106(a). 

10 ‘‘(c) PROHIBITIONS.—The trustee may not— 

11 ‘‘(1) serve as an advocate for debtors or credi12 tors; 

13 ‘‘(2) advise debtors or creditors on legal mat14 ters; or 

15 ‘‘(3) raise an objection to a plan filed under 

16 section 1021 solely on the basis of the treatment of 

17 a secured claim under the plan. 

18 ‘‘(d) DOMESTIC SUPPORT CLAIM NOTICE.— 

19 ‘‘(1) DEFINITION OF STATE OR LOCAL CHILD

20 SUPPORT ENFORCEMENT AGENCY.—In this sub21 section, the term ‘State or local child support en22 forcement agency’ means any agency of a State or 

23 political subdivision thereof operating pursuant to a 

24 plan described in section 454 of the Social Security 

25 Act (42 U.S.C. 654) that has been approved by the 


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1 Secretary of Health and Human Services under part 

2 D of title IV of such Act (42 U.S.C. 651 et seq.). 

3 ‘‘(2) ADDITIONAL DUTIES.—In the case of a 

4 debtor against whom there is a claim for a domestic 

5 support obligation, the trustee shall— 

6 ‘‘(A) provide written notice of the claim to 

7 the holder of the domestic support obligation 

8 that includes— 

9 ‘‘(i) a notice of the right of the holder 

10 to use the services of a State or local child 

11 support enforcement agency for assistance 

12 in collecting child support during and after 

13 the case; and 

14 ‘‘(ii) the address and telephone num15 ber of the State or local child support en16 forcement agency of the State or political 

17 subdivision thereof in which the holder re18 sides; 

19 ‘‘(B) provide written notice of the claim to 

20 the State or local child support enforcement 

21 agency of the State or political subdivision 

22 thereof in which the holder resides that includes 

23 the name, address, and telephone number of the 

24 holder of the domestic support obligation; and 


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1 ‘‘(C) on the date on which the debtor is 

2 granted a discharge under section 1031, provide 

3 written notice to the holder of the domestic sup4 port obligation and the State or local child sup5 port enforcement agency of the State or polit6 ical subdivision thereof in which the holder re7 sides of— 

8 ‘‘(i) the granting of the discharge; 

9 ‘‘(ii) the most recent known address 

10 of the debtor; 

11 ‘‘(iii) the most recent known name 

12 and address of the most recent known em13 ployer of the debtor; and 

14 ‘‘(iv) the name of each creditor that 

15 holds a claim that is not discharged under 

16 paragraph (2) or (4) of section 523(a). 

17 ‘‘(3) ADDRESS REQUEST.— 

18 ‘‘(A) IN GENERAL.—The holder of a claim 

19 for domestic support against the debtor or a 

20 State or local child support enforcement agency 

21 of the State or political subdivision thereof in 

22 which the holder resides may request from a 

23 creditor described in paragraph (2)(C)(iv) the 

24 most recent known address of the debtor. 


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1 ‘‘(B) NO LIABILITY.—Notwithstanding any 

2 other provision of law, a creditor that makes a 

3 disclosure in connection with a request made 

4 under subparagraph (A) shall not be liable for 

5 making the disclosure. 

6 ‘‘§ 1002. Rights and powers of debtor 

7 ‘‘(a) IN GENERAL.—Subject to any limitations of a 

8 trustee under this chapter, the debtor shall have, exclusive 

9 of the trustee, the rights and powers of a trustee under— 

10 ‘‘(1) subsections (b), (c), (d), (f), and (l) of sec11 tion 363; and 

12 ‘‘(2) section 364. 

13 ‘‘(b) AVOIDANCE OF TRANSFERS.—The debtor may 

14 avoid a transfer of property of the debtor or recover a 

15 setoff if— 

16 ‘‘(1)(A) the transfer is avoidable by the trustee 

17 under section 544, 545, 547, 548, 549, or 1041 or 

18 recoverable by the trustee under section 553; and 

19 ‘‘(B) the trustee does not attempt to avoid the 

20 transfer; or 

21 ‘‘(2) section 1042 prohibits the trustee from 

22 avoiding the transfer. 

23 ‘‘§ 1003. Debtor engaged in business 

24 ‘‘(a) IN GENERAL.—For the purposes of this chapter, 

25 a debtor is engaged in business if the debtor is— 


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1 ‘‘(1) self-employed; and 

2 ‘‘(2) required to withhold taxes under section 

3 3402 of the Internal Revenue Code of 1986. 

4 ‘‘(b) RIGHTS.—Unless the court orders otherwise, a 

5 debtor engaged in business may operate the business of 

6 the debtor and, subject to any limitations on a trustee 

7 under sections 363(c) and 364 and to such limitations or 

8 conditions as the court prescribes, shall have, exclusive of 

9 the trustee, the rights and powers of the trustee under 

10 such sections. 

11 ‘‘(c) DUTIES.—A debtor engaged in business— 

12 ‘‘(1) shall perform the duties of the trustee re13 quired under section 704(7); and 

14 ‘‘(2) is not subject to the provisions of section 

15 308. 

16 ‘‘§ 1004. Possession of property of the estate 

17 ‘‘The debtor shall remain in possession of all property 

18 of the estate, unless— 

19 ‘‘(1) a confirmed plan or an order confirming a 

20 plan provides otherwise; or 

21 ‘‘(2) the court, for cause, orders otherwise. 

22 ‘‘§ 1005. Conversion or dismissal 

23 ‘‘(a) CONVERSION ON REQUEST OF DEBTOR.—At 

24 any time, the debtor may convert a case under this chapter 

25 to a case under— 


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1 ‘‘(1) chapter 11, if the debtor is eligible under 

2 section 109(e); or 

3 ‘‘(2) chapter 12, if the debtor is eligible under 

4 section 109(f). 

5 ‘‘(b) CONVERSION OR DISMISSAL ON REQUEST OF

6 OTHER PARTIES.—After notice and a hearing, the court, 

7 on its own motion, or on a motion by a creditor, the 

8 United States trustee, the trustee, or any other party in 

9 interest, may, for cause, dismiss a case under this chapter 

10 or, with the consent of the debtor, convert a case under 

11 this chapter to a case under chapter 11 or 12, including— 

12 ‘‘(1) unreasonable delay by the debtor that is 

13 prejudicial to creditors; 

14 ‘‘(2) nonpayment of any fees or costs required 

15 under section 1930 of title 28; 

16 ‘‘(3) failure to timely file a plan under section 

17 1021, unless the debtor is eligible for a discharge 

18 without a plan under section 1031; 

19 ‘‘(4) failure to commence making timely pay20 ments required under section 1025 if the debtor files 

21 a repayment plan; 

22 ‘‘(5) denial of confirmation of a plan under sec23 tion 1024 and denial of a request for additional time 

24 for filing another plan; 


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1 ‘‘(6) except as provided by section 1052(8), and 

2 only on request of the United States trustee, failure 

3 of the debtor in a voluntary case to file, not later 

4 than 14 days after the date of the commencement of 

5 the case, or additional time as the court may allow, 

6 the information required under section 521(a)(1); 

7 and 

8 ‘‘(7) failure to file a repayment plan, if re9 quired, by the deadline prescribed under section 

10 1021(e). 

11 ‘‘(c) DISMISSAL.— 

12 ‘‘(1) DISMISSAL FOR MANIFESTLY IMPROPER

13 USE OF THE BANKRUPTCY SYSTEM.— 

14 ‘‘(A) IN GENERAL.—Notwithstanding sub15 section (b), after notice and a hearing, the 

16 court, on its own motion or on a motion by the 

17 United States trustee or the trustee, may dis18 miss a case on grounds that the granting of re19 lief would be a manifestly improper use of the 

20 bankruptcy system. 

21 ‘‘(B) MANIFESTLY IMPROPER USE OF THE

22 BANKRUPTCY SYSTEM.—For the purpose of 

23 subparagraph (A), the failure of a debtor to pay 

24 an amount that is greater than the minimum 

25 payment obligation under a repayment plan 


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1 alone does not constitute a manifestly improper 

2 use of the bankruptcy system. 

3 ‘‘(2) DISMISSAL AT REQUEST OF DEBTOR.— 

4 ‘‘(A) IN GENERAL.—At the request of the 

5 debtor, at any time, the court shall dismiss a 

6 case under this chapter if the case has not been 

7 converted under subsection (a). 

8 ‘‘(B) WAIVER UNENFORCEABLE.—A waiv9 er of the right to dismiss a case under this sec10 tion is unenforceable. 

11 ‘‘§ 1006. Treatment of certain contracts and leases 

12 ‘‘Notwithstanding a provision in any contract or un13 expired lease, or in applicable law, with respect to any con14 tract or unexpired lease of the debtor, the contract or lease 

15 and any right or obligation under the contract or lease 

16 may not be terminated or modified, and neither the debtor 

17 nor any individual liable on such contract or unexpired 

18 lease with the debtor may be declared in default under 

19 the contract or lease at any time during or after the case, 

20 solely because of a provision in the contract or lease that 

21 is conditioned on— 

22 ‘‘(1) the insolvency or financial condition of the 

23 debtor at any time before the closing of the case; 

24 ‘‘(2) the commencement of a case under this 

25 title; 


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1 ‘‘(3) the appointment of, or taking possession 

2 by— 

3 ‘‘(A) a trustee in a case under this title; or 

4 ‘‘(B) a custodian before the commence5 ment of a case under this title; or 

6 ‘‘(4) the filing of a plan or the exercise of any 

7 other right under this title. 

8 ‘‘§ 1007. Treatment of rental-purchase agreements 

9 ‘‘(a) DEFINITION OF RENTAL-PURCHASE AGREE10 MENT.—In this section, the term ‘rental-purchase agree11 ment’ means an agreement, irrespective of form— 

12 ‘‘(1) for the use of personal property, other 

13 than a vehicle, by the debtor for personal, family, or 

14 household purposes; 

15 ‘‘(2) that is renewable with each payment; and 

16 ‘‘(3) that permits, but does not obligate, the 

17 debtor to become the owner of the property that is 

18 the subject of the agreement. 

19 ‘‘(b) NO INTEREST IN PROPERTY.—For the purpose 

20 of this chapter and notwithstanding applicable nonbank21 ruptcy law, the lessor on a rental-purchase agreement does 

22 not have an interest in the property covered by the rental23 purchase agreement. 

24 ‘‘(c) ELECTION TO RETAIN PROPERTY.—Notwith25 standing section 365 and subject to subsection (d), in a 


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1 case under this chapter, the debtor may elect to retain 

2 the property covered by a rental-purchase agreement. 

3 ‘‘(d) CLAIMS OF LESSOR-SELLER.—Notwithstanding 

4 section 365 and subject to section 502, if the debtor elects 

5 to retain the property covered by a rental-purchase agree6 ment, the lessor-seller shall have a claim for the sum of— 

7 ‘‘(1) accrued and unpaid rent under the rental8 purchase agreement; and 

9 ‘‘(2) if the debtor has elected to become owner 

10 of the property under the rental-purchase agree11 ment, future rent and other payments due under the 

12 rental-purchase agreement. 

13 ‘‘(e) TERMINATION.—Nothing in this section shall be 

14 construed to prohibit the debtor from terminating a rent15 al-purchase agreement. 

16 ‘‘(f) POST-DISCHARGE EXERCISE OF LESSOR-SELL17 ER’S RIGHTS PROHIBITED.—Any attempt to exercise the 

18 rights of a lessor-seller under a rental-purchase agreement 

19 or applicable nonbankruptcy law after the issuance of a 

20 discharge under section 1028 shall be deemed to be a vio21 lation of section 524(a). 

22 ‘‘§ 1008. Obtaining credit 

23 ‘‘(a) DEFINITION OF CREDIT.—In this section, the 

24 term ‘credit’ has the meaning given the term in section 

25 103 of the Truth in Lending Act (15 U.S.C. 1602). 


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1 ‘‘(b) OBTAINING CREDIT.— 

2 ‘‘(1) IN GENERAL.—The debtor in a case under 

3 this chapter may not obtain credit outside the ordi4 nary course of the affairs of the debtor without prior 

5 authorization by the court. 

6 ‘‘(2) COURT APPROVAL.—After notice and a 

7 hearing, the court may authorize the debtor to ob8 tain credit under paragraph (1) or incur debt only 

9 if it is in the best interests of the debtor. 

10 ‘‘(3) VOIDING OF OTHER POST-PETITION CRED11 IT INCURRED.—Any credit obtained or debt incurred 

12 by a debtor not in accordance with this subsection 

13 is void. 

14 ‘‘(4) CREDIT RATE LIMIT.—In no event may 

15 the court authorize the debtor to obtain credit with 

16 an annual percentage rate that exceeds the annual 

17 percentage rate described in section 987(b) of title 

18 10. 

19 ‘‘(5) COMPLIANCE WITH NONBANKRUPTCY

20 LAW.—Credit obtained by a debtor pursuant to this 

21 section shall comply with applicable nonbankruptcy 

22 law. 

23 ‘‘(c) APPLICATION OF SECTION.—This section shall 

24 apply to credit obtained by a debtor until the date on 

25 which the case is closed under section 350. 


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1 ‘‘§ 1009. Stay of action against codebtor 

2 ‘‘(a) COLLECTION OF DEBT.—Except as provided in 

3 subsections (b) and (c) of this section, after the entry of 

4 the order for relief under this chapter, a creditor may not 

5 act or commence or continue any civil action to collect all 

6 or any part of a consumer debt of the debtor from any 

7 individual that is liable on the consumer debt with the 

8 debtor or that secured the consumer debt, unless— 

9 ‘‘(1) the individual became liable on, or secured, 

10 the consumer debt in the ordinary course of business 

11 of the individual; or 

12 ‘‘(2) the case is closed, dismissed, or converted 

13 to a case under chapter 11 or 12 of this title. 

14 ‘‘(b) NEGOTIABLE INSTRUMENTS.—A creditor may 

15 present a negotiable instrument, and may give notice of 

16 dishonor of such an instrument. 

17 ‘‘(c) RELIEF FROM STAY.—On request of a party in 

18 interest and after notice and a hearing, the court shall 

19 grant relief from the stay provided under subsection (a) 

20 with respect to a creditor, to the extent that— 

21 ‘‘(1) as between the debtor and the individual 

22 protected under subsection (a), the individual re23 ceived consideration for the claim held by the cred24 itor; 

25 ‘‘(2) the plan filed by the debtor does not pro26 pose to pay the claim; or 


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1 ‘‘(3) the interest of the creditor would be irrep2 arably harmed by a continuation of the stay. 

3 ‘‘(d) TERMINATION OF STAY.—On the date that is 

4 20 days after the date on which a party in interest files 

5 a request under subsection (c) for relief from the stay pro6 vided under subsection (a), the stay shall be terminated 

7 with respect to the party in interest, unless the debtor or 

8 any individual that is liable on the consumer debt with 

9 the debtor files and serves upon the party in interest a 

10 written objection to the proposed relief from the stay. 

11 ‘‘§ 1010. Interpretive principle 

12 ‘‘In cases under this chapter, the provisions of this 

13 title shall be interpreted liberally in favor of relief for con14 sumer debtors. 

15 ‘‘SUBCHAPTER II—PLANS 

16 ‘‘§ 1021. Filing of plans 

17 ‘‘(a) IN GENERAL.—Except as provided in subsection 

18 (c), the debtor may file— 

19 ‘‘(1) a repayment plan that solely provides for 

20 the treatment of unsecured claims; 

21 ‘‘(2) a residence plan that solely provides for 

22 the treatment of claims secured by the debtor’s prin23 cipal residence; or 


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1 ‘‘(3) a property plan that solely provides for the 

2 treatment of claims secured by property that is not 

3 the debtor’s principal residence. 

4 ‘‘(b) MULTIPLE PLANS.— 

5 ‘‘(1) IN GENERAL.— 

6 ‘‘(A) MORE THAN 1 PLAN.—Subject to 

7 subparagraph (B), the debtor may file 1 or 

8 more plans. 

9 ‘‘(B) PROHIBITION.—If the court confirms 

10 a repayment plan of a debtor, the debtor may 

11 not file an additional repayment plan in a case 

12 under this chapter. 

13 ‘‘(2) SEPARATE TREATMENT.—Except as pro14 vided in section 1023(a), each plan shall be treated 

15 separately for purposes of confirmation, discharge, 

16 and revocation of an order of confirmation or dis17 charge. 

18 ‘‘(c) INVOLUNTARY CASES.—In a case commenced 

19 under section 303— 

20 ‘‘(1) a petitioning creditor may file only a re21 payment plan under which the minimum payment 

22 obligation of the debtor shall be calculated to ex23 clude any amounts required by clause (ii) or (iii) of 

24 section 101(54)(B); 


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1 ‘‘(2) the debtor may file a repayment plan, 

2 which shall supersede any repayment plan filed 

3 under paragraph (1); and 

4 ‘‘(3) if more than 1 petitioning creditor files a 

5 repayment plan under paragraph (1) and the debtor 

6 does not file a repayment plan under paragraph (2), 

7 the court shall confirm the repayment plan that is 

8 in the best interest of creditors. 

9 ‘‘(d) DISCHARGE WITHOUT A PLAN.—A debtor with 

10 a minimum payment obligation of $0 shall receive a dis11 charge under section 1031 without filing a plan if the 

12 debtor is otherwise eligible to receive a discharge under 

13 this chapter. 

14 ‘‘(e) FILING DEADLINE.—The debtor shall promptly 

15 file a plan within such period of time as permitted in a 

16 rule prescribed by the Judicial Conference of the United 

17 States, except that the court may extend such time period 

18 for cause. 

19 ‘‘§ 1022. Contents of plans 

20 ‘‘(a) REPAYMENT PLANS.— 

21 ‘‘(1) IN GENERAL.—A repayment plan— 

22 ‘‘(A) shall provide that— 

23 ‘‘(i) the debtor shall satisfy the min24 imum payment obligation by— 


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1 ‘‘(I) making deferred cash pay2 ments; or 

3 ‘‘(II) upon request of the trustee, 

4 and subject to paragraph (2), ten5 dering to the trustee all property of 

6 the estate that is not exempt under 

7 section 522 not later than 30 days 

8 after the date on which the court con9 firms the plan, unless the court orders 

10 a later date; 

11 ‘‘(ii) any payments under the repay12 ment plan occur during a period not to ex13 ceed 36 months from the date on which 

14 the first payment is due under a repay15 ment plan under section 1025(b)(1); and 

16 ‘‘(iii) any payment under a repayment 

17 plan, other than the final payment, shall 

18 be in an amount that is not less than the 

19 payments required for 36 equal monthly 

20 installments, unless the court orders other21 wise for cause, which may include the ir22 regular or seasonal nature of the debtor’s 

23 income; and 

24 ‘‘(B) may— 


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•S 4991 IS

1 ‘‘(i) pursuant to section 365, provide 

2 for the assumption, rejection, or assign3 ment of any executory contract or unex4 pired lease of the debtor that has not pre5 viously been assumed or rejected under 

6 that section; 

7 ‘‘(ii) provide for the payment in full, 

8 in deferred cash payments, over the dura9 tion of the repayment plan, of any claim 

10 based on a debt of a kind described in sec11 tion 523 if the plan also provides for the 

12 payment in full, in deferred cash pay13 ments, of all claims entitled to priority 

14 under section 507, other than the claim of 

15 a holder that is based on a debt described 

16 in section 507 that agrees to a different 

17 treatment of that claim; 

18 ‘‘(iii) provide for the exercise of any 

19 other power of the debtor or the trustee 

20 under this title; 

21 ‘‘(iv) provide for an order garnishing 

22 the earnings of the debtor or ordering the 

23 authorization of electronic fund transfers 

24 from a deposit account of the debtor durVerDate Sep 11 2014 20:26 Dec 29, 2020 Jkt 019200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S4991.IS S4991

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•S 4991 IS

1 ing the duration of the repayment plan; 

2 and 

3 ‘‘(v) include any other appropriate 

4 provision not inconsistent with this title. 

5 ‘‘(2) REQUEST FOR TENDER BY TRUSTEE.— 

6 ‘‘(A) IN GENERAL.—The trustee shall re7 quest the tender of property of the estate that 

8 is not exempt under section 522 only if the liq9 uidation of such property would be reasonably 

10 likely to produce a meaningful distribution to 

11 creditors. 

12 ‘‘(B) INSTALLMENT REDEMPTION AS AN

13 ALTERNATIVE TO TENDER.—In lieu of ten14 dering nonexempt property of the estate under 

15 paragraph (1)(A)(i)(II), the debtor may elect to 

16 pay to the trustee under the repayment plan an 

17 amount equal to the value of the interest of the 

18 debtor in such property that is in excess of the 

19 sum of— 

20 ‘‘(i) any allowed secured claims that 

21 are secured by that property; and 

22 ‘‘(ii) any exemption applicable under 

23 section 522(b). 

24 ‘‘(b) RESIDENCE PLANS.—A residence plan may— 


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•S 4991 IS

1 ‘‘(1) modify or leave unaffected the rights of a 

2 holder of a claim secured by the debtor’s principal 

3 residence; 

4 ‘‘(2) provide for the waiving or curing within a 

5 reasonable time of any default on any claim secured 

6 by the debtor’s principal residence in accordance 

7 with subsection (d); 

8 ‘‘(3) provide for payment of any allowed se9 cured claim secured by the debtor’s principal resi10 dence; 

11 ‘‘(4) authorize the debtor to sell any property 

12 that is the debtor’s principal residence free and clear 

13 of any liens not earlier than 60 days and not later 

14 than 180 days after the date of confirmation if the 

15 plan provides that— 

16 ‘‘(A) the debtor shall tender the property 

17 that is the debtor’s principal residence to the 

18 holder of the first-priority lien, subject to a lien 

19 secured by any allowed secured claim of a jun20 ior lienholder; 

21 ‘‘(B) upon acceptance of the tender de22 scribed in subparagraph (A), the debtor shall 

23 transfer the debtor’s principal residence to the 

24 holder of the first-priority lien not later than 14 

25 days after acceptance of the tender; and 


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•S 4991 IS

1 ‘‘(C) if there is not a timely acceptance of 

2 the tender of the principal residence— 

3 ‘‘(i) a sale free and clear of liens of 

4 the debtor’s principal residence shall be 

5 conducted in a commercially reasonable 

6 manner; and 

7 ‘‘(ii) after deducting the costs of the 

8 sale, any liens against the debtor’s prin9 cipal residence shall attach to the proceeds 

10 of the sale; 

11 ‘‘(5) provide for an order garnishing the earn12 ings of the debtor or authorizing electronic fund 

13 transfers from a deposit account of the debtor dur14 ing the duration of the residence plan, but only to 

15 the extent necessary to cure any default on a claim 

16 secured by the debtor’s principal residence in accord17 ance with subsection (d); and 

18 ‘‘(6) include any other appropriate provision not 

19 inconsistent with this title. 

20 ‘‘(c) PROPERTY PLANS.—A property plan may— 

21 ‘‘(1) modify or leave unaffected the rights of 

22 holders of claims secured by the property, other than 

23 property that is the debtor’s principal residence; 

24 ‘‘(2) provide for the curing or waiving within a 

25 reasonable time of any default on any claim secured 


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•S 4991 IS

1 by the property of the debtor that is not the debtor’s 

2 principal residence in accordance with subsection 

3 (d)(2); 

4 ‘‘(3) provide for payment of any allowed se5 cured claim secured by the property of the debtor 

6 that is not the debtor’s principal residence; 

7 ‘‘(4) subject to section 522(e), treat as the 

8 holder of a secured claim— 

9 ‘‘(A) the seller or assignee of an install10 ment sales contract for personal property or the 

11 equivalent of such a contract; 

12 ‘‘(B) the lessor of a lease of personal prop13 erty, the term of which extends beyond the re14 maining economic life of the property; or 

15 ‘‘(C) a party to an agreement, irrespective 

16 of form, that is a security interest in personal 

17 property under applicable nonbankruptcy law; 

18 ‘‘(5) provide for an order garnishing the earn19 ings of the debtor or ordering the authorization of 

20 electronic fund transfers from a deposit account of 

21 the debtor during the duration of the property plan; 

22 and 

23 ‘‘(6) include any other appropriate provision not 

24 inconsistent with this title. 

25 ‘‘(d) CURE OF DEFAULT.— 


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•S 4991 IS

1 ‘‘(1) PRINCIPAL RESIDENCE.—Notwithstanding 

2 any applicable nonbankruptcy law, a default with re3 spect to, or that gives rise to, a lien on the property 

4 that is the debtor’s principal residence may be cured 

5 by a residence plan under subsection (a)(2)(B) until 

6 the debtor ceases to have rights, including a right of 

7 redemption, in the property. 

8 ‘‘(2) AMOUNT TO CURE.— 

9 ‘‘(A) IN GENERAL.—Notwithstanding sec10 tion 506(b), if a repayment plan, a residence 

11 plan, or a property plan provides for the curing 

12 of a default, the amount necessary to cure the 

13 default shall be determined in accordance with 

14 the underlying agreement and applicable non15 bankruptcy law. 

16 ‘‘(B) PROHIBITION.—The cure of a default 

17 under subparagraph (A) may not require— 

18 ‘‘(i) interest on arrearages; or 

19 ‘‘(ii) the payment of any penalty rate, 

20 late fee, or payment required under a pen21 alty provision or a similar provision. 

22 ‘‘§ 1023. Plan confirmation hearing 

23 ‘‘(a) IN GENERAL.—If the trustee, the United States 

24 trustee, or a creditor objects to confirmation of a plan filed 

25 under section 1021, the court shall hold a hearing on conVerDate Sep 11 2014 20:26 Dec 29, 2020 Jkt 019200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S4991.IS S4991

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•S 4991 IS

1 firmation of the plan within such period of time as per2 mitted in a rule prescribed by the Judicial Conference of 

3 the United States, except that the court may extend such 

4 time period for cause. 

5 ‘‘(b) CONFIRMATION WITHOUT HEARING.—If no ob6 jection is raised, the court shall, upon notice, promptly 

7 confirm a plan that complies with section 1024(a) without 

8 a hearing. 

9 ‘‘(c) MULTIPLE PLANS.—If the debtor files more 

10 than 1 plan under section 1021, the court shall hold a 

11 single hearing on confirmation on all of the plans, un12 less— 

13 ‘‘(1) the court orders otherwise for cause; or 

14 ‘‘(2) no hearing is required under subsection 

15 (b). 

16 ‘‘§ 1024. Confirmation of plans 

17 ‘‘(a) PLAN REQUIREMENTS.—Subject to subsections 

18 (b) through (d), the court shall confirm a plan under this 

19 section if all of the following requirements are met: 

20 ‘‘(1) The plan complies with the applicable pro21 visions of this title, other than section 1022(a)(1). 

22 ‘‘(2) Any fee, charge, or amount that is re23 quired to be paid before confirmation under chapter 

24 123 of title 28 or the plan has been paid. 

25 ‘‘(3) The plan has not been proposed— 


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•S 4991 IS

1 ‘‘(A) in bad faith, which may not be dem2 onstrated solely by the amount of payments 

3 proposed by the debtor under a repayment plan; 

4 or 

5 ‘‘(B) by any means forbidden by law. 

6 ‘‘(4) The debtor is likely to be able to make all 

7 payments under the plan and to comply with the 

8 plan. 

9 ‘‘(5) In the case of a debtor that is required by 

10 a judicial or administrative order or by a statute to 

11 pay a domestic support obligation, the debtor has 

12 paid all amounts required by such domestic support 

13 obligation that first became payable after the date of 

14 the filing of the petition. 

15 ‘‘(6) Any compensation paid under the plan to 

16 the attorney of the debtor is reasonable and satisfies 

17 the requirements of section 329(c). 

18 ‘‘(b) OBJECTION TO REPAYMENT PLAN.—If the 

19 trustee or the holder of an allowed unsecured claim objects 

20 to a repayment plan that complies with subsection (a), the 

21 court shall confirm the repayment plan only if— 

22 ‘‘(1) the plan satisfies the requirements of sec23 tion 1022(a)(1); or 

24 ‘‘(2) the court finds that, because of cir25 cumstances that the debtor cannot reasonably avoid, 


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•S 4991 IS

1 the debtor is justly excused from satisfying all or 

2 part of the requirements of section 1022(a)(1). 

3 ‘‘(c) OBJECTION TO RESIDENCE PLAN.—If the hold4 er of an allowed secured claim secured by the debtor’s 

5 principal residence objects to the confirmation of a resi6 dence plan, the court shall confirm the residence plan only 

7 if, for any such allowed secured claim of which the holder 

8 has objected to the confirmation, the residence plan pro9 vides that— 

10 ‘‘(1) the holder retains the lien securing the 

11 claim; 

12 ‘‘(2) the value, as of the effective date of the 

13 residence plan, of the payments to be distributed 

14 under the residence plan on account of the claim is 

15 not less than the allowed amount of the secured 

16 claim; 

17 ‘‘(3) payments on all claims under the residence 

18 plan are in equal monthly amounts, other than pay19 ments to cure a default under section 

20 1022(a)(2)(B); 

21 ‘‘(4) except as provided in paragraph (5), de22 fault under the residence plan constitutes default 

23 under any security agreement that creates a security 

24 interest in the debtor’s principal residence; 


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•S 4991 IS

1 ‘‘(5) the debtor will be in default for a late pay2 ment under the plan and any security agreement 

3 that creates a security interest in the debtor’s prin4 cipal residence only if the debtor is more than 120- 

5 days delinquent on any payment under the residence 

6 plan; 

7 ‘‘(6) the holders of any judicial lien or statutory 

8 lien created before the order for relief cannot exer9 cise any remedies under applicable nonbankruptcy 

10 law, unless the debtor is 120-days delinquent on any 

11 payment under the residence plan; 

12 ‘‘(7) the last payment on account of the secured 

13 claim is due on a date that is not later than the 

14 later of— 

15 ‘‘(A) 15 years after the date of confirma16 tion of the residence plan; or 

17 ‘‘(B) 5 years after the original maturity 

18 date of the loan relating to the claim; and 

19 ‘‘(8) the debt secured by the debtor’s principal 

20 residence that is dealt with by the residence plan has 

21 not been previously provided for by a residence plan 

22 that was— 

23 ‘‘(A) confirmed on a date that is not more 

24 than 6 years before the date of the filing of the 

25 petition; and 


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•S 4991 IS

1 ‘‘(B) completed. 

2 ‘‘(d) OBJECTION TO PROPERTY PLAN.—If the holder 

3 of an allowed secured claim that is secured by property 

4 that is not the debtor’s principal residence objects to the 

5 confirmation of a property plan, the court shall confirm 

6 the property plan only if— 

7 ‘‘(1) the property plan provides that— 

8 ‘‘(A) the holder of the claim retains the 

9 lien securing the allowed secured claim; 

10 ‘‘(B) the value, as of the effective date of 

11 the property plan, of the property to be distrib12 uted under the property plan on account of the 

13 claim is not less than the amount of the allowed 

14 secured claim, unless— 

15 ‘‘(i) the property securing the claim is 

16 a motor vehicle that was acquired by the 

17 debtor within the 90-day period imme18 diately preceding the date of the filing of 

19 the petition; and 

20 ‘‘(ii) the lien securing the claim is a 

21 purchase-money security interest; 

22 ‘‘(C) the value, as of the effective date of 

23 the property plan, of property to be distributed 

24 on account of a claim described in clauses (i) 

25 through (iii) of subparagraph (B) is not less 


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•S 4991 IS

1 than the allowed amount of the claim, as cal2 culated under section 502; 

3 ‘‘(D) payments on all claims under the 

4 property plan are in equal monthly amounts; 

5 ‘‘(E) except as provided in subparagraph 

6 (F), default under the property plan constitutes 

7 default under any security agreement that cre8 ates a security interest in the property subject 

9 to the property plan; 

10 ‘‘(F) the debtor is in default for a late pay11 ment under the plan and any security agree12 ment that creates a security interest in the 

13 property subject to the property plan only if the 

14 debtor is not less than 90 days delinquent on 

15 payment to the holder of the security interest 

16 under the property plan; 

17 ‘‘(G) the property plan provides that the 

18 holder of a judicial lien or statutory lien created 

19 before the date of the order for relief cannot ex20 ercise any remedies relating to the judicial lien 

21 or statutory lien under applicable nonbank22 ruptcy law, unless the debtor is not less than 90 

23 days delinquent on any payment to the 

24 lienholder under the property plan; 


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•S 4991 IS

1 ‘‘(H) the last payment due under the prop2 erty plan is due on a date that is not later than 

3 the later of— 

4 ‘‘(i) 5 years after the date of con5 firmation of the property plan; or 

6 ‘‘(ii) the original maturity date of 

7 loan; and 

8 ‘‘(I) the debt secured by the property that 

9 is dealt with by the property plan has not been 

10 previously provided for by a property plan that 

11 was— 

12 ‘‘(i) confirmed on a date that is not 

13 more than 6 years before the date of the 

14 filing of the petition; and 

15 ‘‘(ii) completed; 

16 ‘‘(2) if the property securing the claim of the 

17 objecting holder is a motor vehicle— 

18 ‘‘(A) the debtor has provided the holder of 

19 any security interest in the motor vehicle with 

20 reasonable evidence of the maintenance of any 

21 required insurance coverage on the motor vehi22 cle securing the claim sufficient to protect the 

23 interest of the holder in the motor vehicle; and 

24 ‘‘(B) the motor vehicle is— 


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•S 4991 IS

1 ‘‘(i) used regularly as a means of 

2 transportation for the debtor or a depend3 ent of the debtor; or 

4 ‘‘(ii) used by the debtor or a depend5 ent of the debtor in business; and 

6 ‘‘(3) if the property securing the claim of the 

7 objecting holder is not a motor vehicle— 

8 ‘‘(A) the property is reasonably necessary 

9 for the support or maintenance of the debtor or 

10 a dependent of the debtor; or 

11 ‘‘(B) the property is reasonably necessary 

12 for the continuation, preservation, and oper13 ation of a business owned or operated by the 

14 debtor or a dependent of the debtor. 

15 ‘‘(e) IMPAIRMENT.— 

16 ‘‘(1) IN GENERAL.—The holder of an allowed 

17 secured claim that is not impaired under a plan may 

18 not object to a residence plan under subsection (c) 

19 or a property plan under subsection (d). 

20 ‘‘(2) DETERMINATION.—For the purpose of 

21 this subsection, impairment shall be determined 

22 under section 1124. 

23 ‘‘(f) DENIAL OF MOTION.— 


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•S 4991 IS

1 ‘‘(1) IN GENERAL.—A denial of a motion to 

2 confirm a plan shall constitute a final, appealable 

3 order. 

4 ‘‘(2) PLAN MODIFICATION.—Nothing in this 

5 section shall be construed to prevent a debtor from 

6 proposing to modify a plan that has been denied 

7 confirmation. 

8 ‘‘(g) MULTIPLE PLANS.—If the debtor has filed mul9 tiple plans, any party in interest may request that the con10 firmation of any plan be stayed until the date on which 

11 the court confirms or denies any other plan. 

12 ‘‘(h) INTEREST RATE.—The rate of interest that 

13 shall be used to calculate the value of property distributed 

14 under a plan, as of the effective date of the plan, shall 

15 be— 

16 ‘‘(1) for the purpose of subsection (c)(2)— 

17 ‘‘(A) in the case of a first priority lien, the 

18 current average prime offer rate (as defined in 

19 section 1026.35(a)(2) of title 12, Code of Fed20 eral Regulations) for a loan of the most similar 

21 duration and rate type; and 

22 ‘‘(B) in the case of any other lien, a rate 

23 that is 300 basis points greater than the cur24 rent average prime offer rate (as defined in sec25 tion 1026.35(a)(2) of title 12, Code of Federal 


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•S 4991 IS

1 Regulations) for a loan of the most similar du2 ration and rate type; and 

3 ‘‘(2) for the purpose of subsection (d)(2), the 

4 current average prime offer rate for motor vehicle fi5 nancing of the most similar duration and rate type, 

6 as determined by the Bureau of Consumer Financial 

7 Protection under section 201(e) of the Consumer 

8 Bankruptcy Reform Act of 2020. 

9 ‘‘§ 1025. Payments under a repayment plan 

10 ‘‘(a) DUTIES OF TRUSTEE.—The trustee shall— 

11 ‘‘(1) collect and be accountable for any future 

12 income of the debtor that is designated for a pay13 ment to a creditor under a repayment plan; 

14 ‘‘(2) accept and be accountable for any property 

15 of the estate tendered by the debtor pursuant to a 

16 repayment plan under section 1022(a)(1)(A)(i)(II); 

17 and 

18 ‘‘(3) reduce to money and be accountable for 

19 any property of the estate tendered by the debtor 

20 under the repayment plan as expeditiously as is com21 patible with the best interests of the parties in inter22 est. 

23 ‘‘(b) PAYMENTS.— 

24 ‘‘(1) IN GENERAL.—Except as provided by sec25 tion 1027 and unless the court orders otherwise, not 


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•S 4991 IS

1 later than 30 days after the date of the order for re2 lief under this chapter, the debtor shall— 

3 ‘‘(A) commence making payments in the 

4 amount proposed to be made under a repay5 ment plan; and 

6 ‘‘(B) tender to the trustee any relevant 

7 property of the estate requested by the trustee 

8 under section 1022(a)(1)(A)(i)(II), unless the 

9 debtor has elected under section 1022(a)(2)(B) 

10 to pay the trustee for the value of such prop11 erty under a repayment plan. 

12 ‘‘(2) ACTION BY TRUSTEE.— 

13 ‘‘(A) RETENTION OF PAYMENTS PENDING

14 PLAN CONFIRMATION.—The trustee shall retain 

15 a payment made under paragraph (1) until the 

16 date on which the repayment plan is confirmed 

17 or denied under section 1024. 

18 ‘‘(B) DISTRIBUTION OF PAYMENTS.—If a 

19 repayment plan is confirmed under section 

20 1024, the trustee shall distribute any payments 

21 retained under subparagraph (A) in accordance 

22 with the repayment plan as soon as is prac23 ticable. 

24 ‘‘(C) RETURN OF PAYMENTS.—The trust25 ee, after deducting the sum of each allowed adVerDate Sep 11 2014 20:26 Dec 29, 2020 Jkt 019200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S4991.IS S4991

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•S 4991 IS

1 ministrative expense under section 503(b), shall 

2 return to the debtor any payments retained 

3 under paragraph (1) if the case is dismissed or 

4 converted. 

5 ‘‘(3) MODIFICATION.—Subject to section 363, 

6 pending confirmation of a repayment plan, the 

7 court, after notice and a hearing, may for cause 

8 modify, increase, or reduce the payments required 

9 under this subsection. 

10 ‘‘(c) PAYMENTS TO CREDITORS.— 

11 ‘‘(1) IN GENERAL.—Except as otherwise pro12 vided in the repayment plan or in the order con13 firming the repayment plan, after confirmation of 

14 the plan, the trustee shall make payments to credi15 tors under the repayment plan. 

16 ‘‘(2) PROHIBITION.—Except as provided in sub17 section (d), the trustee may not make a payment de18 scribed in section 1022(a)(1)(B)(ii) under a repay19 ment plan until the date on which the trustee makes 

20 every payment in accordance with any entitlement of 

21 a creditor, including a creditor provided for under 

22 section 1022(a)(1)(B)(ii), to payment under the 

23 minimum payment obligation. 

24 ‘‘(d) PRIORITY OF PAYMENTS.— 


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•S 4991 IS

1 ‘‘(1) IN GENERAL.—Subject to paragraphs (2) 

2 and (3), all payments made by the trustee under this 

3 section shall be disbursed according to the order of 

4 priority in section 726. 

5 ‘‘(2) ADMINISTRATIVE EXPENSES AND FEES.— 

6 Before or at the time of each payment to a creditor 

7 under a repayment plan, the trustee shall pay any 

8 unpaid claim of a kind specified in section 

9 507(a)(2). 

10 ‘‘(3) EXCEPTIONS.—In disbursing payments 

11 under this section, the trustee shall, at the time of 

12 each disbursement, pay— 

13 ‘‘(A) any unpaid claim of the kind de14 scribed in section 507(a)(2); and 

15 ‘‘(B) if a standing trustee appointed under 

16 section 586(b) of title 28 is serving in the case, 

17 the percentage fee fixed for the standing trustee 

18 under section 586(e) of title 28. 

19 ‘‘(4) PROPERTY RECOVERED IN AVOIDANCE AC20 TIONS.—Subject to any exemption allowed under 

21 section 522, the trustee shall disburse any property 

22 the trustee recovers under section 550 in accordance 

23 with this subsection. 

24 ‘‘(e) ENFORCEMENT OF OBLIGATIONS OF DEBTOR.— 


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•S 4991 IS

1 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

2 the obligations of a debtor under a repayment plan 

3 may be enforced solely by the trustee. 

4 ‘‘(2) EXCEPTION.—The holder of a claim pro5 vided for under section 1022(a)(1)(B)(ii) may en6 force the debt that is the basis for the claim in ac7 cordance with section 1028(b). 

8 ‘‘(3) 90-DAY DELINQUENCY REQUIREMENT.— 

9 The trustee may not commence any action to enforce 

10 an obligation of the debtor under a repayment plan 

11 based on a delinquent payment until after the date 

12 on which the debtor has been delinquent on the pay13 ment for an 90-day period. 

14 ‘‘(4) PLAN ENFORCEABLE BY TRUSTEE AS A

15 SIMPLE CONTRACT.—Subject to sections 362 and 

16 1029 and paragraph (7), the trustee may enforce an 

17 obligation of the debtor under a repayment plan only 

18 as a simple contract under applicable nonbankruptcy 

19 law. 

20 ‘‘(5) APPLICATION OF NONBANKRUPTCY LAW.— 

21 Except as provided in section 1029, enforcement of 

22 the obligations of a debtor under a repayment plan 

23 shall be subject to applicable nonbankruptcy law, in24 cluding laws relating to the garnishment of the 

25 wages of the debtor. 


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•S 4991 IS

1 ‘‘(6) INEFFICIENT ENFORCEMENT PROHIB2 ITED.—The trustee may not enforce an obligation of 

3 the debtor under a repayment plan if the reasonably 

4 anticipated costs of the enforcement would exceed 

5 the reasonably anticipated recovery to creditors after 

6 deducting the fee and expenses of the trustee. 

7 ‘‘(7) STATUTE OF LIMITATIONS FOR TRUSTEE

8 ENFORCEMENT.—An action by the trustee to enforce 

9 an obligation of the debtor under a repayment plan 

10 may not be commended on a date that is more than 

11 2 years after the earliest date on which the trustee 

12 may bring an action under paragraph (3). 

13 ‘‘(8) TRUSTEE’S RIGHTS NONASSIGNABLE.— 

14 Any assignment, factoring, or transferring of rights 

15 or amounts a debtor owes to a trustee under a re16 payment plan, or of rights or authority to collect any 

17 such amounts, is void. 

18 ‘‘§ 1026. Payments under a residence plan or property 

19 plan 

20 ‘‘(a) IN GENERAL.—Payments under a residence 

21 plan or a property plan shall be made by the debtor in 

22 accordance with the plan. 

23 ‘‘(b) CURE OF DEFAULT.— 

24 ‘‘(1) IN GENERAL.—If a residence plan or prop25 erty plan proposes to cure a default on a claim seVerDate Sep 11 2014 20:26 Dec 29, 2020 Jkt 019200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S4991.IS S4991

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•S 4991 IS

1 cured by property of the debtor, the debtor may, 

2 upon completion of the cure payments due under the 

3 plan, certify to the holder of such claim using a form 

4 prescribed by the Judicial Conference of the United 

5 States, with notice given to the court, that the de6 fault has been cured. 

7 ‘‘(2) PRESUMPTIVE EVIDENCE.—A certification 

8 of a debtor of cure of a default by the debtor under 

9 paragraph (1) shall constitute presumptive evidence 

10 that the default has in fact been cured. 

11 ‘‘§ 1027. Protection of lessors and purchase money 

12 lenders 

13 ‘‘(a) LEASE PAYMENTS.—The debtor shall timely 

14 make any payments scheduled in a lease of personal prop15 erty directly to the lessor for the portion of the obligation 

16 that becomes due after the date of the order for relief 

17 under this chapter, unless— 

18 ‘‘(1) the court orders otherwise; 

19 ‘‘(2) the debtor rejects a lease of personal prop20 erty under section 365(a); or 

21 ‘‘(3) the debtor assumes a lease of personal 

22 property under section 365(p)(1)(B). 

23 ‘‘(b) INSURANCE COVERAGE.—Not later than 60 

24 days after the date of the order for relief under this chap25 ter, a debtor who has proposed a plan that retains possesVerDate Sep 11 2014 20:26 Dec 29, 2020 Jkt 019200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S4991.IS S4991

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•S 4991 IS

1 sion of personal property subject to a lease a purchase 

2 money security interest shall— 

3 ‘‘(1) provide the lessor or holder of the claim 

4 reasonable evidence of the maintenance of any insur5 ance coverage required under the lease or purchase 

6 money security agreement with respect to the use or 

7 ownership of the property; and 

8 ‘‘(2) continue to provide the reasonable evidence 

9 required under paragraph (1) for as long as the 

10 debtor retains possession of the property before the 

11 date of confirmation of a plan addressing the prop12 erty. 

13 ‘‘§ 1028. Effect of confirmation 

14 ‘‘(a) BINDING EFFECT.—The provisions of a con15 firmed plan bind the debtor and each creditor of a claim 

16 for which the plan provides, regardless of whether the 

17 creditor has objected to the plan. 

18 ‘‘(b) REPAYMENT PLAN INJUNCTION.—Confirmation 

19 of a repayment plan shall operate as an injunction against 

20 the commencement or continuation of an action, the em21 ployment of process, or an act to collect, recover, or offset 

22 any debt excepted from discharge under section 523(a) 

23 and treated under section 1022(a)(1)(B)(ii) until— 

24 ‘‘(1) the date on which the debtor completes all 

25 payments due under the plan; or 


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•S 4991 IS

1 ‘‘(2) the debtor is not less than 90 days delin2 quent on a payment required under a repayment 

3 plan. 

4 ‘‘(c) RESIDENCE PLAN INJUNCTION.—Except as pro5 vided in subsection (e), confirmation of a residence plan 

6 shall operate as an injunction against the commencement 

7 or continuation of an action, the employment of process, 

8 or an act, to collect, recover, or offset any debt treated 

9 under section 1022(b)(2) or property securing such debt 

10 as long as the debtor is not more than 120 days delinquent 

11 on a payment required under a residence plan. 

12 ‘‘(d) PROPERTY PLAN INJUNCTION.—Except as pro13 vided in subsection (e), confirmation of a property plan 

14 shall operate as an injunction against the commencement 

15 or continuation of an action, the employment of process, 

16 or an act, to collect, recover, or offset any debt treated 

17 under section 1022(c)(2) or property securing such debt 

18 as long as the debtor is not more than 90 days delinquent 

19 on a payment required under a property plan. 

20 ‘‘(e) REQUEST FOR RELIEF FROM INJUNCTION.—A 

21 party in interest may request from the court relief from 

22 the operation of an injunction under subsection (c) or (d). 

23 ‘‘(f) VESTING OF PROPERTY.—Except as otherwise 

24 provided in a plan or the order confirming the plan, the 


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•S 4991 IS

1 confirmation of a plan vests all of the property of the es2 tate in the debtor. 

3 ‘‘(g) FREE AND CLEAR.—Except as otherwise pro4 vided in a plan or in the order confirming the plan, the 

5 property vesting in the debtor under subsection (f) is free 

6 and clear of any claim or interest of any creditor holding 

7 a claim provided for by the plan. 

8 ‘‘(h) SECURED CLAIMS.—Except as provided by sec9 tion 1031, the confirmation of a repayment plan leaves 

10 unaltered the rights of the holder of a secured claim that 

11 has not been avoided under this title. 

12 ‘‘(i) LIEN CREATED TO SECURE REPAYMENT PLAN

13 OBLIGATION.— 

14 ‘‘(1) IN GENERAL.—The confirmation of a re15 payment plan creates a lien in favor of the trustee 

16 in the amount of the minimum payment obligation 

17 on any non-exempt property of the estate retained 

18 by the debtor pursuant to section 

19 1022(a)(1)(A)(i)(II) to secure the minimum pay20 ment obligation. 

21 ‘‘(2) PRIORITY OF LIEN.—Without regard to 

22 the knowledge of the trustee or any creditor, a lien 

23 created under paragraph (1) shall have the same 

24 status, priority, rights, and powers, with respect to 


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•S 4991 IS

1 the property retained by the debtor to secure the ob2 ligation, as— 

3 ‘‘(A) a creditor, regardless of whether such 

4 a creditor exists, that extends credit to the 

5 debtor at the time of the commencement of the 

6 case and obtains, at such time, and with respect 

7 to such credit, a judicial lien on any such non8 exempt property that is personal property; 

9 ‘‘(B) a bona fide purchaser of any such 

10 real property, other than fixtures, from the 

11 debtor against whom applicable law permits 

12 such transfer to be perfected and that obtains 

13 the status of a bona fide purchaser; and has 

14 perfected such transfer at the time of the com15 mencement of the case, whether or not any 

16 such purchaser exists; 

17 ‘‘(C) the holder of a perfected security in18 terest in any such personal property of the 

19 debtor against which applicable law permits 

20 such security interest to be perfected as of the 

21 date of the confirmation of the repayment plan, 

22 whether or not such a holder exists; or 

23 ‘‘(D) the holder of a perfected garnishment 

24 lien against the wages of the debtor, whether or 

25 not such a holder exists. 


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•S 4991 IS

1 ‘‘(3) EFFECT OF LIEN.—A lien created under 

2 paragraph (1)— 

3 ‘‘(A) may not be considered a garnishment 

4 for the purposes of section 304(a) of the Con5 sumer Credit Protection Act (15 U.S.C. 

6 1674(a)); and 

7 ‘‘(B) shall be subordinate to any lien for 

8 payment of a domestic support obligation. 

9 ‘‘(4) RECORD OF LIEN.—The trustee shall 

10 record a lien created under paragraph (1) in the 

11 bankruptcy lien filing system maintained by the Ex12 ecutive Office of the United States Trustee under 

13 section 501 of the Consumer Bankruptcy Reform 

14 Act of 2020. 

15 ‘‘(j) EFFECT OF RESIDENCE OR PROPERTY PLAN.— 

16 Except to the extent inconsistent with the plan or the pro17 visions of this title, confirmation of a residence plan or 

18 a property plan leaves unaltered the rights of the parties 

19 under any agreement that is the basis for a claim secured 

20 by property provided for by the plan. 

21 ‘‘(k) CERTAIN CONTRACT PROVISIONS VOID.— 

22 ‘‘(1) IPSO FACTO CLAUSES VOID.—The con23 firmation of a plan voids any provision in a contract 

24 provided for by the plan that is conditioned on— 


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•S 4991 IS

1 ‘‘(A) the insolvency or financial condition 

2 of the debtor at any time before the closing of 

3 a case; 

4 ‘‘(B) the commencement of a case under 

5 this title; or 

6 ‘‘(C) the appointment of, or taking of pos7 session by, a trustee in a case under this title 

8 or a custodian before a case is commenced 

9 under this title. 

10 ‘‘(2) ARBITRATION AND JOINT-ACTION PROVI11 SIONS VOID.—Notwithstanding any contrary provi12 sion of nonbankruptcy law, the confirmation of a 

13 plan voids any pre-dispute arbitration agreement or 

14 pre-dispute joint-action lawsuit waiver relating to 

15 property subject to the plan. 

16 ‘‘(l) JURISDICTION TO RESOLVE DISPUTES.—Upon 

17 confirmation of a plan, the court shall retain jurisdiction 

18 to resolve any disputes arising under, or relating to, the 

19 plan and may order any appropriate relief in such a dis20 pute, including the suspension of the payment obligations 

21 of the debtor under the plan. 

22 ‘‘§ 1029. Modification of repayment plan 

23 ‘‘(a) IN GENERAL.—After notice and a hearing, the 

24 court may, for cause, modify an obligation of the debtor 


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•S 4991 IS

1 under a repayment plan based on a material change in 

2 the financial condition of the debtor that— 

3 ‘‘(1) occurs after the date of the confirmation 

4 of the repayment plan; and 

5 ‘‘(2) would impose a substantial burden on the 

6 debtor or a dependent of the debtor. 

7 ‘‘(b) UNANTICIPATED ATTORNEY’S FEES.—If the 

8 debtor incurs unanticipated attorney’s fees for services 

9 provided subsequent to confirmation of a repayment plan, 

10 including for services relating to this section, after notice 

11 and a hearing, the court may, for cause— 

12 ‘‘(1) subject to section 502(b)(3), allow the 

13 debtor to modify the repayment plan to include 

14 treatment of such attorney’s fees; and 

15 ‘‘(2) permit the debtor to extend the term of a 

16 repayment plan by up to 6 months to facilitate 

17 treatment of such attorney’s fees. 

18 ‘‘SUBCHAPTER III—DISCHARGE 

19 ‘‘§ 1031. Discharge; scope and timing 

20 ‘‘(a) IN GENERAL.—Subject to subsection (b), the 

21 court shall grant the debtor a discharge in accordance with 

22 subsection (c) as soon as is practicable after— 

23 ‘‘(1) the date of confirmation of a repayment 

24 plan; or 


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•S 4991 IS

1 ‘‘(2) in the case of a debtor that has no min2 imum payment obligation, the date on which the 

3 deadline for filing a repayment plan under section 

4 1021(e) expires. 

5 ‘‘(b) EXCEPTIONS.—The court may not grant a dis6 charge under subsection (a) to a debtor who has— 

7 ‘‘(1) been granted a discharge under this sec8 tion, under section 1141, 1192, 1128, or under 

9 former section 727 or 1328, within 6 years of the 

10 date of the filing of the petition; 

11 ‘‘(2) failed to tender the property of the estate 

12 that is designated to be tendered under a repayment 

13 plan under section 1022(a)(1)(A)(i)(II); 

14 ‘‘(3)(A) executed a written waiver of discharge 

15 after the date of the order for relief; and 

16 ‘‘(B) appeared at a hearing at which the court 

17 determined that the debtor adequately understands 

18 the terms and consequences of the waiver described 

19 in subparagraph (A); 

20 ‘‘(4) with the intent to hinder, delay, or defraud 

21 a creditor or an officer of the estate charged with 

22 the custody of property under this title, transferred, 

23 removed, destroyed, mutilated, concealed, or per24 mitted the transfer, removal, destruction, mutilation, 

25 or concealment of— 


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•S 4991 IS

1 ‘‘(A) property of the debtor within 1 year 

2 of the date of the filing of the petition; or 

3 ‘‘(B) property of the estate after the date 

4 of the filing of the petition; 

5 ‘‘(5) concealed, destroyed, mutilated, falsified, 

6 or failed to keep or preserve any recorded informa7 tion from which the financial condition or business 

8 transactions of the debtor might have been 

9 ascertained, unless such act or failure was justified 

10 under all of the circumstances of the case; 

11 ‘‘(6) knowingly and fraudulently, in the case or 

12 in connection with the case— 

13 ‘‘(A) made a false oath or account; 

14 ‘‘(B) presented or used a false claim; 

15 ‘‘(C) gave, offered, received, or attempted 

16 to obtain money, property, or advantage, or a 

17 promise of money, property, or advantage, for 

18 acting or forbearing to act; or 

19 ‘‘(D) withheld from the trustee any re20 corded information, including books, documents, 

21 records, and papers, relating to the property or 

22 financial affairs of the debtor; 

23 ‘‘(7) failed to satisfactorily explain, before the 

24 determination of denial of discharge under this paraVerDate Sep 11 2014 20:26 Dec 29, 2020 Jkt 019200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\S4991.IS S4991

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•S 4991 IS

1 graph, any loss of assets or deficiency of assets to 

2 meet the liabilities of the debtor; or 

3 ‘‘(8) refused in the case— 

4 ‘‘(A) to obey any lawful order of the court, 

5 other than an order to respond to a material 

6 question or to testify; 

7 ‘‘(B) on the ground of privilege against 

8 self-incrimination, to respond to a material 

9 question approved by the court or to testify 

10 after the debtor has been granted immunity 

11 with respect to the matter concerning which the 

12 privilege was invoked; or 

13 ‘‘(C) on a ground other than a properly in14 voked privilege against self-incrimination, to re15 spond to a material question approved by the 

16 court or to testify. 

17 ‘‘(c) DEBTS DISCHARGED.—Except as provided in 

18 section 523, a discharge under subsection (a) discharges 

19 the debtor from all debts that arose before the date of 

20 the order for relief under this chapter and any liability 

21 on a claim that is determined under section 502 as if such 

22 debt or claim had arisen before the commencement of the 

23 case, whether or not— 

24 ‘‘(1) a proof of claim based on any such debt 

25 or liability is filed under section 501; or 


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•S 4991 IS

1 ‘‘(2) a claim based on any such debt or liability 

2 is allowed under section 502. 

3 ‘‘(d) NOTICE OF DEBTOR’S RIGHTS.—Upon granting 

4 a discharge under subsection (a), the court shall include 

5 in the discharge order provided to the debtor on a form 

6 prescribed by the Judicial Conference of the United States 

7 in accordance with rule 9009 of the Federal Rules of 

8 Bankruptcy Procedure a conspicuous notice of— 

9 ‘‘(1) the right to bring an action for contempt 

10 or a civil action under section 524(c); and 

11 ‘‘(2) the existence of other Federal or State 

12 laws that may provide additional remedies to the 

13 debtor in the event a person violates section 524. 

14 ‘‘§ 1032. Revocation of discharge or order of con15 firmation 

16 ‘‘(a) IN GENERAL.—On request of the trustee, a 

17 creditor, or the United States trustee, at any time within 

18 1 year after the date of the entry of an order of confirma19 tion under section 1024 or an order of discharge under 

20 section 1031, and after notice and a hearing, the court 

21 may revoke such order only if— 

22 ‘‘(1) such confirmation or discharge was ob23 tained through the fraud of the debtor and the re24 questing party did not know of such fraud until 


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•S 4991 IS

1 after the granting of such confirmation or discharge; 

2 or 

3 ‘‘(2) the debtor has refused, in the case— 

4 ‘‘(A) to obey any lawful order of the court, 

5 other than an order to respond to a material 

6 question or to testify; 

7 ‘‘(B) on the ground of privilege against 

8 self-incrimination, to respond to a material 

9 question approved by the court or to testify, 

10 after the debtor has been granted immunity 

11 with respect to the matter concerning which 

12 such privilege was invoked; or 

13 ‘‘(C) on a ground other than the properly 

14 invoked privilege against self-incrimination, to 

15 respond to a material question approved by the 

16 court or to testify. 

17 ‘‘(b) DISPOSAL OF CASE.—If the court revokes an 

18 order of confirmation or an order of discharge under sub19 section (a), the court shall convert or dismiss the case 

20 under section 1005. 

21 ‘‘SUBCHAPTER IV—AVOIDANCE ACTIONS 

22 ‘‘§ 1041. Treatment of certain liens 

23 ‘‘The trustee may avoid a lien that secures a claim 

24 of a kind described in section 726(a)(4). 


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•S 4991 IS

1 ‘‘§ 1042. Limitations on avoidance actions 

2 ‘‘The trustee may not bring an action to avoid a 

3 transfer or obligation under section 544, 545, 547, 548, 

4 553, or 1041, unless there are allowed unsecured claims 

5 against the estate that the debtor does not propose to pay 

6 in full under a repayment plan. 

7 ‘‘SUBCHAPTER V—LIMITED PROCEEDINGS 

8 ‘‘§ 1051. Election of limited proceeding 

9 ‘‘(a) IN GENERAL.— 

10 ‘‘(1) ELECTION OF LIMITED PROCEEDING.—In 

11 a case commenced under section 301 or 302, a debt12 or that is eligible to file under this chapter may, as 

13 part of the petition for relief, elect to conduct a lim14 ited proceeding that affects only claims secured by 

15 specific items of the property of the debtor under 

16 this subchapter. 

17 ‘‘(2) GENERAL PROCEEDING AS DEFAULT.—If 

18 the debtor does not elect to conduct a limited pro19 ceeding in a case under this chapter— 

20 ‘‘(A) the case shall proceed as a general 

21 proceeding under this title; and 

22 ‘‘(B) this subchapter shall not apply to the 

23 case. 

24 ‘‘(b) LIMITATION ON ELECTION.— 


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•S 4991 IS

1 ‘‘(1) IN GENERAL.—After the entry of order for 

2 relief, the debtor may not elect to conduct a limited 

3 proceeding. 

4 ‘‘(2) ELECTION AFTER DISMISSAL.—Nothing in 

5 this section shall preclude a debtor, subsequent to 

6 the dismissal of a case, from— 

7 ‘‘(A) filing a petition under section 301 or 

8 302; and 

9 ‘‘(B) electing to conduct a limited pro10 ceeding under subsection (a). 

11 ‘‘§ 1052. Effect of limited proceeding 

12 ‘‘If the debtor elects to conduct a limited proceeding 

13 under section 1051(a)— 

14 ‘‘(1) the debtor shall file with the petition a 

15 schedule of affected property designating the prop16 erty to be subject to the limited proceeding that lists 

17 any creditor that has an interest in such property; 

18 ‘‘(2) the property of the estate under section 

19 541 shall be limited to property that the debtor has 

20 indicated in the schedule of affected property; 

21 ‘‘(3) sections 341, 365, 1001, 1002, 1003, 

22 1005(a), 1005(b)(4), 1005(b)(7), 1005(c), 1008, 

23 1021(a)(1), 1025, 1027(a), 1031, 1032, 1041, and 

24 1042 shall not apply to the case; 


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•S 4991 IS

1 ‘‘(4) subject to any limitations of a trustee 

2 under this chapter, the debtor shall have the rights 

3 and powers of a trustee under— 

4 ‘‘(A) subsections (b), (c), (d), (f), and (l) 

5 of section 363; and 

6 ‘‘(B) sections 364, 544, 546, 547, 548, 

7 549, and 553; 

8 ‘‘(5) the debtor shall file 1 or more plans under 

9 paragraphs (2) and (3) of section 1021(a) with re10 spect to property listed in the schedule of affected 

11 property within 7 days of the order for relief, or 

12 such further time as the court may allow for cause, 

13 but in no case more than 30 days after the date of 

14 the order for relief; 

15 ‘‘(6) the stay under subsection section 362(a) 

16 shall apply only to entities with an interest in the 

17 property that the debtor has indicated in the sched18 ule of affected property as intended for treatment 

19 under a plan; 

20 ‘‘(7) the debtor shall not be required to file the 

21 items required under section 521(a)(1)(B), other 

22 than a statement of current income and current ex23 penditures; and 

24 ‘‘(8) notice of the order for relief shall not be 

25 required to be provided to parties other than parties 


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•S 4991 IS

1 with claims secured by property that the debtor has 

2 indicated in the schedule of affected property and to 

3 the United States trustee. 

4 ‘‘§ 1053. Dismissal or conversion of limited pro5 ceedings 

6 ‘‘(a) ELECTION OF DISMISSAL OR CONVERSION OF

7 LIMITED PROCEEDING.—The debtor may elect to dismiss 

8 a limited proceeding or convert a limited proceeding to a 

9 general proceeding under this chapter by filing a notice 

10 of termination or conversion within 7 days of the earlier 

11 of— 

12 ‘‘(1) the failure of the debtor to timely file a 

13 plan required under section 1052(5); or 

14 ‘‘(2) the failure of the court to confirm a plan 

15 within 60 days of the date of the order for relief. 

16 ‘‘(b) CONVERSION OF LIMITED PROCEEDING.—If a 

17 debtor elects to convert a limited proceeding to a general 

18 proceeding under this chapter under subsection (a)— 

19 ‘‘(1) the property of the estate shall be deter20 mined under section 541, without regard to section 

21 1052(2), as of the date of the notice of conversion; 

22 ‘‘(2) the stay under section 362(a) shall apply 

23 to each entity as of the date of the notice of conver24 sion; 


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•S 4991 IS

1 ‘‘(3) notice of the order for relief shall be pro2 vided to each party in interest that was not notified 

3 under section 1052(8); 

4 ‘‘(4) any timeline for an action to be taken by 

5 the debtor under this title that begins on the date 

6 of the order for relief shall be adjusted to begin on 

7 the date of the notice of conversion; 

8 ‘‘(5) except as provided in section 506, with re9 spect to a creditor that has a claim secured by prop10 erty included in the schedule of affected property 

11 filed under section 1052(1), any claims that arose 

12 against the debtor after the date of the order for re13 lief and before the date of the notice of conversion 

14 shall be deemed to have arisen immediately before 

15 the date of the filing of the petition; and 

16 ‘‘(6) any valuation of property or an allowed se17 cured claim, any determination of a claim allowance, 

18 and any other determination made in the course of 

19 the limited proceeding may be used in the general 

20 proceeding, unless the court for cause orders other21 wise. 

22 ‘‘(c) DISMISSAL BY COURT OF LIMITED PRO23 CEEDING.—At any time, after notice and a hearing, the 

24 court, on its own motion or on a motion by the United 

25 States trustee, may dismiss a case that is proceeding as 


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•S 4991 IS

1 a limited proceeding on the grounds that the granting of 

2 relief would be a manifestly improper use of the bank3 ruptcy system.’’. 

4 (b) CLERICAL AMENDMENT.—The table of chapters 

5 for title 11, United States Code, is amended by inserting 

6 after the item relating to chapter 9 the following: 

‘‘10. Individual bankruptcy ..................................................................... 1001’’. 

7 SEC. 103. REPEAL OF CHAPTER 13. 

8 (a) IN GENERAL.—Chapter 13 of title 11, United 

9 States Code, is repealed. 

10 (b) CLERICAL AMENDMENT.—The table of chapters 

11 for title 11, United States Code, is amended by striking 

12 the item relating to chapter 13. 

13 SEC. 104. OTHER AMENDMENTS TO THE BANKRUPTCY 

14 CODE. 

15 (a) DEFINITIONS.— 

16 (1) IN GENERAL.—Section 101 of title 11, 

17 United States Code, is amended— 

18 (A) by striking paragraphs (3), (4A), 

19 (10A), (12A), and (30); 

20 (B) by redesignating paragraphs (53B), 

21 (53C), (56A), (53D), (54), (54A), and (55) as 

22 paragraphs (86), (87), (88), (89), (90), (91), 

23 and (92), respectively; 

24 (C) by inserting before paragraph (87), as 

25 so redesignated, the following: 


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•S 4991 IS

1 ‘‘(85) The term ‘store gift card’ means a card, 

2 code, or other device that is— 

3 ‘‘(A) issued in exchange for payment on a 

4 prepaid basis primarily for personal, family, or 

5 household purposes to a consumer in a specified 

6 amount, whether or not that amount may be in7 creased or reloaded; and 

8 ‘‘(B) redeemable for goods or services upon 

9 presentation at a single merchant or an affili10 ated group of merchants.’’; 

11 (D) by redesignating paragraphs (48), 

12 (48A), (49), (50), (51), (51A), (51B), (51C), 

13 (51D), (52), (53), and (53A) as paragraphs 

14 (73), (74), (75), (76), (77), (78), (79), (80), 

15 (81), (82), (83), and (84), respectively; 

16 (E) by inserting before paragraph (73), as 

17 so redesignated, the following: 

18 ‘‘(72) The term ‘residence plan’ means a plan 

19 filed pursuant to section 1022(b) of this title.’’; 

20 (F) by redesignating paragraphs (46) and 

21 (47) as paragraphs (70) and (71), respectively; 

22 (G) by inserting before paragraph (70), as 

23 so redesignated, the following: 

24 ‘‘(69) The term ‘repayment plan’ means a plan 

25 filed pursuant to section 1022(a) of this title.’’; 


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•S 4991 IS

1 (H) by redesignating paragraph (45) as 

2 paragraph (68); 

3 (I) by inserting before paragraph (68), as 

4 so redesignated, the following: 

5 ‘‘(67) The term ‘realizable value’ means the 

6 value, as of the relevant date, that could be obtained 

7 for the relevant property in a lawful foreclosure, re8 possession, or execution sale, less the costs of such 

9 sale.’’; 

10 (J) by redesignating paragraphs (43) and 

11 (44) as paragraphs (65) and (66), respectively; 

12 (K) by inserting before paragraph (65), as 

13 so redesignated, the following: 

14 ‘‘(64) The term ‘property plan’ means a plan 

15 filed pursuant to section 1022(c) of this title.’’; 

16 (L) by redesignating paragraph (42A) as 

17 paragraph (63); 

18 (M) by inserting before paragraph (63), as 

19 so redesignated, the following: 

20 ‘‘(61) The term ‘pre-dispute arbitration agree21 ment’ means any agreement to which the debtor is 

22 a party to arbitrate a dispute that has not arisen at 

23 the time of the making of the agreement. 

24 ‘‘(62) The term ‘pre-dispute joint-action waiver’ 

25 means any agreement to which the debtor is a party, 


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•S 4991 IS

1 whether or not part of a predispute arbitration 

2 agreement, that would prohibit the debtor from par3 ticipating, or waive the right of the debtor to partici4 pate, in a joint, class, or collective action in a judi5 cial, arbitral, administrative, or other forum, con6 cerning a dispute that has not yet arisen at the time 

7 of the making of the agreement.’’; 

8 (N) by redesignating paragraphs (40), 

9 (40A), (40B), (41), (41A), and (42) as para10 graphs (55), (56), (57), (58), (59), and (60), 

11 respectively; 

12 (O) by inserting before paragraph (56), as 

13 so redesignated, the following: 

14 ‘‘(54) The term ‘minimum payment obligation’ 

15 means, except as provided in section 1021(c)(1) of 

16 this title, an amount equal to the lesser of— 

17 ‘‘(A) the allowed unsecured claims; or 

18 ‘‘(B) the sum of— 

19 ‘‘(i) the value of the debtor’s interest 

20 in property of the bankruptcy estate in ex21 cess of— 

22 ‘‘(I) any allowed secured claims 

23 that are secured by that property; 

24 plus 


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•S 4991 IS

1 ‘‘(II) any exemption applicable 

2 under section 522(b); 

3 ‘‘(ii) in the case of a debtor in a 

4 household of 1, 2, 3, or 4 individuals, to 

5 the extent the debtor’s annual income ex6 ceeds 135 percent of the median family in7 come of the applicable State for a family 

8 of the same number of individuals or fewer 

9 as the debtor— 

10 ‘‘(I) if the excess is not over 

11 $10,000, 15 percent of the excess; 

12 ‘‘(II) if the excess is over 

13 $10,000 but not over $50,000, $1,500 

14 plus 45 percent of the excess over 

15 $10,000; 

16 ‘‘(III) if the excess is over 

17 $50,000 but not over $100,000, 

18 $19,500 plus 75 percent of the excess 

19 over $50,000; or 

20 ‘‘(IV) if the excess is over 

21 $100,000, $94,500 plus 150 percent 

22 of the excess over $100,000; and 

23 ‘‘(iii) in the case of a debtor in a 

24 household exceeding 4 individuals, clause 

25 (ii) shall apply, except that excess income 


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•S 4991 IS

1 shall be calculated as the extent to which 

2 the debtor’s annual income exceeds the 

3 sum of 135 percent of the highest median 

4 family income of the applicable State for a 

5 family of 4 or fewer individuals and $9,000 

6 for each individual in excess of 4.’’; 

7 (P) by redesignating paragraphs (31), 

8 (32), (33), (34), (35), (35A), (36), (37), (38), 

9 (38A), (38B), (39), and (39A) as paragraphs 

10 (41), (42), (43), (44), (45), (46), (47), (48), 

11 (49), (50), (51), (52), and (53), respectively; 

12 (Q) in paragraph (45)(B), as so redesig13 nated, by striking ‘‘paragraphs (21B) and 

14 (33)(A)’’ and inserting ‘‘paragraphs (29) and 

15 (43)(A)’’; 

16 (R) by redesignating paragraphs (14), 

17 (14A), (15), (16), (17), (18), (19), (19A), 

18 (19B), (20), (21), (21A), (21B), (22), (22A), 

19 (23), (24), (25), (26), (27), (27A), (27B), (28), 

20 and (29) as paragraphs (17), (18), (19), (20), 

21 (21), (22), (23), (24), (25), (26), (27), (28), 

22 (29), (30), (31), (32), (33), (34), (35), (36), 

23 (37), (38), (39), and (40), respectively; 

24 (S) in paragraph (18), as so redesig25 nated— 


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•S 4991 IS

1 (i) in the matter preceding subpara2 graph (A), by inserting ‘‘attorneys’ fees 

3 and’’ before ‘‘interest’’; and 

4 (ii) by striking subparagraph (A) and 

5 inserting the following: 

6 ‘‘(A) owed to or recoverable by a spouse, 

7 former spouse, or child of the debtor or a par8 ent, legal guardian, or responsible relative of 

9 such a child;’’; 

10 (T) by striking paragraph (13A) and in11 serting the following: 

12 ‘‘(16) The term ‘debtor’s principal residence’, 

13 with respect to a debtor, means 1 of the following: 

14 ‘‘(A) A residential structure that the debt15 or or a dependent uses as a residence, including 

16 an individual condominium, a mobile or manu17 factured home, or trailer or houseboat, and inci18 dental property, without regard to whether that 

19 structure is attached to real property. 

20 ‘‘(B) An interest in a cooperative that 

21 owns property that the debtor or a dependent 

22 of the debtor uses as a residence. 

23 ‘‘(C) A residential leasehold that the debt24 or or a dependent of the debtor uses as a resi25 dence.’’; 


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•S 4991 IS

1 (U) by redesignating paragraphs (7A), 

2 (7B) (8), (9), (10), (11), (12), and (13) as 

3 paragraphs (8), (9), (10), (11), (12), (13), 

4 (14), and (15), respectively; and 

5 (V) by inserting before paragraph (4) the 

6 following: 

7 ‘‘(3) The term ‘annual income’ means— 

8 ‘‘(A) an amount equal to twice the income 

9 from all sources that the debtor receives (or in 

10 a joint case the debtor and the debtor’s spouse 

11 receive) without regard to whether such income 

12 is taxable, derived during the 6-month period 

13 ending on the last day of the calendar month 

14 immediately preceding the date of the filing of 

15 the petition; and 

16 ‘‘(B) any amount paid by any entity other 

17 than the debtor (or in a joint case the debtor 

18 and the debtor’s spouse), on a regular basis on 

19 behalf of the debtor, except that the proceeds 

20 from the sale of an asset not in the ordinary 

21 course of business shall not be included in an22 nual income.’’. 

23 (2) CONFORMING AMENDMENTS TO OTHER

24 LAWS.— 


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•S 4991 IS

1 (A) Section 1503(3)(A)(iv) of the S.A.F.E. 

2 Mortgage Licensing Act of 2008 (12 U.S.C. 

3 1502(3)(A)(iv)) is amended by striking ‘‘section 

4 101(53D)’’ and inserting ‘‘section 101(89)’’. 

5 (B) Section 116(a)(2)(A) of the Emer6 gency Economic Stabilization Act of 2008 (12 

7 U.S.C. 5226(a)(2)(A)) is amended by striking 

8 ‘‘section 101(27)’’ and inserting ‘‘section 

9 101(36)’’. 

10 (C) Section 210(a) of the Dodd-Frank 

11 Wall Street Reform and Consumer Protection 

12 Act (12 U.S.C. 5390(a))— 

13 (i) in paragraph (11)(H)— 

14 (I) in clause (i)(I), by striking 

15 ‘‘section 101(31)’’ and inserting ‘‘sec16 tion 101(41)’’; and 

17 (II) in clause (ii)(II), by striking 

18 ‘‘section 101(32)’’ and inserting ‘‘sec19 tion 101(42)’’; and 

20 (ii) in paragraph (12)(C), by striking 

21 ‘‘section 101(32)’’ and inserting ‘‘section 

22 101(42)’’. 

23 (D) Section 3E(g) of the Securities Ex24 change Act of 1934 (15 U.S.C. 78c–5(g)) is 


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•S 4991 IS

1 amended by striking ‘‘section 101(53A)(B)’’ 

2 and inserting ‘‘section 101(84)(B)’’. 

3 (E) Section 103(dd)(5) of the Truth in 

4 Lending Act (15 U.S.C. 1602(dd)(5)) is amend5 ed by striking ‘‘section 101(53D)’’ and insert6 ing ‘‘section 101(89)’’. 

7 (F) Section 128(b)(2)(G)(i) of the Truth 

8 in Lending Act (15 U.S.C. 1638(b)(2)(G)(i)) is 

9 amended, in the matter preceding subclause (I), 

10 by striking ‘‘section 101(53D)’’ and inserting 

11 ‘‘section 101(89)’’. 

12 (G) Section 129B(f) of the Truth in Lend13 ing Act (15 U.S.C. 1639b(f)) is amended by 

14 striking ‘‘section 101(53D)’’ and inserting ‘‘sec15 tion 101(89)’’. 

16 (H) Section 129C(i) of the Truth in Lend17 ing Act (15 U.S.C. 1639c(i)) is amended by 

18 striking ‘‘section 101(53D)’’ and inserting ‘‘sec19 tion 101(89)’’. 

20 (I) Section 1016(f)(2)(A) of the Oil Pollu21 tion Act of 1990 (33 U.S.C. 2716(f)(2)(A)) is 

22 amended by striking ‘‘section 101(32)’’ and in23 serting ‘‘section 101(42)’’. 

24 (J) Section 405(j)(2)(C) of PROMESA 

25 (48 U.S.C. 2194(j)(2)(C)) is amended by strikVerDate Sep 11 2014 20:26 Dec 29, 2020 Jkt 019200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\S4991.IS S4991

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•S 4991 IS

1 ing ‘‘section 101(11)’’ and inserting ‘‘section 

2 101(13)’’. 

3 (b) APPLICABILITY OF CHAPTERS.—Section 103 of 

4 title 11, United States Code, is amended— 

5 (1) in subsection (a)— 

6 (A) by striking ‘‘chapter 7, 11, 12, or 13 

7 of this title’’ and inserting ‘‘chapter 7, 10, 11, 

8 or 12 of this title’’; and 

9 (B) by striking ‘‘section 362(o)’’ and in10 serting ‘‘section 362(m)’’; and 

11 (2) in subsection (j) by striking ‘‘Chapter 13’’ 

12 and inserting ‘‘Chapter 10’’. 

13 (c) ADJUSTMENT OF DOLLAR AMOUNTS.—Section 

14 104 of title 11, United States Code, is amended— 

15 (1) in subsection (a) by striking ‘‘sections 

16 101(3)’’ and all that follows through ‘‘of this title’’ 

17 and inserting ‘‘this title’’; and 

18 (2) in subsection (b) by striking ‘‘sections 

19 101(3)’’ and all that follows through ‘‘of this title’’ 

20 and inserting ‘‘this title’’. 

21 (d) WAIVER OF SOVEREIGN IMMUNITY.—Section 

22 106(a)(1) of title 11, United States Code, is amended— 

23 (1) by striking ‘‘722,’’; 

24 (2) by inserting ‘‘1028,’’ after ‘‘944,’’; and 


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•S 4991 IS

1 (3) by striking ‘‘1231, 1301, 1303, 1305, and 

2 1327’’ and inserting ‘‘and 1231’’. 

3 (e) EXTENSION OF TIME.—Section 108 of title 11, 

4 United States Code, is amended— 

5 (1) in subsection (b), in the matter preceding 

6 paragraph (1), by striking ‘‘or 1301’’; and 

7 (2) in subsection (c)— 

8 (A) in the matter preceding paragraph (1), 

9 by striking ‘‘1201 or 1301’’ and inserting 

10 ‘‘1009 or 1201’’; and 

11 (B) in paragraph (2), by striking ‘‘section 

12 362, 922, 1201, or 1301 of this title,’’ and in13 serting ‘‘section 362, 922, or 1201 of this 

14 title,’’. 

15 (f) WHO MAY BE A DEBTOR.— 

16 (1) IN GENERAL.—Section 109 of title 11, 

17 United States Code, is amended— 

18 (A) in subsection (b)— 

19 (i) by redesignating paragraphs (1), 

20 (2), and (3) as paragraphs (2), (3), and 

21 (4), respectively; and 

22 (ii) by inserting before paragraph (2), 

23 as so redesignated, the following: 

24 ‘‘(1) an individual;’’; 

25 (B) by striking subsection (e); 


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•S 4991 IS

1 (C) by redesignating subsection (d) as (e); 

2 (D) by inserting after subsection (c) the 

3 following: 

4 ‘‘(d) Only an individual that owes aggregate non5 contingent liquidated secured and unsecured debts as of 

6 the date of the filing of the petition or the date of the 

7 order for relief in an amount not more than $7,500,000 

8 (excluding debts owed to 1 or more affiliates or insiders) 

9 may be a debtor under chapter 10 of this title.’’; 

10 (E) in subsection (e), as so redesignated, 

11 by striking ‘‘railroad, a person’’ and inserting 

12 ‘‘railroad, an individual, a person’’; 

13 (F) by striking subsection (g) and insert14 ing the following: 

15 ‘‘(g) Notwithstanding any other provision of this sec16 tion, no individual or family farmer may be a debtor under 

17 this title who has been a debtor in a case pending under 

18 this title at any time in the preceding 180 days if the case 

19 was dismissed by the court for willful failure of the debtor 

20 to abide by orders of the court, or to appear before the 

21 court in proper prosecution of the case.’’; and 

22 (G) by striking subsection (h) and insert23 ing the following: 

24 ‘‘(h)(1) Upon motion of a party in interest or on the 

25 court’s own motion, the court may, after notice and a 


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•S 4991 IS

1 hearing, include in an order dismissing a case under sec2 tion 707, 1005, 1053(c), 1112, or 1208 of this title a re3 striction of the debtor’s eligibility to refile a subsequent 

4 case under this title upon a finding of cause, including— 

5 ‘‘(A) willful failure of the debtor to— 

6 ‘‘(i) abide by orders of the court; or 

7 ‘‘(ii) propose a plan required under section 

8 1021, 1129, or 1225 in good faith and not by 

9 any means forbidden by law; 

10 ‘‘(B) willful and substantial default by the debt11 or with respect to a term of a confirmed plan; 

12 ‘‘(C) a pattern or practice of filing bankruptcy 

13 petitions as part of a manifestly improper use of the 

14 bankruptcy system; 

15 ‘‘(D) willful failure of the debtor to appear be16 fore the court in proper prosecution of the case; or 

17 ‘‘(E) other manifestly improper use of the pro18 visions of this title. 

19 ‘‘(2) The period of ineligibility for a subsequent 

20 case— 

21 ‘‘(A) shall extend for 180 days from the date of 

22 the entry of the court’s order unless the court orders 

23 otherwise; and 

24 ‘‘(B) may extend for a period longer than 180 

25 days (but not to exceed 720 days) only if the court 


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•S 4991 IS

1 finds manifestly improper use the bankruptcy sys2 tem. 

3 ‘‘(3) After notice and a hearing, the court may de4 crease the period of ineligibility based upon a showing of 

5 changed circumstances or for good cause shown.’’. 

6 (2) CONFORMING AMENDMENTS.— 

7 (A) Section 1501(c)(2) of title 11, United 

8 States Code, is amended by striking ‘‘109(e)’’ 

9 and inserting ‘‘109(d)’’. 

10 (B) Section 303(1) of PROMESA (48 

11 U.S.C. 2163(1)) is amended by striking ‘‘sec12 tion 109(b)(2)’’ and inserting ‘‘section 

13 109(b)(3)’’. 

14 (g) PENALTY FOR PERSONS WHO NEGLIGENTLY OR

15 FRAUDULENTLY PREPARE BANKRUPTCY PETITIONS.— 

16 Section 110(e)(2)(B)(i)(II) of title 11, United States 

17 Code, is amended by striking ‘‘under chapter 7, 11, 12, 

18 or 13’’ and inserting ‘‘under chapter 10, 11, or 12’’. 

19 (h) NONPROFIT BUDGET AND CREDIT COUNSELING

20 AGENCIES; FINANCIAL MANAGEMENT INSTRUCTIONAL

21 COURSES.— 

22 (1) Chapter 1 of title 11, United States Code, 

23 is amended by striking section 111. 


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•S 4991 IS

1 (2) The table of sections for chapter 1 of title 

2 11, United States Code, is amended by striking the 

3 item relating to section 111. 

4 (i) INVOLUNTARY CASES.—Section 303 of title 11, 

5 United States Code, is amended— 

6 (1) in subsection (a) by striking ‘‘chapter 7 or 

7 11 of this title’’ and inserting ‘‘chapter 7, 10, or 11 

8 of this title’’; 

9 (2) in subsection (b) by striking ‘‘chapter 7 or 

10 11 of this title—’’ and inserting ‘‘chapter 7, 10, or 

11 11 of this title—’’; 

12 (3) in subsection (g)— 

13 (A) by striking ‘‘chapter 7 of this title’’ 

14 and inserting ‘‘chapter 7 or 10 of this title’’; 

15 and 

16 (B) by striking ‘‘section 701 of this title’’ 

17 and inserting ‘‘section 701 or 1003 of this 

18 title’’; and 

19 (4) in subsection (k)(2), by striking ‘‘the court 

20 may enter an order’’ and inserting ‘‘the court shall 

21 enter an order’’. 

22 (j) APPEARANCE BY CONSUMER FINANCIAL PROTEC23 TION BUREAU.— 


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•S 4991 IS

1 (1) IN GENERAL.—Subchapter I of chapter 3 of 

2 title 11, United States Code, is amended by adding 

3 at the end the following: 

4 ‘‘§ 309. Bureau of Consumer Financial Protection ap5 pearances in bankruptcy cases 

6 ‘‘Notwithstanding section 1054(e) of the Consumer 

7 Financial Protection Act (12 U.S.C. 5564(e)), the Bureau 

8 of Consumer Financial Protection may represent itself in 

9 its own name and may raise, appear, and be heard on any 

10 issue in a case under this title before any court with ap11 propriate jurisdiction.’’. 

12 (2) CONFORMING AMENDMENT.—The table of 

13 sections for chapter 3 of title 11, United States 

14 Code, is amended by inserting after the item relating 

15 to section 308 the following: 

‘‘309. Bureau of Consumer Financial Protection appearances in bankruptcy 

cases.’’. 

16 (k) ELIGIBILITY TO SERVE AS TRUSTEE.—Section 

17 321(a) of title 11, United States Code, is amended by 

18 striking ‘‘under chapter 7, 12, or 13 of this title,’’ each 

19 place it appears and inserting ‘‘under chapter 7, 10, or 

20 12 of this title,’’. 

21 (l) QUALIFICATION OF TRUSTEE.—Section 322(a) of 

22 title 11, United States Code, is amended by striking ‘‘701, 

23 702, 703, 1104, 1163, 1183, 1202, or 1302’’ and insert24 ing ‘‘701, 702, 703, 1001, 1104, 1163, 1183, or 1202’’. 


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•S 4991 IS

1 (m) LIMITATION ON COMPENSATION OF TRUSTEE.— 

2 Section 326(b) of title 11, United States Code, is amend3 ed— 

4 (1) by striking ‘‘chapter 12 or 13 of this title,’’ 

5 and inserting ‘‘chapter 10 or 12 of this title,’’; and 

6 (2) by striking ‘‘under section 1202(a) or 

7 1302(a) of this title’’ and inserting ‘‘under section 

8 1001(a) or 1202(a) of this title’’. 

9 (n) DEBTOR’S TRANSACTIONS WITH ATTORNEYS.— 

10 Section 329 of title 11, United States Code, is amended— 

11 (1) in subsection (b)(1)(B), by striking ‘‘chap12 ter 11, 12, or 13 of this title’’ and inserting ‘‘chap13 ter 10, 11, or 12 of this title’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(c) In a case under chapter 10 of this title, no com16 pensation shall be allowed for the debtor’s attorney under 

17 this title unless— 

18 ‘‘(1) the agreement between the debtor and the 

19 debtor’s attorney providing for compensation— 

20 ‘‘(A) was made not more than 90 days be21 fore the date of the filing of the petition; 

22 ‘‘(B) specifies the services provided or to 

23 be provided by the debtor’s attorney and the at24 torney’s related fees and expenses; 


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•S 4991 IS

1 ‘‘(C) provides that the debtor will not be 

2 requested to pay or be liable for any amounts 

3 other than attorneys’ fees and expenses— 

4 ‘‘(i) specified in the agreement; 

5 ‘‘(ii) for any adversary proceeding in 

6 which the debtor is a party; or 

7 ‘‘(iii) for services required by the 

8 debtor or the court that the attorney 

9 should not have reasonably anticipated at 

10 the time of the agreement; 

11 ‘‘(D) does not provide for the payment of 

12 interest or any additional fees based on delay in 

13 payment or risk of nonpayment or for costs of 

14 collection on installment payments; and 

15 ‘‘(E) does not include a pre-dispute arbi16 tration agreement or a pre-dispute joint-action 

17 waiver with respect to any dispute under the 

18 agreement; 

19 ‘‘(2) the attorney has discussed with the debtor 

20 the attorney’s fees and expenses under the agree21 ment and the consequences of the attorney’s filing 

22 the certification required under paragraph (3), and, 

23 after full disclosure, the debtor consents to the filing 

24 of the certification; and 


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•S 4991 IS

1 ‘‘(3) the attorney files with the court a certifi2 cation, in accordance with rule 9011 of the Federal 

3 Rules of Bankruptcy Procedure, with respect to the 

4 agreement that— 

5 ‘‘(A) the conditions specified in paragraphs 

6 (1) and (2) are satisfied; and 

7 ‘‘(B) the enforcement of the agreement 

8 would not impose an undue hardship on the 

9 debtor or the debtor’s dependents. 

10 ‘‘(d) In a case under chapter 10 of this title, any as11 signment, factoring, or transfer of rights or amounts, or 

12 of rights or authority to collect any such amounts, due 

13 under an agreement between the debtor and the debtor’s 

14 attorney is void. 

15 ‘‘(e) The bankruptcy court shall have exclusive juris16 diction over any disputes under an agreement that is sub17 ject to this section, whether or not the case has been 

18 closed.’’. 

19 (o) COMPENSATION OF OFFICERS.— 

20 (1) IN GENERAL.—Section 330 of title 11, 

21 United States Code, is amended— 

22 (A) in subsection (a)(4)(B), by striking 

23 ‘‘In a chapter 12 or chapter 13 case in which 

24 the debtor is an individual,’’ and inserting ‘‘In 


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•S 4991 IS

1 a chapter 10 or 12 case in which the debtor is 

2 an individual,’’; 

3 (B) by redesignating subsections (c) and 

4 (d) as subsections (d) and (f), respectively; 

5 (C) by striking ‘‘(b)(1) There’’ and insert6 ing ‘‘(b) There’’; 

7 (D) by striking ‘‘title $45’’ and inserting 

8 ‘‘title $75’’; 

9 (E) by striking ‘‘(2) The Judicial’’ and in10 serting ‘‘(c) The Judicial’’; 

11 (F) by striking ‘‘(A) shall’’ and inserting 

12 ‘‘(1) shall’’; 

13 (G) by striking ‘‘(B) may’’ and inserting 

14 ‘‘(2) may’’; 

15 (H) by striking ‘‘paid under paragraph 

16 (1).’’ and inserting ‘‘paid under subsection 

17 (b).’’; 

18 (I) in subsection (d), as so redesignated, 

19 by striking ‘‘in a case under chapter 12 or 13’’ 

20 and inserting ‘‘in a case under chapter 10 or 

21 12’’; and 

22 (J) by inserting after subsection (d), as so 

23 redesignated, the following: 


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•S 4991 IS

1 ‘‘(e) There shall be paid from the filing fee in a case 

2 under chapter 10 of this title $120 to the trustee serving 

3 in such case, after such trustee’s services are rendered.’’. 

4 (2) CONFORMING AMENDMENT.—Section 

5 589a(b)(7) of title 28, United States Code, is 

6 amended by striking ‘‘section 330(d)’’ and inserting 

7 ‘‘section 330(f)’’. 

8 (p) MEETINGS OF CREDITORS AND EQUITY SECU9 RITY HOLDERS.—Section 341 of title 11, United States 

10 Code, is amended— 

11 (1) in subsection (c), by striking ‘‘chapter 7 or 

12 13’’ and inserting ‘‘chapter 10 of this title’’; 

13 (2) in subsection (d)— 

14 (A) in the matter preceding paragraph (1), 

15 by striking ‘‘chapter 7’’ and inserting ‘‘chapter 

16 10’’; 

17 (B) in paragraph (1), by adding ‘‘and’’ at 

18 the end; 

19 (C) by striking paragraph (2); 

20 (D) by redesignating paragraph (3) as 

21 paragraph (2); 

22 (E) in paragraph (2), as so redesignated, 

23 by striking ‘‘; and’’ and inserting a period; and 

24 (F) by striking paragraph (4); and 

25 (3) by adding at the end the following: 


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•S 4991 IS

1 ‘‘(f) In a case under chapter 10 of this title— 

2 ‘‘(1) the meeting of creditors under subsection 

3 (a) may be convened electronically and allow remote 

4 appearances of all parties; 

5 ‘‘(2)(A) the debtor shall not be required to ap6 pear in person if it would impose an unreasonable 

7 burden on the debtor; and 

8 ‘‘(B) there shall be a rebuttable presumption 

9 that in-person attendance at the meeting of creditors 

10 under subsection (a) is an unreasonable burden on 

11 the debtor if the debtor’s address on the bankruptcy 

12 petition is more than 10 miles from the location of 

13 the courthouse of the bankruptcy court where the 

14 meeting of creditors under subsection (a) would 

15 occur; and 

16 ‘‘(3) the meeting of creditors under subsection 

17 (a) shall be scheduled at such times to avoid conflict 

18 with the debtor’s employment.’’. 

19 (q) NOTICE.—Section 342 of title 11, United States 

20 Code, is amended— 

21 (1) by striking subsections (b) and (d); 

22 (2) by redesignating subsections (c), (e), (f), 

23 and (g) as subsections (b), (c), (d), and (e), respec24 tively; 


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•S 4991 IS

1 (3) in subsection (c)(1), as so redesignated, by 

2 striking ‘‘chapter 7 or 13’’ and inserting ‘‘chapter 

3 10’’; 

4 (4) in subsection (d), as so redesignated— 

5 (A) in paragraph (1), by striking ‘‘chapters 

6 7 or 13’’ and inserting ‘‘chapter 10’’; and 

7 (B) in paragraph (2)— 

8 (i) by striking ‘‘chapter 7 or 13’’ and 

9 inserting ‘‘chapter 10’’; and 

10 (ii) by striking ‘‘subsection (e)’’ and 

11 inserting ‘‘subsection (c)’’; and 

12 (5) in subsection (e)(2), as so redesignated, by 

13 striking ‘‘section 362(k)’’ and inserting ‘‘section 

14 362(j)’’. 

15 (r) UNCLAIMED PROPERTY.—Section 347(a) of title 

16 11, United States Code, is amended by striking ‘‘under 

17 section’’ and all that follows through ‘‘as the case may 

18 be’’ and inserting ‘‘under section 726, 1025, 1194, or 

19 1226 of this title under chapter 7, chapter 10, subchapter 

20 V of chapter 11, or chapter 12 of this title, as the case 

21 may be’’. 

22 (s) EFFECT OF CONVERSION.—Section 348 of title 

23 11, United States Code, is amended— 

24 (1) in subsection (b)— 


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•S 4991 IS

1 (A) by striking ‘‘sections 701(a), 

2 727(a)(10), 727(b), 1102(a), 1110(a)(1), 

3 1121(b), 1121(c), 1141(d)(4), 1201(a), 1221, 

4 1228(a), 1301(a), and 1305(a) of this title’’ 

5 and inserting ‘‘sections 701(a), 1009(a), 

6 1025(b), 1027(a), 1027(b), 1031(c), 1102(a), 

7 1110(a)(1), 1121(b), 1121(c), 1141(d)(4), 

8 1201(a), 1221, and 1228(a) of this title’’; and 

9 (B) by striking ‘‘under section 706, 1112, 

10 1208, or 1307 of this title’’ and inserting 

11 ‘‘under section 706, 1005, 1053(c), 1112, or 

12 1208 of this title’’; 

13 (2) in subsection (c), by striking ‘‘under section 

14 706, 1112, 1208, or 1307 of this title’’ and inserting 

15 ‘‘under section 706, 1005, 1053(c), 1112, or 1208’’ 

16 of this title; 

17 (3) in subsection (d), by striking ‘‘under section 

18 1112, 1208, or 1307 of this title’’ and inserting 

19 ‘‘under section 1005, 1053(c), 1112, or 1208 of this 

20 title’’; 

21 (4) in subsection (e), by striking ‘‘under section 

22 706, 1112, 1208, or 1307 of this title’’ and inserting 

23 ‘‘under section 706, 1005, 1053(c), 1112, or 1208’’ 

24 of this title; and 

25 (5) by striking subsection (f). 


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•S 4991 IS

1 (t) EFFECT OF DISMISSAL.—Section 349 of title 11, 

2 United States Code, is amended— 

3 (1) by striking subsection (a) and inserting the 

4 following: 

5 ‘‘(a) The dismissal of a case shall not— 

6 ‘‘(1) bar the discharge, in a later case, of debts 

7 that were dischargeable in the case dismissed, except 

8 as provided in section 523, 1031, 1141, or 1228; or 

9 ‘‘(2) prejudice the debtor with regard to the fil10 ing of a subsequent petition, except as provided in 

11 subsection (g) or (h) of section 109.’’; and 

12 (2) in subsection (b)(1)(B), by striking ‘‘or 

13 724(a) of this title,’’ and inserting ‘‘724(a), or 1041 

14 of this title,’’. 

15 (u) AUTOMATIC STAY.— 

16 (1) IN GENERAL.—Section 362 of title 11, 

17 United States Code, is amended— 

18 (A) in subsection (a)— 

19 (i) in paragraph (3), by inserting ‘‘or 

20 to retain’’ after ‘‘to exercise control over’’; 

21 (ii) in paragraph (7), by striking 

22 ‘‘and’’ at the end; 

23 (iii) in paragraph (8), by striking the 

24 period at the end and inserting ‘‘; and’’; 

25 and 


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•S 4991 IS

1 (iv) by adding at the end the fol2 lowing: 

3 ‘‘(9) in a case under chapter 10 of this title, at 

4 any time before the earliest of a conversion or dis5 missal under section 1005 of this title, a dismissal 

6 under section 1053(c) of this title, or a discharge 

7 under section 1031 of this title, any act to alter, 

8 refuse, or discontinue utility service provided to the 

9 debtor under an agreement entered into before the 

10 entry of the order for relief.’’; 

11 (B) in subsection (b)— 

12 (i) by striking paragraph (22); 

13 (ii) by redesignating paragraphs (23), 

14 (24), (25), (26), (27), and (28) as para15 graphs (22), (23), (24), (25), (26), and 

16 (27), respectively; 

17 (iii) in paragraph (22), as so redesig18 nated, by striking ‘‘subsection (m)’’ and in19 serting ‘‘subsection (l)’’; 

20 (iv) in paragraph (26), as so redesig21 nated, by striking ‘‘and’’ at the end; 

22 (v) in paragraph (27), as so redesig23 nated, by striking the period and inserting 

24 ‘‘; and’’; and 


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•S 4991 IS

1 (vi) by striking the matter following 

2 paragraph (27), as so redesignated and in3 serting the following: 

4 ‘‘(28) under subsection (a), over retention of 

5 property of the estate subject to a potential loss of 

6 value due to accident, casualty, or theft unless the 

7 party entitled to possession provides proof of insur8 ance or other security sufficient to protect the cred9 itor against such loss of value.’’; 

10 (C) in subsection (c)— 

11 (i) in the matter preceding paragraph 

12 (1), by striking ‘‘(f), and (h)’’ and insert13 ing ‘‘and (f)’’; 

14 (ii) by striking paragraphs (2) and (3) 

15 and inserting the following: 

16 ‘‘(2) in a case under chapter 7, 9, 11, or 12, 

17 the stay of any other act under subsection (a) of this 

18 section continues until the earliest of— 

19 ‘‘(A) the time the case is closed; 

20 ‘‘(B) the time the case is dismissed; or 

21 ‘‘(C) if the case is a case under chapter 9, 

22 11, or 12, the time a discharge is granted or 

23 denied; 


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1 ‘‘(3) in a case under chapter 10, the stay of any 

2 other act under subsection (a) of this section con3 tinues until the earliest of— 

4 ‘‘(A) the time the case is closed; 

5 ‘‘(B) the time the case is dismissed; or 

6 ‘‘(C) the time specified in section 1021(e) 

7 has expired without the debtor having filed a 

8 plan; and’’; and 

9 (iii) in subparagraph (A)(i) of para10 graph (4), by striking ‘‘dismissed, other 

11 than a case refiled under a chapter other 

12 than chapter 7 after dismissal under sec13 tion 707(b),’’ and inserting ‘‘dismissed,’’; 

14 (D) in subsection (e)(2), by striking ‘‘chap15 ter 7, 11, or 13’’ and inserting ‘‘chapter 10 or 

16 11’’; 

17 (E) by striking subsections (h) and (i); 

18 (F) by redesignating subsections (j) 

19 through (o) as subsections (h) through (m) re20 spectively; 

21 (G) in subsection (i), as so redesignated— 

22 (i) by striking ‘‘(1) Except as pro23 vided in paragraph (2), an’’ and inserting 

24 ‘‘An’’; and 

25 (ii) by striking paragraph (2); and 


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•S 4991 IS

1 (H) by adding at the end the following: 

2 ‘‘(n) Any agreement of the debtor entered into before 

3 the filing of the petition to waive the provisions of this 

4 section or any other provision of this title is void.’’. 

5 (2) CONFORMING AMENDMENTS.— 

6 (A) Section 1519(f) of title 11, United 

7 States Code, is amended by striking ‘‘section 

8 362(o)’’ and inserting ‘‘section 362(m)’’. 

9 (B) Section 1521(f) of title 11, United 

10 States Code, is amended by striking ‘‘section 

11 362(o)’’ and inserting ‘‘section 362(m)’’. 

12 (v) USE, SALE, OR LEASE OF PROPERTY.—Section 

13 363 of title 11, United States Code, is amended— 

14 (1) in subsection (c)(1) by striking ‘‘section 

15 721, 1108, 1183, 1184, 1203, 1204 or 1304 of this 

16 title’’ and inserting ‘‘section 721, 1003, 1108, 1183, 

17 1184, 1203, or 1204 of this title’’; and 

18 (2) in subsection (l) by striking ‘‘under chapter 

19 11, 12, or 13 of this title’’ and inserting ‘‘under 

20 chapter 10, 11, or 12 of this title’’. 

21 (w) OBTAINING CREDIT.—Section 364(a) of title 11, 

22 United States Code, is amended by striking ‘‘section 721, 

23 1108, 1183, 1184, 1203, 1204, or 1304 of this title,’’ and 

24 inserting ‘‘section 721, 1108, 1183, 1183, 1203, or 1204 

25 of this title,’’. 


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•S 4991 IS

1 (x) EXECUTORY CONTRACTS AND UNEXPIRED

2 LEASES.—Section 365 of title 11, United States Code, is 

3 amended— 

4 (1) in subsection (d)(2), by striking ‘‘under 

5 chapter 9, 11, 12, or 13 of this title’’ and inserting 

6 ‘‘under chapter 9, 10, 11, or 12 of this title’’; 

7 (2) in subsection (g)— 

8 (A) in paragraph (1), by striking ‘‘under 

9 chapter 9, 11, 12, or 13 of this title,’’ and in10 serting ‘‘under chapter 9, 10, 11, or 12 of this 

11 title,’’; and 

12 (B) in paragraph (2)— 

13 (i) in the matter preceding subpara14 graph (A), by striking ‘‘under chapter 9, 

15 11, 12, or 13 of this title’’ and inserting 

16 ‘‘under chapter 9, 10, 11, or 12 of this 

17 title’’; 

18 (ii) in subparagraph (A) by striking 

19 ‘‘under section 1112, 1208 or 1307 of this 

20 title,’’ and inserting ‘‘under section 1005, 

21 1053(c), 1112, or 1208 of this title,’’; and 

22 (iii) in subparagraph (B), in the mat23 ter preceding clause (i), by striking ‘‘under 

24 section 1112, 1208 or 1307 of this title’’ 


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•S 4991 IS

1 and inserting ‘‘under section 1005, 

2 1053(c), 1112, or 1208 of this title’’; and 

3 (3) by striking subsection (p) and inserting the 

4 following: 

5 ‘‘(p) Notwithstanding any provision in a lease or ap6 plicable nonbankruptcy law, the following shall apply: 

7 ‘‘(1)(A) If the debtor is an individual, the trust8 ee shall be deemed to have abandoned any unexpired 

9 lease of residential real property that is the debtor’s 

10 principal residence of which the debtor or the debt11 or’s spouse or dependents is a tenant. 

12 ‘‘(B)(i) Notwithstanding any other provision of 

13 this section, the debtor may assume such a lease— 

14 ‘‘(I) without curing any monetary defaults 

15 under the lease that aggregate no more than 

16 the amount described in clause (iii); and 

17 ‘‘(II) without adequate assurance of future 

18 performance. 

19 ‘‘(ii) If there are monetary defaults under the 

20 lease that aggregate to more than the amount de21 scribed in clause (iii), the debtor may not assume 

22 such lease unless all monetary defaults in excess of 

23 the amount described in clause (iii) are cured. 


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•S 4991 IS

1 ‘‘(iii) The amount described in this clause is the 

2 amount equal to 6 times the monthly rent to be paid 

3 by the debtor under the lease. 

4 ‘‘(C) Any monetary defaults on such a lease left 

5 uncured shall become claims against the estate in 

6 accordance with section 365(g). 

7 ‘‘(D)(i) All non-monetary defaults on such a 

8 lease shall be deemed waived, except those relating 

9 to health or safety, which shall require permission of 

10 the court to waive or modify if the lessor objects to 

11 their waiver or modification. 

12 ‘‘(ii) Any pecuniary loss in accordance with 

13 such a non-monetary default shall constitute a claim 

14 against the estate in accordance with subsection 

15 365(g). 

16 ‘‘(E) Such a lease not assumed by the debtor, 

17 including satisfaction or adequate assurance of any 

18 cure required within 60 days of the order of relief, 

19 under this paragraph shall return to the bankruptcy 

20 estate. 

21 ‘‘(2)(A) If the debtor is an individual and if an 

22 unexpired lease of property not subject to paragraph 

23 (1) is rejected or not timely assumed by the trustee 

24 under subsection (d), the debtor may move to as25 sume the lease. 


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•S 4991 IS

1 ‘‘(B) The court— 

2 ‘‘(i) may approve such an assumption if 

3 the debtor cures any monetary default within 

4 90 days after the date of assumption; and 

5 ‘‘(ii) shall withhold any discharge of the 

6 debtor until such cure is made. 

7 ‘‘(C) The debtor’s interest in the lease or prop8 erty that is the subject of the lease ceases to be 

9 property of the estate if— 

10 ‘‘(i) the debtor fails to move to assume the 

11 lease within 14 days after the lease is rejected 

12 or not timely assumed by the trustee; or 

13 ‘‘(ii) the debtor’s motion to assume the 

14 lease is denied. 

15 ‘‘(D) All non-monetary defaults on such a lease 

16 shall be deemed waived except those relating to 

17 health or safety, which shall require permission of 

18 the court upon motion to waive or modify if the les19 sor objects to their waiver or modification. 

20 ‘‘(3) In this subsection, the term ‘lease’ does 

21 not include— 

22 ‘‘(A) an agreement that is a security inter23 est under applicable nonbankruptcy law, irre24 spective of its form; or 


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•S 4991 IS

1 ‘‘(B) a lease the term of which extends be2 yond the remaining economic life of the prop3 erty.’’. 

4 (y) UTILITY SERVICE.—Section 366(b) of title 11, 

5 United States Code, is amended by striking ‘‘Such utility’’ 

6 and inserting ‘‘In a case other than under chapter 10 of 

7 this title, such utility’’. 

8 (z) FILING OF PROOFS OF CLAIMS OR INTERESTS.— 

9 Section 501 of title 11, United States Code, is amended 

10 by adding at the end the following: 

11 ‘‘(f)(1) Any creditor that files a claim, and any attor12 ney representing such creditor, shall at the time of filing 

13 certify, under penalty of perjury, whether the creditor has 

14 a beneficial interest in the claim and to what extent. 

15 ‘‘(2) If the creditor does not hold the entire beneficial 

16 interest in the claim, the creditor shall disclose in the cer17 tification under paragraph (1) the identity of the party 

18 or parties holding the beneficial interest. 

19 ‘‘(3) The creditor shall promptly notify the court, the 

20 trustee, the United States Trustee, and the debtor of any 

21 updates necessary to maintain the accuracy of the certifi22 cation under paragraph (1). 

23 ‘‘(g) The filing of a claim under this title shall not 

24 revive any period of limitations under applicable nonbank25 ruptcy law.’’. 


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•S 4991 IS

1 (aa) ALLOWANCE OF CLAIMS OR INTERESTS.— 

2 (1) IN GENERAL.—Section 502 of title 11, 

3 United States Code, is amended— 

4 (A) in subsection (b)— 

5 (i) in the matter preceding paragraph 

6 (1), by striking ‘‘subsections (e)(2), (f), 

7 (g), (h) and (i)’’ and inserting ‘‘subsections 

8 (c), (f)(2), (g), (h), (i) and (j)’’; 

9 (ii) in paragraph (2), by striking ‘‘in10 terest;’’ and inserting ‘‘interest, including 

11 under a prepayment penalty, yield mainte12 nance clause, make-whole clause, or similar 

13 contractual provision;’’; 

14 (iii) by redesignating paragraphs (3) 

15 through (9) as paragraphs (5) through 

16 (11), respectively; 

17 (iv) by inserting after paragraph (2) 

18 the following: 

19 ‘‘(3) such claim is for attorneys’ fees incurred 

20 after the entry of the order for relief under this title, 

21 except to the extent permitted under section 503 or 

22 506 of this title; 

23 ‘‘(4) notwithstanding section 506(b), such claim 

24 is for a fee incurred under section 1930(b) of title 

25 28;’’; 


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•S 4991 IS

1 (v) in paragraph (10), as so redesig2 nated, by striking ‘‘or’’ at the end; and 

3 (vi) in paragraph (11), as so redesig4 nated, by striking ‘‘may provide,’’ and all 

5 that follows and inserting ‘‘may provide.’’; 

6 (B) by striking subsection (k); 

7 (C) by redesignating subsections (d), (e), 

8 (f), (g), (h), (i), and (j) as subsections (e), (f), 

9 (g), (h), (i), (j), and (k), respectively; 

10 (D) by inserting after subsection (c) the 

11 following: 

12 ‘‘(d) The court shall, after notice and a hearing, dis13 allow any claim if— 

14 ‘‘(1) the creditor, an affiliate of the creditor, an 

15 agent of the creditor, a direct or indirect transferor 

16 of the claim to the creditor, or an affiliate of such 

17 transferor engaged in inequitable conduct (which 

18 shall include a violation of Federal or State law) 

19 that harmed the debtor, whether or not the inequi20 table conduct was connected with the claim or an ob21 ligation that gave rise to the claim; or 

22 ‘‘(2) the creditor, an affiliate of the creditor, an 

23 agent of the creditor, a direct or indirect transferor 

24 of the claim to the creditor, or an affiliate of such 

25 transferor violated a Federal consumer financial law, 


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•S 4991 IS

1 as defined in section 1002 of the Consumer Finan2 cial Protection Act of 2010 (12 U.S.C. 5481), in 

3 connection with the claim or an obligation that gave 

4 rise to the claim.’’; 

5 (E) in subsection (e), as so redesignated, 

6 by striking ‘‘or 724(a) of this title’’ and insert7 ing ‘‘724(a) or 1041 of this title’’; 

8 (F) in subsection (f), as so redesignated, in 

9 paragraph (2), by striking ‘‘or disallowed under 

10 subsection (d)’’ and inserting ‘‘or disallowed 

11 under subsection (d) or (e)’’; 

12 (G) in subsection (g), as so redesignated, 

13 by striking ‘‘or disallowed under subsection (d) 

14 or (e)’’ and inserting ‘‘or disallowed under sub15 section (d), (e), or (f)’’; 

16 (H) in subsection (h), as so redesignated— 

17 (i) in paragraph (1)— 

18 (I) by striking ‘‘chapter 9, 11, 

19 12, or 13’’ and inserting ‘‘chapter 9, 

20 10, 11, or 12’’; and 

21 (II) by striking ‘‘or disallowed 

22 under subsection (d) or (e)’’ and in23 serting ‘‘or disallowed under sub24 section (d), (e), or (f)’’; and 


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•S 4991 IS

1 (ii) in paragraph (2), by striking ‘‘or 

2 disallowed under subsection (d) or (e)’’ and 

3 inserting ‘‘or disallowed under subsection 

4 (d), (e), or (f)’’; 

5 (I) in subsection (i), as so redesignated, by 

6 striking ‘‘or disallowed under subsection (d) or 

7 (e)’’ and inserting ‘‘or disallowed under sub8 section (d), (e), or (f)’’; 

9 (J) in subsection (j), as so redesignated, by 

10 striking ‘‘or disallowed under subsection (d) or 

11 (e)’’ and inserting ‘‘or disallowed under sub12 section (d), (e), or (f)’’; 

13 (K) by adding at the end the following: 

14 ‘‘(l)(1)(A) If a claim that is disallowed under sub15 section (b) of this section was filed in bad faith, the court 

16 shall grant judgment against the creditor and in favor of 

17 the estate for— 

18 ‘‘(i) costs and reasonable attorneys’ fees; and 

19 ‘‘(ii) punitive damages, as are necessary to 

20 deter future bad faith claim filing by the creditor. 

21 ‘‘(B) A claim filed in bad faith includes a claim that 

22 is filed without an actual, reasonable, good faith belief that 

23 the debt on which it is based is within the applicable statu24 tory limitations period. 


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•S 4991 IS

1 ‘‘(C) Not more than 50 percent of the total amount 

2 of any punitive damages awarded to the estate under sub3 paragraph (A) shall be reserved for the trustee, debtor, 

4 or both and shall be exempt from the property of the es5 tate, notwithstanding section 522. 

6 ‘‘(2) If a claim is disallowed under subsection (d), the 

7 court shall grant judgment against the creditor and in 

8 favor of the estate for costs and reasonable attorneys’ fees. 

9 ‘‘(3) The estate may offset the liability of a creditor 

10 under this subsection against any distribution to be made 

11 on the claim of the creditor.’’. 

12 (2) CONFORMING AMENDMENTS.— 

13 (A) Section 101 of title 11, United States 

14 Code, is amended in paragraph (12)(B), as re15 designated by this section, by striking ‘‘502(f), 

16 502(g), 502(h) or 502(i)’’ and inserting ‘‘sub17 section (g), (h), (i), or (j) of section 502’’. 

18 (B) Section 501(d) of title 11, United 

19 States Code, is amended by striking ‘‘in section 

20 502(e)(2), 502(f), 502(g), 502(h) or 502(i)’’ 

21 and inserting ‘‘in subsection (f)(2), (g), (h), (i), 

22 or (j) of section 502’’. 

23 (C) Section 503(b) of title 11, United 

24 States Code, is amended— 


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•S 4991 IS

1 (i) in the matter preceding paragraph 

2 (1), by striking ‘‘section 502(f)’’ and in3 serting ‘‘section 502(g)’’; and 

4 (ii) in paragraph (7), by striking ‘‘sec5 tion 502(b)(6)’’ and inserting ‘‘section 

6 502(b)(8)’’. 

7 (D) Section 506(d)(1) of title 11, United 

8 States Code, is amended by striking ‘‘section 

9 502(b)(5) or 502(e)’’ and inserting ‘‘subsection 

10 (b)(7) or (f) of section 502’’. 

11 (E) Section 507(a)(3) of title 11, United 

12 States Code, is amended by striking ‘‘section 

13 502(f)’’ and inserting ‘‘section 502(g)’’. 

14 (F) Section 509(b)(1)(B) of title 11, 

15 United States Code, is amended by striking 

16 ‘‘section 502(e)’’ and inserting ‘‘section 

17 502(f)’’. 

18 (G) Section 544(b)(1) of title 11, United 

19 States Code, is amended by striking ‘‘section 

20 502(e)’’ and inserting ‘‘section 502(f)’’. 

21 (H) Section 929 of title 11, United States 

22 Code, is amended by striking ‘‘section 

23 502(b)(6)’’ and inserting ‘‘section 502(b)(8)’’. 


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•S 4991 IS

1 (I) Section 1114(j) of title 11, United 

2 States Code, is amended by striking ‘‘section 

3 502(b)(7)’’ and inserting ‘‘section 502(b)(9)’’. 

4 (J) Section 1141(d)(1)(A) of title 11, 

5 United States Code, is amended by striking 

6 ‘‘section 502(g), 502(h), or 502(i)’’ and insert7 ing ‘‘subsection (h), (i), or (j) of section 502’’. 

8 (K) Section 1232(d)(4) of title 11, United 

9 States Code, is amended by striking ‘‘or dis10 allowed under subsection (d) or (e) of section 

11 502’’ and inserting ‘‘or disallowed under sub12 section (d), (e), or (f) of section 502’’. 

13 (L) Section 311 of PROMESA (48 U.S.C. 

14 2171) is amended by striking ‘‘502(b)(6)’’ and 

15 inserting ‘‘502(b)(8)’’. 

16 (bb) DETERMINATION OF SECURED STATUS.—Sec17 tion 506 of title 11, United States Code, is amended— 

18 (1) in subsection (a), by striking paragraph (2) 

19 and inserting the following: 

20 ‘‘(2) In a case under chapter 10 of this title, 

21 any interest of a creditor in property of the debtor 

22 or the estate shall be determined by its realizable 

23 value as of the date of the filing of the petition.’’; 

24 (2) in subsection (b), by striking ‘‘interest on 

25 such claim,’’ and all that follows and inserting ‘‘inVerDate Sep 11 2014 20:26 Dec 29, 2020 Jkt 019200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\S4991.IS S4991

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•S 4991 IS

1 terest on such claim and any reasonable fees, costs, 

2 or charges provided for under the agreement or ap3 plicable nonbankruptcy law under which such claim 

4 arose, with post-petition interest credited to the al5 lowed secured claim before other fees, costs, or 

6 charges.’’; and 

7 (3) in subsection (d), in the matter preceding 

8 paragraph (1) by striking ‘‘allowed secured claim,’’ 

9 and inserting ‘‘allowed secured claim pursuant to 

10 subsection (a),’’. 

11 (cc) PRIORITIES.— 

12 (1) IN GENERAL.—Section 507(a) of title 11, 

13 United States Code, is amended— 

14 (A) in paragraph (1)— 

15 (i) by striking subparagraph (B); 

16 (ii) by redesignating subparagraph 

17 (C) as subparagraph (B); and 

18 (iii) in subparagraph (B), as so redes19 ignated— 

20 (I) by striking ‘‘701, 702, 703, 

21 1104, 1202, or 1302’’ and inserting 

22 ‘‘1001, 1104, or 1202’’; and 

23 (II) by striking ‘‘subparagraphs 

24 (A) and (B)’’ and inserting ‘‘subpara25 graph (A)’’; and 


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•S 4991 IS

1 (B) in paragraph (7), by inserting ‘‘includ2 ing the purchase of a store gift card,’’ after 

3 ‘‘purchase of services,’’. 

4 (2) CONFORMING AMENDMENTS.— 

5 (A) Section 724(b)(2) of title 11, United 

6 States Code, is amended by striking ‘‘section 

7 507(a)(1)(C)’’ and inserting ‘‘section 

8 507(a)(1)(B)’’. 

9 (B) Section 1222(a)(4) of title 11, United 

10 States Code, is amended— 

11 (i) in paragraph (3), by adding ‘‘and’’ 

12 at the end; 

13 (ii) by striking paragraph (4); and 

14 (iii) by redesignating paragraph (5) as 

15 paragraph (4). 

16 (dd) RATE OF INTEREST ON TAX CLAIMS.—Section 

17 511 of title 11, United States Code, is amended by adding 

18 at the end the following: 

19 ‘‘(c) This section shall not apply in a case under 

20 chapter 10 of this title.’’. 

21 (ee) DEBTOR’S DUTIES.—Section 521, of title 11, 

22 United States Code, is amended by striking subsections 

23 (a) through (j) and inserting the following: 

24 ‘‘(a) The debtor shall— 

25 ‘‘(1) file— 


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•S 4991 IS

1 ‘‘(A) a list of creditors; and 

2 ‘‘(B) unless the court orders otherwise— 

3 ‘‘(i) a schedule of assets and liabil4 ities; 

5 ‘‘(ii) a schedule of current income and 

6 current expenditures; 

7 ‘‘(iii) a statement of the debtor’s fi8 nancial affairs; 

9 ‘‘(iv) a statement disclosing any rea10 sonably anticipated increase in income or 

11 expenditures over the 12-month period fol12 lowing the date of the filing of the petition; 

13 and 

14 ‘‘(v) if the debtor’s annual income cre15 ates or increases the minimum payment 

16 obligation as described in clause (ii) or (iii) 

17 of section 101(54)(B) of this title— 

18 ‘‘(I) a statement of the debtor’s 

19 annual income; and 

20 ‘‘(II) the calculations that deter21 mine the amount by which the debt22 or’s annual income creates or in23 creases the minimum payment obliga24 tion; 


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•S 4991 IS

1 ‘‘(2) if a trustee is serving in the case, cooper2 ate with the trustee as necessary to enable the trust3 ee to perform the trustee’s duties under this title; 

4 ‘‘(3) appear at the hearing required under sec5 tion 524(d) of this title; and 

6 ‘‘(4) unless a trustee is serving in the case, con7 tinue to perform the obligations required of the ad8 ministrator (as defined in section 3 of the Employee 

9 Retirement Income Security Act of 1974) of an em10 ployee benefit plan if at the time of the commence11 ment of the case the debtor (or any entity des12 ignated by the debtor) served as such administrator. 

13 ‘‘(b) In a case under chapter 10 of this title: 

14 ‘‘(1) Not later than 7 days before the date first 

15 set for the first meeting of creditors, the debtor shall 

16 provide to the trustee documentation that establishes 

17 the debtor’s income in one or more of the following 

18 forms: 

19 ‘‘(A) One or more payment advices, issued 

20 within 60 days before the date of the filing of 

21 the petition, showing the debtor’s year-to-date 

22 income. 

23 ‘‘(B) A copy of the Federal income tax re24 turn required under applicable law (or at the 

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•S 4991 IS

1 turn) for the most recent tax year ending im2 mediately before the commencement of the case 

3 and for which a Federal income tax return was 

4 filed. 

5 ‘‘(C) A W–2 form issued by each employer 

6 for the tax year preceding the year the petition 

7 is filed. 

8 ‘‘(D) Other evidence of payment received 

9 within 60 days before the date of the filing of 

10 the petition that establishes the debtor’s in11 come. 

12 ‘‘(2) If the debtor’s annual income creates or 

13 increases the minimum payment obligation as de14 scribed in clause (ii) or (iii) of section 101(54)(B) 

15 of this title, the debtor shall, to the extent not al16 ready provided under paragraph (1), provide to the 

17 trustee as documentation of income— 

18 ‘‘(A) a copy of the Federal income tax re19 turn required under applicable law (or at the 

20 election of the debtor, a transcript of such re21 turn) for the most recent tax year ending im22 mediately before the commencement of the case 

23 and for which a Federal income tax return was 

24 required and filed; and 


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•S 4991 IS

1 ‘‘(B) copies of all payment advices or other 

2 evidence of payment received within 60 days be3 fore the date of the filing of the petition, by the 

4 debtor from any employer of the debtor. 

5 ‘‘(3) Notwithstanding paragraphs (1) and (2), 

6 the debtor shall provide additional documentation of 

7 income if requested by the trustee or the United 

8 States trustee upon reasonable grounds to believe 

9 the debtor’s actual income is greater than disclosed 

10 and would create or increase the minimum payment 

11 obligation as described in clause (ii) or (iii) of sec12 tion 101(54)(B) of this title. 

13 ‘‘(c) If the schedule of current income required by 

14 subsection (a)(1)(B)(ii) discloses income that is not more 

15 than 80 percent of the amount of annual income that 

16 would trigger the documentation obligations in subsection 

17 (b)(2) and in the absence of actual knowledge of facts to 

18 the contrary, an attorney for the debtor or a bankruptcy 

19 petition preparer for the debtor under section 110 of this 

20 title may rely on the schedule of current income to deter21 mine that— 

22 ‘‘(1) the documentation requirements of sub23 section (b)(2) do not apply; and 


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•S 4991 IS

1 ‘‘(2) the debtor is not required to file the state2 ment of annual income required by subsection 

3 (a)(1)(B)(v). 

4 ‘‘(d) In a case under chapter 7 or 11: 

5 ‘‘(1) The debtor shall provide— 

6 ‘‘(A) not later than 7 days before the date 

7 first set for the first meeting of creditors, to the 

8 trustee a copy of the Federal income tax return 

9 required under applicable law (or at the election 

10 of the debtor, a transcript of such return) for 

11 the most recent tax year ending immediately be12 fore the commencement of the case and for 

13 which a Federal income tax return was filed; 

14 and 

15 ‘‘(B) at the same time the debtor complies 

16 with subparagraph (A), a copy of such return 

17 (or if elected under subparagraph (A), such 

18 transcript) to any creditor that timely requests 

19 such copy. 

20 ‘‘(2) If the debtor fails to comply with subpara21 graph (A) or (B) of paragraph (1), the court shall 

22 dismiss the case unless the debtor demonstrates that 

23 the failure to so comply is due to circumstances be24 yond the debtors’s control. 


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•S 4991 IS

1 ‘‘(3) If a creditor requests a copy of such tax 

2 return or such transcript and if the debtor fails to 

3 provide a copy of such tax return or such transcript 

4 to such creditor at the time the debtor provides such 

5 tax return or such transcript to the trustee, the 

6 court shall dismiss the case unless the debtor dem7 onstrates that the failure to provide a copy of such 

8 tax return or such transcript is due to circumstances 

9 beyond the debtor’s control. 

10 ‘‘(e) Failure by the debtor to disclose a cause of ac11 tion in a schedule required to be filed under this section 

12 shall not alone be grounds to dismiss a lawsuit brought 

13 to enforce the cause of action. 

14 ‘‘(f) If requested by the United States trustee or by 

15 the trustee, the debtor shall provide— 

16 ‘‘(1) a document that establishes the identity of 

17 the debtor, including a driver’s license, passport, or 

18 other document that contains a photograph of the 

19 debtor; or 

20 ‘‘(2) such other personal identifying information 

21 relating to the debtor that establishes the identity of 

22 the debtor. 

23 ‘‘(g) At the request of the court, the trustee, or the 

24 United States trustee, a debtor under chapter 10 or 11 

25 who is an individual shall file with the court— 


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•S 4991 IS

1 ‘‘(1) at the same time filed with the taxing au2 thority, a copy of each Federal income tax return re3 quired under applicable law (or at the election of the 

4 debtor, a transcript of such tax return) with respect 

5 to each tax year of the debtor ending while the case 

6 is pending under such chapter; 

7 ‘‘(2) at the same time filed with the taxing au8 thority, each Federal income tax return required 

9 under applicable law (or at the election of the debt10 or, a transcript of such tax return) that had not 

11 been filed with such authority as of the date of the 

12 commencement of the case and that was subse13 quently filed for any tax year of the debtor ending 

14 in the 3-year period ending on the date of the com15 mencement of the case; and 

16 ‘‘(3) a copy of each amendment to any Federal 

17 income tax return or transcript filed with the court 

18 under paragraph (1) or (2). 

19 ‘‘(h)(1) Notwithstanding any other provision of this 

20 title, if the debtor fails to file a tax return that becomes 

21 due after the commencement of the case or to properly 

22 obtain an extension of the due date for filing such return, 

23 the taxing authority may request that the court enter an 

24 order converting or dismissing the case. 


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•S 4991 IS

1 ‘‘(2) If the debtor does not file the required return 

2 or obtain the extension referred to in paragraph (1) within 

3 90 days after a request is filed by the taxing authority 

4 under that paragraph, the court shall convert or dismiss 

5 the case, whichever is in the best interests of creditors and 

6 the estate.’’. 

7 (ff) EXEMPTIONS.— 

8 (1) IN GENERAL.—Section 522 of title 11, 

9 United States Code, is amended by striking sub10 sections (a) through (q) and inserting the following: 

11 ‘‘(a) In this section— 

12 ‘‘(1) the term ‘conforming loan limit’ means 

13 that applicable limitation for the debtor’s county of 

14 residence governing the maximum original principal 

15 obligation for a mortgage secured by a single-family 

16 residence, as determined and adjusted annually 

17 under section 302(b)(2) of the Federal National 

18 Mortgage Association Charter Act (12 U.S.C. 

19 1717(b)(2)) and section 305(a)(2) of the Federal 

20 Home Loan Mortgage Corporation Act (12 U.S.C. 

21 1454(a)(2)); 

22 ‘‘(2) the term ‘dependent’ includes spouse, 

23 whether or not actually dependent; and 

24 ‘‘(3) the term ‘value’ means value— 


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•S 4991 IS

1 ‘‘(A) as of the date of the filing of the peti2 tion; or 

3 ‘‘(B) with respect to property that becomes 

4 property of the estate after such date, as of the 

5 date such property becomes property of the es6 tate. 

7 ‘‘(b)(1) Notwithstanding section 541 of this title, an 

8 individual debtor may elect to exempt from property of 

9 the estate either the property listed in paragraph (2) or, 

10 in the alternative, the property listed in paragraph (3). 

11 ‘‘(2)(A) The property listed in this paragraph is the 

12 following: 

13 ‘‘(i) The debtor’s interest in the debtor’s prin14 cipal residence, not to exceed— 

15 ‘‘(I) 75 percent of the conforming loan 

16 limit, if the debtor is age 65 or older on the 

17 date of the petition not to exceed; and 

18 ‘‘(II) 50 percent of the conforming loan 

19 limit in any other case. 

20 ‘‘(ii) The debtor’s aggregate interest, unlimited 

21 in amount except as provided in subparagraph (B), 

22 in the following: 

23 ‘‘(I) Professionally prescribed health aids 

24 for the debtor or a dependent of the debtor. 


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•S 4991 IS

1 ‘‘(II) The debtor’s right to receive, or 

2 property that is traceable to— 

3 ‘‘(aa) a social security benefit, rail4 road retirement benefit, government pen5 sion or retirement benefit, unemployment 

6 compensation, or a local public assistance 

7 benefit; 

8 ‘‘(bb) a veterans’ benefit; 

9 ‘‘(cc) a disability, illness, or unemploy10 ment benefit; 

11 ‘‘(dd) alimony, support, or separate 

12 maintenance; 

13 ‘‘(ee) a payment under a stock bonus, 

14 pension, profit sharing, annuity, or similar 

15 plan or contract on account of illness, dis16 ability, death, age, or length of service, un17 less— 

18 ‘‘(AA) such plan or contract was 

19 established by or under the auspices 

20 of an insider that employed the debtor 

21 at the time the debtor’s rights under 

22 such plan or contract arose; 

23 ‘‘(BB) such payment is on ac24 count of age or length of service; and 


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•S 4991 IS

1 ‘‘(CC) such plan or contract does 

2 not qualify under section 401(a), 

3 403(a), 403(b), or 408 of the Internal 

4 Revenue Code of 1986; 

5 ‘‘(ff) an award under a crime victim’s 

6 reparation law; 

7 ‘‘(gg) a payment on account of the 

8 wrongful death of an individual of whom 

9 the debtor was a dependent, except to the 

10 extent that such payment is for punitive 

11 damages; 

12 ‘‘(hh) a payment under a life insur13 ance contract that insured the life of an in14 dividual of whom the debtor was a depend15 ent on the date of such individual’s death; 

16 ‘‘(ii) a payment on account of per17 sonal bodily injury, pain and suffering, or 

18 compensation for actual pecuniary loss, of 

19 the debtor or an individual of whom the 

20 debtor is a dependent, except to the extent 

21 that such payment is for punitive damages; 

22 ‘‘(jj) a payment in compensation of 

23 loss of future earnings of the debtor or an 

24 individual of whom the debtor is or was a 

25 dependent; 


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•S 4991 IS

1 ‘‘(kk) retirement funds, including a 

2 direct transfer of retirement funds from a 

3 fund or account that is exempt from tax4 ation under section 401, 403, 408, 408A, 

5 414, 457, or 501(a) of the Internal Rev6 enue Code of 1986, under section 

7 401(a)(31) of the Internal Revenue Code 

8 of 1986, or otherwise, or a distribution 

9 that qualifies as an eligible rollover dis10 tribution within the meaning of section 

11 402(c) of the Internal Revenue Code of 

12 1986 or has been distributed from a fund 

13 or account that is exempt from taxation 

14 under section 401, 403, 408, 408A, 414, 

15 457, or 501(a) of the Internal Revenue 

16 Code of 1986 and to the extent allowed by 

17 law is deposited in such a fund or account 

18 not later than 60 days after the distribu19 tion of such amount, to the extent that 

20 those funds are or were in a fund or ac21 count that is exempt from taxation under 

22 section 401, 403, 408, 408A, 414, 457, or 

23 501(a) of the Internal Revenue Code of 

24 1986; or 


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•S 4991 IS

1 ‘‘(ll) a tax credit for earned income 

2 under section 32 of the Internal Revenue 

3 Code of 1986. 

4 ‘‘(iii) The debtor’s interest in any other prop5 erty up to $30,000 in aggregate value. 

6 ‘‘(B)(i) The court on its own motion, or upon motion 

7 by the trustee or United States trustee, may limit the 

8 amount property exempt under item (dd), (ee), (hh), (jj), 

9 or (kk) of subparagraph (A)(ii)(II) after notice and hear10 ing if it determines that such property is manifestly un11 necessary for the support of the debtor or the debtor’s de12 pendents. 

13 ‘‘(ii) There shall be a rebuttable presumption that ag14 gregate value of property described in any such item in 

15 excess of $1,500,000 is manifestly unnecessary for the 

16 support of the debtor or the debtor’s dependents. 

17 ‘‘(C)(i) If the debtor has a dependent, the debtor may 

18 double the exemption amounts under subparagraph 

19 (A)(iii) unless the dependent is filing a concurrent petition 

20 or has filed a petition within the previous 6 years. 

21 ‘‘(ii) The debtor may increase the amounts exempt 

22 under subparagraph (A)(iii) in accordance with the num23 ber of additional dependents not claimed under clause (i) 

24 of this subparagraph by— 


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•S 4991 IS

1 ‘‘(I) 25 percent for the first additional depend2 ent; 

3 ‘‘(II) an additional 10 percent for the second 

4 additional dependent; 

5 ‘‘(III) an additional 5 percent for the third ad6 ditional dependent; and 

7 ‘‘(IV) an additional 1 percent for each addi8 tional dependent beyond the third. 

9 ‘‘(iii) If a debtor has been claimed as dependent 

10 under this subparagraph on a previous debtor’s petition 

11 within the past 6 years, the court may reduce the amount 

12 of such debtor’s exemptions under this subparagraph as 

13 the equities of the case require. There shall be a rebuttable 

14 presumption that an intervening change in family cir15 cumstances, such as separation or divorce, shall not re16 quire such a reduction. 

17 ‘‘(iv) If a debtor has a dependent that has been 

18 claimed on another debtor’s petition under this subpara19 graph within the past 6 years, the court may reduce the 

20 amount of the debtor’s exemptions under this subpara21 graph as the equities of the case require. There shall be 

22 a rebuttable presumption that an intervening change in 

23 family circumstances, such as separation or divorce, shall 

24 not require such a reduction. 


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•S 4991 IS

1 ‘‘(v) When claiming property as exempt from the es2 tate under this subparagraph, the debtor shall indicate on 

3 an official form prescribed by the Judicial Conference of 

4 the United States in accordance with the Federal Rules 

5 of Bankruptcy Procedure whether any of the debtor’s de6 pendents have filed for bankruptcy within the previous 6 

7 years or whether this information is unknown. 

8 ‘‘(3)(A) The property listed in this paragraph is the 

9 following: 

10 ‘‘(i) Subject to subparagraphs (B) through (E), 

11 any property that is exempt under Federal law, 

12 other than paragraph (2) of this subsection, or State 

13 or local law that is applicable on the date of the fil14 ing of the petition to the place in which the debtor’s 

15 domicile has been located for the 730 days imme16 diately preceding the date of the filing of the peti17 tion or if the debtor’s domicile has not been located 

18 in a single State for such 730-day period, the place 

19 in which the debtor’s domicile was located for 180 

20 days immediately preceding the 730-day period or 

21 for a longer portion of such 180-day period than in 

22 any other place. 

23 ‘‘(ii) Any interest in property in which the debt24 or had, immediately before the commencement of the 

25 case, an interest as a tenant by the entirety or joint 


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•S 4991 IS

1 tenant to the extent that such interest as a tenant 

2 by the entirety or joint tenant is exempt from proc3 ess under applicable nonbankruptcy law. 

4 ‘‘(iii) Retirement funds to the extent that those 

5 funds are in a fund or account that is exempt from 

6 taxation under section 401, 403, 408, 408A, 414, 

7 457, or 501(a) of the Internal Revenue Code of 

8 1986. 

9 ‘‘(B)(i) Notwithstanding any contrary provision of 

10 nonbankruptcy law, the exempt amount under this para11 graph of any homestead acquired by the debtor within the 

12 1-year period immediately preceding the date of the filing 

13 of the petition shall be limited to the exempt amount of 

14 value of the debtor’s previous principal residence. 

15 ‘‘(ii) If the value of the debtor’s interest in property 

16 claimed as a principal residence under this paragraph ex17 ceeds $1,000,000, clause (i) applies to a principal resi18 dence acquired within the 3-year period immediately pre19 ceding the date of filing of the petition. 

20 ‘‘(C) The value of an interest in the debtor’s principal 

21 residence shall be reduced to the extent that such value 

22 is attributable to any portion of any property that the 

23 debtor disposed of in the 10-year period ending on the 

24 date of the filing of the petition with the intent to hinder, 

25 delay, or defraud a creditor and that the debtor could not 


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•S 4991 IS

1 exempt, or that portion that the debtor could not exempt 

2 under this subsection if on such date the debtor had held 

3 the property so disposed of. 

4 ‘‘(D)(i) Except as provided in clause (ii) of this sub5 paragraph and sections 544 and 548, as a result of elect6 ing to exempt property under State or local law under sub7 paragraph (A)(i), a debtor may not exempt any amount 

8 of interest that was acquired by the debtor during the 4- 

9 year period preceding the date of the filing of the petition 

10 that exceeds in the aggregate $170,000 in value in the 

11 debtor’s principal residence. 

12 ‘‘(ii)(I) The limitation under clause (i) shall not apply 

13 to an exemption claimed under subparagraph (A)(i) by a 

14 family farmer for the principal residence of such farmer. 

15 ‘‘(II) For purposes of clause (i), any amount of such 

16 interest does not include any interest transferred from a 

17 debtor’s previous principal residence (which was acquired 

18 prior to the beginning of such 4-year period) into the debt19 or’s current principal residence, if the debtor’s previous 

20 and current residences are located in the same State. 

21 ‘‘(E)(i) A debtor electing to exempt property under 

22 this paragraph may not exempt any amount of an interest 

23 in the debtor’s principal residence that exceeds in the ag24 gregate $170,000 if— 


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•S 4991 IS

1 ‘‘(I) the court determines, after notice and a 

2 hearing, that the debtor has been convicted of a fel3 ony (as defined in section 3156 of title 18), which 

4 under the circumstances demonstrates that the filing 

5 of the case was an abuse of the provisions of this 

6 title; or 

7 ‘‘(II) the debtor owes a debt arising from— 

8 ‘‘(aa) any violation of the Federal securi9 ties laws (as defined in section 3(a)(47) of the 

10 Securities Exchange Act of 1934), any State se11 curities laws, or any regulation or order issued 

12 under Federal securities laws or State securities 

13 laws; 

14 ‘‘(bb) fraud, deceit, or manipulation in a 

15 fiduciary capacity or in connection with the 

16 purchase or sale of any security registered 

17 under section 12 or 15(d) of the Securities Ex18 change Act of 1934 or under section 6 of the 

19 Securities Act of 1933; 

20 ‘‘(cc) any civil remedy under section 1964 

21 of title 18; 

22 ‘‘(dd) for debts arising from a violation of 

23 section 1979 of the Revised Statutes (42 U.S.C. 

24 1983); or 


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•S 4991 IS

1 ‘‘(ee) any criminal act, intentional tort, or 

2 willful or reckless misconduct that caused seri3 ous physical injury or death to another indi4 vidual in the preceding 5 years. 

5 ‘‘(ii) Clause (i) shall not apply to the extent the 

6 amount of an interest in the debtor’s principal residence 

7 is reasonably necessary for the support of the debtor or 

8 any dependent of the debtor. 

9 ‘‘(4)(A) For the purposes of item (kk) of paragraph 

10 (2)(A)(ii)(II) and clause (iii) of paragraph (3)(A), if the 

11 trustee, United States trustee, or court on its own motion 

12 objects to retirement funds’ status as exempt, and if those 

13 retirement funds are in a retirement fund or account that 

14 has received a favorable determination under section 7805 

15 of the Internal Revenue Code of 1986 and that determina16 tion is in effect as of the date of the filing of the petition 

17 in a case under this title, those funds shall be presumed 

18 to be exempt from the estate. 

19 ‘‘(B) If the retirement funds are in a retirement fund 

20 or account that has not received a favorable determination 

21 under such section 7805, those funds shall be exempt from 

22 the estate if the court determines that— 

23 ‘‘(i) no prior determination to the contrary has 

24 been made by a court or the Internal Revenue Serv25 ice; and 


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•S 4991 IS

1 ‘‘(ii)(I) the retirement fund is in substantial 

2 compliance with the applicable requirements of the 

3 Internal Revenue Code of 1986; or 

4 ‘‘(II) the retirement fund fails to be in substan5 tial compliance with the applicable requirements of 

6 the Internal Revenue Code of 1986 and the debtor 

7 is not materially responsible for that failure. 

8 ‘‘(5)(A) A direct transfer of retirement funds from 

9 1 fund or account that is exempt from taxation under sec10 tion 401, 403, 408, 408A, 414, 457, or 501(a) of the In11 ternal Revenue Code of 1986, under section 401(a)(31) 

12 of the Internal Revenue Code of 1986, or otherwise, shall 

13 not cease to qualify for exemption under item (kk) of para14 graph (2)(A)(ii)(II) or clause (iii) of paragraph (3)(A) by 

15 reason of such direct transfer. 

16 ‘‘(B)(i) Any distribution that qualifies as an eligible 

17 rollover distribution within the meaning of section 402(c) 

18 of the Internal Revenue Code of 1986 or that is described 

19 in clause (ii) of this subparagraph shall not cease to qual20 ify for exemption under item (kk) of paragraph 

21 (2)(A)(ii)(II) or clause (iii) of paragraph (3)(A) by reason 

22 of such distribution. 

23 ‘‘(ii) A distribution described in this clause is an 

24 amount that— 


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•S 4991 IS

1 ‘‘(I) has been distributed from a fund or ac2 count that is exempt from taxation under section 

3 401, 403, 408, 408A, 414, 457, or 501(a) of the In4 ternal Revenue Code of 1986; and 

5 ‘‘(II) to the extent allowed by law, is deposited 

6 in such a fund or account not later than 60 days 

7 after the distribution of such amount. 

8 ‘‘(6)(A) In joint cases filed under section 302 of this 

9 title and individual cases filed under section 301 or 303 

10 of this title by or against 2 debtors who are married to 

11 each other, and whose estates are ordered to be jointly 

12 administered under the Federal Rules of Bankruptcy Pro13 cedure, the debtors shall be deemed to elect exempt prop14 erty under paragraph (2) unless they both affirmatively 

15 elect to exempt property under paragraph (3). 

16 ‘‘(B) In a joint case, the residence exemptions in sub17 paragraphs (2)(A)(i) and (3)(A)(i) shall be allocated one18 half each to each debtor. 

19 ‘‘(C) The nonresidence exemptions in paragraphs 

20 (2)(A)(iii) and (3)(A)(iii) shall apply separately with re21 spect to each debtor in a joint case. 

22 ‘‘(c) Unless the case is dismissed, property exempted 

23 under this section is not liable during or after the case 

24 for any debt of the debtor that arose, or that is determined 


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•S 4991 IS

1 under section 502 of this title as if such debt had arisen, 

2 before the commencement of the case, except— 

3 ‘‘(1) a debt of a kind specified in paragraph (5) 

4 of section 523(a) (in which case, notwithstanding 

5 any provision of applicable nonbankruptcy law to the 

6 contrary, such property shall be liable for a debt of 

7 a kind specified in such paragraph); or 

8 ‘‘(2) a debt secured by a lien that is— 

9 ‘‘(A) not avoided under subsection (e) or 

10 (g) of this section or under section 544, 545, 

11 547, 548, or 549 of this title; and 

12 ‘‘(B) not void under section 506(d) of this 

13 title. 

14 ‘‘(d)(1) A waiver of an exemption executed in favor 

15 of a creditor that holds an unsecured claim against the 

16 debtor is unenforceable in a case under this title with re17 spect to such claim against property that the debtor may 

18 exempt under subsection (b). 

19 ‘‘(2) A waiver by the debtor of a power under sub20 section (e) or (g) to avoid a transfer, under subsection (f) 

21 or (h) to exempt property, or under subsection (h) to re22 cover property or to preserve a transfer, is unenforceable 

23 in a case under this title. 

24 ‘‘(e)(1) Notwithstanding any waiver of exemptions, 

25 the debtor may avoid the fixing of a lien on an interest 


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•S 4991 IS

1 of the debtor in property to the extent that such lien im2 pairs an exemption to which the debtor would have been 

3 entitled under subsection (b), if such lien is— 

4 ‘‘(A) a judicial lien, other than a judicial lien 

5 that secures a debt of a kind that is specified in sec6 tion 523(a)(5); or 

7 ‘‘(B) a nonpossessory, non-purchase-money se8 curity interest in any personal, family, or household 

9 goods or in any implements, professional books, or 

10 tools, of the trade of the debtor or the trade of a 

11 dependent of the debtor. 

12 ‘‘(2)(A) For the purposes of this subsection, a lien 

13 shall be considered to impair an exemption to the extent 

14 that the sum of— 

15 ‘‘(i) the lien; 

16 ‘‘(ii) all other liens on the property; and 

17 ‘‘(iii) the amount of the exemption that the 

18 debtor could claim if there were no liens on the 

19 property, exceeds the value that the debtor’s interest 

20 in the property would have in the absence of any 

21 liens. 

22 ‘‘(B) In the case of a property subject to more than 

23 1 lien, a lien that has been avoided shall not be considered 

24 in making the calculation under subparagraph (A) with 

25 respect to other liens. 


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•S 4991 IS

1 ‘‘(C) This paragraph shall not apply with respect to 

2 a judgment arising out of a mortgage foreclosure. 

3 ‘‘(f) Notwithstanding sections 550 and 551 of this 

4 title, the debtor may exempt under subsection (b) of this 

5 section property that the trustee recovers under section 

6 510(c)(2), 542, 543, 550, 551, or 553 of this title, to the 

7 extent that the debtor could have exempted such property 

8 under subsection (b) of this section if such property had 

9 not been transferred, if— 

10 ‘‘(1)(A) such transfer was not a voluntary 

11 transfer of such property by the debtor; and 

12 ‘‘(B) the debtor did not conceal such property; 

13 or 

14 ‘‘(2) the debtor could have avoided such trans15 fer under subsection (e)(1) of this section. 

16 ‘‘(g) The debtor may avoid a transfer of property of 

17 the debtor or recover a setoff to the extent that the debtor 

18 could have exempted such property under subsection (f)(1) 

19 if the trustee had avoided such transfer, if— 

20 ‘‘(1) such transfer is avoidable by the trustee 

21 under section 544, 545, 547, 548, 549, or 1041 of 

22 this title or recoverable by the trustee under section 

23 553 of this title; and 

24 ‘‘(2) the trustee does not attempt to avoid such 

25 transfer. 


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•S 4991 IS

1 ‘‘(h)(1) If the debtor avoids a transfer or recovers a 

2 setoff under subsection (e) or (g), the debtor may recover 

3 in the manner prescribed by, and subject to the limitations 

4 of, section 550 of this title, the same as if the trustee had 

5 avoided such transfer, and may exempt any property so 

6 recovered under subsection (b). 

7 ‘‘(2) Notwithstanding section 551 of this title, a 

8 transfer avoided under section 544, 545, 547, 548, 549, 

9 or 1041 of this title, under subsection (e) or (g) of this 

10 section, or property recovered under section 553 of this 

11 title, may be preserved for the benefit of the debtor to 

12 the extent that the debtor may exempt such property 

13 under subsection (f) of this section or paragraph (1) of 

14 this subsection. 

15 ‘‘(i) Notwithstanding subsections (f) and (h), the 

16 debtor may exempt a particular kind of property under 

17 subsections (f) and (h) only to the extent that the debtor 

18 has exempted less property in value of such kind than that 

19 to which the debtor is entitled under subsection (b). 

20 ‘‘(j) Property that the debtor exempts under this sec21 tion is not liable for payment of any administrative ex22 pense except— 

23 ‘‘(1) the aliquot share of the costs and expenses 

24 of avoiding a transfer of property that the debtor ex25 empts under subsection (f), or of recovery of such 


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•S 4991 IS

1 property, that is attributable to the value of the por2 tion of such property exempted in relation to the 

3 value of the property recovered; and 

4 ‘‘(2) any costs and expenses of avoiding a 

5 transfer under subsection (e) or (g), or of recovery 

6 of property under subsection (h)(1), that the debtor 

7 has not paid. 

8 ‘‘(k)(1)(A) The debtor shall file a list of property that 

9 the debtor claims as exempt under subsection (b). 

10 ‘‘(B) If the debtor does not file such a list, a depend11 ent of the debtor may file such a list, or may claim prop12 erty as exempt from property of the estate on behalf of 

13 the debtor. 

14 ‘‘(2) Unless a party in interest objects, the property 

15 claimed as exempt on such list is exempt.’’. 

16 (2) CONFORMING AMENDMENT.— 

17 (A) Section 349(b)(1)(B) of title 11, 

18 United States Code, is amended by striking 

19 ‘‘522(i)(1),’’ and inserting ‘‘522(h)(i),’’. 

20 (B) Subsection (e) of section 502 of title 

21 11, United States Code, as so redesignated by 

22 subsection (aa) of this section, is amended— 

23 (i) by striking ‘‘section 522(f), 

24 522(h),’’ and inserting ‘‘section 522(e), 

25 522(g),’’; and 


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•S 4991 IS

1 (ii) by striking ‘‘section 522(i)’’ and 

2 inserting ‘‘section 522(h)’’. 

3 (gg) EXCEPTIONS TO DISCHARGE.—Section 523 of 

4 title 11, United States Code, is amended— 

5 (1) in subsection (a)— 

6 (A) in the matter preceding paragraph 

7 (1)— 

8 (i) by striking ‘‘727,’’; and 

9 (ii) by striking ‘‘1328(b)’’and insert10 ing ‘‘1031(a)’’; 

11 (B) in paragraph (1)(B), in the matter 

12 preceding clause (i), by inserting ‘‘subject to 

13 subsection (f),’’ before ‘‘with respect’’; 

14 (C) in paragraph (2)— 

15 (i) in subparagraph (A), by adding 

16 ‘‘or’’ at the end; 

17 (ii) in subparagraph (B), by striking 

18 ‘‘or’’ at the end; and 

19 (iii) by striking subparagraph (C); 

20 (D) in paragraph (3)— 

21 (i) in subparagraph (A), by striking 

22 ‘‘(4), or (6)’’ and inserting ‘‘(4), (6), or 

23 (7)’’; and 


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•S 4991 IS

1 (ii) in subparagraph (B), by striking 

2 ‘‘(4), or (6)’’ and inserting ‘‘(4), (6), or 

3 (7)’’; 

4 (E) by striking paragraph (7) and insert5 ing the following: 

6 ‘‘(7) to the extent such debt is for a fine, pen7 alty, or restitution— 

8 ‘‘(A) that is incurred in a criminal pro9 ceeding and specifically designated as a fine, 

10 penalty, or restitution in the sentencing order 

11 upon the debtor’s conviction; 

12 ‘‘(B) that is not— 

13 ‘‘(i) for the cost of prosecuting the 

14 debtor, including the cost of public defense, 

15 incarceration, probation, or any diversion 

16 program; 

17 ‘‘(ii) for the cost of operating the 

18 criminal justice system or funding govern19 ment functions; 

20 ‘‘(iii) for the cost of collecting such 

21 debt; or 

22 ‘‘(iv) a fee, surcharge, assessment, or 

23 interest or collection charge imposed in 

24 connection with such debt; and 


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1 ‘‘(C) only if the creditor demonstrates that 

2 the debtor has substantial financial resources 

3 that permit the debtor to pay all or a signifi4 cant portion of the fine, penalty, or restitution 

5 for— 

6 ‘‘(i) a fine, penalty, or restitution with 

7 respect to which the petition is filed on or 

8 after the date that is 3 years after the 

9 later of— 

10 ‘‘(I) the date of the sentencing 

11 order; or 

12 ‘‘(II) the date on which the debt13 or was released from incarceration 

14 pursuant to the sentencing order; or 

15 ‘‘(ii) a debt that is a tax penalty— 

16 ‘‘(I) relating to a tax of a kind 

17 not specified in paragraph (1) of this 

18 subsection; or 

19 ‘‘(II) imposed with respect to a 

20 transaction or event that occurred be21 fore 3 years before the date of the fil22 ing of the petition;’’; 

23 (F) by striking paragraph (8); 

24 (G) by redesignating paragraph (9) as 

25 paragraph (8); 


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•S 4991 IS

1 (H) by inserting after paragraph (8), as so 

2 redesignated, the following: 

3 ‘‘(9) that was or could have been listed or 

4 scheduled by the debtor in a prior case concerning 

5 the debtor under this title in which the debtor 

6 waived a discharge, or was denied a discharge under 

7 section 727(a) (2), (3), (4), (5), (6), or (7), as in ef8 fect on the day before the date of enactment of the 

9 Consumer Bankruptcy Reform Act of 2020, or 

10 under section 1031, unless such debt was the subject 

11 of a written waiver of discharge and the court has 

12 made the determination required by section 

13 1031(b)(3)(B);’’; 

14 (I) by striking paragraphs (14) and (14A); 

15 (J) by redesignating paragraph (14B) as 

16 paragraph (14); 

17 (K) in paragraph (16), by inserting ‘‘and 

18 the debtor or the trustee possesses, occupies, or 

19 uses the property’’ after ‘‘such lot’’; 

20 (L) by striking paragraph (17); 

21 (M) by redesignating paragraph (18) as 

22 paragraph (17); and 

23 (N) by striking paragraph (19) and insert24 ing the following: 


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•S 4991 IS

1 ‘‘(18) for debts arising from a violation of sec2 tion 1979 of the Revised Statutes (42 U.S.C. 

3 1983).’’; 

4 (2) in subsection (b), by striking ‘‘(a)(1), 

5 (a)(3), or (a)(8)’’ and inserting ‘‘(a)(1) or (a)(3)’’; 

6 (3) in subsection (c), by adding at the end the 

7 following: 

8 ‘‘(3) Notwithstanding subsection (a) of this section, 

9 the debtor shall be discharged from a debt of the kind 

10 specified in subsection (a)(7) of this section if the sen11 tencing order fails to separately list any fees, costs, assess12 ments, or surcharges in addition to any fine, penalty, or 

13 restitution, and such fees, costs, assessments, or sur14 charges are authorized to be assessed under nonbank15 ruptcy law for the particular crime committed by the debt16 or, unless— 

17 ‘‘(A) the sentencing order expressly states that 

18 no fees, costs, assessments, or surcharges are as19 sessed against the debtor in addition to any fine, 

20 penalty, or restitution; or 

21 ‘‘(B) on request of the creditor to whom such 

22 debt is owed, and after notice and a hearing, the 

23 court determines such debt shall not be discharged 

24 under subsection (a)(7) of this section.’’; and 

25 (4) by adding at the end the following: 


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•S 4991 IS

1 ‘‘(f) For purposes of subparagraph (B) of subsection 

2 (a)(1), a return— 

3 ‘‘(1) must satisfy the requirements of applicable 

4 nonbankruptcy law; 

5 ‘‘(2) must have been filed in a manner per6 mitted by applicable nonbankruptcy law regardless 

7 of whether it was filed before or after any applicable 

8 deadline; 

9 ‘‘(3) includes a return prepared pursuant to 

10 section 6020(a) of the Internal Revenue Code of 

11 1986, or similar State or local law, or a written stip12 ulation to a judgment entered by a nonbankruptcy 

13 tribunal; and 

14 ‘‘(4) does not include a return made pursuant 

15 to section 6020(b) of the Internal Revenue Code of 

16 1986, or similar State or local law.’’. 

17 (hh) EFFECT OF DISCHARGE.—Section 524 of title 

18 11, United States Code, is amended— 

19 (1) in subsection (a)— 

20 (A) in paragraph (1), by striking ‘‘727, 

21 944, 1141, 1192, 1228, or 1328’’ and inserting 

22 ‘‘section 727 or 1328, as in effect on the day 

23 before the date of enactment of the Consumer 

24 Bankruptcy Reform Act of 2020, or section 

25 944, 1031, 1141, 1192, or 1228’’; and 


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1 (B) in paragraph (3), by striking ‘‘1192, 

2 1128(a)(1), or 1328(a)(1)’’ and inserting 

3 ‘‘1031, 1192, or 1228(a), or section 1328(a)(1), 

4 as in effect on the day before the date of enact5 ment of the Consumer Bankruptcy Reform Act 

6 of 2020’’; 

7 (2) in subsection (b)(2)(B), by striking ‘‘727’’ 

8 and inserting ‘‘1031’’; 

9 (3) by striking subsection (c) and inserting the 

10 following: 

11 ‘‘(c)(1) A debtor that receives a discharge under sec12 tion 1031, or section 727 or 1328, as in effect on the day 

13 before the date of enactment of the Consumer Bankruptcy 

14 Reform Act of 2020, the trustee, the United States trust15 ee, or the bankruptcy administrator may bring a civil ac16 tion against a person that knows or should know that the 

17 discharge injunction is applicable and has intentionally or 

18 negligently commenced or continued any action described 

19 in subsection (a). 

20 ‘‘(2) An action under paragraph (1) shall be com21 menced not later than 1 year after the date on which the 

22 discharged debtor, the trustee, or the United States trust23 ee discovers that a person has commenced or continued 

24 any action described in subsection (a). 


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1 ‘‘(3) In an action under paragraph (1), the court may 

2 award relief consistent with this title if the court finds 

3 that a person has— 

4 ‘‘(A) engaged in conduct in violation of this sec5 tion or of any provision of this title; or 

6 ‘‘(B) engaged in fraudulent, unfair, deceptive, 

7 or abusive conduct with respect to the debtor or the 

8 case. 

9 ‘‘(4) Subject to paragraph (6), in a successful action 

10 under paragraph (1)— 

11 ‘‘(A) the court— 

12 ‘‘(i) shall award to a discharged debtor in13 jured by a violation of subsection (a)— 

14 ‘‘(I) actual damages, including dam15 ages for emotional distress; and 

16 ‘‘(II) reasonable costs and attorneys’ 

17 fees; and 

18 ‘‘(ii) if the trustee or the United States 

19 trustee is a prevailing party in the action, shall 

20 award to the trustee or the United States trust21 ee— 

22 ‘‘(I) reasonable costs and attorney 

23 fees; and 

24 ‘‘(II) a fee equal to 3 times the 

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•S 4991 IS

1 son found to be in violation of subsection 

2 (a); and 

3 ‘‘(B) the court may award punitive damages, as 

4 appropriate. 

5 ‘‘(5)(A) If the court awards punitive damages under 

6 paragraph (4) in an action brought or joined by the trust7 ee, the court may award between 10 percent and 25 per8 cent of the punitive damages to the trustee who brought 

9 or joined the action. 

10 ‘‘(B) Any punitive damages under this subsection 

11 shall be in addition to the compensation set out in section 

12 326. 

13 ‘‘(6) If the commencement or continuation of any ac14 tion described in subsection (a) was taken by a person in 

15 the good faith belief that subsection (a) did not apply to 

16 the debt, and the action was withdrawn upon discovery 

17 that subsection (a) applied to the debt, the recovery shall 

18 be limited to actual damages, including damages for emo19 tional distress, and reasonable costs and attorneys’ fees. 

20 ‘‘(7) Nothing in this subsection shall be construed to 

21 prejudice the ability to bring a motion for contempt of 

22 court for a violation of subsection (a). 

23 ‘‘(8) An agreement between a holder of a claim and 

24 the debtor, the consideration for which, in whole or in 


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•S 4991 IS

1 part, is based on a debt that is dischargeable in a case 

2 under this title is voidable by the debtor. 

3 ‘‘(9) Any pre-dispute arbitration agreement or pre4 dispute joint-action waiver regarding an action under 

5 paragraph (1) is voidable by the debtor.’’; 

6 (4) in subsection (d)— 

7 (A) in the matter preceding paragraph (1), 

8 by striking ‘‘727, 1141, 1192, 1228, or 1328’’ 

9 and inserting ‘‘1031, 1141, 1192, or 1228’’; 

10 and 

11 (B) beginning in the matter preceding 

12 paragraph (1), by striking ‘‘If a discharge has 

13 been granted’’ and all that follows through the 

14 end of paragraph (2); 

15 (5) in subsection (f), by striking ‘‘(c) or’’; and 

16 (6) by striking subsections (k), (l), and (m) and 

17 inserting the following: 

18 ‘‘(k)(1) Nothing in this section prejudices the ability 

19 to bring a motion for contempt of court for a violation 

20 of subsection (a) or any cause of action under applicable 

21 nonbankruptcy law. 

22 ‘‘(2) Any pre-dispute arbitration agreement or pre23 dispute joint-action waiver purporting to apply to such an 

24 action is void. 


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1 ‘‘(l) Upon an entity’s request, and after notice and 

2 a hearing, the court shall issue an order declaring whether 

3 an action proposed to be taken by the entity would be a 

4 violation of the discharge injunction under subsection (a). 

5 ‘‘(m) The debtor’s failure to assert, raise, or plead 

6 the discharge shall not be construed to be a waiver against 

7 asserting the discharge.’’. 

8 (ii) PROTECTION AGAINST DISCRIMINATORY TREAT9 MENT.—Section 525 of title 11, United States Code, is 

10 amended— 

11 (1) in subsection (a), by striking ‘‘solely’’; 

12 (2) in subsection (b), in the matter preceding 

13 paragraph (1)— 

14 (A) by inserting ‘‘deny employment to,’’ 

15 following ‘‘may’’; and 

16 (B) by striking ‘‘solely’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(d)(1) A person aggrieved by a violation of this sec19 tion may enforce this section in the bankruptcy case or 

20 by bringing a civil action in an appropriate district court 

21 of the United States. 

22 ‘‘(2) To remedy a violation of this section, a court 

23 may— 

24 ‘‘(A) award damages including back pay; 


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•S 4991 IS

1 ‘‘(B) grant injunctive or other equitable relief; 

2 and 

3 ‘‘(C) award of costs, including attorneys’ fees, 

4 to an aggrieved party who prevails.’’. 

5 (jj) RESTRICTIONS ON DEBT RELIEF AGENCIES.— 

6 (1) IN GENERAL.—Section 526 of title 11, 

7 United States Code, is repealed. 

8 (2) CONFORMING AMENDMENT.—The table of 

9 sections for chapter 5 of title 11, United States 

10 Code, is amended by striking the item relating to 

11 section 526. 

12 (kk) DISCLOSURES.— 

13 (1) IN GENERAL.—Section 527 of title 11, 

14 United States Code, is repealed. 

15 (2) CONFORMING AMENDMENT.—The table of 

16 sections for chapter 5 of title 11, United States 

17 Code, is amended by striking the item relating to 

18 section 527. 

19 (ll) REQUIREMENTS FOR DEBT RELIEF AGENCIES.— 

20 (1) IN GENERAL.—Section 528 of title 11, 

21 United States Code, is repealed. 

22 (2) CONFORMING AMENDMENT.—The table of 

23 sections for chapter 5 of title 11, United States 

24 Code, is amended by striking the item relating to 

25 section 528. 


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1 (mm) PROPERTY OF THE ESTATE.—Section 541 of 

2 title 11, United States Code, is amended— 

3 (1) in subsection (b)(7)— 

4 (A) by striking ‘‘except that such amount 

5 under this subparagraph shall not constitute 

6 disposable income as defined in section 

7 1325(b)(2); or’’ each place it appears; 

8 (B) in subparagraph (A)(i)(III), by adding 

9 ‘‘or’’ at the end; and 

10 (C) in subparagraph (B)(i)(III), by adding 

11 ‘‘or’’ at the end; 

12 (2) in subsection (c)(2), by striking the period 

13 at the end and inserting ‘‘, except to the extent nec14 essary to satisfy claims entitled to priority under 

15 section 507(a)(1).’’; and 

16 (3) by adding at the end the following: 

17 ‘‘(g) Notwithstanding any contrary provision of non18 bankruptcy law, a pre-dispute arbitration agreement or 

19 pre-dispute joint-action waiver entered into by the debtor 

20 shall not be enforceable against the bankruptcy estate or 

21 the debtor for matters arising in, arising under, or related 

22 to a case under this title.’’. 

23 (nn) TURNOVER OF PROPERTY TO ESTATE.— 

24 (1) IN GENERAL.—Section 542 of title 11, 

25 United States Code, is amended— 


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•S 4991 IS

1 (A) in subsection (a)— 

2 (i) by striking ‘‘subsection (c) or (d)’’ 

3 and inserting ‘‘subsection (d), (e), or (f)’’; 

4 and 

5 (ii) by striking ‘‘shall deliver to the 

6 trustee’’ and inserting ‘‘shall, without any 

7 condition or further action by the trustee, 

8 the debtor, or the court, deliver promptly 

9 to the trustee’’; 

10 (B) in subsection (b), by striking ‘‘sub11 section (c) or (d)’’ and inserting ‘‘subsection 

12 (d), (e), or (f)’’; 

13 (C) by redesignating subsections (c), (d), 

14 and (e) as subsections (e), (f), and (g), respec15 tively; and 

16 (D) by adding before subsection (e), as so 

17 redesignated, the following: 

18 ‘‘(c) An entity in possession of property that the 

19 trustee may use, sell, or lease under section 363 of this 

20 title, or that the debtor may exempt under section 522 

21 of this title, shall have, upon delivery of such property to 

22 the trustee, the same rights in the property as if the entity 

23 remained in possession. 

24 ‘‘(d) An entity that holds property that the trustee 

25 may use, sell, or lease under section 363 of this title, or 


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1 that the debtor may exempt under section 522 of this title, 

2 and that is subject to a potential loss of value due to acci3 dent, casualty, or theft shall not be required to deliver 

4 such property to the trustee unless the party entitled to 

5 possession provides proof of insurance or other security 

6 sufficient to protect the creditor against such loss of 

7 value.’’. 

8 (2) CONFORMING AMENDMENT.—Section 

9 549(a)(2)(A) of title 11, United States Code, is 

10 amended by striking ‘‘542(c)’’ and inserting 

11 ‘‘542(e)’’. 

12 (oo) LIMITATIONS ON AVOIDING POWERS.—Section 

13 546(a)(1)(B) of title 11, United States Code, is amended 

14 by striking ‘‘1104, 1163, 1202, or 1302’’ and inserting 

15 ‘‘1001, 1104, 1163, or 1202’’. 

16 (pp) FRAUDULENT TRANSFERS AND OBLIGA17 TIONS.—Section 548 of title 11, United States Code, is 

18 amended— 

19 (1) in subsection (a)(1), in the matter pre20 ceding subparagraph (A), by striking ‘‘2 years’’ and 

21 inserting ‘‘4 years’’; 

22 (2) in subsection (b)(1), by striking ‘‘2 years’’ 

23 and inserting ‘‘4 years’’; 

24 (3) in subsection (e)— 

25 (A) in paragraph (1)— 


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1 (i) in the matter preceding subpara2 graph (A), by striking ‘‘In addition’’ and 

3 inserting ‘‘Subject to paragraphs (3) and 

4 (4), in addition’’; 

5 (ii) in subparagraph (B), by adding 

6 ‘‘and’’ at the end; 

7 (iii) in subparagraph (C), by striking 

8 ‘‘; and’’ and inserting a period; and 

9 (iv) by striking subparagraph (D); 

10 and 

11 (B) by adding at the end the following: 

12 ‘‘(3) The trustee may not avoid under para13 graph (1) a transfer of property that is exempt from 

14 the estate pursuant to paragraph (2)(A)(ii)(II)(kk) 

15 or (3)(A)(iii) of section 522(b). 

16 ‘‘(4)(A) The trustee may not avoid under para17 graph (1) a transfer that was not made with actual 

18 intent to hinder, delay, or defraud. 

19 ‘‘(B) The defendant in any action under this 

20 subsection has the burden of proof in pleading and 

21 proving that the transfer was not made with actual 

22 intent to hinder, delay, or defraud creditors.’’. 

23 (qq) LIABILITY OF TRANSFEREE OF AVOIDED

24 TRANSFER.—Section 550 of title 11, United States Code, 

25 is amended by adding at the end the following: 


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1 ‘‘(g) The trustee may recover from a transferee the 

2 costs of bringing a successful avoidance action, including 

3 reasonable attorney fees, for the avoidance of a transfer 

4 under section 544(b) under— 

5 ‘‘(1) an applicable nonbankruptcy law that pro6 hibits a transfer made with actual intent to hinder, 

7 delay, or defraud a creditor; 

8 ‘‘(2) section 548(a)(1); or 

9 ‘‘(3) section 548(e).’’. 

10 (rr) EXPEDITED DETERMINATION OF INTERESTS IN, 

11 AND ABANDONMENT OR OTHER DISPOSITION OF GRAIN

12 ASSETS.—Section 557(d)(3) of title 11, United States 

13 Code, is amended by striking ‘‘1104, 1183, 1202, and 

14 1302’’ and inserting ‘‘1001, 1104, 1183, and 1202’’. 

15 (ss) DUTIES OF TRUSTEE.—Section 704 of title 11, 

16 United States Code, is amended— 

17 (1) in subsection (a)— 

18 (A) by striking ‘‘(a)’’; 

19 (B) by striking paragraphs (3) and (10); 

20 and 

21 (C) by redesignating paragraphs (4), (5), 

22 (6), (7), (8), (9), (11), and (12) as paragraphs 

23 (3), (4), (5), (6), (7), (8), (9), and (10), respec24 tively; 

25 (2) by striking subsection (b); and 


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1 (3) by striking subsection (c). 

2 (tt) CONVERSION.—Section 706 of title 11, United 

3 States Code, is amended— 

4 (1) in subsection (a)— 

5 (A) by striking ‘‘11, 12, or 13’’ and insert6 ing ‘‘11 or 12’’; and 

7 (B) by striking ‘‘1112, 1208, or 1307’’ and 

8 inserting ‘‘1112 or 1208’’; and 

9 (2) in subsection (c), by striking ‘‘12 or 13’’ 

10 and inserting ‘‘12’’. 

11 (uu) DISMISSAL OF A CASE OR CONVERSION TO A

12 CASE UNDER CHAPTER 11 OR 13.— 

13 (1) IN GENERAL.—Section 707 of title 11, 

14 United States Code, is amended— 

15 (A) in the section heading, by striking ‘‘or 

16 conversion to a case under chapter 11 

17 or 13’’; 

18 (B) in subsection (a), by striking ‘‘(a) 

19 The’’ and inserting ‘‘The’’; 

20 (C) by striking subsection (b); and 

21 (D) by striking subsection (c). 

22 (2) CONFORMING AMENDMENT.—The table of 

23 sections for chapter 7 of title 11, United States 

24 Code, is amended by striking the item relating to 

25 section 707 and inserting the following: 

‘‘707. Dismissal of a case.’’. 


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1 (vv) REDEMPTION.— 

2 (1) IN GENERAL.—Section 722 of title 11, 

3 United States Code, is repealed. 

4 (2) CONFORMING AMENDMENT.—The table of 

5 sections for chapter 7 of title 11, United States 

6 Code, is amended by striking the item relating to 

7 section 722. 

8 (ww) DISTRIBUTION OF PROPERTY OF THE ES9 TATE.—Section 726(b) of title 11, United States Code, is 

10 amended by striking ‘‘1112, 1208, or 1307’’ and inserting 

11 ‘‘1005, 1053(c), 1112, or 1208’’. 

12 (xx) DISCHARGE.— 

13 (1) IN GENERAL.—Section 727 of title 11, 

14 United States Code, is repealed. 

15 (2) CONFORMING AMENDMENT.—The table of 

16 sections for chapter 7 of title 11, United States 

17 Code, is amended by striking the item relating to 

18 section 727. 

19 (yy) DUTIES OF TRUSTEE AND EXAMINER.—Section 

20 1106 of title 11, United States Code, is amended— 

21 (1) in subsection (a)— 

22 (A) in paragraph (1), by striking ‘‘para23 graphs (2), (5), (7), (8), (9), (10), (11), and 

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1 graphs (2), (4), (6), (7), (8), (9), and (10) of 

2 section 704’’; and 

3 (B) in paragraph (5), by striking ‘‘12, or 

4 13’’ and inserting ‘‘7, 10, or 12’’; and 

5 (2) in subsection (c)(1)(C), by striking clause 

6 (iv) and inserting the following: 

7 ‘‘(iv) the name of each creditor that 

8 holds a claim that is not discharged under 

9 paragraph (2) or (4) of section 523(a) of 

10 this title.’’. 

11 (zz) CONVERSION OR DISMISSAL.—Section 1112 of 

12 title 11, United States Code, is amended— 

13 (1) in subsection (a)— 

14 (A) in paragraph (2), by striking ‘‘or’’; 

15 (B) in paragraph (3), by striking the pe16 riod at the end and inserting ‘‘; or’’; and 

17 (C) by adding at the end the following: 

18 ‘‘(4) the debtor is an individual.’’; 

19 (2) in subsection (b)(1), by inserting ‘‘in a case 

20 in which the debtor is not an individual,’’ after ‘‘sub21 section (c),’’; 

22 (3) in subsection (d), by striking ‘‘12 or 13’’ 

23 and insert ‘‘10 or 12’’; 

24 (4) by redesignating subsection (f) as sub25 section (g); and 


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1 (5) by inserting after subsection (e), the fol2 lowing: 

3 ‘‘(f) The debtor may convert a case under this chap4 ter to a case under chapter 10 of this title at any time. 

5 Any waiver of the right to convert under this subsection 

6 is unenforceable.’’. 

7 (aaa) PROPERTY OF THE ESTATE.—Section 1115(a) 

8 of title 11, United States Code, is amended by striking 

9 ‘‘7, 12, or 13’’ each place it appears and inserting ‘‘10 

10 or 12’’. 

11 (bbb) CONTENTS OF PLAN.—Section 1123(a)(8) of 

12 title 11, United States Code, is amended by striking ‘‘for 

13 the execution of the plan.’’ and inserting ‘‘for the debtor 

14 to meet the minimum payment obligation of the debtor.’’. 

15 (ccc) CONFIRMATION OF PLAN.—Section 

16 1129(a)(15)(B) of title 11, United States Code, is amend17 ed by striking ‘‘the projected disposable income’’ and all 

18 that follows through ‘‘whichever is longer’’ and inserting 

19 ‘‘the minimum payment obligation of the debtor under a 

20 repayment plan under section 1021(a)(1) if the case were 

21 a case under chapter 10’’. 

22 (ddd) EFFECT OF CONFIRMATION.—Section 1141(d) 

23 of title 11, United States Code, is amended— 

24 (1) in paragraph (3)(C)— 


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1 (A) by striking ‘‘section 727(a)’’ and in2 serting ‘‘section 1031’’; and 

3 (B) by striking ‘‘chapter 7’’ and inserting 

4 ‘‘chapter 10’’; and 

5 (2) in paragraph (5)— 

6 (A) in subparagraph (A), by adding ‘‘and’’ 

7 at the end; 

8 (B) in subparagraph (B), by striking ‘‘; 

9 and’’ at the end and inserting a period; and 

10 (C) by striking subparagraph (C). 

11 (eee) TRUSTEE.—Section 1183(b) of title 11, United 

12 States Code, is amended— 

13 (1) in paragraph (1), by striking ‘‘paragraphs 

14 (2), (5), (6), (7), and (9) of section 704(a)’’ and in15 serting ‘‘paragraphs (2), (4), (5), (6), and (8) of sec16 tion 704’’; 

17 (2) in paragraph (5), by striking ‘‘704(a)(8)’’ 

18 and inserting ‘‘704(7)’’; and 

19 (3) in paragraph (6), by striking ‘‘704(c)’’ and 

20 inserting ‘‘1001(b)(5)’’. 

21 (fff) PROPERTY OF THE ESTATE.—Section 1186(a) 

22 of title 11, United States Code, is amended by striking 

23 ‘‘7, 12, or 13’’ each place it appears and inserting ‘‘7, 

24 10, or 12’’. 


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1 (ggg) TRUSTEE.—Section 1202 of title 11, United 

2 States Code, is amended— 

3 (1) in subsection (b)— 

4 (A) in paragraph (1), by striking ‘‘sections 

5 704(a)(2), 704(a)(3), 704(a)(5), 704(a)(6), 

6 704(a)(7), and 704(a)(9)’’ and inserting ‘‘para7 graphs (2), (3), (4), (5), (6), and (8) of section 

8 704’’; and 

9 (B) in paragraph (5), by striking 

10 ‘‘704(a)(8)’’ and inserting ‘‘704(7)’’; and 

11 (2) in subsection (c)(1)(C), by striking clause 

12 (iv) and inserting the following: 

13 ‘‘(iv) the name of each creditor that 

14 holds a claim that is not discharged under 

15 paragraph (2) or (4) of section 523(a) of 

16 this title.’’. 

17 (hhh) CONVERSION OR DISMISSAL.—Section 1208 of 

18 title 11, United States Code, is amended— 

19 (1) in subsection (a) by striking ‘‘7 of’’ and in20 serting ‘‘7 or 10 of’’; and 

21 (2) in subsection (b) by striking ‘‘or 1112’’ and 

22 inserting ‘‘, 1005, 1053(c), or 1112’’. 

23 (iii) DISCHARGE.—Section 1228 of title 11, United 

24 States Code, is amended by striking subsection (f). 


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1 SEC. 105. DATA COLLECTION. 

2 Section 159 of title 28, United States Code, is 

3 amended by striking subsections (a), (b), and (c) and in4 serting the following: 

5 ‘‘(a)(1) When a case is filed under chapter 10 of title 

6 11, each debtor in the case may file with the court the 

7 following information about the debtor: 

8 ‘‘(A) Marital status. 

9 ‘‘(B) Age. 

10 ‘‘(C) Sex. 

11 ‘‘(D) Race. 

12 ‘‘(E) Ethnicity. 

13 ‘‘(2) The Attorney General, in consultation with the 

14 Consumer Bankruptcy Ombuds of the Bureau of Con15 sumer Financial Protection and the Director of the Ad16 ministrative Office of the United States Courts (referred 

17 to in this section as the ‘Director’), shall prescribe a 

18 standard form for the collection of the information de19 scribed in paragraph (1). 

20 ‘‘(3) Any information collected, stored, received, or 

21 published under paragraph (1) shall— 

22 ‘‘(A) be so collected, stored, received, or pub23 lished in a manner that protects the privacy of indi24 viduals whose information is included in such data; 


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1 ‘‘(B) be de-identified or anonymized in a man2 ner that protects the identity of all individuals whose 

3 information is included in such data; and 

4 ‘‘(C) be limited in use for the purpose of identi5 fying and addressing disparities in the bankruptcy 

6 system and be protected from all other internal use 

7 by any entity that collects, stores, or receives the in8 formation and from any other inappropriate uses. 

9 ‘‘(4) Any information collected under paragraph 

10 (1)— 

11 ‘‘(A) shall not be part of the public record of 

12 the bankruptcy case; and 

13 ‘‘(B) shall be maintained in a nonpublic record 

14 by the court to fulfill its duties under subsection (b). 

15 ‘‘(b) The clerk of the district court, or the clerk of 

16 the bankruptcy court if one is certified pursuant to section 

17 156(b), shall collect information regarding individual debt18 ors seeking relief under chapter 10 of title 11. The infor19 mation shall be in a standardized format prescribed by 

20 the Director so that the Director can fulfill the duties in 

21 subsection (c). 

22 ‘‘(c)(1) In this subsection, the term ‘qualified re23 searcher’ means a person who has undertaken to protect 

24 the confidentiality and privacy of the information in the 

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1 proved by an institutional review board that is estab2 lished— 

3 ‘‘(A) to protect the rights and welfare of human 

4 subjects participating in scientific research; and 

5 ‘‘(B) in accordance with the requirements es6 tablished under part 46 of title 45, Code of Federal 

7 Regulations, or any successor thereto. 

8 ‘‘(2) The Director shall— 

9 ‘‘(A) compile statistical tables from the infor10 mation referred to in subsections (a) and (b) and 

11 make the tables available to the public; 

12 ‘‘(B) not later than July 1, 2022, and annually 

13 thereafter, prepare, and submit to Congress a report 

14 concerning the information collected under sub15 sections (a) and (b) that contains an analysis of the 

16 information; and 

17 ‘‘(C) not later than December 31 of the year 

18 following the calendar year in which the information 

19 is collected, make available to— 

20 ‘‘(i) qualified researchers an electronic 

21 database containing the information collected 

22 under subsections (a) and (b) or used to create 

23 the compilation required by this subsection; and 

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1 section (b) or used to create the compilation re2 quired by this subsection. 

3 ‘‘(d) The compilation required under subsection (c) 

4 shall— 

5 ‘‘(1) be presented in the aggregate and for each 

6 judicial district and division; and 

7 ‘‘(2) include information concerning— 

8 ‘‘(A) the total assets and total liabilities of 

9 the debtors and in each category of assets and 

10 liabilities, as reported in the schedules pre11 scribed pursuant to section 2075 and filed by 

12 debtors; 

13 ‘‘(B) the current monthly income of debt14 ors as reported on the schedules and statements 

15 that each debtor files under section 521 of title 

16 11; 

17 ‘‘(C) the total compensation the debtors 

18 promised to pay to an attorney, the amount of 

19 the compensation paid to an attorney before fil20 ing, and the total number of cases in which a 

21 wage garnishment order or electronic funds 

22 transfer order was entered to pay an attorney; 

23 ‘‘(D) the total number of dependents of the 

24 debtors and the total number of dependents of 

25 the debtors under the age of 18; 


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1 ‘‘(E) whether the debtors had an owner2 ship interest in real estate that served as the 

3 debtors’ principal residence; 

4 ‘‘(F) whether the debtors had an owner5 ship interest in real estate other than that 

6 served as the debtors’ principal residence; 

7 ‘‘(G) the minimum payment obligation of 

8 the debtors as determined under section 

9 101(54) of title 11; 

10 ‘‘(H) whether the debtors filed a repay11 ment plan, a residence plan, or a property plan; 

12 and 

13 ‘‘(I) the average period of time between the 

14 date of the filing of the petition and the closing 

15 of the case for cases closed during the reporting 

16 period. 

17 ‘‘(e) The Director may add other information to the 

18 compilations and databases required by this section that 

19 improve the understanding of the causes of bankruptcy 

20 and the functioning of the bankruptcy system.’’. 

21 SEC. 106. ELECTRONIC SIGNATURES. 

22 (a) ELECTRONIC SIGNATURE DEFINED.—In this sec23 tion, the term ‘‘electronic signature’’ has the meaning 

24 given the term in section 106 of the Electronic Signatures 

25 in Global and National Commerce Act (15 U.S.C. 7006). 


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1 (b) ELECTRONIC SIGNATURES ALLOWED.—A signa2 ture required for a filing in a case under title 11, United 

3 States Code, may not be denied legal effect, validity, or 

4 enforceability solely because it is an electronic signature. 

5 (c) ORIGINAL ELECTRONIC SIGNATURES AL6 LOWED.—In a case under title 11, United States Code, 

7 an original signature may be an electronic signature. 

8 SEC. 107. JUDICIAL EDUCATION. 

9 The Director of the Federal Judicial Center, in con10 sultation with the Director of the Executive Office for 

11 United States Trustees, shall develop materials and con12 duct training that may be useful to courts in implementing 

13 this Act and the amendments made by this Act. 

14 SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS. 

15 (a) BANKRUPTCY ABUSE AND CONSUMER PROTEC16 TION ACT OF 2005.— 

17 (1) AUDIT PROCEDURES.—Section 603 of the 

18 Bankruptcy Abuse Prevention and Consumer Pro19 tection Act of 2005 (28 U.S.C. 586 note) is amend20 ed by striking subsection (a). 

21 (2) JUDICIAL EDUCATION.—Section 1226 of the 

22 Bankruptcy Abuse Prevention and Consumer Pro23 tection Act of 2005 (11 U.S.C. 101 note) is re24 pealed. 


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1 (3) TAX DOCUMENTS.—Section 1228(b) of the 

2 Bankruptcy Abuse Prevention and Consumer Pro3 tection Act of 2005 (11 U.S.C. 521 note) is re4 pealed. 

5 (b) CONSOLIDATED FARM AND RURAL DEVELOP6 MENT ACT.—Section 373(b)(2)(A)(ii) of the Consolidated 

7 Farm and Rural Development Act (7 U.S.C. 

8 2008h(b)(2)(A)(ii)) is amended by striking ‘‘11, 12, or 

9 13’’ and inserting ‘‘10, 11, or 12’’. 

10 (c) CONSUMER CREDIT PROTECTION ACT.—Section 

11 303(b)(1)(B) of the Consumer Credit Protection Act (15 

12 U.S.C. 1673(b)(1)(B)) is amended by striking ‘‘any order 

13 of any court of bankruptcy under chapter XIII of the 

14 Bankruptcy Act’’ and inserting ‘‘any order of any court 

15 of the United States having jurisdiction over cases under 

16 title 11; and’’. 

17 (d) HIGHER EDUCATION ACT OF 1965.—Section 

18 437(b) of the Higher Education Act of 1965 (20 U.S.C. 

19 1087(b)) is amended— 

20 (1) in paragraph (1), by striking ‘‘chapter 12 or 

21 13’’ and inserting ‘‘chapter 10 or 12’’; and 

22 (2) in paragraphs (2) and (3), by striking 

23 ‘‘chapter 7 or 11’’ and inserting ‘‘chapter 10, 11, or 

24 12’’. 


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1 (e) HOUSING AND COMMUNITY DEVELOPMENT

2 AMENDMENTS OF 1978.—Section 201(l)(2)(C) of the 

3 Housing and Community Development Amendments of 

4 1978 (12 U.S.C. 1715z–1a(l)(2)(C)) is amended by strik5 ing ‘‘727, 1141, or 1328(b)’’ and inserting ‘‘1031, 1141, 

6 or 1192’’. 

7 (f) TITLE 28.—Title 28, United States Code, is 

8 amended— 

9 (1) in section 157(b)(2)— 

10 (A) in subparagraph (B), by striking 

11 ‘‘chapter 11, 12, or 13’’ and inserting ‘‘chapter 

12 10, 11, or 12’’; 

13 (B) in subparagraph (O), by striking 

14 ‘‘and’’; 

15 (C) in subparagraph (P), by striking the 

16 period at the end and inserting ‘‘; and’’; and 

17 (D) by adding at the end the following: 

18 ‘‘(Q) proceedings to enforce rights under 

19 sections 524 or 525 of title 11.’’; 

20 (2) in section 589b— 

21 (A) in subsection (a)(1), by striking ‘‘chap22 ters 7, 12, and 13’’ and inserting ‘‘chapters 7, 

23 10, and 12’’; and 

24 (B) in subsection (d)— 


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1 (i) in the matter preceding paragraph 

2 (1), by striking ‘‘chapters 7, 12, and 13’’ 

3 and inserting ‘‘chapters 7, 10, and 12’’; 

4 (ii) in paragraph (5), by striking ‘‘, 

5 including for use under section 707(b), ac6 tual costs of administering cases under 

7 chapter 13 or chapter 11’’; and 

8 (iii) in the matter following paragraph 

9 (8), by striking ‘‘chapters 12 and 13’’ and 

10 inserting ‘‘chapters 10 and 12’’; and 

11 (3) in section 3014(a)(1), by striking ‘‘section 

12 522(d)’’ and inserting ‘‘section 522(b)’’. 

13 (g) TITLE 38.—Section 3732(a)(2)(B) of title 38, 

14 United States Code, is amended by striking ‘‘1322(b)’’ 

15 and inserting ‘‘1022(b)’’. 

16 TITLE II—CONSUMER FINAN17 CIAL PROTECTION AMEND18 MENTS 

19 SEC. 201. AMENDMENTS TO THE CONSUMER FINANCIAL 

20 PROTECTION ACT OF 2010. 

21 (a) CONSUMER BANKRUPTCY OMBUDS.—The Con22 sumer Financial Protection Act of 2010 (12 U.S.C. 5481 

23 et seq.) is amended by inserting after section 1035 (12 

24 U.S.C. 5535) the following: 


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1 ‘‘SEC. 1035A. CONSUMER BANKRUPTCY OMBUDS. 

2 ‘‘(a) ESTABLISHMENT.—The Director, in consulta3 tion with the Attorney General, shall designate a Con4 sumer Bankruptcy Ombuds (in this section referred to as 

5 the ‘Ombuds’) within the Bureau, to provide timely assist6 ance to individual debtors in bankruptcy. 

7 ‘‘(b) PUBLIC INFORMATION.—The Director and the 

8 Attorney General and the bankruptcy clerks appointed 

9 under section 156(b) of title 11, United States Code, shall 

10 disseminate information about the availability and func11 tions of the Ombuds to individual debtors in bankruptcy 

12 and consumer bankruptcy attorneys and consumer credit 

13 counseling agencies. 

14 ‘‘(c) FUNCTIONS OF OMBUDS.—The Ombuds des15 ignated under this subsection shall— 

16 ‘‘(1) in accordance with regulations of the Di17 rector, receive, review, and attempt to resolve infor18 mally complaints from individual debtors in bank19 ruptcy, including, as appropriate, attempts to resolve 

20 such complaints in collaboration with creditors, the 

21 United States Trustee Program of the Department 

22 of Justice, trustees in bankruptcy, the bankruptcy 

23 clerks appointed under section 156(b) of title 11, 

24 United States Code, and consumer privacy ombuds25 men and future claims representatives appointed in 

26 bankruptcy; 


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1 ‘‘(2) not later than 90 days after the date of 

2 enactment of this section, establish a memorandum 

3 of understanding with the Executive Office of the 

4 United States Trustee Program, to ensure coordina5 tion in providing assistance to and serving individual 

6 debtors in bankruptcy seeking to resolve complaints 

7 related to their bankruptcy cases; 

8 ‘‘(3) compile and analyze data on consumer 

9 bankruptcy filings, including on the causes of indi10 vidual bankruptcy filings, the relationship between 

11 consumer bankruptcy filings and consumer financial 

12 products and services, and any disparities in the 

13 bankruptcy system, including any disparities based 

14 on the demographic categories described in section 

15 159(a)(1) of title 28, United States Code; 

16 ‘‘(4) compile and analyze data on complaints 

17 from individual debtors in bankruptcy; 

18 ‘‘(5) make recommendations to the Director 

19 and the Attorney General regarding the filing of 

20 amicus curiae briefs and making appearances in in21 dividual bankruptcy cases, particularly in the cases 

22 involving repeat patterns of creditor behavior; 

23 ‘‘(6) consult with the Director of the Adminis24 trative Office of the United States Courts regarding 

25 the duties of that officer under section 159 of title 


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1 28, United States Code, regarding data collection 

2 and reporting; and 

3 ‘‘(7) make other appropriate recommendations 

4 to the Director, the Attorney General, the Com5 mittee on Banking, Housing, and Urban Affairs and 

6 the Committee on the Judiciary of the Senate and 

7 the Committee on Financial Services and the Com8 mittee on Judiciary of the House of Representatives. 

9 ‘‘(d) ANNUAL REPORTS.— 

10 ‘‘(1) IN GENERAL.—The Ombuds shall prepare 

11 an annual report that describes the activities, and 

12 evaluates the effectiveness of the Ombuds during the 

13 preceding year. 

14 ‘‘(2) SUBMISSION.—The report required by 

15 paragraph (1) shall be submitted on the same date 

16 annually to the Attorney General, the Committee on 

17 Banking, Housing, and Urban Affairs and the Com18 mittee on the Judiciary of the Senate and the Com19 mittee on Financial Services and the Committee on 

20 the Judiciary of the House of Representatives.’’. 

21 (b) SUPERVISION OF HIGHER COST LENDERS.—Sec22 tion 1024(a)(1)(E) of the Consumer Financial Protection 

23 Act of 2010 (12 U.S.C. 5514(a)(1)(E)) is amended by 

24 striking ‘‘a payday loan’’ and inserting ‘‘a loan with an 

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1 termined under section 987(i)(4) of title 10, United States 

2 Code’’. 

3 (c) VIOLATIONS OF DISCHARGE INJUNCTION.—Sec4 tion 1036(a) of the Consumer Financial Protection Act 

5 of 2010 (12 U.S.C. 5536(a)), is amended— 

6 (1) in paragraph (2)(C), by striking ‘‘or’’ at the 

7 end; 

8 (2) in paragraph (3), by striking the period at 

9 the end and inserting ‘‘; or’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(4) to violate section 524(a) of title 11, United 

12 States Code, in a case involving an individual debt13 or.’’. 

14 (d) AUTHORITY TO EXERCISE SUPERVISION AND

15 ENFORCEMENT AUTHORITY REGARDING BANKRUPTCY

16 LAW.— 

17 (1) DEFINITIONS.—Section 1002(12) of the 

18 Consumer Financial Protection Act of 2010 (12 

19 U.S.C. 5481(12)) is amended— 

20 (A) in subparagraph (Q), by striking 

21 ‘‘and’’ and the end; 

22 (B) in subparagraph (R), by striking the 

23 period at the end and inserting a semicolon; 

24 and 

25 (C) by adding at the end the following: 


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1 ‘‘(S) title 11, United States Code, with re2 spect to individual debtors.’’. 

3 (2) EXCEPTION FROM RULEMAKING.—Section 

4 1022 of the Consumer Financial Protection Act of 

5 2010 (12 U.S.C. 5512) is amended by inserting ‘‘, 

6 except title 11, United States Code,’’ after ‘‘Federal 

7 consumer financial laws’’ each place the term ap8 pears. 

9 (e) AVERAGE PRIME OFFER RATE FOR MOTOR VE10 HICLE FINANCINGS.— 

11 (1) IN GENERAL.—Not later than 1 year after 

12 the date of enactment of this Act, and not less fre13 quently than monthly thereafter, the Bureau of Con14 sumer Financial Protection shall publish on the 

15 website of the Bureau the following information with 

16 respect to motor vehicle financing: 

17 (A) The current (as of the date of publica18 tion) average prime offer rate for that type of 

19 financing, including the provision of that fi20 nancing through retail installment sales con21 tracts. 

22 (B) The most common duration of that 

23 type of financing. 

24 (C) Rate structures for financings for the 

25 purchase of new and used light motor vehicles 


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1 that are used primarily for personal, family, or 

2 household use. 

3 (2) DATA COLLECTION.—In carrying out para4 graph (1), the Bureau of Consumer Financial Pro5 tection may engage in the collection of information 

6 without regard to chapter 35 of title 44, United 

7 States Code. 

8 SEC. 202. AMENDMENTS TO THE TRUTH IN LENDING ACT. 

9 Section 130 of the Truth in Lending Act (15 U.S.C. 

10 1640) is amended— 

11 (1) in subsection (a)(2)— 

12 (A) in subparagraph (A)— 

13 (i) by striking ‘‘$200’’ and inserting 

14 ‘‘$1,600’’; 

15 (ii) by striking ‘‘$2,000’’ and insert16 ing ‘‘$16,000’’; 

17 (iii) by striking ‘‘$500’’ and inserting 

18 ‘‘$4,000’’; 

19 (iv) by striking ‘‘$5,000’’ and insert20 ing ‘‘$40,000’’; 

21 (v) by striking ‘‘$400’’ and inserting 

22 ‘‘$3,200’’; and 

23 (vi) by striking ‘‘$4,000’’ and insert24 ing ‘‘$32,000’’; and 


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1 (B) in subparagraph (B), by striking 

2 ‘‘$1,000,000 or 1’’ and inserting ‘‘$8,000,000 

3 or 5’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(m) ADJUSTMENTS.—On April 1, 2022, and each 

6 April 1 thereafter, each dollar amount in effect under sub7 sections (a) and (b) on the day before such April 1 shall 

8 be adjusted— 

9 ‘‘(1) to reflect the change in the Consumer 

10 Price Index for All Urban Consumers, published by 

11 the Department of Labor, for the most recent period 

12 ending immediately before January 1 preceding such 

13 April 1; and 

14 ‘‘(2) to round to the nearest $25 the dollar 

15 amount that represents the change described in 

16 paragraph (1).’’. 

17 SEC. 203. AMENDMENTS TO THE FAIR CREDIT REPORTING 

18 ACT. 

19 The Fair Credit Reporting Act (15 U.S.C. 1681 et 

20 seq.) is amended— 

21 (1) in section 605(a) (15 U.S.C. 1681c(a)), by 

22 striking paragraph (1) and inserting the following: 

23 ‘‘(1) Cases under title 11, United States Code, 

24 that, from the date of entry of the order for relief, 

25 antedate the report by more than 7 years.’’; and 


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1 (2) in section 616 (15 U.S.C. 1681n)— 

2 (A) in subsection (a)(1)— 

3 (i) in subparagraph (A)— 

4 (I) by striking ‘‘$100’’ and in5 serting ‘‘$700’’; and 

6 (II) by striking ‘‘$1,000’’ and in7 serting ‘‘$7,000’’; and 

8 (ii) in subparagraph (B), by striking 

9 ‘‘$1,000’’ and inserting ‘‘$7,000’’; 

10 (B) in subsection (b), by striking ‘‘$1,000’’ 

11 and inserting ‘‘$7,000’’; and 

12 (C) by adding at the end the following: 

13 ‘‘(e) ADJUSTMENT.—On April 1, 2022, and each 

14 April 1 thereafter, each dollar amount in effect under sub15 sections (a) and (b) on the day before such April 1 shall 

16 be adjusted— 

17 ‘‘(1) to reflect the change in the Consumer 

18 Price Index for All Urban Consumers, published by 

19 the Department of Labor, for the most recent period 

20 ending immediately before January 1 preceding such 

21 April 1; and 

22 ‘‘(2) to round to the nearest $25 the dollar 

23 amount that represents the change described in 

24 paragraph (1).’’. 


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1 SEC. 204. AMENDMENTS TO THE EQUAL CREDIT OPPOR2 TUNITY ACT. 

3 Section 706 of the Equal Credit Opportunity Act (15 

4 U.S.C. 1691e) is amended— 

5 (1) in subsection (b)— 

6 (A) by striking ‘‘$10,000’’ and inserting 

7 ‘‘$60,000’’; and 

8 (B) by striking ‘‘500,000 or 1’’ and insert9 ing ‘‘$5,000,000 or 5’’; 

10 (2) by adding at the end the following: 

11 ‘‘(l) ADJUSTMENT.—On April 1, 2022, and each 

12 April 1 thereafter, each dollar amount in effect under sub13 section (b) on the day before such April 1 shall be ad14 justed— 

15 ‘‘(1) to reflect the change in the Consumer 

16 Price Index for All Urban Consumers, published by 

17 the Department of Labor, for the most recent period 

18 ending immediately before January 1 preceding such 

19 April 1; and 

20 ‘‘(2) to round to the nearest $25 the dollar 

21 amount that represents the change described in 

22 paragraph (1).’’. 

23 SEC. 205. AMENDMENTS TO THE FAIR DEBT COLLECTION 

24 PRACTICES ACT. 

25 The Fair Debt Collection Practices Act (15 U.S.C. 

26 1692 et seq.) is amended— 


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1 (1) in section 808 (15 U.S.C. 1692f), by adding 

2 at the end the following: 

3 ‘‘(9) Filing a lawsuit or a claim in a bankruptcy 

4 case that is based on a debt without an actual, rea5 sonable, good-faith belief that the applicable statute 

6 of limitations for enforcement of that debt has not 

7 expired at the time of filing. 

8 ‘‘(10) Any act to knowingly collect or attempt 

9 to collect a debt that has been discharged in bank10 ruptcy except acceptance of a purely voluntary pay11 ment of the debtor without encouragement or coer12 cion by the debt collector.’’; and 

13 (2) in section 813 (15 U.S.C. 1692k)— 

14 (A) in subsection (a)(2)— 

15 (i) in subparagraph (A), by striking 

16 ‘‘$1,000’’ and inserting ‘‘$5,000’’; and 

17 (ii) in subparagraph (B), by striking 

18 ‘‘$500,000 or 1’’ and inserting 

19 ‘‘$5,000,000 or 5’’; and 

20 (B) by adding at the end the following: 

21 ‘‘(f) On April 1, 2022, and each April 1 thereafter, 

22 each dollar amount in effect under paragraph (a)(2) on 

23 the day before such April 1 shall be adjusted— 

24 ‘‘(1) to reflect the change in the Consumer 

25 Price Index for All Urban Consumers, published by 


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1 the Department of Labor, for the most recent period 

2 ending immediately before January 1 preceding such 

3 April 1; and 

4 ‘‘(2) to round to the nearest $25 the dollar 

5 amount that represents the change described in 

6 paragraph (1).’’. 

7 SEC. 206. AMENDMENTS TO THE ELECTRONIC FUND 

8 TRANSFERS ACT. 

9 Section 916 of the Electronic Fund Transfers Act 

10 (15 U.S.C. 1693m) is amended— 

11 (1) in subsection (a)(2)— 

12 (A) in subparagraph (A)— 

13 (i) by striking ‘‘$100’’ and inserting 

14 ‘‘$500’’; and 

15 (ii) by striking ‘‘$1,000’’ and insert16 ing ‘‘$5,000’’; and 

17 (B) in subparagraph (B), by striking 

18 ‘‘$500,000 or 1’’ and inserting ‘‘$5,000,000 or 

19 5’’; and 

20 (2) by adding at the end the following: 

21 ‘‘(h) On April 1, 2022, and each April 1 thereafter, 

22 each dollar amount in effect under paragraph (a)(2) on 

23 the day before such April 1 shall be adjusted— 

24 ‘‘(1) to reflect the change in the Consumer 

25 Price Index for All Urban Consumers, published by 


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1 the Department of Labor, for the most recent period 

2 ending immediately before January 1 preceding such 

3 April 1, and 

4 ‘‘(2) to round to the nearest $25 the dollar 

5 amount that represents the change described in 

6 paragraph (1).’’. 

7 TITLE III—BANKRUPTCY RULES 

8 SEC. 301. RULES ENABLING ACT AMENDMENTS. 

9 (a) IN GENERAL.—Notwithstanding the third undes10 ignated paragraph of section 2075 of title 28, United 

11 States Code, the Supreme Court of the United States may 

12 prescribe by general rules, the forms of process, writs, 

13 pleadings, and motions, and the practice and procedure 

14 in cases under title 11, United States Code, as may be 

15 necessary to carry out this Act before the effective date 

16 of this Act. 

17 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

18 Section 2075 of title 28, United States Code, is amended 

19 by striking the fourth undesignated paragraph. 

20 (c) PLAIN WRITING.—In drafting the form required 

21 by section 1031(d) of title 11, as added by this Act, the 

22 Judicial Conference of the United States should comply 

23 with the requirements of the Plain Writing Act of 2010 

24 (5 U.S.C. 301 note). 

25 ‘‘(1) ‘‘157A. Fraudulent transfers.’’. 


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1 SEC. 302. BANKRUPTCY RULES AMENDMENTS. 

2 Rule 7004 of the Federal Rules of Bankruptcy Proce3 dure is amended by striking subdivision (h). 

4 SEC. 303. SENSE OF CONGRESS. 

5 It is the sense of Congress that the Judicial Con6 ference of the United States should— 

7 (1) promulgate a simplified version of the 

8 schedule of current income and current expenditures 

9 required under section 521(a)(1)(B)(ii) of title 11, 

10 United States Code, for debtors who, by virtue of 

11 section 521(c) of title 11, United States Code, are 

12 not subject to the documentation requirements of 

13 that section or the statement of annual income re14 quired by section 521(a)(1)(B)(v) of title 11, United 

15 States Code; and 

16 (2) draft rules that provide that, with respect to 

17 a case in which the debtor is an individual, the 

18 rights under section 542 of title 11, United States 

19 Code, may be enforced by motion. 

20 TITLE IV—FUNDING THE 

21 BANKRUPTCY SYSTEM 

22 SEC. 401. BANKRUPTCY FEES. 

23 Title 28, United States Code, is amended— 

24 (1) in section 589a(b), by amending paragraph 

25 (1) to read as follows: 


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1 ‘‘(1) 38.50 percent of the fees collected under 

2 section 1930(a)(1);’’; and 

3 (2) in section 1930— 

4 (A) in subsection (a)— 

5 (i) by amending paragraph (1) to read 

6 as follows: 

7 ‘‘(1) For a case commenced under chapter 10, 

8 $250.’’; 

9 (ii) in paragraph (6)(B)— 

10 (I) by striking ‘‘During each of 

11 fiscal years 2018 through 2022, if’’ 

12 and inserting ‘‘If’’; and 

13 (II) by striking ‘‘$200,000,000’’ 

14 and inserting ‘‘$250,000,000’’; and 

15 (iii) in the undesignated matter fol16 lowing paragraph (7), by striking ‘‘chapter 

17 7, or 13 of title 11’’ and inserting ‘‘chapter 

18 7 or 10 of title 11’’; 

19 (B) by redesignating subsections (c), (d), 

20 (e), and (f) as subsections (d), (e), (f), and (g), 

21 respectively; 

22 (C) by striking subsection (b) and insert23 ing the following: 


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1 ‘‘(b) On April 1, 2022, and each April 1 thereafter, 

2 the dollar amounts in effect under paragraph (a)(6)(A) 

3 on the day before such April 1 shall be adjusted— 

4 ‘‘(1) to reflect the change in the Consumer 

5 Price Index for All Urban Consumers, published by 

6 the Department of Labor, for the most recent period 

7 ending immediately before January 1 preceding such 

8 April 1; and 

9 ‘‘(2) to round to the nearest $25 the dollar 

10 amount that represents the change described in 

11 paragraph (1). 

12 ‘‘(c) The Judicial Conference of the United States 

13 may prescribe additional fees in cases under title 11, other 

14 than cases under chapter 10 of that title, of the same kind 

15 as the Judicial Conference prescribes under section 

16 1914(b) of this title.’’; and 

17 (D) in subsection (g), as so redesignated— 

18 (i) in paragraph (1), by striking ‘‘(1) 

19 Under’’ and all that follows and inserting 

20 the following: ‘‘(1)(A) Under the proce21 dures prescribed by the Judicial Con22 ference of the United States, the district 

23 court or the bankruptcy court may waive 

24 all fees payable to the clerk of the court in 

25 a case under chapter 10 of title 11 for an 


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1 individual if the court determines that such 

2 individual has income less than 150 per3 cent of the income official poverty line (as 

4 defined by the Office of Management and 

5 Budget, and revised annually in accord6 ance with section 673(2) of the Omnibus 

7 Budget Reconciliation Act of 1981) appli8 cable to a family of the size involved and 

9 is unable to pay that fee in installments. 

10 ‘‘(B) If the court determines that such an individual 

11 has income less than 100 percent of the income official 

12 poverty line applicable to a family of the size involved, 

13 such individual shall be conclusively presumed to be un14 able to pay that fee in instalments.’’; and 

15 (ii) in paragraph (2), by striking 

16 ‘‘subsections (b) and (c)’’ and inserting 

17 ‘‘subsections (c) and (d)’’. 

18 SEC. 402. TRUSTEE COMPENSATION. 

19 (a) AMENDMENTS.—Section 586 of title 28, United 

20 States Code, is amended— 

21 (1) in subsection (a)— 

22 (A) in paragraph (3)— 

23 (i) in the matter preceding subpara24 graph (A), by striking ‘‘chapter 7, 11 (in25 cluding subchapter V of chapter 11), 12, 


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1 13, or 15’’ and inserting ‘‘chapter 7, 10, 

2 11 (including subchapter V of chapter 11), 

3 12, or 15’’; and 

4 (ii) in subparagraph (C)— 

5 (I) by striking ‘‘chapters 12 and 

6 13 of title 11’’ and inserting ‘‘chap7 ters 10 and 12 of title 11’’; and 

8 (II) by striking ‘‘sections 1224, 

9 1229, 1324, and 1329’’ and inserting 

10 ‘‘sections 1024, 1025(k), 1224, and 

11 1229’’; 

12 (B) by striking paragraph (6); and 

13 (C) by redesignating paragraphs (7) and 

14 (8) as paragraphs (6) and (7), respectively; 

15 (2) by amending subsection (b) to read as fol16 lows: 

17 ‘‘(b) If the number of cases under chapter 10 or 12 

18 of title 11 or subchapter V of chapter 11 of title 11 com19 menced in a particular region so warrants, the United 

20 States trustee for such region may, subject to the approval 

21 of the Attorney General, appoint 1 or more individuals to 

22 serve as standing trustee, or designate 1 or more assistant 

23 United States trustees to serve in cases under such chap24 ter. The United States trustee may also establish, main25 tain, and supervise a panel of private trustees that are 


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1 eligible and available to serve as trustees in cases under 

2 chapter 10 of title 11. The United States trustee for such 

3 region shall supervise the performance of the duties of any 

4 such individual appointed under this subsection.’’; 

5 (3) in subsection (d)(1), by striking ‘‘under 

6 subchapter V of chapter 11 or chapter 12 or 13 of 

7 title 11’’ each place it appears and inserting ‘‘chap8 ter 10 or 12 of title 11 or subchapter V of chapter 

9 11 of title 11’’; 

10 (4) in subsection (e)— 

11 (A) in paragraph (1), in the matter pre12 ceding subparagraph (A), by striking ‘‘under 

13 subchapter V of chapter 11 or chapter 12 or 13 

14 of title 11’’ and inserting ‘‘chapter 12 of title 

15 11 or subchapter V of chapter 11’’; 

16 (B) in paragraph (2)— 

17 (i) in the matter preceding subpara18 graph (A), by striking ‘‘under subchapter 

19 V of chapter 11 or chapter 12 or 13 of 

20 title 11’’ and inserting ‘‘chapter 12 of title 

21 11 or subchapter V of chapter 11 of title 

22 11’’; 

23 (ii) in subparagraph (A), by striking 

24 ‘‘under subchapter V of chapter 11 or 

25 chapter 12 or 13 of title 11’’ and inserting 


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1 ‘‘chapter 12 of title 11 or subchapter V of 

2 chapter 11 of title 11’’; and 

3 (iii) in subparagraph (B)(ii), by strik4 ing ‘‘subparagraph (d)(1)(B)’’ and insert5 ing ‘‘subparagraph (e)(1)(B)’’; 

6 (C) by redesignating paragraphs (3), (4), 

7 and (5) as paragraphs (5), (6), and (7), respec8 tively; and 

9 (D) by inserting after paragraph (2) the 

10 following: 

11 ‘‘(3) The Attorney General, after consultation 

12 with a United States trustee that has appointed an 

13 individual under subsection (b) of this section to 

14 serve as standing trustee in cases under chapter 10 

15 of title 11, shall fix— 

16 ‘‘(A) a maximum annual compensation for 

17 such individual consisting of— 

18 ‘‘(i) an amount not to exceed the 1.25 

19 times the highest annual rate of basic pay 

20 in effect for a position at level IV of the 

21 Executive Schedule under section 5315 of 

22 title 5; and 

23 ‘‘(ii) the cash value of employment 

24 benefits comparable to the employment 

25 benefits provided by the United States to 


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1 individuals who are employed by the 

2 United States at the same rate of basic 

3 pay to perform similar services during the 

4 same period of time; and 

5 ‘‘(B) a percentage fee not to exceed 10 

6 percent. 

7 ‘‘(4) An individual serving as standing trustee 

8 in cases under chapter 10 of title 11 shall collect 

9 such percentage fee from all payments received by 

10 such individual (including the value of property ten11 dered to such individual) under plans in such cases 

12 for which such individual serves as standing trustee. 

13 Such individual shall pay to the United States trust14 ee, and the United States trustee shall deposit in the 

15 United States Trustee System Fund— 

16 ‘‘(A) any amount by which the actual com17 pensation of such individual exceeds 5 percent 

18 upon all payments received under plans in such 

19 cases for which such individual serves as stand20 ing trustee; and 

21 ‘‘(B) any amount by which the percentage 

22 fee for all such cases exceeds— 

23 ‘‘(i) such individual’s actual com24 pensation for such cases, as adjusted under 

25 subparagraph (A) of paragraph (3); plus 


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1 ‘‘(ii) the actual, necessary expenses in2 curred by such individual as standing 

3 trustee in such cases. Subject to the ap4 proval of the Attorney General, any or all 

5 of the interest earned from the deposit of 

6 payments under plans by such individual 

7 may be utilized to pay actual, necessary ex8 penses without regard to the percentage 

9 limitation contained in paragraph (3)(B) of 

10 this subsection.’’; and 

11 (5) by striking subsection (f). 

12 (b) REGULATIONS.—Not later than 1 year after the 

13 date of enactment of this Act, the Attorney General shall 

14 promulgate regulations to implement a process for sub15 stituting a trustee under section 1001 of title 11, United 

16 States Code, when necessary. 

17 TITLE V—BANKRUPTCY LIEN 

18 FILING SYSTEM 

19 SEC. 501. BANKRUPTCY LIEN FILING SYSTEM. 

20 (a) IN GENERAL.—Not later than 1 year after the 

21 date of enactment of this Act, the Director of the Execu22 tive Office for United States Trustees shall establish a 

23 searchable electronic system for the filing of liens created 

24 by, or under, title 11, United States Code, including— 


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1 (1) liens created under section 1028(i)(1) of 

2 that title; and 

3 (2) liens created pursuant to any order issued 

4 in a case under that title. 

5 (b) REGULATIONS.—The Attorney General shall pro6 mulgate any necessary regulations to effectuate the estab7 lishment and operation of the filing system required under 

8 subsection (a), including regulations relating to the effect 

9 of the filing of a lien in the system. 

10 TITLE VI—MISCELLANEOUS 

11 SEC. 601. EFFECTIVE DATE. 

12 The provisions of this Act and the amendments made 

13 by this Act shall take effect on the date that is 1 year 

14 after the date of enactment of this Act. 

15 SEC. 602. TRANSITION. 

16 A case commenced under title 11, United States 

17 Code, before the date that is 1 year after the date of enact18 ment of this Act, and all matters and proceedings in or 

19 relating to any such case, shall be conducted and deter20 mined as if this Act had not been enacted, and the sub21 stantive rights of parties in connection with any such 

22 bankruptcy case, matter, or proceeding shall continue to 

23 be governed by the law applicable to such case, matter, 

24 or proceeding as if the Act had not been enacted. 


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1 SEC. 603. SEVERABILITY. 

2 If any provision of this Act, an amendment made by 

3 this Act, or the application of such provision or amend4 ment to any person or circumstance is held to be invalid 

5 or unconstitutional, the remainder of this Act, the amend6 ments made by this Act, and the application of such provi7 sions to any person or circumstance shall not be affected 

8 thereby. 

Æ 


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