II 

118TH CONGRESS 

2D SESSION S. 5577 

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 18 (legislative day, DECEMBER 16), 2024 

Ms. WARREN (for herself and Mr. WHITEHOUSE) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

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 2024’’. 

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 

Sec. 101. Findings and purpose. 


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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—MISCELLANEOUS 

Sec. 501. Effective date. 

Sec. 502. Transition. 

Sec. 503. 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 

10 ensures that they can participate fully in the United 

11 States economy; 


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

2 and, since then, consumer lending has grown dra3 matically and been transformed by technology and 

4 the preemption of State usury and consumer protec5 tion laws for certain types of lenders; 

6 (3) unnecessary paperwork and overly complex 

7 laws increase the cost of bankruptcy and prevent in8 dividuals and families in the United States who need 

9 help from accessing the bankruptcy system; 

10 (4) many consumer debtors cannot afford bank11 ruptcy counsel and must instead save up to pay an 

12 attorney to file their bankruptcy petitions; 

13 (5) the dual-track bankruptcy system produces 

14 racially disparate outcomes that disadvantage people 

15 of color; 

16 (6) student loan debt burdens are creating dis17 tortions in the labor and housing market; 

18 (7) the nondischargeability of private student 

19 loan debt has not resulted in lower financing costs 

20 for student loan borrowers; 

21 (8) the inability of debtors to restructure home 

22 mortgage loans has led to unnecessary foreclosures 

23 that have created hardships for individuals and fam24 ilies and their communities without reducing costs of 

25 mortgage financing; 


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1 (9) individuals and families often rely on their 

2 cars to get to work and to get dependents to school 

3 and medical appointments but often cannot retain 

4 their cars in bankruptcy without paying substan5 tially more than the car is worth; 

6 (10) the difficulty of enforcing the discharge in7 junction has enabled illegal debt collection activity 

8 that undercuts the fresh start policy of bankruptcy; 

9 (11) existing law does not provide a sufficient 

10 deterrent to predatory creditors that harm individ11 uals and families in bankruptcy by violating con12 sumer financial laws or failing to comply with bank13 ruptcy rules; and 

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

15 repaying creditors through asset protection planning. 

16 (b) PURPOSE.—The purpose of this Act is to estab17 lish a bankruptcy system that helps individuals and fami18 lies in the United States regain financial stability and pro19 tects against abusive and predatory behavior by— 

20 (1) streamlining the process of filing for bank21 ruptcy, simplifying court procedures in bankruptcy, 

22 and lowering the cost of bankruptcy for both con23 sumers and creditors; 

24 (2) creating a single-chapter consumer bank25 ruptcy system that allows consumers greater flexiVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 bility in addressing their debts and prevents dis2 parate treatment of similarly situated consumers; 

3 (3) offering consumers more and better options 

4 to deal with debts, while ensuring the fair treatment 

5 of creditors; 

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

7 attorney for counsel or representation in a bank8 ruptcy case; 

9 (5) simplifying the identification and treatment 

10 of cases by expanding the number of routine cases 

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

12 chance of a reasonable payment to creditors and re13 ducing paperwork requirements in those routine 

14 cases; 

15 (6) allowing the modification of mortgages on 

16 all residences; 

17 (7) allowing the modification of car loans based 

18 on the market value of a car; 

19 (8) allowing the discharge of student loan debt 

20 on equal terms with most other types of debt; 

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

22 disparities in the availability, accessibility, costs, and 

23 outcomes with respect to the bankruptcy process; 

24 (10) ensuring the fair treatment of claimants 

25 for domestic support obligations; 


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1 (11) reducing abusive creditor behavior; and 

2 (12) closing bankruptcy loopholes that allow the 

3 wealthy to exploit the bankruptcy process. 

4 SEC. 102. CHAPTER 10 INDIVIDUAL BANKRUPTCY. 

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

6 amended by inserting after section 946 the following: 

7 ‘‘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

‘‘1051. Election of limited proceeding. 

‘‘1052. Effect of limited proceeding. 

‘‘1053. Dismissal or conversion of limited proceedings. 


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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 322 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.—With respect to a case 

5 that has not been converted under subsection 

6 (a)— 

7 ‘‘(i) at the request of the debtor be8 fore any plan is confirmed under section 

9 1024, the court shall dismiss the case; and 

10 ‘‘(ii) at the request of the debtor after 

11 any plan is confirmed under section 1024, 

12 the court shall dismiss the case, unless the 

13 United States trustee or the trustee estab14 lishes that dismissal would not be in the 

15 best interest of creditors. 

16 ‘‘(B) WAIVER UNENFORCEABLE.—A waiv17 er of the right to dismiss a case under this sec18 tion shall be unenforceable. 

19 ‘‘(C) NO DISCHARGE.—In any case dis20 missed under this paragraph— 

21 ‘‘(i) the court shall not issue a dis22 charge; and 

23 ‘‘(ii) any discharge previously issued 

24 is revoked. 


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1 ‘‘§ 1006. Treatment of certain contracts and leases 

2 ‘‘Notwithstanding a provision in any contract or un3 expired lease, or in applicable law, with respect to any con4 tract or unexpired lease of the debtor, the contract or lease 

5 and any right or obligation under the contract or lease 

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

7 nor any individual liable on such contract or unexpired 

8 lease with the debtor may be declared in default under 

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

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

11 is conditioned on— 

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

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

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

15 title; 

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

17 by— 

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

19 ‘‘(B) a custodian before the commence20 ment of a case under this title; or 

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

22 other right under this title. 

23 ‘‘§ 1007. Treatment of rental purchase agreements 

24 ‘‘(a) DEFINITION OF RENTAL-PURCHASE AGREE25 MENT.—In this section, the term ‘rental-purchase agree26 ment’ means an agreement, irrespective of form— 


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

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

3 household purposes; 

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

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

6 debtor to become the owner of the property that is 

7 the subject of the agreement. 

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

9 of this chapter and notwithstanding applicable nonbank10 ruptcy law, the lessor on a rental-purchase agreement does 

11 not have an interest in the property covered by the rental12 purchase agreement. 

13 ‘‘(c) ELECTION TO RETAIN PROPERTY.—Notwith14 standing section 365, in a case under this chapter, the 

15 debtor may elect to retain the property covered by a rent16 al-purchase agreement. 

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

18 sections 365 and 503 and subject to section 502, if the 

19 debtor elects to retain the property covered by a rental20 purchase agreement, the liability of the debtor to a lessor21 seller under the rental-purchase agreement shall— 

22 ‘‘(1) be treated as if the liability arose imme23 diately before the date of the filing of the petition; 

24 ‘‘(2) not be treated as an administrative ex25 pense; and 


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1 ‘‘(3) be limited to the sum of— 

2 ‘‘(A) accrued and unpaid rent under the 

3 rental-purchase agreement; and 

4 ‘‘(B) future rent and other payments due 

5 under the rental-purchase agreement. 

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

7 construed to prohibit the debtor from terminating a rent8 al-purchase agreement. 

9 ‘‘(f) POST-DISCHARGE EXERCISE OF LESSOR-SELL10 ER’S RIGHTS PROHIBITED.—Any attempt to exercise the 

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

12 or applicable nonbankruptcy law after the issuance of a 

13 discharge under section 1031 shall be deemed to be a vio14 lation of section 524(a). 

15 ‘‘§ 1008. Obtaining credit 

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

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

18 103 of the Truth in Lending Act (15 U.S.C. 1602). 

19 ‘‘(b) OBTAINING CREDIT.— 

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

21 this chapter may not obtain credit outside the ordi22 nary course of the affairs of the debtor without prior 

23 authorization by the court. 

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

25 hearing, the court may authorize the debtor to obVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 tain credit under paragraph (1) or incur debt only 

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

3 ‘‘(3) VOIDING OF OTHER POST-PETITION CRED4 IT INCURRED.—Any credit obtained or debt incurred 

5 by a debtor not in accordance with this subsection 

6 is void. 

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

8 the court authorize the debtor to obtain credit with 

9 an annual percentage rate that exceeds the annual 

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

11 10. 

12 ‘‘(5) COMPLIANCE WITH NONBANKRUPTCY

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

14 section shall comply with applicable nonbankruptcy 

15 law. 

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

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

18 which the case is closed under section 350. 

19 ‘‘§ 1009. Stay of action against codebtor 

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

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

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

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

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


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1 individual that is liable on the consumer debt with the 

2 debtor or that secured the consumer debt, unless— 

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

4 the consumer debt in the ordinary course of business 

5 of the individual; or 

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

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

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

9 present a negotiable instrument, and may give notice of 

10 dishonor of such an instrument. 

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

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

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

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

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

16 protected under subsection (a), the individual re17 ceived consideration for the claim held by the cred18 itor; 

19 ‘‘(2) the plan filed by the debtor does not pro20 pose to pay the claim; or 

21 ‘‘(3) the interest of the creditor would be irrep22 arably harmed by a continuation of the stay. 

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

24 20 days after the date on which a party in interest files 

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1 vided under subsection (a), the stay shall be terminated 

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

3 any individual that is liable on the consumer debt with 

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

5 written objection to the proposed relief from the stay. 

6 ‘‘§ 1010. Interpretive principle 

7 ‘‘In cases in under this chapter, the provisions of this 

8 title shall be interpreted liberally in favor of relief for con9 sumer debtors. 

10 ‘‘SUBCHAPTER II—PLANS 

11 ‘‘§ 1021. Filing of plans 

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

13 (c), the debtor may file— 

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

15 the treatment of unsecured claims; 

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

17 the treatment of claims secured by the debtor’s prin18 cipal residence; or 

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

20 treatment of claims secured by property that is not 

21 the debtor’s principal residence. 

22 ‘‘(b) DEBTORS WITH NO MINIMUM PAYMENT OBLI23 GATION.— 

24 ‘‘(1) IN GENERAL.—A debtor that has a min25 imum payment obligation of $0 shall receive a disVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 charge under section 1031 without filing a plan if 

2 the debtor is otherwise eligible to receive a discharge 

3 under this chapter. 

4 ‘‘(2) OPTIONAL PLANS.—A debtor that has no 

5 minimum payment obligation may elect to file 1 or 

6 more plans under subsection (a). 

7 ‘‘(c) MULTIPLE PLANS.— 

8 ‘‘(1) IN GENERAL.— 

9 ‘‘(A) MORE THAN 1 PLAN.—Subject to 

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

11 more plans. 

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

13 a repayment plan of a debtor, the debtor may 

14 not file an additional repayment plan in a case 

15 under this chapter. 

16 ‘‘(2) SEPARATE TREATMENT.—Except as pro17 vided in section 1023(c), each plan shall be treated 

18 separately for purposes of confirmation, discharge, 

19 and revocation of an order of confirmation or dis20 charge. 

21 ‘‘(d) INVOLUNTARY CASES.—In a case commenced 

22 under section 303— 

23 ‘‘(1) a petitioning creditor may file only a re24 payment plan under which the minimum payment 

25 obligation of the debtor shall be calculated to exVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 clude any amounts required by clause (ii) of section 

2 101(54)(B); 

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

4 which shall supersede any repayment plan filed 

5 under paragraph (1); and 

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

7 repayment plan under paragraph (1) and the debtor 

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

9 the court shall confirm the repayment plan that is 

10 in the best interest of creditors. 

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

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

13 rule prescribed the Judicial Conference of the United 

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

15 for cause. 

16 ‘‘§ 1022. Contents of plans 

17 ‘‘(a) REPAYMENT PLANS.— 

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

19 ‘‘(A) shall provide that— 

20 ‘‘(i) the debtor shall satisfy the min21 imum payment obligation by— 

22 ‘‘(I) making deferred cash pay23 ments; or 

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

25 and subject to paragraph (2), tenVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 dering to the trustee all property of 

2 the estate that is not exempt under 

3 section 522 not later than 30 days 

4 after the date on which the court con5 firms the plan, unless the court orders 

6 a later date; 

7 ‘‘(ii) any payments under the repay8 ment plan occur during a period not to ex9 ceed 36 months from the date on which 

10 the first payment is due under a repay11 ment plan under section 1025(b)(1); and 

12 ‘‘(iii) any payment under a repayment 

13 plan, other than the final payment, shall 

14 be in an amount that is not less than the 

15 payments required for 36 equal monthly 

16 installments, unless the court orders other17 wise for cause, which may include the ir18 regular or seasonal nature of the debtor’s 

19 income; and 

20 ‘‘(B) may— 

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

22 for the assumption, rejection, or assign23 ment of any executory contract or unex24 pired lease of the debtor that has not preVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 viously been assumed or rejected under 

2 that section; 

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

4 in deferred cash payments, over the dura5 tion of the repayment plan, of any claim 

6 based on a debt of a kind described in sec7 tion 523 if the plan also provides for the 

8 payment in full, in deferred cash pay9 ments, of all claims entitled to priority 

10 under section 507, other than the claim of 

11 a holder that is based on a debt described 

12 in section 507 that agrees to a different 

13 treatment of that claim; 

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

15 other power of the debtor or the trustee 

16 under this title; 

17 ‘‘(iv) provide for an order garnishing 

18 the earnings of the debtor or ordering the 

19 authorization of electronic fund transfers 

20 from a deposit account of the debtor dur21 ing the duration of the repayment plan; 

22 and 

23 ‘‘(v) include any other appropriate 

24 provision not inconsistent with this title. 

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


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1 ‘‘(A) IN GENERAL.—The trustee shall re2 quest the tender of property of the estate that 

3 is not exempt under section 522 only if the liq4 uidation of such property would be reasonably 

5 likely to produce a meaningful distribution to 

6 creditors. 

7 ‘‘(B) INSTALLMENT REDEMPTION AS AN

8 ALTERNATIVE TO TENDER.—In lieu of ten9 dering nonexempt property of the estate under 

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

11 pay to the trustee under the repayment plan an 

12 amount equal to the value of the interest of the 

13 debtor in such property that is in excess of the 

14 sum of— 

15 ‘‘(i) any allowed secured claims that 

16 are secured by that property; and 

17 ‘‘(ii) any exemption applicable under 

18 section 522(b). 

19 ‘‘(C) EXECUTION OF DOCUMENTS TO PER20 FECT OR RECORD SECURITY INTEREST.—To 

21 satisfy the debtor’s obligation under paragraph 

22 (1)(A)(i)(II) and under this paragraph, the plan 

23 must provide that the debtor will execute any 

24 documents and cooperate with the trustee as 


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1 necessary to perfect or record the security inter2 est created by section 1028(i). 

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

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

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

6 residence; 

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

8 reasonable time of any default on any claim secured 

9 by the debtor’s principal residence in accordance 

10 with subsection (d); 

11 ‘‘(3) provide for payment of any allowed se12 cured claim secured by the debtor’s principal resi13 dence; 

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

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

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

17 than 180 days after the date of confirmation if the 

18 plan provides that— 

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

20 that is the debtor’s principal residence to the 

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

22 secured by any allowed secured claim of a jun23 ior lienholder; 

24 ‘‘(B) upon acceptance of the tender de25 scribed in subparagraph (A), the debtor shall 


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1 transfer the debtor’s principal residence to the 

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

3 days after acceptance of the tender; and 

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

5 the tender of the principal residence— 

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

7 the debtor’s principal residence shall be 

8 conducted in a commercially reasonable 

9 manner; and 

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

11 sale, any liens against the debtor’s prin12 cipal residence shall attach to the proceeds 

13 of the sale; 

14 ‘‘(5) provide for an order garnishing the earn15 ings of the debtor or authorizing electronic fund 

16 transfers from a deposit account of the debtor dur17 ing the duration of the residence plan, but only to 

18 the extent necessary to cure any default on a claim 

19 secured by the debtor’s principal residence in accord20 ance with subsection (d); and 

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

22 inconsistent with this title. 

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


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

2 holders of claims secured by the property, other than 

3 property that is the debtor’s principal residence; 

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

5 reasonable time of any default on any claim secured 

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

7 principal residence in accordance with subsection 

8 (d)(2); 

9 ‘‘(3) provide for payment of any allowed se10 cured claim secured by the property of the debtor 

11 that is not the debtor’s principal residence; 

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

13 holder of a secured claim— 

14 ‘‘(A) the seller or assignee of an install15 ment sales contract for personal property or the 

16 equivalent of such a contract; 

17 ‘‘(B) the lessor of a lease of personal prop18 erty, the term of which extends beyond the re19 maining economic life of the property; or 

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

21 of form, that is a security interest in personal 

22 property under applicable nonbankruptcy law; 

23 ‘‘(5) provide for an order garnishing the earn24 ings of the debtor or ordering the authorization of 

25 electronic fund transfers from a deposit account of 


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1 the debtor during the duration of the property plan; 

2 and 

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

4 inconsistent with this title. 

5 ‘‘(d) CURE OF DEFAULT.— 

6 ‘‘(1) PRINCIPAL RESIDENCE.—Notwithstanding 

7 any applicable nonbankruptcy law, a default with re8 spect to, or that gives rise to, a lien on the property 

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

10 by a residence plan under subsection (b) until the 

11 debtor ceases to have rights, including a right of re12 demption, in the property. 

13 ‘‘(2) AMOUNT TO CURE.— 

14 ‘‘(A) IN GENERAL.—Notwithstanding sec15 tion 506(b), if a repayment plan, a residence 

16 plan, or a property plan provides for the curing 

17 of a default, the amount necessary to cure the 

18 default shall be determined in accordance with 

19 the underlying agreement and applicable non20 bankruptcy law. 

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

22 under subparagraph (A) may not require— 

23 ‘‘(i) interest on arrearages; or 


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

2 late fee, or payment required under a pen3 alty provision or a similar provision. 

4 ‘‘§ 1023. Plan confirmation hearing 

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

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

7 under section 1021, the court shall hold a hearing on con8 firmation of the plan within such period of time as per9 mitted in a rule prescribed the Judicial Conference of the 

10 United States, except that the court may extend such time 

11 period for cause. 

12 ‘‘(b) CONFIRMATION WITHOUT HEARING.—If no ob13 jection is raised, the court shall, upon notice, promptly 

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

15 a hearing. 

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

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

18 single hearing on confirmation on all of the plans, un19 less— 

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

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

22 (b). 


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1 ‘‘§ 1024. Confirmation of plans 

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

3 (b), (c), and (d), the court shall confirm a plan under this 

4 section if all of the following requirements are met: 

5 ‘‘(1) The plan complies with the applicable pro6 visions of this title, other than section 1022(a)(1). 

7 ‘‘(2) Any fee, charge, or amount that is re8 quired to be paid before confirmation under chapter 

9 123 of title 28 or the plan has been paid. 

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

11 ‘‘(A) in bad faith, which may not be dem12 onstrated solely by the amount of payments 

13 proposed by the debtor under a repayment plan; 

14 or 

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

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

17 payments under the plan and to comply with the 

18 plan. 

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

20 a judicial or administrative order or by a statute to 

21 pay a domestic support obligation, the debtor has 

22 paid all amounts required by such domestic support 

23 obligation that first became payable after the date of 

24 the filing of the petition. 

25 ‘‘(b) OBJECTION TO REPAYMENT PLAN.— 


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

2 if the trustee or the holder of an allowed unsecured 

3 claim objects to a repayment plan that complies with 

4 subsection (a), the court shall confirm the repay5 ment plan only if the plan satisfies the requirements 

6 of section 1022(a)(1). 

7 ‘‘(2) REDUCED MINIMUM PAYMENT OBLIGA8 TION.—If the court finds that the debtor is unable 

9 to pay the full minimum payment obligation due to 

10 reasonably necessary expenses, including medical ex11 penses, child care expenses, high local housing costs, 

12 special education needs, expenses for the care of an 

13 elderly, chronically ill, or disabled household member 

14 or member of the debtor’s family, child or spousal 

15 support, or business or employment-related expenses, 

16 the court shall confirm a plan with an appropriately 

17 reduced minimum payment obligation that reflects 

18 the debtor’s ability to repay. 

19 ‘‘(c) OBJECTION TO RESIDENCE PLAN.—If the hold20 er of an allowed secured claim secured by the debtor’s 

21 principal residence objects to the confirmation of a resi22 dence plan, the court shall confirm the residence plan only 

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

24 has objected to the confirmation, the residence plan pro25 vides that— 


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

2 claim; 

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

4 residence plan, of the payments to be distributed 

5 under the residence plan on account of the claim is 

6 not less than the allowed amount of the secured 

7 claim; 

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

9 plan are in equal monthly amounts, other than pay10 ments to cure a default under section 

11 1022(a)(2)(B); 

12 ‘‘(4) except as provided in paragraph (5), de13 fault under the residence plan constitutes default 

14 under any security agreement that creates a security 

15 interest in the debtor’s principal residence; 

16 ‘‘(5) the debtor will be in default for a late pay17 ment under the plan and any security agreement 

18 that creates a security interest in the debtor’s prin19 cipal residence only if the debtor is more than 120- 

20 days delinquent on any payment under the residence 

21 plan; 

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

23 lien created before the order for relief cannot exer24 cise any remedies under applicable nonbankruptcy 


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

2 payment under the residence plan; 

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

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

5 later of— 

6 ‘‘(A) 15 years after the date of confirma7 tion of the residence plan; or 

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

9 date of the loan relating to the claim; and 

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

11 residence that is dealt with by the residence plan has 

12 not been previously provided for by a residence plan 

13 that was— 

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

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

16 petition; and 

17 ‘‘(B) completed. 

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

19 of an allowed secured claim that is secured by property 

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

21 confirmation of a property plan, the court shall confirm 

22 the property plan only if— 

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

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

25 lien securing the allowed secured claim; 


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

2 the property plan, of the property to be distrib3 uted under the property plan on account of the 

4 claim is not less than the amount of the allowed 

5 secured claim, unless— 

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

7 a motor vehicle that was acquired by the 

8 debtor within the 90-day period imme9 diately preceding the date of the filing of 

10 the petition; and 

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

12 purchase-money security interest; 

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

14 the property plan, of property to be distributed 

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

16 and (ii) of subparagraph (B) is not less than 

17 the allowed amount of the claim, as calculated 

18 under section 502; 

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

20 property plan are in equal monthly amounts; 

21 ‘‘(E) except as provided in subparagraph 

22 (F), default under the property plan constitutes 

23 default under any security agreement that cre24 ates a security interest in the property subject 

25 to the property plan; 


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1 ‘‘(F) the debtor is in default for a late pay2 ment under the plan and any security agree3 ment that creates a security interest in the 

4 property subject to the property plan only if the 

5 debtor is not less than 90 days delinquent on 

6 payment to the holder of the security interest 

7 under the property plan; 

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

9 holder of a judicial lien or statutory lien created 

10 before the date of the order for relief cannot ex11 ercise any remedies relating to the judicial lien 

12 or statutory lien under applicable nonbank13 ruptcy law, unless the debtor is not less than 90 

14 days delinquent on any payment to the 

15 lienholder under the property plan; 

16 ‘‘(H) the last payment due under the prop17 erty plan is due on a date that is not later than 

18 the later of— 

19 ‘‘(i) 5 years after the date of con20 firmation of the property plan; or 

21 ‘‘(ii) the original maturity date of 

22 loan; and 

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

24 is dealt with by the property plan has not been 


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1 previously provided for by a property plan that 

2 was— 

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

4 more than 6 years before the date of the 

5 filing of the petition; and 

6 ‘‘(ii) completed; 

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

8 objecting holder is a motor vehicle— 

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

10 any security interest in the motor vehicle with 

11 reasonable evidence of the maintenance of any 

12 required insurance coverage on the motor vehi13 cle securing the claim sufficient to protect the 

14 interest of the holder in the motor vehicle; and 

15 ‘‘(B) the motor vehicle is— 

16 ‘‘(i) used regularly as a means of 

17 transportation for the debtor or a depend18 ent of the debtor; or 

19 ‘‘(ii) used by the debtor or a depend20 ent of the debtor in business; and 

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

22 objecting holder is not a motor vehicle— 

23 ‘‘(A) the property is reasonably necessary 

24 for the support or maintenance of the debtor or 

25 a dependent of the debtor; or 


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1 ‘‘(B) the property is reasonably necessary 

2 for the continuation, preservation, and oper3 ation of a business owned or operated by the 

4 debtor or a dependent of the debtor. 

5 ‘‘(e) IMPAIRMENT.— 

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

7 secured claim that is not impaired under a plan may 

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

9 or a property plan under subsection (d). 

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

11 this subsection, impairment shall be determined 

12 under section 1124. 

13 ‘‘(f) DENIAL OF MOTION.— 

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

15 confirm a plan shall constitute a final, appealable 

16 order. 

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

18 section shall be construed to prevent a debtor from 

19 proposing to modify a plan that has been denied 

20 confirmation. 

21 ‘‘(g) MULTIPLE PLANS.—If the debtor has filed mul22 tiple plans, any party in interest may request that the con23 firmation of any plan be stayed until the date on which 

24 the court confirms or denies any other plan. 


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

2 shall be used to calculate the value of property distributed 

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

4 be— 

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

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

7 current average prime offer rate (as defined in 

8 section 1026.35(a)(2) of title 12, Code of Fed9 eral Regulations) for a loan of the most similar 

10 duration and rate type; and 

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

12 that is 300 basis points greater than the cur13 rent average prime offer rate (as defined in sec14 tion 1026.35(a)(2) of title 12, Code of Federal 

15 Regulations) for a loan of the most similar du16 ration and rate type; and 

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

18 current average prime offer rate for motor vehicle fi19 nancing of the most similar duration and rate type, 

20 as determined by the Bureau of Consumer Financial 

21 Protection under section 201(e) of the Consumer 

22 Bankruptcy Reform Act of 2024. 

23 ‘‘§ 1025. Payments under a repayment plan 

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


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•S 5577 IS

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

2 income of the debtor that is designated for a pay3 ment to a creditor under a repayment plan; 

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

5 of the estate tendered by the debtor pursuant to a 

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

7 and 

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

9 any property of the estate tendered by the debtor 

10 under the repayment plan as expeditiously as is com11 patible with the best interests of the parties in inter12 est. 

13 ‘‘(b) PAYMENTS.— 

14 ‘‘(1) IN GENERAL.—Except as provided by sec15 tion 1027 and unless the court orders otherwise, not 

16 later than 30 days after the date of the order for re17 lief under this chapter, the debtor shall— 

18 ‘‘(A) commence making payments in the 

19 amount proposed to be made under a repay20 ment plan; and 

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

22 property of the estate requested by the trustee 

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

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


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1 to pay the trustee for the value of such prop2 erty under a repayment plan. 

3 ‘‘(2) ACTION BY TRUSTEE.— 

4 ‘‘(A) RETENTION OF PAYMENTS PENDING

5 PLAN CONFIRMATION.—The trustee shall retain 

6 a payment made under paragraph (1) until the 

7 date on which the repayment plan is confirmed 

8 or denied under section 1024. 

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

10 repayment plan is confirmed under section 

11 1024, the trustee shall distribute any payments 

12 retained under subparagraph (A) in accordance 

13 with the repayment plan as soon as is prac14 ticable. 

15 ‘‘(C) RETURN OF PAYMENTS.—The trust16 ee, after deducting the sum of each allowed ad17 ministrative expense under section 503(b), shall 

18 return to the debtor any payments retained 

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

20 converted. 

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

22 pending confirmation of a repayment plan, the 

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

24 modify, increase, or reduce the payments required 

25 under this subsection. 


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1 ‘‘(c) PAYMENTS TO CREDITORS.— 

2 ‘‘(1) IN GENERAL.—Except as otherwise pro3 vided in the repayment plan or in the order con4 firming the repayment plan, after confirmation of 

5 the plan, the trustee shall make payments to credi6 tors under the repayment plan. 

7 ‘‘(2) PROHIBITION.—Except as provided in sub8 section (d), the trustee may not make a payment de9 scribed in section 1022(a)(1)(B)(ii) under a repay10 ment plan until the date on which the trustee makes 

11 every payment on all claims entitled to priority 

12 under section 507, other than a claim that is based 

13 on a debt described in section 507, the holder of 

14 which agrees to a different treatment of such claim. 

15 ‘‘(d) PRIORITY OF PAYMENTS.— 

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

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

18 section shall be disbursed according to the order of 

19 priority in section 726. 

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

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

22 under a repayment plan, the trustee shall pay any 

23 unpaid claim of a kind specified in section 

24 507(a)(2). 


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

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

3 each disbursement, pay— 

4 ‘‘(A) any unpaid claim of the kind de5 scribed in section 507(a)(2); and 

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

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

8 the percentage fee fixed for the standing trustee 

9 under section 586(e) of title 28. 

10 ‘‘(4) PROPERTY RECOVERED IN AVOIDANCE AC11 TIONS.—Subject to any exemption allowed under 

12 section 522, the trustee shall disburse any property 

13 the trustee recovers under section 550 in accordance 

14 with this subsection. 

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

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

17 the obligations of a debtor under a repayment plan 

18 may be enforced solely by the trustee, which may in19 clude the enforcement of the security interest cre20 ated by section 1028(i). 

21 ‘‘(2) EXCEPTION.—The holder of a claim pro22 vided for under section 1022(a)(1)(B)(ii) may en23 force the debt that is the basis for the claim in ac24 cordance with section 1028(b). 


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1 ‘‘(3) 90-DAY DELINQUENCY REQUIREMENT.— 

2 The trustee may not commence any action to enforce 

3 an obligation of the debtor under a repayment plan 

4 based on a delinquent payment until after the date 

5 on which the debtor has been delinquent on the pay6 ment for a 90-day period. 

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

8 SIMPLE CONTRACT.—Subject to sections 362 and 

9 1029 and paragraph (6) of this subsection, the 

10 trustee may enforce an obligation of the debtor 

11 under a repayment plan as a simple contract under 

12 applicable nonbankruptcy law. 

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

14 Except as provided in section 1029, enforcement of 

15 the obligations of a debtor under a repayment plan 

16 shall be subject to applicable nonbankruptcy law, in17 cluding laws relating to the garnishment of the 

18 wages of the debtor. 

19 ‘‘(6) INEFFICIENT ENFORCEMENT PROHIB20 ITED.—The trustee may not enforce the obligations 

21 of the debtor under a repayment plan if such en22 forcement would not produce a meaningful distribu23 tion to creditors. 

24 ‘‘(7) TRUSTEE RECOVERY OF FEES AND

25 COSTS.— 


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1 ‘‘(A) IN GENERAL.—The trustee may re2 cover from the debtor the reasonable attorneys’ 

3 fees and costs of enforcing the debtor’s obliga4 tion under a repayment plan in an amount 

5 equal to not more than 2 times the minimum 

6 payment obligation under the plan. 

7 ‘‘(B) DEBTOR’S LIABILITY.—The debtor’s 

8 liability for the fees and costs described in sub9 paragraph (A)— 

10 ‘‘(i) shall be in addition to the min11 imum payment obligation; and 

12 ‘‘(ii) may be awarded to the trustee 

13 notwithstanding any previous compensa14 tion to which the trustee might be entitled 

15 under section 330. 

16 ‘‘(8) STATUTE OF LIMITATIONS FOR TRUSTEE

17 ENFORCEMENT.—An action by the trustee to enforce 

18 an obligation of the debtor under a repayment plan 

19 may not be commenced on a date that is more than 

20 2 years after the earliest date on which the trustee 

21 may bring an action under paragraph (3). 

22 ‘‘(9) TRUSTEE’S RIGHTS NONASSIGNABLE.— 

23 Any assignment, factoring, or transferring of rights 

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•S 5577 IS

1 payment plan, or of rights or authority to collect any 

2 such amounts, is void. 

3 ‘‘§ 1026. Payments under a residence plan or property 

4 plan 

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

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

7 accordance with the plan. 

8 ‘‘(b) CURE OF DEFAULT.— 

9 ‘‘(1) IN GENERAL.—If a residence plan or prop10 erty plan proposes to cure a default on a claim se11 cured by property of the debtor, the debtor may, 

12 upon completion of the cure payments due under the 

13 plan, send a certification to the holder of such claim 

14 that the debtor paid in full the amount to cure any 

15 default on the claim using a form prescribed by the 

16 Judicial Conference of the United States. 

17 ‘‘(2) FINAL CURE ORDER.—The court, on re18 quest of the debtor and in accordance with applica19 ble Federal Rules of Bankruptcy Procedure, shall 

20 determine whether the debtor has cured the default 

21 and paid all required post-petition amounts. 

22 ‘‘§ 1027. Protection of lessors and purchase money 

23 lenders 

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

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1 erty directly to the lessor for the portion of the obligation 

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

3 under this chapter, unless— 

4 ‘‘(1) the court orders otherwise; 

5 ‘‘(2) the debtor rejects a lease of personal prop6 erty under section 365(a); or 

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

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

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

10 days after the date of the order for relief under this chap11 ter, a debtor who has proposed a plan that retains posses12 sion of personal property subject to a lease a purchase 

13 money security interest shall— 

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

15 reasonable evidence of the maintenance of any insur16 ance coverage required under the lease or purchase 

17 money security agreement with respect to the use or 

18 ownership of the property; and 

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

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

21 debtor retains possession of the property before the 

22 date of confirmation of a plan addressing the prop23 erty. 


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1 ‘‘§ 1028. Effect of confirmation 

2 ‘‘(a) BINDING EFFECT.—The provisions of a con3 firmed plan bind the debtor and each creditor of a claim 

4 for which the plan provides, regardless of whether the 

5 creditor has objected to the plan. 

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

7 of a repayment plan shall operate as an injunction against 

8 the commencement or continuation of an action, the em9 ployment of process, or an act to collect, recover, or offset 

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

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

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

13 payments due under the plan; or 

14 ‘‘(2) the debtor is not less than 90 days delin15 quent on a payment required under a repayment 

16 plan. 

17 ‘‘(c) RESIDENCE PLAN INJUNCTION.—Except as pro18 vided in subsection (e), confirmation of a residence plan 

19 shall operate as an injunction against the commencement 

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

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

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

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

24 on a payment required under a residence plan. 

25 ‘‘(d) PROPERTY PLAN INJUNCTION.—Except as pro26 vided in subsection (e), confirmation of a property plan 


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1 shall operate as an injunction against the commencement 

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

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

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

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

6 on a payment required under a property plan. 

7 ‘‘(e) REQUEST FOR RELIEF FROM INJUNCTION.— 

8 ‘‘(1) IN GENERAL.—A party in interest may re9 quest from the court relief from the operation of an 

10 injunction under subsection (c) or (d). 

11 ‘‘(2) GRANTING OF RELIEF.—The court shall 

12 grant relief requested under paragraph (1) for 

13 cause. 

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

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

16 confirmation of a plan vests all of the property of the es17 tate in the debtor. 

18 ‘‘(g) FREE AND CLEAR.—Except as otherwise pro19 vided in a plan or in the order confirming the plan, the 

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

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

22 a claim provided for by the plan. 

23 ‘‘(h) SECURED CLAIMS.—Except as provided by sec24 tion 1031, the confirmation of a repayment plan leaves 


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

2 has not been avoided under this title. 

3 ‘‘(i) SECURITY INTEREST CREATED TO SECURE RE4 PAYMENT PLAN OBLIGATION.— 

5 ‘‘(1) IN GENERAL.— 

6 ‘‘(A) EFFECT OF CONFIRMATION.—Except 

7 as provided by subparagraph (C), the confirma8 tion of a repayment plan shall create a security 

9 interest, which shall be deemed to have arisen 

10 by agreement, in favor of the trustee on any 

11 nonexempt property of the estate retained by 

12 the debtor. 

13 ‘‘(B) FUNCTION.—The security interest 

14 described in subparagraph (A) shall secure pay15 ment of the amount the court determines the 

16 debtor must pay to satisfy the requirement of 

17 section 1025(b). 

18 ‘‘(C) EXCEPTION.—If a debtor is not re19 quired to make payments under section 

20 1025(b), the security interest in subparagraph 

21 (A) shall not arise. 

22 ‘‘(2) RECORD OF SECURITY INTEREST.— 

23 ‘‘(A) IN GENERAL.—The trustee may per24 fect or record the security interest described in 

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1 plicable nonbankruptcy law for perfecting a se2 curity interest in the type of property subject to 

3 the trustee’s security interest. 

4 ‘‘(B) FEE.—The trustee shall pay any cus5 tomary fee charged under applicable nonbank6 ruptcy law for perfection or recordation of the 

7 security interest described in paragraph (1)(A). 

8 ‘‘(C) TAX EXEMPTION.—The trustee and 

9 any other entity shall be exempt from any rec10 ordation tax, transfer tax, or other similar tax 

11 that would otherwise accrue to the trustee or 

12 any other entity because of perfection or rec13 ordation of a security interest under this sec14 tion, and the failure to pay any such tax shall 

15 not be grounds for any filing office or officer to 

16 refuse to accept a filing from a trustee seeking 

17 to perfect a security interest under this section. 

18 ‘‘(D) NO LIABILITY.—The trustee shall 

19 incur no liability to creditors or the estate for 

20 failure to perfect or record a security interest 

21 described in paragraph (1)(A) if the trustee had 

22 a reasonable and good faith belief that the costs 

23 of perfection or recordation exceeded the bene24 fits. 


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1 ‘‘(E) PERFECTION BY POSSESSION.—The 

2 trustee may not perfect the security interest 

3 created by this section by taking possession of 

4 the property unless the debtor consents in writ5 ing. 

6 ‘‘(F) TERMINATION.—Within a reasonable 

7 time after satisfaction of the minimum payment 

8 obligation, the trustee shall terminate any per9 fection or recordation of a security interest de10 scribed in paragraph (1)(A) in the manner di11 rected by applicable nonbankruptcy law for ter12 minating the perfection or recordation of a se13 curity interest in the type of property subject to 

14 the trustee’s security interest. 

15 ‘‘(3) PRIORITY OF SECURITY INTEREST.— 

16 ‘‘(A) IN GENERAL.—The security interest 

17 described in paragraph (1)(A) shall have pri18 ority as determined by applicable nonbank19 ruptcy law that governs security interests in the 

20 type of property subject to the trustee’s security 

21 interest. 

22 ‘‘(B) DEEMING OF VALUE GIVEN.—With 

23 respect to the security interest described in 

24 paragraph (1)(A), for purposes of priority 

25 under the applicable nonbankruptcy law, the 


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1 trustee shall be deemed to have given value 

2 under a simple contract and in good faith as of 

3 the moment of confirmation. 

4 ‘‘(C) DOMESTIC SUPPORT OBLIGATIONS.— 

5 Notwithstanding subparagraph (B), a security 

6 interest created under paragraph (1)(A) shall 

7 be subordinate to any lien that secures payment 

8 of a domestic support obligation. 

9 ‘‘(4) SALE OF PROPERTY.— 

10 ‘‘(A) IN GENERAL.—If the debtor sells 

11 property covered by the security interest cre12 ated under paragraph (1)(A), the buyer takes 

13 free of the security interest only if the debtor 

14 tenders to the trustee the sales proceeds after 

15 costs of sale and satisfaction of liens superior to 

16 the security interest created by the security in17 terest. 

18 ‘‘(B) SURPLUS.—If the proceeds of sale 

19 tendered to the trustee in accordance with sub20 paragraph (A) exceed the minimum payment 

21 obligation, the trustee shall return the surplus 

22 to the debtor. 

23 ‘‘(5) ENFORCEMENT OF SECURITY INTEREST.— 

24 ‘‘(A) IN GENERAL.—If the debtor is delin25 quent on the repayment plan under section 


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1 1025(e)(3), the trustee may request that the 

2 court order the debtor to turn over any prop3 erty covered by the security interest created 

4 under paragraph (1). 

5 ‘‘(B) GRANTING OF REQUEST.—The court 

6 shall grant the trustee’s request for turnover 

7 under subparagraph (A) unless— 

8 ‘‘(i) the delinquency is because of cir9 cumstances that the debtor could not rea10 sonably avoid; and 

11 ‘‘(ii) the debtor shows there is a rea12 sonable probability of curing the delin13 quency within a reasonable time. 

14 ‘‘(C) SALE OF PROPERTY.—After the debt15 or turns over property under this paragraph, 

16 the trustee shall— 

17 ‘‘(i) sell the property; 

18 ‘‘(ii) after deducting costs of the sale, 

19 satisfying liens superior to the security in20 terest created by paragraph (1)(A), and 

21 satisfying any compensation owed the 

22 trustee, apply the sales proceeds to pay23 ment of the minimum payment obligation; 

24 and 


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1 ‘‘(iii) return any surplus from the sale 

2 above the minimum payment obligation to 

3 the debtor. 

4 ‘‘(D) INSTRUMENT TO TRANSFER.—After 

5 a sale in accordance with this paragraph, the 

6 debtor or the trustee is authorized to execute, 

7 on the debtor’s or the trustee’s behalf, as the 

8 case may be, any instrument necessary or or9 dered by the court to effectuate the transfer to 

10 the purchaser. 

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

12 Except to the extent inconsistent with the plan or the pro13 visions of this title, confirmation of a residence plan or 

14 a property plan leaves unaltered the rights of the parties 

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

16 by property provided for by the plan. 

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

18 ‘‘(1) IPSO FACTO CLAUSES VOID.—The con19 firmation of a plan voids any provision in a contract 

20 provided for by the plan that is conditioned on— 

21 ‘‘(A) the insolvency or financial condition 

22 of the debtor at any time before the closing of 

23 a case; 

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

25 this title; or 


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1 ‘‘(C) the appointment of, or taking of pos2 session by, a trustee in a case under this title 

3 or a custodian before a case is commenced 

4 under this title. 

5 ‘‘(2) ARBITRATION AND JOINT-ACTION PROVI6 SIONS VOID.—Notwithstanding any contrary provi7 sion of nonbankruptcy law, the confirmation of a 

8 plan voids any pre-dispute arbitration agreement or 

9 pre-dispute joint-action lawsuit waiver relating to 

10 property subject to the plan. 

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

12 confirmation of a plan, the court shall retain jurisdiction 

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

14 plan and may order any appropriate relief in such a dis15 pute, including the suspension of the payment obligations 

16 of the debtor under the plan. 

17 ‘‘§ 1029. Modification of repayment plan 

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

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

20 under a repayment plan based on a material change in 

21 the financial condition of the debtor that— 

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

23 of the repayment plan; and 

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

25 debtor or a dependent of the debtor. 


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

2 debtor incurs unanticipated attorney’s fees for services 

3 provided subsequent to confirmation of a repayment plan, 

4 including for services relating to this section, after notice 

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

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

7 debtor to modify the repayment plan to include 

8 treatment of such attorney’s fees; and 

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

10 repayment plan by up to 6 months to facilitate 

11 treatment of such attorney’s fees. 

12 ‘‘SUBCHAPTER III—DISCHARGE 

13 ‘‘§ 1031. Discharge; scope and timing 

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

15 court shall grant the debtor a discharge in accordance with 

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

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

18 plan; or 

19 ‘‘(2) in the case of a debtor that has no min20 imum payment obligation, the date on which the 

21 deadline for filing a repayment plan under section 

22 1021(e) expires. 

23 ‘‘(b) EXCEPTIONS.—The court may not grant a dis24 charge under subsection (a) to a debtor who has— 


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1 ‘‘(1) been granted a discharge under this sec2 tion, under section 1141, 1192, 1128, or under sec3 tion 727 or 1328, as in effect on the day before the 

4 date of enactment of the Consumer Bankruptcy Re5 form Act of 2024, within 6 years of the date of the 

6 filing of the petition; 

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

8 that is designated to be tendered under a repayment 

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

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

11 after the date of the order for relief; and 

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

13 determined that the debtor adequately understands 

14 the terms and consequences of the waiver described 

15 in subparagraph (A); 

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

17 a creditor or an officer of the estate charged with 

18 the custody of property under this title, transferred, 

19 removed, destroyed, mutilated, concealed, or per20 mitted the transfer, removal, destruction, mutilation, 

21 or concealment of— 

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

23 of the date of the filing of the petition; or 

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

25 of the filing of the petition; 


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

2 or failed to keep or preserve any recorded informa3 tion from which the financial condition or business 

4 transactions of the debtor might have been 

5 ascertained, unless such act or failure was justified 

6 under all of the circumstances of the case; 

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

8 in connection with the case— 

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

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

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

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

13 promise of money, property, or advantage, for 

14 acting or forbearing to act; or 

15 ‘‘(D) withheld from the trustee any re16 corded information, including books, documents, 

17 records, and papers, relating to the property or 

18 financial affairs of the debtor; 

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

20 determination of denial of discharge under this para21 graph, any loss of assets or deficiency of assets to 

22 meet the liabilities of the debtor; or 

23 ‘‘(8) refused in the case— 


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

2 other than an order to respond to a material 

3 question or to testify; 

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

5 self-incrimination, to respond to a material 

6 question approved by the court or to testify 

7 after the debtor has been granted immunity 

8 with respect to the matter concerning which the 

9 privilege was invoked; or 

10 ‘‘(C) on a ground other than a properly in11 voked privilege against self-incrimination, to re12 spond to a material question approved by the 

13 court or to testify. 

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

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

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

17 the order for relief under this chapter and any liability 

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

19 debt or claim had arisen before the commencement of the 

20 case, whether or not— 

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

22 or liability is filed under section 501; or 

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

24 is allowed under section 502. 


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

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

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

4 prescribed by the Judicial Conference of the United States 

5 in accordance with rule 9009 of the Federal Rules of 

6 Bankruptcy Procedure a conspicuous notice of— 

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

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

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

10 laws that may provide additional remedies to the 

11 debtor in the event a person violates section 524. 

12 ‘‘(e) SCOPE OF DISCHARGE WITH RESPECT TO

13 TAXES.— 

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

15 if the debtor pays through a repayment plan all tax 

16 debts entitled to priority under section 507(a)(8), 

17 the discharge under subsection (a) shall apply to all 

18 debts described in section 523(a)(1). 

19 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

20 apply to a debt incurred through fraud. 

21 ‘‘§ 1032. Revocation of discharge or order of con22 firmation 

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

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

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1 tion under section 1024 or an order of discharge under 

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

3 may revoke such order only if— 

4 ‘‘(1) such confirmation or discharge was ob5 tained through the fraud of the debtor and the re6 questing party did not know of such fraud until 

7 after the granting of such confirmation or discharge; 

8 or 

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

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

11 other than an order to respond to a material 

12 question or to testify; 

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

14 self-incrimination, to respond to a material 

15 question approved by the court or to testify, 

16 after the debtor has been granted immunity 

17 with respect to the matter concerning which 

18 such privilege was invoked; or 

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

20 invoked privilege against self-incrimination, to 

21 respond to a material question approved by the 

22 court or to testify. 

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

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1 section (a), the court shall convert or dismiss the case 

2 under section 1005. 

3 ‘‘SUBCHAPTER IV—AVOIDANCE ACTIONS 

4 ‘‘§ 1041. Treatment of certain liens 

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

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

7 ‘‘§ 1042. Limitations on avoidance actions 

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

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

10 553, or 1041, unless there are allowed unsecured claims 

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

12 in full under a repayment plan. 

13 ‘‘SUBCHAPTER V—LIMITED PROCEEDINGS 

14 ‘‘§ 1051. Election of limited proceeding 

15 ‘‘(a) IN GENERAL.— 

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

17 a case commenced under section 301 or 302, a debt18 or that is eligible to file under this chapter may, as 

19 part of the petition for relief, elect to conduct a lim20 ited proceeding that affects only claims secured by 

21 specific items of the property of the debtor under 

22 this subchapter. 

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

24 the debtor does not elect to conduct a limited pro25 ceeding in a case under this chapter— 


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

2 proceeding under this title; and 

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

4 case. 

5 ‘‘(b) LIMITATION ON ELECTION.— 

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

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

8 proceeding. 

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

10 this section shall preclude a debtor, subsequent to 

11 the dismissal of a case, from— 

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

13 302; and 

14 ‘‘(B) electing to conduct a limited pro15 ceeding under subsection (a). 

16 ‘‘§ 1052. Effect of limited proceeding 

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

18 under section 1051(a)— 

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

20 schedule of affected property designating the prop21 erty to be subject to the limited proceeding that lists 

22 any creditor that has an interest in such property; 

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

24 541 shall be limited to property that the debtor has 

25 indicated in the schedule of affected property; 


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

2 1005(a), 1005(b)(4), 1005(b)(7), 1005(c), 1008, 

3 1021(a)(1), 1025, 1027(a), 1031, 1032, 1041, and 

4 1042 shall not apply to the case; 

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

6 under this chapter, the debtor shall have the rights 

7 and powers of a trustee under— 

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

9 of section 363; and 

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

11 549, and 553. 

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

13 paragraphs (2) and (3) of section 1021(a) with re14 spect to property listed in the schedule of affected 

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

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

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

18 the order for relief; 

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

20 shall apply only to entities with an interest in the 

21 property that the debtor has indicated in the sched22 ule of affected property as intended for treatment 

23 under a plan; 

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

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


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1 than a statement of current income and current ex2 penditures; and 

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

4 required to be provided to parties other than parties 

5 with claims secured by property that the debtor has 

6 indicated in the schedule of affected property and to 

7 the United States trustee. 

8 ‘‘§ 1053. Dismissal or conversion of limited pro9 ceedings 

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

11 LIMITED PROCEEDING.—The debtor may elect to dismiss 

12 a limited proceeding or convert a limited proceeding to a 

13 general proceeding under this chapter by filing a notice 

14 of termination or conversion within 7 days of the earlier 

15 of— 

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

17 plan required under section 1052(5); or 

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

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

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

21 debtor elects to convert a limited proceeding to a general 

22 proceeding under this chapter under subsection (a)— 

23 ‘‘(1) the property of the estate shall be deter24 mined under section 541, without regard to section 

25 1052(2), as of the date of the notice of conversion; 


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

2 to each entity as of the date of the notice of conver3 sion; 

4 ‘‘(3) notice of the order for relief shall be pro5 vided to each party in interest that was not notified 

6 under section 1052(8); 

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

8 the debtor under this title that begins on the date 

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

10 the date of the notice of conversion; 

11 ‘‘(5) except as provided in section 506, with re12 spect to a creditor that has a claim secured by prop13 erty included in the schedule of affected property 

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

15 against the debtor after the date of the order for re16 lief and before the date of the notice of conversion 

17 shall be deemed to have arisen immediately before 

18 the date of the filing of the petition; and 

19 ‘‘(6) any valuation of property or an allowed se20 cured claim, any determination of a claim allowance, 

21 and any other determination made in the course of 

22 the limited proceeding may be used in the general 

23 proceeding, unless the court for cause orders other24 wise. 


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1 ‘‘(c) DISMISSAL BY COURT OF LIMITED PRO2 CEEDING.—At any time, after notice and a hearing, the 

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

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

5 a limited proceeding on the grounds that the granting of 

6 relief would be a manifestly improper use of the bank7 ruptcy system.’’. 

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

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

10 after the item relating to chapter 9 the following: 

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

11 SEC. 103. REPEAL OF CHAPTER 13. 

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

13 States Code, is repealed. 

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

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

16 the item relating to chapter 13. 

17 SEC. 104. OTHER AMENDMENTS TO THE BANKRUPTCY 

18 CODE. 

19 (a) DEFINITIONS.— 

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

21 United States Code, is amended— 

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

23 (10A), (12A), and (30); 

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

25 (53C), (56A), (53D), (54), (54A), and (55) as 


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

2 and (92), respectively; 

3 (C) by inserting before paragraph (86), as 

4 so redesignated, the following: 

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

6 code, or other device that is— 

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

8 prepaid basis primarily for personal, family, or 

9 household purposes to a consumer in a specified 

10 amount, whether or not that amount may be in11 creased or reloaded; and 

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

13 presentation at a single merchant or an affili14 ated group of merchants.’’; 

15 (D) by redesignating paragraphs (48), 

16 (48A), (49), (50), (51), (51A), (51B), (51C), 

17 (51D), (52), (53), and (53A) as paragraphs 

18 (73), (74), (75), (76), (77), (78), (79), (80), 

19 (81), (82), (83), and (84), respectively; 

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

21 so redesignated, the following: 

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

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

24 (F) by redesignating paragraphs (46) and 

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


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

2 so redesignated, the following: 

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

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

5 (H) by redesignating paragraph (45) as 

6 paragraph (68); 

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

8 so redesignated, the following: 

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

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

11 for the relevant property in a lawful foreclosure, re12 possession, or execution sale, less the costs of such 

13 sale.’’; 

14 (J) by redesignating paragraphs (43) and 

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

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

17 so redesignated, the following: 

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

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

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

21 paragraph (63); 

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

23 so redesignated, the following: 

24 ‘‘(61) The term ‘pre-dispute arbitration agree25 ment’ means any agreement to which the debtor is 


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

2 the time of the making of the agreement. 

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

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

5 whether or not part of a predispute arbitration 

6 agreement, that would prohibit the debtor from par7 ticipating, or waive the right of the debtor to partici8 pate, in a joint, class, or collective action in a judi9 cial, arbitral, administrative, or other forum, con10 cerning a dispute that has not yet arisen at the time 

11 of the making of the agreement.’’. 

12 (N) by redesignating paragraphs (40), 

13 (40A), (40B), (41), (41A), and (42) as para14 graphs (55), (56), (57), (58), (59), and (60), 

15 respectively; 

16 (O) by inserting before paragraph (55), as 

17 so redesignated, the following: 

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

19 means, except as provided in section 1021(d)(1) of 

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

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

22 ‘‘(B) the sum of— 

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

24 in property of the bankruptcy estate in ex25 cess of— 


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1 ‘‘(I) any allowed secured claims 

2 that are secured by that property; 

3 plus 

4 ‘‘(II) any exemption applicable 

5 under section 522(b); and 

6 ‘‘(ii) to the extent the debtor’s annual 

7 income exceeds 135 percent of the sum of 

8 the median family income of the applicable 

9 State for 1 earner plus $15,000 for each 

10 individual in the household other than the 

11 debtor— 

12 ‘‘(I) if the excess is not over 

13 $10,000, 15 percent of the excess; 

14 ‘‘(II) if the excess is over 

15 $10,000 but not over $50,000, $1,500 

16 plus 45 percent of the excess over 

17 $10,000; 

18 ‘‘(III) if the excess is over 

19 $50,000 but not over $100,000, 

20 $19,500 plus 75 percent of the excess 

21 over $50,000; or 

22 ‘‘(IV) if the excess is over 

23 $100,000, $57,000 plus 150 percent 

24 of the excess over $100,000.’’. 


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1 (P) by redesignating paragraphs (31), 

2 (32), (33), (34), (35), (35A), (36), (37), (38), 

3 (38), (38A), (38B), (39), and (39A) as para4 graphs (41), (42), (43), (44), (45), (46), (47), 

5 (48), (49), (50), (51), (52), and (53), respec6 tively; 

7 (Q) in paragraph (45)(B), as so redesig8 nated, by striking ‘‘paragraphs (21B) and 

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

10 (43)(A)’’; 

11 (R) by redesignating paragraphs (14), 

12 (14A), (15), (16), (17), (18), (19), (19A), 

13 (19B), (20), (21), (21A), (21B), (22), (22A), 

14 (23), (24), (25), (26), (27), (27A), (27B), (28), 

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

16 (21), (22), (23), (24), (25), (26), (27), (28), 

17 (29), (30), (31), (32), (33), (34), (35), (36), 

18 (37), (38), (39), and (40), respectively; 

19 (S) in paragraph (18), as so redesignated, 

20 (i) in the matter preceding subpara21 graph (A), by inserting ‘‘attorneys’ fees 

22 and’’ before ‘‘interest’’; and 

23 (ii) by striking subparagraph (A) and 

24 inserting the following: 


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

2 former spouse, or child of the debtor or a par3 ent, legal guardian, or responsible relative of 

4 such a child;’’; 

5 (T) by striking paragraph (13A) and in6 serting the following: 

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

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

9 ‘‘(A) A residential structure that the debt10 or or a dependent uses as a residence, including 

11 an individual condominium, a mobile or manu12 factured home, or trailer or houseboat, and inci13 dental property, without regard to whether that 

14 structure is attached to real property. 

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

16 owns property that the debtor or a dependent 

17 of the debtor uses as a residence. 

18 ‘‘(C) A residential leasehold that the debt19 or or a dependent of the debtor uses as a resi20 dence.’’; 

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

22 (7B) (8), (9), (10), (11), (12), and (13) as 

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

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


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

2 following: 

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

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

5 from all sources that the debtor receives (or in 

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

7 receive) without regard to whether such income 

8 is taxable, derived during the 6-month period 

9 ending on the last day of the calendar month 

10 immediately preceding the date of the filing of 

11 the petition; and 

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

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

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

15 behalf of the debtor, except that the proceeds 

16 from the sale of an asset not in the ordinary 

17 course of business shall not be included in an18 nual income.’’. 

19 (2) CONFORMING AMENDMENTS TO OTHER

20 LAWS.— 

21 (A) Section 1503(4)(A)(iv) of the S.A.F.E. 

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

23 5102(4)(A)(iv)) is amended by striking ‘‘section 

24 101(53D)’’ and inserting ‘‘section 101(89)’’. 


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1 (B) Section 116(a)(2)(A) of the Emer2 gency Economic Stabilization Act of 2008 (12 

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

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

5 101(36)’’. 

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

7 Wall Street Reform and Consumer Protection 

8 Act (12 U.S.C. 5390(a))— 

9 (i) in paragraph (11)(H)— 

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

11 ‘‘section 101(31)’’ and inserting ‘‘sec12 tion 101(41)’’; and 

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

14 ‘‘section 101(32)’’ and inserting ‘‘sec15 tion 101(42)’’; and 

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

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

18 101(42)’’. 

19 (D) Section 3E(g) of the Securities Ex20 change Act of 1934 (15 U.S.C. 78c–5(g)) is 

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

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

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

24 Lending Act (15 U.S.C. 1602(dd)(5)) is amendVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 ed by striking ‘‘section 101(53D)’’ and insert2 ing ‘‘section 101(89)’’. 

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

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

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

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

7 ‘‘section 101(89)’’. 

8 (G) Section 129B(f) of the Truth in Lend9 ing Act (15 U.S.C. 1639b(f))is amended by 

10 striking ‘‘section 101(53D)’’ and inserting ‘‘sec11 tion 101(89)’’. 

12 (H) Section 129C(i) of the Truth in Lend13 ing Act (15 U.S.C. 1639c(i))is amended by 

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

16 (I) Section 1016(f)(2)(A) of the Oil Pollu17 tion Act of 1990 (33 U.S.C. 2716(f)(2)(A)) is 

18 amended by striking ‘‘section 101(32)’’ and in19 serting ‘‘section 101(42)’’. 

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

21 (48 U.S.C. 2194(j)(2)(C)) is amended by strik22 ing ‘‘section 101(11)’’ and inserting ‘‘section 

23 101(13)’’. 

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

25 title 11, United States Code, is amended— 


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1 (1) in subsection (a)— 

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

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

4 or 12 of this title’’; and 

5 (B) by striking ‘‘section 362(o)’’ and in6 serting ‘‘section 362(m)’’; and 

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

8 and inserting ‘‘Chapter 10’’. 

9 (c) ADJUSTMENT OF DOLLAR AMOUNTS.—Section 

10 104 of title 11, United States Code, is amended— 

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

12 101(3)’’ and all that follows through ‘‘of this title’’ 

13 and inserting ‘‘this title’’; and 

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

15 101(3)’’ and all that follows through ‘‘of this title’’ 

16 and inserting ‘‘this title’’. 

17 (d) WAIVER OF SOVEREIGN IMMUNITY.—Section 

18 106(a)(1) of title 11, United States Code, is amended— 

19 (1) by striking ‘‘722,’’; 

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

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

22 1327’’ and inserting ‘‘and 1231’’. 

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

24 United States Code, is amended— 


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

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

3 (2) in subsection (c)— 

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

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

6 ‘‘1009 or 1201’’; and 

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

8 362, 922, 1201, or 1301 of this title,’’ and in9 serting ‘‘section 362, 922, or 1201 of this 

10 title,’’. 

11 (f) WHO MAY BE A DEBTOR.— 

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

13 United States Code, is amended— 

14 (A) in subsection (b)— 

15 (i) by redesignating paragraphs (1), 

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

17 (4), respectively; and 

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

19 as so redesignated, the following 

20 ‘‘(1) an individual;’’; 

21 (B) by striking subsection (e); 

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

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

24 following: 


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1 ‘‘(d) Only an individual who owes aggregate non2 contingent liquidated secured and unsecured debts as of 

3 the date of the filing of the petition or the date of the 

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

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

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

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

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

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

10 (F) by striking subsection (g) and insert11 ing the following: 

12 ‘‘(g) Notwithstanding any other provision of this sec13 tion, no individual or family farmer may be a debtor under 

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

15 this title at any time in the preceding 180 days if the case 

16 was dismissed by the court for willful failure of the debtor 

17 to abide by orders of the court, or to appear before the 

18 court in proper prosecution of the case.’’; and 

19 (G) by striking subsection (h) and insert20 ing the following: 

21 ‘‘(h)(1) Upon motion of a party in interest or on the 

22 court’s own motion, the court may, after notice and a 

23 hearing, include in an order dismissing a case under sec24 tions 707, 1005, 1053(c), 1112, or 1208 of this title a 


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1 restriction of the debtor’s eligibility to refile a subsequent 

2 case under this title upon a finding of cause, including— 

3 ‘‘(A) willful failure of the debtor to— 

4 ‘‘(i) abide by orders of the court; or 

5 ‘‘(ii) propose a plan required under sec6 tions 1021, 1129, or 1225 in good faith and not 

7 by any means forbidden by law; 

8 ‘‘(B) willful and substantial default by the debt9 or with respect to a term of a confirmed plan; 

10 ‘‘(C) a pattern or practice of filing bankruptcy 

11 petitions as part of a manifestly improper use of the 

12 bankruptcy system; 

13 ‘‘(D) willful failure of the debtor to appear be14 fore the court in proper prosecution of the case; or 

15 ‘‘(E) other manifestly improper use of the pro16 visions of this title. 

17 ‘‘(2) The period of ineligibility for a subsequent 

18 case— 

19 ‘‘(A) shall extend for 180 days from the date of 

20 the entry of the court’s order unless the court orders 

21 otherwise; and 

22 ‘‘(B) may extend for a period longer than 180 

23 days (but not to exceed 720 days) only if the court 

24 finds manifestly improper use the bankruptcy sys25 tem. 


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1 ‘‘(3) After notice and a hearing, the court may de2 crease the period of ineligibility based upon a showing of 

3 changed circumstances or for good cause shown.’’. 

4 (2) CONFORMING AMENDMENTS.— 

5 (A) Section 1501(c)(2) of title 11, United 

6 States Code, is amended by striking ‘‘109(e)’’ 

7 and inserting ‘‘109(d)’’. 

8 (B) Section 303(1) of PROMESA (48 

9 U.S.C. 2163(1)) is amended by striking ‘‘sec10 tion 109(b)(2)’’ and inserting ‘‘section 

11 109(b)(3)’’. 

12 (g) PENALTY FOR PERSONS WHO NEGLIGENTLY OR

13 FRAUDULENTLY PREPARE BANKRUPTCY PETITIONS.— 

14 Section 110(e)(2)(B)(i)(II) of title 11, United States 

15 Code, is amended by striking ‘‘under chapter 7, 11, 12, 

16 or 13’’ and inserting ‘‘under chapter 10, 11, or 12’’. 

17 (h) NONPROFIT BUDGET AND CREDIT COUNSELING

18 AGENCIES; FINANCIAL MANAGEMENT INSTRUCTIONAL

19 COURSES.— 

20 (1) Chapter 1 of title 11, United States Code, 

21 is amended by striking section 111. 

22 (2) The table of sections for chapter 1 of title 

23 11, United States Code, is amended by striking the 

24 item relating to section 111. 


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1 (i) INVOLUNTARY CASES.—Section 303 of title 11, 

2 United States Code, is amended— 

3 (1) in subsection (a) by striking ‘‘chapter 7 or 

4 11 of this title’’ and inserting ‘‘chapter 7, 10, or 11 

5 of this title’’; 

6 (2) in subsection (b) by striking ‘‘chapter 7 or 

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

8 11 of this title—’’; 

9 (3) in subsection (g)— 

10 (A) by striking ‘‘chapter 7 of this title’’ 

11 and inserting ‘‘chapter 7 or 10 of this title’’; 

12 and 

13 (B) by striking ‘‘section 701 of this title’’ 

14 and inserting ‘‘section 701 or 1003 of this 

15 title’’; and 

16 (4) in subsection (k)(2), by striking ‘‘the court 

17 may enter an order’’ and inserting ‘‘the court shall 

18 enter an order’’. 

19 (j) APPEARANCE BY CONSUMER FINANCIAL PROTEC20 TION BUREAU.— 

21 (1) IN GENERAL.—Subchapter I of chapter 3 of 

22 title 11, United States Code, is amended by adding 

23 at the end the following: 


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1 ‘‘§ 309. Bureau of Consumer Financial Protection ap2 pearances in bankruptcy cases 

3 ‘‘Notwithstanding section 1054(e) of the Consumer 

4 Financial Protection Act of 2010 (12 U.S.C. 5564(e)), the 

5 Bureau of Consumer Financial Protection may represent 

6 itself in its own name and may raise, appear, and be heard 

7 on any issue in a case under this title before any court 

8 with appropriate jurisdiction.’’. 

9 (2) CONFORMING AMENDMENT.—The table of 

10 sections for chapter 3 of title 11, United States 

11 Code, is amended by inserting after the item relating 

12 to section 308 the following: 

‘‘309. Bureau of Consumer Financial Protection appearances in bankruptcy 

cases.’’. 

13 (k) ELIGIBILITY TO SERVE AS TRUSTEE.—Section 

14 321(a) of title 11, United States Code, is amended by 

15 striking ‘‘under chapter 7, 12, or 13 of this title,’’ each 

16 place it appears and inserting ‘‘under chapter 7, 10, or 

17 12 of this title,’’. 

18 (l) QUALIFICATION OF TRUSTEE.—Section 322(a) of 

19 title 11, United States Code, is amended by striking ‘‘701, 

20 702, 703, 1104, 1163, 1183, 1202, or 1302’’ and insert21 ing ‘‘701, 702, 703, 1001, 1104, 1163, 1183, or 1202’’. 

22 (m) LIMITATION ON COMPENSATION OF TRUSTEE.— 

23 Section 326(b) of title 11, United States Code, is amend24 ed— 


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1 (1) by striking ‘‘chapter 12 or 13 of this title,’’ 

2 and inserting ‘‘chapter 10 or 12 of this title,’’; 

3 (2) by striking ‘‘under section 1202(a) or 

4 1302(a) of this title’’ and inserting ‘‘under section 

5 1001(a) or 1202(a) of this title’’; and 

6 (3) by striking ‘‘not to exceed five percent upon 

7 all payments under the plan’’ and inserting ‘‘not to 

8 exceed 5 percent upon all payments under the chap9 ter 11 or 12 plan or under the chapter 10 repay10 ment plan’’. 

11 (n) DEBTOR’S TRANSACTIONS WITH ATTORNEYS.— 

12 Section 329 of title 11, United States Code, is amended— 

13 (1) in subsection (b)(1)(B), by striking ‘‘chap14 ter 11, 12, or 13 of this title’’ and inserting ‘‘chap15 ter 10, 11, or 12 of this title’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(c) In a case under chapter 10 of this title, no com18 pensation shall be allowed for the debtor’s attorney under 

19 this title unless— 

20 ‘‘(1) the agreement between the debtor and the 

21 debtor’s attorney providing for compensation— 

22 ‘‘(A) was made not more than 90 days be23 fore the date of the filing of the petition; 


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1 ‘‘(B) specifies the services provided or to 

2 be provided by the debtor’s attorney and the at3 torney’s related fees and expenses; 

4 ‘‘(C) provides that the debtor will not be 

5 requested to pay or be liable for any amounts 

6 other than reasonable attorneys’ fees and ex7 penses— 

8 ‘‘(i) specified in the agreement; 

9 ‘‘(ii) for any adversary proceeding in 

10 which the debtor is a party; or 

11 ‘‘(iii) for services required by the 

12 debtor or the court that the attorney 

13 should not have reasonably anticipated at 

14 the time of the agreement; 

15 ‘‘(D) does not provide for the payment of 

16 interest or any additional fees based on delay in 

17 payment or risk of nonpayment or for costs of 

18 collection on installment payments; 

19 ‘‘(E) provides for installment payments of 

20 any compensation still owing on the date of the 

21 petition over a period of not more than 1 year; 

22 and 

23 ‘‘(F) does not include a pre-dispute arbi24 tration agreement or a pre-dispute joint-action 


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1 waiver with respect to any dispute under the 

2 agreement; 

3 ‘‘(2) the attorney has discussed with the debtor 

4 the attorney’s fees and expenses under the agree5 ment and the consequences of the attorney’s filing 

6 the certification required under paragraph (3), and, 

7 after full disclosure, the debtor consents to the filing 

8 of the certification; and 

9 ‘‘(3) the attorney files with the court a certifi10 cation, in accordance with rule 9011 of the Federal 

11 Rules of Bankruptcy Procedure, with respect to the 

12 agreement that— 

13 ‘‘(A) the conditions specified in paragraphs 

14 (1) and (2) are satisfied; and 

15 ‘‘(B) the enforcement of the agreement 

16 would not impose an undue hardship on the 

17 debtor or the debtor’s dependents. 

18 ‘‘(d) In a case under chapter 10 of this title, any as19 signment, factoring, or transfer of rights or amounts, or 

20 of rights or authority to collect any such amounts, due 

21 under an agreement between the debtor and the debtor’s 

22 attorney is void. 

23 ‘‘(e) In a case under chapter 10 of this title, the 

24 bankruptcy court where the bankruptcy case was heard— 


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1 ‘‘(1) shall have exclusive jurisdiction over any 

2 disputes under, and enforcement of, an agreement 

3 that is subject to this section, whether or not the 

4 case has been closed; and 

5 ‘‘(2) in the event of nonpayment on an agree6 ment described in subsection (c), the court may 

7 issue a judgment for monies owed only under an 

8 agreement made during the 540-day period pre9 ceding the date of the judgment.’’. 

10 (o) COMPENSATION OF OFFICERS.— 

11 (1) IN GENERAL.—Section 330 of title 11, 

12 United States Code, is amended— 

13 (A) in subsection (a)(4)(B), by striking 

14 ‘‘In a chapter 12 or chapter 13 case in which 

15 the debtor is an individual,’’ and inserting ‘‘In 

16 a chapter 10 or 12 case in which the debtor is 

17 an individual,’’; 

18 (B) by redesignating subsections (c), (d), 

19 and (e) as subsections (d), (e), and (f), respec20 tively; 

21 (C) by inserting after subsection (b) the 

22 following: 

23 ‘‘(c) There shall be paid from the filing fee in a case 

24 under chapter 10 of this title $120 to the trustee serving 


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1 in such case, after such trustee’s services are rendered.’’; 

2 and 

3 (D) in subsection (d), as so redesignated, 

4 by striking ‘‘in a case under chapter 12 or 13’’ 

5 and inserting ‘‘in a case under chapter 10 or 

6 12’’. 

7 (2) CONFORMING AMENDMENT.—Section 

8 589a(b)(7) of title 28, United States Code, is 

9 amended by striking ‘‘section 330(d)’’ and inserting 

10 ‘‘section 330(e)’’. 

11 (p) MEETINGS OF CREDITORS AND EQUITY SECU12 RITY HOLDERS.—Section 341 of title 11, United States 

13 Code, is amended— 

14 (1) in subsection (c), by striking ‘‘chapter 7 or 

15 13’’ and inserting ‘‘chapter 10 of this title’’; 

16 (2) in subsection (d)— 

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

18 by striking ‘‘chapter 7’’ and inserting ‘‘chapter 

19 10’’; 

20 (B) in paragraph (1), by adding ‘‘and’’ at 

21 the end; 

22 (C) by striking paragraph (2); 

23 (D) by redesignating paragraph (3) as 

24 paragraph (2); 


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1 (E) in paragraph (2), as so redesignated, 

2 by striking ‘‘; and’’ and inserting a period; and 

3 (F) by striking paragraph (4); and 

4 (3) by adding at the end the following: 

5 ‘‘(f) In a case under chapter 10 of this title— 

6 ‘‘(1) the meeting of creditors under subsection 

7 (a) may be convened electronically and allow remote 

8 appearances of all parties; 

9 ‘‘(2)(A) the debtor shall not be required to ap10 pear in person if it would impose an unreasonable 

11 burden on the debtor; and 

12 ‘‘(B) there shall be a rebuttable presumption 

13 that in-person attendance at the meeting of creditors 

14 under subsection (a) is an unreasonable burden on 

15 the debtor if the debtor’s address on the bankruptcy 

16 petition is more than 10 miles from the location of 

17 the courthouse of the bankruptcy court where the 

18 meeting of creditors under subsection (a) would 

19 occur; and 

20 ‘‘(3) the meeting of creditors under subsection 

21 (a) shall be scheduled at such times to avoid conflict 

22 with the debtor’s employment.’’. 

23 (q) NOTICE.—Section 342 of title 11, United States 

24 Code, is amended— 

25 (1) by striking subsections (b) and (d); 


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1 (2) by redesignating subsections (c), (e), (f), 

2 and (g) as subsections (b), (c), (d), and (e), respec3 tively; 

4 (3) in subsection (c)(1), as so redesignated, by 

5 striking ‘‘chapter 7 or 13’’ and inserting ‘‘chapter 

6 10’’; 

7 (4) in subsection (d), as so redesignated— 

8 (A) in paragraph (1), by striking ‘‘chapters 

9 7 or 13’’ and inserting ‘‘chapter 10’’; and 

10 (B) in paragraph (2)— 

11 (i) by striking ‘‘chapter 7 or 13’’ and 

12 inserting ‘‘chapter 10’’; and 

13 (ii) by striking ‘‘subsection (e)’’ and 

14 inserting ‘‘subsection (c)’’; and 

15 (5) in subsection (e)(2), as so redesignated, by 

16 striking ‘‘section 362(k)’’ and inserting ‘‘section 

17 362(j)’’. 

18 (r) UNCLAIMED PROPERTY.—Section 347(a) of title 

19 11, United States Code, is amended by striking ‘‘under 

20 section’’ and all that follows through ‘‘as the case may 

21 be’’ and inserting ‘‘under section 726, 1025, 1194, or 

22 1226 of this title under chapter 7, chapter 10, subchapter 

23 V of chapter 11, or chapter 12 of this title, as the case 

24 may be’’. 


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1 (s) EFFECT OF CONVERSION.—Section 348 of title 

2 11, United States Code, is amended— 

3 (1) in subsection (b)— 

4 (A) by striking ‘‘sections 701(a), 

5 727(a)(10), 727(b), 1102(a), 1110(a)(1), 

6 1121(b), 1121(c), 1141(d)(4), 1201(a), 1221, 

7 1228(a), 1301(a), and 1305(a) of this title’’ 

8 and inserting ‘‘sections 701(a), 1009(a), 

9 1025(b), 1027(a), 1027(b), 1031(c), 1102(a), 

10 1110(a)(1), 1121(b), 1121(c), 1141(d)(4), 

11 1201(a), 1221, and 1228(a) of this title’’; 

12 (B) by striking ‘‘under section 706, 1112, 

13 1208, or 1307 of this title’’ and inserting 

14 ‘‘under section 706, 1005, 1053(c), 1112, or 

15 1208 of this title’’; 

16 (2) in subsection (c), by striking ‘‘under section 

17 706, 1112, 1208, or 1307 of this title’’ and inserting 

18 ‘‘under section 706, 1005, 1053(c), 1112, or 1208’’ 

19 of this title; 

20 (3) in subsection (d), by striking ‘‘under section 

21 1112, 1208, or 1307 of this title’’ and inserting 

22 ‘‘under section 1005, 1053(c), 1112, or 1208 of this 

23 title’’; 

24 (4) in subsection (e), by striking ‘‘under section 

25 706, 1112, 1208, or 1307 of this title’’ and inserting 


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1 ‘‘under section 706, 1005, 1053(c), 1112, or 1208’’ 

2 of this title; and 

3 (5) by striking subsection (f). 

4 (t) EFFECT OF DISMISSAL.—Section 349 of title 11, 

5 United States Code, is amended— 

6 (1) by striking subsection (a) and inserting the 

7 following: 

8 ‘‘(a) The dismissal of a case shall not— 

9 ‘‘(1) bar the discharge, in a later case, of debts 

10 that were dischargeable in the case dismissed, except 

11 as provided in section 523, 1031, 1141, or 1228; or 

12 ‘‘(2) prejudice the debtor with regard to the fil13 ing of a subsequent petition, except as provided in 

14 subsection (g) or (h) of section 109.’’; and 

15 (2) in subsection (b)(1)(B), by striking ‘‘or 

16 724(a) of this title,’’ and inserting ‘‘724(a), or 1041 

17 of this title,’’. 

18 (u) AUTOMATIC STAY.— 

19 (1) IN GENERAL.—Section 362 of title 11, 

20 United States Code, is amended— 

21 (A) in subsection (a)— 

22 (i) in paragraph (3), by inserting ‘‘or 

23 to retain’’ after ‘‘to exercise control over’’; 

24 (ii) in paragraph (7), by striking 

25 ‘‘and’’ at the end; 


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1 (iii) in paragraph (8), by striking the 

2 period at the end and inserting ‘‘; and’’; 

3 and 

4 (iv) by adding at the end the fol5 lowing: 

6 ‘‘(9) in a case under chapter 10 of this title, at 

7 any time before the earliest of a conversion or dis8 missal under section 1005 of this title, a dismissal 

9 under section 1053(c) of this title, or a discharge 

10 under section 1031 of this title, any act to alter, 

11 refuse, or discontinue utility service provided to the 

12 debtor under an agreement entered into before the 

13 entry of the order for relief.’’; 

14 (B) in subsection (b)— 

15 (i) by striking paragraph (22); 

16 (ii) by redesignating paragraphs (23), 

17 (24), (25), (26), (27), (28), and (29) as 

18 paragraphs (22), (23), (24), (25), (26), 

19 (27), and (28), respectively; 

20 (iii) in paragraph (22), as so redesig21 nated, by striking ‘‘subsection (m)’’ and in22 serting ‘‘subsection (l)’’; 

23 (iv) in paragraph (27), as so redesig24 nated, by striking ‘‘and’’ at the end; 


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1 (v) in paragraph (28), as so redesig2 nated, by striking the period and inserting 

3 ‘‘; and’’; and 

4 (vi) by striking the matter following 

5 paragraph (28), as so redesignated and in6 serting the following: 

7 ‘‘(29) under subsection (a), over retention of 

8 property of the estate subject to a potential loss of 

9 value due to accident, casualty, or theft unless the 

10 party entitled to possession provides proof of insur11 ance or other security sufficient to protect the cred12 itor against such loss of value.’’; 

13 (C) in subsection (c)— 

14 (i) in the matter preceding paragraph 

15 (1), by striking ‘‘(f), and (h)’’ and insert16 ing ‘‘and (f)’’; 

17 (ii) by striking paragraphs (2) and (3) 

18 and inserting the following: 

19 ‘‘(2) in a case under chapter 7, 9, 11, or 12, 

20 the stay of any other act under subsection (a) of this 

21 section continues until the earliest of— 

22 ‘‘(A) the time the case is closed; 

23 ‘‘(B) the time the case is dismissed; or 


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1 ‘‘(C) if the case is a case under chapter 9, 

2 11, or 12, the time a discharge is granted or 

3 denied; 

4 ‘‘(3) in a case under chapter 10, the stay of any 

5 other act under subsection (a) of this section con6 tinues until the earliest of— 

7 ‘‘(A) the time the case is closed; 

8 ‘‘(B) the time the case is dismissed; or 

9 ‘‘(C) the time specified in section 1021(e) 

10 has expired without the debtor having filed a 

11 plan; and’’; and 

12 (iii) in subparagraph (A)(i) of para13 graph (4), by striking ‘‘dismissed, other 

14 than a case refiled under a chapter other 

15 than chapter 7 after dismissal under sec16 tion 707(b),’’ and inserting ‘‘dismissed,’’; 

17 (D) in subsection (e)(2), by striking ‘‘chap18 ter 7, 11, or 13’’ and inserting ‘‘chapter 10 or 

19 11’’; 

20 (E) by striking subsections (h) and (i); 

21 (F) by redesignating subsections (j) 

22 through (o) as subsections (h) through (m) re23 spectively; 

24 (G) in subsection (i), as so redesignated— 


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1 (i) by striking ‘‘(1) Except as pro2 vided in paragraph (2), an’’ and inserting 

3 ‘‘An’’; and 

4 (ii) by striking paragraph (2); and 

5 (H) by adding at the end the following: 

6 ‘‘(n) Any agreement of the debtor entered into before 

7 the filing of the petition to waive the provisions of this 

8 section or any other provision of this title is void.’’. 

9 (2) CONFORMING AMENDMENTS.— 

10 (A) Section 1519(f) of title 11, United 

11 States Code, is amended by striking ‘‘section 

12 362(o)’’ and inserting ‘‘section 362(m)’’. 

13 (B) Section 1521(f) of title 11, United 

14 States Code, is amended by striking ‘‘section 

15 362(o)’’ and inserting ‘‘section 362(m)’’. 

16 (v) USE, SALE, OR LEASE OF PROPERTY.—Section 

17 363 of title 11, United States Code, is amended— 

18 (1) in subsection (c)(1), by striking ‘‘section 

19 721, 1108, 1183, 1184, 1203, 1204 or 1304 of this 

20 title’’ and inserting ‘‘section 721, 1003, 1108, 1183, 

21 1184, 1203, or 1204 of this title’’; and 

22 (2) in subsection (l), by striking ‘‘under chapter 

23 11, 12, or 13 of this title’’ and inserting ‘‘under 

24 chapter 10, 11, or 12 of this title’’. 


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1 (w) OBTAINING CREDIT.—Section 364(a) of title 11, 

2 United States Code, is amended by striking ‘‘section 721, 

3 1108, 1183, 1184, 1203, 1204, or 1304 of this title,’’ and 

4 inserting ‘‘section 721, 1108, 1183, 1184, 1203, or 1204 

5 of this title,’’. 

6 (x) EXECUTORY CONTRACTS AND UNEXPIRED

7 LEASES.—Section 365 of title 11, United States Code, is 

8 amended— 

9 (1) in subsection (d)(2), by striking ‘‘under 

10 chapter 9, 11, 12, or 13 of this title’’ and inserting 

11 ‘‘under chapter 9, 10, 11, or 12 of this title’’; 

12 (2) in subsection (g)— 

13 (A) in paragraph (1), by striking ‘‘under 

14 chapter 9, 11, 12, or 13 of this title,’’ and in15 serting ‘‘under chapter 9, 10, 11, or 12 of this 

16 title,’’; and 

17 (B) in paragraph (2)— 

18 (i) in the matter preceding subpara19 graph (A), by striking ‘‘under chapter 9, 

20 11, 12, or 13 of this title’’ and inserting 

21 ‘‘under chapter 9, 10, 11, or 12 of this 

22 title’’; 

23 (ii) in subparagraph (A) by striking 

24 ‘‘under section 1112, 1208, or 1307 of this 


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1 title,’’ and inserting ‘‘under section 1005, 

2 1053(c), 1112, or 1208 of this title,’’; and 

3 (iii) in subparagraph (B), in the mat4 ter preceding clause (i), by striking ‘‘under 

5 section 1112, 1208, or 1307 of this title’’ 

6 and inserting ‘‘under section 1005, 

7 1053(c), 1112, or 1208 of this title’’; and 

8 (3) by striking subsection (p) and inserting the 

9 following: 

10 ‘‘(p) Notwithstanding any provision in a lease or ap11 plicable nonbankruptcy law, the following shall apply: 

12 ‘‘(1)(A) If the debtor is an individual, the trust13 ee shall be deemed to have abandoned any unexpired 

14 lease of residential real property that is the debtor’s 

15 principal residence of which the debtor or the debt16 or’s spouse or dependents is a tenant. 

17 ‘‘(B)(i) Notwithstanding any other provision of 

18 this section, the debtor may assume such a lease— 

19 ‘‘(I) without curing any monetary defaults 

20 under the lease that aggregate no more than 

21 the amount described in clause (iii); and 

22 ‘‘(II) without adequate assurance of future 

23 performance. 

24 ‘‘(ii) If there are monetary defaults under the 

25 lease that aggregate to more than the amount deVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 scribed in clause (iii), the debtor may not assume 

2 such lease unless all monetary defaults in excess of 

3 the amount described in clause (iii) are cured. 

4 ‘‘(iii) The amount described in this clause is the 

5 amount equal to 6 times the monthly rent to be paid 

6 by the debtor under the lease. 

7 ‘‘(C) Any monetary defaults on such a lease left 

8 uncured shall become claims against the estate in 

9 accordance with subsection (g). 

10 ‘‘(D)(i) All non-monetary defaults on such a 

11 lease shall be deemed waived, except those relating 

12 to health or safety, which shall require permission of 

13 the court to waive or modify if the lessor objects to 

14 their waiver or modification. 

15 ‘‘(ii) Any pecuniary loss in accordance with 

16 such a non-monetary default shall constitute a claim 

17 against the estate in accordance with subsection (g). 

18 ‘‘(E) Such a lease not assumed by the debtor, 

19 including satisfaction or adequate assurance of any 

20 cure required within 60 days of the order of relief, 

21 under this paragraph shall return to the bankruptcy 

22 estate. 

23 ‘‘(2)(A) If the debtor is an individual and if an 

24 unexpired lease of property not subject to paragraph 

25 (1) is rejected or not timely assumed by the trustee 


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1 under subsection (d), the debtor may move to as2 sume the lease. 

3 ‘‘(B) The court— 

4 ‘‘(i) may approve such an assumption if 

5 the debtor cures any monetary default within 

6 90 days after the date of assumption; and 

7 ‘‘(ii) shall withhold any discharge of the 

8 debtor until such cure is made. 

9 ‘‘(C) The debtor’s interest in the lease or prop10 erty that is the subject of the lease ceases to be 

11 property of the estate if— 

12 ‘‘(i) the debtor fails to move to assume the 

13 lease within 14 days after the lease is rejected 

14 or not timely assumed by the trustee; or 

15 ‘‘(ii) the debtor’s motion to assume the 

16 lease is denied. 

17 ‘‘(D) All non-monetary defaults on such a lease 

18 shall be deemed waived except those relating to 

19 health or safety, which shall require permission of 

20 the court upon motion to waive or modify if the les21 sor objects to their waiver or modification. 

22 ‘‘(3) In this subsection, the term ‘lease’ does 

23 not include— 


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1 ‘‘(A) an agreement that is a security inter2 est under applicable nonbankruptcy law, irre3 spective of its form; or 

4 ‘‘(B) a lease the term of which extends be5 yond the remaining economic life of the prop6 erty.’’. 

7 (y) UTILITY SERVICE.—Section 366(b) of title 11 

8 United States Code, is amended by striking ‘‘Such utility’’ 

9 and inserting ‘‘In a case other than under chapter 10 of 

10 this title, such utility’’. 

11 (z) FILING OF PROOFS OF CLAIMS OR INTERESTS.— 

12 Section 501 of title 11, United States Code, is amended 

13 by adding at the end the following: 

14 ‘‘(f)(1) Any creditor that files a claim in a case in 

15 which the debtor is an individual, and any attorney rep16 resenting such creditor, shall at the time of filing certify, 

17 under penalty of perjury, whether the creditor has a bene18 ficial interest in the claim and to what extent. 

19 ‘‘(2) If the creditor does not hold the entire beneficial 

20 interest in the claim, the creditor shall disclose in the cer21 tification under paragraph (1) the identity of the party 

22 or parties holding the beneficial interest. 

23 ‘‘(3) The creditor shall promptly notify the court, the 

24 trustee, the United States Trustee, and the debtor of any 


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1 updates necessary to maintain the accuracy of the certifi2 cation under paragraph (1). 

3 ‘‘(g) The filing of a claim under this title shall not 

4 revive any period of limitations under applicable nonbank5 ruptcy law.’’. 

6 (aa) ALLOWANCE OF CLAIMS OR INTERESTS.— 

7 (1) IN GENERAL.—Section 502 of title 11, 

8 United States Code, is amended— 

9 (A) in subsection (b)— 

10 (i) in the matter preceding paragraph 

11 (1), by striking ‘‘subsections (e)(2), (f), 

12 (g), (h) and (i)’’ and inserting ‘‘subsections 

13 (c), (f)(2), (g), (h), (i) and (j)’’; 

14 (ii) in paragraph (2), by striking ‘‘in15 terest;’’ and inserting ‘‘interest, including 

16 under a prepayment penalty, yield mainte17 nance clause, make-whole clause, or similar 

18 contractual provision;’’; 

19 (iii) by redesignating paragraphs (3) 

20 through (9) as paragraphs (5) through 

21 (11), respectively; 

22 (iv) by inserting after paragraph (2) 

23 the following: 

24 ‘‘(3) such claim is for attorneys’ fees incurred 

25 after the entry of the order for relief under this title, 


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1 except to the extent permitted under section 503 or 

2 506 of this title; 

3 ‘‘(4) notwithstanding section 506(b), such claim 

4 is for a fee incurred under section 1930(b) of title 

5 28;’’; 

6 (v) in paragraph (10), as so redesig7 nated, by striking ‘‘or’’ at the end; and 

8 (vi) in paragraph (11), as so redesig9 nated— 

10 (I) by striking ‘‘except that—’’ 

11 and all that follows through ‘‘a claim 

12 of a governmental unit’’ and inserting 

13 ‘‘except that a claim of a govern14 mental unit’’; 

15 (II) by striking ‘‘provide; and’’ 

16 and inserting ‘‘provide.’’; and 

17 (III) by striking subparagraph 

18 (B); 

19 (B) by striking subsection (k); 

20 (C) by redesignating subsections (d), (e), 

21 (f), (g), (h), (i), and (j) as subsections (e), (f), 

22 (g), (h), (i), (j), and (k), respectively; 

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

24 following: 


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1 ‘‘(d) The court shall, after notice and a hearing, dis2 allow any claim if the creditor, an affiliate of the creditor, 

3 an agent of the creditor, a direct or indirect transferor 

4 of the claim to the creditor, or an affiliate of such trans5 feror violated a Federal consumer financial law, as defined 

6 in section 1002 of the Consumer Financial Protection Act 

7 of 2010 (12 U.S.C. 5481), in connection with the claim 

8 or an obligation that gave rise to the claim.’’; 

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

10 by striking ‘‘or 724(a) of this title’’ and insert11 ing ‘‘724(a), or 1041 of this title’’; 

12 (F) in subsection (f), as so redesignated, in 

13 paragraph (2), by striking ‘‘or disallowed under 

14 subsection (d)’’ and inserting ‘‘or disallowed 

15 under subsection (d) or (e)’’; 

16 (G) in subsection (g), as so redesignated, 

17 by striking ‘‘or disallowed under subsection (d) 

18 or (e)’’ and inserting ‘‘or disallowed under sub19 section (d), (e), or (f)’’; 

20 (H) in subsection (h), as so redesignated— 

21 (i) in paragraph (1)— 

22 (I) by striking ‘‘chapter 9, 11, 

23 12, or 13’’ and inserting ‘‘chapter 9, 

24 10, 11, or 12’’; and 


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1 (II) by striking ‘‘or disallowed 

2 under subsection (d) or (e)’’ and in3 serting ‘‘or disallowed under sub4 section (d), (e), or (f)’’; and 

5 (ii) in paragraph (2), by striking ‘‘or 

6 disallowed under subsection (d) or (e)’’ and 

7 inserting ‘‘or disallowed under subsection 

8 (d), (e), or (f)’’; 

9 (I) in subsection (i), 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 (J) in subsection (j), as so redesignated, by 

14 striking ‘‘or disallowed under subsection (d) or 

15 (e)’’ and inserting ‘‘or disallowed under sub16 section (d), (e), or (f)’’; and 

17 (K) by adding at the end the following: 

18 ‘‘(l)(1) The court shall grant judgment against the 

19 creditor and in favor of the estate for costs and reasonable 

20 attorneys’ fees— 

21 ‘‘(A) if— 

22 ‘‘(i) a claim is disallowed under subsection 

23 (b) because the debt from which it arises is not 

24 within the applicable statutory limitations pe25 riod; and 


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1 ‘‘(ii) the creditor did not take reasonable 

2 actions to form a good faith belief that the debt 

3 on which it is based is within the applicable 

4 statutory limitations period; or 

5 ‘‘(B) if a claim is disallowed under subsection 

6 (d). 

7 ‘‘(2) The estate may offset the liability of a creditor 

8 under this subsection against any distribution otherwise 

9 to be made to the creditor. 

10 ‘‘(3) The remedy provided by this subsection shall not 

11 be exclusive of other remedies available to the debtor or 

12 the estate.’’. 

13 (2) CONFORMING AMENDMENTS.— 

14 (A) Section 101 of title 11, United States 

15 Code, is amended in paragraph (12)(B), as re16 designated by this section, by striking ‘‘502(f), 

17 502(g), 502(h) or 502(i)’’ and inserting ‘‘sub18 section (g), (h), (i), or (j) of section 502’’. 

19 (B) Section 501(d) of title 11, United 

20 States Code, is amended by striking ‘‘in section 

21 502(e)(2), 502(f), 502(g), 502(h) or 502(i)’’ 

22 and inserting ‘‘in subsection (f)(2), (g), (h), (i), 

23 or (j) of section 502’’. 

24 (C) Section 503(b) of title 11, United 

25 States Code, is amended— 


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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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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 

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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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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) 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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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) of sec17 tion 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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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 (29 U.S.C. 

10 1002)) of an employee benefit plan if, at the time 

11 of the commencement of the case, the debtor (or any 

12 entity designated by the debtor) served as such ad13 ministrator. 

14 ‘‘(b) In a case under chapter 10 of this title: 

15 ‘‘(1) Not later than 7 days before the date first 

16 set for the first meeting of creditors, the debtor shall 

17 provide to the trustee documentation that establishes 

18 the debtor’s income in 1 or more of the following 

19 forms: 

20 ‘‘(A) One or more payment advices, issued 

21 within 60 days before the date of the filing of 

22 the petition, showing the debtor’s year-to-date 

23 income. 

24 ‘‘(B) A copy of the Federal income tax re25 turn required under applicable law (or at the 


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•S 5577 IS

1 election of the debtor, a transcript of such re2 turn) for the most recent tax year ending im3 mediately before the commencement of the case 

4 and for which a Federal income tax return was 

5 filed. 

6 ‘‘(C) A W-2 form issued by each employer 

7 for the tax year preceding the year the petition 

8 is filed. 

9 ‘‘(D) Other evidence of payment received 

10 within 60 days before the date of the filing of 

11 the petition that establishes the debtor’s in12 come. 

13 ‘‘(2) If the debtor’s annual income creates or 

14 increases the minimum payment obligation as de15 scribed in clause (ii) of section 101(54)(B) of this 

16 title, the debtor shall, to the extent not already pro17 vided under paragraph (1), provide to the trustee as 

18 documentation of income— 

19 ‘‘(A) a copy of the Federal income tax re20 turn required under applicable law (or at the 

21 election of the debtor, a transcript of such re22 turn) for the most recent tax year ending im23 mediately before the commencement of the case 

24 and for which a Federal income tax return was 

25 required and filed; and 


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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) of section 

12 101(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 (as defined in section 110 

20 of this title) may rely on the schedule of current income 

21 to determine that— 

22 ‘‘(1) the documentation requirements of sub23 section (b)(2) do not apply; and 


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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 debtor’s control. 


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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 11 who is 

25 an individual shall file with the court— 


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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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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 a spouse, 

23 whether or not actually dependent; and 

24 ‘‘(3) the term ‘value’ means value— 


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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; 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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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 5577 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 5577 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 5577 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 $40,000 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 5577 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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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 5577 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 5577 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 5577 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 (15 U.S.C. 

11 78c(a)(47))), any State securities laws, or any 

12 regulation or order issued under Federal securi13 ties laws or State securities 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 (15 U.S.C. 78l, 15 U.S.C. 

19 78o(d)) or under section 6 of the Securities Act 

20 of 1933 (15 U.S.C. 77f); 

21 ‘‘(cc) any civil remedy under section 1964 

22 of title 18; 

23 ‘‘(dd) for debts arising from a violation of 

24 section 1979 of the Revised Statutes of the 

25 United States (42 U.S.C. 1983); or 


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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 section 7805 of the Internal Revenue Code of 1986, 

22 those funds shall be exempt from the estate if the court 

23 determines that— 


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•S 5577 IS

1 ‘‘(i) no prior determination to the contrary has 

2 been made by a court or the Internal Revenue Serv3 ice; and 

4 ‘‘(ii)(I) the retirement fund is in substantial 

5 compliance with the applicable requirements of the 

6 Internal Revenue Code of 1986; or 

7 ‘‘(II) the retirement fund fails to be in substan8 tial compliance with the applicable requirements of 

9 the Internal Revenue Code of 1986 and the debtor 

10 is not materially responsible for that failure. 

11 ‘‘(5)(A) A direct transfer of retirement funds from 

12 1 fund or account that is exempt from taxation under sec13 tion 401, 403, 408, 408A, 414, 457, or 501(a) of the In14 ternal Revenue Code of 1986, under section 401(a)(31) 

15 of the Internal Revenue Code of 1986, or otherwise, shall 

16 not cease to qualify for exemption under item (kk) of para17 graph (2)(A)(ii)(II) or clause (iii) of paragraph (3)(A) by 

18 reason of such direct transfer. 

19 ‘‘(B)(i) Any distribution that qualifies as an eligible 

20 rollover distribution within the meaning of section 402(c) 

21 of the Internal Revenue Code of 1986 or that is described 

22 in clause (ii) of this subparagraph shall not cease to qual23 ify for exemption under item (kk) of paragraph 

24 (2)(A)(ii)(II) or clause (iii) of paragraph (3)(A) by reason 

25 of such distribution. 


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•S 5577 IS

1 ‘‘(ii) A distribution described in this clause is an 

2 amount that— 

3 ‘‘(I) has been distributed from a fund or ac4 count that is exempt from taxation under section 

5 401, 403, 408, 408A, 414, 457, or 501(a) of the In6 ternal Revenue Code of 1986; and 

7 ‘‘(II) to the extent allowed by law, is deposited 

8 in such a fund or account not later than 60 days 

9 after the distribution of such amount. 

10 ‘‘(6)(A) In joint cases filed under section 302 of this 

11 title and individual cases filed under section 301 or 303 

12 of this title by or against 2 debtors who are married to 

13 each other, and whose estates are ordered to be jointly 

14 administered under the Federal Rules of Bankruptcy Pro15 cedure, the debtors shall be deemed to elect exempt prop16 erty under paragraph (2) unless they both affirmatively 

17 elect to exempt property under paragraph (3). 

18 ‘‘(B) In a joint case, the residence exemptions in sub19 paragraphs (2)(A)(i) and (3)(A)(i) shall be allocated one20 half each to each debtor. 

21 ‘‘(C) The nonresidence exemptions in paragraphs 

22 (2)(A)(iii) and (3)(A)(iii) shall apply separately with re23 spect to each debtor in a joint case. 

24 ‘‘(c) Unless the case is dismissed, property exempted 

25 under this section is not liable during or after the case 


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•S 5577 IS

1 for any debt of the debtor that arose, or that is determined 

2 under section 502 of this title as if such debt had arisen, 

3 before the commencement of the case, except— 

4 ‘‘(1) a debt of a kind specified in paragraph (5) 

5 of section 523(a) (in which case, notwithstanding 

6 any provision of applicable nonbankruptcy law to the 

7 contrary, such property shall be liable for a debt of 

8 a kind specified in such paragraph); or 

9 ‘‘(2) a debt secured by a lien that is— 

10 ‘‘(A) not avoided under subsection (e) or 

11 (g) of this section or under section 544, 545, 

12 547, 548, or 549 of this title; and 

13 ‘‘(B) not void under section 506(d) of this 

14 title. 

15 ‘‘(d)(1) A waiver of an exemption executed in favor 

16 of a creditor that holds an unsecured claim against the 

17 debtor is unenforceable in a case under this title with re18 spect to such claim against property that the debtor may 

19 exempt under subsection (b). 

20 ‘‘(2) A waiver by the debtor of a power under sub21 section (e) or (g) to avoid a transfer, under subsection (f) 

22 or (h) to exempt property, or under subsection (h) to re23 cover property or to preserve a transfer, is unenforceable 

24 in a case under this title. 


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•S 5577 IS

1 ‘‘(e)(1) Notwithstanding any waiver of exemptions, 

2 the debtor may avoid the fixing of a lien on an interest 

3 of the debtor in property to the extent that such lien im4 pairs an exemption to which the debtor would have been 

5 entitled under subsection (b), if such lien is— 

6 ‘‘(A) a judicial lien, other than a judicial lien 

7 that secures a debt of a kind that is specified in sec8 tion 523(a)(5); or 

9 ‘‘(B) a nonpossessory, non-purchase-money se10 curity interest in any personal, family, or household 

11 goods or in any implements, professional books, or 

12 tools, of the trade of the debtor or the trade of a 

13 dependent of the debtor. 

14 ‘‘(2)(A) For the purposes of this subsection, a lien 

15 shall be considered to impair an exemption to the extent 

16 that the sum of— 

17 ‘‘(i) the lien; 

18 ‘‘(ii) all other liens on the property; and 

19 ‘‘(iii) the amount of the exemption that the 

20 debtor could claim if there were no liens on the 

21 property, exceeds the value that the debtor’s interest 

22 in the property would have in the absence of any 

23 liens. 

24 ‘‘(B) In the case of a property subject to more than 

25 1 lien, a lien that has been avoided shall not be considered 


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1 in making the calculation under subparagraph (A) with 

2 respect to other liens. 

3 ‘‘(C) This paragraph shall not apply with respect to 

4 a judgment arising out of a mortgage foreclosure. 

5 ‘‘(f) Notwithstanding sections 550 and 551 of this 

6 title, the debtor may exempt under subsection (b) of this 

7 section property that the trustee recovers under section 

8 510(c)(2), 542, 543, 550, 551, or 553 of this title, to the 

9 extent that the debtor could have exempted such property 

10 under subsection (b) of this section if such property had 

11 not been transferred, if— 

12 ‘‘(1)(A) such transfer was not a voluntary 

13 transfer of such property by the debtor; and 

14 ‘‘(B) the debtor did not conceal such property; 

15 or 

16 ‘‘(2) the debtor could have avoided such trans17 fer under subsection (e)(1) of this section. 

18 ‘‘(g) The debtor may avoid a transfer of property of 

19 the debtor or recover a setoff to the extent that the debtor 

20 could have exempted such property under subsection (f)(1) 

21 if the trustee had avoided such transfer, if— 

22 ‘‘(1) such transfer is avoidable by the trustee 

23 under section 544, 545, 547, 548, 549, or 1041 of 

24 this title or recoverable by the trustee under section 

25 553 of this title; and 


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1 ‘‘(2) the trustee does not attempt to avoid such 

2 transfer. 

3 ‘‘(h)(1) If the debtor avoids a transfer or recovers a 

4 setoff under subsection (e) or (g), the debtor may recover 

5 in the manner prescribed by, and subject to the limitations 

6 of, section 550 of this title, the same as if the trustee had 

7 avoided such transfer, and may exempt any property so 

8 recovered under subsection (b). 

9 ‘‘(2) Notwithstanding section 551 of this title, a 

10 transfer avoided under section 544, 545, 547, 548, 549, 

11 or 1041 of this title, under subsection (e) or (g) of this 

12 section, or property recovered under section 553 of this 

13 title, may be preserved for the benefit of the debtor to 

14 the extent that the debtor may exempt such property 

15 under subsection (f) of this section or paragraph (1) of 

16 this subsection. 

17 ‘‘(i) Notwithstanding subsections (f) and (h), the 

18 debtor may exempt a particular kind of property under 

19 subsections (f) and (h) only to the extent that the debtor 

20 has exempted less property in value of such kind than that 

21 to which the debtor is entitled under subsection (b). 

22 ‘‘(j) Property that the debtor exempts under this sec23 tion is not liable for payment of any administrative ex24 pense except— 


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1 ‘‘(1) the aliquot share of the costs and expenses 

2 of avoiding a transfer of property that the debtor ex3 empts under subsection (f), or of recovery of such 

4 property, that is attributable to the value of the por5 tion of such property exempted in relation to the 

6 value of the property recovered; and 

7 ‘‘(2) any costs and expenses of avoiding a 

8 transfer under subsection (e) or (g), or of recovery 

9 of property under subsection (h)(1), that the debtor 

10 has not paid. 

11 ‘‘(k)(1)(A) The debtor shall file a list of property that 

12 the debtor claims as exempt under subsection (b). 

13 ‘‘(B) If the debtor does not file such a list, a depend14 ent of the debtor may file such a list, or may claim prop15 erty as exempt from property of the estate on behalf of 

16 the debtor. 

17 ‘‘(2) Unless a party in interest objects, the property 

18 claimed as exempt on such list is exempt.’’. 

19 (2) CONFORMING AMENDMENT.— 

20 (A) Section 349(b)(1)(B) of title 11, 

21 United States Code, is amended by striking 

22 ‘‘522(i)(2),’’ and inserting ‘‘522(h)(1),’’. 

23 (B) Subsection (e) of section 502 of title 

24 11, United States Code, as so redesignated by 

25 subsection (aa) of this section, is amended— 


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1 (i) by striking ‘‘section 522(f), 

2 522(h),’’ and inserting ‘‘section 522(e), 

3 522(g),’’; and 

4 (ii) by striking ‘‘section 522(i)’’ and 

5 inserting ‘‘section 522(h)’’. 

6 (gg) EXCEPTIONS TO DISCHARGE.—Section 523 of 

7 title 11, United States Code, is amended— 

8 (1) in subsection (a)— 

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

10 by striking ‘‘727, 1141, 1192 1228(a), 1228(b), 

11 or 1328(b)’’ and inserting 1031(a), 1141, 1192, 

12 1228(a), or 1228(b)’’; 

13 (B) in paragraph (1)(B), in the matter 

14 preceding clause (i), by inserting ‘‘subject to 

15 subsection (f),’’ before ‘‘with respect’’; 

16 (C) in paragraph (2)— 

17 (i) in subparagraph (A), by adding 

18 ‘‘or’’ at the end; 

19 (ii) in subparagraph (B)(iv), by strik20 ing ‘‘or’’ at the end; and 

21 (iii) by striking subparagraph (C); 

22 (D) in paragraph (3)— 

23 (i) in subparagraph (A), by striking 

24 ‘‘(4), or (6)’’ and inserting ‘‘(4), (6), or 

25 (7)’’; and 


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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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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 2024, 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 (15), by inserting before 

18 the semicolon at the end ‘‘, except for a debt 

19 arising from an obligation to pay, or to hold a 

20 former spouse harmless from, joint debts in21 curred by the debtor and the debtor’s former 

22 spouse’’; 

23 (L) in paragraph (16), by inserting ‘‘and 

24 the debtor or the trustee possesses, occupies, or 

25 uses the property’’ after ‘‘such lot’’; 


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1 (M) by striking paragraph (17); 

2 (N) by redesignating paragraph (18) as 

3 paragraph (17); and 

4 (O) by striking paragraph (19) and insert5 ing the following: 

6 ‘‘(18) in a case under chapter 10, for a debt for 

7 compensation owed on the date of the petition to the 

8 debtor’s attorney under an agreement described in 

9 section 329(c); 

10 ‘‘(19) for debts arising from a violation of sec11 tion 1979 of the Revised Statutes of the United 

12 States (42 U.S.C. 1983); or’’; 

13 (2) in subsection (b), by striking ‘‘(a)(1), 

14 (a)(3), or (a)(8)’’ and inserting ‘‘(a)(1) or (a)(3)’’; 

15 (3) in subsection (c), by adding at the end the 

16 following: 

17 ‘‘(3) Notwithstanding subsection (a) of this section, 

18 the debtor shall be discharged from a debt of the kind 

19 specified in subsection (a)(7) of this section if the sen20 tencing order fails to separately list any fees, costs, assess21 ments or surcharges in addition to any fine, penalty, or 

22 restitution, and such fees, costs, assessments, or sur23 charges are authorized to be assessed under nonbank24 ruptcy law for the particular crime committed by the debt25 or, unless— 


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1 ‘‘(A) the sentencing order expressly states that 

2 no fees, costs, assessments or surcharges are as3 sessed against the debtor in addition to any fine, 

4 penalty, or restitution; or 

5 ‘‘(B) on request of the creditor to whom such 

6 debt is owed, and after notice and a hearing, the 

7 court determines such debt shall not be discharged 

8 under subsection (a)(7) of this section.’’; and 

9 (4) by adding at the end the following: 

10 ‘‘(f) For purposes of subparagraph (B) of subsection 

11 (a)(1), a return— 

12 ‘‘(1) must satisfy the requirements of applicable 

13 nonbankruptcy law; 

14 ‘‘(2) must have been filed in a manner per15 mitted by applicable nonbankruptcy law regardless 

16 of whether it was filed before or after any applicable 

17 deadline; 

18 ‘‘(3) includes a return prepared pursuant to 

19 section 6020(a) of the Internal Revenue Code of 

20 1986, or similar State or local law, or a written stip21 ulation to a judgment entered by a nonbankruptcy 

22 tribunal; and 

23 ‘‘(4) does not include a return made pursuant 

24 to section 6020(b) of the Internal Revenue Code of 

25 1986, or similar State or local law.’’. 


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1 (hh) EFFECT OF DISCHARGE.—Section 524 of title 

2 11, United States Code, is amended— 

3 (1) in subsection (a)— 

4 (A) in paragraph (1), by striking ‘‘727, 

5 944, 1141, 1192, 1228, or 1328’’ and inserting 

6 ‘‘sections 727 or 1328, as in effect on the day 

7 before the date of enactment of the Consumer 

8 Bankruptcy Reform Act of 2024, or sections 

9 944, 1031, 1141, 1192, or 1228’’; and 

10 (B) in paragraph (3), by striking ‘‘1192, 

11 1228(a)(1), or 1328(a)(1)’’ and inserting 

12 ‘‘1031, 1192, or 1228(a)(1), or section 

13 1328(a)(1), as in effect on the day before the 

14 date of enactment of the Consumer Bankruptcy 

15 Reform Act of 2024’’; 

16 (2) in subsection (b)(2)(B), by striking ‘‘727’’ 

17 and inserting ‘‘1031’’; 

18 (3) by striking subsection (c) and inserting the 

19 following: 

20 ‘‘(c)(1) A debtor that receives a discharge under sec21 tion 1031, or section 727 or 1328, as in effect on the day 

22 before the date of enactment of the Consumer Bankruptcy 

23 Reform Act of 2024, the trustee, the United States trust24 ee, or the bankruptcy administrator may bring a civil ac25 tion against a person that knows or should know that the 


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•S 5577 IS

1 discharge injunction is applicable and has intentionally or 

2 negligently commenced or continued any action described 

3 in subsection (a). 

4 ‘‘(2) An action under paragraph (1) shall be com5 menced not later than 1 year after the date on which the 

6 discharged debtor, the trustee, or the United States trust7 ee discovers that a person has commenced or continued 

8 any action described in subsection (a). 

9 ‘‘(3) In an action under paragraph (1), the court may 

10 award relief consistent with this title if the court finds 

11 that a person has— 

12 ‘‘(A) engaged in conduct in violation of this sec13 tion or of any provision of this title; or 

14 ‘‘(B) engaged in fraudulent, unfair, deceptive, 

15 or abusive conduct with respect to the debtor or the 

16 case. 

17 ‘‘(4) Subject to paragraph (6), in a successful action 

18 under paragraph (1)— 

19 ‘‘(A) the court— 

20 ‘‘(i) shall award to a discharged debtor in21 jured by a violation of subsection (a)— 

22 ‘‘(I) actual damages, including dam23 ages for emotional distress; and 

24 ‘‘(II) reasonable costs and attorneys’ 

25 fees; and 


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1 ‘‘(ii) if the trustee or the United States 

2 trustee is a prevailing party in the action, shall 

3 award to the trustee or the United States trust4 ee— 

5 ‘‘(I) reasonable costs and attorney 

6 fees; and 

7 ‘‘(II) a fee equal to 3 times the 

8 amount sought to be collected by the per9 son found to be in violation of subsection 

10 (a); and 

11 ‘‘(B) the court may award punitive damages, as 

12 appropriate. 

13 ‘‘(5)(A) If the court awards punitive damages under 

14 paragraph (4) in an action brought or joined by the trust15 ee, the court may award between 10 percent and 25 per16 cent of the punitive damages to the trustee who brought 

17 or joined the action. 

18 ‘‘(B) Any punitive damages under this subsection 

19 shall be in addition to the compensation set out in section 

20 326. 

21 ‘‘(6) If the commencement or continuation of any ac22 tion described in subsection (a) was taken by a person in 

23 the good faith belief that subsection (a) did not apply to 

24 the debt, and the action was withdrawn upon discovery 

25 that subsection (a) applied to the debt, the recovery shall 


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1 be limited to actual damages, including damages for emo2 tional distress, and reasonable costs and attorneys’ fees. 

3 ‘‘(7) Nothing in this subsection shall be construed to 

4 prejudice the ability to bring a motion for contempt of 

5 court for a violation of subsection (a). 

6 ‘‘(8) An agreement between a holder of a claim and 

7 the debtor, the consideration for which, in whole or in 

8 part, is based on a debt that is dischargeable in a case 

9 under this title is voidable by the debtor. 

10 ‘‘(9) Any pre-dispute arbitration agreement or pre11 dispute joint-action waiver regarding an action under 

12 paragraph (1) is voidable by the debtor.’’; 

13 (4) in subsection (d)— 

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

15 by striking ‘‘727, 1141, 1192, 1228, or 1328’’ 

16 and inserting ‘‘1031, 1141, 1192, or 1228’’; 

17 and 

18 (B) beginning in the matter preceding 

19 paragraph (1), by striking ‘‘If a discharge has 

20 been granted’’ and all that follows through the 

21 end of paragraph (2); 

22 (5) in subsection (f), by striking ‘‘(c) or’’; and 

23 (6) by striking subsections (k), (l), and (m) and 

24 inserting the following: 


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1 ‘‘(k)(1) Nothing in this section prejudices the ability 

2 to bring a motion for contempt of court for a violation 

3 of subsection (a) or any cause of action under applicable 

4 nonbankruptcy law. 

5 ‘‘(2) Any pre-dispute arbitration agreement or pre6 dispute joint-action waiver purporting to apply to such an 

7 action is void. 

8 ‘‘(l) Upon an entity’s request, and after notice and 

9 a hearing, the court shall issue an order declaring whether 

10 an action proposed to be taken by the entity would be a 

11 violation of the discharge injunction under subsection (a). 

12 ‘‘(m) The debtor’s failure to assert, raise, or plead 

13 the discharge shall not be construed to be a waiver against 

14 asserting the discharge.’’. 

15 (ii) PROTECTION AGAINST DISCRIMINATORY TREAT16 MENT.—Section 525 of title 11, United States Code, is 

17 amended— 

18 (1) in subsection (a), by striking ‘‘solely’’; 

19 (2) in subsection (b), in the matter preceding 

20 paragraph (1)— 

21 (A) by inserting ‘‘deny employment to,’’ 

22 after ‘‘may’’; and 

23 (B) by striking ‘‘solely’’; and 

24 (3) by adding at the end the following: 


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1 ‘‘(d)(1) A person aggrieved by a violation of this sec2 tion may enforce this section in the bankruptcy case or 

3 by bringing a civil action in an appropriate district court 

4 of the United States. 

5 ‘‘(2) To remedy a violation of this section, a court 

6 may— 

7 ‘‘(A) award damages including back pay; 

8 ‘‘(B) grant injunctive or other equitable relief; 

9 and 

10 ‘‘(C) award of costs, including attorneys’ fees, 

11 to an aggrieved party who prevails.’’. 

12 (jj) RESTRICTIONS ON DEBT RELIEF AGENCIES.— 

13 (1) IN GENERAL.—Section 526 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 526. 

19 (kk) DISCLOSURES.— 

20 (1) IN GENERAL.—Section 527 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 527. 


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1 (ll) REQUIREMENTS FOR DEBT RELIEF AGENCIES.— 

2 (1) IN GENERAL.—Section 528 of title 11, 

3 United States Code, is repealed. 

4 (2) CONFORMING AMENDMENT.—The table of 

5 sections for chapter 5 of title 11, United States 

6 Code, is amended by striking the item relating to 

7 section 528. 

8 (mm) PROPERTY OF THE ESTATE.—Section 541 of 

9 title 11, United States Code, is amended— 

10 (1) in subsection (b)(7)— 

11 (A) by striking ‘‘except that such amount 

12 under this subparagraph shall not constitute 

13 disposable income as defined in section 

14 1325(b)(2); or’’ each place it appears; 

15 (B) in subparagraph (A)(i)(III), by adding 

16 ‘‘or’’ at the end; and 

17 (C) in subparagraph (B)(i)(III), by adding 

18 ‘‘or’’ at the end; 

19 (2) in subsection (c)(2), by striking the period 

20 at the end and inserting ‘‘, except to the extent nec21 essary to satisfy claims entitled to priority under 

22 section 507(a)(1).’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(g) Notwithstanding any contrary provision of non25 bankruptcy law, a pre-dispute arbitration agreement or 


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•S 5577 IS

1 pre-dispute joint-action waiver entered into by the debtor 

2 shall not be enforceable against the bankruptcy estate or 

3 the debtor for matters arising in, arising under, or related 

4 to a case under this title.’’. 

5 (nn) TURNOVER OF PROPERTY TO ESTATE.— 

6 (1) IN GENERAL.—Section 542 of title 11, 

7 United States Code, is amended— 

8 (A) in subsection (a)— 

9 (i) by striking ‘‘subsection (c) or (d)’’ 

10 and inserting ‘‘subsection (d), (e), or (f)’’; 

11 and 

12 (ii) by striking ‘‘shall deliver to the 

13 trustee’’ and inserting ‘‘shall, without any 

14 condition or further action by the trustee, 

15 the debtor, or the court, deliver promptly 

16 to the trustee’’; 

17 (B) in subsection (b), by striking ‘‘sub18 section (c) or (d)’’ and inserting ‘‘subsection 

19 (d), (e), or (f)’’; 

20 (C) by redesignating subsections (c), (d), 

21 and (e) as subsections (e), (f), and (g), respec22 tively; and 

23 (D) by adding before subsection (e), as so 

24 redesignated, the following: 


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•S 5577 IS

1 ‘‘(c) An entity in possession of property that the 

2 trustee may use, sell, or lease under section 363 of this 

3 title, or that the debtor may exempt under section 522 

4 of this title, shall have, upon delivery of such property to 

5 the trustee, the same rights in the property as if the entity 

6 remained in possession. 

7 ‘‘(d) An entity that holds property that the trustee 

8 may use, sell, or lease under section 363 of this title, or 

9 that the debtor may exempt under section 522 of this title, 

10 and that is subject to a potential loss of value due to acci11 dent, casualty, or theft shall not be required to deliver 

12 such property to the trustee unless the party entitled to 

13 possession provides proof of insurance or other security 

14 sufficient to protect the creditor against such loss of 

15 value.’’. 

16 (2) CONFORMING AMENDMENT.—Section 

17 549(a)(2)(A) of title 11, United States Code, is 

18 amended by striking ‘‘542(c)’’ and inserting 

19 ‘‘542(e)’’. 

20 (oo) LIMITATIONS ON AVOIDING POWERS.—Section 

21 546(a)(1)(B) of title 11, United States Code, is amended 

22 by striking ‘‘1104, 1163, 1202, or 1302’’ and inserting 

23 ‘‘1001, 1104, 1163, or 1202’’. 


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•S 5577 IS

1 (pp) FRAUDULENT TRANSFERS AND OBLIGA2 TIONS.—Section 548 of title 11, United States Code, is 

3 amended— 

4 (1) in subsection (a)(1), in the matter pre5 ceding subparagraph (A), by striking ‘‘2 years’’ and 

6 inserting ‘‘4 years’’; 

7 (2) in subsection (b), by striking ‘‘2 years’’ and 

8 inserting ‘‘4 years’’; 

9 (3) in subsection (e)— 

10 (A) in paragraph (1)— 

11 (i) in the matter preceding subpara12 graph (A), by striking ‘‘In addition’’ and 

13 inserting ‘‘Subject to paragraphs (3) and 

14 (4), in addition’’; 

15 (ii) in subparagraph (B), by adding 

16 ‘‘and’’ at the end; 

17 (iii) in subparagraph (C), by striking 

18 ‘‘; and’’ and inserting a period; and 

19 (iv) by striking subparagraph (D); 

20 and 

21 (B) by adding at the end the following: 

22 ‘‘(3) The trustee may not avoid under paragraph (1) 

23 a transfer of property that is exempt from the estate pur24 suant to paragraph (2)(A)(ii)(II)(kk) or (3)(A)(iii) of sec25 tion 522(b). 


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1 ‘‘(4)(A) The trustee may not avoid under paragraph 

2 (1) a transfer that was not made with actual intent to 

3 hinder, delay, or defraud. 

4 ‘‘(B) The defendant in any action under this sub5 section has the burden of proof in pleading and proving 

6 that the transfer was not made with actual intent to 

7 hinder, delay, or defraud creditors.’’. 

8 (qq) LIABILITY OF TRANSFEREE OF AVOIDED

9 TRANSFER.—Section 550 of title 11, United States Code, 

10 is amended by adding at the end the following: 

11 ‘‘(g) The trustee may recover from a transferee the 

12 costs of bringing a successful avoidance action, including 

13 reasonable attorney fees, for the avoidance of a transfer 

14 under section 544(b) under— 

15 ‘‘(1) an applicable nonbankruptcy law that pro16 hibits a transfer made with actual intent to hinder, 

17 delay, or defraud a creditor; 

18 ‘‘(2) section 548(a)(1); or 

19 ‘‘(3) section 548(e).’’. 

20 (rr) EXPEDITED DETERMINATION OF INTERESTS IN, 

21 AND ABANDONMENT OR OTHER DISPOSITION OF GRAIN

22 ASSETS.—Section 557(d)(3) of title 11, United States 

23 Code is amended by striking ‘‘1104, 1183, 1202, and 

24 1302’’ and inserting ‘‘1001, 1104, 1183, and 1202’’. 


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•S 5577 IS

1 (ss) DUTIES OF TRUSTEE.—Section 704 of title 11, 

2 United States Code, is amended— 

3 (1) in subsection (a)— 

4 (A) by striking ‘‘(a) The’’ and inserting 

5 ‘‘The’’; 

6 (B) by striking paragraphs (3) and (10); 

7 and 

8 (C) by redesignating paragraphs (4), (5), 

9 (6), (7), (8), (9), (11), and (12) as paragraphs 

10 (3), (4), (5), (6), (7), (8), (9), and (10), respec11 tively; 

12 (2) by striking subsection (b); and 

13 (3) by striking subsection (c). 

14 (tt) CONVERSION.—Section 706 of title 11, United 

15 States Code, is amended— 

16 (1) in subsection (a)— 

17 (A) by striking ‘‘11, 12, or 13’’ and insert18 ing ‘‘11 or 12’’; and 

19 (B) by striking ‘‘1112, 1208, or 1307’’ and 

20 inserting ‘‘1112 or 1208’’; and 

21 (2) in subsection (c), by striking ‘‘12 or 13’’ 

22 and inserting ‘‘12’’. 

23 (uu) DISMISSAL OF A CASE OR CONVERSION TO A

24 CASE UNDER CHAPTER 11 OR 13.— 


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•S 5577 IS

1 (1) IN GENERAL.—Section 707 of title 11, 

2 United States Code is amended— 

3 (A) in the section heading, by striking ‘‘or 

4 conversion to a case under chapter 11 

5 or 13’’; 

6 (B) in subsection (a), by striking ‘‘(a) 

7 The’’ and inserting ‘‘The’’; 

8 (C) by striking subsection (b); and 

9 (D) by striking subsection (c). 

10 (2) CONFORMING AMENDMENT.—The table of 

11 sections for chapter 7 of title 11, United States 

12 Code, is amended by striking the item relating to 

13 section 707 and inserting the following: 

‘‘707. Dismissal of a case.’’. 

14 (vv) REDEMPTION.— 

15 (1) IN GENERAL.—Section 722 of title 11, 

16 United States Code, is repealed. 

17 (2) CONFORMING AMENDMENT.—The table of 

18 sections for chapter 7 of title 11, United States 

19 Code, is amended by striking the item relating to 

20 section 722. 

21 (ww) DISTRIBUTION OF PROPERTY OF THE ES22 TATE.—Section 726(b) of title 11, United States Code, is 

23 amended by striking ‘‘1112, 1208, or 1307’’ and inserting 

24 ‘‘1005, 1053(c), 1112, or 1208’’. 

25 (xx) DISCHARGE.— 


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•S 5577 IS

1 (1) IN GENERAL.—Section 727 of title 11, 

2 United States Code, is repealed. 

3 (2) CONFORMING AMENDMENT.—The table of 

4 sections for chapter 7 of title 11, United States 

5 Code, is amended by striking the item relating to 

6 section 727. 

7 (yy) DUTIES OF TRUSTEE AND EXAMINER.—Section 

8 1106 of title 11, United States Code, is amended— 

9 (1) in subsection (a)— 

10 (A) in paragraph (1), by striking ‘‘para11 graphs (2), (5), (7), (8), (9), (10), (11), and 

12 (12) of section 704(a)’’ and inserting ‘‘para13 graphs (2), (4), (6), (7), (8), (9), and (10) of 

14 section 704’’; and 

15 (B) in paragraph (5), by striking ‘‘7, 12, 

16 or 13’’ and inserting ‘‘7, 10, or 12’’; and 

17 (2) in subsection (c)(1)(C), by striking clause 

18 (iv) and inserting the following: 

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

20 holds a claim that is not discharged under 

21 paragraph (2) or (4) of section 523(a) of 

22 this title.’’. 

23 (zz) CONVERSION OR DISMISSAL.—Section 1112 of 

24 title 11, United States Code, is amended— 

25 (1) in subsection (a)— 


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1 (A) in paragraph (2), by striking ‘‘or’’; 

2 (B) in paragraph (3), by striking the pe3 riod at the end and inserting ‘‘; or’’; and 

4 (C) by adding at the end the following: 

5 ‘‘(4) the debtor is an individual.’’; 

6 (2) in subsection (b)(1), by inserting ‘‘in a case 

7 in which the debtor is not an individual,’’ after ‘‘sub8 section (c),’’; 

9 (3) in subsection (d), by striking ‘‘12 or 13’’ 

10 and insert ‘‘10 or 12’’; 

11 (4) by redesignating subsection (f) as sub12 section (g); and 

13 (5) by inserting after subsection (e), the fol14 lowing: 

15 ‘‘(f) The debtor may convert a case under this chap16 ter to a case under chapter 10 of this title at any time. 

17 Any waiver of the right to convert under this subsection 

18 is unenforceable.’’. 

19 (aaa) PROPERTY OF THE ESTATE.—Section 1115(a) 

20 of title 11, United States Code, is amended by striking 

21 ‘‘7, 12, or 13’’ each place it appears and inserting ‘‘10 

22 or 12’’. 

23 (bbb) CONTENTS OF PLAN.—Section 1123(a)(8) of 

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


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1 the execution of the plan.’’ and inserting ‘‘for the debtor 

2 to meet the minimum payment obligation of the debtor.’’. 

3 (ccc) CONFIRMATION OF PLAN.—Section 

4 1129(a)(15)(B) of title 11, United States Code, is amend5 ed by striking ‘‘the projected disposable income’’ and all 

6 that follows through ‘‘whichever is longer’’ and inserting 

7 ‘‘the minimum payment obligation of the debtor under a 

8 repayment plan under section 1021(a)(1) if the case were 

9 a case under chapter 10’’. 

10 (ddd) EFFECT OF CONFIRMATION.—Section 1141(d) 

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

12 (1) in paragraph (3)(C)— 

13 (A) by striking ‘‘section 727(a)’’ and in14 serting ‘‘section 1031’’; and 

15 (B) by striking ‘‘chapter 7’’ and inserting 

16 ‘‘chapter 10’’; and 

17 (2) in paragraph (5)— 

18 (A) in subparagraph (A), by adding ‘‘and’’ 

19 at the end; 

20 (B) in subparagraph (B)(iii), by striking ‘‘; 

21 and’’ at the end and inserting a period; and 

22 (C) by striking subparagraph (C). 

23 (eee) TRUSTEE.—Section 1183(b) of title 11, United 

24 States Code, is amended— 


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1 (1) in paragraph (1), by striking ‘‘paragraphs 

2 (2), (5), (6), (7), and (9) of section 704(a)’’ and in3 serting ‘‘paragraphs (2), (4), (5), (6), and (8) of sec4 tion 704’’; 

5 (2) in paragraph (5)(A), by striking 

6 ‘‘704(a)(8)’’ and inserting ‘‘704(7)’’; and 

7 (3) in paragraph (6), by striking ‘‘704(c)’’ and 

8 inserting ‘‘1001(b)(5)’’. 

9 (fff) PROPERTY OF THE ESTATE.—Section 1186(a) 

10 of title 11, United States Code, is amended by striking 

11 ‘‘7, 12, or 13’’ each place it appears and inserting ‘‘7, 

12 10, or 12’’. 

13 (ggg) TRUSTEE.—Section 1202 of title 11 United 

14 States Code, is amended— 

15 (1) in subsection (b)— 

16 (A) in paragraph (1), by striking ‘‘sections 

17 704(a)(2), 704(a)(3), 704(a)(5), 704(a)(6), 

18 704(a)(7), and 704(a)(9)’’ and inserting ‘‘para19 graphs (2), (3), (4), (5), (6), and (8) of section 

20 704’’; and 

21 (B) in paragraph (5), by striking 

22 ‘‘704(a)(8)’’ and inserting ‘‘704(7)’’; and 

23 (2) in subsection (c)(1)(C), by striking clause 

24 (iv) and inserting the following: 


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

2 holds a claim that is not discharged under 

3 paragraph (2) or (4) of section 523(a) of 

4 this title.’’. 

5 (hhh) CONVERSION OR DISMISSAL.—Section 1208 of 

6 title 11, United States Code, is amended— 

7 (1) in subsection (a) by striking ‘‘7 of’’ and in8 serting ‘‘7 or 10 of’’; and 

9 (2) in subsection (b) by striking ‘‘or 1112’’ and 

10 inserting ‘‘, 1005, 1053(c), or 1112’’. 

11 (iii) DISCHARGE.—Section 1228 of title 11, United 

12 States Code, is amended by striking subsection (f). 

13 SEC. 105. DATA COLLECTION. 

14 Section 159 of title 28, United States Code, is 

15 amended by striking subsections (a), (b), and (c) and in16 serting the following: 

17 ‘‘(a)(1) When a case is filed under chapter 10 of title 

18 11, each debtor in the case may file with the court the 

19 following information about the debtor: 

20 ‘‘(A) Marital status. 

21 ‘‘(B) Age. 

22 ‘‘(C) Sex. 

23 ‘‘(D) Race. 

24 ‘‘(E) Ethnicity. 


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1 ‘‘(2) The Attorney General, in consultation with the 

2 Consumer Bankruptcy Ombuds of the Bureau of Con3 sumer Financial Protection and the Director of the Ad4 ministrative Office of the United States Courts (referred 

5 to in this section as the ‘Director’), shall prescribe a 

6 standard form for the collection of the information de7 scribed in paragraph (1). 

8 ‘‘(3) Any information collected, stored, received, or 

9 published under paragraph (1) shall— 

10 ‘‘(A) be so collected, stored, received, or pub11 lished in a manner that protects the privacy of indi12 viduals whose information is included in such data; 

13 ‘‘(B) be de-identified or anonymized in a man14 ner that protects the identity of all individuals whose 

15 information is included in such data; and 

16 ‘‘(C) be limited in use for the purpose of identi17 fying and addressing disparities in the bankruptcy 

18 system and be protected from all other internal use 

19 by any entity that collects, stores, or receives the in20 formation and from any other inappropriate uses. 

21 ‘‘(4) Any information collected under paragraph 

22 (1)— 

23 ‘‘(A) shall not be part of the public record of 

24 the bankruptcy case; and 


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1 ‘‘(B) shall be maintained in a nonpublic record 

2 by the court to fulfill its duties under subsection (b). 

3 ‘‘(b)(1) The clerk of the district court, or the clerk 

4 of the bankruptcy court if one is certified pursuant to sec5 tion 156(b), shall collect information regarding individual 

6 debtors seeking relief under chapter 10 of title 11. 

7 ‘‘(2) The information collected pursuant to paragraph 

8 (1) shall be in a standardized format prescribed by the 

9 Director so that the Director may fulfill the duties in sub10 section (c). 

11 ‘‘(c)(1) In this subsection, the term ‘qualified re12 searcher’ means a person who has undertaken to protect 

13 the confidentiality and privacy of the information in the 

14 database in a protocol that has been reviewed and ap15 proved by an institutional review board that is estab16 lished— 

17 ‘‘(A) to protect the rights and welfare of human 

18 subjects participating in scientific research; and 

19 ‘‘(B) in accordance with the requirements es20 tablished under part 46 of title 45, Code of Federal 

21 Regulations, or any successor thereto. 

22 ‘‘(2) The Director shall— 

23 ‘‘(A) compile statistical tables from the infor24 mation described in subsections (a)(1) and (b) and 

25 make the tables available to the public; 


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1 ‘‘(B) not later than July 1, 2026, and annually 

2 thereafter, prepare and submit to Congress a report 

3 concerning the information collected under sub4 sections (a) and (b) that contains an analysis of the 

5 information; and 

6 ‘‘(C) not later than December 31, 2026, and 

7 each calendar year thereafter, make available to— 

8 ‘‘(i) qualified researchers an electronic 

9 database containing the information collected 

10 under subsections (a) and (b) or used to create 

11 the compilation required under this subsection; 

12 and 

13 ‘‘(ii) the public an electronic database con14 taining the information collected under sub15 section (b) or used to create the compilation re16 quired by this subsection. 

17 ‘‘(d) The compilation required under subsection (c) 

18 shall— 

19 ‘‘(1) be presented in the aggregate and for each 

20 judicial district and division; and 

21 ‘‘(2) include information concerning— 

22 ‘‘(A) the total assets and total liabilities of 

23 the debtors and in each category of assets and 

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1 scribed pursuant to section 2075 and filed by 

2 debtors; 

3 ‘‘(B) the current monthly income of debt4 ors as reported on the schedules and statements 

5 that each debtor files under section 521 of title 

6 11; 

7 ‘‘(C) the total compensation the debtors 

8 promised to pay to an attorney, the amount of 

9 the compensation paid to an attorney before fil10 ing, and the total number of cases in which a 

11 wage garnishment order or electronic funds 

12 transfer order was entered to pay an attorney; 

13 ‘‘(D) the total number of dependents of the 

14 debtors and the total number of dependents of 

15 the debtors under the age of 18; 

16 ‘‘(E) whether the debtors had an owner17 ship interest in real estate that served as the 

18 debtors’ principal residence; 

19 ‘‘(F) whether the debtors had an owner20 ship interest in real estate other than that 

21 served as the debtors’ principal residence; 

22 ‘‘(G) the minimum payment obligation of 

23 the debtors as determined under section 

24 101(54) of title 11; 


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1 ‘‘(H) whether the debtors filed a repay2 ment plan, a residence plan, or a property plan; 

3 and 

4 ‘‘(I) the average period of time between the 

5 date of the filing of the petition and the closing 

6 of the case for cases closed during the reporting 

7 period. 

8 ‘‘(e) The Director may add other information to the 

9 compilations and databases required by this section that 

10 improve the understanding of the causes of bankruptcy 

11 and the functioning of the bankruptcy system.’’. 

12 SEC. 106. ELECTRONIC SIGNATURES. 

13 (a) ELECTRONIC SIGNATURE DEFINED.—In this sec14 tion, the term ‘‘electronic signature’’ has the meaning 

15 given the term in section 106 of the Electronic Signatures 

16 in Global and National Commerce Act (15 U.S.C. 7006). 

17 (b) ELECTRONIC SIGNATURES ALLOWED .—A signa18 ture required for a filing in a case under title 11, United 

19 States Code, may not be denied legal effect, validity, or 

20 enforceability solely because it is an electronic signature. 

21 (c) ORIGINAL ELECTRONIC SIGNATURES AL22 LOWED.—In a case under title 11, United States Code, 

23 an original signature may be an electronic signature. 


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1 SEC. 107. JUDICIAL EDUCATION. 

2 The Director of the Federal Judicial Center, in con3 sultation with the Director of the Executive Office for 

4 United States Trustees, shall develop materials and con5 duct training that may be useful to courts in implementing 

6 this Act and the amendments made by this Act. 

7 SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS. 

8 (a) BANKRUPTCY ABUSE AND CONSUMER PROTEC9 TION ACT OF 2005.— 

10 (1) AUDIT PROCEDURES.—Section 603 of the 

11 Bankruptcy Abuse Prevention and Consumer Pro12 tection Act of 2005 (28 U.S.C. 586 note) is amend13 ed— 

14 (A) by striking subsections (a) and (b); 

15 and 

16 (B) by redesignating subsections (c), (d), 

17 and (e) as subsections (a), (b), and (c), respec18 tively. 

19 (2) JUDICIAL EDUCATION.—Section 1226 of the 

20 Bankruptcy Abuse Prevention and Consumer Pro21 tection Act of 2005 (11 U.S.C. 101 note) is re22 pealed. 

23 (3) TAX DOCUMENTS.—Section 1228(b) of the 

24 Bankruptcy Abuse Prevention and Consumer Pro25 tection Act of 2005 (11 U.S.C. 521 note) is re26 pealed. 


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1 (b) CONSOLIDATED FARM AND RURAL DEVELOP2 MENT ACT.—Section 373(b)(2)(A)(ii) of the Consolidated 

3 Farm and Rural Development Act (7 U.S.C. 

4 2008h(b)(2)(A)(ii)) is amended by striking ‘‘chapters 11, 

5 12, or 13’’ and inserting ‘‘chapter 10, 11, or 12’’. 

6 (c) CONSUMER CREDIT PROTECTION ACT.—Section 

7 303(b)(1)(B) of the Consumer Credit Protection Act (15 

8 U.S.C. 1673(b)(1)(B)) is amended by striking ‘‘any order 

9 of any court of bankruptcy under chapter XIII of the 

10 Bankruptcy Act.’’ and inserting ‘‘any order of any court 

11 of the United States having jurisdiction over cases under 

12 title 11; and’’. 

13 (d) HIGHER EDUCATION ACT OF 1965.—Section 

14 437(b) of the Higher Education Act of 1965 (20 U.S.C. 

15 1087(b)) is amended— 

16 (1) in paragraph (1), by striking ‘‘chapter 12 or 

17 13’’ and inserting ‘‘chapter 10 or 12’’; 

18 (2) in paragraph (2), by striking ‘‘chapter 7 or 

19 11’’ and inserting ‘‘chapter 10, 11, or 12’’; and 

20 (3) in paragraph (3), by striking ‘‘chapter 7 or 

21 11’’ and inserting ‘‘chapter 10, 11, or 12’’. 

22 (e) HOUSING AND COMMUNITY DEVELOPMENT

23 AMENDMENTS OF 1978.—Section 201(l)(2)(C) of the 

24 Housing and Community Development Amendments of 

25 1978 (12 U.S.C. 1715z–1a(l)(2)(C)) is amended by strikVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00169 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 ing ‘‘727, 1141, or 1328(b)’’ and inserting ‘‘1031, 1141, 

2 or 1192’’. 

3 (f) INTERNAL REVENUE CODE OF 1986.—The Inter4 nal Revenue Code of 1986 is amended— 

5 (1) in section 1398— 

6 (A) in subsection (a), by striking ‘‘chapter 

7 7 (relating to liquidation) or chapter 11 (relat8 ing to reorganizations)’’ and inserting ‘‘chapter 

9 10, chapter 11, or chapter 12’’; 

10 (B) in subsection (b)(1), by striking ‘‘chap11 ter 7 or 11’’ and inserting ‘‘chapter 7 or 10’’; 

12 and 

13 (C) in subsection (e)(1)— 

14 (i) by striking the second sentence; 

15 (ii) by striking ‘‘The gross income’’ 

16 and inserting the following: 

17 ‘‘(A) GROSS INCOME.—Subject to subpara18 graph (B), the gross income’’; and 

19 (iii) by adding at the end the fol20 lowing: 

21 ‘‘(B) LIMITATION.—Subparagraph (A) 

22 shall not apply to any amount received or ac23 crued by the debtor before the commencement 

24 date. 


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1 ‘‘(C) INCOME AFTER COMMENCEMENT

2 DATE.—In a proceeding under chapter 10 of 

3 title 11, United States Code, and for purposes 

4 of subparagraph (A), the estate shall have no 

5 interest in any income earned by the debtor 

6 after the commencement date, including income 

7 used to satisfy the minimum payment obligation 

8 (as defined in section 101 of title 11, United 

9 States Code). 

10 ‘‘(D) COMMENCEMENT DATE DEFINED.— 

11 In this subsection, the term ‘commencement 

12 date’ has the meaning given the term in sub13 section (d)(3).’’; 

14 (2) in section 6327— 

15 (A) by striking paragraph (4); and 

16 (B) by redesignating paragraph (5) and 

17 (6) as paragraphs (4) and (5), respectively; and 

18 (3) in section 7437— 

19 (A) by striking paragraph (4); and 

20 (B) by redesignating paragraphs (5), (6), 

21 (7), (8), and (9) as paragraphs (4), (5), (6), 

22 (7), and (8), respectively. 

23 (g) TITLE 28.—Title 28, United States Code, is 

24 amended— 

25 (1) in section 157(b)(2)— 


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1 (A) in subparagraph (B), by striking 

2 ‘‘chapter 11, 12, or 13’’ and inserting ‘‘chapter 

3 10, 11, or 12’’; 

4 (B) in subparagraph (O), by striking 

5 ‘‘and’’ at the end; 

6 (C) in subparagraph (P), by striking the 

7 period at the end and inserting ‘‘; and’’; and 

8 (D) by adding at the end the following: 

9 ‘‘(Q) proceedings to enforce rights under 

10 sections 524 or 525 of title 11.’’; 

11 (2) in section 589b— 

12 (A) in subsection (a)(1), by striking ‘‘chap13 ters 7, 12, and 13’’ and inserting ‘‘chapters 7, 

14 10, and 12’’; and 

15 (B) in subsection (d)— 

16 (i) in the matter preceding paragraph 

17 (1), by striking ‘‘chapters 7, 12, and 13’’ 

18 and inserting ‘‘chapters 7, 10, and 12’’; 

19 (ii) in paragraph (5), by striking ‘‘, 

20 including for use under section 707(b), ac21 tual costs of administering cases under 

22 chapter 13 or chapter 11’’; and 

23 (iii) in the matter following paragraph 

24 (8), by striking ‘‘chapters 12 and 13’’ and 

25 inserting ‘‘chapters 10 and 12’’; and 


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1 (3) in section 3014(a)(1), by striking ‘‘section 

2 522(d)’’ and inserting ‘‘section 522(b)’’. 

3 (h) TITLE 38.—Section 3732(a)(2)(B) of title 38, 

4 United States Code, is amended by striking ‘‘1322(b)’’ 

5 and inserting ‘‘1022(b)’’. 

6 TITLE II—CONSUMER FINAN7 CIAL PROTECTION AMEND8 MENTS 

9 SEC. 201. AMENDMENTS TO THE CONSUMER FINANCIAL 

10 PROTECTION ACT OF 2010. 

11 (a) CONSUMER BANKRUPTCY OMBUDS.— 

12 (1) IN GENERAL.—The Consumer Financial 

13 Protection Act of 2010 (12 U.S.C. 5481 et seq.) is 

14 amended by inserting after section 1035 (12 U.S.C. 

15 5535) the following: 

16 ‘‘SEC. 1035A. CONSUMER BANKRUPTCY OMBUDS. 

17 ‘‘(a) ESTABLISHMENT.—The Director, in consulta18 tion with the Attorney General, shall designate a Con19 sumer Bankruptcy Ombuds (in this section referred to as 

20 the ‘Ombuds’) within the Bureau, to provide timely assist21 ance to individual debtors in bankruptcy. 

22 ‘‘(b) PUBLIC INFORMATION.—The Director and the 

23 Attorney General and the bankruptcy clerks appointed 

24 under section 156(b) of title 11, United States Code, shall 

25 disseminate information about the availability and funcVerDate Sep 11 2014 01:46 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00173 Fmt 6652 Sfmt 6201 E:\BILLS\S5577.IS S5577

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1 tions of the Ombuds to individual debtors in bankruptcy 

2 and consumer bankruptcy attorneys and consumer credit 

3 counseling agencies. 

4 ‘‘(c) FUNCTIONS OF OMBUDS.—The Ombuds des5 ignated under this subsection shall— 

6 ‘‘(1) in accordance with regulations of the Di7 rector, receive, review, and attempt to resolve infor8 mally complaints from individual debtors in bank9 ruptcy, including, as appropriate, attempts to resolve 

10 such complaints in collaboration with creditors, the 

11 United States Trustee Program of the Department 

12 of Justice, trustees in bankruptcy, the bankruptcy 

13 clerks appointed under section 156(b) of title 11, 

14 United States Code, and consumer privacy ombuds15 men and future claims representatives appointed in 

16 bankruptcy; 

17 ‘‘(2) not later than 90 days after the date of 

18 enactment of this section, establish a memorandum 

19 of understanding with the Executive Office of the 

20 United States Trustee Program, to ensure coordina21 tion in providing assistance to and serving individual 

22 debtors in bankruptcy seeking to resolve complaints 

23 related to their bankruptcy cases; 

24 ‘‘(3) compile and analyze data on consumer 

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1 vidual bankruptcy filings, the relationship between 

2 consumer bankruptcy filings and consumer financial 

3 products and services, and any disparities in the 

4 bankruptcy system, including any disparities based 

5 on the demographic categories described in section 

6 159(a)(1) of title 28, United States Code; 

7 ‘‘(4) compile and analyze data on complaints 

8 from individual debtors in bankruptcy; 

9 ‘‘(5) make recommendations to the Director 

10 and the Attorney General regarding the filing of 

11 amicus curiae briefs and making appearances in in12 dividual bankruptcy cases, particularly in the cases 

13 involving repeat patterns of creditor behavior; 

14 ‘‘(6) consult with the Director of the Adminis15 trative Office of the United States Courts regarding 

16 the duties of that officer under section 159 of title 

17 28, United States Code, regarding data collection 

18 and reporting; and 

19 ‘‘(7) make other appropriate recommendations 

20 to the Director, the Attorney General, the Com21 mittee on Banking, Housing, and Urban Affairs and 

22 the Committee on the Judiciary of the Senate and 

23 the Committee on Financial Services and the Com24 mittee on Judiciary of the House of Representatives. 

25 ‘‘(d) ANNUAL REPORTS.— 


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1 ‘‘(1) IN GENERAL.—The Ombuds shall prepare 

2 an annual report that describes the activities, and 

3 evaluates the effectiveness, of the Ombuds during 

4 the preceding year. 

5 ‘‘(2) SUBMISSION.—The report required under 

6 paragraph (1) shall be submitted on the same date 

7 annually to the Attorney General, the Committee on 

8 Banking, Housing, and Urban Affairs and the Com9 mittee on the Judiciary of the Senate and the Com10 mittee on Financial Services and the Committee on 

11 the Judiciary of the House of Representatives.’’. 

12 (2) TECHNICAL AMENDMENT.—The table of 

13 contents in section 1(b) of the Dodd-Frank Wall 

14 Street Reform and Consumer Protection Act (12 

15 U.S.C. 5301 note) is amended by inserting after the 

16 item relating to section 1035 the following new item: 

‘‘Sec. 1035A. Consumer Bankruptcy Ombuds.’’. 

17 (b) SUPERVISION OF HIGHER COST LENDERS.—Sec18 tion 1024(a)(1)(E) of the Consumer Financial Protection 

19 Act of 2010 (12 U.S.C. 5514(a)(1)(E)) is amended by 

20 striking ‘‘a payday loan’’ and inserting ‘‘a loan with an 

21 annual percentage rate of greater than 36 percent, as de22 termined under section 987(i)(4) of title 10, United States 

23 Code’’. 


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1 (c) VIOLATIONS OF DISCHARGE INJUNCTION.—Sec2 tion 1036(a) of the Consumer Financial Protection Act 

3 of 2010 (12 U.S.C. 5536(a)), is amended— 

4 (1) in paragraph (2)(C), by striking ‘‘or’’ at the 

5 end; 

6 (2) in paragraph (3), by striking the period at 

7 the end and inserting ‘‘; or’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(4) to violate section 524(a) of title 11, United 

10 States Code, in a case involving an individual debt11 or.’’. 

12 (d) AUTHORITY TO EXERCISE SUPERVISION AND

13 ENFORCEMENT AUTHORITY REGARDING BANKRUPTCY

14 LAW.— 

15 (1) DEFINITIONS.—Section 1002(12) of the 

16 Consumer Financial Protection Act of 2010 (12 

17 U.S.C. 5481(12)) is amended— 

18 (A) in subparagraph (Q), by striking 

19 ‘‘and’’ and the end; 

20 (B) in subparagraph (R), by striking the 

21 period at the end and inserting ‘‘; and’’; and 

22 (C) by adding at the end the following: 

23 ‘‘(S) title 11, United States Code, with re24 spect to individual debtors.’’. 


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1 (2) EXCEPTION FROM RULEMAKING.—Section 

2 1022 of the Consumer Financial Protection Act of 

3 2010 (12 U.S.C. 5512) is amended— 

4 (A) by inserting ‘‘(except title 11, United 

5 States Code)’’ after ‘‘Federal consumer finan6 cial law’’ each place the term appears; and 

7 (B) by inserting ‘‘(except title 11, United 

8 States Code)’’ after ‘‘Federal consumer finan9 cial laws’’ each place the term appears. 

10 (e) AVERAGE PRIME OFFER RATE FOR MOTOR VE11 HICLE FINANCINGS.— 

12 (1) IN GENERAL.—Not later than 1 year after 

13 the date of enactment of this Act, and not less fre14 quently than monthly thereafter, the Bureau of Con15 sumer Financial Protection shall publish on the 

16 website of the Bureau of Consumer Financial Pro17 tection the following information with respect to 

18 motor vehicle financing: 

19 (A) The current (as of the date of publica20 tion) average prime offer rate for that type of 

21 financing, including the provision of that fi22 nancing through retail installment sales con23 tracts. 

24 (B) The most common duration of that 

25 type of financing. 


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1 (C) Rate structures for financings for the 

2 purchase of new and used light motor vehicles 

3 that are used primarily for personal, family, or 

4 household use. 

5 (2) DATA COLLECTION.—In carrying out para6 graph (1), the Bureau of Consumer Financial Pro7 tection may engage in the collection of information 

8 without regard to chapter 35 of title 44, United 

9 States Code. 

10 SEC. 202. AMENDMENTS TO THE TRUTH IN LENDING ACT. 

11 Section 130 of the Truth in Lending Act (15 U.S.C. 

12 1640) is amended— 

13 (1) in subsection (a)(2)— 

14 (A) in subparagraph (A)— 

15 (i) in clause (ii)— 

16 (I) by striking ‘‘$200’’ and in17 serting ‘‘$1,600’’; and 

18 (II) by striking ‘‘$2,000’’ and in19 serting ‘‘$16,000’’; 

20 (ii) in clause (iii)— 

21 (I) by striking ‘‘$500’’ and in22 serting ‘‘$4,000’’; and 

23 (II) by striking ‘‘$5,000’’ and in24 serting ‘‘$40,000’’; and 

25 (iii) in clause (vi)— 


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1 (I) by striking ‘‘$400’’ and in2 serting ‘‘$3,200’’; and 

3 (II) by striking ‘‘$4,000’’ and in4 serting ‘‘$32,000’’; and 

5 (B) in subparagraph (B), by striking ‘‘less6 er of $1,000,000 or 1’’ and inserting ‘‘greater 

7 of $8,000,000 or 5’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(m) ADJUSTMENTS.—On April 1, 2026, and each 

10 April 1 thereafter, each dollar amount in effect under sub11 section (a) on the day before such April 1 shall be ad12 justed— 

13 ‘‘(1) to reflect the change in the Consumer 

14 Price Index for All Urban Consumers, published by 

15 the Department of Labor, for the most recent period 

16 ending immediately before January 1 preceding such 

17 April 1; and 

18 ‘‘(2) to round to the nearest $25 the dollar 

19 amount that represents the change described in 

20 paragraph (1).’’. 

21 SEC. 203. AMENDMENTS TO THE FAIR CREDIT REPORTING 

22 ACT. 

23 The Fair Credit Reporting Act (15 U.S.C. 1681 et 

24 seq.) is amended— 


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1 (1) in section 605(a) (15 U.S.C. 1681c(a)), by 

2 striking paragraph (1) and inserting the following: 

3 ‘‘(1) Cases under title 11, United States Code, 

4 that, from the date of entry of the order for relief, 

5 antedate the report by more than 7 years.’’; and 

6 (2) in section 616 (15 U.S.C. 1681n)— 

7 (A) in subsection (a)(1)— 

8 (i) in subparagraph (A)— 

9 (I) by striking ‘‘$100’’ and in10 serting ‘‘$700’’; and 

11 (II) by striking ‘‘$1,000’’ and in12 serting ‘‘$7,000’’; and 

13 (ii) in subparagraph (B), by striking 

14 ‘‘$1,000’’ and inserting ‘‘$7,000’’; 

15 (B) in subsection (b), by striking ‘‘$1,000’’ 

16 and inserting ‘‘$7,000’’; and 

17 (C) by adding at the end the following: 

18 ‘‘(e) ADJUSTMENT.—On April 1, 2026, and each 

19 April 1 thereafter, each dollar amount in effect under sub20 sections (a) and (b) on the day before such April 1 shall 

21 be adjusted— 

22 ‘‘(1) to reflect the change in the Consumer 

23 Price Index for All Urban Consumers, published by 

24 the Department of Labor, for the most recent period 


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1 ending immediately before January 1 preceding such 

2 April 1; and 

3 ‘‘(2) to round to the nearest $25 the dollar 

4 amount that represents the change described in 

5 paragraph (1).’’. 

6 SEC. 204. AMENDMENTS TO THE EQUAL CREDIT OPPOR7 TUNITY ACT. 

8 The Equal Credit Opportunity Act (15 U.S.C. 1691 

9 et seq.) is amended— 

10 (1) in section 701(a)(1) (15 U.S.C. 

11 1691(a)(1)), by inserting ‘‘sexual orientation, gender 

12 identity, familial status,’’ after ‘‘status,’’; and 

13 (2) in section 706 (15 U.S.C. 1691e)— 

14 (A) in subsection (b), by striking— 

15 (i) ‘‘$10,000’’ and inserting 

16 ‘‘$60,000’’; and 

17 (ii) ‘‘500,000 or 1’’ and inserting 

18 ‘‘$5,000,000 or 5’’; and 

19 (B) by adding at the end the following: 

20 ‘‘(l) ADJUSTMENT.—On April 1, 2026, and each 

21 April 1 thereafter, each dollar amount in effect under sub22 section (b) on the day before such April 1 shall be ad23 justed— 

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. 205. AMENDMENTS TO THE FAIR DEBT COLLECTION 

8 PRACTICES ACT. 

9 The Fair Debt Collection Practices Act (15 U.S.C. 

10 1692 et seq.) is amended— 

11 (1) in section 803(6) (15 U.S.C. 1692a(6)), in 

12 the third sentence, by inserting ‘‘against personal 

13 property’’ before the period at the end; 

14 (2) in section 808 (15 U.S.C. 1692f), by adding 

15 at the end the following: 

16 ‘‘(9) Filing a lawsuit or a claim in a bankruptcy 

17 case that is based on a debt without an actual, rea18 sonable, good-faith belief that the applicable statute 

19 of limitations for enforcement of that debt has not 

20 expired at the time of filing. 

21 ‘‘(10) Any act to knowingly collect or attempt 

22 to collect a debt that has been discharged in bank23 ruptcy except acceptance of a purely voluntary pay24 ment of the debtor without encouragement or coer25 cion by the debt collector.’’; and 


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1 (3) in section 813 (15 U.S.C. 1692k)— 

2 (A) in subsection (a)(2)— 

3 (i) in subparagraph (A), by striking 

4 ‘‘$1,000’’ and inserting ‘‘$5,000’’; and 

5 (ii) in subparagraph (B), by striking 

6 ‘‘lesser of $500,000 or 1’’ and inserting 

7 ‘‘greater of $5,000,000 or 5’’; and 

8 (B) by adding at the end the following: 

9 ‘‘(f) On April 1, 2026, and each April 1 thereafter, 

10 each dollar amount in effect under paragraph (a)(2) on 

11 the day before such April 1 shall be adjusted— 

12 ‘‘(1) to reflect the change in the Consumer 

13 Price Index for All Urban Consumers, published by 

14 the Department of Labor, for the most recent period 

15 ending immediately before January 1 preceding such 

16 April 1; and 

17 ‘‘(2) to round to the nearest $25 the dollar 

18 amount that represents the change described in 

19 paragraph (1).’’. 

20 SEC. 206. AMENDMENTS TO THE ELECTRONIC FUND 

21 TRANSFERS ACT. 

22 Section 916 of the Electronic Fund Transfers Act 

23 (15 U.S.C. 1693m) is amended— 

24 (1) in subsection (a)(2)— 

25 (A) in subparagraph (A)— 


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1 (i) by striking ‘‘$100’’ and inserting 

2 ‘‘$500’’; and 

3 (ii) by striking ‘‘$1,000’’ and insert4 ing ‘‘$5,000’’; and 

5 (B) in subparagraph (B)(ii), by striking 

6 ‘‘lesser of $500,000 or 1’’ and inserting ‘‘great7 er of $5,000,000 or 5’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(h) On April 1, 2026, and each April 1 thereafter, 

10 each dollar amount in effect under paragraph (a)(2) on 

11 the day before such April 1 shall be adjusted— 

12 ‘‘(1) to reflect the change in the Consumer 

13 Price Index for All Urban Consumers, published by 

14 the Department of Labor, for the most recent period 

15 ending immediately before January 1 preceding such 

16 April 1; and 

17 ‘‘(2) to round to the nearest $25 the dollar 

18 amount that represents the change described in 

19 paragraph (1).’’. 

20 TITLE III—BANKRUPTCY RULES 

21 SEC. 301. RULES ENABLING ACT AMENDMENTS. 

22 (a) IN GENERAL.—Notwithstanding the third undes23 ignated paragraph of section 2075 of title 28, United 

24 States Code, the Supreme Court of the United States may 

25 prescribe by general rules, the forms of process, writs, 


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1 pleadings, and motions, and the practice and procedure 

2 in cases under title 11, United States Code, as may be 

3 necessary to carry out this Act before the effective date 

4 of this Act. 

5 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

6 Section 2075 of title 28, United States Code, is amended 

7 by striking the fourth undesignated paragraph. 

8 (c) PLAIN WRITING.—In drafting the form required 

9 by section 1031(d) of title 11, as added by this Act, the 

10 Judicial Conference of the United States shall comply with 

11 the requirements under the Plain Writing Act of 2010 (5 

12 U.S.C. 301 note). 

13 SEC. 302. BANKRUPTCY RULES AMENDMENTS. 

14 Rule 7004 of the Federal Rules of Bankruptcy Proce15 dure is amended by striking subdivision (h). 

16 SEC. 303. SENSE OF CONGRESS. 

17 It is the sense of Congress that the Judicial Con18 ference of the United States should— 

19 (1) promulgate a simplified version of the 

20 schedule of current income and current expenditures 

21 required under section 521(a)(1)(B)(ii) of title 11, 

22 United States Code for debtors who, by virtue of 

23 section 521(c) of title 11, United States Code, are 

24 not subject to the documentation requirements of 

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1 quired by section 521(a)(1)(B)(v) of title 11, United 

2 States Code; and 

3 (2) draft rules that provide that, with respect to 

4 a case in which the debtor is an individual, the 

5 rights under section 542 of title 11, United States 

6 Code, may be enforced by motion. 

7 TITLE IV—FUNDING THE 

8 BANKRUPTCY SYSTEM 

9 SEC. 401. BANKRUPTCY FEES. 

10 Section 1930 of title 28, United States Code, is 

11 amended— 

12 (1) in subsection (a)— 

13 (A) in paragraph (1)(B), by striking 

14 ‘‘chapter 13 of title 11, $235’’ and inserting 

15 ‘‘chapter 10 of title 11, $250’’; and 

16 (B) in the undesignated matter following 

17 paragraph (7), by striking ‘‘chapter 7, or 13 of 

18 title 11’’ and inserting ‘‘chapter 7 or 10 of title 

19 11’’; 

20 (2) in subsection (b), by striking the period at 

21 the end and inserting ‘‘, which may not include any 

22 additional fees for the filing of a petition under 

23 chapter 10 of title 11.’’; and 

24 (3) in subsection (f)— 


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1 (A) by striking paragraph (1) and insert2 ing the following: 

3 ‘‘(1)(A) Under the procedures prescribed by the Judi4 cial Conference of the United States, the district court or 

5 the bankruptcy court may waive all fees payable to the 

6 clerk of the court in a case under chapter 10 of title 11 

7 for an individual if the court determines that such indi8 vidual— 

9 ‘‘(i) has an income that is less than 150 percent 

10 of the official poverty line (as defined in section 673 

11 of the Omnibus Budget Reconciliation Act of 1981 

12 (42 U.S.C. 9902)) applicable to a family of the size 

13 of the family of the individual; and 

14 ‘‘(ii) is unable to pay those fees in installments. 

15 ‘‘(B) For the purpose of subparagraph (A)(ii), the 

16 court shall conclusively presume that the individual is un17 able to pay those fees in installments if the court deter18 mines that the individual has an income that is less than 

19 the official poverty line (as defined in section 673 of the 

20 Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 

21 9902)) applicable to a family of the size of the family of 

22 the individual.’’; and 

23 (B) in paragraph (2), by striking ‘‘sub24 sections (b) and (c)’’ and inserting ‘‘subsections 

25 (c) and (d)’’. 


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1 SEC. 402. TRUSTEE COMPENSATION. 

2 (a) AMENDMENTS.—Section 586 of title 28, United 

3 States Code, is amended— 

4 (1) in subsection (a)— 

5 (A) in paragraph (3)— 

6 (i) in the matter preceding subpara7 graph (A), by striking ‘‘chapter 7, 11 (in8 cluding subchapter V of chapter 11), 12, 

9 13, or 15’’ and inserting ‘‘chapter 7, 10, 

10 11 (including subchapter V of chapter 11), 

11 12, or 15’’; and 

12 (ii) in subparagraph (C)— 

13 (I) by striking ‘‘chapters 12 and 

14 13 of title 11’’ and inserting ‘‘chap15 ters 10 and 12 of title 11’’; and 

16 (II) by striking ‘‘sections 1224, 

17 1229, 1324, and 1329’’ and inserting 

18 ‘‘sections 1024, 1029, 1224, and 

19 1229’’; 

20 (B) by striking paragraph (6); and 

21 (C) by redesignating paragraphs (7) and 

22 (8) as paragraphs (6) and (7), respectively; 

23 (2) by amending subsection (b) to read as fol24 lows: 

25 ‘‘(b) If the number of cases under chapter 10 or 12 

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1 menced in a particular region so warrants, the United 

2 States trustee for such region may, subject to the approval 

3 of the Attorney General, appoint 1 or more individuals to 

4 serve as standing trustee, or designate 1 or more assistant 

5 United States trustees to serve in cases under such chap6 ter. The United States trustee may also establish, main7 tain, and supervise a panel of private trustees that are 

8 eligible and available to serve as trustees in cases under 

9 chapter 10 of title 11. The United States trustee for such 

10 region shall supervise the performance of the duties of any 

11 such individual appointed under this subsection.’’; 

12 (3) in subsection (d)(1), by striking ‘‘under 

13 subchapter V of chapter 11 or chapter 12 or 13 of 

14 title 11’’ each place the term appears and inserting 

15 ‘‘chapter 10 or 12 of title 11 or subchapter V of 

16 chapter 11 of title 11’’; 

17 (4) in subsection (e)— 

18 (A) in paragraph (1), in the matter pre19 ceding subparagraph (A), by striking ‘‘under 

20 subchapter V of chapter 11 or chapter 12 or 13 

21 of title 11’’ and inserting ‘‘chapter 12 of title 

22 11 or subchapter V of chapter 11’’; 

23 (B) in paragraph (2)— 

24 (i) in the matter preceding subpara25 graph (A), by striking ‘‘under subchapter 


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1 V of chapter 11 or chapter 12 or 13 of 

2 title 11’’ and inserting ‘‘chapter 12 of title 

3 11 or subchapter V of chapter 11 of title 

4 11’’; 

5 (ii) in subparagraph (A), by striking 

6 ‘‘under subchapter V of chapter 11 or 

7 chapter 12 or 13 of title 11’’ and inserting 

8 ‘‘chapter 12 of title 11 or subchapter V of 

9 chapter 11 of title 11’’; 

10 (iii) in subparagraph (B)(ii), by strik11 ing ‘‘subparagraph (d)(1)(B)’’ and insert12 ing ‘‘paragraph (1)(B)’’; 

13 (C) by redesignating paragraphs (3), (4), 

14 and (5) as paragraphs (5), (6), and (7), respec15 tively; and 

16 (D) by inserting after paragraph (2) the 

17 following: 

18 ‘‘(3) The Attorney General, after consultation 

19 with a United States trustee that has appointed an 

20 individual under subsection (b) of this section to 

21 serve as standing trustee in cases under chapter 10 

22 of title 11, shall fix— 

23 ‘‘(A) a maximum annual compensation for 

24 such individual consisting of— 


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1 ‘‘(i) an amount not to exceed the 1.25 

2 times the highest annual rate of basic pay 

3 in effect for a position at level IV of the 

4 Executive Schedule under section 5315 of 

5 title 5; and 

6 ‘‘(ii) the cash value of employment 

7 benefits comparable to the employment 

8 benefits provided by the United States to 

9 individuals who are employed by the 

10 United States at the same rate of basic 

11 pay to perform similar services during the 

12 same period of time; and 

13 ‘‘(B) a percentage fee not to exceed 10 

14 percent. 

15 ‘‘(4) An individual serving as standing trustee 

16 in cases under chapter 10 of title 11 shall collect 

17 such percentage fee from all payments received by 

18 such individual (including the value of property ten19 dered to such individual) under plans in such cases 

20 for which such individual serves as standing trustee. 

21 Such individual shall pay to the United States trust22 ee, and the United States trustee shall deposit in the 

23 United States Trustee System Fund— 

24 ‘‘(A) any amount by which the actual com25 pensation of such individual exceeds 5 percent 


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1 upon all payments received under repayment 

2 plans in such cases for which such individual 

3 serves as standing trustee; and 

4 ‘‘(B) any amount by which the percentage 

5 fee for all such cases exceeds— 

6 ‘‘(i) such individual’s actual com7 pensation for such cases, as adjusted under 

8 subparagraph (A) of paragraph (3); plus 

9 ‘‘(ii) the actual, necessary expenses in10 curred by such individual as standing 

11 trustee in such cases. Subject to the ap12 proval of the Attorney General, any or all 

13 of the interest earned from the deposit of 

14 payments under repayment plans by such 

15 individual may be utilized to pay actual, 

16 necessary expenses without regard to the 

17 percentage limitation contained in para18 graph (3)(B) of this subsection.’’; and 

19 (5) by striking subsection (f). 

20 (b) REGULATIONS.—Not later than 1 year after the 

21 date of enactment of this Act, the Attorney General shall 

22 promulgate regulations to implement a process for sub23 stituting a trustee under section 1001 of title 11, United 

24 States Code, when necessary. 


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1 TITLE V—MISCELLANEOUS 

2 SEC. 501. EFFECTIVE DATE. 

3 The provisions of this Act and the amendments made 

4 by this Act shall take effect on the date that is 1 year 

5 after the date of enactment of this Act. 

6 SEC. 502. TRANSITION. 

7 A case commenced under title 11, United States Code 

8 before the date that is 1 year after the date of enactment 

9 of this Act, and all matters and proceedings in or relating 

10 to any such case, shall be conducted and determined as 

11 if this Act had not been enacted, and the substantive 

12 rights of parties in connection with any such bankruptcy 

13 case, matter, or proceeding shall continue to be governed 

14 by the law applicable to such case, matter, or proceeding 

15 as if the Act had not been enacted. 

16 SEC. 503. SEVERABILITY. 

17 If any provision of this Act, an amendment made by 

18 this Act, or the application of such provision or amend19 ment to any person or circumstance is held to be invalid 

20 or unconstitutional, the remainder of this Act, the amend21 ments made by this Act, and the application of such provi22 sions to any person or circumstance shall not be affected 

23 thereby. 

Æ 


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