II 

109TH CONGRESS 

1ST SESSION S. 1787 

To provide bankruptcy relief for victims of natural disasters, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 28, 2005 

Mr. VITTER (for himself, Mr. GRASSLEY, Mr. CORNYN, and Mr. DEWINE) introduced the following bill; which was read twice and referred to the Committee on the Judiciary 

A BILL 

To provide bankruptcy relief for victims of natural disasters, 

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 ‘‘Relief to Victims of 

5 Hurricane Katrina and Other Natural Disasters Act’’. 

6 SEC. 2. DEFINITIONS; WHO MAY BE A DEBTOR. 

7 (a) CURRENT MONTHLY INCOME.—Section 

8 101(10A)(B) of title 11, United States Code, is amend9 ed— 
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1 (1) by striking ‘‘and payments’’ and inserting 

2 ‘‘payments’’; and 

3 (2) by inserting before the period at the end the 

4 following: ‘‘, and payments to victims of a natural 

5 disaster by a governmental unit or by a qualified re6 ligious or charitable entity or organization, as de7 fined in section 548(d)(4), which were made solely 

8 on account of their status as victims of such natural 

9 disaster’’. 

10 (b) NATURAL DISASTER; NATURAL DISASTER

11 ZONE.—Section 101 of title 11, United States Code, is 

12 amended— 

13 (1) by redesignating paragraphs (40A) and 

14 (40B) as paragraphs (40C) and (40D), respectively; 

15 and 

16 (2) by inserting after paragraph (40) the fol17 lowing: 

18 ‘‘(40A) The term ‘natural disaster’ means a 

19 major disaster, as defined in section 102 of the Rob20 ert T. Stafford Disaster Relief and Emergency As21 sistance Act. 

22 ‘‘(40B) The term ‘natural disaster zone’ means 

23 the geographical area included in the determination 

24 of a natural disaster.’’. 
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1 (c) VICTIM OF NATURAL DISASTER.—Section 101 of 

2 title 11, United States Code, is amended by adding at the 

3 end the following: 

4 ‘‘(56) The term ‘victim of a natural disaster’ 

5 means an individual whose financial condition is ma6 terially adversely affected due to— 

7 ‘‘(A) damage sustained to the principal 

8 residence of that person, where such residence 

9 is located in a natural disaster zone, as a result 

10 of a natural disaster; 

11 ‘‘(B) an inability to remain at the principal 

12 residence of that person, where such residence 

13 is located in a natural disaster zone, as a result 

14 of a natural disaster; or 

15 ‘‘(C) an inability to work at the principal 

16 place of employment of that person, where such 

17 place of employment is located in a natural dis18 aster zone, as a result of a natural disaster.’’. 

19 (d) WHO MAY BE A DEBTOR.—Section 109(h)(4) of 

20 title 11, United States Code, is amended by inserting 

21 ‘‘natural disaster,’’ after ‘‘disability,’’. 

22 SEC. 3. AMENDMENTS TO CHAPTER 5. 

23 Section 521 of title 11, United States Code, is 

24 amended by adding at the end the following: 
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1 ‘‘(k) The court, after notice and a hearing upon mo2 tion of the debtor, may extend any time period specified 

3 in this section as may be necessary, if the court finds 

4 that— 

5 ‘‘(1) the debtor is a victim of a natural disaster; 

6 and 

7 ‘‘(2) the status of the debtor as a victim of a 

8 natural disaster necessitates such extension of 

9 time.’’. 

10 SEC. 4. AMENDMENTS TO CHAPTER 7. 

11 (a) REASONABLE NECESSARY EXPENSES.—Section 

12 707(b)(2)(A)(ii) of title 11, United States Code, is amend13 ed by adding at the end the following: 

14 ‘‘(VI) In addition, the monthly expenses of the debtor 

15 may include the actual reasonably necessary expenses in16 curred as a result of being a victim of a natural disaster 

17 if the debtor provides documentation of such expenses, 

18 and a detailed explanation of why such expenses are rea19 sonable and necessary, and why such expenses are not ac20 counted for by the national standards, local standards, 

21 and other necessary expenses referred to in subclause 

22 (I).’’. 

23 (b) NATURAL DISASTER.—Section 707(b)(2)(B)(i) of 

24 title 11, United States Code, is amended by inserting ‘‘or 
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1 a natural disaster’’ after ‘‘such as a serious medical condi2 tion or a call or order to active duty in the Armed Forces’’. 

3 SEC. 5. AMENDMENTS TO CHAPTER 11. 

4 (a) CONVERSION OF CASE.—Section 1112(b) of title 

5 11, United States Code, is amended— 

6 (1) in paragraph (2)(B)(i), by inserting ‘‘, in7 cluding a natural disaster’’ before the semicolon; and 

8 (2) in paragraph (3), by inserting ‘‘(including a 

9 natural disaster)’’ after ‘‘circumstances’’. 

10 (b) WHO MAY FILE A PLAN.—Section 1121(e)(3) of 

11 title 11, United States Code, is amended— 

12 (1) in subparagraph (A), by inserting ‘‘(i)’’ 

13 after ‘‘(A)’’; 

14 (2) in subparagraph (C), by striking the period 

15 at the end and inserting ‘‘; or’’; 

16 (3) by redesignating subparagraphs (B) and 

17 (C) as clauses (ii) and (iii), respectively; and 

18 (4) by adding at the end the following: 

19 ‘‘(B) the debtor, after providing notice to 

20 parties in interest (including the United States 

21 trustee) demonstrates that the debtor is unable 

22 to meet the deadline because of a natural dis23 aster and a new deadline is imposed at the time 

24 the extension is granted and the order extend-
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1 ing the time is signed before the expiration of 

2 the existing deadline.’’. 

3 (c) EXTENSION OF TIME FOR SMALL BUSINESSES.— 

4 Chapter 11 of title 11, United States Code, is amended— 

5 (1) in the table of sections, by adding at the 

6 end the following: 

‘‘§ 1117. Extension of time for small businesses’’; 

7 and 

8 (2) in subchapter I, by adding at the end the 

9 following: 

10 ‘‘§ 1117. Extension of time for small businesses 

11 ‘‘In a small business case, the court after notice and 

12 a hearing may extend any deadline specified in this chap13 ter if the court finds that such extension is— 

14 ‘‘(1) necessary to protect the best interests of 

15 creditors and the estate; and 

16 ‘‘(2) warranted by a natural disaster.’’. 

17 SEC. 6. AMENDMENTS TO CHAPTER 13. 

18 (a) CONVERSION OR DISMISSAL.—Section 1307(e) of 

19 title 11, United States Code, is amended by adding at the 

20 end the following: 

21 ‘‘The court, after notice and a hearing on motion of the 

22 debtor, may extend any time period specified in this sub23 section as may be necessary, if— 

24 ‘‘(1) the debtor is a victim of a natural disaster; 
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1 ‘‘(2) the status of the debtor as a victim of a 

2 natural disaster necessitates such extension of time; 

3 and 

4 ‘‘(3) the debtor files an affidavit stating that 

5 such tax return was destroyed or lost as a result of 

6 such natural disaster, and that the debtor has re7 quested a copy of such tax return from the taxing 

8 authority.’’. 

9 (b) FILING OF PREPETITION TAX RETURNS.—Sec10 tion 1308 of title 11, United States Code, is amended by 

11 adding at the end the following: 

12 ‘‘(d) The court, after notice and a hearing on motion 

13 of the debtor, may extend any time period specified in this 

14 subsection as may be necessary, if— 

15 ‘‘(1) the debtor is a victim of a natural disaster; 

16 ‘‘(2) the status of the debtor as a victim of a 

17 natural disaster necessitates such extension of time; 

18 and 

19 ‘‘(3) the debtor files an affidavit stating that 

20 such tax return was destroyed or lost as a result of 

21 such natural disaster and that the debtor has re22 quested a copy of such tax return from the taxing 

23 authority.’’. 
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1 SEC. 7. VENUE IN CASE OF NATURAL DISASTER. 

2 Section 1408 of title 28, United States Code, is 

3 amended— 

4 (1) by striking ‘‘Except’’ and inserting the fol5 lowing: 

6 ‘‘(a) IN GENERAL.—Except’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(b) ALTERNATIVE VENUE IN CASE OF NATURAL

9 DISASTER.— 

10 ‘‘(1) IN GENERAL.—If an individual cannot file 

11 a case under title 11 in a district court described in 

12 subsection (a) because the individual is a victim of 

13 a natural disaster (as defined in section 101 of title 

14 11), then such case may be filed by such individual 

15 in the district court for the district in which the in16 dividual has resided during the 30-day period pre17 ceding the date of filing, upon providing the affidavit 

18 required under paragraph (2). 

19 ‘‘(2) AFFIDAVIT REQUIRED.—An individual de20 scribed in paragraph (1) shall provide to the court 

21 an affidavit stating that— 

22 ‘‘(A) such individual is a victim of a nat23 ural disaster (as defined in section 101 of title 

24 11); and 

25 ‘‘(B) a venue change is necessary because, 

26 due to the natural disaster, the individual is not 
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1 able to reside in the district in which that indi2 vidual would otherwise be required to commence 

3 the case under subsection (a).’’. 

4 SEC. 8. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 

5 (a) EFFECTIVE DATE.—This Act and the amend6 ments made by this Act shall take effect on October 18, 

7 2005. 

8 (b) APPLICATION OF AMENDMENTS.—The amend9 ments made by this Act shall apply only with respect to 

10 cases commenced under title 11, United States Code, after 

11 October 17, 2005. 

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