I 

109TH CONGRESS 

1ST SESSION H. R. 2201

To amend chapter 7 of title 11 of the United States Code, to exclude 

medically distress debtors from the application of the means test, to 

amend the Truth in Lending Act to require certain disclosures in connection with credit card applications and solicitations, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 5, 2005

Mr. RUPPERSBERGER introduced the following bill; which was referred to the 

Committee on the Judiciary, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, 

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To amend chapter 7 of title 11 of the United States Code, 

to exclude medically distress debtors from the application 

of the means test, to amend the Truth in Lending Act 

to require certain disclosures in connection with credit 

card applications and solicitations, 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,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Consumer Debt Pre3 vention and Education Act of 2005’’. 

4 SEC. 2. AMENDMENT TO TITLE 11 OF THE UNITED STATES 

5 CODE. 

6 (a) AMENDMENT.—Section 101(a)(2)(C) of the 

7 Bankruptcy Abuse Prevention and Consumer Protection 

8 Act of 2005 (Public Law 109–8) is amended by adding 

9 at the end of section 707(b) of title 11 of the United 

10 States Code, as added by such Act, the following: 

11 ‘‘(8)(A) No judge, United States trustee (or bank12 ruptcy administrator, if any), trustee, or other party in 

13 interest may file a motion under paragraph (2) if the debt14 or is a medically distressed debtor. 

15 ‘‘(B) In this paragraph, the term medically distressed 

16 debtor’ means a debtor who, in any consecutive 12-month 

17 period during the 3 years before the date of the filing of 

18 the petition—

19 ‘‘(i) had medical expenses for the debtor, a de20 pendent of the debtor, or a member of the debtor’s 

21 household that were not paid by any third party 

22 payor and were in excess of 25 percent of the debt23 or’s household income for such 12-month period; 

24 ‘‘(ii) was a member of a household in which 1 

25 or more members (including the debtor) lost all or 

26 substantially all of the member’s employment or 
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1 business income for 4 or more weeks during such 

2 12-month period due to a medical problem of a 

3 member of the household or a dependent of the debt4 or; or 

5 ‘‘(iii) was a member of a household in which 1 

6 or more members (including the debtor) lost all or 

7 substantially all of the member’s alimony or support 

8 income for 4 or more weeks during such 12-month 

9 period due to a medical problem of a person obli10 gated to pay alimony or support.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) shall take effect on April 20, 2005. 

13 SEC. 3. DISCLOSURES IN CREDIT CARD SOLICITATIONS. 

14 Section 127(c) of the Truth in Lending Act (15 

15 U.S.C. 1637(c)) is amended—

16 (1) by redesignating paragraph (5) as para17 graph (6); and 

18 (2) by inserting after paragraph (4) the fol19 lowing new paragraph: 

20 ‘‘(5) BROCHURE.—

21 ‘‘(A) IN GENERAL.—In addition to the in22 formation required under paragraph (1), any 

23 application to open a credit card account for 

24 any person under an open end consumer credit 

25 plan, or a solicitation to open such an account 
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1 without requiring an application, that is mailed 

2 to consumers shall be accompanied by a bro3 chure that describes the following: 

4 ‘‘(i) An explanation of credit scores 

5 and the negative effects that low credit 

6 scores can have on the consumer. 

7 ‘‘(ii) An explanation of how being over 

8 a credit limit hurts the consumer. 

9 ‘‘(iii) An explanation of how long it 

10 would take paying off a credit balance by 

11 just making the minimum payments re12 quired and the effect that negative amorti13 zation may have in extending such time. 

14 ‘‘(B) BOARD.—The Board shall—

15 ‘‘(i) prescribe regulations that estab16 lish the minimum requirements for the 

17 brochure required under subparagraph (A); 

18 and 

19 ‘‘(ii) develop a model brochure that 

20 meets such requirements.’’.

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