II

105TH CONGRESS

1ST SESSION S. 1301

To amend title 11, United States Code, to provide for consumer bankruptcy

protection, and for other purposes.

IN THE SENATE OF THE UNITED STATES

OCTOBER 21, 1997

Mr. GRASSLEY (for himself and Mr. DURBIN) introduced the following bill;

which was read twice and referred to the Committee on the Judiciary

A BILL

To amend title 11, United States Code, to provide for

consumer bankruptcy protection, 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 1997’’.

6 TITLE I—NEEDS BASED

7 BANKRUPTCY

8 SEC. 101. CONVERSION.

9 Section 706(c) of title 11, United States Code, is

10 amended by striking ‘‘13’’.
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1 SEC. 102. DISMISSAL OR CONVERSION.

2 (a) IN GENERAL.—Section 707 of title 11, United

3 States Code, is amended—

4 (1) by striking the section heading and insert5 ing the following:

6 ‘‘§ 707. Dismissal of a case or conversion to a case

7 under chapter 13’’;

8 and

9 (2) in subsection (b)—

10 (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

11 (B) in paragraph (1), as redesignated by

12 subparagraph (A) of this paragraph—

13 (i) in the first sentence—

14 (I) by striking ‘‘, but not at the

15 request or suggestion of a party in in16 terest,’’;

17 (II) by inserting ‘‘, or, with the

18 debtor’s consent, convert such a case

19 to a case under chapter 13 of this

20 title,’’ after ‘‘consumer debts’’; and

21 (III) by striking ‘‘substantial

22 abuse’’ and inserting ‘‘abuse’’; and

23 (ii) by striking the last sentence and

24 inserting the following:
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1 ‘‘(2) In considering under paragraph (1) whether the

2 granting of relief would be an abuse of the provisions of

3 this chapter, the court shall consider whether—

4 ‘‘(A) under section 1325(b)(1) of this title, on

5 the basis of the current income of the debtor, the

6 debtor could pay an amount greater than or equal

7 to 20 percent of unsecured claims that are not con8 sidered to be priority claims (as determined under

9 subchapter I of chapter 5 of this title);

10 ‘‘(B) the debtor filed a petition for the relief in

11 bad faith; and

12 ‘‘(C)(i) the debtor made good-faith efforts, be13 fore the filing of the petition, to negotiate an alter14 native repayment schedule or to use alternative

15 methods of dispute resolution; and

16 ‘‘(ii) if the debtor made efforts described in

17 clause (i), the creditors of that debtor unreasonably

18 refused to engage in the alternative methods of dis19 pute resolution or to negotiate an alternative repay20 ment schedule.

21 ‘‘(3)(A) If a panel trustee appointed under section

22 586(a)(1) of title 28 brings a motion for dismissal or con23 version under this subsection and the court grants that

24 motion, the court shall order the counsel for the debtor,

25 if the debtor is represented by counsel, to reimburse the
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1 trustee for all reasonable costs in prosecuting the motion,

2 including reasonable attorneys’ fees.

3 ‘‘(B) If the court finds that the attorney for the debt4 or violated Rule 9011, at a minimum, the court shall

5 order—

6 ‘‘(i) the assessment of an appropriate civil pen7 alty against the counsel for the debtor; and

8 ‘‘(ii) the payment of the civil penalty to the

9 panel trustee or the United States trustee.

10 ‘‘(C) In the case of a petition referred to in subpara11 graph (B), the signature of an attorney shall constitute

12 a certificate that the attorney has—

13 ‘‘(i) performed a reasonable investigation into

14 the circumstances that gave rise to the petition; and

15 ‘‘(ii) determined that the petition—

16 ‘‘(I) is well grounded in fact; and

17 ‘‘(II) is warranted by existing law or a

18 good faith argument for the extension, modi19 fication, or reversal of existing law and does not

20 constitute an abuse under paragraph (1) of this

21 subsection.

22 ‘‘(4) The court shall award a debtor all reasonable

23 costs in contesting a motion brought by a party in interest

24 under this subsection (including reasonable attorneys’ fees
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1 and actual damages in an amount not less than $5,000)

2 if—

3 ‘‘(A) the court does not grant the motion; and

4 ‘‘(B) the court finds that—

5 ‘‘(i) the position of the party that brought

6 the motion was not substantially justified; or

7 ‘‘(ii) the party brought the motion solely

8 for the purpose of coercing a debtor into

9 waiving a right guaranteed to the debtor under

10 this title.’’.

11 (b) CLERICAL AMENDMENT.—The table of sections

12 at the beginning of chapter 7 of title 11, United States

13 Code, is amended by striking the item relating to section

14 707 and inserting the following:

‘‘707. Dismissal of a case or conversion to a case under chapter 13.’’.

15 TITLE II—ENHANCED PROCE16 DURAL PROTECTIONS FOR

17 CONSUMERS

18 SEC. 201. ALLOWANCE OF CLAIMS OR INTERESTS.

19 Section 502 of title 11, United States Code, is

20 amended by adding at the end the following:

21 ‘‘(k)(1) The court shall award the debtor reasonable

22 attorneys’ fees and costs if, after an objection is filed by

23 a debtor, the court—

24 ‘‘(A) disallows the claim; or
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1 ‘‘(B) reduces the claim by an amount greater

2 than 5 percent of the amount of the initial claim

3 filed by a party in interest.

4 ‘‘(2) If the court finds that the position of a claimant

5 under this section is not substantially justified, the court

6 shall, in addition to awarding a debtor reasonable attor7 neys’ fees and costs under paragraph (1), award additional

8 punitive damages in the amount of $5,000.’’.

9 SEC. 202. EXCEPTIONS TO DISCHARGE.

10 Section 523 of title 11, United States Code, is

11 amended to read as follows:

12 ‘‘(d)(1) If a creditor requests a determination of

13 dischargeability of a consumer debt under this section and

14 that debt is discharged, the court shall award the debtor

15 reasonable attorneys’ fees and costs.

16 ‘‘(2) In addition to making an award to a debtor

17 under paragraph (1), if the court finds that the position

18 of a creditor in a proceeding covered under this section

19 is not substantially justified, the court shall, in addition

20 to making an award of reasonable attorneys’ fees and

21 costs under paragraph (1), award an amount equal to the

22 greater of—

23 ‘‘(A)(i) the amount of actual damages; multi24 plied by

25 ‘‘(ii) 3; or
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1 ‘‘(B) $5,000.’’.

2 SEC. 203. EFFECT OF DISCHARGE.

3 Section 524 of title 11, United States Code, is

4 amended by adding at the end the following:

5 ‘‘(i) The failure of a creditor to credit payments re6 ceived under a plan confirmed under this title (including

7 a plan of reorganization confirmed under chapter 11 of

8 this title) in the manner required by the plan (including

9 crediting the amounts required under the plan) shall con10 stitute a violation of an injunction under subsection (a)(2).

11 ‘‘(j)(1) Except as provided in paragraph (2), a credi12 tor may not charge a debtor, or the account of a debtor,

13 for attorneys’ fees or costs for work performed in connec14 tion with a case brought under this title.

15 ‘‘(2) Any charge made by a creditor in violation of

16 this subsection shall constitute a violation of an injunction

17 under subsection (a)(2).

18 ‘‘(k) An individual who is injured by the failure of

19 a creditor to comply with the requirements for a reaffirma20 tion agreement under subsections (c) and (d), or by any

21 willful violation of the injunction under subsection (a)(2),

22 shall be entitled to recover—

23 ‘‘(1) the greater of—

24 ‘‘(A)(i) the amount of actual damages;

25 multiplied by
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1 ‘‘(ii) 3; or

2 ‘‘(B) $5,000; and

3 ‘‘(2) costs and attorneys’ fees.’’.

4 SEC. 204. AUTOMATIC STAY.

5 Section 362(h) of title 11, United States Code, is

6 amended to read as follows:

7 ‘‘(h)(1) An individual who is injured by any willful

8 violation of a stay provided in this section shall be entitled

9 to recover—

10 ‘‘(A) the greater of—

11 ‘‘(i)(I) the amount of actual damages; mul12 tiplied by

13 ‘‘(II) 3; or

14 ‘‘(ii) $5,000; and

15 ‘‘(B) costs and attorneys’ fees.

16 ‘‘(2) In addition to recovering actual damages, costs,

17 and attorneys’ fees under paragraph (1), an individual de18 scribed in paragraph (1) may recover punitive damages

19 in appropriate circumstances.’’.

20 SEC. 205. WHO MAY BE A DEBTOR.

21 Section 727 of title 11, United States Code, is

22 amended by adding at the end the following:

23 ‘‘(F)(1) In any case in which a creditor files a motion

24 to deny relief to a debtor under this section and that mo-
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1 tion is denied or withdrawn, the court shall award the

2 debtor reasonable attorneys’ fees and costs.

3 ‘‘(2) If the court finds that the position of a party

4 filing a motion under this section is not substantially justi5 fied, the court shall assess against the creditor for pay6 ment to the debtor a payment in an amount equal to the

7 greater of—

8 ‘‘(A)(i) the amount of actual damages; multi9 plied by

10 ‘‘(ii) 3; or

11 ‘‘(B) $5,000.’’.

12 TITLE III—IMPROVED PROCE13 DURES FOR EFFICIENT AD14 MINISTRATION OF THE BANK15 RUPTCY SYSTEM

16 SEC. 301. NOTICE OF ALTERNATIVES.

17 (a) IN GENERAL.—Section 342 of title 11, United

18 States Code, is amended by striking subsection (b) and

19 inserting the following:

20 ‘‘(b) Before the commencement of a case under this

21 title by an individual whose debts are primarily consumer

22 debts, that individual shall be given or obtain (as required

23 in section 521(a)(1), as part of the certification process

24 under subchapter 1 of chapter 5 of this title) a written

25 notice prescribed by the United States trustee for the dis-
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1 trict in which the petition is filed pursuant to section 586

2 of title 28. The notice shall contain the following:

3 ‘‘(1) A brief description of chapters 7, 11, 12,

4 and 13 of this title and the general purpose, bene5 fits, and costs of proceeding under each of those

6 chapters.

7 ‘‘(2) A brief description of services that may be

8 available to that individual from an independent

9 nonprofit debt counseling service.

10 ‘‘(3)(A) The name, address, and telephone

11 number of each nonprofit debt counseling service

12 with an office located in the district in which the pe13 tition is filed, if any.

14 ‘‘(B) Any nonprofit debt counseling service de15 scribed in subparagraph (A) that has registered with

16 the clerk of the bankruptcy court on or before De17 cember 10 of the preceding year shall be included in

18 the list referred to in that clause, unless the chief

19 bankruptcy judge of the district involved, after giv20 ing notice to the debt counseling service and the

21 United States trustee and opportunity for a hearing,

22 orders, for good cause, that a particular debt coun23 seling service shall not be so listed.’’; and

24 (b) DEBTOR’S DUTIES.—Section 521 of title 11,

25 United States Code, is amended—
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1 (1) by inserting ‘‘(a)’’ before ‘‘The debtor

2 shall—’’;

3 (2) by striking paragraph (1) and inserting the

4 following:

5 ‘‘(1) file—

6 ‘‘(A) a list of creditors; and

7 ‘‘(B) unless the court orders otherwise—

8 ‘‘(i) a schedule of assets and liabil9 ities;

10 ‘‘(ii) a schedule of current income and

11 current expenditures;

12 ‘‘(iii) a statement of the debtor’s fi13 nancial affairs and, if applicable, a certifi14 cate—

15 ‘‘(I) of an attorney whose name

16 is on the petition as the attorney for

17 the debtor or any bankruptcy petition

18 preparer signing the petition pursuant

19 to section 110(b)(1) of this title indi20 cating that such attorney or bank21 ruptcy petition preparer delivered to

22 the debtor any notice required by sec23 tion 342(b) of this title; or

24 ‘‘(II) if no attorney for the debt25 or is indicated and no bankruptcy pe-
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1 tition preparer signed the petition, of

2 the debtor that such notice was ob3 tained and read by the debtor;

4 ‘‘(iv) copies of any Federal tax re5 turns, including any schedules or attach6 ments, filed by the debtor for the 3-year

7 period preceding the order for relief;

8 ‘‘(v) copies of all payment advices or

9 other evidence of payment, if any, received

10 by the debtor from any employer of the

11 debtor in the period 60 days prior to the

12 filing of the petition;

13 ‘‘(vi) a statement of the amount of

14 projected monthly net income, itemized to

15 show how calculated;

16 ‘‘(vii) if applicable, any statement

17 under paragraphs (3) and (4) of section

18 109(h); and

19 ‘‘(viii) a statement disclosing any rea20 sonably anticipated increase in income or

21 expenditures over the 12-month period fol22 lowing the date of filing;’’; and

23 (3) by adding at the end the following:

24 ‘‘(b)(1) At any time, a creditor, in the case of an indi25 vidual under chapter 7 or 13, may file with the court no-
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1 tice that the creditor requests the petition, schedules, and

2 a statement of affairs filed by the debtor in the case and

3 the court shall make those documents available to the

4 creditor who requests those documents.

5 ‘‘(2) At any time, a creditor, in a case under chapter

6 13, may file with the court notice that the creditor re7 quests the plan filed by the debtor in the case and the

8 court shall make that plan available to the creditor who

9 requests that plan.

10 ‘‘(c) An individual debtor in a case under chapter 7

11 or 13 shall file with the court—

12 ‘‘(1) at the time filed with the taxing authority,

13 all tax returns, including any schedules or attach14 ments, with respect to the period from the com15 mencement of the case until such time as the case

16 is closed;

17 ‘‘(2) at the time filed with the taxing authority,

18 all tax returns, including any schedules or attach19 ments, that were not filed with the taxing authority

20 when the schedules under subsection (a)(1) were

21 filed with respect to the period that is 3 years before

22 the order for relief;

23 ‘‘(3) any amendments to any of the tax returns,

24 including schedules or attachments, described in

25 paragraph (1) or (2); and
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1 ‘‘(4) in a case under chapter 13, a statement

2 subject to the penalties of perjury by the debtor of

3 the debtor’s income and expenditures in the preced4 ing tax year and monthly income, that shows how

5 the amounts are calculated—

6 ‘‘(A) beginning on the date that is the

7 later of 90 days after the close of the debtor’s

8 tax year or 1 year after the order for relief, un9 less a plan has been confirmed; and

10 ‘‘(B) thereafter on or before the date that

11 is 45 days before each anniversary of the con12 firmation of the plan until the case is closed.

13 ‘‘(d)(1) A statement referred to in subsection (c)(4)

14 shall disclose—

15 ‘‘(A) the amount and sources of income of the

16 debtor;

17 ‘‘(B) the identity of any persons responsible

18 with the debtor for the support of any dependents of

19 the debtor; and

20 ‘‘(C) any persons who contributed and the

21 amount contributed to the household in which the

22 debtor resides.

23 ‘‘(2) The tax returns, amendments, and statement of

24 income and expenditures described in paragraph (1) shall

25 be available to the United States trustee, any bankruptcy
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1 administrator, any trustee, and any party in interest for

2 inspection and copying.’’.

3 (c) TITLE 28.—Section 586(a) of title 28, United

4 States Code, is amended—

5 (1) in paragraph (5) by striking ‘‘and’’ at the

6 end;

7 (2) in paragraph (6) by striking the period at

8 the end and inserting ‘‘; and’’; and

9 (3) by adding at the end the following:

10 ‘‘(7) on or before January 1 of each calendar

11 year, and also not later than 30 days after any

12 change in the nonprofit debt counseling services reg13 istered with the bankruptcy court, prescribe and

14 make available on request the notice described in

15 section 342(b)(3) of title 11 for each district in16 cluded in the region.’’.

17 SEC. 302. FAIR TREATMENT OF SECURED CREDITORS

18 UNDER CHAPTER 13.

19 Section 1325(a)(5)(B)(i) of title 11, United States

20 Code, is amended to read as follows:

21 ‘‘(B)(i) the plan provides that the holder of

22 such claim retain the lien securing such claim

23 until the debt that is the subject of the claim

24 is fully paid for, as provided under the plan;

25 and’’.
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1 SEC. 303. DISCOURAGEMENT OF BAD FAITH REPEAT FIL2 INGS.

3 Section 362 of title 11, United States Code, is

4 amended—

5 (1) in subsection (c)—

6 (A) by inserting ‘‘(1)’’ before ‘‘Except as’’;

7 (B) by striking ‘‘(1) the stay’’ and insert8 ing ‘‘(A) the stay’’;

9 (C) by striking ‘‘(2) the stay’’ and insert10 ing ‘‘(B) the stay’’;

11 (D) by striking ‘‘(A) the time’’ and insert12 ing ‘‘(i) the time’’; and

13 (E) by striking ‘‘(B) the time’’ and insert14 ing ‘‘(ii) the time’’; and

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

16 ‘‘(2) Except as provided in subsections (d) through

17 (f), the stay under subsection (a) with respect to any ac18 tion taken with respect to a debt or property securing such

19 debt or with respect to any lease shall terminate with re20 spect to the debtor on the 30th day after the filing of the

21 later case if—

22 ‘‘(A) a single or joint case is filed by or against

23 an individual debtor under chapter 7, 11, or 13; and

24 ‘‘(B) a single or joint case of that debtor (other

25 than a case refiled under a chapter other than chap26 ter 7 after dismissal under section 707(b) of this
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1 title) was pending during the preceding year but was

2 dismissed.

3 ‘‘(3) If a party in interest so requests, the court may

4 extend the stay in a particular case with respect to 1 or

5 more creditors (subject to such conditions or limitations

6 as the court may impose) after providing notice and a

7 hearing completed before the expiration of the 30-day pe8 riod described in paragraph (2) only if the party in inter9 est demonstrates that the filing of the later case is in good

10 faith with respect to the creditors to be stayed.

11 ‘‘(4) A case shall be presumed to have not been filed

12 in good faith (except that such presumption may be rebut13 ted by clear and convincing evidence to the contrary)—

14 ‘‘(A) with respect to the creditors involved, if—

15 ‘‘(i) more than 1 previous case under any

16 of chapters 7, 11, or 13 of this title in which

17 the individual was a debtor was pending during

18 the 1-year period described in paragraph (1);

19 ‘‘(ii) a previous case under any of chapters

20 7, 11, or 13 of this title in which the individual

21 was a debtor was dismissed within the period

22 specified in paragraph (2) after—

23 ‘‘(I) the debtor, after having received

24 from the court a request to do so, failed to
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1 file or amend the petition or other docu2 ments as required by this title; or

3 ‘‘(II) the debtor, without substantial

4 excuse, failed to perform the terms of a

5 plan that was confirmed by the court; or

6 ‘‘(iii)(I) during the period commencing

7 with the dismissal of the next most previous

8 case under chapter 7, 11, or 13 there has not

9 been a substantial change in the financial or

10 personal affairs of the debtor;

11 ‘‘(II) if the case is a chapter 7 case, there

12 is no other reason to conclude that the later

13 case will be concluded with a discharge; or

14 ‘‘(III) if the case is a chapter 11 or 13

15 case, there is not a confirmed plan that will be

16 fully performed; and

17 ‘‘(B) with respect to any creditor that com18 menced an action under subsection (d) in a previous

19 case in which the individual was a debtor, if, as of

20 the date of dismissal of that case, that action was

21 still pending or had been resolved by terminating,

22 conditioning, or limiting the stay with respect to ac23 tions of that creditor.

24 ‘‘(5)(A) If a request is made for relief from the stay

25 under subsection (a) with respect to real or personal prop-
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1 erty of any kind, and the request is granted in whole or

2 in part, the court may, in addition to making any other

3 order under this subsection, order that the relief so grant4 ed shall be in rem either—

5 ‘‘(i) for a definite period of not less than 1

6 year; or

7 ‘‘(ii) indefinitely.

8 ‘‘(B)(i) After an order is issued under subparagraph

9 (A), the stay under subsection (a) shall not apply to any

10 property subject to such an in rem order in any case of

11 the debtor.

12 ‘‘(ii) If an in rem order issued under subparagraph

13 (A) so provides, the stay shall, in addition to being inap14 plicable to the debtor involved, not apply with respect to

15 an entity under this title if—

16 ‘‘(I) the entity had reason to know of the

17 order at the time that the entity obtained an in18 terest in the property affected; or

19 ‘‘(II) the entity was notified of the com20 mencement of the proceeding for relief from the

21 stay, and at the time of the notification, no case

22 in which the entity was a debtor was pending.

23 ‘‘(6) For purposes of this section, a case is pending

24 during the period beginning with the issuance of the order
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1 for relief and ending at such time as the case involved

2 is closed.’’.

3 SEC. 304. TIMELY FILING AND CONFIRMATION OF PLANS

4 UNDER CHAPTER 13.

5 (a) FILING OF PLAN.—Section 1321 of title 11, Unit6 ed States Code, is amended to read as follows:

7 ‘‘§ 1321. Filing of plan

8 ‘‘The debtor shall file a plan not later than 90 days

9 after the order for relief under this chapter, except that

10 the court may extend such period if the need for an exten11 sion is attributable to circumstances for which the debtor

12 should not justly be held accountable.’’.

13 (b) CONFIRMATION OF HEARING.—Section 1324 of

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

15 end the following: ‘‘That hearing shall be held not later

16 than 45 days after the filing of the plan, unless the court,

17 after providing notice and a hearing, orders otherwise.’’.

18 SEC. 305. APPLICATION OF THE CODEBTOR STAY ONLY

19 WHEN THE STAY PROTECTS THE DEBTOR.

20 Section 1301(b) of title 11, United States Code, is

21 amended—

22 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

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

24 ‘‘(2)(A) Notwithstanding subsection (c) and except as

25 provided in subparagraph (B), in any case in which the
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1 debtor did not receive the consideration for the claim held

2 by a creditor, the stay provided by subsection (a) shall

3 apply to that creditor for a period not to exceed 30 days

4 beginning on the date of the order for relief, to the extent

5 the creditor proceeds against—

6 ‘‘(i) the individual that received that consider7 ation; or

8 ‘‘(ii) property not in the possession of the debt9 or that secures that claim.

10 ‘‘(B) In any case described in subparagraph (A), a

11 creditor may not proceed against an individual described

12 in subparagraph (A)(i) or property described in subpara13 graph (A)(ii), if the debtor who did not receive consider14 ation for the property that is the subject of the claim is

15 able to demonstrate that the receipt of the property was

16 not part of a scheme to defraud or hinder any creditor.

17 ‘‘(3) Notwithstanding subsection (c), the stay pro18 vided by subsection (a) shall terminate as of the date of

19 confirmation of the plan, in any case in which the plan

20 of the debtor provides that the debtor’s interest in per21 sonal property subject to a lease with respect to which the

22 debtor is the lessee will be surrendered or abandoned or

23 no payments will be made under the plan on account of

24 the debtor’s obligations under the lease.’’.
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1 SEC. 306. IMPROVED BANKRUPTCY STATISTICS.

2 (a) AMENDMENT.—Chapter 6 of part I of title 28,

3 United States Code, is amended by adding at the end the

4 following:

5 ‘‘§ 159. Bankruptcy statistics

6 ‘‘(a) The clerk of each district shall compile statistics

7 regarding individual debtors with primarily consumer

8 debts seeking relief under chapters 7, 11, and 13 of title

9 11. Those statistics shall be in a form prescribed by the

10 Director of the Administrative Office of the United States

11 Courts (referred to in this section as the ‘Office’).

12 ‘‘(b) The Director shall—

13 ‘‘(1) compile the statistics referred to in sub14 section (a);

15 ‘‘(2) make the statistics available to the public;

16 and

17 ‘‘(3) not later than October 31, 1998, and an18 nually thereafter, prepare, and submit to Congress a

19 report concerning the information collected under

20 subsection (a) that contains an analysis of the infor21 mation.

22 ‘‘(c) The compilation required under subsection (b)

23 shall—

24 ‘‘(1) be itemized, by chapter, with respect to

25 title 11;
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1 ‘‘(2) be presented in the aggregate and for each

2 district; and

3 ‘‘(3) include information concerning—

4 ‘‘(A) the total assets and total liabilities of

5 the debtors described in subsection (a), and in

6 each category of assets and liabilities, as re7 ported in the schedules prescribed pursuant to

8 section 2075 of this title and filed by those

9 debtors;

10 ‘‘(B) the current total monthly income,

11 projected monthly net income, and average in12 come and average expenses of those debtors as

13 reported on the schedules and statements that

14 each such debtor files under sections 111, 521,

15 and 1322 of title 11;

16 ‘‘(C) the aggregate amount of debt dis17 charged in the reporting period, determined as

18 the difference between the total amount of debt

19 and obligations of a debtor reported on the

20 schedules and the amount of such debt reported

21 in categories which are predominantly non22 dischargeable;

23 ‘‘(D) the average period of time between

24 the filing of the petition and the closing of the

25 case;
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1 ‘‘(E) for the reporting period—

2 ‘‘(i) the number of cases in which a

3 reaffirmation was filed; and

4 ‘‘(ii)(I) the total number of reaffirma5 tions filed;

6 ‘‘(II) of those cases in which a reaffir7 mation was filed, the number in which the

8 debtor was not represented by an attorney;

9 and

10 ‘‘(III) of those cases, the number of

11 cases in which the reaffirmation was ap12 proved by the court;

13 ‘‘(F) with respect to cases filed under

14 chapter 13 of title 11, for the reporting pe15 riod—

16 ‘‘(i)(I) the number of cases in which a

17 final order was entered determining the

18 value of property securing a claim in an

19 amount less than the amount of the claim;

20 and

21 ‘‘(II) the number of final orders deter22 mining the value of property securing a

23 claim issued;
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1 ‘‘(ii) the number of cases dismissed

2 for failure to make payments under the

3 plan; and

4 ‘‘(iii) the number of cases in which

5 the debtor filed another case within the 6

6 years previous to the filing; and

7 ‘‘(G) the extent of creditor misconduct and

8 any amount of punitive damages awarded by

9 the court for creditor misconduct.’’.

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

11 at the beginning of chapter 6 of title 28, United States

12 Code, is amended by adding at the end the following:

‘‘159. Bankruptcy statistics.’’.

13 (c) EFFECTIVE DATE.—The amendments made by

14 this section shall take effect 18 months after the date of

15 enactment of this Act.

16 SEC. 307. AUDIT PROCEDURES.

17 (a) AMENDMENT.—Section 586 of title 28, United

18 States Code, is amended—

19 (1) in subsection (a), as amended by section

20 301 of this Act, by striking paragraph (6) and in21 serting the following:

22 ‘‘(6) make such reports as the Attorney General

23 directs, including the results of audits performed

24 under subsection (f); and’’; and

25 (2) by adding at the end the following:
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1 ‘‘(f)(1)(A) The Attorney General shall establish pro2 cedures for the auditing of the accuracy and completeness

3 of petitions, schedules, and other information which the

4 debtor is required to provide under sections 521 and 1322

5 of title 11, and, if applicable, section 111 of title 11, in

6 individual cases filed under chapter 7 or 13 of such title.

7 ‘‘(B) The audits described in subparagraph (A) shall

8 be made in accordance with generally accepted auditing

9 standards and performed by independent certified public

10 accountants or independent licensed public accountants.

11 Those procedures shall—

12 ‘‘(i) establish a method of selecting appropriate

13 qualified persons to contract with the United States

14 trustee to perform those audits;

15 ‘‘(ii) establish a method of randomly selecting

16 cases to be audited according to generally accepted

17 auditing standards, except that not less than 1 out

18 of every 50 cases in each Federal judicial district

19 shall be selected for audit;

20 ‘‘(iii) require audits for schedules of income and

21 expenses which reflect greater than average

22 variances from the statistical norm of the district in

23 which the schedules were filed; and

24 ‘‘(iv) establish procedures for—
27

•S 1301 IS

1 ‘‘(I) reporting the results of those audits

2 and any material misstatement of income, ex3 penditures, or assets of a debtor to the Attor4 ney General, the United States Attorney and

5 the court, as appropriate;

6 ‘‘(II) providing, not less frequently than

7 annually, public information concerning the ag8 gregate results of such audits including the per9 centage of cases, by district, in which a mate10 rial misstatement of income or expenditures is

11 reported; and

12 ‘‘(III) fully funding those audits, including

13 procedures requiring each debtor with sufficient

14 available income or assets to contribute to the

15 payment for those audits, as an administrative

16 expense or otherwise.

17 ‘‘(2) The United States trustee for each district is

18 authorized to contract with auditors to perform audits in

19 cases designated by the United States trustee according

20 to the procedures established under paragraph (1) of this

21 subsection.

22 ‘‘(3) According to procedures established under para23 graph (1), upon request of a duly appointed auditor, the

24 debtor shall cause the accounts, papers, documents, finan25 cial records, files and all other papers, things, or property
28

•S 1301 IS

1 belonging to the debtor as the auditor requests and that

2 are reasonably necessary to facilitate the audit to be made

3 available for inspection and copying.

4 ‘‘(4)(A) The report of each audit conducted under

5 this subsection shall be filed with the court, the Attorney

6 General, and the United States Attorney, as required

7 under procedures established by the Attorney General

8 under paragraph (1).

9 ‘‘(B) If a material misstatement of income or expend10 itures or of assets is reported under subparagraph (A),

11 a statement specifying that misstatement shall be filed

12 with the court and the United States trustee shall—

13 ‘‘(i) give notice thereof to the creditors in the

14 case; and

15 ‘‘(ii) in an appropriate case, in the opinion of

16 the United States trustee, that requires investigation

17 with respect to possible criminal violations, the Unit18 ed States Attorney for the district.’’.

19 (b) EFFECTIVE DATE.—The amendments made by

20 this section shall take effect 18 months after the date of

21 enactment of this Act.

22 SEC. 308. CREDITOR REPRESENTATION AT FIRST MEETING

23 OF CREDITORS.

24 Section 341(c) of title 11, United States Code, is

25 amended by inserting after the first sentence the follow-
29

•S 1301 IS

1 ing: ‘‘Notwithstanding any local court rule, provision of

2 a State constitution, any other Federal or State law that

3 is not a bankruptcy law, or other requirement that rep4 resentation at the meeting of creditors under subsection

5 (a) be by an attorney, a creditor holding a consumer debt

6 or any representative of the creditor (which may include

7 an entity or an employee of an entity and may be a rep8 resentative for more than one creditor) shall be permitted

9 to appear at and participate in the meeting of creditors

10 in a case under chapter 7 or 13, either alone or in conjunc11 tion with an attorney for the creditor. Nothing in this sub12 section shall be construed to require any creditor to be

13 represented by an attorney at any meeting of creditors.’’.

14 SEC. 309. FAIR NOTICE FOR CREDITORS IN CHAPTER 7 AND

15 13 CASES.

16 Section 342 of title 11, United States Code, is

17 amended—

18 (1) in subsection (c)—

19 (A) by striking ‘‘, but the failure of such

20 notice to contain such information shall not in21 validate the legal effect of such notice’’; and

22 (B) by adding at the end the following:

23 ‘‘(d)(1) If the credit agreement between the debtor

24 and the creditor or the last communication before the fil25 ing of the petition in a voluntary case from the creditor
30

•S 1301 IS

1 to a debtor who is an individual states an account number

2 of the debtor that is the current account number of the

3 debtor with respect to any debt held by the creditor

4 against the debtor, the debtor shall include that account

5 number in any notice to the creditor required to be given

6 under this title.

7 ‘‘(2) If the creditor has specified to the debtor, in

8 the last communication before the filing of the petition,

9 an address at which the creditor wishes to receive cor10 respondence regarding the debtor’s account, any notice to

11 the creditor required to be given by the debtor under this

12 title shall be given at such address.

13 ‘‘(3) For purposes of this section, the term ‘notice’

14 shall include—

15 ‘‘(A) any correspondence from the debtor to the

16 creditor after the commencement of the case;

17 ‘‘(B) any statement of the debtor’s intention

18 under section 521(a)(2) of this title;

19 ‘‘(C) notice of the commencement of any pro20 ceeding in the case to which the creditor is a party;

21 and

22 ‘‘(D) any notice of a hearing under section

23 1324 of this title.

24 ‘‘(e)(1) At any time, a creditor, in a case of an indi25 vidual under chapter 7 or 13, may file with the court and
31

•S 1301 IS

1 serve on the debtor a notice of the address to be used to

2 notify the creditor in that case.

3 ‘‘(2) If the court or the debtor is required to give

4 the creditor notice, 5 days after receipt of the notice under

5 paragraph (1), that notice shall be given at that address.

6 ‘‘(f) An entity may file with the court a notice stating

7 its address for notice in cases under chapter 7 or 13. After

8 the date that is 30 days following the filing of that notice,

9 any notice in any case filed under chapter 7 or 13 given

10 by the court shall be to that address unless specific notice

11 is given under subsection (e) with respect to a particular

12 case.

13 ‘‘(g)(1) Notice given to a creditor other than as pro14 vided in this section shall not be effective notice until that

15 notice has been brought to the attention of the creditor.

16 ‘‘(2) If the creditor has designated a person or de17 partment to be responsible for receiving notices concerning

18 bankruptcy cases and has established reasonable proce19 dures so that bankruptcy notices received by the creditor

20 will be delivered to that department or person, notice shall

21 not be brought to the attention of the creditor until that

22 notice is received by that person or department.’’.
32

•S 1301 IS

1 SEC. 310. STOPPING ABUSIVE CONVERSIONS FROM CHAP2 TER 13.

3 Section 348(f)(1) of title 11, United States Code, is

4 amended—

5 (1) in subparagraph (A), by striking ‘‘and’’ at

6 the end;

7 (2) in subparagraph (B)—

8 (A) by striking ‘‘in the converted case,

9 with allowed secured claims’’ and inserting

10 ‘‘only in a case converted to chapter 11 or 12

11 but not in a case converted to chapter 7, with

12 allowed secured claims in cases under chapters

13 11 and 12’’; and

14 (B) by striking the period and inserting ‘‘;

15 and’’; and

16 (3) by adding at the end the following:

17 ‘‘(C) with respect to cases converted from chap18 ter 13, the claim of any creditor holding security as

19 of the date of the petition shall continue to be se20 cured by that security unless the full amount of that

21 claim determined under applicable nonbankruptcy

22 law has been paid in full as of the date of conver23 sion, notwithstanding any valuation or determination

24 of the amount of an allowed secured claim made for

25 the purposes of the chapter 13 proceeding.’’.
33

•S 1301 IS

1 SEC. 311. PROMPT RELIEF FROM STAY IN INDIVIDUAL

2 CASES.

3 Section 362(e) of title 11, United States Code, is

4 amended—

5 (1) by inserting ‘‘(1)’’ after ‘‘(e); and

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

7 ‘‘(2) Notwithstanding paragraph (1), in the case of

8 an individual filing under chapter 7, 11, or 13, the stay

9 under subsection (a) shall terminate on the date that is

10 60 days after a request is made by a party in interest

11 under subsection (d), unless—

12 ‘‘(A) a final decision is rendered by the court

13 during the 60-day period beginning on the date of

14 the request; or

15 ‘‘(B) that 60-day period is extended—

16 ‘‘(i) by agreement of all parties in interest;

17 or

18 ‘‘(ii) by the court for such specific period

19 of time as the court finds is required for good

20 cause.’’.

21 SEC. 312. DISMISSAL FOR FAILURE TO FILE SCHEDULES

22 TIMELY OR PROVIDE REQUIRED INFORMA23 TION.

24 Section 707 of title 11, United States Code, as

25 amended by section 102 of this Act, is further amended

26 by adding at the end the following:
34

•S 1301 IS

1 ‘‘(c)(1) Notwithstanding subsection (a), and subject

2 to paragraph (2), if an individual debtor in a voluntary

3 case under chapter 7 or 13 fails to file all of the informa4 tion required under section 521(a)(1) of this title within

5 45 days after the filing of the petition commencing the

6 case, the case shall be automatically dismissed effective

7 on the 46th day after the filing of the petition.

8 ‘‘(2) With respect to a case described in paragraph

9 (1), any party in interest may request the court to enter

10 an order dismissing the case. The court shall, if so re11 quested, enter an order of dismissal not later than 5 days

12 after that request.

13 ‘‘(3) Upon request of the debtor made within 45 days

14 after the filing of the petition commencing a case de15 scribed in paragraph (1), the court may allow the debtor

16 an additional period of not to exceed 20 days to file the

17 information required under section 521(a)(1) of this title

18 if the court finds justification for extending the period for

19 the filing.’’.

20 SEC. 313. ADEQUATE TIME FOR PREPARATION FOR A HEAR21 ING ON CONFIRMATION OF THE PLAN.

22 Section 1324 of title 11, United States Code, is

23 amended—

24 (1) by striking ‘‘After’’ and inserting the follow25 ing:
35

•S 1301 IS

1 ‘‘(a) Except as provided in subsection (b) and after’’;

2 and

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

4 ‘‘(b) If not later than 5 days after receiving notice

5 of a hearing on confirmation of the plan, a creditor objects

6 to the confirmation of the plan, the hearing on confirma7 tion of the plan may be held no earlier than 20 days after

8 the first meeting of creditors under section 341(a) of this

9 title.’’.

10 TITLE IV—TECHNICAL

11 CORRECTIONS

12 SEC. 401. DEFINITIONS.

13 Section 101 of title 11, United States Code, is

14 amended—

15 (1) by striking ‘‘In this title—’’ and inserting

16 ‘‘In this title:’’;

17 (2) in each paragraph, by inserting ‘‘The term’’

18 after the paragraph designation;

19 (3) in paragraph (35)(B), by striking ‘‘para20 graphs (21B) and (33)(A)’’ and inserting ‘‘para21 graphs (23) and (35)’’;

22 (4) in each of paragraphs (35A) and (38), by

23 striking ‘‘; and’’ at the end and inserting a period;

24 (5) in paragraph (51B)—
36

•S 1301 IS

1 (A) by inserting ‘‘who is not a family farm2 er’’ after ‘‘debtor’’ the first place it appears;

3 and

4 (B) by striking ‘‘thereto having aggregate’’

5 and all that follows through the end of the

6 paragraph;

7 (6) by amending paragraph (54) to read as fol8 lows:

9 ‘‘(54) The term ‘transfer’ means—

10 ‘‘(A) the creation of a lien;

11 ‘‘(B) the retention of title as a security in12 terest;

13 ‘‘(C) the foreclosure of a debtor’s equity of

14 redemption; or

15 ‘‘(D) each mode, direct or indirect absolute

16 or conditional, voluntary or involuntary, of dis17 posing of or parting with property or with an

18 interest in property;’’;

19 (7) in each of paragraphs (1) through (35), in

20 each of paragraphs (36) and (37), and in each of

21 paragraphs (40) through (55) (including paragraph

22 (54), as added by paragraph (6) of this section), by

23 striking the semicolon at the end and inserting a pe24 riod; and
37

•S 1301 IS

1 (8) by redesignating paragraphs (4) through

2 (55) in entirely numerical sequence, so as to result

3 in numerical paragraph designations of (4) through

4 (68).

5 SEC. 402. ADJUSTMENT OF DOLLAR AMOUNTS.

6 Section 104 of title 11, United States Code, is

7 amended by inserting ‘‘522(f)(3),’’ after ‘‘522(d),’’ each

8 place it appears.

9 SEC. 403. EXTENSION OF TIME.

10 Section 108(c)(2) of title 11, United States Code, is

11 amended by striking ‘‘922’’ and all that follows through

12 ‘‘or’’, and inserting ‘‘922, 1201, or’’.

13 SEC. 404. WHO MAY BE A DEBTOR.

14 Section 109(b)(2) of title 11, United States Code, is

15 amended by striking ‘‘subsection (c) or (d) of’’.

16 SEC. 405. PENALTY FOR PERSONS WHO NEGLIGENTLY OR

17 FRAUDULENTLY PREPARE BANKRUPTCY PE18 TITIONS.

19 Section 110(j)(3) of title 11, United States Code, is

20 amended by striking ‘‘attorney’s’’ and inserting

21 ‘‘attorneys’ ’’.
38

•S 1301 IS

1 SEC. 406. LIMITATION ON COMPENSATION OF PROFES2 SIONAL PERSONS.

3 Section 328(a) of title 11, United States Code, is

4 amended by inserting ‘‘on a fixed or percentage fee basis,’’

5 after ‘‘hourly basis,’’.

6 SEC. 407. SPECIAL TAX PROVISIONS.

7 Section 346(g)(1)(C) of title 11, United States Code,

8 is amended by striking ‘‘, except’’ and all that follows

9 through ‘‘1986’’.

10 SEC. 408. EFFECT OF CONVERSION.

11 Section 348(f)(2) of title 11, United States Code, is

12 amended by inserting ‘‘of the estate’’ after ‘‘property’’ the

13 first place it appears.

14 SEC. 409. AUTOMATIC STAY.

15 Section 362(b) of title 11, United States Code, is

16 amended—

17 (1) in paragraph (17), by striking ‘‘or’’ at the

18 end;

19 (2) in paragraph (18), by striking the period at

20 the end and inserting ‘‘; or’’; and

21 (3) by adding at the end the following:

22 ‘‘(19) under subsection (a) of this section of

23 any transfer that is not avoidable under section 544

24 and that is not avoidable under section 549.’’.
39

•S 1301 IS

1 SEC. 410. EXECUTORY CONTRACTS AND UNEXPIRED

2 LEASES.

3 Section 365 of title 11, United States Code, is

4 amended—

5 (1) in subsection (b)(2)—

6 (A) in subparagraph (C), by striking ‘‘or’’

7 at the end; and

8 (B) by striking subparagraph (D) and in9 serting the following:

10 ‘‘(D) the satisfaction of any penalty rate or

11 penalty provision relating to a default arising

12 from a failure to perform nonmonetary obliga13 tions under an executory contract or under an

14 unexpired lease of real or personal property;

15 ‘‘(E) the satisfaction of any provision

16 (other than a penalty rate or penalty provision)

17 relating to a default arising from any failure to

18 perform nonmonetary obligations under an

19 unexpired lease of real property, if it is impos20 sible for the trustee to cure such default by per21 forming nonmonetary acts at and after the time

22 of assumption; or

23 ‘‘(F) the satisfaction of any provision

24 (other than a penalty rate or penalty provision)

25 relating to a default arising from any failure to

26 perform nonmonetary obligations under an ex-
40

•S 1301 IS

1 ecutory contract, if it is impossible for the

2 trustee to cure such default by performing non3 monetary acts at and after the time of assump4 tion and if the court determines, based on the

5 equities of the case, that paragraph (1) should

6 not apply with respect to such default.’’;

7 (2) in subsection (c)—

8 (A) in paragraph (2), by adding ‘‘or’’ at

9 the end;

10 (B) in paragraph (3), by striking ‘‘or’’ at

11 the end and inserting a period; and

12 (C) by striking paragraph (4);

13 (3) in subsection (d)—

14 (A) by striking paragraphs (5) through

15 (9); and

16 (B) by redesignating paragraph (10) as

17 paragraph (5); and

18 (4) in subsection (f)(1), by striking ‘‘; except

19 that’’ and all that follows through the end of the

20 paragraph and inserting a period.

21 SEC. 411. AMENDMENT TO TABLE OF SECTIONS.

22 The table of sections for chapter 5 of title 11, United

23 States Code, is amended by striking the item relating to

24 section 556 and inserting the following:

‘‘556. Contractual right to liquidate a commodities contract or forward contract.’’.
41

•S 1301 IS

1 SEC. 412. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

2 Section 503(b)(4) of title 11, United States Code, is

3 amended by inserting ‘‘subparagraph (A), (B), (C), (D),

4 or (E) of’’ before ‘‘paragraph (3)’’.

5 SEC. 413. PRIORITIES.

6 Section 507(a) of title 11, United States Code, is

7 amended—

8 (1) in paragraph (3)(B), by striking the semi9 colon at the end and inserting a period; and

10 (2) in paragraph (7), by inserting ‘‘unsecured’’

11 after ‘‘allowed’’.

12 SEC. 414. EXEMPTIONS.

13 Section 522 of title 11, United States Code, is

14 amended—

15 (1) in subsection (f)(1)(A)(ii)(II)—

16 (A) by striking ‘‘includes a liability des17 ignated as’’ and inserting ‘‘is for a liability that

18 is designated as, and is actually in the nature

19 of,’’; and

20 (B) by striking ‘‘, unless’’ and all that fol21 lows through ‘‘support,’’; and

22 (2) in subsection (g)(2), by striking ‘‘subsection

23 (f)(2)’’ and inserting ‘‘subsection (f)(1)(B)’’.

24 SEC. 415. EXCEPTIONS TO DISCHARGE.

25 Section 523 of title 11, United States Code, is

26 amended—
42

•S 1301 IS

1 (1) in subsection (a)(3), by striking ‘‘or (6)’’

2 each place it appears and inserting ‘‘(6), or (15)’’;

3 (2) as amended by section 304(e) of Public Law

4 103–394 (108 Stat. 4133), in paragraph (15)—

5 (A) by inserting ‘‘or’’ after the semicolon

6 at the end; and

7 (B) by transferring such paragraph so as

8 to insert it after paragraph (14) of subsection

9 (a);

10 (3) in paragraph (9), by inserting

11 ‘‘, watercraft, or aircraft’’ after ‘‘motor vehicle’’;

12 (4) in subsection (a)(15), as so redesignated by

13 paragraph (2) of this subsection, by inserting ‘‘to a

14 spouse, former spouse, or child of the debtor and’’

15 after ‘‘(15)’’;

16 (5) in subsection (a)(17)—

17 (A) by striking ‘‘by a court’’ and inserting

18 ‘‘on a prisoner by any court’’;

19 (B) by striking ‘‘section 1915 (b) or (f)’’

20 and inserting ‘‘subsection (b) or (f)(2) of sec21 tion 1915’’; and

22 (C) by inserting ‘‘(or a similar non-Federal

23 law)’’ after ‘‘title 28’’ each place it appears; and

24 (6) in subsection (e), by striking ‘‘a insured’’

25 and inserting ‘‘an insured’’.
43

•S 1301 IS

1 SEC. 416. EFFECT OF DISCHARGE.

2 Section 524(a)(3) of title 11, United States Code, is

3 amended by striking ‘‘section 523’’ and all that follows

4 through ‘‘or that’’ and inserting ‘‘section 523, 1228(a)(1),

5 or 1328(a)(1) of this title, or that’’.

6 SEC. 417. PROTECTION AGAINST DISCRIMINATORY TREAT7 MENT.

8 Section 525(c) of title 11, United States Code, is

9 amended—

10 (1) in paragraph (1), by inserting ‘‘student’’ be11 fore ‘‘grant’’ the second place it appears; and

12 (2) in paragraph (2), by striking ‘‘the program

13 operated under part B, D, or E of’’ and inserting

14 ‘‘any program operated under’’.

15 SEC. 418. PROPERTY OF THE ESTATE.

16 Section 541(b) of title 11, United States Code, is

17 amended—

18 (1) in paragraph (4)—

19 (A) in subparagraph (B)(ii), by inserting

20 ‘‘365 or’’ before ‘‘542’’; and

21 (B) by adding ‘‘or’’ at the end.

22 SEC. 419. LIMITATIONS ON AVOIDING POWERS.

23 Section 546 of title 11, United States Code, is

24 amended by redesignating the second subsection (g) (as

25 added by section 222(a) of the Bankruptcy Reform Act

26 of 1994; 108 Stat. 4129) as subsection (h).
44

•S 1301 IS

1 SEC. 420. PREFERENCES.

2 Section 547 of title 11, United States Code, is

3 amended—

4 (1) in subsection (b), by striking ‘‘subsection

5 (c)’’ and inserting ‘‘subsections (c) and (i)’’; and

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

7 ‘‘(i) If the trustee avoids under subsection (b) a secu8 rity interest given between 90 days and 1 year before the

9 date of the filing of the petition, by the debtor to an entity

10 that is not an insider for the benefit of a creditor that

11 is an insider, such security interest shall be considered to

12 be avoided under this section only with respect to the cred13 itor that is an insider.’’.

14 SEC. 421. POSTPETITION TRANSACTIONS.

15 Section 549(c) of title 11, United States Code, is

16 amended—

17 (1) by inserting ‘‘an interest in’’ after ‘‘transfer

18 of’’;

19 (2) by striking ‘‘such property’’ and inserting

20 ‘‘such real property’’; and

21 (3) by striking ‘‘the interest’’ and inserting

22 ‘‘such interest’’.

23 SEC. 422. TECHNICAL AMENDMENT.

24 Section 552(b)(1) of title 11, United States Code, is

25 amended by striking ‘‘product’’ each place it appears and

26 inserting ‘‘products’’.
45

•S 1301 IS

1 SEC. 423. SETOFF.

2 Section 553(b)(1) of title 11, United States Code, is

3 amended by striking ‘‘362(b)(14)’’ and inserting

4 ‘‘362(b)(17)’’.

5 SEC. 424. DISPOSITION OF PROPERTY OF THE ESTATE.

6 Section 726(b) of title 11, United States Code, is

7 amended by striking ‘‘1009,’’.

8 SEC. 425. GENERAL PROVISIONS.

9 Section 901(a) of title 11, United States Code, is

10 amended by inserting ‘‘1123(d),’’ after ‘‘1123(b),’’.

11 SEC. 426. APPOINTMENT OF ELECTED TRUSTEE.

12 Section 1104(b) of title 11, United States Code, is

13 amended—

14 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

15 (2) by adding at the end the following new

16 paragraph:

17 ‘‘(2)(A) If an eligible, disinterested trustee is elected

18 at a meeting of creditors under paragraph (1), the United

19 States trustee shall file a report certifying that election.

20 Upon the filing of a report under the preceding sentence—

21 ‘‘(i) the trustee elected under paragraph (1)

22 shall be considered to have been selected and ap23 pointed for purposes of this section; and

24 ‘‘(ii) the service of any trustee appointed under

25 subsection (d) shall terminate.
46

•S 1301 IS

1 ‘‘(B) In the case of any dispute arising out of an elec2 tion under subparagraph (A), the court shall resolve the

3 dispute.’’.

4 SEC. 427. ABANDONMENT OF RAILROAD LINE.

5 Section 1170(e)(1) of title 11, United States Code,

6 is amended by striking ‘‘section 11347’’ and inserting

7 ‘‘section 11326(a)’’.

8 SEC. 428. CONTENTS OF PLAN.

9 Section 1172(c)(1) of title 11, United States Code,

10 is amended by striking ‘‘section 11347’’ and inserting

11 ‘‘section 11326(a)’’.

12 SEC. 429. DISCHARGE UNDER CHAPTER 12.

13 Subsections (a) and (c) of section 1228 of title 11,

14 United States Code, are amended by striking

15 ‘‘1222(b)(10)’’ each place it appears and inserting

16 ‘‘1222(b)(9)’’.

17 SEC. 430. CONTENTS OF PLAN.

18 Section 1322 of title 11, United States Code, is

19 amended—

20 (1) in subsection (b), by striking ‘‘(c)’’ and in21 serting ‘‘(d)’’; and

22 (2) in subsection (e), by striking ‘‘default,

23 shall’’ and inserting ‘‘default shall’’.
47

•S 1301 IS

1 SEC. 431. DISCHARGE UNDER CHAPTER 13.

2 Paragraphs (1) through (3) of section 1328(a) of title

3 11, United States Code, are amended to read as follows:

4 ‘‘(1) provided for under section 1322(b)(5) of

5 this title;

6 ‘‘(2) of the kind specified in paragraph (5), (8),

7 or (9) of section 523(a) of this title; or

8 ‘‘(3) for restitution, or a criminal fine, included

9 in a sentence on the debtor’s conviction of a crime.’’.

10 SEC. 432. EXTENSIONS.

11 Section 302(d)(3) of the Bankruptcy, Judges, United

12 States Trustees, and Family Farmer Bankruptcy Act of

13 1986 (28 U.S.C. 581 note) is amended—

14 (1) in subparagraph (A), in the matter follow15 ing clause (ii), by striking ‘‘October 1, 2002’’ and

16 inserting ‘‘October 1, 2012’’; and

17 (2) in subparagraph (F)—

18 (A) in clause (i)—

19 (i) in subclause (II), by striking ‘‘Oc20 tober 1, 2002’’ and inserting ‘‘October 1,

21 2012’’; and

22 (ii) in the matter following subclause

23 (II), by striking ‘‘October 1, 2003’’ and in24 serting ‘‘October 1, 2013’’; and
48

•S 1301 IS

1 (B) in clause (ii), in the matter following

2 subclause (II), by striking ‘‘October 1, 2003’’

3 and inserting ‘‘October 1, 2013’’.

4 SEC. 433. BANKRUPTCY CASES AND PROCEEDINGS.

5 Section 1334(d) of title 28, United States Code, is

6 amended—

7 (1) by striking ‘‘made under this subsection’’

8 and inserting ‘‘made under subsection (c)’’; and

9 (2) by striking ‘‘This subsection’’ and inserting

10 ‘‘Subsection (c) and this subsection’’.

11 SEC. 434. KNOWING DISREGARD OF BANKRUPTCY LAW OR

12 RULE.

13 Section 156(a) of title 18, United States Code, is

14 amended—

15 (1) in the first undesignated paragraph—

16 (A) by inserting ‘‘(1) the term’’ before

17 ‘‘ ‘bankruptcy’’; and

18 (B) by striking the period at the end and

19 inserting ‘‘; and’’; and

20 (2) in the second undesignated paragraph—

21 (A) by inserting ‘‘(2) the term’’ before

22 ‘‘ ‘document’’; and

23 (B) by striking ‘‘this title’’ and inserting

24 ‘‘title 11’’.
49

•S 1301 IS

1 SEC. 435. EFFECTIVE DATE; APPLICATION OF AMEND2 MENTS.

3 (a) EFFECTIVE DATE.—Except as provided in sub4 section (b), this title and the amendments made by this

5 title shall take effect on the date of enactment of this Act.

6 (b) APPLICATION OF AMENDMENTS.—The amend7 ments made by this title shall apply only with respect to

8 cases commenced under title 11, United States Code, on

9 or after the date of enactment of this Act.

Æ