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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1301 Reported in Senate (RS)]

                                                       Calendar No. 394

105th CONGRESS

  2d Session

                                S. 1301

_______________________________________________________________________

                                 A BILL

    To amend title 11, United States Code, to provide for consumer 
             bankruptcy protection, and for other purposes.

_______________________________________________________________________

                 June 4 (legislative day, June 2), 1998

                       Reported with an amendment

                                                       Calendar No. 394
105th CONGRESS
  2d 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

                 June 4 (legislative day, June 2), 1998

                Reported by Mr. Hatch, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
    To amend title 11, United States Code, to provide for consumer 
             bankruptcy protection, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Consumer Bankruptcy Reform 
Act of 1997''.</DELETED>

           <DELETED>TITLE I--NEEDS BASED BANKRUPTCY</DELETED>

<DELETED>SEC. 101. CONVERSION.</DELETED>

<DELETED>    Section 706(c) of title 11, United States Code, is amended 
by striking ``13''.</DELETED>

<DELETED>SEC. 102. DISMISSAL OR CONVERSION.</DELETED>

<DELETED>    (a) In General.--Section 707 of title 11, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) by striking the section heading and inserting 
        the following:</DELETED>
<DELETED>``Sec. 707. Dismissal of a case or conversion to a case under 
              chapter 13'';</DELETED>
        <DELETED>and</DELETED>
        <DELETED>    (2) in subsection (b)--</DELETED>
                <DELETED>    (A) by inserting ``(1)'' after ``(b)''; 
                and</DELETED>
                <DELETED>    (B) in paragraph (1), as redesignated by 
                subparagraph (A) of this paragraph--</DELETED>
                        <DELETED>    (i) in the first sentence--
                        </DELETED>
                                <DELETED>    (I) by striking ``, but 
                                not at the request or suggestion of a 
                                party in interest,'';</DELETED>
                                <DELETED>    (II) by inserting ``, or, 
                                with the debtor's consent, convert such 
                                a case to a case under chapter 13 of 
                                this title,'' after ``consumer debts''; 
                                and</DELETED>
                                <DELETED>    (III) by striking 
                                ``substantial abuse'' and inserting 
                                ``abuse''; and</DELETED>
                        <DELETED>    (ii) by striking the last sentence 
                        and inserting the following:</DELETED>
<DELETED>    ``(2) In considering under paragraph (1) whether the 
granting of relief would be an abuse of the provisions of this chapter, 
the court shall consider whether--</DELETED>
        <DELETED>    ``(A) under section 1325(b)(1) of this title, on 
        the basis of the current income of the debtor, the debtor could 
        pay an amount greater than or equal to 20 percent of unsecured 
        claims that are not considered to be priority claims (as 
        determined under subchapter I of chapter 5 of this 
        title);</DELETED>
        <DELETED>    ``(B) the debtor filed a petition for the relief 
        in bad faith; and</DELETED>
        <DELETED>    ``(C)(i) the debtor made good-faith efforts, 
        before the filing of the petition, to negotiate an alternative 
        repayment schedule or to use alternative methods of dispute 
        resolution; and</DELETED>
        <DELETED>    ``(ii) if the debtor made efforts described in 
        clause (i), the creditors of that debtor unreasonably refused 
        to engage in the alternative methods of dispute resolution or 
        to negotiate an alternative repayment schedule.</DELETED>
<DELETED>    ``(3)(A) If a panel trustee appointed under section 
586(a)(1) of title 28 brings a motion for dismissal or conversion under 
this subsection and the court grants that motion, the court shall order 
the counsel for the debtor, if the debtor is represented by counsel, to 
reimburse the trustee for all reasonable costs in prosecuting the 
motion, including reasonable attorneys' fees.</DELETED>
<DELETED>    ``(B) If the court finds that the attorney for the debtor 
violated Rule 9011, at a minimum, the court shall order--</DELETED>
        <DELETED>    ``(i) the assessment of an appropriate civil 
        penalty against the counsel for the debtor; and</DELETED>
        <DELETED>    ``(ii) the payment of the civil penalty to the 
        panel trustee or the United States trustee.</DELETED>
<DELETED>    ``(C) In the case of a petition referred to in 
subparagraph (B), the signature of an attorney shall constitute a 
certificate that the attorney has--</DELETED>
        <DELETED>    ``(i) performed a reasonable investigation into 
        the circumstances that gave rise to the petition; and</DELETED>
        <DELETED>    ``(ii) determined that the petition--</DELETED>
                <DELETED>    ``(I) is well grounded in fact; 
                and</DELETED>
                <DELETED>    ``(II) is warranted by existing law or a 
                good faith argument for the extension, modification, or 
                reversal of existing law and does not constitute an 
                abuse under paragraph (1) of this subsection.</DELETED>
<DELETED>    ``(4) The court shall award a debtor all reasonable costs 
in contesting a motion brought by a party in interest under this 
subsection (including reasonable attorneys' fees and actual damages in 
an amount not less than $5,000) if--</DELETED>
        <DELETED>    ``(A) the court does not grant the motion; 
        and</DELETED>
        <DELETED>    ``(B) the court finds that--</DELETED>
                <DELETED>    ``(i) the position of the party that 
                brought the motion was not substantially justified; 
                or</DELETED>
                <DELETED>    ``(ii) the party brought the motion solely 
                for the purpose of coercing a debtor into waiving a 
                right guaranteed to the debtor under this 
                title.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 7 of title 11, United States Code, is amended by 
striking the item relating to section 707 and inserting the 
following:</DELETED>

<DELETED>``707. Dismissal of a case or conversion to a case under 
                            chapter 13.''.

        <DELETED>TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR 
                          CONSUMERS</DELETED>

<DELETED>SEC. 201. ALLOWANCE OF CLAIMS OR INTERESTS.</DELETED>

<DELETED>    Section 502 of title 11, United States Code, is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(k)(1) The court shall award the debtor reasonable 
attorneys' fees and costs if, after an objection is filed by a debtor, 
the court--</DELETED>
        <DELETED>    ``(A) disallows the claim; or</DELETED>
        <DELETED>    ``(B) reduces the claim by an amount greater than 
        5 percent of the amount of the initial claim filed by a party 
        in interest.</DELETED>
<DELETED>    ``(2) If the court finds that the position of a claimant 
under this section is not substantially justified, the court shall, in 
addition to awarding a debtor reasonable attorneys' fees and costs 
under paragraph (1), award additional punitive damages in the amount of 
$5,000.''.</DELETED>

<DELETED>SEC. 202. EXCEPTIONS TO DISCHARGE.</DELETED>

<DELETED>    Section 523 of title 11, United States Code, is amended to 
read as follows:</DELETED>
<DELETED>    ``(d)(1) If a creditor requests a determination of 
dischargeability of a consumer debt under this section and that debt is 
discharged, the court shall award the debtor reasonable attorneys' fees 
and costs.</DELETED>
<DELETED>    ``(2) In addition to making an award to a debtor under 
paragraph (1), if the court finds that the position of a creditor in a 
proceeding covered under this section is not substantially justified, 
the court shall, in addition to making an award of reasonable 
attorneys' fees and costs under paragraph (1), award an amount equal to 
the greater of--</DELETED>
        <DELETED>    ``(A)(i) the amount of actual damages; multiplied 
        by</DELETED>
        <DELETED>    ``(ii) 3; or</DELETED>
        <DELETED>    ``(B) $5,000.''.</DELETED>

<DELETED>SEC. 203. EFFECT OF DISCHARGE.</DELETED>

<DELETED>    Section 524 of title 11, United States Code, is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(i) The failure of a creditor to credit payments 
received under a plan confirmed under this title (including a plan of 
reorganization confirmed under chapter 11 of this title) in the manner 
required by the plan (including crediting the amounts required under 
the plan) shall constitute a violation of an injunction under 
subsection (a)(2).</DELETED>
<DELETED>    ``(j)(1) Except as provided in paragraph (2), a creditor 
may not charge a debtor, or the account of a debtor, for attorneys' 
fees or costs for work performed in connection with a case brought 
under this title.</DELETED>
<DELETED>    ``(2) Any charge made by a creditor in violation of this 
subsection shall constitute a violation of an injunction under 
subsection (a)(2).</DELETED>
<DELETED>    ``(k) An individual who is injured by the failure of a 
creditor to comply with the requirements for a reaffirmation agreement 
under subsections (c) and (d), or by any willful violation of the 
injunction under subsection (a)(2), shall be entitled to recover--
</DELETED>
        <DELETED>    ``(1) the greater of--</DELETED>
                <DELETED>    ``(A)(i) the amount of actual damages; 
                multiplied by</DELETED>
                <DELETED>    ``(ii) 3; or</DELETED>
                <DELETED>    ``(B) $5,000; and</DELETED>
        <DELETED>    ``(2) costs and attorneys' fees.''.</DELETED>

<DELETED>SEC. 204. AUTOMATIC STAY.</DELETED>

<DELETED>    Section 362(h) of title 11, United States Code, is amended 
to read as follows:</DELETED>
<DELETED>    ``(h)(1) An individual who is injured by any willful 
violation of a stay provided in this section shall be entitled to 
recover--</DELETED>
        <DELETED>    ``(A) the greater of--</DELETED>
                <DELETED>    ``(i)(I) the amount of actual damages; 
                multiplied by</DELETED>
                <DELETED>    ``(II) 3; or</DELETED>
                <DELETED>    ``(ii) $5,000; and</DELETED>
        <DELETED>    ``(B) costs and attorneys' fees.</DELETED>
<DELETED>    ``(2) In addition to recovering actual damages, costs, and 
attorneys' fees under paragraph (1), an individual described in 
paragraph (1) may recover punitive damages in appropriate 
circumstances.''.</DELETED>

<DELETED>SEC. 205. WHO MAY BE A DEBTOR.</DELETED>

<DELETED>    Section 727 of title 11, United States Code, is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(F)(1) In any case in which a creditor files a motion to 
deny relief to a debtor under this section and that motion is denied or 
withdrawn, the court shall award the debtor reasonable attorneys' fees 
and costs.</DELETED>
<DELETED>    ``(2) If the court finds that the position of a party 
filing a motion under this section is not substantially justified, the 
court shall assess against the creditor for payment to the debtor a 
payment in an amount equal to the greater of--</DELETED>
        <DELETED>    ``(A)(i) the amount of actual damages; multiplied 
        by</DELETED>
        <DELETED>    ``(ii) 3; or</DELETED>
        <DELETED>    ``(B) $5,000.''.</DELETED>

<DELETED>TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF 
                    THE BANKRUPTCY SYSTEM</DELETED>

<DELETED>SEC. 301. NOTICE OF ALTERNATIVES.</DELETED>

<DELETED>    (a) In General.--Section 342 of title 11, United States 
Code, is amended by striking subsection (b) and inserting the 
following:</DELETED>
<DELETED>    ``(b) Before the commencement of a case under this title 
by an individual whose debts are primarily consumer debts, that 
individual shall be given or obtain (as required in section 521(a)(1), 
as part of the certification process under subchapter 1 of chapter 5 of 
this title) a written notice prescribed by the United States trustee 
for the district in which the petition is filed pursuant to section 586 
of title 28. The notice shall contain the following:</DELETED>
        <DELETED>    ``(1) A brief description of chapters 7, 11, 12, 
        and 13 of this title and the general purpose, benefits, and 
        costs of proceeding under each of those chapters.</DELETED>
        <DELETED>    ``(2) A brief description of services that may be 
        available to that individual from an independent nonprofit debt 
        counseling service.</DELETED>
        <DELETED>    ``(3)(A) The name, address, and telephone number 
        of each nonprofit debt counseling service with an office 
        located in the district in which the petition is filed, if 
        any.</DELETED>
        <DELETED>    ``(B) Any nonprofit debt counseling service 
        described in subparagraph (A) that has registered with the 
        clerk of the bankruptcy court on or before December 10 of the 
        preceding year shall be included in the list referred to in 
        that clause, unless the chief bankruptcy judge of the district 
        involved, after giving notice to the debt counseling service 
        and the United States trustee and opportunity for a hearing, 
        orders, for good cause, that a particular debt counseling 
        service shall not be so listed.''; and</DELETED>
<DELETED>    (b) Debtor's Duties.--Section 521 of title 11, United 
States Code, is amended--</DELETED>
        <DELETED>    (1) by inserting ``(a)'' before ``The debtor 
        shall--'';</DELETED>
        <DELETED>    (2) by striking paragraph (1) and inserting the 
        following:</DELETED>
        <DELETED>    ``(1) file--</DELETED>
                <DELETED>    ``(A) a list of creditors; and</DELETED>
                <DELETED>    ``(B) unless the court orders otherwise--
                </DELETED>
                        <DELETED>    ``(i) a schedule of assets and 
                        liabilities;</DELETED>
                        <DELETED>    ``(ii) a schedule of current 
                        income and current expenditures;</DELETED>
                        <DELETED>    ``(iii) a statement of the 
                        debtor's financial affairs and, if applicable, 
                        a certificate--</DELETED>
                                <DELETED>    ``(I) of an attorney whose 
                                name is on the petition as the attorney 
                                for the debtor or any bankruptcy 
                                petition preparer signing the petition 
                                pursuant to section 110(b)(1) of this 
                                title indicating that such attorney or 
                                bankruptcy petition preparer delivered 
                                to the debtor any notice required by 
                                section 342(b) of this title; 
                                or</DELETED>
                                <DELETED>    ``(II) if no attorney for 
                                the debtor is indicated and no 
                                bankruptcy petition preparer signed the 
                                petition, of the debtor that such 
                                notice was obtained and read by the 
                                debtor;</DELETED>
                        <DELETED>    ``(iv) copies of any Federal tax 
                        returns, including any schedules or 
                        attachments, filed by the debtor for the 3-year 
                        period preceding the order for 
                        relief;</DELETED>
                        <DELETED>    ``(v) copies of all payment 
                        advices or other evidence of payment, if any, 
                        received by the debtor from any employer of the 
                        debtor in the period 60 days prior to the 
                        filing of the petition;</DELETED>
                        <DELETED>    ``(vi) a statement of the amount 
                        of projected monthly net income, itemized to 
                        show how calculated;</DELETED>
                        <DELETED>    ``(vii) if applicable, any 
                        statement under paragraphs (3) and (4) of 
                        section 109(h); and</DELETED>
                        <DELETED>    ``(viii) a statement disclosing 
                        any reasonably anticipated increase in income 
                        or expenditures over the 12-month period 
                        following the date of filing;''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(b)(1) At any time, a creditor, in the case of an 
individual under chapter 7 or 13, may file with the court notice that 
the creditor requests the petition, schedules, and a statement of 
affairs filed by the debtor in the case and the court shall make those 
documents available to the creditor who requests those 
documents.</DELETED>
<DELETED>    ``(2) At any time, a creditor, in a case under chapter 13, 
may file with the court notice that the creditor requests the plan 
filed by the debtor in the case and the court shall make that plan 
available to the creditor who requests that plan.</DELETED>
<DELETED>    ``(c) An individual debtor in a case under chapter 7 or 13 
shall file with the court--</DELETED>
        <DELETED>    ``(1) at the time filed with the taxing authority, 
        all tax returns, including any schedules or attachments, with 
        respect to the period from the commencement of the case until 
        such time as the case is closed;</DELETED>
        <DELETED>    ``(2) at the time filed with the taxing authority, 
        all tax returns, including any schedules or attachments, that 
        were not filed with the taxing authority when the schedules 
        under subsection (a)(1) were filed with respect to the period 
        that is 3 years before the order for relief;</DELETED>
        <DELETED>    ``(3) any amendments to any of the tax returns, 
        including schedules or attachments, described in paragraph (1) 
        or (2); and</DELETED>
        <DELETED>    ``(4) in a case under chapter 13, a statement 
        subject to the penalties of perjury by the debtor of the 
        debtor's income and expenditures in the preceding tax year and 
        monthly income, that shows how the amounts are calculated--
        </DELETED>
                <DELETED>    ``(A) beginning on the date that is the 
                later of 90 days after the close of the debtor's tax 
                year or 1 year after the order for relief, unless a 
                plan has been confirmed; and</DELETED>
                <DELETED>    ``(B) thereafter on or before the date 
                that is 45 days before each anniversary of the 
                confirmation of the plan until the case is 
                closed.</DELETED>
<DELETED>    ``(d)(1) A statement referred to in subsection (c)(4) 
shall disclose--</DELETED>
        <DELETED>    ``(A) the amount and sources of income of the 
        debtor;</DELETED>
        <DELETED>    ``(B) the identity of any persons responsible with 
        the debtor for the support of any dependents of the debtor; 
        and</DELETED>
        <DELETED>    ``(C) any persons who contributed and the amount 
        contributed to the household in which the debtor 
        resides.</DELETED>
<DELETED>    ``(2) The tax returns, amendments, and statement of income 
and expenditures described in paragraph (1) shall be available to the 
United States trustee, any bankruptcy administrator, any trustee, and 
any party in interest for inspection and copying.''.</DELETED>
<DELETED>    (c) Title 28.--Section 586(a) of title 28, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) in paragraph (5) by striking ``and'' at the 
        end;</DELETED>
        <DELETED>    (2) in paragraph (6) by striking the period at the 
        end and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(7) on or before January 1 of each calendar 
        year, and also not later than 30 days after any change in the 
        nonprofit debt counseling services registered with the 
        bankruptcy court, prescribe and make available on request the 
        notice described in section 342(b)(3) of title 11 for each 
        district included in the region.''.</DELETED>

<DELETED>SEC. 302. FAIR TREATMENT OF SECURED CREDITORS UNDER CHAPTER 
              13.</DELETED>

<DELETED>    Section 1325(a)(5)(B)(i) of title 11, United States Code, 
is amended to read as follows:</DELETED>
                <DELETED>    ``(B)(i) the plan provides that the holder 
                of such claim retain the lien securing such claim until 
                the debt that is the subject of the claim is fully paid 
                for, as provided under the plan; and''.</DELETED>

<DELETED>SEC. 303. DISCOURAGEMENT OF BAD FAITH REPEAT 
              FILINGS.</DELETED>

<DELETED>    Section 362 of title 11, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (c)--</DELETED>
                <DELETED>    (A) by inserting ``(1)'' before ``Except 
                as'';</DELETED>
                <DELETED>    (B) by striking ``(1) the stay'' and 
                inserting ``(A) the stay'';</DELETED>
                <DELETED>    (C) by striking ``(2) the stay'' and 
                inserting ``(B) the stay'';</DELETED>
                <DELETED>    (D) by striking ``(A) the time'' and 
                inserting ``(i) the time''; and</DELETED>
                <DELETED>    (E) by striking ``(B) the time'' and 
                inserting ``(ii) the time''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(2) Except as provided in subsections (d) through (f), 
the stay under subsection (a) with respect to any action taken with 
respect to a debt or property securing such debt or with respect to any 
lease shall terminate with respect to the debtor on the 30th day after 
the filing of the later case if--</DELETED>
        <DELETED>    ``(A) a single or joint case is filed by or 
        against an individual debtor under chapter 7, 11, or 13; 
        and</DELETED>
        <DELETED>    ``(B) a single or joint case of that debtor (other 
        than a case refiled under a chapter other than chapter 7 after 
        dismissal under section 707(b) of this title) was pending 
        during the preceding year but was dismissed.</DELETED>
<DELETED>    ``(3) If a party in interest so requests, the court may 
extend the stay in a particular case with respect to 1 or more 
creditors (subject to such conditions or limitations as the court may 
impose) after providing notice and a hearing completed before the 
expiration of the 30-day period described in paragraph (2) only if the 
party in interest demonstrates that the filing of the later case is in 
good faith with respect to the creditors to be stayed.</DELETED>
<DELETED>    ``(4) A case shall be presumed to have not been filed in 
good faith (except that such presumption may be rebutted by clear and 
convincing evidence to the contrary)--</DELETED>
        <DELETED>    ``(A) with respect to the creditors involved, if--
        </DELETED>
                <DELETED>    ``(i) more than 1 previous case under any 
                of chapters 7, 11, or 13 of this title in which the 
                individual was a debtor was pending during the 1-year 
                period described in paragraph (1);</DELETED>
                <DELETED>    ``(ii) a previous case under any of 
                chapters 7, 11, or 13 of this title in which the 
                individual was a debtor was dismissed within the period 
                specified in paragraph (2) after--</DELETED>
                        <DELETED>    ``(I) the debtor, after having 
                        received from the court a request to do so, 
                        failed to file or amend the petition or other 
                        documents as required by this title; 
                        or</DELETED>
                        <DELETED>    ``(II) the debtor, without 
                        substantial excuse, failed to perform the terms 
                        of a plan that was confirmed by the court; 
                        or</DELETED>
                <DELETED>    ``(iii)(I) during the period commencing 
                with the dismissal of the next most previous case under 
                chapter 7, 11, or 13 there has not been a substantial 
                change in the financial or personal affairs of the 
                debtor;</DELETED>
                <DELETED>    ``(II) if the case is a chapter 7 case, 
                there is no other reason to conclude that the later 
                case will be concluded with a discharge; or</DELETED>
                <DELETED>    ``(III) if the case is a chapter 11 or 13 
                case, there is not a confirmed plan that will be fully 
                performed; and</DELETED>
        <DELETED>    ``(B) with respect to any creditor that commenced 
        an action under subsection (d) in a previous case in which the 
        individual was a debtor, if, as of the date of dismissal of 
        that case, that action was still pending or had been resolved 
        by terminating, conditioning, or limiting the stay with respect 
        to actions of that creditor.</DELETED>
<DELETED>    ``(5)(A) If a request is made for relief from the stay 
under subsection (a) with respect to real or personal property of any 
kind, and the request is granted in whole or in part, the court may, in 
addition to making any other order under this subsection, order that 
the relief so granted shall be in rem either--</DELETED>
        <DELETED>    ``(i) for a definite period of not less than 1 
        year; or</DELETED>
        <DELETED>    ``(ii) indefinitely.</DELETED>
<DELETED>    ``(B)(i) After an order is issued under subparagraph (A), 
the stay under subsection (a) shall not apply to any property subject 
to such an in rem order in any case of the debtor.</DELETED>
<DELETED>    ``(ii) If an in rem order issued under subparagraph (A) so 
provides, the stay shall, in addition to being inapplicable to the 
debtor involved, not apply with respect to an entity under this title 
if--</DELETED>
                <DELETED>    ``(I) the entity had reason to know of the 
                order at the time that the entity obtained an interest 
                in the property affected; or</DELETED>
                <DELETED>    ``(II) the entity was notified of the 
                commencement of the proceeding for relief from the 
                stay, and at the time of the notification, no case in 
                which the entity was a debtor was pending.</DELETED>
<DELETED>    ``(6) For purposes of this section, a case is pending 
during the period beginning with the issuance of the order for relief 
and ending at such time as the case involved is closed.''.</DELETED>

<DELETED>SEC. 304. TIMELY FILING AND CONFIRMATION OF PLANS UNDER 
              CHAPTER 13.</DELETED>

<DELETED>    (a) Filing of Plan.--Section 1321 of title 11, United 
States Code, is amended to read as follows:</DELETED>
<DELETED>``Sec. 1321. Filing of plan</DELETED>
<DELETED>    ``The debtor shall file a plan not later than 90 days 
after the order for relief under this chapter, except that the court 
may extend such period if the need for an extension is attributable to 
circumstances for which the debtor should not justly be held 
accountable.''.</DELETED>
<DELETED>    (b) Confirmation of Hearing.--Section 1324 of title 11, 
United States Code, is amended by adding at the end the following: 
``That hearing shall be held not later than 45 days after the filing of 
the plan, unless the court, after providing notice and a hearing, 
orders otherwise.''.</DELETED>

<DELETED>SEC. 305. APPLICATION OF THE CODEBTOR STAY ONLY WHEN THE STAY 
              PROTECTS THE DEBTOR.</DELETED>

<DELETED>    Section 1301(b) of title 11, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by inserting ``(1)'' after ``(b)''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(2)(A) Notwithstanding subsection (c) and except as 
provided in subparagraph (B), in any case in which the debtor did not 
receive the consideration for the claim held by a creditor, the stay 
provided by subsection (a) shall apply to that creditor for a period 
not to exceed 30 days beginning on the date of the order for relief, to 
the extent the creditor proceeds against--</DELETED>
        <DELETED>    ``(i) the individual that received that 
        consideration; or</DELETED>
        <DELETED>    ``(ii) property not in the possession of the 
        debtor that secures that claim.</DELETED>
<DELETED>    ``(B) In any case described in subparagraph (A), a 
creditor may not proceed against an individual described in 
subparagraph (A)(i) or property described in subparagraph (A)(ii), if 
the debtor who did not receive consideration for the property that is 
the subject of the claim is able to demonstrate that the receipt of the 
property was not part of a scheme to defraud or hinder any 
creditor.</DELETED>
<DELETED>    ``(3) Notwithstanding subsection (c), the stay provided by 
subsection (a) shall terminate as of the date of confirmation of the 
plan, in any case in which the plan of the debtor provides that the 
debtor's interest in personal property subject to a lease with respect 
to which the debtor is the lessee will be surrendered or abandoned or 
no payments will be made under the plan on account of the debtor's 
obligations under the lease.''.</DELETED>

<DELETED>SEC. 306. IMPROVED BANKRUPTCY STATISTICS.</DELETED>

<DELETED>    (a) Amendment.--Chapter 6 of part I of title 28, United 
States Code, is amended by adding at the end the following:</DELETED>
<DELETED>``Sec. 159. Bankruptcy statistics</DELETED>
<DELETED>    ``(a) The clerk of each district shall compile statistics 
regarding individual debtors with primarily consumer debts seeking 
relief under chapters 7, 11, and 13 of title 11. Those statistics shall 
be in a form prescribed by the Director of the Administrative Office of 
the United States Courts (referred to in this section as the 
`Office').</DELETED>
<DELETED>    ``(b) The Director shall--</DELETED>
        <DELETED>    ``(1) compile the statistics referred to in 
        subsection (a);</DELETED>
        <DELETED>    ``(2) make the statistics available to the public; 
        and</DELETED>
        <DELETED>    ``(3) not later than October 31, 1998, and 
        annually thereafter, prepare, and submit to Congress a report 
        concerning the information collected under subsection (a) that 
        contains an analysis of the information.</DELETED>
<DELETED>    ``(c) The compilation required under subsection (b) 
shall--</DELETED>
        <DELETED>    ``(1) be itemized, by chapter, with respect to 
        title 11;</DELETED>
        <DELETED>    ``(2) be presented in the aggregate and for each 
        district; and</DELETED>
        <DELETED>    ``(3) include information concerning--</DELETED>
                <DELETED>    ``(A) the total assets and total 
                liabilities of the debtors described in subsection (a), 
                and in each category of assets and liabilities, as 
                reported in the schedules prescribed pursuant to 
                section 2075 of this title and filed by those 
                debtors;</DELETED>
                <DELETED>    ``(B) the current total monthly income, 
                projected monthly net income, and average income and 
                average expenses of those debtors as reported on the 
                schedules and statements that each such debtor files 
                under sections 111, 521, and 1322 of title 
                11;</DELETED>
                <DELETED>    ``(C) the aggregate amount of debt 
                discharged in the reporting period, determined as the 
                difference between the total amount of debt and 
                obligations of a debtor reported on the schedules and 
                the amount of such debt reported in categories which 
                are predominantly nondischargeable;</DELETED>
                <DELETED>    ``(D) the average period of time between 
                the filing of the petition and the closing of the 
                case;</DELETED>
                <DELETED>    ``(E) for the reporting period--</DELETED>
                        <DELETED>    ``(i) the number of cases in which 
                        a reaffirmation was filed; and</DELETED>
                        <DELETED>    ``(ii)(I) the total number of 
                        reaffirmations filed;</DELETED>
                        <DELETED>    ``(II) of those cases in which a 
                        reaffirmation was filed, the number in which 
                        the debtor was not represented by an attorney; 
                        and</DELETED>
                        <DELETED>    ``(III) of those cases, the number 
                        of cases in which the reaffirmation was 
                        approved by the court;</DELETED>
                <DELETED>    ``(F) with respect to cases filed under 
                chapter 13 of title 11, for the reporting period--
                </DELETED>
                        <DELETED>    ``(i)(I) the number of cases in 
                        which a final order was entered determining the 
                        value of property securing a claim in an amount 
                        less than the amount of the claim; 
                        and</DELETED>
                        <DELETED>    ``(II) the number of final orders 
                        determining the value of property securing a 
                        claim issued;</DELETED>
                        <DELETED>    ``(ii) the number of cases 
                        dismissed for failure to make payments under 
                        the plan; and</DELETED>
                        <DELETED>    ``(iii) the number of cases in 
                        which the debtor filed another case within the 
                        6 years previous to the filing; and</DELETED>
                <DELETED>    ``(G) the extent of creditor misconduct 
                and any amount of punitive damages awarded by the court 
                for creditor misconduct.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 6 of title 28, United States Code, is amended by 
adding at the end the following:</DELETED>

<DELETED>``159. Bankruptcy statistics.''.
<DELETED>    (c) Effective Date.--The amendments made by this section 
shall take effect 18 months after the date of enactment of this 
Act.</DELETED>

<DELETED>SEC. 307. AUDIT PROCEDURES.</DELETED>

<DELETED>    (a) Amendment.--Section 586 of title 28, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) in subsection (a), as amended by section 301 
        of this Act, by striking paragraph (6) and inserting the 
        following:</DELETED>
        <DELETED>    ``(6) make such reports as the Attorney General 
        directs, including the results of audits performed under 
        subsection (f); and''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(f)(1)(A) The Attorney General shall establish 
procedures for the auditing of the accuracy and completeness of 
petitions, schedules, and other information which the debtor is 
required to provide under sections 521 and 1322 of title 11, and, if 
applicable, section 111 of title 11, in individual cases filed under 
chapter 7 or 13 of such title.</DELETED>
<DELETED>    ``(B) The audits described in subparagraph (A) shall be 
made in accordance with generally accepted auditing standards and 
performed by independent certified public accountants or independent 
licensed public accountants. Those procedures shall--</DELETED>
        <DELETED>    ``(i) establish a method of selecting appropriate 
        qualified persons to contract with the United States trustee to 
        perform those audits;</DELETED>
        <DELETED>    ``(ii) establish a method of randomly selecting 
        cases to be audited according to generally accepted auditing 
        standards, except that not less than 1 out of every 50 cases in 
        each Federal judicial district shall be selected for 
        audit;</DELETED>
        <DELETED>    ``(iii) require audits for schedules of income and 
        expenses which reflect greater than average variances from the 
        statistical norm of the district in which the schedules were 
        filed; and</DELETED>
        <DELETED>    ``(iv) establish procedures for--</DELETED>
                <DELETED>    ``(I) reporting the results of those 
                audits and any material misstatement of income, 
                expenditures, or assets of a debtor to the Attorney 
                General, the United States Attorney and the court, as 
                appropriate;</DELETED>
                <DELETED>    ``(II) providing, not less frequently than 
                annually, public information concerning the aggregate 
                results of such audits including the percentage of 
                cases, by district, in which a material misstatement of 
                income or expenditures is reported; and</DELETED>
                <DELETED>    ``(III) fully funding those audits, 
                including procedures requiring each debtor with 
                sufficient available income or assets to contribute to 
                the payment for those audits, as an administrative 
                expense or otherwise.</DELETED>
<DELETED>    ``(2) The United States trustee for each district is 
authorized to contract with auditors to perform audits in cases 
designated by the United States trustee according to the procedures 
established under paragraph (1) of this subsection.</DELETED>
<DELETED>    ``(3) According to procedures established under paragraph 
(1), upon request of a duly appointed auditor, the debtor shall cause 
the accounts, papers, documents, financial records, files and all other 
papers, things, or property belonging to the debtor as the auditor 
requests and that are reasonably necessary to facilitate the audit to 
be made available for inspection and copying.</DELETED>
<DELETED>    ``(4)(A) The report of each audit conducted under this 
subsection shall be filed with the court, the Attorney General, and the 
United States Attorney, as required under procedures established by the 
Attorney General under paragraph (1).</DELETED>
<DELETED>    ``(B) If a material misstatement of income or expenditures 
or of assets is reported under subparagraph (A), a statement specifying 
that misstatement shall be filed with the court and the United States 
trustee shall--</DELETED>
        <DELETED>    ``(i) give notice thereof to the creditors in the 
        case; and</DELETED>
        <DELETED>    ``(ii) in an appropriate case, in the opinion of 
        the United States trustee, that requires investigation with 
        respect to possible criminal violations, the United States 
        Attorney for the district.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendments made by this section 
shall take effect 18 months after the date of enactment of this 
Act.</DELETED>

<DELETED>SEC. 308. CREDITOR REPRESENTATION AT FIRST MEETING OF 
              CREDITORS.</DELETED>

<DELETED>    Section 341(c) of title 11, United States Code, is amended 
by inserting after the first sentence the following: ``Notwithstanding 
any local court rule, provision of a State constitution, any other 
Federal or State law that is not a bankruptcy law, or other requirement 
that representation at the meeting of creditors under subsection (a) be 
by an attorney, a creditor holding a consumer debt or any 
representative of the creditor (which may include an entity or an 
employee of an entity and may be a representative for more than one 
creditor) shall be permitted to appear at and participate in the 
meeting of creditors in a case under chapter 7 or 13, either alone or 
in conjunction with an attorney for the creditor. Nothing in this 
subsection shall be construed to require any creditor to be represented 
by an attorney at any meeting of creditors.''.</DELETED>

<DELETED>SEC. 309. FAIR NOTICE FOR CREDITORS IN CHAPTER 7 AND 13 
              CASES.</DELETED>

<DELETED>    Section 342 of title 11, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (c)--</DELETED>
                <DELETED>    (A) by striking ``, but the failure of 
                such notice to contain such information shall not 
                invalidate the legal effect of such notice''; 
                and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
<DELETED>    ``(d)(1) If the credit agreement between the debtor and 
the creditor or the last communication before the filing of the 
petition in a voluntary case from the creditor to a debtor who is an 
individual states an account number of the debtor that is the current 
account number of the debtor with respect to any debt held by the 
creditor against the debtor, the debtor shall include that account 
number in any notice to the creditor required to be given under this 
title.</DELETED>
<DELETED>    ``(2) If the creditor has specified to the debtor, in the 
last communication before the filing of the petition, an address at 
which the creditor wishes to receive correspondence regarding the 
debtor's account, any notice to the creditor required to be given by 
the debtor under this title shall be given at such address.</DELETED>
<DELETED>    ``(3) For purposes of this section, the term `notice' 
shall include--</DELETED>
        <DELETED>    ``(A) any correspondence from the debtor to the 
        creditor after the commencement of the case;</DELETED>
        <DELETED>    ``(B) any statement of the debtor's intention 
        under section 521(a)(2) of this title;</DELETED>
        <DELETED>    ``(C) notice of the commencement of any proceeding 
        in the case to which the creditor is a party; and</DELETED>
        <DELETED>    ``(D) any notice of a hearing under section 1324 
        of this title.</DELETED>
<DELETED>    ``(e)(1) At any time, a creditor, in a case of an 
individual under chapter 7 or 13, may file with the court and serve on 
the debtor a notice of the address to be used to notify the creditor in 
that case.</DELETED>
<DELETED>    ``(2) If the court or the debtor is required to give the 
creditor notice, 5 days after receipt of the notice under paragraph 
(1), that notice shall be given at that address.</DELETED>
<DELETED>    ``(f) An entity may file with the court a notice stating 
its address for notice in cases under chapter 7 or 13. After the date 
that is 30 days following the filing of that notice, any notice in any 
case filed under chapter 7 or 13 given by the court shall be to that 
address unless specific notice is given under subsection (e) with 
respect to a particular case.</DELETED>
<DELETED>    ``(g)(1) Notice given to a creditor other than as provided 
in this section shall not be effective notice until that notice has 
been brought to the attention of the creditor.</DELETED>
<DELETED>    ``(2) If the creditor has designated a person or 
department to be responsible for receiving notices concerning 
bankruptcy cases and has established reasonable procedures so that 
bankruptcy notices received by the creditor will be delivered to that 
department or person, notice shall not be brought to the attention of 
the creditor until that notice is received by that person or 
department.''.</DELETED>

<DELETED>SEC. 310. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 
              13.</DELETED>

<DELETED>    Section 348(f)(1) of title 11, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in subparagraph (A), by striking ``and'' at 
        the end;</DELETED>
        <DELETED>    (2) in subparagraph (B)--</DELETED>
                <DELETED>    (A) by striking ``in the converted case, 
                with allowed secured claims'' and inserting ``only in a 
                case converted to chapter 11 or 12 but not in a case 
                converted to chapter 7, with allowed secured claims in 
                cases under chapters 11 and 12''; and</DELETED>
                <DELETED>    (B) by striking the period and inserting 
                ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(C) with respect to cases converted from chapter 
        13, the claim of any creditor holding security as of the date 
        of the petition shall continue to be secured by that security 
        unless the full amount of that claim determined under 
        applicable nonbankruptcy law has been paid in full as of the 
        date of conversion, notwithstanding any valuation or 
        determination of the amount of an allowed secured claim made 
        for the purposes of the chapter 13 proceeding.''.</DELETED>

<DELETED>SEC. 311. PROMPT RELIEF FROM STAY IN INDIVIDUAL 
              CASES.</DELETED>

<DELETED>    Section 362(e) of title 11, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by inserting ``(1)'' after ``(e); 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(2) Notwithstanding paragraph (1), in the case of an 
individual filing under chapter 7, 11, or 13, the stay under subsection 
(a) shall terminate on the date that is 60 days after a request is made 
by a party in interest under subsection (d), unless--</DELETED>
        <DELETED>    ``(A) a final decision is rendered by the court 
        during the 60-day period beginning on the date of the request; 
        or</DELETED>
        <DELETED>    ``(B) that 60-day period is extended--</DELETED>
                <DELETED>    ``(i) by agreement of all parties in 
                interest; or</DELETED>
                <DELETED>    ``(ii) by the court for such specific 
                period of time as the court finds is required for good 
                cause.''.</DELETED>

<DELETED>SEC. 312. DISMISSAL FOR FAILURE TO FILE SCHEDULES TIMELY OR 
              PROVIDE REQUIRED INFORMATION.</DELETED>

<DELETED>    Section 707 of title 11, United States Code, as amended by 
section 102 of this Act, is further amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(c)(1) Notwithstanding subsection (a), and subject to 
paragraph (2), if an individual debtor in a voluntary case under 
chapter 7 or 13 fails to file all of the information required under 
section 521(a)(1) of this title within 45 days after the filing of the 
petition commencing the case, the case shall be automatically dismissed 
effective on the 46th day after the filing of the petition.</DELETED>
<DELETED>    ``(2) With respect to a case described in paragraph (1), 
any party in interest may request the court to enter an order 
dismissing the case. The court shall, if so requested, enter an order 
of dismissal not later than 5 days after that request.</DELETED>
<DELETED>    ``(3) Upon request of the debtor made within 45 days after 
the filing of the petition commencing a case described in paragraph 
(1), the court may allow the debtor an additional period of not to 
exceed 20 days to file the information required under section 521(a)(1) 
of this title if the court finds justification for extending the period 
for the filing.''.</DELETED>

<DELETED>SEC. 313. ADEQUATE TIME FOR PREPARATION FOR A HEARING ON 
              CONFIRMATION OF THE PLAN.</DELETED>

<DELETED>    Section 1324 of title 11, United States Code, is amended--
</DELETED>
        <DELETED>    (1) by striking ``After'' and inserting the 
        following:</DELETED>
<DELETED>    ``(a) Except as provided in subsection (b) and after''; 
and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(b) If not later than 5 days after receiving notice of a 
hearing on confirmation of the plan, a creditor objects to the 
confirmation of the plan, the hearing on confirmation of the plan may 
be held no earlier than 20 days after the first meeting of creditors 
under section 341(a) of this title.''.</DELETED>

           <DELETED>TITLE IV--TECHNICAL CORRECTIONS</DELETED>

<DELETED>SEC. 401. DEFINITIONS.</DELETED>

<DELETED>    Section 101 of title 11, United States Code, is amended--
</DELETED>
        <DELETED>    (1) by striking ``In this title--'' and inserting 
        ``In this title:'';</DELETED>
        <DELETED>    (2) in each paragraph, by inserting ``The term'' 
        after the paragraph designation;</DELETED>
        <DELETED>    (3) in paragraph (35)(B), by striking ``paragraphs 
        (21B) and (33)(A)'' and inserting ``paragraphs (23) and 
        (35)'';</DELETED>
        <DELETED>    (4) in each of paragraphs (35A) and (38), by 
        striking ``; and'' at the end and inserting a period;</DELETED>
        <DELETED>    (5) in paragraph (51B)--</DELETED>
                <DELETED>    (A) by inserting ``who is not a family 
                farmer'' after ``debtor'' the first place it appears; 
                and</DELETED>
                <DELETED>    (B) by striking ``thereto having 
                aggregate'' and all that follows through the end of the 
                paragraph;</DELETED>
        <DELETED>    (6) by amending paragraph (54) to read as 
        follows:</DELETED>
        <DELETED>    ``(54) The term `transfer' means--</DELETED>
                <DELETED>    ``(A) the creation of a lien;</DELETED>
                <DELETED>    ``(B) the retention of title as a security 
                interest;</DELETED>
                <DELETED>    ``(C) the foreclosure of a debtor's equity 
                of redemption; or</DELETED>
                <DELETED>    ``(D) each mode, direct or indirect 
                absolute or conditional, voluntary or involuntary, of 
                disposing of or parting with property or with an 
                interest in property;'';</DELETED>
        <DELETED>    (7) in each of paragraphs (1) through (35), in 
        each of paragraphs (36) and (37), and in each of paragraphs 
        (40) through (55) (including paragraph (54), as added by 
        paragraph (6) of this section), by striking the semicolon at 
        the end and inserting a period; and</DELETED>
        <DELETED>    (8) by redesignating paragraphs (4) through (55) 
        in entirely numerical sequence, so as to result in numerical 
        paragraph designations of (4) through (68).</DELETED>

<DELETED>SEC. 402. ADJUSTMENT OF DOLLAR AMOUNTS.</DELETED>

<DELETED>    Section 104 of title 11, United States Code, is amended by 
inserting ``522(f)(3),'' after ``522(d),'' each place it 
appears.</DELETED>

<DELETED>SEC. 403. EXTENSION OF TIME.</DELETED>

<DELETED>    Section 108(c)(2) of title 11, United States Code, is 
amended by striking ``922'' and all that follows through ``or'', and 
inserting ``922, 1201, or''.</DELETED>

<DELETED>SEC. 404. WHO MAY BE A DEBTOR.</DELETED>

<DELETED>    Section 109(b)(2) of title 11, United States Code, is 
amended by striking ``subsection (c) or (d) of''.</DELETED>

<DELETED>SEC. 405. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY 
              PREPARE BANKRUPTCY PETITIONS.</DELETED>

<DELETED>    Section 110(j)(3) of title 11, United States Code, is 
amended by striking ``attorney's'' and inserting ``attorneys' 
''.</DELETED>

<DELETED>SEC. 406. LIMITATION ON COMPENSATION OF PROFESSIONAL 
              PERSONS.</DELETED>

<DELETED>    Section 328(a) of title 11, United States Code, is amended 
by inserting ``on a fixed or percentage fee basis,'' after ``hourly 
basis,''.</DELETED>

<DELETED>SEC. 407. SPECIAL TAX PROVISIONS.</DELETED>

<DELETED>    Section 346(g)(1)(C) of title 11, United States Code, is 
amended by striking ``, except'' and all that follows through 
``1986''.</DELETED>

<DELETED>SEC. 408. EFFECT OF CONVERSION.</DELETED>

<DELETED>    Section 348(f)(2) of title 11, United States Code, is 
amended by inserting ``of the estate'' after ``property'' the first 
place it appears.</DELETED>

<DELETED>SEC. 409. AUTOMATIC STAY.</DELETED>

<DELETED>    Section 362(b) of title 11, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (17), by striking ``or'' at the 
        end;</DELETED>
        <DELETED>    (2) in paragraph (18), by striking the period at 
        the end and inserting ``; or''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(19) under subsection (a) of this section of any 
        transfer that is not avoidable under section 544 and that is 
        not avoidable under section 549.''.</DELETED>

<DELETED>SEC. 410. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.</DELETED>

<DELETED>    Section 365 of title 11, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (b)(2)--</DELETED>
                <DELETED>    (A) in subparagraph (C), by striking 
                ``or'' at the end; and</DELETED>
                <DELETED>    (B) by striking subparagraph (D) and 
                inserting the following:</DELETED>
                <DELETED>    ``(D) the satisfaction of any penalty rate 
                or penalty provision relating to a default arising from 
                a failure to perform nonmonetary obligations under an 
                executory contract or under an unexpired lease of real 
                or personal property;</DELETED>
                <DELETED>    ``(E) the satisfaction of any provision 
                (other than a penalty rate or penalty provision) 
                relating to a default arising from any failure to 
                perform nonmonetary obligations under an unexpired 
                lease of real property, if it is impossible for the 
                trustee to cure such default by performing nonmonetary 
                acts at and after the time of assumption; or</DELETED>
                <DELETED>    ``(F) the satisfaction of any provision 
                (other than a penalty rate or penalty provision) 
                relating to a default arising from any failure to 
                perform nonmonetary obligations under an executory 
                contract, if it is impossible for the trustee to cure 
                such default by performing nonmonetary acts at and 
                after the time of assumption and if the court 
                determines, based on the equities of the case, that 
                paragraph (1) should not apply with respect to such 
                default.'';</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (2), by adding ``or'' at 
                the end;</DELETED>
                <DELETED>    (B) in paragraph (3), by striking ``or'' 
                at the end and inserting a period; and</DELETED>
                <DELETED>    (C) by striking paragraph (4);</DELETED>
        <DELETED>    (3) in subsection (d)--</DELETED>
                <DELETED>    (A) by striking paragraphs (5) through 
                (9); and</DELETED>
                <DELETED>    (B) by redesignating paragraph (10) as 
                paragraph (5); and</DELETED>
        <DELETED>    (4) in subsection (f)(1), by striking ``; except 
        that'' and all that follows through the end of the paragraph 
        and inserting a period.</DELETED>

<DELETED>SEC. 411. AMENDMENT TO TABLE OF SECTIONS.</DELETED>

<DELETED>    The table of sections for chapter 5 of title 11, United 
States Code, is amended by striking the item relating to section 556 
and inserting the following:</DELETED>

<DELETED>``556. Contractual right to liquidate a commodities contract 
                            or forward contract.''.

<DELETED>SEC. 412. ALLOWANCE OF ADMINISTRATIVE EXPENSES.</DELETED>

<DELETED>    Section 503(b)(4) of title 11, United States Code, is 
amended by inserting ``subparagraph (A), (B), (C), (D), or (E) of'' 
before ``paragraph (3)''.</DELETED>

<DELETED>SEC. 413. PRIORITIES.</DELETED>

<DELETED>    Section 507(a) of title 11, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (3)(B), by striking the semicolon 
        at the end and inserting a period; and</DELETED>
        <DELETED>    (2) in paragraph (7), by inserting ``unsecured'' 
        after ``allowed''.</DELETED>

<DELETED>SEC. 414. EXEMPTIONS.</DELETED>

<DELETED>    Section 522 of title 11, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (f)(1)(A)(ii)(II)--</DELETED>
                <DELETED>    (A) by striking ``includes a liability 
                designated as'' and inserting ``is for a liability that 
                is designated as, and is actually in the nature of,''; 
                and</DELETED>
                <DELETED>    (B) by striking ``, unless'' and all that 
                follows through ``support,''; and</DELETED>
        <DELETED>    (2) in subsection (g)(2), by striking ``subsection 
        (f)(2)'' and inserting ``subsection (f)(1)(B)''.</DELETED>

<DELETED>SEC. 415. EXCEPTIONS TO DISCHARGE.</DELETED>

<DELETED>    Section 523 of title 11, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (a)(3), by striking ``or (6)'' 
        each place it appears and inserting ``(6), or (15)'';</DELETED>
        <DELETED>    (2) as amended by section 304(e) of Public Law 
        103-394 (108 Stat. 4133), in paragraph (15)--</DELETED>
                <DELETED>    (A) by inserting ``or'' after the 
                semicolon at the end; and</DELETED>
                <DELETED>    (B) by transferring such paragraph so as 
                to insert it after paragraph (14) of subsection 
                (a);</DELETED>
        <DELETED>    (3) in paragraph (9), by inserting ``, watercraft, 
        or aircraft'' after ``motor vehicle'';</DELETED>
        <DELETED>    (4) in subsection (a)(15), as so redesignated by 
        paragraph (2) of this subsection, by inserting ``to a spouse, 
        former spouse, or child of the debtor and'' after 
        ``(15)'';</DELETED>
        <DELETED>    (5) in subsection (a)(17)--</DELETED>
                <DELETED>    (A) by striking ``by a court'' and 
                inserting ``on a prisoner by any court'';</DELETED>
                <DELETED>    (B) by striking ``section 1915 (b) or 
                (f)'' and inserting ``subsection (b) or (f)(2) of 
                section 1915''; and</DELETED>
                <DELETED>    (C) by inserting ``(or a similar non-
                Federal law)'' after ``title 28'' each place it 
                appears; and</DELETED>
        <DELETED>    (6) in subsection (e), by striking ``a insured'' 
        and inserting ``an insured''.</DELETED>

<DELETED>SEC. 416. EFFECT OF DISCHARGE.</DELETED>

<DELETED>    Section 524(a)(3) of title 11, United States Code, is 
amended by striking ``section 523'' and all that follows through ``or 
that'' and inserting ``section 523, 1228(a)(1), or 1328(a)(1) of this 
title, or that''.</DELETED>

<DELETED>SEC. 417. PROTECTION AGAINST DISCRIMINATORY 
              TREATMENT.</DELETED>

<DELETED>    Section 525(c) of title 11, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by inserting ``student'' 
        before ``grant'' the second place it appears; and</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``the program 
        operated under part B, D, or E of'' and inserting ``any program 
        operated under''.</DELETED>

<DELETED>SEC. 418. PROPERTY OF THE ESTATE.</DELETED>

<DELETED>    Section 541(b) of title 11, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (4)--</DELETED>
                <DELETED>    (A) in subparagraph (B)(ii), by inserting 
                ``365 or'' before ``542''; and</DELETED>
                <DELETED>    (B) by adding ``or'' at the end.</DELETED>

<DELETED>SEC. 419. LIMITATIONS ON AVOIDING POWERS.</DELETED>

<DELETED>    Section 546 of title 11, United States Code, is amended by 
redesignating the second subsection (g) (as added by section 222(a) of 
the Bankruptcy Reform Act of 1994; 108 Stat. 4129) as subsection 
(h).</DELETED>

<DELETED>SEC. 420. PREFERENCES.</DELETED>

<DELETED>    Section 547 of title 11, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (b), by striking ``subsection 
        (c)'' and inserting ``subsections (c) and (i)''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(i) If the trustee avoids under subsection (b) a 
security interest given between 90 days and 1 year before the date of 
the filing of the petition, by the debtor to an entity that is not an 
insider for the benefit of a creditor that is an insider, such security 
interest shall be considered to be avoided under this section only with 
respect to the creditor that is an insider.''.</DELETED>

<DELETED>SEC. 421. POSTPETITION TRANSACTIONS.</DELETED>

<DELETED>    Section 549(c) of title 11, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by inserting ``an interest in'' after 
        ``transfer of'';</DELETED>
        <DELETED>    (2) by striking ``such property'' and inserting 
        ``such real property''; and</DELETED>
        <DELETED>    (3) by striking ``the interest'' and inserting 
        ``such interest''.</DELETED>

<DELETED>SEC. 422. TECHNICAL AMENDMENT.</DELETED>

<DELETED>    Section 552(b)(1) of title 11, United States Code, is 
amended by striking ``product'' each place it appears and inserting 
``products''.</DELETED>

<DELETED>SEC. 423. SETOFF.</DELETED>

<DELETED>    Section 553(b)(1) of title 11, United States Code, is 
amended by striking ``362(b)(14)'' and inserting 
``362(b)(17)''.</DELETED>

<DELETED>SEC. 424. DISPOSITION OF PROPERTY OF THE ESTATE.</DELETED>

<DELETED>    Section 726(b) of title 11, United States Code, is amended 
by striking ``1009,''.</DELETED>

<DELETED>SEC. 425. GENERAL PROVISIONS.</DELETED>

<DELETED>    Section 901(a) of title 11, United States Code, is amended 
by inserting ``1123(d),'' after ``1123(b),''.</DELETED>

<DELETED>SEC. 426. APPOINTMENT OF ELECTED TRUSTEE.</DELETED>

<DELETED>    Section 1104(b) of title 11, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by inserting ``(1)'' after ``(b)''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        paragraph:</DELETED>
<DELETED>    ``(2)(A) If an eligible, disinterested trustee is elected 
at a meeting of creditors under paragraph (1), the United States 
trustee shall file a report certifying that election. Upon the filing 
of a report under the preceding sentence--</DELETED>
        <DELETED>    ``(i) the trustee elected under paragraph (1) 
        shall be considered to have been selected and appointed for 
        purposes of this section; and</DELETED>
        <DELETED>    ``(ii) the service of any trustee appointed under 
        subsection (d) shall terminate.</DELETED>
<DELETED>    ``(B) In the case of any dispute arising out of an 
election under subparagraph (A), the court shall resolve the 
dispute.''.</DELETED>

<DELETED>SEC. 427. ABANDONMENT OF RAILROAD LINE.</DELETED>

<DELETED>    Section 1170(e)(1) of title 11, United States Code, is 
amended by striking ``section 11347'' and inserting ``section 
11326(a)''.</DELETED>

<DELETED>SEC. 428. CONTENTS OF PLAN.</DELETED>

<DELETED>    Section 1172(c)(1) of title 11, United States Code, is 
amended by striking ``section 11347'' and inserting ``section 
11326(a)''.</DELETED>

<DELETED>SEC. 429. DISCHARGE UNDER CHAPTER 12.</DELETED>

<DELETED>    Subsections (a) and (c) of section 1228 of title 11, 
United States Code, are amended by striking ``1222(b)(10)'' each place 
it appears and inserting ``1222(b)(9)''.</DELETED>

<DELETED>SEC. 430. CONTENTS OF PLAN.</DELETED>

<DELETED>    Section 1322 of title 11, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (b), by striking ``(c)'' and 
        inserting ``(d)''; and</DELETED>
        <DELETED>    (2) in subsection (e), by striking ``default, 
        shall'' and inserting ``default shall''.</DELETED>

<DELETED>SEC. 431. DISCHARGE UNDER CHAPTER 13.</DELETED>

<DELETED>    Paragraphs (1) through (3) of section 1328(a) of title 11, 
United States Code, are amended to read as follows:</DELETED>
        <DELETED>    ``(1) provided for under section 1322(b)(5) of 
        this title;</DELETED>
        <DELETED>    ``(2) of the kind specified in paragraph (5), (8), 
        or (9) of section 523(a) of this title; or</DELETED>
        <DELETED>    ``(3) for restitution, or a criminal fine, 
        included in a sentence on the debtor's conviction of a 
        crime.''.</DELETED>

<DELETED>SEC. 432. EXTENSIONS.</DELETED>

<DELETED>    Section 302(d)(3) of the Bankruptcy, Judges, United States 
Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) 
is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A), in the matter following 
        clause (ii), by striking ``October 1, 2002'' and inserting 
        ``October 1, 2012''; and</DELETED>
        <DELETED>    (2) in subparagraph (F)--</DELETED>
                <DELETED>    (A) in clause (i)--</DELETED>
                        <DELETED>    (i) in subclause (II), by striking 
                        ``October 1, 2002'' and inserting ``October 1, 
                        2012''; and</DELETED>
                        <DELETED>    (ii) in the matter following 
                        subclause (II), by striking ``October 1, 2003'' 
                        and inserting ``October 1, 2013''; 
                        and</DELETED>
                <DELETED>    (B) in clause (ii), in the matter 
                following subclause (II), by striking ``October 1, 
                2003'' and inserting ``October 1, 2013''.</DELETED>

<DELETED>SEC. 433. BANKRUPTCY CASES AND PROCEEDINGS.</DELETED>

<DELETED>    Section 1334(d) of title 28, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by striking ``made under this subsection'' and 
        inserting ``made under subsection (c)''; and</DELETED>
        <DELETED>    (2) by striking ``This subsection'' and inserting 
        ``Subsection (c) and this subsection''.</DELETED>

<DELETED>SEC. 434. KNOWING DISREGARD OF BANKRUPTCY LAW OR 
              RULE.</DELETED>

<DELETED>    Section 156(a) of title 18, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in the first undesignated paragraph--
        </DELETED>
                <DELETED>    (A) by inserting ``(1) the term'' before 
                ```bankruptcy''; and</DELETED>
                <DELETED>    (B) by striking the period at the end and 
                inserting ``; and''; and</DELETED>
        <DELETED>    (2) in the second undesignated paragraph--
        </DELETED>
                <DELETED>    (A) by inserting ``(2) the term'' before 
                ```document''; and</DELETED>
                <DELETED>    (B) by striking ``this title'' and 
                inserting ``title 11''.</DELETED>

<DELETED>SEC. 435. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.</DELETED>

<DELETED>    (a) Effective Date.--Except as provided in subsection (b), 
this title and the amendments made by this title shall take effect on 
the date of enactment of this Act.</DELETED>
<DELETED>    (b) Application of Amendments.--The amendments made by 
this title shall apply only with respect to cases commenced under title 
11, United States Code, on or after the date of enactment of this 
Act.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Consumer 
Bankruptcy Reform Act of 1998''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                    TITLE I--NEEDS-BASED BANKRUPTCY

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.

        TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS

Sec. 201. Allowance of claims or interests.
Sec. 202. Exceptions to discharge.
Sec. 203. Effect of discharge.
Sec. 204. Automatic stay.
Sec. 205. Discharge.
Sec. 206. Discouraging predatory lending practices.

  TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE 
                           BANKRUPTCY SYSTEM

Sec. 301. Notice of alternatives.
Sec. 302. Fair treatment of secured creditors under chapter 13.
Sec. 303. Discouragement of bad faith repeat filings.
Sec. 304. Timely filing and confirmation of plans under chapter 13.
Sec. 305. Application of the codebtor stay only when the stay protects 
                            the debtor.
Sec. 306. Improved bankruptcy statistics.
Sec. 307. Audit procedures.
Sec. 308. Creditor representation at first meeting of creditors.
Sec. 309. Fair notice for creditors in chapter 7 and 13 cases.
Sec. 310. Stopping abusive conversions from chapter 13.
Sec. 311. Prompt relief from stay in individual cases.
Sec. 312. Dismissal for failure to timely file schedules or provide 
                            required information.
Sec. 313. Adequate time for preparation for a hearing on confirmation 
                            of the plan.
Sec. 314. Discharge under chapter 13.
Sec. 315. Nondischargeable debts.
Sec. 316. Credit extensions on the eve of bankruptcy presumed 
                            nondischargeable.
Sec. 317. Definition of household goods and antiques.
Sec. 318. Relief from stay when the debtor does not complete intended 
                            surrender of consumer debt collateral.
Sec. 319. Adequate protection of lessors and purchase money secured 
                            creditors.
Sec. 320. Limitation.
Sec. 321. Miscellaneous improvements.
Sec. 322. Bankruptcy judgeships.
Sec. 323. Preferred payment of child support in chapter 7 proceedings.
Sec. 324. Preferred payment of child support in chapter 13 proceedings.
Sec. 325. Payment of child support required to obtain a discharge in 
                            chapter 13 proceedings.
Sec. 326. Child support and alimony collection.
Sec. 327. Nondischargeability of certain debts for alimony, 
                            maintenance, and support.
Sec. 328. Enforcement of child and spousal support.
Sec. 329. Dependent child defined.

                    TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Definitions.
Sec. 402. Adjustment of dollar amounts.
Sec. 403. Extension of time.
Sec. 404. Who may be a debtor.
Sec. 405. Penalty for persons who negligently or fraudulently prepare 
                            bankruptcy petitions.
Sec. 406. Limitation on compensation of professional persons.
Sec. 407. Special tax provisions.
Sec. 408. Effect of conversion.
Sec. 409. Automatic stay.
Sec. 410. Amendment to table of sections.
Sec. 411. Allowance of administrative expenses.
Sec. 412. Priorities.
Sec. 413. Exemptions.
Sec. 414. Exceptions to discharge.
Sec. 415. Effect of discharge.
Sec. 416. Protection against discriminatory treatment.
Sec. 417. Property of the estate.
Sec. 418. Limitations on avoiding powers.
Sec. 419. Preferences.
Sec. 420. Postpetition transactions.
Sec. 421. Technical amendment.
Sec. 422. Setoff.
Sec. 423. Disposition of property of the estate.
Sec. 424. General provisions.
Sec. 425. Appointment of elected trustee.
Sec. 426. Abandonment of railroad line.
Sec. 427. Contents of plan.
Sec. 428. Discharge under chapter 12.
Sec. 429. Extensions.
Sec. 430. Bankruptcy cases and proceedings.
Sec. 431. Knowing disregard of bankruptcy law or rule.
Sec. 432. Effective date; application of amendments.

                    TITLE I--NEEDS-BASED BANKRUPTCY

SEC. 101. CONVERSION.

    Section 706(c) of title 11, United States Code, is amended by 
inserting ``or consents to'' after ``requests''.

SEC. 102. DISMISSAL OR CONVERSION.

    (a) In General.--Section 707 of title 11, United States Code, is 
amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 707. Dismissal of a case or conversion to a case under chapter 
              13'';
        and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)''; and
                    (B) in paragraph (1), as redesignated by 
                subparagraph (A) of this paragraph--
                            (i) in the first sentence--
                                    (I) by striking ``but not'' and 
                                inserting ``or'';
                                    (II) by inserting ``, or, with the 
                                debtor's consent, convert such a case 
                                to a case under chapter 13 of this 
                                title,'' after ``consumer debts''; and
                                    (III) by striking ``substantial 
                                abuse'' and inserting ``abuse''; and
                            (ii) by striking the last sentence and 
                        inserting the following:
    ``(2) In considering under paragraph (1) whether the granting of 
relief would be an abuse of the provisions of this chapter, the court 
shall consider whether--
            ``(A) under section 1325(b)(1), on the basis of the current 
        income of the debtor, the debtor could pay an amount greater 
        than or equal to 20 percent of unsecured claims that are not 
        considered to be priority claims (as determined under 
        subchapter I of chapter 5); or
            ``(B) the debtor filed a petition for the relief in bad 
        faith.
    ``(3)(A) If a panel trustee appointed under section 586(a)(1) of 
title 28 brings a motion for dismissal or conversion under this 
subsection and the court grants that motion and finds that the action 
of the counsel for the debtor in filing under this chapter was not 
substantially justified, the court shall order the counsel for the 
debtor to reimburse the trustee for all reasonable costs in prosecuting 
the motion, including reasonable attorneys' fees.
    ``(B) If the court finds that the attorney for the debtor violated 
Rule 9011, at a minimum, the court shall order--
            ``(i) the assessment of an appropriate civil penalty 
        against the counsel for the debtor; and
            ``(ii) the payment of the civil penalty to the panel 
        trustee or the United States trustee.
    ``(C) In the case of a petition referred to in subparagraph (B), 
the signature of an attorney shall constitute a certificate that the 
attorney has--
            ``(i) performed a reasonable investigation into the 
        circumstances that gave rise to the petition; and
            ``(ii) determined that the petition--
                    ``(I) is well grounded in fact; and
                    ``(II) is warranted by existing law or a good faith 
                argument for the extension, modification, or reversal 
                of existing law and does not constitute an abuse under 
                paragraph (1) of this subsection.
    ``(4)(A) Except as provided in subparagraph (B), the court may 
award a debtor all reasonable costs in contesting a motion brought by a 
party in interest (other than a panel trustee) under this subsection 
(including reasonable attorneys' fees) if--
            ``(i) the court does not grant the motion; and
            ``(ii) the court finds that--
                    ``(I) the position of the party that brought the 
                motion was not substantially justified; or
                    ``(II) the party brought the motion solely for the 
                purpose of coercing a debtor into waiving a right 
                guaranteed to the debtor under this title.
    ``(B) A party in interest that has a claim of an aggregate amount 
less than $1,000 shall not be subject to subparagraph (A).
    ``(5) However, a party in interest may not bring a motion under 
this section if the debtor and the debtor's spouse combined, as of the 
date of the order for relief, have current monthly total income equal 
to or less than the national median household monthly income calculated 
on a monthly basis for a household of equal size. However, for a 
household of more than 4 individuals, the median income shall be that 
of a household of 4 individuals plus $583 for each additional member of 
that household.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 of title 11, United States Code, is amended by striking the 
item relating to section 707 and inserting the following:

``707. Dismissal of a case or conversion to a case under chapter 13.''.

        TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS

SEC. 201. ALLOWANCE OF CLAIMS OR INTERESTS.

    Section 502 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(k)(1) The court may award the debtor reasonable attorneys' fees 
and costs if, after an objection is filed by a debtor, the court--
            ``(A)(i) disallows the claim; or
            ``(ii) reduces the claim by an amount greater than 20 
        percent of the amount of the initial claim filed by a party in 
        interest; and
            ``(B) finds the position of the party filing the claim is 
        not substantially justified.
    ``(2) If the court finds that the position of a claimant under this 
section is not substantially justified, the court may, in addition to 
awarding a debtor reasonable attorneys' fees and costs under paragraph 
(1), award such damages as may be required by the equities of the 
case.''.

SEC. 202. EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, is amended--
            (1) in subsection (a)(2)(A), by striking ``a false 
        representation'' and inserting ``a material false 
        representation upon which the defrauded person justifiably 
        relied''; and
            (2) by striking subsection (d) and inserting the following:
    ``(d)(1) Subject to paragraph (3), if a creditor requests a 
determination of dischargeability of a consumer debt under this section 
and that debt is discharged, the court shall award the debtor 
reasonable attorneys' fees and costs.
    ``(2) In addition to making an award to a debtor under paragraph 
(1), if the court finds that the position of a creditor in a proceeding 
covered under this section is not substantially justified, the court 
may award reasonable attorneys' fees and costs under paragraph (1) and 
such damages as may be required by the equities of the case.
    ``(3)(A) A creditor may not request a determination of 
dischargeability of a consumer debt under subsection (a)(2) if--
            ``(i) before the filing of the petition, the debtor made a 
        good faith effort to negotiate a reasonable alternative 
        repayment schedule (including making an offer of a reasonable 
        alternative repayment schedule); and
            ``(ii) that creditor refused to negotiate an alternative 
        payment schedule, and that refusal was not reasonable.
    ``(B) For purposes of this paragraph, the debtor shall have the 
burden of proof of establishing that--
            ``(i) an offer made by that debtor under subparagraph 
        (A)(i) was reasonable; and
            ``(ii) the refusal to negotiate by the creditor involved to 
        was not reasonable.''.

SEC. 203. EFFECT OF DISCHARGE.

    Section 524 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(i) The willful failure of a creditor to credit payments received 
under a plan confirmed under this title (including a plan of 
reorganization confirmed under chapter 11 of this title) in the manner 
required by the plan (including crediting the amounts required under 
the plan) shall constitute a violation of an injunction under 
subsection (a)(2).
    ``(j) An individual who is injured by the failure of a creditor to 
comply with the requirements for a reaffirmation agreement under 
subsections (c) and (d), or by any willful violation of the injunction 
under subsection (a)(2), shall be entitled to recover--
            ``(1) the greater of--
                    ``(A)(i) the amount of actual damages; multiplied 
                by
                    ``(ii) 3; or
                    ``(B) $5,000; and
            ``(2) costs and attorneys' fees.''.

SEC. 204. AUTOMATIC STAY.

    Section 362(h) of title 11, United States Code, is amended to read 
as follows:
    ``(h)(1) An individual who is injured by any willful violation of a 
stay provided in this section shall be entitled to recover--
            ``(A) actual damages; and
            ``(B) reasonable costs, including attorneys' fees.
    ``(2) In addition to recovering actual damages, costs, and 
attorneys' fees under paragraph (1), an individual described in 
paragraph (1) may recover punitive damages in appropriate 
circumstances.''.

SEC. 205. DISCHARGE.

    Section 727 of title 11, United States Code, is amended--
            (1) in subsection (c), by adding at the end the following:
    ``(3)(A) A creditor may not request a determination of 
dischargeability of a consumer debt under subsection (a) if--
            ``(i) before the filing of the petition, the debtor made a 
        good faith effort to negotiate a reasonable alternative 
        repayment schedule (including making an offer of a reasonable 
        alternative repayment schedule); and
            ``(ii) that creditor refused to negotiate an alternative 
        payment schedule, and that refusal was not reasonable.
    ``(B) For purposes of this paragraph, the debtor shall have the 
burden of proof of establishing that--
            ``(i) an offer made by that debtor under subparagraph 
        (A)(i) was reasonable; and
            ``(ii) the refusal to negotiate by the creditor involved to 
        was not reasonable.''; and
            (2) by adding at the end the following:
    ``(f)(1) The court may award the debtor reasonable attorneys' fees 
and costs in any case in which a creditor files a motion to deny relief 
to a debtor under this section and that motion--
            ``(A) is denied; or
            ``(B) is withdrawn after the debtor has replied.
    ``(2) If the court finds that the position of a party filing a 
motion under this section is not substantially justified, the court may 
assess against the creditor such damages as may be required by the 
equities of the case.''.

SEC. 206. DISCOURAGING PREDATORY LENDING PRACTICES.

    Section 502(b) of title 11, United States Code, is amended--
            (1) in paragraph (8), by striking ``or'' at the end;
            (2) in paragraph (9), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(10) the claim is based on a secured debt if the creditor 
        has failed to comply with the requirements of subsection (a), 
        (b), (c), (d), (e), (f), (g), (h), or (i) of section 129 of the 
        Truth in Lending Act (15 U.S.C. 1639).''.

  TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE 
                           BANKRUPTCY SYSTEM

SEC. 301. NOTICE OF ALTERNATIVES.

    (a) In General.--Section 342 of title 11, United States Code, is 
amended by striking subsection (b) and inserting the following:
    ``(b) Before the commencement of a case under this title by an 
individual whose debts are primarily consumer debts, that individual 
shall be given or obtain (as required in section 521(a)(1), as part of 
the certification process under subchapter 1 of chapter 5) a written 
notice prescribed by the United States trustee for the district in 
which the petition is filed pursuant to section 586 of title 28. The 
notice shall contain the following:
            ``(1) A brief description of chapters 7, 11, 12, and 13 and 
        the general purpose, benefits, and costs of proceeding under 
        each of those chapters.
            ``(2) A brief description of services that may be available 
        to that individual from an independent nonprofit debt 
        counseling service.
            ``(3)(A) The name, address, and telephone number of each 
        nonprofit debt counseling service with an office located in the 
        district in which the petition is filed, if any.
            ``(B) Any nonprofit debt counseling service described in 
        subparagraph (A) that has registered with the clerk of the 
        bankruptcy court on or before December 10 of the preceding year 
        shall be included in the list referred to in that clause, 
        unless the chief bankruptcy judge of the district involved, 
        after giving notice to the debt counseling service and the 
        United States trustee and opportunity for a hearing, orders, 
        for good cause, that a particular debt counseling service shall 
        not be so listed.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
is amended--
            (1) by inserting ``(a)'' before ``The debtor 
        shall--'';
            (2) by striking paragraph (1) and inserting the following:
            ``(1) file--
                    ``(A) a list of creditors; and
                    ``(B) unless the court orders otherwise--
                            ``(i) a schedule of assets and liabilities;
                            ``(ii) a schedule of current income and 
                        current expenditures;
                            ``(iii) a statement of the debtor's 
                        financial affairs and, if applicable, a 
                        certificate--
                                    ``(I) of an attorney whose name is 
                                on the petition as the attorney for the 
                                debtor or any bankruptcy petition 
                                preparer signing the petition pursuant 
                                to section 110(b)(1) indicating that 
                                such attorney or bankruptcy petition 
                                preparer delivered to the debtor any 
                                notice required by section 342(b); or
                                    ``(II) if no attorney for the 
                                debtor is indicated and no bankruptcy 
                                petition preparer signed the petition, 
                                of the debtor that such notice was 
                                obtained and read by the debtor;
                            ``(iv) copies of any Federal tax returns, 
                        including any schedules or attachments, filed 
                        by the debtor for the 3-year period preceding 
                        the order for relief;
                            ``(v) copies of all payment advices or 
                        other evidence of payment, if any, received by 
                        the debtor from any employer of the debtor in 
                        the period 60 days prior to the filing of the 
                        petition;
                            ``(vi) a statement of the amount of 
                        projected monthly net income, itemized to show 
                        how calculated; and
                            ``(vii) a statement disclosing any 
                        reasonably anticipated increase in income or 
                        expenditures over the 12-month period following 
                        the date of filing;''; and
            (3) by adding at the end the following:
    ``(b)(1) At any time, a creditor, in the case of an individual 
under chapter 7 or 13, may file with the court notice that the creditor 
requests the petition, schedules, and a statement of affairs filed by 
the debtor in the case and the court shall make those documents 
available to the creditor who requests those documents.
    ``(2) At any time, a creditor, in a case under chapter 13, may file 
with the court notice that the creditor requests the plan filed by the 
debtor in the case and the court shall make that plan available to the 
creditor who requests that plan.
    ``(c) An individual debtor in a case under chapter 7 or 13 shall 
file with the court--
            ``(1) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, with respect 
        to the period from the commencement of the case until such time 
        as the case is closed;
            ``(2) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, that were not 
        filed with the taxing authority when the schedules under 
        subsection (a)(1) were filed with respect to the period that is 
        3 years before the order for relief;
            ``(3) any amendments to any of the tax returns, including 
        schedules or attachments, described in paragraph (1) or (2); 
        and
            ``(4) in a case under chapter 13, a statement subject to 
        the penalties of perjury by the debtor of the debtor's income 
        and expenditures in the preceding tax year and monthly income, 
        that shows how the amounts are calculated--
                    ``(A) beginning on the date that is the later of 90 
                days after the close of the debtor's tax year or 1 year 
                after the order for relief, unless a plan has been 
                confirmed; and
                    ``(B) thereafter, on or before the date that is 45 
                days before each anniversary of the confirmation of the 
                plan until the case is closed.
    ``(d)(1) A statement referred to in subsection (c)(4) shall 
disclose--
            ``(A) the amount and sources of income of the debtor;
            ``(B) the identity of any persons responsible with the 
        debtor for the support of any dependents of the debtor; and
            ``(C) the identity of any persons who contributed, and the 
        amount contributed, to the household in which the debtor 
        resides.
    ``(2) The tax returns, amendments, and statement of income and 
expenditures described in paragraph (1) shall be available to the 
United States trustee, any bankruptcy administrator, any trustee, and 
any party in interest for inspection and copying, subject to the 
requirements of subsection (e).
    ``(e)(1) Not later than 30 days after the date of enactment of the 
Consumer Bankruptcy Reform Act of 1998, the Director of the 
Administrative Office of the United States Courts shall establish 
procedures for safeguarding the confidentiality of any tax information 
required to be provided under this section.
    ``(2) The procedures under paragraph (1) shall include restrictions 
on creditor access to tax information that is required to be provided 
under this section.
    ``(3) Not later than 1 year after the date of enactment of the 
Consumer Bankruptcy Reform Act of 1998, the Director of the 
Administrative Office of the United States Courts shall prepare, and 
submit to Congress a report that--
            ``(A) assesses the effectiveness of the procedures under 
        paragraph (1); and
            ``(B) if appropriate, includes proposed legislation--
                    ``(i) to further protect the confidentiality of tax 
                information; and
                    ``(ii) to provide penalties for the improper use by 
                any person of the tax information required to be 
                provided under this section.''.
    (c) Title 28.--Section 586(a) of title 28, United States Code, is 
amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) on or before January 1 of each calendar year, and 
        also not later than 30 days after any change in the nonprofit 
        debt counseling services registered with the bankruptcy court, 
        prescribe and make available on request the notice described in 
        section 342(b)(3) of title 11 for each district included in the 
        region.''.

SEC. 302. FAIR TREATMENT OF SECURED CREDITORS UNDER CHAPTER 13.

    (a) Restoring the Foundation for Secured Credit.--Section 1325(a) 
of title 11, United States Code, is amended--
            (1) in paragraph (5), by striking the matter preceding 
        subparagraph (A) and inserting the following:
            ``(5) with respect to an allowed claim provided for by the 
        plan that is secured under applicable nonbankruptcy law by 
        reason of a lien on property in which the estate has an 
        interest or is subject to a setoff under section 553--''; and
            (2) by adding at the end of the subsection the following 
        flush sentence:
``For purposes of paragraph (5), section 506 shall not apply to a claim 
described in that paragraph.''.
    (b) Payment of Holders of Claims Secured by Liens.--Section 
1325(a)(5)(B)(i) of title 11, United States Code, is amended to read as 
follows:
                    ``(B)(i) the plan provides that the holder of such 
                claim retain the lien securing such claim until the 
                debt that is the subject of the claim is fully paid 
                for, as provided under the plan; and''.
    (c) Determination of Secured Status.--Section 506 of title 11, 
United States Code, is amended by adding at the end the following:
    ``(e) Subsection (a) shall not apply to an allowed claim to the 
extent attributable in whole or in part to the purchase price of 
personal property acquired by the debtor during the 90-day period 
preceding the date of filing of the petition.''.

SEC. 303. DISCOURAGEMENT OF BAD FAITH REPEAT FILINGS.

    Section 362(c) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' before ``Except as'';
            (2) by striking ``(1) the stay'' and inserting ``(A) the 
        stay'';
            (3) by striking ``(2) the stay'' and inserting ``(B) the 
        stay'';
            (4) by striking ``(A) the time'' and inserting ``(i) the 
        time'';
            (5) by striking ``(B) the time'' and inserting ``(ii) the 
        time''; and
            (6) by adding at the end the following:
    ``(2) Except as provided in subsections (d) through (f), the stay 
under subsection (a) with respect to any action taken with respect to a 
debt or property securing such debt or with respect to any lease shall 
terminate with respect to the debtor on the 30th day after the filing 
of the later case if--
            ``(A) a single or joint case is filed by or against an 
        individual debtor under chapter 7, 11, or 13; and
            ``(B) a single or joint case of that debtor (other than a 
        case refiled under a chapter other than chapter 7 after 
        dismissal under section 707(b)) was pending during the 
        preceding year but was dismissed.
    ``(3) If a party in interest so requests, the court may extend the 
stay in a particular case with respect to 1 or more creditors (subject 
to such conditions or limitations as the court may impose) after 
providing notice and a hearing completed before the expiration of the 
30-day period described in paragraph (2) only if the party in interest 
demonstrates that the filing of the later case is in good faith with 
respect to the creditors to be stayed.
    ``(4) A case shall be presumed to have not been filed in good faith 
(except that such presumption may be rebutted by clear and convincing 
evidence to the contrary)--
            ``(A) with respect to the creditors involved, if--
                    ``(i) more than 1 previous case under any of 
                chapters 7, 11, or 13 in which the individual was a 
                debtor was pending during the 1-year period described 
                in paragraph (1);
                    ``(ii) a previous case under any of chapters 7, 11, 
                or 13 in which the individual was a debtor was 
                dismissed within the period specified in paragraph (2) 
                after--
                            ``(I) the debtor, after having received 
                        from the court a request to do so, failed to 
                        file or amend the petition or other documents 
                        as required by this title; or
                            ``(II) the debtor, without substantial 
                        excuse, failed to perform the terms of a plan 
                        that was confirmed by the court; or
                    ``(iii)(I) during the period commencing with the 
                dismissal of the next most previous case under chapter 
                7, 11, or 13 there has not been a substantial change in 
                the financial or personal affairs of the debtor;
                    ``(II) if the case is a chapter 7 case, there is no 
                other reason to conclude that the later case will be 
                concluded with a discharge; or
                    ``(III) if the case is a chapter 11 or 13 case, 
                there is not a confirmed plan that will be fully 
                performed; and
            ``(B) with respect to any creditor that commenced an action 
        under subsection (d) in a previous case in which the individual 
        was a debtor, if, as of the date of dismissal of that case, 
        that action was still pending or had been resolved by 
        terminating, conditioning, or limiting the stay with respect to 
        actions of that creditor.
    ``(5)(A) If a request is made for relief from the stay under 
subsection (a) with respect to real or personal property of any kind, 
and the request is granted in whole or in part, the court may, in 
addition to making any other order under this subsection, order that 
the relief so granted shall be in rem either--
            ``(i) for a definite period of not less than 1 year; or
            ``(ii) indefinitely.
    ``(B)(i) After an order is issued under subparagraph (A), the stay 
under subsection (a) shall not apply to any property subject to such an 
in rem order in any case of the debtor.
    ``(ii) If an in rem order issued under subparagraph (A) so 
provides, the stay shall, in addition to being inapplicable to the 
debtor involved, not apply with respect to an entity under this title 
if--
            ``(I) the entity had reason to know of the order at the 
        time that the entity obtained an interest in the property 
        affected; or
            ``(II) the entity was notified of the commencement of the 
        proceeding for relief from the stay, and at the time of the 
notification, no case in which the entity was a debtor was pending.
    ``(6) For purposes of this section, a case is pending during the 
period beginning with the issuance of the order for relief and ending 
at such time as the case involved is closed.''.

SEC. 304. TIMELY FILING AND CONFIRMATION OF PLANS UNDER CHAPTER 13.

    (a) Filing of Plan.--Section 1321 of title 11, United States Code, 
is amended to read as follows:
``Sec. 1321. Filing of plan
    ``The debtor shall file a plan not later than 90 days after the 
order for relief under this chapter, except that the court may extend 
such period if the need for an extension is attributable to 
circumstances for which the debtor should not justly be held 
accountable.''.
    (b) Confirmation of Hearing.--Section 1324 of title 11, United 
States Code, is amended by adding at the end the following: ``That 
hearing shall be held not later than 45 days after the filing of the 
plan, unless the court, after providing notice and a hearing, orders 
otherwise.''.

SEC. 305. APPLICATION OF THE CODEBTOR STAY ONLY WHEN THE STAY PROTECTS 
              THE DEBTOR.

    Section 1301(b) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2)(A) Notwithstanding subsection (c) and except as provided in 
subparagraph (B), in any case in which the debtor did not receive the 
consideration for the claim held by a creditor, the stay provided by 
subsection (a) shall apply to that creditor for a period not to exceed 
30 days beginning on the date of the order for relief, to the extent 
the creditor proceeds against--
            ``(i) the individual that received that consideration; or
            ``(ii) property not in the possession of the debtor that 
        secures that claim.
    ``(B) Notwithstanding subparagraph (A), the stay provided by 
subsection (a) shall apply in any case in which the debtor is primarily 
obligated to pay the creditor in whole or in part with respect to a 
claim described in subparagraph (A) under a legally binding separation 
or property settlement agreement or divorce or dissolution decree with 
respect to--
            ``(i) an individual described in subparagraph (A)(i); or
            ``(ii) property described in subparagraph (A)(ii).
    ``(3) Notwithstanding subsection (c), the stay provided by 
subsection (a) shall terminate as of the date of confirmation of the 
plan, in any case in which the plan of the debtor provides that the 
debtor's interest in personal property subject to a lease with respect 
to which the debtor is the lessee will be surrendered or abandoned or 
no payments will be made under the plan on account of the debtor's 
obligations under the lease.''.

SEC. 306. IMPROVED BANKRUPTCY STATISTICS.

    (a) Amendment.--Chapter 6 of part I of title 28, United States 
Code, is amended by adding at the end the following:
``Sec. 159. Bankruptcy statistics
    ``(a) The clerk of each district shall compile statistics regarding 
individual debtors with primarily consumer debts seeking relief under 
chapters 7, 11, and 13 of title 11. Those statistics shall be in a form 
prescribed by the Director of the Administrative Office of the United 
States Courts (referred to in this section as the `Office').
    ``(b) The Director shall--
            ``(1) compile the statistics referred to in subsection (a);
            ``(2) make the statistics available to the public; and
            ``(3) not later than October 31, 1998, and annually 
        thereafter, prepare, and submit to Congress a report concerning 
        the information collected under subsection (a) that contains an 
        analysis of the information.
    ``(c) The compilation required under subsection (b) shall--
            ``(1) be itemized, by chapter, with respect to title 11;
            ``(2) be presented in the aggregate and for each district; 
        and
            ``(3) include information concerning--
                    ``(A) the total assets and total liabilities of the 
                debtors described in subsection (a), and in each 
                category of assets and liabilities, as reported in the 
                schedules prescribed pursuant to section 2075 of this 
                title and filed by those debtors;
                    ``(B) the current total monthly income, projected 
                monthly net income, and average income and average 
                expenses of those debtors as reported on the schedules 
                and statements that each such debtor files under 
                sections 111, 521, and 1322 of title 11;
                    ``(C) the aggregate amount of debt discharged in 
                the reporting period, determined as the difference 
                between the total amount of debt and obligations of a 
                debtor reported on the schedules and the amount of such 
                debt reported in categories which are predominantly 
                nondischargeable;
                    ``(D) the average period of time between the filing 
                of the petition and the closing of the case;
                    ``(E) for the reporting period--
                            ``(i) the number of cases in which a 
                        reaffirmation was filed; and
                            ``(ii)(I) the total number of 
                        reaffirmations filed;
                            ``(II) of those cases in which a 
                        reaffirmation was filed, the number in which 
                        the debtor was not represented by an attorney; 
                        and
                            ``(III) of those cases, the number of cases 
                        in which the reaffirmation was approved by the 
                        court;
                    ``(F) with respect to cases filed under chapter 13 
                of title 11, for the reporting period--
                            ``(i)(I) the number of cases in which a 
                        final order was entered determining the value 
                        of property securing a claim in an amount less 
                        than the amount of the claim; and
                            ``(II) the number of final orders 
                        determining the value of property securing a 
                        claim issued;
                            ``(ii) the number of cases dismissed for 
                        failure to make payments under the plan; and
                            ``(iii) the number of cases in which the 
                        debtor filed another case within the 6 years 
                        previous to the filing; and
                    ``(G) the extent of creditor misconduct and any 
                amount of punitive damages awarded by the court for 
                creditor misconduct.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 6 of title 28, United States Code, is amended by adding at the 
end the following:

``159. Bankruptcy statistics.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

SEC. 307. AUDIT PROCEDURES.

    (a) Amendments.--Section 586 of title 28, United States Code, is 
amended--
            (1) in subsection (a), as amended by section 301 of this 
        Act, by striking paragraph (6) and inserting the following:
            ``(6) make such reports as the Attorney General directs, 
        including the results of audits performed under subsection (f); 
        and''; and
            (2) by adding at the end the following:
    ``(f)(1)(A) The Attorney General shall establish procedures for the 
auditing of the accuracy and completeness of petitions, schedules, and 
other information which the debtor is required to provide under 
sections 521 and 1322 of title 11, and, if applicable, section 111 of 
title 11, in individual cases filed under chapter 7 or 13 of such 
title.
    ``(B) The audits described in subparagraph (A) shall be made in 
accordance with generally accepted auditing standards and performed by 
independent certified public accountants or independent licensed public 
accountants. Those procedures shall--
            ``(i) establish a method of selecting appropriate qualified 
        persons to contract with the United States trustee to perform 
        those audits;
            ``(ii) establish a method of randomly selecting cases to be 
        audited according to generally accepted auditing standards, 
        except that not less than 1 out of every 500 cases in each 
        Federal judicial district shall be selected for audit;
            ``(iii) require audits for schedules of income and expenses 
        which reflect greater than average variances from the 
        statistical norm of the district in which the schedules were 
        filed; and
            ``(iv) establish procedures for--
                    ``(I) reporting the results of those audits and any 
                material misstatement of income, expenditures, or 
                assets of a debtor to the Attorney General, the United 
                States Attorney and the court, as appropriate;
                    ``(II) providing, not less frequently than 
                annually, public information concerning the aggregate 
                results of such audits including the percentage of 
                cases, by district, in which a material misstatement of 
                income or expenditures is reported; and
                    ``(III) fully funding those audits, including 
                procedures requiring each debtor with sufficient 
                available income or assets to contribute to the payment 
                for those audits, as an administrative expense or 
                otherwise.
    ``(2) The United States trustee for each district is authorized to 
contract with auditors to perform audits in cases designated by the 
United States trustee according to the procedures established under 
paragraph (1).
    ``(3) According to procedures established under paragraph (1), upon 
request of a duly appointed auditor, the debtor shall cause the 
accounts, papers, documents, financial records, files and all other 
papers, things, or property belonging to the debtor as the auditor 
requests and that are reasonably necessary to facilitate the audit to 
be made available for inspection and copying.
    ``(4)(A) The report of each audit conducted under this subsection 
shall be filed with the court, the Attorney General, and the United 
States Attorney, as required under procedures established by the 
Attorney General under paragraph (1).
    ``(B) If a material misstatement of income or expenditures or of 
assets is reported under subparagraph (A), a statement specifying that 
misstatement shall be filed with the court and the United States 
trustee shall--
            ``(i) give notice thereof to the creditors in the case; and
            ``(ii) in an appropriate case, in the opinion of the United 
        States trustee, that requires investigation with respect to 
        possible criminal violations, the United States Attorney for 
        the district.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

SEC. 308. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.

    Section 341(c) of title 11, United States Code, is amended by 
inserting after the first sentence the following: ``Notwithstanding any 
local court rule, provision of a State constitution, any other Federal 
or State law that is not a bankruptcy law, or other requirement that 
representation at the meeting of creditors under subsection (a) be by 
an attorney, a creditor holding a consumer debt or any representative 
of the creditor (which may include an entity or an employee of an 
entity and may be a representative for more than one creditor) shall be 
permitted to appear at and participate in the meeting of creditors in a 
case under chapter 7 or 13, either alone or in conjunction with an 
attorney for the creditor. Nothing in this subsection shall be 
construed to require any creditor to be represented by an attorney at 
any meeting of creditors.''.

SEC. 309. FAIR NOTICE FOR CREDITORS IN CHAPTER 7 AND 13 CASES.

    Section 342 of title 11, United States Code, is amended--
            (1) in subsection (c), by striking ``, but the failure of 
        such notice to contain such information shall not invalidate 
        the legal effect of such notice''; and
            (2) by adding at the end the following:
    ``(d)(1) If the credit agreement between the debtor and the 
creditor or the last communication before the filing of the petition in 
a voluntary case from the creditor to a debtor who is an individual 
states an account number of the debtor that is the current account 
number of the debtor with respect to any debt held by the creditor 
against the debtor, the debtor shall include that account number in any 
notice to the creditor required to be given under this title.
    ``(2) If the creditor has specified to the debtor, in the last 
communication before the filing of the petition, an address at which 
the creditor wishes to receive correspondence regarding the debtor's 
account, any notice to the creditor required to be given by the debtor 
under this title shall be given at such address.
    ``(3) For purposes of this section, the term `notice' shall 
include--
            ``(A) any correspondence from the debtor to the creditor 
        after the commencement of the case;
            ``(B) any statement of the debtor's intention under section 
        521(a)(2);
            ``(C) notice of the commencement of any proceeding in the 
        case to which the creditor is a party; and
            ``(D) any notice of a hearing under section 1324.
    ``(e)(1) At any time, a creditor, in a case of an individual under 
chapter 7 or 13, may file with the court and serve on the debtor a 
notice of the address to be used to notify the creditor in that case.
    ``(2) If the court or the debtor is required to give the creditor 
notice, not later than 5 days after receipt of the notice under 
paragraph (1), that notice shall be given at that address.
    ``(f) An entity may file with the court a notice stating its 
address for notice in cases under chapter 7 or 13. After the date that 
is 30 days following the filing of that notice, any notice in any case 
filed under chapter 7 or 13 given by the court shall be to that address 
unless specific notice is given under subsection (e) with respect to a 
particular case.
    ``(g)(1) Notice given to a creditor other than as provided in this 
section shall not be effective notice until that notice has been 
brought to the attention of the creditor.
    ``(2) If the creditor has designated a person or department to be 
responsible for receiving notices concerning bankruptcy cases and has 
established reasonable procedures so that bankruptcy notices received 
by the creditor will be delivered to that department or person, notice 
shall not be brought to the attention of the creditor until that notice 
is received by that person or department.''.

SEC. 310. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13.

    Section 348(f)(1) of title 11, United States Code, is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B)--
                    (A) by striking ``in the converted case, with 
                allowed secured claims'' and inserting ``only in a case 
                converted to chapter 11 or 12 but not in a case 
                converted to chapter 7, with allowed secured claims in 
                cases under chapters 11 and 12''; and
                    (B) by striking the period and inserting ``; and''; 
                and
            (3) by adding at the end the following:
            ``(C) with respect to cases converted from chapter 13, the 
        claim of any creditor holding security as of the date of the 
        petition shall continue to be secured by that security unless 
        the full amount of that claim determined under applicable 
        nonbankruptcy law has been paid in full as of the date of 
        conversion, notwithstanding any valuation or determination of 
        the amount of an allowed secured claim made for the purposes of 
        the chapter 13 proceeding.''.

SEC. 311. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

    Section 362(e) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e)''; and
            (2) by adding at the end the following:
    ``(2) Notwithstanding paragraph (1), in the case of an individual 
filing under chapter 7, 11, or 13, the stay under subsection (a) shall 
terminate on the date that is 60 days after a request is made by a 
party in interest under subsection (d), unless--
            ``(A) a final decision is rendered by the court during the 
        60-day period beginning on the date of the request; or
            ``(B) that 60-day period is extended--
                    ``(i) by agreement of all parties in interest; or
                    ``(ii) by the court for such specific period of 
                time as the court finds is required for good cause.''.

SEC. 312. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR PROVIDE 
              REQUIRED INFORMATION.

    Section 707 of title 11, United States Code, as amended by section 
102 of this Act, is amended by adding at the end the following:
    ``(c)(1) Notwithstanding subsection (a), and subject to paragraph 
(2), if an individual debtor in a voluntary case under chapter 7 or 13 
fails to file all of the information required under section 521(a)(1) 
within 45 days after the filing of the petition commencing the case, 
the case shall be automatically dismissed effective on the 46th day 
after the filing of the petition.
    ``(2) With respect to a case described in paragraph (1), any party 
in interest may request the court to enter an order dismissing the 
case. The court shall, if so requested, enter an order of dismissal not 
later than 5 days after that request.
    ``(3) Upon request of the debtor made within 45 days after the 
filing of the petition commencing a case described in paragraph (1), 
the court may allow the debtor an additional period of not to exceed 20 
days to file the information required under section 521(a)(1) if the 
court finds justification for extending the period for the filing.''.

SEC. 313. ADEQUATE TIME FOR PREPARATION FOR A HEARING ON CONFIRMATION 
              OF THE PLAN.

    Section 1324 of title 11, United States Code, as amended by section 
304 of this Act, is amended--
            (1) by striking ``After'' and inserting the following:
    ``(a) Except as provided in subsection (b) and after''; and
            (2) by adding at the end the following:
    ``(b) If not later than 5 days after receiving notice of a hearing 
on confirmation of the plan, a creditor objects to the confirmation of 
the plan, the hearing on confirmation of the plan may be held no 
earlier than 20 days after the first meeting of creditors under section 
341(a).''.

SEC. 314. DISCHARGE UNDER CHAPTER 13.

    Section 1328(a) of title 11, United States Code, is amended by 
striking paragraphs (1) through (3) and inserting the following:
            ``(1) provided for under section 1322(b)(5);
            ``(2) of the kind specified in paragraph (2), (4), (5), 
        (8), or (9) of section 523(a);
            ``(3) for restitution, or a criminal fine, included in a 
        sentence on the debtor's conviction of a crime; or
            ``(4) for restitution, or damages, awarded in a civil 
        action against the debtor as a result of willful or malicious 
        injury by the debtor that caused personal injury to an 
        individual or the death of an individual.''.

SEC. 315. NONDISCHARGEABLE DEBTS.

    Section 523(a) of title 11, United States Code, is amended by 
inserting after paragraph (14) the following:
            ``(14A) incurred to pay a debt that is nondischargeable by 
        reason of section 727, 1141, 1228 (a) or (b), or 1328(b), or 
        any other provision of this subsection, except for any debt 
        incurred to pay such a nondischargeable debt in any case in 
        which--
                    ``(A)(i) the debtor who paid the nondischargeable 
                debt is a single parent who has 1 or more dependent 
                children at the time of the order for relief; or
                    ``(ii) there is an allowed claim for alimony to, 
                maintenance for, or support of a spouse, former spouse, 
                or child of the debtor payable under a judicial or 
                administrative order to that spouse or child (but not 
                to any other person) that was unpaid by the debtor as 
                of the date of the petition; and
                    ``(B) the creditor is unable to demonstrate that 
                the debtor intentionally incurred the debt to pay the 
                nondischargeable debt;''.

SEC. 316. CREDIT EXTENSIONS ON THE EVE OF BANKRUPTCY PRESUMED 
              NONDISCHARGEABLE.

    Section 523(a)(2) of title 11, United States Code, as amended by 
section 202 of this Act, is amended--
            (1) in subparagraph (A), by striking the semicolon at the 
        end and inserting the following: ``(and, for purposes of this 
        subparagraph, consumer debts owed in an aggregate amount 
        greater than or equal to $400 incurred for goods or services 
        not reasonably necessary for the maintenance or support of the 
        debtor or a dependent child of the debtor to a single creditor 
        that are incurred during the 90-day period preceding the date 
        of the order for relief shall be presumed to be 
        nondischargeable under this subparagraph); or'';
            (2) in subparagraph (B), by striking ``or'' at the end; and
            (3) by striking subparagraph (C).

SEC. 317. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

    Section 101 of title 11, United States Code, is amended by 
inserting after paragraph (27) the following:
            ``(27A) `household goods' has the meaning given that term 
        in section 444.1(i) of title 16, of the Code of Federal 
        Regulations (as in effect on the effective date of this 
        paragraph), which is part of the regulations issued by the 
        Federal Trade Commission that are commonly known as the `Trade 
        Regulation Rule on Credit Practices', except that the term 
        shall also include any tangible personal property reasonably 
        necessary for the maintenance or support of a dependent 
        child;''.

SEC. 318. RELIEF FROM STAY WHEN THE DEBTOR DOES NOT COMPLETE INTENDED 
              SURRENDER OF CONSUMER DEBT COLLATERAL.

    (a) Automatic Stay.--Section 362 of title 11, United States Code, 
as amended by section 303, is amended--
            (1) in subsection (c)(1), in the matter preceding 
        subparagraph (A), by striking ``(e) and (f)'' and inserting 
        ``(e), (f), and (h)'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following:
    ``(h) In an individual case under chapter 7, 11, or 13 the stay 
provided by subsection (a) is terminated with respect to property of 
the estate securing in whole or in part a claim that is in an amount 
greater than $3,000, or subject to an unexpired lease with a remaining 
term of at least 1 year (in any case in which the debtor owes at least 
$3,000 for a 1-year period), if within 30 days after the expiration of 
the applicable period under section 521(a)(2)--
            ``(1)(A) the debtor fails to timely file a statement of 
        intention to surrender or retain the property; or
            ``(B) if the debtor indicates in the filing that the debtor 
        will retain the property, the debtor fails to meet an 
        applicable requirement to--
                    ``(i) either--
                            ``(I) redeem the property pursuant to 
                        section 722; or
                            ``(II) reaffirm the debt the property 
                        secures pursuant to section 524(c); or
                    ``(ii) assume the unexpired lease pursuant to 
                section 365(d) if the trustee does not do so; or
            ``(2) the debtor fails to timely take the action specified 
        in a statement of intention referred to in paragraph (1)(A) (as 
        amended, if that statement is amended before expiration of the 
        period for taking action), unless--
                    ``(A) the statement of intention specifies 
                reaffirmation; and
                    ``(B) the creditor refuses to reaffirm the debt on 
                the original contract terms for the debt.''.
    (b) Debtor's Duties.--Section 521(a)(2) of title 11, United States 
Code, as redesignated by section 301(b) of this Act, is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``consumer'';
            (2) in subparagraph (B)--
                    (A) by striking ``forty-five days after the filing 
                of a notice of intent under this section'' and 
                inserting ``30 days after the first meeting of 
                creditors under section 341(a)''; and
                    (B) by striking ``forty-five-day period'' and 
                inserting ``30-day period''; and
            (3) in subparagraph (C), by inserting ``, except as 
        provided in section 362(h)'' before the semicolon.

SEC. 319. ADEQUATE PROTECTION OF LESSORS AND PURCHASE MONEY SECURED 
              CREDITORS.

    (a) In General.--Chapter 13 of title 11, United States Code, is 
amended by adding after section 1307 the following:
``Sec. 1307A. Adequate protection in chapter 13 cases
    ``(a)(1)(A) On or before the date that is 30 days after the filing 
of a case under this chapter, the debtor shall make cash payments in an 
amount determined under paragraph (2)(A), to--
            ``(i) any lessor of personal property; and
            ``(ii) any creditor holding a claim secured by personal 
        property to the extent that the claim is attributable to the 
        purchase of that property by the debtor.
    ``(B) The debtor or the plan shall continue making the adequate 
protection payments until the earlier of the date on which--
            ``(i) the creditor begins to receive actual payments under 
        the plan; or
            ``(ii) the debtor relinquishes possession of the property 
        referred to in subparagraph (A) to--
                    ``(I) the lessor or creditor; or
                    ``(II) any third party acting under claim of right, 
                as applicable.
    ``(2) The payments referred to in paragraph (1)(A) shall be 
determined by the court.
    ``(b)(1) Subject to the limitations under paragraph (2), the court 
may, after notice and hearing, change the amount and timing of the 
dates of payment of payments made under subsection (a).
    ``(2)(A) The payments referred to in paragraph (1) shall be payable 
not less frequently than monthly.
    ``(B) The amount of a payment referred to in paragraph (1) shall 
not be less than the reasonable depreciation of the personal property 
described in subsection (a)(1), determined on a month-to-month basis.
    ``(c) Notwithstanding section 1326(b), the payments referred to in 
subsection (a)(1)(A) shall be continued in addition to plan payments 
under a confirmed plan until actual payments to the creditor begin 
under that plan, if the confirmed plan provides--
            ``(1) for payments to a creditor or lessor described in 
        subsection (a)(1); and
            ``(2) for the deferral of payments to such creditor or 
        lessor under the plan until the payment of amounts described in 
        section 1326(b).
    ``(d) Notwithstanding sections 362, 542, and 543, a lessor or 
creditor described in subsection (a) may retain possession of property 
described in that subsection that was obtained in accordance with 
applicable law before the date of filing of the petition until the 
first payment under subsection (a)(1)(A) is received by the lessor or 
creditor.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 13 of title 11, United States Code, is amended by inserting 
after the item relating to section 1307 the following:

``1307A. Adequate protection in chapter 13 cases.''.

SEC. 320. LIMITATION.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (b)(2)(A), by inserting ``subject to 
        subsection (n),'' before ``any property''; and
            (2) by adding at the end the following new subsection:
    ``(n)(1) Except as provided in paragraph (2), as a result of 
electing under subsection (b)(2)(A) to exempt property under State or 
local law, a debtor may not exempt any amount of interest that exceeds 
in the aggregate $100,000 in value in--
            ``(A) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
            ``(B) a cooperative that owns property that the debtor or a 
        dependent of the debtor uses as a residence; or
            ``(C) a burial plot for the debtor or a dependent of the 
        debtor.
    ``(2) The limitation under paragraph (1) shall not apply to an 
exemption claimed under subsection (b)(2)(A) by a family farmer for the 
principal residence of that farmer.''.

SEC. 321. MISCELLANEOUS IMPROVEMENTS.

    (a) Who May Be a Debtor.--Section 109 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(h) Notwithstanding any other provision of this section, an 
individual may not be a debtor under this title unless that individual 
has, during the 90-day period preceding the date of filing of the 
petition of that individual, made a good-faith attempt to create a debt 
repayment plan outside the judicial system for bankruptcy law (commonly 
referred to as the `bankruptcy system'), through a credit counseling 
program (offered through credit counseling services described in 
section 111(a)) that has been approved by--
            ``(1) the United States trustee; or
            ``(2) the bankruptcy administrator for the district in 
        which the petition is filed.''.
    (b) Chapter 7 Discharge.--Section 727(a) of title 11, United States 
Code, is amended--
            (1) in paragraph (9), by striking ``or'' at the end;
            (2) in paragraph (10), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(11) after the filing of the petition, the debtor failed 
        to complete an instructional course concerning personal 
        financial management described in section 111 that was 
        administered or approved by--
                    ``(A) the United States trustee; or
                    ``(B) the bankruptcy administrator for the district 
                in which the petition is filed.''.
    (c) Chapter 13 Discharge.--Section 1328 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(f) The court shall not grant a discharge under this section to a 
debtor, unless after filing a petition the debtor has completed an 
instructional course concerning personal financial management described 
in section 111 that was administered or approved by--
            ``(1) the United States trustee; or
            ``(2) the bankruptcy administrator for the district in 
        which the petition is filed.''.
    (d) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by sections 301(b) and 318(b) of this Act, is amended by 
adding at the end the following:
    ``(e) In addition to the requirements under subsection (a), an 
individual debtor shall file with the court--
            ``(1) a certificate from the credit counseling service that 
        provided the debtor services under section 109(h) or other 
        substantial evidence of a good-faith attempt to create a debt 
        repayment plan outside the bankruptcy system in the manner 
        prescribed in section 109(h); and
            ``(2) a copy of the debt repayment plan developed under 
        section 109(h) through the credit counseling service referred 
        to in paragraph (1).''.
    (e) Exceptions to Discharge.--Section 523(d) of title 11, United 
States Code, as amended by section 202 of this Act, is amended by 
striking paragraph (3)(A)(i) and inserting the following:
            ``(i) before the filing of the petition, the debtor made a 
        good faith attempt pursuant to section 109(h) to negotiate a 
        reasonable alternative repayment schedule (including making an 
        offer of a reasonable alternative repayment schedule); and''.
    (f) General Provisions.--
            (1) In general.--Chapter 1 of title 11, United States Code, 
        is amended by adding at the end the following:
``Sec. 111. Credit counseling services; financial management 
              instructional courses
    ``(a) The clerk of each district shall maintain a list of credit 
counseling services that provide 1 or more programs described in 
section 109(h) and that have been approved by--
            ``(1) the United States trustee; or
            ``(2) the bankruptcy administrator for the district.
    ``(b) The United States trustee or each bankruptcy administrator 
referred to in subsection (a)(1) shall--
            ``(1) make available to debtors who are individuals an 
        instructional course concerning personal financial management, 
        under the direction of the bankruptcy court; and
            ``(2) maintain a list of instructional courses concerning 
        personal financial management that are operated by a private 
        entity and that have been approved by the United States trustee 
or that bankruptcy administrator.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1 of title 11, United States Code, is 
        amended by adding at the end the following:

``111. Credit counseling services; financial management instructional 
                            courses.''.
    (g) Definitions.--Section 101 of title 11, United States Code, as 
amended by section 317 of this Act, is amended--
            (1) by inserting after paragraph (13) the following:
            ``(13A) `debtor's principal residence'--
                    ``(A) means a residential structure, including 
                incidental property, without regard to whether that 
                structure is attached to real property; and
                    ``(B) includes an individual condominium or co-
                operative unit;''; and
            (2) by inserting after paragraph (27A), as added by section 
        318 of this Act, the following:
            ``(27B) `incidental property' means, with respect to a 
        debtor's principal residence--
                    ``(A) property commonly conveyed with a principal 
                residence in the area where the real estate is located;
                    ``(B) all easements, rights, appurtenances, 
                fixtures, rents, royalties, mineral rights, oil or gas 
                rights or profits, water rights, escrow funds, or 
                insurance proceeds; and
                    ``(C) all replacements or additions;''.

SEC. 322. BANKRUPTCY JUDGESHIPS.

    (a) Short Title.--This section may be cited as the ``Bankruptcy 
Judgeship Act of 1998''.
    (b) Temporary Judgeships.--
            (1) Appointments.--The following judgeship positions shall 
        be filled in the manner prescribed in section 152(a)(1) of 
        title 28, United States Code, for the appointment of bankruptcy 
        judges provided for in section 152(a)(2) of such title:
                    (A) One additional bankruptcy judgeship for the 
                eastern district of California.
                    (B) Four additional bankruptcy judgeships for the 
                central district of California.
                    (C) One additional bankruptcy judgeship for the 
                southern district of Florida.
                    (D) Two additional bankruptcy judgeships for the 
                district of Maryland.
                    (E) One additional bankruptcy judgeship for the 
                eastern district of Michigan.
                    (F) One additional bankruptcy judgeship for the 
                southern district of Mississippi.
                    (G) One additional bankruptcy judgeship for the 
                district of New Jersey.
                    (H) One additional bankruptcy judgeship for the 
                eastern district of New York.
                    (I) One additional bankruptcy judgeship for the 
                northern district of New York.
                    (J) One additional bankruptcy judgeship for the 
                southern district of New York.
                    (K) One additional bankruptcy judgeship for the 
                eastern district of Pennsylvania.
                    (L) One additional bankruptcy judgeship for the 
                middle district of Pennsylvania.
                    (M) One additional bankruptcy judgeship for the 
                western district of Tennessee.
                    (N) One additional bankruptcy judgeship for the 
                eastern district of Virginia.
            (2) Vacancies.--The first vacancy occurring in the office 
        of a bankruptcy judge in each of the judicial districts set 
        forth in paragraph (1) that--
                    (A) results from the death, retirement, 
                resignation, or removal of a bankruptcy judge; and
                    (B) occurs 5 years or more after the appointment 
                date of a bankruptcy judge appointed under paragraph 
                (1);
        shall not be filled.
    (c) Extensions.--
            (1) In general.--The temporary bankruptcy judgeship 
        positions authorized for the northern district of Alabama, the 
        district of Delaware, the district of Puerto Rico, the district 
        of South Carolina, and the eastern district of Tennessee under 
        section 3(a) (1), (3), (7), (8), and (9) of the Bankruptcy 
        Judgeship Act of 1992 (28 U.S.C. 152 note) are extended until 
        the first vacancy occurring in the office of a bankruptcy judge 
        in the applicable district resulting from the death, 
        retirement, resignation, or removal of a bankruptcy judge and 
        occurring--
                    (A) 8 years or more after November 8, 1993, with 
                respect to the northern district of Alabama;
                    (B) 10 years or more after October 28, 1993, with 
                respect to the district of Delaware;
                    (C) 8 years or more after August 29, 1994, with 
                respect to the district of Puerto Rico;
                    (D) 8 years or more after June 27, 1994, with 
                respect to the district of South Carolina; and
                    (E) 8 years or more after November 23, 1993, with 
                respect to the eastern district of Tennessee.
            (2) Applicability of other provisions.--All other 
        provisions of section 3 of the Bankruptcy Judgeship Act of 1992 
        remain applicable to such temporary judgeship position.
    (d) Technical Amendment.--The first sentence of section 152(a)(1) 
of title 28, United States Code, is amended to read as follows: ``Each 
bankruptcy judge to be appointed for a judicial district as provided in 
paragraph (2) shall be appointed by the United States court of appeals 
for the circuit in which such district is located.''.
    (e) Travel Expenses of Bankruptcy Judges.--Section 156 of title 28, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(g)(1) In this subsection, the term `travel expenses'--
            ``(A) means the expenses incurred by a bankruptcy judge for 
        travel that is not directly related to any case assigned to 
        such bankruptcy judge; and
            ``(B) shall not include the travel expenses of a bankruptcy 
        judge if--
                    ``(i) the payment for the travel expenses is paid 
                by such bankruptcy judge from the personal funds of 
                such bankruptcy judge; and
                    ``(ii) such bankruptcy judge does not receive funds 
                (including reimbursement) from the United States or any 
                other person or entity for the payment of such travel 
                expenses.
    ``(2) Each bankruptcy judge shall annually submit the information 
required under paragraph (3) to the chief bankruptcy judge for the 
district in which the bankruptcy judge is assigned.
    ``(3)(A) Each chief bankruptcy judge shall submit an annual report 
to the Director of the Administrative Office of the United States 
Courts on the travel expenses of each bankruptcy judge assigned to the 
applicable district (including the travel expenses of the chief 
bankruptcy judge of such district).
    ``(B) The annual report under this paragraph shall include--
            ``(i) the travel expenses of each bankruptcy judge, with 
        the name of the bankruptcy judge to whom the travel expenses 
        apply;
            ``(ii) a description of the subject matter and purpose of 
        the travel relating to each travel expense identified under 
        clause (i), with the name of the bankruptcy judge to whom the 
        travel applies; and
            ``(iii) the number of days of each travel described under 
        clause (ii), with the name of the bankruptcy judge to whom the 
        travel applies.
    ``(4)(A) The Director of the Administrative Office of the United 
States Courts shall--
            ``(i) consolidate the reports submitted under paragraph (3) 
        into a single report; and
            ``(ii) annually submit such consolidated report to 
        Congress.
    ``(B) The consolidated report submitted under this paragraph shall 
include the specific information required under paragraph (3)(B), 
including the name of each bankruptcy judge with respect to clauses 
(i), (ii), and (iii) of paragraph (3)(B).''.

SEC. 323. PREFERRED PAYMENT OF CHILD SUPPORT IN CHAPTER 7 PROCEEDINGS.

    Section 507(a) of title 11, United States Code, is amended in the 
matter preceding paragraph (1), by inserting ``, except that, 
notwithstanding any other provision of this title, any expense or claim 
entitled to priority under paragraph (7) shall have first priority over 
any other expense or claim that has priority under any other provision 
of this subsection'' before the colon.

SEC. 324. PREFERRED PAYMENT OF CHILD SUPPORT IN CHAPTER 13 PROCEEDINGS.

    Section 1322(b)(1) of title 11, United States Code, is amended by 
striking the semicolon at the end and inserting the following: ``and 
provide for the payment of any claim entitled to priority under section 
507(a)(7) before the payment of any other claim entitled to priority 
under section 507(a), notwithstanding the priorities established under 
section 507(a).''.

SEC. 325. PAYMENT OF CHILD SUPPORT REQUIRED TO OBTAIN A DISCHARGE IN 
              CHAPTER 13 PROCEEDINGS.

    Title 11, United States Code, is amended--
            (1) in section 1325(a)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) if the debtor is required by a judicial or 
        administrative order to pay alimony to, maintenance for, or 
        support of a spouse, former spouse, or child of the debtor, the 
        debtor has paid all amounts payable under that order for 
        alimony, maintenance, or support that are due after the date on 
        which the petition is filed.''; and
            (2) in section 1328(a), as amended by section 314 of this 
        Act, in the matter preceding paragraph (1), by inserting ``, 
        and with respect to a debtor who is required by a judicial or 
        administrative order to pay alimony to, maintenance for, or 
        support of a spouse, former spouse, or child of the debtor, 
        only after the debtor certifies as of the later of the date of 
        that completion or the date of certification that all amounts 
        payable under that order for alimony, maintenance, or support 
        that are due before the date of that certification have been 
        paid in accordance with the plan if applicable, or if the 
        underlying debt is not treated by the plan, paid in full'' 
        after ``completion by the debtor of all payments under the 
        plan''.

SEC. 326. CHILD SUPPORT AND ALIMONY COLLECTION.

    Section 362(b) of title 11, United States Code, is amended--
            (1) in paragraph (17), by striking ``or'' at the end;
            (2) in paragraph (18), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(19) under subsection (a) with respect to the withholding 
        of income pursuant to an order as specified in section 466(b) 
        of the Social Security Act (42 U.S.C. 666(b)); or
            ``(20) under subsection (a) with respect to the 
        withholding, suspension, or restriction of drivers' licenses, 
        professional and occupational licenses, and recreational 
        licenses pursuant to State law, as specified in section 
        466(a)(15) of the Social Security Act (42 U.S.C. 666(a)(15)) or 
        with respect to the reporting of overdue support owed by an 
        absent parent to any consumer reporting agency as specified in 
        section 466(a)(7) of the Social Security Act (42 U.S.C. 
        666(a)(7)).''.

SEC. 327. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
              MAINTENANCE, AND SUPPORT.

    Section 523 of title 11, United States Code, as amended by section 
202 of this Act, is amended--
            (1) in subsection (a), by striking paragraph (5) and 
        inserting the following:
            ``(5) to a spouse, former spouse, or child of the debtor--
                    ``(A) for actual alimony to, maintenance for, or 
                support of that spouse or child;
                    ``(B) that was incurred by the debtor in the course 
                of a divorce or separation or in connection with a 
                separation agreement, property settlement agreement, 
                divorce decree, other order of a court of record, or 
                determination made in accordance with State or 
                territorial law by a governmental unit; or
                    ``(C) that is described in subparagraph (A) or (B) 
                and that is assigned pursuant to section 408(a)(3) of 
                the Social Security Act (42 U.S.C. 608(a)(3)), or to 
                the Federal Government, a State, or any political 
                subdivision of a State,
        but not to the extent that the debt (other than a debt 
        described in subparagraph (C)) is assigned to another entity, 
        voluntarily, by operation of law, or otherwise;''; and
            (2) in subsection (c), by striking ``(6), or (15)'' and 
        inserting ``or (6)''.

SEC. 328. ENFORCEMENT OF CHILD AND SPOUSAL SUPPORT.

    Section 522(c)(1) of title 11, United States Code, is amended by 
inserting ``, except that, notwithstanding any other Federal law or 
State law relating to exempted property, such exempt property shall be 
liable for debts of a kind specified in paragraph (1) or (5) of section 
523(a)'' before the semicolon at the end of the paragraph.

SEC. 329. DEPENDENT CHILD DEFINED.

    Section 101 of title 11, United States Code, is amended by 
inserting after paragraph (14) the following:
            ``(14A) `dependent child' means, with respect to an 
        individual, a child who has not attained the age of 18 and who 
        is a dependent of that individual, within the meaning of 
        section 152 of the Internal Revenue Code;''.

                    TITLE IV--TECHNICAL CORRECTIONS

SEC. 401. DEFINITIONS.

    Section 101 of title 11, United States Code, as amended by section 
317, is amended--
            (1) by striking ``In this title--'' and inserting ``In this 
        title:'';
            (2) in each paragraph, by inserting ``The term'' after the 
        paragraph designation;
            (3) in paragraph (35)(B), by striking ``paragraphs (21B) 
        and (33)(A)'' and inserting ``paragraphs (23) and (35)'';
            (4) in each of paragraphs (35A) and (38), by striking ``; 
        and'' at the end and inserting a period;
            (5) in paragraph (51B)--
                    (A) by inserting ``who is not a family farmer'' 
                after ``debtor'' the first place it appears; and
                    (B) by striking ``thereto having aggregate'' and 
                all that follows through the end of the paragraph;
            (6) by amending paragraph (54) to read as follows:
            ``(54) The term `transfer' means--
                    ``(A) the creation of a lien;
                    ``(B) the retention of title as a security 
                interest;
                    ``(C) the foreclosure of a debtor's equity of 
                redemption; or
                    ``(D) each mode, direct or indirect, absolute or 
                conditional, voluntary or involuntary, of disposing of 
                or parting with--
                            ``(i) property; or
                            ``(ii) an interest in property;'';
            (7) in each of paragraphs (1) through (35), in each of 
        paragraphs (36) and (37), and in each of paragraphs (40) 
        through (56A) (including paragraph (54), as amended by 
        paragraph (6) of this section), by striking the semicolon at 
        the end and inserting a period; and
            (8) by redesignating paragraphs (4) through (56A) in 
        entirely numerical sequence, so as to result in numerical 
        paragraph designations of (4) through (72), respectively.

SEC. 402. ADJUSTMENT OF DOLLAR AMOUNTS.

    Section 104 of title 11, United States Code, is amended by 
inserting ``522(f)(3), 707(b)(5),'' after ``522(d),'' each place it 
appears.

SEC. 403. EXTENSION OF TIME.

    Section 108(c)(2) of title 11, United States Code, is amended by 
striking ``922'' and all that follows through ``or'', and inserting 
``922, 1201, or''.

SEC. 404. WHO MAY BE A DEBTOR.

    Section 109(b)(2) of title 11, United States Code, is amended by 
striking ``subsection (c) or (d) of''.

SEC. 405. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE 
              BANKRUPTCY PETITIONS.

    Section 110(j)(3) of title 11, United States Code, is amended by 
striking ``attorney's'' and inserting ``attorneys' ''.

SEC. 406. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

    Section 328(a) of title 11, United States Code, is amended by 
inserting ``on a fixed or percentage fee basis,'' after ``hourly 
basis,''.

SEC. 407. SPECIAL TAX PROVISIONS.

    Section 346(g)(1)(C) of title 11, United States Code, is amended by 
striking ``, except'' and all that follows through ``1986''.

SEC. 408. EFFECT OF CONVERSION.

    Section 348(f)(2) of title 11, United States Code, is amended by 
inserting ``of the estate'' after ``property'' the first place it 
appears.

SEC. 409. AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, as amended by 
section 326 of this Act, is amended--
            (1) in paragraph (19), by striking ``or'' at the end;
            (2) in paragraph (20), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(21) under subsection (a) of this section of any transfer 
        that is not avoidable under section 544 and that is not 
        avoidable under section 549;
            ``(22) under subsection (a)(3) of this section, of the 
        continuation of any eviction, unlawful detainer action, or 
        similar proceeding by a lessor against a debtor involving 
        residential real property in which the debtor resides as a 
        tenant under a rental agreement; or
            ``(23) under subsection (a)(3) of this section, of the 
        commencement of any eviction, unlawful detainer action, or 
        similar proceeding by a lessor against a debtor involving 
        residential real property in which the debtor resides as a 
        tenant under a rental agreement that has terminated.''.

SEC. 410. AMENDMENT TO TABLE OF SECTIONS.

    The table of sections for chapter 5 of title 11, United States 
Code, is amended by striking the item relating to section 556 and 
inserting the following:

``556. Contractual right to liquidate a commodities contract or forward 
                            contract.''.

SEC. 411. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

    Section 503(b)(4) of title 11, United States Code, is amended by 
inserting ``subparagraph (A), (B), (C), (D), or (E) of'' before 
``paragraph (3)''.

SEC. 412. PRIORITIES.

    Section 507(a) of title 11, United States Code, as amended by 
section 323 of this Act, is amended--
            (1) in paragraph (3)(B), by striking the semicolon at the 
        end and inserting a period; and
            (2) in paragraph (7), by inserting ``unsecured'' after 
        ``allowed''.

SEC. 413. EXEMPTIONS.

    Section 522 of title 11, United States Code, as amended by section 
320 of this Act, is amended--
            (1) in subsection (f)(1)(A)(ii)(II)--
                    (A) by striking ``includes a liability designated 
                as'' and inserting ``is for a liability that is 
                designated as, and is actually in the nature of,''; and
                    (B) by striking ``, unless'' and all that follows 
                through ``support''; and
            (2) in subsection (g)(2), by striking ``subsection (f)(2)'' 
        and inserting ``subsection (f)(1)(B)''.

SEC. 414. EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, is amended--
            (1) in subsection (a)(3), by striking ``or (6)'' each place 
        it appears and inserting ``(6), or (15)'';
            (2) as amended by section 304(e) of Public Law 103-394 (108 
        Stat. 4133), in paragraph (15), by transferring such paragraph 
        so as to insert it after paragraph (14) of subsection (a);
            (3) in subsection (a)(9), by inserting ``, watercraft, or 
        aircraft'' after ``motor vehicle'';
            (4) in subsection (a)(15), as so redesignated by paragraph 
        (2) of this subsection, by inserting ``to a spouse, former 
        spouse, or child of the debtor and'' after ``(15)'';
            (5) in subsection (a)(17)--
                    (A) by striking ``by a court'' and inserting ``on a 
                prisoner by any court'';
                    (B) by striking ``section 1915 (b) or (f)'' and 
                inserting ``subsection (b) or (f)(2) of section 1915''; 
                and
                    (C) by inserting ``(or a similar non-Federal law)'' 
                after ``title 28'' each place it appears; and
            (6) in subsection (e), by striking ``a insured'' and 
        inserting ``an insured''.

SEC. 415. EFFECT OF DISCHARGE.

    Section 524(a)(3) of title 11, United States Code, is amended by 
striking ``section 523'' and all that follows through ``or that'' and 
inserting ``section 523, 1228(a)(1), or 1328(a)(1) of this title, or 
that''.

SEC. 416. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

    Section 525(c) of title 11, United States Code, is amended--
            (1) in paragraph (1), by inserting ``student'' before 
        ``grant'' the second place it appears; and
            (2) in paragraph (2), by striking ``the program operated 
        under part B, D, or E of'' and inserting ``any program operated 
        under''.

SEC. 417. PROPERTY OF THE ESTATE.

    Section 541(b)(4) of title 11, United States Code, is amended--
            (1) in subparagraph (B)(ii), by inserting ``365 or'' before 
        ``542''; and
            (2) by adding ``or'' at the end.

SEC. 418. LIMITATIONS ON AVOIDING POWERS.

    Section 546 of title 11, United States Code, is amended by 
redesignating the second subsection (g) (as added by section 222(a) of 
the Bankruptcy Reform Act of 1994; 108 Stat. 4129) as subsection (h).

SEC. 419. PREFERENCES.

    Section 547 of title 11, United States Code, is amended--
            (1) in subsection (b), by striking ``subsection (c)'' and 
        inserting ``subsections (c) and (h)''; and
            (2) by adding at the end the following:
    ``(h) If the trustee avoids under subsection (b) a security 
interest given between 90 days and 1 year before the date of the filing 
of the petition, by the debtor to an entity that is not an insider for 
the benefit of a creditor that is an insider, such security interest 
shall be considered to be avoided under this section only with respect 
to the creditor that is an insider.''.

SEC. 420. POSTPETITION TRANSACTIONS.

    Section 549(c) of title 11, United States Code, is amended--
            (1) by inserting ``an interest in'' after ``transfer of'';
            (2) by striking ``such property'' and inserting ``such real 
        property''; and
            (3) by striking ``the interest'' and inserting ``such 
        interest''.

SEC. 421. TECHNICAL AMENDMENT.

    Section 552(b)(1) of title 11, United States Code, is amended by 
striking ``product'' each place it appears and inserting ``products''.

SEC. 422. SETOFF.

    Section 553(b)(1) of title 11, United States Code, is amended by 
striking ``362(b)(14)'' and inserting ``362(b)(17)''.

SEC. 423. DISPOSITION OF PROPERTY OF THE ESTATE.

    Section 726(b) of title 11, United States Code, is amended by 
striking ``1009,''.

SEC. 424. GENERAL PROVISIONS.

    Section 901(a) of title 11, United States Code, is amended by 
inserting ``1123(d),'' after ``1123(b),''.

SEC. 425. APPOINTMENT OF ELECTED TRUSTEE.

    Section 1104(b) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2)(A) If an eligible, disinterested trustee is elected at a 
meeting of creditors under paragraph (1), the United States trustee 
shall file a report certifying that election. Upon the filing of a 
report under the preceding sentence--
            ``(i) the trustee elected under paragraph (1) shall be 
        considered to have been selected and appointed for purposes of 
        this section; and
            ``(ii) the service of any trustee appointed under 
        subsection (d) shall terminate.
    ``(B) In the case of any dispute arising out of an election under 
subparagraph (A), the court shall resolve the dispute.''.

SEC. 426. ABANDONMENT OF RAILROAD LINE.

    Section 1170(e)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 427. CONTENTS OF PLAN.

    Section 1172(c)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 428. DISCHARGE UNDER CHAPTER 12.

    Subsections (a) and (c) of section 1228 of title 11, United States 
Code, are amended by striking ``1222(b)(10)'' each place it appears and 
inserting ``1222(b)(9)''.

SEC. 429. EXTENSIONS.

    Section 302(d)(3) of the Bankruptcy, Judges, United States 
Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) 
is amended--
            (1) in subparagraph (A), in the matter following clause 
        (ii), by striking ``or October 1, 2002, whichever occurs 
        first''; and
            (2) in subparagraph (F)--
                    (A) in clause (i)--
                            (i) in subclause (II), by striking ``or 
                        October 1, 2002, whichever occurs first''; and
                            (ii) in the matter following subclause 
                        (II), by striking ``October 1, 2003, or''; and
                    (B) in clause (ii), in the matter following 
                subclause (II)--
                            (i) by striking ``before October 1, 2003, 
                        or''; and
                            (ii) by striking ``, whichever occurs 
                        first''.

SEC. 430. BANKRUPTCY CASES AND PROCEEDINGS.

    Section 1334(d) of title 28, United States Code, is amended--
            (1) by striking ``made under this subsection'' and 
        inserting ``made under subsection (c)''; and
            (2) by striking ``This subsection'' and inserting 
        ``Subsection (c) and this subsection''.

SEC. 431. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

    Section 156(a) of title 18, United States Code, is amended--
            (1) in the first undesignated paragraph--
                    (A) by inserting ``(1) the term'' before 
                ```bankruptcy''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (2) in the second undesignated paragraph--
                    (A) by inserting ``(2) the term'' before 
                ```document''; and
                    (B) by striking ``this title'' and inserting 
                ``title 11''.

SEC. 432. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this 
title and the amendments made by this title shall take effect on the 
date of enactment of this Act.
    (b) Application of Amendments.--The amendments made by this title 
shall apply only with respect to cases commenced under title 11, United 
States Code, on or after the date of enactment of this Act.
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