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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 975 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 975

  To amend title 11 of the United States Code, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 27, 2003

 Mr. Sensenbrenner (for himself, Mr. Boucher, Mr. Cannon, Mr. Andrews, 
Mr. Bachus, Mr. Castle, Mr. Chabot, Mr. Coble, Mr. Cramer, Mr. Crowley, 
  Mr. Dooley of California, Mr. Dreier, Mr. English, Mr. Feeney, Mr. 
 Flake, Mr. Foley, Mr. Goodlatte, Ms. Hart, Mr. Issa, Mr. Keller, Mr. 
  Kennedy of Minnesota, Mr. King of Iowa, Mr. Lucas of Kentucky, Mr. 
 Menendez, Mrs. Myrick, Mr. Ney, Mr. Oxley, Mr. Pence, Mr. Pitts, Ms. 
    Pryce of Ohio, Mr. Rothman, Mr. Royce, Mr. Ryun of Kansas, Mr. 
 Sessions, Mr. Smith of Washington, Mr. Smith of Michigan, Mr. Tauzin, 
    Mr. Terry, Mr. Tiberi, Mr. Toomey, Mr. Frost, Mrs. Biggert, Mr. 
   Reynolds, Mrs. Northup, Mr. LaTourette, Mrs. Tauscher, Ms. Eddie 
Bernice Johnson of Texas, Mr. Gibbons, Mr. Blunt, Mr. Simpson, and Mr. 
  Kingston) introduced the following bill; which was referred to the 
    Committee on the Judiciary, and in addition to the Committee on 
 Financial Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To amend title 11 of the United States Code, and for other purposes.

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

SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Bankruptcy Abuse 
Prevention and Consumer Protection Act of 2003''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; references; table of contents.
                    TITLE I--NEEDS-BASED BANKRUPTCY

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Sense of Congress and study.
Sec. 104. Notice of alternatives.
Sec. 105. Debtor financial management training test program.
Sec. 106. Credit counseling.
Sec. 107. Schedules of reasonable and necessary expenses.
                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

Sec. 201. Promotion of alternative dispute resolution.
Sec. 202. Effect of discharge.
Sec. 203. Discouraging abuse of reaffirmation practices.
Sec. 204. Preservation of claims and defenses upon sale of predatory 
                            loans.
Sec. 205. GAO study and report on reaffirmation process.
                   Subtitle B--Priority Child Support

Sec. 211. Definition of domestic support obligation.
Sec. 212. Priorities for claims for domestic support obligations.
Sec. 213. Requirements to obtain confirmation and discharge in cases 
                            involving domestic support obligations.
Sec. 214. Exceptions to automatic stay in domestic support obligation 
                            proceedings.
Sec. 215. Nondischargeability of certain debts for alimony, 
                            maintenance, and support.
Sec. 216. Continued liability of property.
Sec. 217. Protection of domestic support claims against preferential 
                            transfer motions.
Sec. 218. Disposable income defined.
Sec. 219. Collection of child support.
Sec. 220. Nondischargeability of certain educational benefits and 
                            loans.
                 Subtitle C--Other Consumer Protections

Sec. 221. Amendments to discourage abusive bankruptcy filings.
Sec. 222. Sense of Congress.
Sec. 223. Additional amendments to title 11, United States Code.
Sec. 224. Protection of retirement savings in bankruptcy.
Sec. 225. Protection of education savings in bankruptcy.
Sec. 226. Definitions.
Sec. 227. Restrictions on debt relief agencies.
Sec. 228. Disclosures.
Sec. 229. Requirements for debt relief agencies.
Sec. 230. GAO study.
Sec. 231. Protection of personally identifiable information.
Sec. 232. Consumer privacy ombudsman.
Sec. 233. Prohibition on disclosure of name of minor children.
                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

Sec. 301. Reinforcement of the fresh start.
Sec. 302. Discouraging bad faith repeat filings.
Sec. 303. Curbing abusive filings.
Sec. 304. Debtor retention of personal property security.
Sec. 305. Relief from the automatic stay when the debtor does not 
                            complete intended surrender of consumer 
                            debt collateral.
Sec. 306. Giving secured creditors fair treatment in chapter 13.
Sec. 307. Domiciliary requirements for exemptions.
Sec. 308. Reduction of homestead exemption for fraud.
Sec. 309. Protecting secured creditors in chapter 13 cases.
Sec. 310. Limitation on luxury goods.
Sec. 311. Automatic stay.
Sec. 312. Extension of period between bankruptcy discharges.
Sec. 313. Definition of household goods and antiques.
Sec. 314. Debt incurred to pay nondischargeable debts.
Sec. 315. Giving creditors fair notice in chapters 7 and 13 cases.
Sec. 316. Dismissal for failure to timely file schedules or provide 
                            required information.
Sec. 317. Adequate time to prepare for hearing on confirmation of the 
                            plan.
Sec. 318. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 319. Sense of Congress regarding expansion of rule 9011 of the 
                            Federal Rules of Bankruptcy Procedure.
Sec. 320. Prompt relief from stay in individual cases.
Sec. 321. Chapter 11 cases filed by individuals.
Sec. 322. Limitations on homestead exemption.
Sec. 323. Excluding employee benefit plan participant contributions and 
                            other property from the estate.
Sec. 324. Exclusive jurisdiction in matters involving bankruptcy 
                            professionals.
Sec. 325. United States trustee program filing fee increase.
Sec. 326. Sharing of compensation.
Sec. 327. Fair valuation of collateral.
Sec. 328. Defaults based on nonmonetary obligations.
Sec. 329. Clarification of postpetition wages and benefits.
Sec. 330 Delay of discharge during pendency of certain proceedings.
       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

Sec. 401. Adequate protection for investors.
Sec. 402. Meetings of creditors and equity security holders.
Sec. 403. Protection of refinance of security interest.
Sec. 404. Executory contracts and unexpired leases.
Sec. 405. Creditors and equity security holders committees.
Sec. 406. Amendment to section 546 of title 11, United States Code.
Sec. 407. Amendments to section 330(a) of title 11, United States Code.
Sec. 408. Postpetition disclosure and solicitation.
Sec. 409. Preferences.
Sec. 410. Venue of certain proceedings.
Sec. 411. Period for filing plan under chapter 11.
Sec. 412. Fees arising from certain ownership interests.
Sec. 413. Creditor representation at first meeting of creditors.
Sec. 414. Definition of disinterested person.
Sec. 415. Factors for compensation of professional persons.
Sec. 416. Appointment of elected trustee.
Sec. 417. Utility service.
Sec. 418. Bankruptcy fees.
Sec. 419. More complete information regarding assets of the estate.
            Subtitle B--Small Business Bankruptcy Provisions

Sec. 431. Flexible rules for disclosure statement and plan.
Sec. 432. Definitions.
Sec. 433. Standard form disclosure statement and plan.
Sec. 434. Uniform national reporting requirements.
Sec. 435. Uniform reporting rules and forms for small business cases.
Sec. 436. Duties in small business cases.
Sec. 437. Plan filing and confirmation deadlines.
Sec. 438. Plan confirmation deadline.
Sec. 439. Duties of the United States trustee.
Sec. 440. Scheduling conferences.
Sec. 441. Serial filer provisions.
Sec. 442. Expanded grounds for dismissal or conversion and appointment 
                            of trustee.
Sec. 443. Study of operation of title 11, United States Code, with 
                            respect to small businesses.
Sec. 444. Payment of interest.
Sec. 445. Priority for administrative expenses.
Sec. 446. Duties with respect to a debtor who is a plan administrator 
                            of an employee benefit plan.
Sec. 447. Appointment of committee of retired employees.
                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.
                       TITLE VI--BANKRUPTCY DATA

Sec. 601. Improved bankruptcy statistics.
Sec. 602. Uniform rules for the collection of bankruptcy data.
Sec. 603. Audit procedures.
Sec. 604. Sense of Congress regarding availability of bankruptcy data.
                  TITLE VII--BANKRUPTCY TAX PROVISIONS

Sec. 701. Treatment of certain liens.
Sec. 702. Treatment of fuel tax claims.
Sec. 703. Notice of request for a determination of taxes.
Sec. 704. Rate of interest on tax claims.
Sec. 705. Priority of tax claims.
Sec. 706. Priority property taxes incurred.
Sec. 707. No discharge of fraudulent taxes in chapter 13.
Sec. 708. No discharge of fraudulent taxes in chapter 11.
Sec. 709. Stay of tax proceedings limited to prepetition taxes.
Sec. 710. Periodic payment of taxes in chapter 11 cases.
Sec. 711. Avoidance of statutory tax liens prohibited.
Sec. 712. Payment of taxes in the conduct of business.
Sec. 713. Tardily filed priority tax claims.
Sec. 714. Income tax returns prepared by tax authorities.
Sec. 715. Discharge of the estate's liability for unpaid taxes.
Sec. 716. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 717. Standards for tax disclosure.
Sec. 718. Setoff of tax refunds.
Sec. 719. Special provisions related to the treatment of State and 
                            local taxes.
Sec. 720. Dismissal for failure to timely file tax returns.
           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 801. Amendment to add chapter 15 to title 11, United States Code.
Sec. 802. Other amendments to titles 11 and 28, United States Code.
                TITLE IX--FINANCIAL CONTRACT PROVISIONS

Sec. 901. Treatment of certain agreements by conservators or receivers 
                            of insured depository institutions.
Sec. 902. Authority of the corporation with respect to failed and 
                            failing institutions.
Sec. 903. Amendments relating to transfers of qualified financial 
                            contracts.
Sec. 904. Amendments relating to disaffirmance or repudiation of 
                            qualified financial contracts.
Sec. 905. Clarifying amendment relating to master agreements.
Sec. 906. Federal Deposit Insurance Corporation Improvement Act of 
                            1991.
Sec. 907. Bankruptcy law amendments.
Sec. 908. Recordkeeping requirements.
Sec. 909. Exemptions from contemporaneous execution requirement.
Sec. 910. Damage measure.
Sec. 911. SIPC stay.
       TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN

Sec. 1001. Permanent reenactment of chapter 12.
Sec. 1002. Debt limit increase.
Sec. 1003. Certain claims owed to governmental units.
Sec. 1004. Definition of family farmer.
Sec. 1005. Elimination of requirement that family farmer and spouse 
                            receive over 50 percent of income from 
                            farming operation in year prior to 
                            bankruptcy.
Sec. 1006. Prohibition of retroactive assessment of disposable income.
Sec. 1007. Family fishermen.
              TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

Sec. 1101. Definitions.
Sec. 1102. Disposal of patient records.
Sec. 1103. Administrative expense claim for costs of closing a health 
                            care business and other administrative 
                            expenses.
Sec. 1104. Appointment of ombudsman to act as patient advocate.
Sec. 1105. Debtor in possession; duty of trustee to transfer patients.
Sec. 1106. Exclusion from program participation not subject to 
                            automatic stay.
                    TITLE XII--TECHNICAL AMENDMENTS

Sec. 1201. Definitions.
Sec. 1202. Adjustment of dollar amounts.
Sec. 1203. Extension of time.
Sec. 1204. Technical amendments.
Sec. 1205. Penalty for persons who negligently or fraudulently prepare 
                            bankruptcy petitions.
Sec. 1206. Limitation on compensation of professional persons.
Sec. 1207. Effect of conversion.
Sec. 1208. Allowance of administrative expenses.
Sec. 1209. Exceptions to discharge.
Sec. 1210. Effect of discharge.
Sec. 1211. Protection against discriminatory treatment.
Sec. 1212. Property of the estate.
Sec. 1213. Preferences.
Sec. 1214. Postpetition transactions.
Sec. 1215. Disposition of property of the estate.
Sec. 1216. General provisions.
Sec. 1217. Abandonment of railroad line.
Sec. 1218. Contents of plan.
Sec. 1219. Bankruptcy cases and proceedings.
Sec. 1220. Knowing disregard of bankruptcy law or rule.
Sec. 1221. Transfers made by nonprofit charitable corporations.
Sec. 1222. Protection of valid purchase money security interests.
Sec. 1223. Bankruptcy judgeships.
Sec. 1224. Compensating trustees.
Sec. 1225. Amendment to section 362 of title 11, United States Code.
Sec. 1226. Judicial education.
Sec. 1227. Reclamation.
Sec. 1228. Providing requested tax documents to the court.
Sec. 1229. Encouraging creditworthiness.
Sec. 1230. Property no longer subject to redemption.
Sec. 1231. Trustees.
Sec. 1232. Bankruptcy forms.
Sec. 1233. Direct appeals of bankruptcy matters to courts of appeals.
Sec. 1234. Involuntary cases.
Sec. 1235. Federal election law fines and penalties as nondischargeable 
                            debt.
                 TITLE XIII--CONSUMER CREDIT DISCLOSURE

Sec. 1301. Enhanced disclosures under an open end credit plan.
Sec. 1302. Enhanced disclosure for credit extensions secured by a 
                            dwelling.
Sec. 1303. Disclosures related to ``introductory rates''.
Sec. 1304. Internet-based credit card solicitations.
Sec. 1305. Disclosures related to late payment deadlines and penalties.
Sec. 1306. Prohibition on certain actions for failure to incur finance 
                            charges.
Sec. 1307. Dual use debit card.
Sec. 1308. Study of bankruptcy impact of credit extended to dependent 
                            students.
Sec. 1309. Clarification of clear and conspicuous.
      TITLE XIV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 1401. 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 
              11 or 13'';
        and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) in paragraph (1), as so redesignated by 
                subparagraph (A) of this paragraph--
                            (i) in the first sentence--
                                    (I) by striking ``but not at the 
                                request or suggestion of'' and 
                                inserting ``trustee, bankruptcy 
                                administrator, or'';
                                    (II) by inserting ``, or, with the 
                                debtor's consent, convert such a case 
                                to a case under chapter 11 or 13 of 
                                this title,'' after ``consumer debts''; 
                                and
                                    (III) by striking ``a substantial 
                                abuse'' and inserting ``an abuse''; and
                            (ii) by striking the next to last sentence; 
                        and
                    (C) by adding at the end the following:
    ``(2)(A)(i) In considering under paragraph (1) whether the granting 
of relief would be an abuse of the provisions of this chapter, the 
court shall presume abuse exists if the debtor's current monthly income 
reduced by the amounts determined under clauses (ii), (iii), and (iv), 
and multiplied by 60 is not less than the lesser of--
            ``(I) 25 percent of the debtor's nonpriority unsecured 
        claims in the case, or $6,000, whichever is greater; or
            ``(II) $10,000.
    ``(ii)(I) The debtor's monthly expenses shall be the debtor's 
applicable monthly expense amounts specified under the National 
Standards and Local Standards, and the debtor's actual monthly expenses 
for the categories specified as Other Necessary Expenses issued by the 
Internal Revenue Service for the area in which the debtor resides, as 
in effect on the date of the entry of the order for relief, for the 
debtor, the dependents of the debtor, and the spouse of the debtor in a 
joint case, if the spouse is not otherwise a dependent. Notwithstanding 
any other provision of this clause, the monthly expenses of the debtor 
shall not include any payments for debts. In addition, the debtor's 
monthly expenses shall include the debtor's reasonably necessary 
expenses incurred to maintain the safety of the debtor and the family 
of the debtor from family violence as identified under section 309 of 
the Family Violence Prevention and Services Act, or other applicable 
Federal law. The expenses included in the debtor's monthly expenses 
described in the preceding sentence shall be kept confidential by the 
court. In addition, if it is demonstrated that it is reasonable and 
necessary, the debtor's monthly expenses may also include an additional 
allowance for food and clothing of up to 5 percent of the food and 
clothing categories as specified by the National Standards issued by 
the Internal Revenue Service.
    ``(II) In addition, the debtor's monthly expenses may include, if 
applicable, the continuation of actual expenses paid by the debtor that 
are reasonable and necessary for care and support of an elderly, 
chronically ill, or disabled household member or member of the debtor's 
immediate family (including parents, grandparents, siblings, children, 
and grandchildren of the debtor, the dependents of the debtor, and the 
spouse of the debtor in a joint case who is not a dependent) and who is 
unable to pay for such reasonable and necessary expenses.
    ``(III) In addition, for a debtor eligible for chapter 13, the 
debtor's monthly expenses may include the actual administrative 
expenses of administering a chapter 13 plan for the district in which 
the debtor resides, up to an amount of 10 percent of the projected plan 
payments, as determined under schedules issued by the Executive Office 
for United States Trustees.
    ``(IV) In addition, the debtor's monthly expenses may include the 
actual expenses for each dependent child less than 18 years of age, not 
to exceed $1,500 per year per child, to attend a private or public 
elementary or secondary school if the debtor provides documentation of 
such expenses and a detailed explanation of why such expenses are 
reasonable and necessary, and why such expenses are not already 
accounted for in the National Standards, Local Standards, or Other 
Necessary Expenses referred to in subclause (I)
    ``(V) In addition, the debtor's monthly expenses may include an 
allowance for housing and utilities, in excess of the allowance 
specified by the Local Standards for housing and utilities issued by 
the Internal Revenue Service, based on the actual expenses for home 
energy costs if the debtor provides documentation of such actual 
expenses and demonstrates that such actual expenses are reasonable and 
necessary.
    ``(iii) The debtor's average monthly payments on account of secured 
debts shall be calculated as the sum of--
            ``(I) the total of all amounts scheduled as contractually 
        due to secured creditors in each month of the 60 months 
        following the date of the petition; and
            ``(II) any additional payments to secured creditors 
        necessary for the debtor, in filing a plan under chapter 13 of 
        this title, to maintain possession of the debtor's primary 
        residence, motor vehicle, or other property necessary for the 
        support of the debtor and the debtor's dependents, that serves 
        as collateral for secured debts;
divided by 60.
    ``(iv) The debtor's expenses for payment of all priority claims 
(including priority child support and alimony claims) shall be 
calculated as the total amount of debts entitled to priority, divided 
by 60.
    ``(B)(i) In any proceeding brought under this subsection, the 
presumption of abuse may only be rebutted by demonstrating special 
circumstances that justify additional expenses or adjustments of 
current monthly income for which there is no reasonable alternative.
    ``(ii) In order to establish special circumstances, the debtor 
shall be required to itemize each additional expense or adjustment of 
income and to provide--
            ``(I) documentation for such expense or adjustment to 
        income; and
            ``(II) a detailed explanation of the special circumstances 
        that make such expenses or adjustment to income necessary and 
        reasonable.
    ``(iii) The debtor shall attest under oath to the accuracy of any 
information provided to demonstrate that additional expenses or 
adjustments to income are required.
    ``(iv) The presumption of abuse may only be rebutted if the 
additional expenses or adjustments to income referred to in clause (i) 
cause the product of the debtor's current monthly income reduced by the 
amounts determined under clauses (ii), (iii), and (iv) of subparagraph 
(A) when multiplied by 60 to be less than the lesser of--
            ``(I) 25 percent of the debtor's nonpriority unsecured 
        claims, or $6,000, whichever is greater; or
            ``(II) $10,000.
    ``(C) As part of the schedule of current income and expenditures 
required under section 521, the debtor shall include a statement of the 
debtor's current monthly income, and the calculations that determine 
whether a presumption arises under subparagraph (A)(i), that shows how 
each such amount is calculated.
    ``(3) In considering under paragraph (1) whether the granting of 
relief would be an abuse of the provisions of this chapter in a case in 
which the presumption in subparagraph (A)(i) of such paragraph does not 
apply or has been rebutted, the court shall consider--
            ``(A) whether the debtor filed the petition in bad faith; 
        or
            ``(B) the totality of the circumstances (including whether 
        the debtor seeks to reject a personal services contract and the 
        financial need for such rejection as sought by the debtor) of 
        the debtor's financial situation demonstrates abuse.
    ``(4)(A) The court, on its own initiative or on the motion of a 
party in interest, in accordance with the procedures described in rule 
9011 of the Federal Rules of Bankruptcy Procedure, may order the 
attorney for the debtor to reimburse the trustee for all reasonable 
costs in prosecuting a motion filed under section 707(b), including 
reasonable attorneys' fees, if--
            ``(i) a trustee files a motion for dismissal or conversion 
        under this subsection; and
            ``(ii) the court--
                    ``(I) grants such motion; and
                    ``(II) finds that the action of the attorney for 
                the debtor in filing under this chapter violated rule 
                9011 of the Federal Rules of Bankruptcy Procedure.
    ``(B) If the court finds that the attorney for the debtor violated 
rule 9011 of the Federal Rules of Bankruptcy Procedure, the court, on 
its own initiative or on the motion of a party in interest, in 
accordance with such procedures, may order--
            ``(i) the assessment of an appropriate civil penalty 
        against the attorney for the debtor; and
            ``(ii) the payment of such civil penalty to the trustee, 
        the United States trustee, or the bankruptcy administrator.
    ``(C) In the case of a petition, pleading, or written motion, the 
signature of an attorney shall constitute a certification that the 
attorney has--
            ``(i) performed a reasonable investigation into the 
        circumstances that gave rise to the petition, pleading, or 
        written motion; and
            ``(ii) determined that the petition, pleading, or written 
        motion--
                    ``(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).
    ``(D) The signature of an attorney on the petition shall constitute 
a certification that the attorney has no knowledge after an inquiry 
that the information in the schedules filed with such petition is 
incorrect.
    ``(5)(A) Except as provided in subparagraph (B) and subject to 
paragraph (6), the court, on its own initiative or on the motion of a 
party in interest, in accordance with the procedures described in rule 
9011 of the Federal Rules of Bankruptcy Procedure, may award a debtor 
all reasonable costs (including reasonable attorneys' fees) in 
contesting a motion filed by a party in interest (other than a trustee, 
United States trustee, or bankruptcy administrator) under this 
subsection if--
            ``(i) the court does not grant the motion; and
            ``(ii) the court finds that--
                    ``(I) the position of the party that filed the 
                motion violated rule 9011 of the Federal Rules of 
                Bankruptcy Procedure; or
                    ``(II) the attorney (if any) who filed the motion 
                did not comply with the requirements of clauses (i) and 
                (ii) of paragraph (4)(C), and the motion was made 
                solely for the purpose of coercing a debtor into 
                waiving a right guaranteed to the debtor under this 
                title.
    ``(B) A small business that has a claim of an aggregate amount less 
than $1,000 shall not be subject to subparagraph (A)(ii)(I).
    ``(C) For purposes of this paragraph--
            ``(i) the term `small business' means an unincorporated 
        business, partnership, corporation, association, or 
        organization that--
                    ``(I) has fewer than 25 full-time employees as 
                determined on the date on which the motion is filed; 
                and
                    ``(II) is engaged in commercial or business 
                activity; and
            ``(ii) the number of employees of a wholly owned subsidiary 
        of a corporation includes the employees of--
                    ``(I) a parent corporation; and
                    ``(II) any other subsidiary corporation of the 
                parent corporation.
    ``(6) Only the judge, United States trustee, or bankruptcy 
administrator may file a motion under section 707(b), if the current 
monthly income of the debtor, or in a joint case, the debtor and the 
debtor's spouse, as of the date of the order for relief, when 
multiplied by 12, is equal to or less than--
            ``(A) in the case of a debtor in a household of 1 person, 
        the median family income of the applicable State for 1 earner;
            ``(B) in the case of a debtor in a household of 2, 3, or 4 
        individuals, the highest median family income of the applicable 
        State for a family of the same number or fewer individuals; or
            ``(C) in the case of a debtor in a household exceeding 4 
        individuals, the highest median family income of the applicable 
        State for a family of 4 or fewer individuals, plus $525 per 
        month for each individual in excess of 4.
    ``(7)(A) No judge, United States trustee, trustee, bankruptcy 
administrator, or other party in interest may file a motion under 
paragraph (2) if the current monthly income of the debtor and the 
debtor's spouse combined, as of the date of the order for relief when 
multiplied by 12, is equal to or less than--
            ``(i) in the case of a debtor in a household of 1 person, 
        the median family income of the applicable State for 1 earner;
            ``(ii) in the case of a debtor in a household of 2, 3, or 4 
        individuals, the highest median family income of the applicable 
        State for a family of the same number or fewer individuals; or
            ``(iii) in the case of a debtor in a household exceeding 4 
        individuals, the highest median family income of the applicable 
        State for a family of 4 or fewer individuals , plus $525 per 
        month for each individual in excess of 4.
    ``(B) In a case that is not a joint case, current monthly income of 
the debtor's spouse shall not be considered for purposes of 
subparagraph (A) if--
            ``(i)(I) the debtor and the debtor's spouse are separated 
        under applicable nonbankruptcy law; or
            ``(II) the debtor and the debtor's spouse are living 
        separate and apart, other than for the purpose of evading 
        subparagraph (A); and
            ``(ii) the debtor files a statement under penalty of 
        perjury--
                    ``(I) specifying that the debtor meets the 
                requirement of subclause (I) or (II) of clause (i); and
                    ``(II) disclosing the aggregate, or best estimate 
                of the aggregate, amount of any cash or money payments 
                received from the debtor's spouse attributed to the 
                debtor's current monthly income.''.
    (b) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (10) the following:
            ``(10A) `current monthly income'--
                    ``(A) means the average monthly income from all 
                sources that the debtor receives (or in a joint case 
                the debtor and the debtor's spouse receive) without 
                regard to whether such income is taxable income, 
                derived during the 6-month period ending on--
                            ``(i) the last day of the calendar month 
                        immediately preceding the date of the 
                        commencement of the case if the debtor files 
                        the schedule of current income required by 
                        section 521(a)(1)(B)(ii); or
                            ``(ii) the date on which current income is 
                        determined by the court for purposes of this 
                        title if the debtor does not file the schedule 
                        of current income required by section 
                        521(a)(1)(B)(ii); and
                    ``(B) includes any amount paid by any entity other 
                than the debtor (or in a joint case the debtor and the 
                debtor's spouse), on a regular basis for the household 
                expenses of the debtor or the debtor's dependents (and 
                in a joint case the debtor's spouse if not otherwise a 
                dependent), but excludes benefits received under the 
                Social Security Act, payments to victims of war crimes 
                or crimes against humanity on account of their status 
                as victims of such crimes, and payments to victims of 
                international terrorism (as defined in section 2331 of 
                title 18) or domestic terrorism (as defined in section 
                2331 of title 18) on account of their status as victims 
                of such terrorism;''.
    (c) United States Trustee and Bankruptcy Administrator Duties.--
Section 704 of title 11, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The trustee shall--''; 
        and
            (2) by adding at the end the following:
    ``(b)(1) With respect to a debtor who is an individual in a case 
under this chapter--
            ``(A) the United States trustee or bankruptcy administrator 
        shall review all materials filed by the debtor and, not later 
        than 10 days after the date of the first meeting of creditors, 
        file with the court a statement as to whether the debtor's case 
        would be presumed to be an abuse under section 707(b); and
            ``(B) not later than 5 days after receiving a statement 
        under subparagraph (A), the court shall provide a copy of the 
        statement to all creditors.
    ``(2) The United States trustee or bankruptcy administrator shall, 
not later than 30 days after the date of filing a statement under 
paragraph (1), either file a motion to dismiss or convert under section 
707(b) or file a statement setting forth the reasons the United States 
trustee or bankruptcy administrator does not believe that such a motion 
would be appropriate, if the United States trustee or bankruptcy 
administrator determines that the debtor's case should be presumed to 
be an abuse under section 707(b) and the product of the debtor's 
current monthly income, multiplied by 12 is not less than--
            ``(A) in the case of a debtor in a household of 1 person, 
        the median family income of the applicable State for 1 earner; 
        or
            ``(B) in the case of a debtor in a household of 2 or more 
        individuals, the highest median family income of the applicable 
        State for a family of the same number or fewer individuals .''.
    (d) Notice.--Section 342 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(d) In a case under chapter 7 of this title in which the debtor 
is an individual and in which the presumption of abuse is triggered 
under section 707(b), the clerk shall give written notice to all 
creditors not later than 10 days after the date of the filing of the 
petition that the presumption of abuse has been triggered.''.
    (e) Nonlimitation of Information.--Nothing in this title shall 
limit the ability of a creditor to provide information to a judge 
(except for information communicated ex parte, unless otherwise 
permitted by applicable law), United States trustee, bankruptcy 
administrator or trustee.
    (f) Dismissal for Certain Crimes.--Section 707 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(c)(1) In this subsection--
            ``(A) the term `crime of violence' has the meaning given 
        such term in section 16 of title 18; and
            ``(B) the term `drug trafficking crime' has the meaning 
        given such term in section 924(c)(2) of title 18.
    ``(2) Except as provided in paragraph (3), after notice and a 
hearing, the court, on a motion by the victim of a crime of violence or 
a drug trafficking crime, may when it is in the best interest of the 
victim dismiss a voluntary case filed under this chapter by a debtor 
who is an individual if such individual was convicted of such crime.
    ``(3) The court may not dismiss a case under paragraph (2) if the 
debtor establishes by a preponderance of the evidence that the filing 
of a case under this chapter is necessary to satisfy a claim for a 
domestic support obligation.''.
    (g) Confirmation of Plan.--Section 1325(a) of title 11, United 
States Code, is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period and inserting 
        a semicolon; and
            (3) by inserting after paragraph (6) the following:
            ``(7) the action of the debtor in filing the petition was 
        in good faith;''.
    (h) Applicability of Means Test to Chapter 13.--Section 1325(b) of 
title 11, United States Code, is amended--
            (1) in paragraph (1)(B), by inserting ``to unsecured 
        creditors'' after ``to make payments''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) For purposes of this subsection, the term `disposable 
        income' means current monthly income received by the debtor 
        (other than child support payments, foster care payments, or 
        disability payments for a dependent child made in accordance 
        with applicable nonbankruptcy law to the extent reasonably 
        necessary to be expended for such child) less amounts 
        reasonably necessary to be expended--
                    ``(A) for the maintenance or support of the debtor 
                or a dependent of the debtor or for a domestic support 
                obligation that first becomes payable after the date 
                the petition is filed and for charitable contributions 
                (that meet the definition of `charitable contribution' 
                under section 548(d)(3) to a qualified religious or 
                charitable entity or organization (as defined in 
                section 548(d)(4)) in an amount not to exceed 15 
                percent of gross income of the debtor for the year in 
                which the contributions are made; and
                    ``(B) if the debtor is engaged in business, for the 
                payment of expenditures necessary for the continuation, 
                preservation, and operation of such business.
            ``(3) Amounts reasonably necessary to be expended under 
        paragraph (2) shall be determined in accordance with 
        subparagraphs (A) and (B) of section 707(b)(2), if the debtor 
        has current monthly income, when multiplied by 12, greater 
        than--
                    ``(A) in the case of a debtor in a household of 1 
                person, the median family income of the applicable 
                State for 1 earner;
                    ``(B) in the case of a debtor in a household of 2, 
                3, or 4 individuals, the highest median family income 
                of the applicable State for a family of the same number 
                or fewer individuals; or
                    ``(C) in the case of a debtor in a household 
                exceeding 4 individuals, the highest median family 
                income of the applicable State for a family of 4 or 
                fewer individuals , plus $525 per month for each 
                individual in excess of 4.''.
    (i) Special Allowance for Health Insurance.--Section 1329(a) of 
title 11, United States Code, is amended--
            (1) in paragraph (2) by striking ``or'' at the end;
            (2) in paragraph (3) by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) reduce amounts to be paid under the plan by the 
        actual amount expended by the debtor to purchase health 
        insurance for the debtor (and for any dependent of the debtor 
        if such dependent does not otherwise have health insurance 
        coverage) if the debtor documents the cost of such insurance 
        and demonstrates that--
                    ``(A) such expenses are reasonable and necessary;
                    ``(B)(i) if the debtor previously paid for health 
                insurance, the amount is not materially larger than the 
                cost the debtor previously paid or the cost necessary 
                to maintain the lapsed policy; or
                    ``(ii) if the debtor did not have health insurance, 
                the amount is not materially larger than the reasonable 
                cost that would be incurred by a debtor who purchases 
                health insurance, who has similar income, expenses, 
                age, and health status, and who lives in the same 
                geographical location with the same number of 
                dependents who do not otherwise have health insurance 
                coverage; and
                    ``(C) the amount is not otherwise allowed for 
                purposes of determining disposable income under section 
                1325(b) of this title;
        and upon request of any party in interest, files proof that a 
        health insurance policy was purchased.''.
    (j) Adjustment of Dollar Amounts.--Section 104(b) of title 11, 
United States Code, is amended by striking ``and 523(a)(2)(C)'' each 
place it appears and inserting ``523(a)(2)(C), 707(b), and 
1325(b)(3)''.
    (k) Definition of `Median Family Income'.--Section 101 of title 11, 
United States Code, is amended by inserting after paragraph (39) the 
following:
            ``(39A) `median family income' means for any year--
                    ``(A) the median family income both calculated and 
                reported by the Bureau of the Census in the then most 
                recent year; and
                    ``(B) if not so calculated and reported in the then 
                current year, adjusted annually after such most recent 
                year until the next year in which median family income 
                is both calculated and reported by the Bureau of the 
                Census, to reflect the percentage change in the 
                Consumer Price Index for All Urban Consumers during the 
                period of years occurring after such most recent year 
                and before such current year;''.
    (k) Clerical Amendment.--The table of sections for 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 11 or 
                            13.''.

SEC. 103. SENSE OF CONGRESS AND STUDY.

    (a) Sense of Congress.--It is the sense of Congress that the 
Secretary of the Treasury has the authority to alter the Internal 
Revenue Service standards established to set guidelines for repayment 
plans as needed to accommodate their use under section 707(b) of title 
11, United States Code.
    (b) Study.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Director of the Executive Office for 
        United States Trustees shall submit a report to the Committee 
        on the Judiciary of the Senate and the Committee on the 
        Judiciary of the House of Representatives containing the 
        findings of the Director regarding the utilization of Internal 
        Revenue Service standards for determining--
                    (A) the current monthly expenses of a debtor under 
                section 707(b) of title 11, United States Code; and
                    (B) the impact that the application of such 
                standards has had on debtors and on the bankruptcy 
                courts.
            (2) Recommendation.--The report under paragraph (1) may 
        include recommendations for amendments to title 11, United 
        States Code, that are consistent with the findings of the 
        Director under paragraph (1).

SEC. 104. NOTICE OF ALTERNATIVES.

    Section 342(b) of title 11, United States Code, is amended to read 
as follows:
    ``(b) Before the commencement of a case under this title by an 
individual whose debts are primarily consumer debts, the clerk shall 
give to such individual written notice containing--
            ``(1) a brief description of--
                    ``(A) chapters 7, 11, 12, and 13 and the general 
                purpose, benefits, and costs of proceeding under each 
                of those chapters; and
                    ``(B) the types of services available from credit 
                counseling agencies; and
            ``(2) statements specifying that--
                    ``(A) a person who knowingly and fraudulently 
                conceals assets or makes a false oath or statement 
                under penalty of perjury in connection with a 
                bankruptcy case shall be subject to fine, imprisonment, 
                or both; and
                    ``(B) all information supplied by a debtor in 
                connection with a bankruptcy case is subject to 
                examination by the Attorney General.''.

SEC. 105. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

    (a) Development of Financial Management and Training Curriculum and 
Materials.--The Director of the Executive Office for United States 
Trustees (in this section referred to as the ``Director'') shall 
consult with a wide range of individuals who are experts in the field 
of debtor education, including trustees who serve in cases under 
chapter 13 of title 11, United States Code, and who operate financial 
management education programs for debtors, and shall develop a 
financial management training curriculum and materials that can be used 
to educate debtors who are individuals on how to better manage their 
finances.
    (b) Test.--
            (1) Selection of districts.--The Director shall select 6 
        judicial districts of the United States in which to test the 
        effectiveness of the financial management training curriculum 
        and materials developed under subsection (a).
            (2) Use.--For an 18-month period beginning not later than 
        270 days after the date of enactment of this Act, such 
        curriculum and materials shall be, for the 6 judicial districts 
        selected under paragraph (1), used as the instructional course 
        concerning personal financial management for purposes of 
        section 111 of title 11, United States Code.
    (c) Evaluation.--
            (1) In general.--During the 18-month period referred to in 
        subsection (b), the Director shall evaluate the effectiveness 
        of--
                    (A) the financial management training curriculum 
                and materials developed under subsection (a); and
                    (B) a sample of existing consumer education 
                programs such as those described in the Report of the 
                National Bankruptcy Review Commission (October 20, 
                1997) that are representative of consumer education 
                programs carried out by the credit industry, by 
                trustees serving under chapter 13 of title 11, United 
                States Code, and by consumer counseling groups.
            (2) Report.--Not later than 3 months after concluding such 
        evaluation, the Director shall submit a report to the Speaker 
        of the House of Representatives and the President pro tempore 
        of the Senate, for referral to the appropriate committees of 
        the Congress, containing the findings of the Director regarding 
        the effectiveness of such curriculum, such materials, and such 
        programs and their costs.

SEC. 106. CREDIT COUNSELING.

    (a) Who May Be a Debtor.--Section 109 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(h)(1) Subject to paragraphs (2) and (3), and notwithstanding any 
other provision of this section, an individual may not be a debtor 
under this title unless that individual has, during the 180-day period 
preceding the date of filing of the petition of that individual, 
received from an approved nonprofit budget and credit counseling agency 
described in section 111(a) an individual or group briefing (including 
a briefing conducted by telephone or on the Internet) that outlined the 
opportunities for available credit counseling and assisted that 
individual in performing a related budget analysis.
    ``(2)(A) Paragraph (1) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of the bankruptcy court of that district determines that 
the approved nonprofit budget and credit counseling agencies for that 
district are not reasonably able to provide adequate services to the 
additional individuals who would otherwise seek credit counseling from 
that agency by reason of the requirements of paragraph (1).
    ``(B) Each United States trustee or bankruptcy administrator that 
makes a determination described in subparagraph (A) shall review that 
determination not later than 1 year after the date of that 
determination, and not less frequently than every year thereafter. 
Notwithstanding the preceding sentence, a nonprofit budget and credit 
counseling agency may be disapproved by the United States trustee or 
bankruptcy administrator at any time.
    ``(3)(A) Subject to subparagraph (B), the requirements of paragraph 
(1) shall not apply with respect to a debtor who submits to the court a 
certification that--
            ``(i) describes exigent circumstances that merit a waiver 
        of the requirements of paragraph (1);
            ``(ii) states that the debtor requested credit counseling 
        services from an approved nonprofit budget and credit 
        counseling agency, but was unable to obtain the services 
        referred to in paragraph (1) during the 5-day period beginning 
        on the date on which the debtor made that request; and
            ``(iii) is satisfactory to the court.
    ``(B) With respect to a debtor, an exemption under subparagraph (A) 
shall cease to apply to that debtor on the date on which the debtor 
meets the requirements of paragraph (1), but in no case may the 
exemption apply to that debtor after the date that is 30 days after the 
debtor files a petition, except that the court, for cause, may order an 
additional 15 days.''.
    (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, except that this 
        paragraph shall not apply with respect to a debtor who resides 
        in a district for which the United States trustee or bankruptcy 
        administrator of such district determines that the approved 
        instructional courses are not adequate to service the 
        additional individuals required to complete such instructional 
        courses under this section (Each United States trustee or 
        bankruptcy administrator who makes a determination described in 
        this paragraph shall review such determination not later than 1 
        year after the date of such determination, and not less 
        frequently than annually thereafter.).''.
    (c) Chapter 13 Discharge.--Section 1328 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(g)(1) 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.
    ``(2) Paragraph (1) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of such district determines that the approved 
instructional courses are not adequate to service the additional 
individuals who would be required to complete such instructional course 
by reason of the requirements of this section.
    ``(3) Each United States trustee or bankruptcy administrator who 
makes a determination described in paragraph (2) shall review such 
determination not later than 1 year after the date of such 
determination, and not less frequently than annually thereafter.''.
    (c) Chapter 13 Discharge.--Section 1328 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(g) 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.
    ``(h) Subsection (g) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of the bankruptcy court of that district determines that 
the approved instructional courses are not adequate to service the 
additional individuals who would be required to complete the 
instructional course by reason of the requirements of this section.
    ``(i) Each United States trustee or bankruptcy administrator that 
makes a determination described in subsection (h) shall review that 
determination not later than 1 year after the date of that 
determination, and not less frequently than every year thereafter.''.
    (d) Debtor's Duties.--Section 521 of title 11, United States Code, 
is amended--
            (1) by inserting ``(a)'' before ``The debtor shall--''; and
            (2) by adding at the end the following:
    ``(b) In addition to the requirements under subsection (a), a 
debtor who is an individual shall file with the court--
            ``(1) a certificate from the approved nonprofit budget and 
        credit counseling agency that provided the debtor services 
        under section 109(h) describing the services provided to the 
        debtor; and
            ``(2) a copy of the debt repayment plan, if any, developed 
        under section 109(h) through the approved nonprofit budget and 
        credit counseling agency referred to in paragraph (1).''.
    (e) 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 agencies; financial management 
              instructional courses
    ``(a) The clerk shall maintain a publicly available list of--
            ``(1) credit counseling agencies that provide 1 or more 
        programs described in section 109(h) currently approved by the 
        United States trustee or the bankruptcy administrator for the 
        district, as applicable; and
            ``(2) instructional courses concerning personal financial 
        management currently approved by the United States trustee or 
        the bankruptcy administrator for the district, as applicable.
    ``(b) The United States trustee or bankruptcy administrator shall 
only approve a credit counseling agency or instructional course 
concerning personal financial management as follows:
            ``(1) The United States trustee or bankruptcy administrator 
        shall have thoroughly reviewed the qualifications of the credit 
        counseling agency or of the provider of the instructional 
        course under the standards set forth in this section, and the 
        programs or instructional courses which will be offered by such 
        agency or provider, and may require an agency or provider of an 
        instructional course which has sought approval to provide 
        information with respect to such review.
            ``(2) The United States trustee or bankruptcy administrator 
        shall have determined that the credit counseling agency or 
        instructional course fully satisfies the applicable standards 
        set forth in this section.
            ``(3) When an agency or instructional course is initially 
        approved, such approval shall be for a probationary period not 
        to exceed 6 months. An agency or instructional course is 
        initially approved if it did not appear on the approved list 
        for the district under subsection (a) immediately prior to 
        approval.
            ``(4) At the conclusion of the probationary period under 
        paragraph (3), the United States trustee or bankruptcy 
        administrator may only approve for an additional 1-year period, 
        and for successive 1-year periods thereafter, any agency or 
        instructional course which has demonstrated during the 
        probationary or subsequent period that such agency or 
        instructional course--
                    ``(A) has met the standards set forth under this 
                section during such period; and
                    ``(B) can satisfy such standards in the future.
            ``(5) Not later than 30 days after any final decision under 
        paragraph (4), that occurs either after the expiration of the 
        initial probationary period, or after any 2-year period 
        thereafter, an interested person may seek judicial review of 
        such decision in the appropriate district court of the United 
        States.
    ``(c)(1) The United States trustee or bankruptcy administrator 
shall only approve a credit counseling agency that demonstrates that it 
will provide qualified counselors, maintain adequate provision for 
safekeeping and payment of client funds, provide adequate counseling 
with respect to client credit problems, and deal responsibly and 
effectively with other matters as relate to the quality, effectiveness, 
and financial security of such programs.
    ``(2) To be approved by the United States trustee or bankruptcy 
administrator, a credit counseling agency shall, at a minimum--
            ``(A) be a nonprofit budget and credit counseling agency, 
        the majority of the board of directors of which--
                    ``(i) are not employed by the agency; and
                    ``(ii) will not directly or indirectly benefit 
                financially from the outcome of a credit counseling 
                session;
            ``(B) if a fee is charged for counseling services, charge a 
        reasonable fee, and provide services without regard to ability 
        to pay the fee;
            ``(C) provide for safekeeping and payment of client funds, 
        including an annual audit of the trust accounts and appropriate 
        employee bonding;
            ``(D) provide full disclosures to clients, including 
        funding sources, counselor qualifications, possible impact on 
        credit reports, and any costs of such program that will be paid 
        by the debtor and how such costs will be paid;
            ``(E) provide adequate counseling with respect to client 
        credit problems that includes an analysis of their current 
        situation, what brought them to that financial status, and how 
        they can develop a plan to handle the problem without incurring 
        negative amortization of their debts;
            ``(F) provide trained counselors who receive no commissions 
        or bonuses based on the counseling session outcome, and who 
        have adequate experience, and have been adequately trained to 
        provide counseling services to individuals in financial 
        difficulty, including the matters described in subparagraph 
        (E);
            ``(G) demonstrate adequate experience and background in 
        providing credit counseling; and
            ``(H) have adequate financial resources to provide 
        continuing support services for budgeting plans over the life 
        of any repayment plan.
    ``(d) The United States trustee or bankruptcy administrator shall 
only approve an instructional course concerning personal financial 
management--
            ``(1) for an initial probationary period under subsection 
        (b)(3) if the course will provide at a minimum--
                    ``(A) trained personnel with adequate experience 
                and training in providing effective instruction and 
                services;
                    ``(B) learning materials and teaching methodologies 
                designed to assist debtors in understanding personal 
                financial management and that are consistent with 
                stated objectives directly related to the goals of such 
                instructional course;
                    ``(C) adequate facilities situated in reasonably 
                convenient locations at which such instructional course 
                is offered, except that such facilities may include the 
                provision of such instructional course or program by 
                telephone or through the Internet, if such 
                instructional course or program is effective; and
                    ``(D) the preparation and retention of reasonable 
                records (which shall include the debtor's bankruptcy 
                case number) to permit evaluation of the effectiveness 
                of such instructional course or program, including any 
                evaluation of satisfaction of instructional course or 
                program requirements for each debtor attending such 
                instructional course or program, which shall be 
                available for inspection and evaluation by the 
                Executive Office for United States Trustees, the United 
                States trustee, bankruptcy administrator, or chief 
                bankruptcy judge for the district in which such 
                instructional course or program is offered; and
            ``(2) for any 1-year period if the provider thereof has 
        demonstrated that the course meets the standards of paragraph 
        (1) and, in addition--
                    ``(A) has been effective in assisting a substantial 
                number of debtors to understand personal financial 
                management; and
                    ``(B) is otherwise likely to increase substantially 
                debtor understanding of personal financial management.
    ``(e) The district court may, at any time, investigate the 
qualifications of a credit counseling agency referred to in subsection 
(a), and request production of documents to ensure the integrity and 
effectiveness of such credit counseling agencies. The district court 
may, at any time, remove from the approved list under subsection (a) a 
credit counseling agency upon finding such agency does not meet the 
qualifications of subsection (b).
    ``(f) The United States trustee or bankruptcy administrator shall 
notify the clerk that a credit counseling agency or an instructional 
course is no longer approved, in which case the clerk shall remove it 
from the list maintained under subsection (a).
    ``(g)(1) No credit counseling agency may provide to a credit 
reporting agency information concerning whether a debtor who has 
received or sought instruction concerning personal financial management 
from the credit counseling agency.
    ``(2) A credit counseling agency that willfully or negligently 
fails to comply with any requirement under this title with respect to a 
debtor shall be liable for damages in an amount equal to the sum of--
            ``(A) any actual damages sustained by the debtor as a 
        result of the violation; and
            ``(B) any court costs or reasonable attorneys' fees (as 
        determined by the court) incurred in an action to recover those 
        damages.''.
            (2) Clerical amendment.--The table of sections for chapter 
        1 of title 11, United States Code, is amended by adding at the 
        end the following:

``111. Credit counseling agencies; financial management instructional 
                            courses.''.
    (f) Limitation.--Section 362 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(i) If a case commenced under chapter 7, 11, or 13 is dismissed 
due to the creation of a debt repayment plan, for purposes of 
subsection (c)(3), any subsequent case commenced by the debtor under 
any such chapter shall not be presumed to be filed not in good faith.
    ``(j) On request of a party in interest, the court shall issue an 
order under subsection (c) confirming that the automatic stay has been 
terminated.''.

SEC. 107. SCHEDULES OF REASONABLE AND NECESSARY EXPENSES.

    For purposes of section 707(b) of title 11, United States Code, as 
amended by this Act, the Director of the Executive Office for United 
States Trustees shall, not later than 180 days after the date of 
enactment of this Act, issue schedules of reasonable and necessary 
administrative expenses of administering a chapter 13 plan for each 
judicial district of the United States.

                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.

    (a) Reduction of Claim.--Section 502 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(k)(1) The court, on the motion of the debtor and after a 
hearing, may reduce a claim filed under this section based in whole on 
an unsecured consumer debt by not more than 20 percent of the claim, 
if--
            ``(A) the claim was filed by a creditor who unreasonably 
        refused to negotiate a reasonable alternative repayment 
        schedule proposed by an approved credit counseling agency 
        described in section 111 acting on behalf of the debtor;
            ``(B) the offer of the debtor under subparagraph (A)--
                    ``(i) was made at least 60 days before the filing 
                of the petition; and
                    ``(ii) provided for payment of at least 60 percent 
                of the amount of the debt over a period not to exceed 
                the repayment period of the loan, or a reasonable 
                extension thereof; and
            ``(C) no part of the debt under the alternative repayment 
        schedule is nondischargeable.
    ``(2) The debtor shall have the burden of proving, by clear and 
convincing evidence, that--
            ``(A) the creditor unreasonably refused to consider the 
        debtor's proposal; and
            ``(B) the proposed alternative repayment schedule was made 
        prior to expiration of the 60-day period specified in paragraph 
        (1)(B)(i).''.
    (b) Limitation on Avoidability.--Section 547 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(h) The trustee may not avoid a transfer if such transfer was 
made as a part of an alternative repayment plan between the debtor and 
any creditor of the debtor created by an approved credit counseling 
agency.''.

SEC. 202. 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, unless the order confirming 
the plan is revoked, the plan is in default, or the creditor has not 
received payments required to be made under the plan 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) if the act of the creditor to collect and failure to 
credit payments in the manner required by the plan caused material 
injury to the debtor.
    ``(j) Subsection (a)(2) does not operate as an injunction against 
an act by a creditor that is the holder of a secured claim, if--
            ``(1) such creditor retains a security interest in real 
        property that is the principal residence of the debtor;
            ``(2) such act is in the ordinary course of business 
        between the creditor and the debtor; and
            ``(3) such act is limited to seeking or obtaining periodic 
        payments associated with a valid security interest in lieu of 
        pursuit of in rem relief to enforce the lien.''.

SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION PRACTICES.

    (a) In General.--Section 524 of title 11, United States Code, as 
amended section 202, is amended--
            (1) in subsection (c), by striking paragraph (2) and 
        inserting the following:
            ``(2) the debtor received the disclosures described in 
        subsection (k) at or before the time at which the debtor signed 
        the agreement;''; and
            (2) by adding at the end the following:
    ``(k)(1) The disclosures required under subsection (c)(2) shall 
consist of the disclosure statement described in paragraph (3), 
completed as required in that paragraph, together with the agreement, 
statement, declaration, motion and order described, respectively, in 
paragraphs (4) through (8), and shall be the only disclosures required 
in connection with the reaffirmation.
    ``(2) Disclosures made under paragraph (1) shall be made clearly 
and conspicuously and in writing. The terms `Amount Reaffirmed' and 
`Annual Percentage Rate' shall be disclosed more conspicuously than 
other terms, data or information provided in connection with this 
disclosure, except that the phrases `Before agreeing to reaffirm a 
debt, review these important disclosures' and `Summary of Reaffirmation 
Agreement' may be equally conspicuous. Disclosures may be made in a 
different order and may use terminology different from that set forth 
in paragraphs (2) through (8), except that the terms `Amount 
Reaffirmed' and `Annual Percentage Rate' must be used where indicated.
    ``(3) The disclosure statement required under this paragraph shall 
consist of the following:
            ``(A) The statement: `Part A: Before agreeing to reaffirm a 
        debt, review these important disclosures:';
            ``(B) Under the heading `Summary of Reaffirmation 
        Agreement', the statement: `This Summary is made pursuant to 
        the requirements of the Bankruptcy Code';
            ``(C) The `Amount Reaffirmed', using that term, which shall 
        be--
                    ``(i) the total amount which the debtor agrees to 
                reaffirm, and
                    ``(ii) the total of any other fees or cost accrued 
                as of the date of the disclosure statement.
            ``(D) In conjunction with the disclosure of the `Amount 
        Reaffirmed', the statements--
                    ``(i) `The amount of debt you have agreed to 
                reaffirm'; and
                    ``(ii) `Your credit agreement may obligate you to 
                pay additional amounts which may come due after the 
                date of this disclosure. Consult your credit 
                agreement.'.
            ``(E) The `Annual Percentage Rate', using that term, which 
        shall be disclosed as--
                    ``(i) if, at the time the petition is filed, the 
                debt is an extension of credit under an open end credit 
                plan, as the terms `credit' and `open end credit plan' 
                are defined in section 103 of the Truth in Lending Act, 
                then--
                            ``(I) the annual percentage rate determined 
                        under paragraphs (5) and (6) of section 127(b) 
                        of the Truth in Lending Act, as applicable, as 
                        disclosed to the debtor in the most recent 
                        periodic statement prior to the agreement or, 
                        if no such periodic statement has been given to 
                        the debtor during the prior 6 months, the 
                        annual percentage rate as it would have been so 
                        disclosed at the time the disclosure statement 
                        is given to the debtor, or to the extent this 
                        annual percentage rate is not readily available 
                        or not applicable, then
                            ``(II) the simple interest rate applicable 
                        to the amount reaffirmed as of the date the 
                        disclosure statement is given to the debtor, or 
                        if different simple interest rates apply to 
                        different balances, the simple interest rate 
                        applicable to each such balance, identifying 
                        the amount of each such balance included in the 
                        amount reaffirmed, or
                            ``(III) if the entity making the disclosure 
                        elects, to disclose the annual percentage rate 
                        under subclause (I) and the simple interest 
                        rate under subclause (II);
                    ``(ii) if, at the time the petition is filed, the 
                debt is an extension of credit other than under an open 
                end credit plan, as the terms `credit' and `open end 
                credit plan' are defined in section 103 of the Truth in 
                Lending Act, then--
                            ``(I) the annual percentage rate under 
                        section 128(a)(4) of the Truth in Lending Act, 
                        as disclosed to the debtor in the most recent 
                        disclosure statement given to the debtor prior 
                        to the reaffirmation agreement with respect to 
                        the debt, or, if no such disclosure statement 
                        was given to the debtor, the annual percentage 
                        rate as it would have been so disclosed at the 
                        time the disclosure statement is given to the 
                        debtor, or to the extent this annual percentage 
                        rate is not readily available or not 
                        applicable, then
                            ``(II) the simple interest rate applicable 
                        to the amount reaffirmed as of the date the 
                        disclosure statement is given to the debtor, or 
                        if different simple interest rates apply to 
                        different balances, the simple interest rate 
                        applicable to each such balance, identifying 
                        the amount of such balance included in the 
                        amount reaffirmed, or
                            ``(III) if the entity making the disclosure 
                        elects, to disclose the annual percentage rate 
                        under (I) and the simple interest rate under 
                        (II).
            ``(F) If the underlying debt transaction was disclosed as a 
        variable rate transaction on the most recent disclosure given 
        under the Truth in Lending Act, by stating `The interest rate 
        on your loan may be a variable interest rate which changes from 
        time to time, so that the annual percentage rate disclosed here 
        may be higher or lower.'.
            ``(G) If the debt is secured by a security interest which 
        has not been waived in whole or in part or determined to be 
        void by a final order of the court at the time of the 
        disclosure, by disclosing that a security interest or lien in 
        goods or property is asserted over some or all of the 
        obligations the debtor is reaffirming and listing the items and 
        their original purchase price that are subject to the asserted 
        security interest, or if not a purchase-money security interest 
        then listing by items or types and the original amount of the 
        loan.
            ``(H) At the election of the creditor, a statement of the 
        repayment schedule using 1 or a combination of the following--
                    ``(i) by making the statement: `Your first payment 
                in the amount of $______ is due on ______ but the 
                future payment amount may be different. Consult your 
                reaffirmation or credit agreement, as applicable.', and 
                stating the amount of the first payment and the due 
                date of that payment in the places provided;
                    ``(ii) by making the statement: `Your payment 
                schedule will be:', and describing the repayment 
                schedule with the number, amount and due dates or 
                period of payments scheduled to repay the obligations 
                reaffirmed to the extent then known by the disclosing 
                party; or
                    ``(iii) by describing the debtor's repayment 
                obligations with reasonable specificity to the extent 
                then known by the disclosing party.
            ``(I) The following statement: `Note: When this disclosure 
        refers to what a creditor ``may'' do, it does not use the word 
        ``may'' to give the creditor specific permission. The word 
        ``may'' is used to tell you what might occur if the law permits 
        the creditor to take the action. If you have questions about 
        your reaffirmation or what the law requires, talk to the 
        attorney who helped you negotiate this agreement. If you don't 
        have an attorney helping you, the judge will explain the effect 
        of your reaffirmation when the reaffirmation hearing is held.'.
            ``(J)(i) The following additional statements:
    ```Reaffirming a debt is a serious financial decision. The law 
requires you to take certain steps to make sure the decision is in your 
best interest. If these steps are not completed, the reaffirmation 
agreement is not effective, even though you have signed it.
            ```1. Read the disclosures in this Part A carefully. 
        Consider the decision to reaffirm carefully. Then, if you want 
        to reaffirm, sign the reaffirmation agreement in Part B (or you 
        may use a separate agreement you and your creditor agree on).
            ```2. Complete and sign Part D and be sure you can afford 
        to make the payments you are agreeing to make and have received 
        a copy of the disclosure statement and a completed and signed 
        reaffirmation agreement.
            ```3. If you were represented by an attorney during the 
        negotiation of the reaffirmation agreement, the attorney must 
        have signed the certification in Part C.
            ```4. If you were not represented by an attorney during the 
        negotiation of the reaffirmation agreement, you must have 
        completed and signed Part E.
            ```5. The original of this disclosure must be filed with 
        the court by you or your creditor. If a separate reaffirmation 
        agreement (other than the one in Part B) has been signed, it 
        must be attached.
            ```6. If you were represented by an attorney during the 
        negotiation of the reaffirmation agreement, your reaffirmation 
        agreement becomes effective upon filing with the court unless 
        the reaffirmation is presumed to be an undue hardship as 
        explained in Part D.
            ```7. If you were not represented by an attorney during the 
        negotiation of the reaffirmation agreement, it will not be 
        effective unless the court approves it. The court will notify 
        you of the hearing on your reaffirmation agreement. You must 
        attend this hearing in bankruptcy court where the judge will 
        review your agreement. The bankruptcy court must approve the 
        agreement as consistent with your best interests, except that 
        no court approval is required if the agreement is for a 
        consumer debt secured by a mortgage, deed of trust, security 
        deed or other lien on your real property, like your home.
    ```Your right to rescind a reaffirmation. You may rescind (cancel) 
your reaffirmation at any time before the bankruptcy court enters a 
discharge order or within 60 days after the agreement is filed with the 
court, whichever is longer. To rescind or cancel, you must notify the 
creditor that the agreement is canceled.
    ```What are your obligations if you reaffirm the debt? A reaffirmed 
debt remains your personal legal obligation. It is not discharged in 
your bankruptcy. That means that if you default on your reaffirmed debt 
after your bankruptcy is over, your creditor may be able to take your 
property or your wages. Otherwise, your obligations will be determined 
by the reaffirmation agreement which may have changed the terms of the 
original agreement. For example, if you are reaffirming an open end 
credit agreement, the creditor may be permitted by that agreement or 
applicable law to change the terms of the agreement in the future under 
certain conditions.
    ```Are you required to enter into a reaffirmation agreement by any 
law? No, you are not required to reaffirm a debt by any law. Only agree 
to reaffirm a debt if it is in your best interest. Be sure you can 
afford the payments you agree to make.
    ```What if your creditor has a security interest or lien? Your 
bankruptcy discharge does not eliminate any lien on your property. A 
``lien'' is often referred to as a security interest, deed of trust, 
mortgage or security deed. Even if you do not reaffirm and your 
personal liability on the debt is discharged, because of the lien your 
creditor may still have the right to take the security property if you 
do not pay the debt or default on it. If the lien is on an item of 
personal property that is exempt under your State's law or that the 
trustee has abandoned, you may be able to redeem the item rather than 
reaffirm the debt. To redeem, you make a single payment to the creditor 
equal to the current value of the security property, as agreed by the 
parties or determined by the court.'.
            ``(ii) In the case of a reaffirmation under subsection 
        (m)(2), numbered paragraph 6 in the disclosures required by 
        clause (i) of this subparagraph shall read as follows:
            ```6. If you were represented by an attorney during the 
        negotiation of the reaffirmation agreement, your reaffirmation 
        agreement becomes effective upon filing with the court.'.
    ``(4) The form of reaffirmation agreement required under this 
paragraph shall consist of the following:
    ```Part B: Reaffirmation Agreement. I/we agree to reaffirm the 
obligations arising under the credit agreement described below.
    ```Brief description of credit agreement:
    ```Description of any changes to the credit agreement made as part 
of this reaffirmation agreement:
    ```Signature:                    Date:
    ```Borrower:
    ```Co-borrower, if also reaffirming:
    ```Accepted by creditor:
    ```Date of creditor acceptance:'.
    ``(5)(A) The declaration shall consist of the following:
    ```Part C: Certification by Debtor's Attorney (If Any).
    ```I hereby certify that (1) this agreement represents a fully 
informed and voluntary agreement by the debtor(s); (2) this agreement 
does not impose an undue hardship on the debtor or any dependent of the 
debtor; and (3) I have fully advised the debtor of the legal effect and 
consequences of this agreement and any default under this agreement.
    ```Signature of Debtor's Attorney:      Date:'.
    ``(B) In the case of reaffirmations in which a presumption of undue 
hardship has been established, the certification shall state that in 
the opinion of the attorney, the debtor is able to make the payment.
    ``(C) In the case of a reaffirmation agreement under subsection 
(m)(2), subparagraph (B) is not applicable.
    ``(6)(A) The statement in support of reaffirmation agreement, which 
the debtor shall sign and date prior to filing with the court, shall 
consist of the following:
    ```Part D: Debtor's Statement in Support of Reaffirmation 
Agreement.
    ```1. I believe this agreement will not impose an undue hardship on 
my dependents or me. I can afford to make the payments on the 
reaffirmed debt because my monthly income (take home pay plus any other 
income received) is $______, and my actual current monthly expenses 
including monthly payments on post-bankruptcy debt and other 
reaffirmation agreements total $______, leaving $______ to make the 
required payments on this reaffirmed debt. I understand that if my 
income less my monthly expenses does not leave enough to make the 
payments, this reaffirmation agreement is presumed to be an undue 
hardship on me and must be reviewed by the court. However, this 
presumption may be overcome if I explain to the satisfaction of the 
court how I can afford to make the payments here: ______.
    ```2. I received a copy of the Reaffirmation Disclosure Statement 
in Part A and a completed and signed reaffirmation agreement.'.
    ``(B) Where the debtor is represented by an attorney and is 
reaffirming a debt owed to a creditor defined in section 
19(b)(1)(A)(iv) of the Federal Reserve Act, the statement of support of 
the reaffirmation agreement, which the debtor shall sign and date prior 
to filing with the court, shall consist of the following:
    ```I believe this agreement is in my financial interest. I can 
afford to make the payments on the reaffirmed debt. I received a copy 
of the Reaffirmation Disclosure Statement in Part A and a completed and 
signed reaffirmation agreement.'.
    ``(7) The motion, which may be used if approval of the agreement by 
the court is required in order for it to be effective and shall be 
signed and dated by the moving party, shall consist of the following:
    ```Part E: Motion for Court Approval (To be completed only where 
debtor is not represented by an attorney.). I (we), the debtor, affirm 
the following to be true and correct:
    ```I am not represented by an attorney in connection with this 
reaffirmation agreement.
    ```I believe this agreement is in my best interest based on the 
income and expenses I have disclosed in my Statement in Support of this 
reaffirmation agreement above, and because (provide any additional 
relevant reasons the court should consider):
    ```Therefore, I ask the court for an order approving this 
reaffirmation agreement.'.
    ``(8) The court order, which may be used to approve a 
reaffirmation, shall consist of the following:
    ```Court Order: The court grants the debtor's motion and approves 
the reaffirmation agreement described above.'.
    ``(l) Notwithstanding any other provision of this title the 
following shall apply:
            ``(1) A creditor may accept payments from a debtor before 
        and after the filing of a reaffirmation agreement with the 
        court.
            ``(2) A creditor may accept payments from a debtor under a 
        reaffirmation agreement which the creditor believes in good 
        faith to be effective.
            ``(3) The requirements of subsections (c)(2) and (k) shall 
        be satisfied if disclosures required under those subsections 
        are given in good faith.
    ``(m)(1) Until 60 days after a reaffirmation agreement is filed 
with the court (or such additional period as the court, after notice 
and a hearing and for cause, orders before the expiration of such 
period), it shall be presumed that the reaffirmation agreement is an 
undue hardship on the debtor if the debtor's monthly income less the 
debtor's monthly expenses as shown on the debtor's completed and signed 
statement in support of the reaffirmation agreement required under 
subsection (k)(6)(A) is less than the scheduled payments on the 
reaffirmed debt. This presumption shall be reviewed by the court. The 
presumption may be rebutted in writing by the debtor if the statement 
includes an explanation which identifies additional sources of funds to 
make the payments as agreed upon under the terms of the reaffirmation 
agreement. If the presumption is not rebutted to the satisfaction of 
the court, the court may disapprove the agreement. No agreement shall 
be disapproved without notice and a hearing to the debtor and creditor 
and such hearing shall be concluded before the entry of the debtor's 
discharge.
    ``(2) This subsection does not apply to reaffirmation agreements 
where the creditor is a credit union, as defined in section 
19(b)(1)(A)(iv) of the Federal Reserve Act.''.
    (b) Law Enforcement.--
            (1) In general.--Chapter 9 of title 18, United States Code, 
        is amended by adding at the end the following:
``Sec. 158. Designation of United States attorneys and agents of the 
              Federal Bureau of Investigation to address abusive 
              reaffirmations of debt and materially fraudulent 
              statements in bankruptcy schedules
    ``(a) In General.--The Attorney General of the United States shall 
designate the individuals described in subsection (b) to have primary 
responsibility in carrying out enforcement activities in addressing 
violations of section 152 or 157 relating to abusive reaffirmations of 
debt. In addition to addressing the violations referred to in the 
preceding sentence, the individuals described under subsection (b) 
shall address violations of section 152 or 157 relating to materially 
fraudulent statements in bankruptcy schedules that are intentionally 
false or intentionally misleading.
    ``(b) United States District Attorneys and Agents of the Federal 
Bureau of Investigation.--The individuals referred to in subsection (a) 
are--
            ``(1) a United States attorney for each judicial district 
        of the United States; and
            ``(2) an agent of the Federal Bureau of Investigation 
        (within the meaning of section 3107) for each field office of 
        the Federal Bureau of Investigation.
    ``(c) Bankruptcy Investigations.--Each United States attorney 
designated under this section shall, in addition to any other 
responsibilities, have primary responsibility for carrying out the 
duties of a United States attorney under section 3057.
    ``(d) Bankruptcy Procedures.--The bankruptcy courts shall establish 
procedures for referring any case which may contain a materially 
fraudulent statement in a bankruptcy schedule to the individuals 
designated under this section.''.
            (2) Clerical amendment.--The analysis for chapter 9 of 
        title 18, United States Code, is amended by adding at the end 
        the following:

``158. Designation of United States attorneys and agents of the Federal 
                            Bureau of Investigation to address abusive 
                            reaffirmations of debt and materially 
                            fraudulent statements in bankruptcy 
                            schedules.''.

SEC. 204. PRESERVATION OF CLAIMS AND DEFENSES UPON SALE OF PREDATORY 
              LOANS.

    Section 363 of title 11, United States Code, is amended--
            (1) by redesignating subsection (o) as subsection (p), and
            (2) by inserting after subsection (n) the following:
    ``(o) Notwithstanding subsection (f), if a person purchases any 
interest in a consumer credit transaction that is subject to the Truth 
in Lending Act or any interest in a consumer credit contract (as 
defined in section 433.1 of title 16 of the Code of Federal Regulations 
(January 1, 2001), as amended from time to time), and if such interest 
is purchased through a sale under this section, then such person shall 
remain subject to all claims and defenses that are related to such 
consumer credit transaction or such consumer credit contract, to the 
same extent as such person would be subject to such claims and defenses 
of the consumer had such interest been purchased at a sale not under 
this section.''.

SEC. 205. GAO STUDY AND REPORT ON REAFFIRMATION PROCESS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the reaffirmation process that occurs under title 11 
of the United States Code, to determine the overall treatment of 
consumers within the context of such process, and shall include in such 
study consideration of--
            (1) the policies and activities of creditors with respect 
        to reaffirmation; and
            (2) whether consumers are fully, fairly, and consistently 
        informed of their rights pursuant to such title.
    (b) Report to the Congress.--Not later than 18 months after the 
date of enactment of this Act, the Comptroller General shall submit to 
the President pro tempore of the Senate and the Speaker of the House of 
Representatives a report on the results of the study conducted under 
subsection (a), together with recommendations for legislation (if any) 
to address any abusive or coercive tactics found in connection with the 
reaffirmation process that occurs under title 11 of the United States 
Code.

                   Subtitle B--Priority Child Support

SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

    Section 101 of title 11, United States Code, is amended--
            (1) by striking paragraph (12A); and
            (2) by inserting after paragraph (14) the following:
            ``(14A) `domestic support obligation' means a debt that 
        accrues before or after the entry of an order for relief under 
        this title, including interest that accrues on that debt as 
        provided under applicable nonbankruptcy law notwithstanding any 
        other provision of this title, that is--
                    ``(A) owed to or recoverable by--
                            ``(i) a spouse, former spouse, or child of 
                        the debtor or such child's parent, legal 
                        guardian, or responsible relative; or
                            ``(ii) a governmental unit;
                    ``(B) in the nature of alimony, maintenance, or 
                support (including assistance provided by a 
                governmental unit) of such spouse, former spouse, or 
                child of the debtor or such child's parent, without 
                regard to whether such debt is expressly so designated;
                    ``(C) established or subject to establishment 
                before or after entry of an order for relief under this 
                title, by reason of applicable provisions of--
                            ``(i) a separation agreement, divorce 
                        decree, or property settlement agreement;
                            ``(ii) an order of a court of record; or
                            ``(iii) a determination made in accordance 
                        with applicable nonbankruptcy law by a 
                        governmental unit; and
                    ``(D) not assigned to a nongovernmental entity, 
                unless that obligation is assigned voluntarily by the 
                spouse, former spouse, child, or parent, legal 
                guardian, or responsible relative of the child for the 
                purpose of collecting the debt;''.

SEC. 212. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT OBLIGATIONS.

    Section 507(a) of title 11, United States Code, is amended--
            (1) by striking paragraph (7);
            (2) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
            (3) in paragraph (2), as so redesignated, by striking 
        ``First'' and inserting ``Second'';
            (4) in paragraph (3), as so redesignated, by striking 
        ``Second'' and inserting ``Third'';
            (5) in paragraph (4), as so redesignated--
                    (A) by striking ``Third'' and inserting ``Fourth''; 
                and
                    (B) by striking the semicolon at the end and 
                inserting a period;
            (6) in paragraph (5), as so redesignated, by striking 
        ``Fourth'' and inserting ``Fifth'';
            (7) in paragraph (6), as so redesignated, by striking 
        ``Fifth'' and inserting ``Sixth'';
            (8) in paragraph (7), as so redesignated, by striking 
        ``Sixth'' and inserting ``Seventh''; and
            (9) by inserting before paragraph (2), as so redesignated, 
        the following:
            ``(1) First:
                    ``(A) Allowed unsecured claims for domestic support 
                obligations that, as of the date of the filing of the 
                petition, are owed to or recoverable by a spouse, 
                former spouse, or child of the debtor, or the parent, 
                legal guardian, or responsible relative of such child, 
                without regard to whether the claim is filed by such 
                person or is filed by a governmental unit on behalf of 
                that person, on the condition that funds received under 
                this paragraph by a governmental unit under this title 
                after the date of the filing of the petition shall be 
                applied and distributed in accordance with applicable 
                nonbankruptcy law.
                    ``(B) Subject to claims under subparagraph (A), 
                allowed unsecured claims for domestic support 
                obligations that, as of the date the petition was filed 
                are assigned by a spouse, former spouse, child of the 
                debtor, or such child's parent, legal guardian, or 
                responsible relative to a governmental unit (unless 
                such obligation is assigned voluntarily by the spouse, 
                former spouse, child, parent, legal guardian, or 
                responsible relative of the child for the purpose of 
                collecting the debt) or are owed directly to or 
                recoverable by a governmental unit under applicable 
                nonbankruptcy law, on the condition that funds received 
                under this paragraph by a governmental unit under this 
                title after the date of the filing of the petition be 
                applied and distributed in accordance with applicable 
                nonbankruptcy law.
                    ``(C) If a trustee is appointed or elected under 
                section 701, 702, 703, 1104, 1202, or 1302, the 
                administrative expenses of the trustee allowed under 
                paragraphs (1)(A), (2), and (6) of section 503(b) shall 
                be paid before payment of claims under subparagraphs 
                (A) and (B), to the extent that the trustee administers 
                assets that are otherwise available for the payment of 
                such claims.''.

SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE IN CASES 
              INVOLVING DOMESTIC SUPPORT OBLIGATIONS.

    Title 11, United States Code, is amended--
            (1) in section 1129(a), by adding at the end the following:
            ``(14) If the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order or statute for such obligation that first become payable 
        after the date on which the petition is filed.'';
            (2) in section 1208(c)--
                    (A) in paragraph (8), by striking ``or'' at the 
                end;
                    (B) in paragraph (9), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) failure of the debtor to pay any domestic support 
        obligation that first becomes payable after the date on which 
        the petition is filed.'';
            (3) in section 1222(a)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) notwithstanding any other provision of this section, 
        a plan may provide for less than full payment of all amounts 
        owed for a claim entitled to priority under section 
        507(a)(1)(B) only if the plan provides that all of the debtor's 
        projected disposable income for a 5-year period, beginning on 
        the date that the first payment is due under the plan, will be 
        applied to make payments under the plan.'';
            (4) in section 1222(b)--
                    (A) by redesignating paragraph (11) as paragraph 
                (12); and
                    (B) by inserting after paragraph (10) the 
                following:
            ``(11) provide for the payment of interest accruing after 
        the date of the filing of the petition on unsecured claims that 
        are nondischargeable under section 1228(a), except that such 
        interest may be paid only to the extent that the debtor has 
        disposable income available to pay such interest after making 
        provision for full payment of all allowed claims;'';
            (5) in section 1225(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 or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order for such obligation that first become payable after the 
        date on which the petition is filed.'';
            (6) in section 1228(a), in the matter preceding paragraph 
        (1), by inserting ``, and in the case of a debtor who is 
        required by a judicial or administrative order to pay a 
        domestic support obligation, after such debtor certifies that 
        all amounts payable under such order or statute that are due on 
        or before the date of the certification (including amounts due 
        before the petition was filed, but only to the extent provided 
        for by the plan) have been paid'' after ``completion by the 
        debtor of all payments under the plan'';
            (7) in section 1307(c)--
                    (A) in paragraph (9), by striking ``or'' at the 
                end;
                    (B) in paragraph (10), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(11) failure of the debtor to pay any domestic support 
        obligation that first becomes payable after the date on which 
        the petition is filed.'';
            (8) in section 1322(a)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) notwithstanding any other provision of this section, 
        a plan may provide for less than full payment of all amounts 
        owed for a claim entitled to priority under section 
        507(a)(1)(B) only if the plan provides that all of the debtor's 
        projected disposable income for a 5-year period beginning on 
        the date that the first payment is due under the plan will be 
        applied to make payments under the plan.'';
            (9) in section 1322(b)--
                    (A) in paragraph (9), by striking ``; and'' and 
                inserting a semicolon;
                    (B) by redesignating paragraph (10) as paragraph 
                (11); and
                    (C) inserting after paragraph (9) the following:
            ``(10) provide for the payment of interest accruing after 
        the date of the filing of the petition on unsecured claims that 
        are nondischargeable under section 1328(a), except that such 
        interest may be paid only to the extent that the debtor has 
        disposable income available to pay such interest after making 
        provision for full payment of all allowed claims; and'';
            (10) in section 1325(a), as amended by section 102, by 
        inserting after paragraph (7) the following:
            ``(8) the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order or statute for such obligation that first becomes payable 
        after the date on which the petition is filed; and'';
            (11) in section 1328(a), in the matter preceding paragraph 
        (1), by inserting ``, and in the case of a debtor who is 
        required by a judicial or administrative order to pay a 
        domestic support obligation, after such debtor certifies that 
        all amounts payable under such order or statute that are due on 
        or before the date of the certification (including amounts due 
        before the petition was filed, but only to the extent provided 
        for by the plan) have been paid'' after ``completion by the 
        debtor of all payments under the plan''.

SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
              PROCEEDINGS.

    Section 362(b) of title 11, United States Code, is amended by 
striking paragraph (2) and inserting the following:
            ``(2) under subsection (a)--
                    ``(A) of the commencement or continuation of a 
                civil action or proceeding--
                            ``(i) for the establishment of paternity;
                            ``(ii) for the establishment or 
                        modification of an order for domestic support 
                        obligations;
                            ``(iii) concerning child custody or 
                        visitation;
                            ``(iv) for the dissolution of a marriage, 
                        except to the extent that such proceeding seeks 
                        to determine the division of property that is 
                        property of the estate; or
                            ``(v) regarding domestic violence;
                    ``(B) of the collection of a domestic support 
                obligation from property that is not property of the 
                estate;
                    ``(C) with respect to the withholding of income 
                that is property of the estate or property of the 
                debtor for payment of a domestic support obligation 
                under a judicial or administrative order;
                    ``(D) of the withholding, suspension, or 
                restriction of drivers' licenses, professional and 
                occupational licenses, and recreational licenses under 
                State law, as specified in section 466(a)(16) of the 
                Social Security Act;
                    ``(E) of the reporting of overdue support owed by a 
                parent to any consumer reporting agency as specified in 
                section 466(a)(7) of the Social Security Act;
                    ``(F) of the interception of tax refunds, as 
                specified in sections 464 and 466(a)(3) of the Social 
                Security Act or under an analogous State law; or
                    ``(G) of the enforcement of medical obligations as 
                specified under title IV of the Social Security Act;''.

SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
              MAINTENANCE, AND SUPPORT.

    Section 523 of title 11, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (5) and inserting the 
                following:
            ``(5) for a domestic support obligation;''; and
                    (B) by striking paragraph (18);
            (2) in subsection (c), by striking ``(6), or (15)'' each 
        place it appears and inserting ``or (6)''; and
            (3) in paragraph (15), as added by Public Law 103-394 (108 
        Stat. 4133)--
                    (A) by inserting ``to a spouse, former spouse, or 
                child of the debtor and'' before ``not of the kind'';
                    (B) by inserting ``or'' after ``court of record,''; 
                and
                    (C) by striking ``unless--'' and all that follows 
                through the end of the paragraph and inserting a 
                semicolon.

SEC. 216. CONTINUED LIABILITY OF PROPERTY.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (c), by striking paragraph (1) and 
        inserting the following:
            ``(1) a debt of a kind specified in paragraph (1) or (5) of 
        section 523(a) (in which case, notwithstanding any provision of 
        applicable nonbankruptcy law to the contrary, such property 
        shall be liable for a debt of a kind specified in section 
        523(a)(5));'';
            (2) in subsection (f)(1)(A), by striking the dash and all 
        that follows through the end of the subparagraph and inserting 
        ``of a kind that is specified in section 523(a)(5); or''; and
            (3) in subsection (g)(2), by striking ``subsection (f)(2)'' 
        and inserting ``subsection (f)(1)(B)''.

SEC. 217. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST PREFERENTIAL 
              TRANSFER MOTIONS.

    Section 547(c)(7) of title 11, United States Code, is amended to 
read as follows:
            ``(7) to the extent such transfer was a bona fide payment 
        of a debt for a domestic support obligation;''.

SEC. 218. DISPOSABLE INCOME DEFINED.

    Section 1225(b)(2)(A) of title 11, United States Code, is amended 
by inserting ``or for a domestic support obligation that first becomes 
payable after the date on which the petition is filed'' after 
``dependent of the debtor''.

SEC. 219. COLLECTION OF CHILD SUPPORT.

    (a) Duties of Trustee Under Chapter 7.--Section 704 of title 11, 
United States Code, as amended by section 102, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (8), by striking ``and'' at the 
                end;
                    (B) in paragraph (9), by striking the period and 
                inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(10) if with respect to the debtor there is a claim for a 
        domestic support obligation, provide the applicable notice 
        specified in subsection (c); and''; and
            (2) by adding at the end the following:
    ``(c)(1) In a case described in subsection (a)(10) to which 
subsection (a)(10) applies, the trustee shall--
            ``(A)(i) provide written notice to the holder of the claim 
        described in subsection (a)(10) of such claim and of the right 
        of such holder to use the services of the State child support 
        enforcement agency established under sections 464 and 466 of 
        the Social Security Act for the State in which such holder 
        resides, for assistance in collecting child support during and 
        after the case under this title;
            ``(ii) include in the notice provided under clause (i) the 
        address and telephone number of such State child support 
        enforcement agency; and
            ``(iii) include in the notice provided under clause (i) an 
        explanation of the rights of such holder to payment of such 
        claim under this chapter;
            ``(B)(i) provide written notice to such State child support 
        enforcement agency of such claim; and
            ``(ii) include in the notice provided under clause (i) the 
        name, address, and telephone number of such holder; and
            ``(C) at such time as the debtor is granted a discharge 
        under section 727, provide written notice to such holder and to 
        such State child support enforcement agency of--
                    ``(i) the granting of the discharge;
                    ``(ii) the last recent known address of the debtor;
                    ``(iii) the last recent known name and address of 
                the debtor's employer; and
                    ``(iv) the name of each creditor that holds a claim 
                that--
                            ``(I) is not discharged under paragraph 
                        (2), (4), or (14A) of section 523(a); or
                            ``(II) was reaffirmed by the debtor under 
                        section 524 (c).
    ``(2)(A) The holder of a claim described in subsection (a)(10) or 
the State child support enforcement agency of the State in which such 
holder resides may request from a creditor described in paragraph 
(1)(C)(iv) the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable by 
reason of making such disclosure.''.
    (b) Duties of Trustee Under Chapter 11.--Section 1106 of title 11, 
United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (6), by striking ``and'' at the 
                end;
                    (B) in paragraph (7), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(8) if with respect to the debtor there is a claim for a 
        domestic support obligation, provide the applicable notice 
        specified in subsection (c).''; and
            (2) by adding at the end the following:
    ``(c)(1) In a case described in subsection (a)(8) to which 
subsection (a)(8) applies, the trustee shall--
            ``(A)(i) provide written notice to the holder of the claim 
        described in subsection (a)(8) of such claim and of the right 
        of such holder to use the services of the State child support 
        enforcement agency established under sections 464 and 466 of 
        the Social Security Act for the State in which such holder 
        resides, for assistance in collecting child support during and 
        after the case under this title; and
            ``(ii) include in the notice required by clause (i) the 
        address and telephone number of such State child support 
        enforcement agency;
            ``(B)(i) provide written notice to such State child support 
        enforcement agency of such claim; and
            ``(ii) include in the notice required by clasue (i) the 
        name, address, and telephone number of such holder; and
            ``(C) at such time as the debtor is granted a discharge 
        under section 1141, provide written notice to such holder of 
        such claim and to such State child support enforcement agency 
        of--
                    ``(i) the granting of the discharge;
                    ``(ii) the last recent known address of the debtor;
                    ``(iii) the last recent known name and address of 
                the debtor's employer; and
                    ``(iv) the name of each creditor that holds a claim 
                that--
                            ``(I) is not discharged under paragraph 
                        (2), (3), or (14A) of section 523(a); or
                            ``(II) was reaffirmed by the debtor under 
                        section 524(c).
    ``(2)(A) The holder of a claim described in subsection (a)(8) or 
the State child enforcement support agency of the State in which such 
holder resides may request from a creditor described in paragraph 
(1)(C)(iv) the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable by 
reason of making such disclosure.''.
    (c) Duties of Trustee Under Chapter 12.--Section 1202 of title 11, 
United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) if with respect to the debtor there is a claim for a 
        domestic support obligation, provide the applicable notice 
        specified in subsection (c).''; and
            (2) by adding at the end the following:
    ``(c)(1) In a case described in subsection (b)(6) to which 
subsection (b)(6) applies, the trustee shall--
            ``(A)(i) provide written notice to the holder of the claim 
        described in subsection (b)(6) of such claim and of the right 
        of such holder to use the services of the State child support 
        enforcement agency established under sections 464 and 466 of 
        the Social Security Act for the State in which such holder 
        resides, for assistance in collecting child support during and 
        after the case under this title; and
            ``(ii) include in the notice provided under clause (i) the 
        address and telephone number of such State child support 
        enforcement agency;
            ``(B)(i) provide written notice to such State child support 
        enforcement agency of such claim; and
            ``(ii) include in the notice provided under clause (i) the 
        name, address, and telephone number of such holder; and
            ``(C) at such time as the debtor is granted a discharge 
        under section 1228, provide written notice to such holder and 
        to such State child support enforcement agency of--
                    ``(i) the granting of the discharge;
                    ``(ii) the last recent known address of the debtor;
                    ``(iii) the last recent known name and address of 
                the debtor's employer; and
                    ``(iv) the name of each creditor that holds a claim 
                that--
                            ``(I) is not discharged under paragraph 
                        (2), (4), or (14A) of section 523(a); or
                            ``(II) was reaffirmed by the debtor under 
                        section 524(c).
    ``(2)(A) The holder of a claim described in subsection (b)(6) or 
the State child support enforcement agency of the State in which such 
holder resides may request from a creditor described in paragraph 
(1)(C)(iv) the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable by 
reason of making that disclosure.''.
    (d) Duties of Trustee Under Chapter 13.--Section 1302 of title 11, 
United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) if with respect to the debtor there is a claim for a 
        domestic support obligation, provide the applicable notice 
        specified in subsection (d).''; and
            (2) by adding at the end the following:
    ``(d)(1) In a case described in subsection (b)(6) to which 
subsection (b)(6) applies, the trustee shall--
            ``(A)(i) provide written notice to the holder of the claim 
        described in subsection (b)(6) of such claim and of the right 
        of such holder to use the services of the State child support 
        enforcement agency established under sections 464 and 466 of 
        the Social Security Act for the State in which such holder 
        resides, for assistance in collecting child support during and 
        after the case under this title; and
            ``(ii) include in the notice provided under clause (i) the 
        address and telephone number of such State child support 
        enforcement agency;
            ``(B)(i) provide written notice to such State child support 
        enforcement agency of such claim; and
            ``(ii) include in the notice provided under clause (i) the 
        name, address, and telephone number of such holder; and
            ``(C) at such time as the debtor is granted a discharge 
        under section 1328, provide written notice to such holder and 
        to such State child support enforcement agency of--
                    ``(i) the granting of the discharge;
                    ``(ii) the last recent known address of the debtor;
                    ``(iii) the last recent known name and address of 
                the debtor's employer; and
                    ``(iv) the name of each creditor that holds a claim 
                that--
                            ``(I) is not discharged under paragraph (2) 
                        or (4) of section 523(a); or
                            ``(II) was reaffirmed by the debtor under 
                        section 524(c).
    ``(2)(A) The holder of a claim described in subsection (b)(6) or 
the State child support enforcement agency of the State in which such 
holder resides may request from a creditor described in paragraph 
(1)(C)(iv) the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable by 
reason of making that disclosure.''.

SEC. 220. NONDISCHARGEABILITY OF CERTAIN EDUCATIONAL BENEFITS AND 
              LOANS.

    Section 523(a) of title 11, United States Code, is amended by 
striking paragraph (8) and inserting the following:
            ``(8) unless excepting such debt from discharge under this 
        paragraph would impose an undue hardship on the debtor and the 
        debtor's dependents, for--
                    ``(A)(i) an educational benefit overpayment or loan 
                made, insured, or guaranteed by a governmental unit, or 
                made under any program funded in whole or in part by a 
                governmental unit or nonprofit institution; or
                    ``(ii) an obligation to repay funds received as an 
                educational benefit, scholarship, or stipend; or
                    ``(B) any other educational loan that is a 
                qualified education loan, as defined in section 
                221(d)(1) of the Internal Revenue Code of 1986, 
                incurred by a debtor who is an individual;''.

                 Subtitle C--Other Consumer Protections

SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY FILINGS.

    Section 110 of title 11, United States Code, is amended--
            (1) in subsection (a)(1), by striking ``or an employee of 
        an attorney'' and inserting ``for the debtor or an employee of 
        such attorney under the direct supervision of such attorney'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by adding at the end the 
                following: ``If a bankruptcy petition preparer is not 
                an individual, then an officer, principal, responsible 
                person, or partner of the preparer shall be required 
                to--
            ``(A) sign the document for filing; and
            ``(B) print on the document the name and address of that 
        officer, principal, responsible person or partner.''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
    ``(2)(A) Before preparing any document for filing or accepting any 
fees from a debtor, the bankruptcy petition preparer shall provide to 
the debtor a written notice to debtors concerning bankruptcy petition 
preparers, which shall be on an official form issued by the Judicial 
Conference of the United States.
    ``(B) The notice under subparagraph (A)--
            ``(i) shall inform the debtor in simple language that a 
        bankruptcy petition preparer is not an attorney and may not 
        practice law or give legal advice;
            ``(ii) may contain a description of examples of legal 
        advice that a bankruptcy petition preparer is not authorized to 
        give, in addition to any advice that the preparer may not give 
        by reason of subsection (e)(2); and
            ``(iii) shall--
                    ``(I) be signed by the debtor and, under penalty of 
                perjury, by the bankruptcy petition preparer; and
                    ``(II) be filed with any document for filing.'';
            (3) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) by striking ``(2) For purposes'' and 
                        inserting ``(2)(A) Subject to subparagraph (B), 
                        for purposes''; and
                            (ii) by adding at the end the following:
    ``(B) If a bankruptcy petition preparer is not an individual, the 
identifying number of the bankruptcy petition preparer shall be the 
Social Security account number of the officer, principal, responsible 
person, or partner of the preparer.''; and
                    (B) by striking paragraph (3);
            (4) in subsection (d)--
                    (A) by striking ``(d)(1)'' and inserting ``(d)''; 
                and
                    (B) by striking paragraph (2);
            (5) in subsection (e)--
                    (A) by striking paragraph (2); and
                    (B) by adding at the end the following:
    ``(2)(A) A bankruptcy petition preparer may not offer a potential 
bankruptcy debtor any legal advice, including any legal advice 
described in subparagraph (B).
    ``(B) The legal advice referred to in subparagraph (A) includes 
advising the debtor--
            ``(i) whether--
                    ``(I) to file a petition under this title; or
                    ``(II) commencing a case under chapter 7, 11, 12, 
                or 13 is appropriate;
            ``(ii) whether the debtor's debts will be eliminated or 
        discharged in a case under this title;
            ``(iii) whether the debtor will be able to retain the 
        debtor's home, car, or other property after commencing a case 
        under this title;
            ``(iv) concerning--
                    ``(I) the tax consequences of a case brought under 
                this title; or
                    ``(II) the dischargeability of tax claims;
            ``(v) whether the debtor may or should promise to repay 
        debts to a creditor or enter into a reaffirmation agreement 
        with a creditor to reaffirm a debt;
            ``(vi) concerning how to characterize the nature of the 
        debtor's interests in property or the debtor's debts; or
            ``(vii) concerning bankruptcy procedures and rights.'';
            (6) in subsection (f)--
                    (A) by striking ``(f)(1)'' and inserting ``(f)''; 
                and
                    (B) by striking paragraph (2);
            (7) in subsection (g)--
                    (A) by striking ``(g)(1)'' and inserting ``(g)''; 
                and
                    (B) by striking paragraph (2);
            (8) in subsection (h)--
                    (A) by redesignating paragraphs (1) through (4) as 
                paragraphs (2) through (5), respectively;
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following:
    ``(1) The Supreme Court may promulgate rules under section 2075 of 
title 28, or the Judicial Conference of the United States may prescribe 
guidelines, for setting a maximum allowable fee chargeable by a 
bankruptcy petition preparer. A bankruptcy petition preparer shall 
notify the debtor of any such maximum amount before preparing any 
document for filing for a debtor or accepting any fee from the 
debtor.'';
                    (C) in paragraph (2), as so redesignated--
                            (i) by striking ``Within 10 days after the 
                        date of filing a petition, a bankruptcy 
                        petition preparer shall file a'' and inserting 
                        ``A'';
                            (ii) by inserting ``by the bankruptcy 
                        petition preparer shall be filed together with 
                        the petition,'' after ``perjury''; and
                            (iii) by adding at the end the following: 
                        ``If rules or guidelines setting a maximum fee 
                        for services have been promulgated or 
                        prescribed under paragraph (1), the declaration 
                        under this paragraph shall include a 
                        certification that the bankruptcy petition 
                        preparer complied with the notification 
                        requirement under paragraph (1).'';
                    (D) by striking paragraph (3), as so redesignated, 
                and inserting the following:
    ``(3)(A) The court shall disallow and order the immediate turnover 
to the bankruptcy trustee any fee referred to in paragraph (2) found to 
be in excess of the value of any services--
            ``(i) rendered by the preparer during the 12-month period 
        immediately preceding the date of filing of the petition; or
            ``(ii) found to be in violation of any rule or guideline 
        promulgated or prescribed under paragraph (1).
    ``(B) All fees charged by a bankruptcy petition preparer may be 
forfeited in any case in which the bankruptcy petition preparer fails 
to comply with this subsection or subsection (b), (c), (d), (e), (f), 
or (g).
    ``(C) An individual may exempt any funds recovered under this 
paragraph under section 522(b).''; and
                    (E) in paragraph (4), as so redesignated, by 
                striking ``or the United States trustee'' and inserting 
                ``the United States trustee, the bankruptcy 
                administrator, or the court, on the initiative of the 
                court,'';
            (9) in subsection (i)(1), by striking the matter preceding 
        subparagraph (A) and inserting the following:
    ``(i)(1) If a bankruptcy petition preparer violates this section or 
commits any act that the court finds to be fraudulent, unfair, or 
deceptive, on the motion of the debtor, trustee, United States trustee, 
or bankruptcy administrator, and after the court holds a hearing with 
respect to that violation or act, the court shall order the bankruptcy 
petition preparer to pay to the debtor--'';
            (10) in subsection (j)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)(i)(I), by striking 
                        ``a violation of which subjects a person to 
                        criminal penalty'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``or has not paid a 
                                penalty'' and inserting ``has not paid 
                                a penalty''; and
                                    (II) by inserting ``or failed to 
                                disgorge all fees ordered by the 
                                court'' after ``a penalty imposed under 
                                this section,'';
                    (B) by redesignating paragraph (3) as paragraph 
                (4); and
                    (C) by inserting after paragraph (2) the following:
    ``(3) The court, as part of its contempt power, may enjoin a 
bankruptcy petition preparer that has failed to comply with a previous 
order issued under this section. The injunction under this paragraph 
may be issued on the motion of the court, the trustee, the United 
States trustee, or the bankruptcy administrator.''; and
            (11) by adding at the end the following:
    ``(l)(1) A bankruptcy petition preparer who fails to comply with 
any provision of subsection (b), (c), (d), (e), (f), (g), or (h) may be 
fined not more than $500 for each such failure.
    ``(2) The court shall triple the amount of a fine assessed under 
paragraph (1) in any case in which the court finds that a bankruptcy 
petition preparer--
            ``(A) advised the debtor to exclude assets or income that 
        should have been included on applicable schedules;
            ``(B) advised the debtor to use a false Social Security 
        account number;
            ``(C) failed to inform the debtor that the debtor was 
        filing for relief under this title; or
            ``(D) prepared a document for filing in a manner that 
        failed to disclose the identity of the preparer.
    ``(3) The debtor, the trustee, a creditor, the United States 
trustee, or the bankruptcy administrator may file a motion for an order 
imposing a fine on the bankruptcy petition preparer for each violation 
of this section.
    ``(4)(A) Fines imposed under this subsection in judicial districts 
served by United States trustees shall be paid to the United States 
trustee, who shall deposit an amount equal to such fines in a special 
account of the United States Trustee System Fund referred to in section 
586(e)(2) of title 28. Amounts deposited under this subparagraph shall 
be available to fund the enforcement of this section on a national 
basis.
    ``(B) Fines imposed under this subsection in judicial districts 
served by bankruptcy administrators shall be deposited as offsetting 
receipts to the fund established under section 1931 of title 28, and 
shall remain available until expended to reimburse any appropriation 
for the amount paid out of such appropriation for expenses of the 
operation and maintenance of the courts of the United States.''.

SEC. 222. SENSE OF CONGRESS.

    It is the sense of Congress that States should develop curricula 
relating to the subject of personal finance, designed for use in 
elementary and secondary schools.

SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.

    Section 507(a) of title 11, United States Code, is amended by 
inserting after paragraph (9) the following:
            ``(10) Tenth, allowed claims for death or personal injuries 
        resulting from the operation of a motor vehicle or vessel if 
        such operation was unlawful because the debtor was intoxicated 
        from using alcohol, a drug, or another substance.''.

SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

    (a) In General.--Section 522 of title 11, United States Code, is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and'';
                            (iii) by adding at the end the following:
            ``(C) retirement funds to the extent that those funds are 
        in a fund or account that is exempt from taxation under section 
        401, 403, 408, 408A, 414, 457, or 501(a) of the Internal 
        Revenue Code of 1986.''; and
                            (iv) by striking ``(2)(A) any property'' 
                        and inserting:
    ``(3) Property listed in this paragraph is--
            ``(A) any property'';
                    (B) by striking paragraph (1) and inserting:
    ``(2) Property listed in this paragraph is property that is 
specified under subsection (d), unless the State law that is applicable 
to the debtor under paragraph (3)(A) specifically does not so 
authorize.'';
                    (C) by striking ``(b) Notwithstanding'' and 
                inserting ``(b)(1) Notwithstanding'';
                    (D) by striking ``paragraph (2)'' each place it 
                appears and inserting ``paragraph (3)'';
                    (E) by striking ``paragraph (1)'' each place it 
                appears and inserting ``paragraph (2)'';
                    (F) by striking ``Such property is--''; and
                    (G) by adding at the end the following:
    ``(4) For purposes of paragraph (3)(C) and subsection (d)(12), the 
following shall apply:
            ``(A) If the retirement funds are in a retirement fund that 
        has received a favorable determination under section 7805 of 
        the Internal Revenue Code of 1986, and that determination is in 
        effect as of the date of the commencement of the case under 
        section 301, 302, or 303 of this title, those funds shall be 
        presumed to be exempt from the estate.
            ``(B) If the retirement funds are in a retirement fund that 
        has not received a favorable determination under such section 
        7805, those funds are exempt from the estate if the debtor 
        demonstrates that--
                    ``(i) no prior determination to the contrary has 
                been made by a court or the Internal Revenue Service; 
                and
                    ``(ii)(I) the retirement fund is in substantial 
                compliance with the applicable requirements of the 
                Internal Revenue Code of 1986; or
                    ``(II) the retirement fund fails to be in 
                substantial compliance with the applicable requirements 
                of the Internal Revenue Code of 1986 and the debtor is 
                not materially responsible for that failure.
            ``(C) A direct transfer of retirement funds from 1 fund or 
        account that is exempt from taxation under section 401, 403, 
        408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 
        1986, under section 401(a)(31) of the Internal Revenue Code of 
        1986, or otherwise, shall not cease to qualify for exemption 
        under paragraph (3)(C) or subsection (d)(12) by reason of that 
        direct transfer.
            ``(D)(i) Any distribution that qualifies as an eligible 
        rollover distribution within the meaning of section 402(c) of 
        the Internal Revenue Code of 1986 or that is described in 
        clause (ii) shall not cease to qualify for exemption under 
        paragraph (3)(C) or subsection (d)(12) by reason of that 
        distribution.
            ``(ii) A distribution described in this clause is an amount 
        that--
                    ``(I) has been distributed from a fund or account 
                that is exempt from taxation under section 401, 403, 
                408, 408A, 414, 457, or 501(a) of the Internal Revenue 
                Code of 1986; and
                    ``(II) to the extent allowed by law, is deposited 
                in such a fund or account not later than 60 days after 
                the distribution of that amount.''; and
            (2) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subsection (b)(1)'' and inserting 
                ``subsection (b)(2)''; and
                    (B) by adding at the end the following:
            ``(12) Retirement funds to the extent that those funds are 
        in a fund or account that is exempt from taxation under section 
        401, 403, 408, 408A, 414, 457, or 501(a) of the Internal 
        Revenue Code of 1986.''.
    (b) Automatic Stay.--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 and inserting 
        a semicolon; and
            (3) by inserting after paragraph (18) the following:
            ``(19) under subsection (a), of withholding of income from 
        a debtor's wages and collection of amounts withheld, under the 
        debtor's agreement authorizing that withholding and collection 
        for the benefit of a pension, profit-sharing, stock bonus, or 
        other plan established under section 401, 403, 408, 408A, 414, 
        457, or 501(c) of the Internal Revenue Code of 1986, that is 
        sponsored by the employer of the debtor, or an affiliate, 
        successor, or predecessor of such employer--
                    ``(A) to the extent that the amounts withheld and 
                collected are used solely for payments relating to a 
                loan from a plan that satisfies the requirements of 
                section 408(b)(1) of the Employee Retirement Income 
                Security Act of 1974 or is subject to section 72(p) of 
                the Internal Revenue Code of 1986; or
                    ``(B) in the case of a loan from a thrift savings 
                plan described in subchapter III of chapter 84 of title 
                5, that satisfies the requirements of section 8433(g) 
                of such title;
        but this paragraph may not be construed to provide that any 
        loan made under a governmental plan under section 414(d), or a 
        contract or account under section 403(b) of the Internal 
        Revenue Code of 1986 constitutes a claim or a debt under this 
        title;''.
    (c) Exceptions To Discharge.--Section 523(a) of title 11, United 
States Code, as amended by section 215, is amended by adding at the end 
the following:
            ``(19) owed to a pension, profit-sharing, stock bonus, or 
        other plan established under section 401, 403, 408, 408A, 414, 
        457, or 501(c) of the Internal Revenue Code of 1986, under--
                    ``(A) a loan permitted under section 408(b)(1) of 
                the Employee Retirement Income Security Act of 1974, or 
                subject to section 72(p) of the Internal Revenue Code 
                of 1986; or
                    ``(B) a loan from the thrift savings plan described 
                in subchapter III of chapter 84 of title 5, that 
                satisfies the requirements of section 8433(g) of such 
                title;
        but nothing in this paragraph may be construed to provide that 
        any loan made under a governmental plan under section 414(d), 
        or a contract or account under section 403(b), of the Internal 
        Revenue Code of 1986 constitutes a claim or a debt under this 
        title.''.
    (d) Plan Contents.--Section 1322 of title 11, United States Code, 
is amended by adding at the end the following:
    ``(f) A plan may not materially alter the terms of a loan described 
in section 362(b)(19) and any amounts required to repay such loan shall 
not constitute `disposable income' under section 1325.''.
    (e) Asset Limitation.--
            (1) Limitation.--Section 522 of title 11, United States 
        Code, is amended by adding at the end the following:
    ``(n) For assets in individual retirement accounts described in 
section 408 or 408A of the Internal Revenue Code of 1986, other than a 
simplified employee pension under section 408(k) of that Code or a 
simple retirement account under section 408(p) of that Code, the 
aggregate value of such assets exempted under this section, without 
regard to amounts attributable to rollover contributions under section 
402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8) of the Internal 
Revenue Code of 1986, and earnings thereon, shall not exceed $1,000,000 
in a case filed by a debtor who is an individual, except that such 
amount may be increased if the interests of justice so require.''.
            (2) Adjustment of dollar amounts.--Paragraphs (1) and (2) 
        of section 104(b) of title 11, United States Code, are amended 
        by inserting ``522(n),'' after ``522(d),''.

SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANKRUPTCY.

    (a) Exclusions.--Section 541 of title 11, United States Code, is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (4), by striking ``or'' at the 
                end;
                    (B) by redesignating paragraph (5) as paragraph 
                (9); and
                    (C) by inserting after paragraph (4) the following:
            ``(5) funds placed in an education individual retirement 
        account (as defined in section 530(b)(1) of the Internal 
        Revenue Code of 1986) not later than 365 days before the date 
        of filing of the petition, but--
                    ``(A) only if the designated beneficiary of such 
                account was a son, daughter, stepson, stepdaughter, 
                grandchild, or step-grandchild of the debtor for the 
                taxable year for which funds were placed in such 
                account;
                    ``(B) only to the extent that such funds--
                            ``(i) are not pledged or promised to any 
                        entity in connection with any extension of 
                        credit; and
                            ``(ii) are not excess contributions (as 
                        described in section 4973(e) of the Internal 
                        Revenue Code of 1986); and
                    ``(C) in the case of funds placed in all such 
                accounts having the same designated beneficiary not 
                earlier than 720 days nor later than 365 days before 
                such date, only so much of such funds as does not 
                exceed $5,000;
            ``(6) funds used to purchase a tuition credit or 
        certificate or contributed to an account in accordance with 
        section 529(b)(1)(A) of the Internal Revenue Code of 1986 under 
        a qualified State tuition program (as defined in section 
        529(b)(1) of such Code) not later than 365 days before the date 
        of filing of the petition, but--
                    ``(A) only if the designated beneficiary of the 
                amounts paid or contributed to such tuition program was 
                a son, daughter, stepson, stepdaughter, grandchild, or 
                step-grandchild of the debtor for the taxable year for 
                which funds were paid or contributed;
                    ``(B) with respect to the aggregate amount paid or 
                contributed to such program having the same designated 
                beneficiary, only so much of such amount as does not 
                exceed the total contributions permitted under section 
                529(b)(7) of such Code with respect to such 
                beneficiary, as adjusted beginning on the date of the 
                filing of the petition by the annual increase or 
                decrease (rounded to the nearest tenth of 1 percent) in 
                the education expenditure category of the Consumer 
                Price Index prepared by the Department of Labor; and
                    ``(C) in the case of funds paid or contributed to 
                such program having the same designated beneficiary not 
                earlier than 720 days nor later than 365 days before 
                such date, only so much of such funds as does not 
                exceed $5,000;''; and
            (2) by adding at the end the following:
    ``(e) In determining whether any of the relationships specified in 
paragraph (5)(A) or (6)(A) of subsection (b) exists, a legally adopted 
child of an individual (and a child who is a member of an individual's 
household, if placed with such individual by an authorized placement 
agency for legal adoption by such individual), or a foster child of an 
individual (if such child has as the child's principal place of abode 
the home of the debtor and is a member of the debtor's household) shall 
be treated as a child of such individual by blood.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by section 106, is amended by adding at the end the 
following:
    ``(c) In addition to meeting the requirements under subsection (a), 
a debtor shall file with the court a record of any interest that a 
debtor has in an education individual retirement account (as defined in 
section 530(b)(1) of the Internal Revenue Code of 1986) or under a 
qualified State tuition program (as defined in section 529(b)(1) of 
such Code).''.

SEC. 226. DEFINITIONS.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended--
            (1) by inserting after paragraph (2) the following:
            ``(3) `assisted person' means any person whose debts 
        consist primarily of consumer debts and the value of whose 
        nonexempt property is less than $150,000;'';
            (2) by inserting after paragraph (4) the following:
            ``(4A) `bankruptcy assistance' means any goods or services 
        sold or otherwise provided to an assisted person with the 
        express or implied purpose of providing information, advice, 
        counsel, document preparation, or filing, or attendance at a 
        creditors' meeting or appearing in a proceeding on behalf of 
        another or providing legal representation with respect to a 
        case or proceeding under this title;''; and
            (3) by inserting after paragraph (12) the following:
            ``(12A) `debt relief agency' means any person who provides 
        any bankruptcy assistance to an assisted person in return for 
        the payment of money or other valuable consideration, or who is 
        a bankruptcy petition preparer under section 110, but does not 
        include--
                    ``(A) any person that is an officer, director, 
                employee, or agent of a person who provides such 
                assistance or of such preparer;
                    ``(B) a nonprofit organization which is exempt from 
                taxation under section 501(c)(3) of the Internal 
                Revenue Code of 1986;
                    ``(C) a creditor of such assisted person, to the 
                extent that the creditor is assisting such assisted 
                person to restructure any debt owed by such assisted 
                person to the creditor;
                    ``(D) a depository institution (as defined in 
                section 3 of the Federal Deposit Insurance Act) or any 
                Federal credit union or State credit union (as those 
                terms are defined in section 101 of the Federal Credit 
                Union Act), or any affiliate or subsidiary of such 
                depository institution or credit union; or
                    ``(E) an author, publisher, distributor, or seller 
                of works subject to copyright protection under title 
                17, when acting in such capacity.''.
    (b) Conforming Amendment.--Section 104(b) of title 11, United 
States Code, is amended by inserting ``101(3),'' after ``sections'' 
each place it appears.

SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES.

    (a) Enforcement.--Subchapter II of chapter 5 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 526. Restrictions on debt relief agencies
    ``(a) A debt relief agency shall not--
            ``(1) fail to perform any service that such agency informed 
        an assisted person or prospective assisted person it would 
        provide in connection with a case or proceeding under this 
        title;
            ``(2) make any statement, or counsel or advise any assisted 
        person or prospective assisted person to make a statement in a 
        document filed in a case or proceeding under this title, that 
        is untrue and misleading, or that upon the exercise of 
        reasonable care, should have been known by such agency to be 
        untrue or misleading;
            ``(3) misrepresent to any assisted person or prospective 
        assisted person, directly or indirectly, affirmatively or by 
        material omission, with respect to--
                    ``(i) the services that such agency will provide to 
                such person; or
                    ``(ii) the benefits and risks that may result if 
                such person becomes a debtor in a case under this 
                title; or
            ``(4) advise an assisted person or prospective assisted 
        person to incur more debt in contemplation of such person 
        filing a case under this title or to pay an attorney or 
        bankruptcy petition preparer fee or charge for services 
        performed as part of preparing for or representing a debtor in 
        a case under this title.
    ``(b) Any waiver by any assisted person of any protection or right 
provided under this section shall not be enforceable against the debtor 
by any Federal or State court or any other person, but may be enforced 
against a debt relief agency.
    ``(c)(1) Any contract for bankruptcy assistance between a debt 
relief agency and an assisted person that does not comply with the 
material requirements of this section, section 527, or section 528 
shall be void and may not be enforced by any Federal or State court or 
by any other person, other than such assisted person.
    ``(2) Any debt relief agency shall be liable to an assisted person 
in the amount of any fees or charges in connection with providing 
bankruptcy assistance to such person that such debt relief agency has 
received, for actual damages, and for reasonable attorneys' fees and 
costs if such agency is found, after notice and a hearing, to have--
            ``(A) intentionally or negligently failed to comply with 
        any provision of this section, section 527, or section 528 with 
        respect to a case or proceeding under this title for such 
        assisted person;
            ``(B) provided bankruptcy assistance to an assisted person 
        in a case or proceeding under this title that is dismissed or 
        converted to a case under another chapter of this title because 
        of such agency's intentional or negligent failure to file any 
        required document including those specified in section 521; or
            ``(C) intentionally or negligently disregarded the material 
        requirements of this title or the Federal Rules of Bankruptcy 
        Procedure applicable to such agency.
    ``(3) In addition to such other remedies as are provided under 
State law, whenever the chief law enforcement officer of a State, or an 
official or agency designated by a State, has reason to believe that 
any person has violated or is violating this section, the State--
            ``(A) may bring an action to enjoin such violation;
            ``(B) may bring an action on behalf of its residents to 
        recover the actual damages of assisted persons arising from 
        such violation, including any liability under paragraph (2); 
        and
            ``(C) in the case of any successful action under 
        subparagraph (A) or (B), shall be awarded the costs of the 
        action and reasonable attorney fees as determined by the court.
    ``(4) The district court of the United States for any district 
located in the State shall have concurrent jurisdiction of any action 
under subparagraph (A) or (B) of paragraph (3).
    ``(5) Notwithstanding any other provision of Federal law and in 
addition to any other remedy provided under Federal or State law, if 
the court, on its own motion or on the motion of the United States 
trustee or the debtor, finds that a person intentionally violated this 
section, or engaged in a clear and consistent pattern or practice of 
violating this section, the court may--
            ``(A) enjoin the violation of such section; or
            ``(B) impose an appropriate civil penalty against such 
        person.
    ``(d) No provision of this section, section 527, or section 528 
shall--
            ``(1) annul, alter, affect, or exempt any person subject to 
        such sections from complying with any law of any State except 
        to the extent that such law is inconsistent with those 
        sections, and then only to the extent of the inconsistency; or
            ``(2) be deemed to limit or curtail the authority or 
        ability--
                    ``(A) of a State or subdivision or instrumentality 
                thereof, to determine and enforce qualifications for 
                the practice of law under the laws of that State; or
                    ``(B) of a Federal court to determine and enforce 
                the qualifications for the practice of law before that 
                court.''.
    (b) Conforming Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 525, the following:

``526. Restrictions on debt relief agencies.''.

SEC. 228. DISCLOSURES.

    (a) Disclosures.--Subchapter II of chapter 5 of title 11, United 
States Code, as amended by section 227, is amended by adding at the end 
the following:
``Sec. 527. Disclosures
    ``(a) A debt relief agency providing bankruptcy assistance to an 
assisted person shall provide--
            ``(1) the written notice required under section 342(b)(1) 
        of this title; and
            ``(2) to the extent not covered in the written notice 
        described in paragraph (1), and not later than 3 business days 
        after the first date on which a debt relief agency first offers 
        to provide any bankruptcy assistance services to an assisted 
        person, a clear and conspicuous written notice advising 
        assisted persons that--
                    ``(A) all information that the assisted person is 
                required to provide with a petition and thereafter 
                during a case under this title is required to be 
                complete, accurate, and truthful;
                    ``(B) all assets and all liabilities are required 
                to be completely and accurately disclosed in the 
                documents filed to commence the case, and the 
                replacement value of each asset as defined in section 
                506 of this title must be stated in those documents 
                where requested after reasonable inquiry to establish 
                such value;
                    ``(C) current monthly income, the amounts specified 
                in section 707(b)(2), and, in a case under chapter 13, 
                disposable income (determined in accordance with 
                section 707(b)(2), are required to be stated after 
                reasonable inquiry; and
                    ``(D) information that an assisted person provides 
                during their case may be audited pursuant to this 
                title, and that failure to provide such information may 
                result in dismissal of the case under this title or 
                other sanction including, in some instances, criminal 
                sanctions.
    ``(b) A debt relief agency providing bankruptcy assistance to an 
assisted person shall provide each assisted person at the same time as 
the notices required under subsection (a)(1) with the following 
statement, to the extent applicable, or one substantially similar. The 
statement shall be clear and conspicuous and shall be in a single 
document separate from other documents or notices provided to the 
assisted person:
    ```IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM 
AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.
    ```If you decide to seek bankruptcy relief, you can represent 
yourself, you can hire an attorney to represent you, or you can get 
help in some localities from a bankruptcy petition preparer who is not 
an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION 
PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR 
BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. 
Ask to see the contract before you hire anyone.
    ```The following information helps you understand what must be done 
in a routine bankruptcy case to help you evaluate how much service you 
need. Although bankruptcy can be complex, many cases are routine.
    ```Before filing a bankruptcy case, either you or your attorney 
should analyze your eligibility for different forms of debt relief made 
available by the Bankruptcy Code and which form of relief is most 
likely to be beneficial for you. Be sure you understand the relief you 
can obtain and its limitations. To file a bankruptcy case, documents 
called a Petition, Schedules and Statement of Financial Affairs, as 
well as in some cases a Statement of Intention need to be prepared 
correctly and filed with the bankruptcy court. You will have to pay a 
filing fee to the bankruptcy court. Once your case starts, you will 
have to attend the required first meeting of creditors where you may be 
questioned by a court official called a `trustee' and by creditors.
    ```If you choose to file a chapter 7 case, you may be asked by a 
creditor to reaffirm a debt. You may want help deciding whether to do 
so and a creditor is not permitted to coerce you into reaffirming your 
debts.
    ```If you choose to file a chapter 13 case in which you repay your 
creditors what you can afford over 3 to 5 years, you may also want help 
with preparing your chapter 13 plan and with the confirmation hearing 
on your plan which will be before a bankruptcy judge.
    ```If you select another type of relief under the Bankruptcy Code 
other than chapter 7 or chapter 13, you will want to find out what 
needs to be done from someone familiar with that type of relief.
    ```Your bankruptcy case may also involve litigation. You are 
generally permitted to represent yourself in litigation in bankruptcy 
court, but only attorneys, not bankruptcy petition preparers, can give 
you legal advice.'.
    ``(c) Except to the extent the debt relief agency provides the 
required information itself after reasonably diligent inquiry of the 
assisted person or others so as to obtain such information reasonably 
accurately for inclusion on the petition, schedules or statement of 
financial affairs, a debt relief agency providing bankruptcy assistance 
to an assisted person, to the extent permitted by nonbankruptcy law, 
shall provide each assisted person at the time required for the notice 
required under subsection (a)(1) reasonably sufficient information 
(which shall be provided in a clear and conspicuous writing) to the 
assisted person on how to provide all the information the assisted 
person is required to provide under this title pursuant to section 521, 
including--
            ``(1) how to value assets at replacement value, determine 
        current monthly income, the amounts specified in section 
        707(b)(2) and, in a chapter 13 case, how to determine 
        disposable income in accordance with section 707(b)(2) and 
        related calculations;
            ``(2) how to complete the list of creditors, including how 
        to determine what amount is owed and what address for the 
        creditor should be shown; and
            ``(3) how to determine what property is exempt and how to 
        value exempt property at replacement value as defined in 
        section 506 of this title.
    ``(d) A debt relief agency shall maintain a copy of the notices 
required under subsection (a) of this section for 2 years after the 
date on which the notice is given the assisted person.''.
    (b) Conforming Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, as amended by section 227, is amended by 
inserting after the item relating to section 526 the following:

``527. Disclosures.''.

SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES.

    (a) Enforcement.--Subchapter II of chapter 5 of title 11, United 
States Code, as amended by sections 227 and 228, is amended by adding 
at the end the following:
``Sec. 528. Requirements for debt relief agencies
    ``(a) A debt relief agency shall--
            ``(1) not later than 5 business days after the first date 
        on which such agency provides any bankruptcy assistance 
        services to an assisted person, but prior to such assisted 
        person's petition under this title being filed, execute a 
        written contract with such assisted person that explains 
        clearly and conspicuously--
                    ``(A) the services such agency will provide to such 
                assisted person; and
                    ``(B) the fees or charges for such services, and 
                the terms of payment;
            ``(2) provide the assisted person with a copy of the fully 
        executed and completed contract;
            ``(3) clearly and conspicuously disclose in any 
        advertisement of bankruptcy assistance services or of the 
        benefits of bankruptcy directed to the general public (whether 
        in general media, seminars or specific mailings, telephonic or 
        electronic messages, or otherwise) that the services or 
        benefits are with respect to bankruptcy relief under this 
        title; and
            ``(4) clearly and conspicuously use the following statement 
        in such advertisement: `We are a debt relief agency. We help 
        people file for bankruptcy relief under the Bankruptcy Code.' 
        or a substantially similar statement.
    ``(b)(1) An advertisement of bankruptcy assistance services or of 
the benefits of bankruptcy directed to the general public includes--
            ``(A) descriptions of bankruptcy assistance in connection 
        with a chapter 13 plan whether or not chapter 13 is 
        specifically mentioned in such advertisement; and
            ``(B) statements such as `federally supervised repayment 
        plan' or `Federal debt restructuring help' or other similar 
        statements that could lead a reasonable consumer to believe 
        that debt counseling was being offered when in fact the 
        services were directed to providing bankruptcy assistance with 
        a chapter 13 plan or other form of bankruptcy relief under this 
        title.
    ``(2) An advertisement, directed to the general public, indicating 
that the debt relief agency provides assistance with respect to credit 
defaults, mortgage foreclosures, eviction proceedings, excessive debt, 
debt collection pressure, or inability to pay any consumer debt shall--
            ``(A) disclose clearly and conspicuously in such 
        advertisement that the assistance may involve bankruptcy relief 
        under this title; and
            ``(B) include the following statement: `We are a debt 
        relief agency. We help people file for bankruptcy relief under 
        the Bankruptcy Code.' or a substantially similar statement.''.
    (b) Conforming Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, as amended by section 227 and 228, is 
amended by inserting after the item relating to section 527, the 
following:

``528. Requirements for debt relief agencies.''.

SEC. 230. GAO STUDY.

    (a) Study.--Not later than 270 days after the date of enactment of 
this Act, the Comptroller General of the United States shall conduct a 
study of the feasibility, effectiveness, and cost of requiring trustees 
appointed under title 11, United States Code, or the bankruptcy courts, 
to provide to the Office of Child Support Enforcement promptly after 
the commencement of cases by debtors who are individuals under such 
title, the names and social security numbers of such debtors for the 
purposes of allowing such Office to determine whether such debtors have 
outstanding obligations for child support (as determined on the basis 
of information in the Federal Case Registry or other national 
database).
    (b) Report.--Not later than 300 days after the date of enactment of 
this Act, the Comptroller General shall submit to the President pro 
tempore of the Senate and the Speaker of the House of Representatives a 
report containing the results of the study required by subsection (a).

SEC. 231. PROTECTION OF PERSONALLY IDENTIFIABLE INFORMATION.

    (a) Limitation.--Section 363(b)(1) of title 11, United States Code, 
is amended by striking the period at the end and inserting the 
following:
``, except that if the debtor in connection with offering a product or 
a service discloses to an individual a policy prohibiting the transfer 
of personally identifiable information about individuals to persons 
that are not affiliated with the debtor and if such policy is in effect 
on the date of the commencement of the case, then the trustee may not 
sell or lease personally identifiable information to any person 
unless--
            ``(A) such sale or such lease is consistent with such 
        policy; or
            ``(B) after appointment of a consumer privacy ombudsman in 
        accordance with section 332, and after notice and a hearing, 
        the court approves such sale or such lease--
                    ``(i) giving due consideration to the facts, 
                circumstances, and conditions of such sale or such 
                lease; and
                    ``(ii) finding that no showing was made that such 
                sale or such lease would violate applicable 
                nonbankruptcy law.''.
    (b) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (41) the following:
            ``(41A) `personally identifiable information' means--
                    ``(A) if provided by an individual to the debtor in 
                connection with obtaining a product or a service from 
                the debtor primarily for personal, family, or household 
                purposes--
                            ``(i) the first name (or initial) and last 
                        name of such individual, whether given at birth 
                        or time of adoption, or resulting from a lawful 
                        change of name;
                            ``(ii) the geographical address of a 
                        physical place of residence of such individual;
                            ``(iii) an electronic address (including an 
                        e-mail address) of such individual;
                            ``(iv) a telephone number dedicated to 
                        contacting such individual at such physical 
                        place of residence;
                            ``(v) a social security account number 
                        issued to such individual; or
                            ``(vi) the account number of a credit card 
                        issued to such individual; or
                    ``(B) if identified in connection with 1 or more of 
                the items of information specified in subparagraph 
                (A)--
                            ``(i) a birth date, the number of a 
                        certificate of birth or adoption, or a place of 
                        birth; or
                            ``(ii) any other information concerning an 
                        identified individual that, if disclosed, will 
                        result in contacting or identifying such 
                        individual physically or electronically;''.

SEC. 232. CONSUMER PRIVACY OMBUDSMAN.

    (a) Consumer Privacy Ombudsman.--Title 11 of the United States Code 
is amended by inserting after section 331 the following:
``Sec. 332. Consumer privacy ombudsman
    ``(a) If a hearing is required under section 363(b)(1)(B) of this 
title, the court shall order the United States trustee to appoint, not 
later than 5 days before the commencement of the hearing, 1 
disinterested person (other than the United States trustee) to serve as 
the consumer privacy ombudsman in the case and shall require that 
notice of such hearing be timely given to such ombudsman.
    ``(b) The consumer privacy ombudsman may appear and be heard at 
such hearing and shall provide to the court information to assist the 
court in its consideration of the facts, circumstances, and conditions 
of the proposed sale or lease of personally identifiable information 
under section 363(b)(1)(B) of this title. Such information may include 
presentation of--
            ``(1) the debtor's privacy policy;
            ``(2) the potential losses or gains of privacy to consumers 
        if such sale or such lease is approved by the court;
            ``(3) the potential costs or benefits to consumers if such 
        sale or such lease is approved by the court; and
            ``(4) the potential alternatives that would mitigate 
        potential privacy losses or potential costs to consumers.
    ``(c) A consumer privacy ombudsman shall not disclose any 
personally identifiable information obtained by the ombudsman under 
this title.''.
    (b) Compensation of Consumer Privacy Ombudsman.--Section 330(a)(1) 
of title 11, United States Code, is amended in the matter preceding 
subparagraph (A), by inserting ``a consumer privacy ombudsman appointed 
under section 332,'' before ``an examiner''.
    (c) Conforming Amendment.--The table of sections for subchapter II 
of chapter 3 of title 11, United States Code, is amended by adding at 
the end the following:

``332. Consumer privacy ombudsman.''.

SEC. 233. PROHIBITION ON DISCLOSURE OF NAME OF MINOR CHILDREN.

    (a) Prohibition.--Title 11 of the United States Code, as amended by 
section 106, is amended by inserting after section 111 the following:
``Sec. 112. Prohibition on disclosure of name of minor children
    ``The debtor may be required to provide information regarding a 
minor child involved in matters under this title but may not be 
required to disclose in the public records in the case the name of such 
minor child. The debtor may be required to disclose the name of such 
minor child in a nonpublic record that is maintained by the court and 
made available by the court for examination by the United States 
trustee, the trustee, and the auditor (if any) appointed under section 
586(f) of title 28, in the case. The court, the United States trustee, 
the trustee, and such auditor shall not disclose the name of such minor 
child maintained in such nonpublic record.''.
    (b) Clerical Amendment.--The table of sections for chapter 1 of 
title 11, United States Code, as amended by section 106, is amended by 
inserting after the item relating to section 111 the following:

``112. Prohibition on disclosure of name of minor children.''.
    (c) Conforming Amendment.--Section 107(a) of title 11, United 
States Code, is amended by inserting ``and subject to section 112 of 
this title'' after ``section''.

                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

SEC. 301. REINFORCEMENT OF THE FRESH START.

    Section 523(a)(17) of title 11, United States Code, is amended--
            (1) by striking ``by a court'' and inserting ``on a 
        prisoner by any court'';
            (2) by striking ``section 1915(b) or (f)'' and inserting 
        ``subsection (b) or (f)(2) of section 1915''; and
            (3) by inserting ``(or a similar non-Federal law)'' after 
        ``title 28'' each place it appears.

SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS.

    Section 362(c) of title 11, United States Code, is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) if a single or joint case is filed by or against 
        debtor who is an individual in a case under chapter 7, 11, or 
        13, and if a single or joint case of the debtor was pending 
        within the preceding 1-year period but was dismissed, other 
        than a case refiled under a chapter other than chapter 7 after 
        dismissal under section 707(b)--
                    ``(A) 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;
                    ``(B) on the motion of a party in interest for 
                continuation of the automatic stay and upon notice and 
                a hearing, the court may extend the stay in particular 
                cases as to any or all creditors (subject to such 
                conditions or limitations as the court may then impose) 
                after notice and a hearing completed before the 
                expiration of the 30-day period only if the party in 
                interest demonstrates that the filing of the later case 
                is in good faith as to the creditors to be stayed; and
                    ``(C) for purposes of subparagraph (B), a case is 
                presumptively filed not in good faith (but such 
                presumption may be rebutted by clear and convincing 
                evidence to the contrary)--
                            ``(i) as to all creditors, if--
                                    ``(I) more than 1 previous case 
                                under any of chapters 7, 11, and 13 in 
                                which the individual was a debtor was 
                                pending within the preceding 1-year 
                                period;
                                    ``(II) a previous case under any of 
                                chapters 7, 11, and 13 in which the 
                                individual was a debtor was dismissed 
                                within such 1-year period, after the 
                                debtor failed to--
                                            ``(aa) file or amend the 
                                        petition or other documents as 
                                        required by this title or the 
                                        court without substantial 
                                        excuse (but mere inadvertence 
                                        or negligence shall not be a 
                                        substantial excuse unless the 
                                        dismissal was caused by the 
                                        negligence of the debtor's 
                                        attorney);
                                            ``(bb) provide adequate 
                                        protection as ordered by the 
                                        court; or
                                            ``(cc) perform the terms of 
                                        a plan confirmed by the court; 
                                        or
                                    ``(III) there has not been a 
                                substantial change in the financial or 
                                personal affairs of the debtor since 
                                the dismissal of the next most previous 
                                case under chapter 7, 11, or 13 or any 
                                other reason to conclude that the later 
                                case will be concluded--
                                            ``(aa) if a case under 
                                        chapter 7, with a discharge; or
                                            ``(bb) if a case under 
                                        chapter 11 or 13, with a 
                                        confirmed plan that will be 
                                        fully performed; and
                            ``(ii) as 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 such case, that action 
                        was still pending or had been resolved by 
                        terminating, conditioning, or limiting the stay 
                        as to actions of such creditor; and
            ``(4)(A)(i) if a single or joint case is filed by or 
        against a debtor who is an individual under this title, and if 
        2 or more single or joint cases of the debtor were pending 
        within the previous year but were dismissed, other than a case 
        refiled under section 707(b), the stay under subsection (a) 
        shall not go into effect upon the filing of the later case; and
            ``(ii) on request of a party in interest, the court shall 
        promptly enter an order confirming that no stay is in effect;
            ``(B) if, within 30 days after the filing of the later 
        case, a party in interest requests the court may order the stay 
        to take effect in the case as to any or all creditors (subject 
        to such conditions or limitations as the court may impose), 
        after notice and a hearing, only if the party in interest 
        demonstrates that the filing of the later case is in good faith 
        as to the creditors to be stayed;
            ``(C) a stay imposed under subparagraph (B) shall be 
        effective on the date of entry of the order allowing the stay 
        to go into effect; and
            ``(D) for purposes of subparagraph (B), a case is 
        presumptively not filed in good faith (but such presumption may 
        be rebutted by clear and convincing evidence to the contrary)--
                    ``(i) as to all creditors if--
                            ``(I) 2 or more previous cases under this 
                        title in which the individual was a debtor were 
                        pending within the 1-year period;
                            ``(II) a previous case under this title in 
                        which the individual was a debtor was dismissed 
                        within the time period stated in this paragraph 
                        after the debtor failed to file or amend the 
                        petition or other documents as required by this 
                        title or the court without substantial excuse 
                        (but mere inadvertence or negligence shall not 
                        be substantial excuse unless the dismissal was 
                        caused by the negligence of the debtor's 
                        attorney), failed to provide adequate 
                        protection as ordered by the court, or failed 
                        to perform the terms of a plan confirmed by the 
                        court; or
                            ``(III) there has not been a substantial 
                        change in the financial or personal affairs of 
                        the debtor since the dismissal of the next most 
                        previous case under this title, or any other 
                        reason to conclude that the later case will not 
                        be concluded, if a case under chapter 7, with a 
                        discharge, and if a case under chapter 11 or 
                        13, with a confirmed plan that will be fully 
                        performed; or
                    ``(ii) as 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 such case, such action was still pending or had been 
                resolved by terminating, conditioning, or limiting the 
                stay as to action of such creditor.''.

SEC. 303. CURBING ABUSIVE FILINGS.

    (a) In General.--Section 362(d) of title 11, United States Code, is 
amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) with respect to a stay of an act against real 
        property under subsection (a), by a creditor whose claim is 
        secured by an interest in such real estate, if the court finds 
        that the filing of the bankruptcy petition was part of a scheme 
        to delay, hinder, and defraud creditors that involved either--
                    ``(A) transfer of all or part ownership of, or 
                other interest in, the real property without the 
                consent of the secured creditor or court approval; or
                    ``(B) multiple bankruptcy filings affecting the 
                real property.
If recorded in compliance with applicable State laws governing notices 
of interests or liens in real property, an order entered under this 
subsection shall be binding in any other case under this title 
purporting to affect the real property filed not later than 2 years 
after the date of entry of such order by the court, except that a 
debtor in a subsequent case may move for relief from such order based 
upon changed circumstances or for good cause shown, after notice and a 
hearing. Any Federal, State, or local governmental unit that accepts 
notices of interests or liens in real property shall accept any 
certified copy of an order described in this subsection for indexing 
and recording.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 224, is amended by inserting after 
paragraph (19), the following:
            ``(20) under subsection (a), of any act to enforce any lien 
        against or security interest in real property following the 
        entry of an order under section 362(d)(4) as to that property 
        in any prior bankruptcy case for a period of 2 years after 
        entry of such an order, except that the debtor, in a subsequent 
        case, may move the court for relief from such order based upon 
        changed circumstances or for other good cause shown, after 
        notice and a hearing;
            ``(21) under subsection (a), of any act to enforce any lien 
        against or security interest in real property--
                    ``(A) if the debtor is ineligible under section 
                109(g) to be a debtor in a bankruptcy case; or
                    ``(B) if the bankruptcy case was filed in violation 
                of a bankruptcy court order in a prior bankruptcy case 
                prohibiting the debtor from being a debtor in another 
                bankruptcy case;''.

SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

    Title 11, United States Code, is amended--
            (1) in section 521(a), as so designated by section 106--
                    (A) in paragraph (4), by striking ``, and'' at the 
                end and inserting a semicolon;
                    (B) in paragraph (5), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) in a case under chapter 7 of this title in which the 
        debtor is an individual, not retain possession of personal 
        property as to which a creditor has an allowed claim for the 
        purchase price secured in whole or in part by an interest in 
        that personal property unless the debtor, not later than 45 
        days after the first meeting of creditors under section 341(a), 
        either--
                    ``(A) enters into an agreement with the creditor 
                pursuant to section 524(c) of this title with respect 
                to the claim secured by such property; or
                    ``(B) redeems such property from the security 
                interest pursuant to section 722 of this title.
If the debtor fails to so act within the 45-day period referred to in 
paragraph (6), the stay under section 362(a) of this title is 
terminated with respect to the personal property of the estate or of 
the debtor which is affected, such property shall no longer be property 
of the estate, and the creditor may take whatever action as to such 
property as is permitted by applicable nonbankruptcy law, unless the 
court determines on the motion of the trustee filedbefore the 
expiration of such 45-day period, and after notice and a hearing, that 
such property is of consequential value or benefit to the estate, 
orders appropriate adequate protection of the creditor's interest, and 
orders the debtor to deliver any collateral in the debtor's possession 
to the trustee.''; and
            (2) in section 722, by inserting ``in full at the time of 
        redemption'' before the period at the end.

SEC. 305. RELIEF FROM THE AUTOMATIC STAY WHEN THE DEBTOR DOES NOT 
              COMPLETE INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.

    Title 11, United States Code, is amended--
            (1) in section 362, as amended by section 106--
                    (A) in subsection (c), by striking ``(e), and (f)'' 
                and inserting ``(e), (f), and (h)'';
                    (B) by redesignating subsection (h) as subsection 
                (k) and transferring such subsection so as to insert it 
                after subjection (j) as added by section 106; and
                    (C) by inserting after subsection (g) the 
                following:
    ``(h)(1) In a case in which the debtor is an individual, the stay 
provided by subsection (a) is terminated with respect to personal 
property of the estate or of the debtor securing in whole or in part a 
claim, or subject to an unexpired lease, and such personal property 
shall no longer be property of the estate if the debtor fails within 
the applicable time set by section 521(a)(2) of this title--
            ``(A) to file timely any statement of intention required 
        under section 521(a)(2) of this title with respect to that 
        property or to indicate in that statement that the debtor will 
        either surrender the property or retain it and, if retaining 
        it, either redeem the property pursuant to section 722 of this 
        title, reaffirm the debt it secures pursuant to section 524(c) 
        of this title, or assume the unexpired lease pursuant to 
        section 365(p) of this title if the trustee does not do so, as 
        applicable; and
            ``(B) to take timely the action specified in that statement 
        of intention, as it may be amended before expiration of the 
        period for taking action, unless the statement of intention 
        specifies reaffirmation and the creditor refuses to reaffirm on 
        the original contract terms.
    ``(2) Paragraph (1) does not apply if the court determines, on the 
motion of the trustee filed before the expiration of the applicable 
time set by section 521(a)(2), after notice and a hearing, that such 
property is of consequential value or benefit to the estate, and orders 
appropriate adequate protection of the creditor's interest, and orders 
the debtor to deliver any collateral in the debtor's possession to the 
trustee. If the court does not so determine, the stay provided by 
subsection (a) shall terminate upon the conclusion of the proceeding on 
the motion.''; and
            (2) in section 521, as amended by sections 106 and 225--
                    (A) in subsection (a)(2) by striking ``consumer'';
                    (B) in subsection (a)(2)(B)--
                            (i) by striking ``forty-five days after the 
                        filing of a notice of intent under this 
                        section'' and inserting ``30 days after the 
                        first date set for the meeting of creditors 
                        under section 341(a) of this title''; and
                            (ii) by striking ``forty-five day'' and 
                        inserting ``30-day'';
                    (C) in subsection (a)(2)(C) by inserting ``, except 
                as provided in section 362(h) of this title'' before 
                the semicolon; and
                    (D) by adding at the end the following:
    ``(d) If the debtor fails timely to take the action specified in 
subsection (a)(6) of this section, or in paragraphs (1) and (2) of 
section 362(h) of this title, with respect to property which a lessor 
or bailor owns and has leased, rented, or bailed to the debtor or as to 
which a creditor holds a security interest not otherwise voidable under 
section 522(f), 544, 545, 547, 548, or 549 of this title, nothing in 
this title shall prevent or limit the operation of a provision in the 
underlying lease or agreement which has the effect of placing the 
debtor in default under such lease or agreement by reason of the 
occurrence, pendency, or existence of a proceeding under this title or 
the insolvency of the debtor. Nothing in this subsection shall be 
deemed to justify limiting such a provision in any other 
circumstance.''.

SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

    (a) In General.--Section 1325(a)(5)(B)(i) of title 11, United 
States Code, is amended to read as follows:
                    ``(i) the plan provides that--
                            ``(I) the holder of such claim retain the 
                        lien securing such claim until the earlier of--
                                    ``(aa) the payment of the 
                                underlying debt determined under 
                                nonbankruptcy law; or
                                    ``(bb) discharge under section 
                                1328; and
                            ``(II) if the case under this chapter is 
                        dismissed or converted without completion of 
                        the plan, such lien shall also be retained by 
                        such holder to the extent recognized by 
                        applicable nonbankruptcy law; and''.
    (b) Restoring the Foundation for Secured Credit.--Section 1325(a) 
of title 11, United States Code, is amended by adding at the end the 
following:
``For purposes of paragraph (5), section 506 shall not apply to a claim 
described in that paragraph if the creditor has a purchase money 
security interest securing the debt that is the subject of the claim, 
the debt was incurred within the 910-day preceding the filing of the 
petition, and the collateral for that debt consists of a motor vehicle 
(as defined in section 30102 of title 49) acquired for the personal use 
of the debtor, or if collateral for that debt consists of any other 
thing of value, if the debt was incurred during the 1-year period 
preceding that filing.''.
    (c) Definitions.--Section 101 of title 11, United States Code, 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 
                cooperative unit, a mobile or manufactured home, or 
                trailer;''; and
            (2) by inserting after paragraph (27), the following:
            ``(27A) `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. 307. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.

    Section 522(b)(3) of title 11, United States Code, as so designated 
by section 106, is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``180 days'' and inserting ``730 
                days''; and
                    (B) by striking ``, or for a longer portion of such 
                180-day period than in any other place'' and inserting 
                ``or if the debtor's domicile has not been located at a 
                single State for such 730-day period, the place in 
                which the debtor's domicile was located for 180 days 
                immediately preceding the 730-day period or for a 
                longer portion of such 180-day period than in any other 
                place''; and
            (2) by adding at the end the following:
``If the effect of the domiciliary requirement under subparagraph (A) 
is to render the debtor ineligible for any exemption, the debtor may 
elect to exempt property that is specified under subsection (d).''.

SEC. 308. REDUCTION OF HOMESTEAD EXEMPTION FOR FRAUD.

    Section 522 of title 11, United States Code, as amended by section 
224, is amended--
            (1) in subsection (b)(3)(A), as so designated by this Act, 
        by inserting ``subject to subsections (o) and (p),'' before 
        ``any property''; and
            (2) by adding at the end the following:
    ``(o) For purposes of subsection (b)(3)(A), and notwithstanding 
subsection (a), the value of an interest in--
            ``(1) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
            ``(2) a cooperative that owns property that the debtor or a 
        dependent of the debtor uses as a residence;
            ``(3) a burial plot for the debtor or a dependent of the 
        debtor; or
            ``(4) real or personal property that the debtor or a 
        dependent of the debtor claims as a homestead;
shall be reduced to the extent that such value is attributable to any 
portion of any property that the debtor disposed of in the 10-year 
period ending on the date of the filing of the petition with the intent 
to hinder, delay, or defraud a creditor and that the debtor could not 
exempt, or that portion that the debtor could not exempt, under 
subsection (b), if on such date the debtor had held the property so 
disposed of.''.

SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER 13 CASES.

    (a) 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 a case under chapter 11 or 12, but not in 
                a case converted to a case under 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--
                    ``(i) 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 such 
                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 case under chapter 13; and
                    ``(ii) unless a prebankruptcy default has been 
                fully cured under the plan at the time of conversion, 
                in any proceeding under this title or otherwise, the 
                default shall have the effect given under applicable 
                nonbankruptcy law.''.
    (b) Giving Debtors the Ability To Keep Leased Personal Property by 
Assumption.--Section 365 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(p)(1) If a lease of personal property is rejected or not timely 
assumed by the trustee under subsection (d), the leased property is no 
longer property of the estate and the stay under section 362(a) is 
automatically terminated.
    ``(2)(A) If the debtor in a case under chapter 7 is an individual, 
the debtor may notify the creditor in writing that the debtor desires 
to assume the lease. Upon being so notified, the creditor may, at its 
option, notify the debtor that it is willing to have the lease assumed 
by the debtor and may condition such assumption on cure of any 
outstanding default on terms set by the contract.
    ``(B) If, not later than 30 days after notice is provided under 
subparagraph (A), the debtor notifies the lessor in writing that the 
lease is assumed, the liability under the lease will be assumed by the 
debtor and not by the estate.
    ``(C) The stay under section 362 and the injunction under section 
524(a)(2) shall not be violated by notification of the debtor and 
negotiation of cure under this subsection.
    ``(3) In a case under chapter 11 in which the debtor is an 
individual and in a case under chapter 13, if the debtor is the lessee 
with respect to personal property and the lease is not assumed in the 
plan confirmed by the court, the lease is deemed rejected as of the 
conclusion of the hearing on confirmation. If the lease is rejected, 
the stay under section 362 and any stay under section 1301 is 
automatically terminated with respect to the property subject to the 
lease.''.
    (c) Adequate Protection of Lessors and Purchase Money Secured 
Creditors.--
            (1) Confirmation of plan.--Section 1325(a)(5)(B) of title 
        11, United States Code, as amended by section 306, is amended--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking ``or'' at the end 
                and inserting ``and''; and
                    (C) by adding at the end the following:
                    ``(iii) if--
                            ``(I) property to be distributed pursuant 
                        to this subsection is in the form of periodic 
                        payments, such payments shall be in equal 
                        monthly amounts; and
                            ``(II) the holder of the claim is secured 
                        by personal property, the amount of such 
                        payments shall not be less than an amount 
                        sufficient to provide to the holder of such 
                        claim adequate protection during the period of 
                        the plan; or''.
            (2) Payments.--Section 1326(a) of title 11, United States 
        Code, is amended to read as follows:
    ``(a)(1) Unless the court orders otherwise, the debtor shall 
commence making payments not later than 30 days after the date of the 
filing of the plan or the order for relief, whichever is earlier, in 
the amount--
            ``(A) proposed by the plan to the trustee;
            ``(B) scheduled in a lease of personal property directly to 
        the lessor for that portion of the obligation that becomes due 
        after the order for relief, reducing the payments under 
        subparagraph (A) by the amount so paid and providing the 
        trustee with evidence of such payment, including the amount and 
        date of payment; and
            ``(C) that provides adequate protection directly to a 
        creditor holding an allowed claim secured by personal property 
        to the extent the claim is attributable to the purchase of such 
        property by the debtor for that portion of the obligation that 
        becomes due after the order for relief, reducing the payments 
        under subparagraph (A) by the amount so paid and providing the 
        trustee with evidence of such payment, including the amount and 
        date of payment.
    ``(2) A payment made under paragraph (1)(A) shall be retained by 
the trustee until confirmation or denial of confirmation. If a plan is 
confirmed, the trustee shall distribute any such payment in accordance 
with the plan as soon as is practicable. If a plan is not confirmed, 
the trustee shall return any such payments not previously paid and not 
yet due and owing to creditors pursuant to paragraph (3) to the debtor, 
after deducting any unpaid claim allowed under section 503(b).
    ``(3) Subject to section 363, the court may, upon notice and a 
hearing, modify, increase, or reduce the payments required under this 
subsection pending confirmation of a plan.
    ``(4) Not later than 60 days after the date of filing of a case 
under this chapter, a debtor retaining possession of personal property 
subject to a lease or securing a claim attributable in whole or in part 
to the purchase price of such property shall provide the lessor or 
secured creditor reasonable evidence of the maintenance of any required 
insurance coverage with respect to the use or ownership of such 
property and continue to do so for so long as the debtor retains 
possession of such property.''.

SEC. 310. LIMITATION ON LUXURY GOODS.

    Section 523(a)(2)(C) of title 11, United States Code, is amended to 
read as follows:
                    ``(C)(i) for purposes of subparagraph (A)--
                            ``(I) consumer debts owed to a single 
                        creditor and aggregating more than $500 for 
                        luxury goods or services incurred by an 
                        individual debtor on or within 90 days before 
                        the order for relief under this title are 
                        presumed to be nondischargeable; and
                            ``(II) cash advances aggregating more than 
                        $750 that are extensions of consumer credit 
                        under an open end credit plan obtained by an 
                        individual debtor on or within 70 days before 
                        the order for relief under this title, are 
                        presumed to be nondischargeable; and
                    ``(ii) for purposes of this subparagraph--
                            ``(I) the terms `consumer', `credit', and 
                        `open end credit plan' have the same meanings 
                        as in section 103 of the Truth in Lending Act; 
                        and
                            ``(II) the term `luxury goods or services' 
                        does not include goods or services reasonably 
                        necessary for the support or maintenance of the 
                        debtor or a dependent of the debtor.''.

SEC. 311. AUTOMATIC STAY.

    (a) In general.--Section 362(b) of title 11, United States Code, as 
amended by sections 224 and 303, is amended by inserting after 
paragraph (21), the following:
            ``(22) subject to subsection (n), under subsection (a)(3), 
        of the continuation of any eviction, unlawful detainer action, 
        or similar proceeding by a lessor against a debtor involving 
        residential property in which the debtor resides as a tenant 
        under a lease or rental agreement and with respect to which the 
        lessor has obtained before the date of the filing of the 
        bankruptcy petition, a judgment for possession of such property 
        against the debtor;
            ``(23) subject to subsection (o), under subsection (a)(3), 
        of an eviction action that seeks possession of the residential 
        property in which the debtor resides as a tenant under a lease 
        or rental agreement based on endangerment of such property or 
        the illegal use of controlled substances on such property, but 
        only if the lessor files with the court, and serves upon the 
        debtor, a certification under penalty of perjury that such an 
        eviction action has been filed, or that the debtor, during the 
        30-day period preceding the date of the filing of the 
        certification, has endangered property or illegally used or 
        allowed to be used a controlled substance on the property;
            ``(24) under subsection (a), of any transfer that is not 
        avoidable under section 544 and that is not avoidable under 
        section 549;''.
    (b) Limitations.--Section 362 of title 11, United States Code, as 
amended by sections 106 and 305, is amended by adding at the end the 
following:
    ``(n)(1) Except as otherwise provided in this subsection, 
subsection (b)(22) shall apply on the date that is 30 days after the 
date on which the bankruptcy petition is filed, if the debtor files 
with the petition and serves upon the lessor a certification under 
penalty of perjury that--
            ``(A) under nonbankruptcy law applicable in the 
        jurisdiction, there are circumstances under which the debtor 
        would be permitted to cure the entire monetary default that 
        gave rise to the judgment for possession, after that judgment 
        for possession was entered; and
            ``(B) the debtor (or an adult dependent of the debtor) has 
        deposited with the clerk of the court, any rent that would 
        become due during the 30-day period after the filing of the 
        bankruptcy petition.
    ``(2) If, within the 30-day period after the filing of the 
bankruptcy petition, the debtor (or an adult dependent of the debtor) 
complies with paragraph (1) and files with the court and serves upon 
the lessor a further certification under penalty of perjury that the 
debtor (or an adult dependent of the debtor) has cured, under 
nonbankrupcty law applicable in the jurisdiction, the entire monetary 
default that gave rise to the judgment under which possession is sought 
by the lessor, subsection (b)(22) shall not apply, unless ordered to 
apply by the court under paragraph (3).
    ``(3)(A) If the lessor files an objection to any certification 
filed by the debtor under paragraph (1) or (2), and serves such 
objection upon the debtor, the court shall hold a hearing within 10 
days after the filing and service of such objection to determine if the 
certification filed by the debtor under paragraph (1) or (2) is true.
    ``(B) If the court upholds the objection of the lessor filed under 
subparagraph (A)--
            ``(i) subsection (b)(22) shall apply immediately and relief 
        from the stay provided under subsection (a)(3) shall not be 
        required to enable the lessor to complete the process to 
        recover full possession of the property; and
            ``(ii) the clerk of the court shall immediately serve upon 
        the lessor and the debtor a certified copy of the court's order 
        upholding the lessor's objection.
    ``(4) If a debtor, in accordance with paragraph (5), indicates on 
the petition that there was a judgment for possession of the 
residential rental property in which the debtor resides and does not 
file a certification under paragraph (1) or (2)--
            ``(A) subsection (b)(22) shall apply immediately upon 
        failure to file such certification, and relief from the stay 
        provided under subsection (a)(3) shall not be required to 
        enable the lessor to complete the process to recover full 
        possession of the property; and
            ``(B) the clerk of the court shall immediately serve upon 
        the lessor and the debtor a certified copy of the docket 
        indicating the absence of a filed certification and the 
        applicability of the exception to the stay under subsection 
        (b)(22).
    ``(5)(A) Where a judgment for possession of residential property in 
which the debtor resides as a tenant under a lease or rental agreement 
has been obtained by the lessor, the debtor shall so indicate on the 
bankruptcy petition and shall provide the name and address of the 
lessor that obtained that pre-petition judgment on the petition and on 
any certification filed under this subsection.
    ``(B) The form of certification filed with the petition, as 
specified in this subsection, shall provide for the debtor to certify, 
and the debtor shall certify--
            ``(i) whether a judgment for possession of residential 
        rental housing in which the debtor resides has been obtained 
        against the debtor before the filing of the petition; and
            ``(ii) whether the debtor is claiming under paragraph (1) 
        that under nonbankruptcy law applicable in the jurisdiction, 
        there are circumstances under which the debtor would be 
        permitted to cure the entire monetary default that gave rise to 
        the judgment for possession, after that judgment of possession 
        was entered, and has made the appropriate deposit with the 
        court.
    ``(C) The standard forms (electronic and otherwise) used in a 
bankruptcy proceeding shall be amended to reflect the requirements of 
this subsection.
    ``(D) The clerk of the court shall arrange for the prompt 
transmittal of the rent deposited in accordance with paragraph (1)(B) 
to the lessor.
    ``(o)(1) Except as otherwise provided in this subsection, 
subsection (b)(23) shall apply on the date that is 15 days after the 
date on which the lessor files and serves a certification described in 
subsection (b)(23).
    ``(2)(A) If the debtor files with the court an objection to the 
truth or legal sufficiency of the certification described in subsection 
(b)(23) and serves such objection upon the lessor, subsection (b)(23) 
shall not apply, unless ordered to apply by the court under this 
subsection.
    ``(B) If the debtor files and serves the objection under 
subparagraph (A), the court shall hold a hearing within 10 days after 
the filing and service of such objection to determine if the situation 
giving rise to the lessor's certification under paragraph (1) existed 
or has been remedied.
    ``(C) If the debtor can demonstrate to the satisfaction of the 
court that the situation giving rise to the lessor's certification 
under paragraph (1) did not exist or has been remedied, the stay 
provided under subsection (a)(3) shall remain in effect until the 
termination of the stay under this section.
    ``(D) If the debtor cannot demonstrate to the satisfaction of the 
court that the situation giving rise to the lessor's certification 
under paragraph (1) did not exist or has been remedied--
            ``(i) relief from the stay provided under subsection (a)(3) 
        shall not be required to enable the lessor to proceed with the 
        eviction; and
            ``(ii) the clerk of the court shall immediately serve upon 
        the lessor and the debtor a certified copy of the court's order 
        upholding the lessor's certification.
    ``(3) If the debtor fails to file, within 15 days, an objection 
under paragraph (2)(A)--
            ``(A) subsection (b)(23) shall apply immediately upon such 
        failure and relief from the stay provided under subsection 
        (a)(3) shall not be required to enable the lessor to complete 
        the process to recover full possession of the property; and
            ``(B) the clerk of the court shall immediately serve upon 
        the lessor and the debtor a certified copy of the docket 
        indicating such failure.''.

SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY DISCHARGES.

    Title 11, United States Code, is amended--
            (1) in section 727(a)(8), by striking ``six'' and inserting 
        ``8''; and
            (2) in section 1328, by inserting after subsection (e) the 
        following:
    ``(f) Notwithstanding subsections (a) and (b), the court shall not 
grant a discharge of all debts provided for in the plan or disallowed 
under section 502, if the debtor has received a discharge--
            ``(1) in a case filed under chapter 7, 11, or 12 of this 
        title during the 4-year period preceding the date of the order 
        for relief under this chapter, or
            ``(2) in a case filed under chapter 13 of this title during 
        the 2-year period preceding the date of such order.''.

SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

    (a) Definition.--Section 522(f) of title 11, United States Code, is 
amended by adding at the end the following:
    ``(4)(A) Subject to subparagraph (B), for purposes of paragraph 
(1)(B), the term `household goods' means--
            ``(i) clothing;
            ``(ii) furniture;
            ``(iii) appliances;
            ``(iv) 1 radio;
            ``(v) 1 television;
            ``(vi) 1 VCR;
            ``(vii) linens;
            ``(viii) china;
            ``(ix) crockery;
            ``(x) kitchenware;
            ``(xi) educational materials and educational equipment 
        primarily for the use of minor dependent children of the 
        debtor;
            ``(xii) medical equipment and supplies;
            ``(xiii) furniture exclusively for the use of minor 
        children, or elderly or disabled dependents of the debtor;
            ``(xiv) personal effects (including the toys and hobby 
        equipment of minor dependent children and wedding rings) of the 
        debtor and the dependents of the debtor; and
            ``(xv) 1 personal computer and related equipment.
    ``(B) The term `household goods' does not include--
            ``(i) works of art (unless by or of the debtor, or any 
        relative of the debtor);
            ``(ii) electronic entertainment equipment with a fair 
        market value of more than $500 in the aggregate (except 1 
        television, 1 radio, and 1 VCR);
            ``(iii) items acquired as antiques with a fair market value 
        of more than $500 in the aggregate;
            ``(iv) jewelry with a fair market value of more than $500 
        in the aggregate (except wedding rings); and
            ``(v) a computer (except as otherwise provided for in this 
        section), motor vehicle (including a tractor or lawn tractor), 
        boat, or a motorized recreational device, conveyance, vehicle, 
        watercraft, or aircraft.''.
    (b) Study.--Not later than 2 years after the date of enactment of 
this Act, the Director of the Executive Office for United States 
Trustees shall submit a report to the Committee on the Judiciary of the 
Senate and the Committee on the Judiciary of the House of 
Representatives containing its findings regarding utilization of the 
definition of household goods, as defined in section 522(f)(4) of title 
11, United States Code, as added by this section, with respect to the 
avoidance of nonpossessory, nonpurchase money security interests in 
household goods under section 522(f)(1)(B) of title 11, United States 
Code, and the impact that section 522(f)(4) of that title, as added by 
this section, has had on debtors and on the bankruptcy courts. Such 
report may include recommendations for amendments to section 522(f)(4) 
of title 11, United States Code, consistent with the Director's 
findings.

SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE DEBTS.

    (a) In General.--Section 523(a) of title 11, United States Code, is 
amended by inserting after paragraph (14) the following:
            ``(14A) incurred to pay a tax to a governmental unit, other 
        than the United States, that would be nondischargeable under 
        paragraph (1);''.
    (b) 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), (3), (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. GIVING CREDITORS FAIR NOTICE IN CHAPTERS 7 AND 13 CASES.

    (a) Notice.--Section 342 of title 11, United States Code, as 
amended by section 102, is amended--
            (1) in subsection (c)--
                    (A) by inserting ``(1)'' after ``(c)'';
                    (B) by striking ``, but the failure of such notice 
                to contain such information shall not invalidate the 
                legal effect of such notice''; and
                    (C) by adding at the end the following:
    ``(2)(A) If, within the 90 days before the commencement of a 
voluntary case, a creditor supplies the debtor in at least 2 
communications sent to the debtor with the current account number of 
the debtor and the address at which such creditor requests to receive 
correspondence, then any notice required by this title to be sent by 
the debtor to such creditor shall be sent to such address and shall 
include such account number.
    (B) If a creditor would be in violation of applicable nonbankruptcy 
law by sending any such communication within such 90-day period and if 
such creditor supplies the debtor in the last 2 communications with the 
current account number of the debtor and the address at which such 
creditor requests to receive correspondence, then any notice required 
by this title to be sent by the debtor to such creditor shall be sent 
to such address and shall include such account number; and
            (2) by adding at the end the following:
    ``(e)(1) In a case under chapter 7 or 13 of this title of a debtor 
who is an individual, a creditor at any time may both file with the 
court and serve on the debtor a notice of address to be used to provide 
notice in such case to such creditor.
    ``(2) Any notice in such case required to be provided to such 
creditor by the debtor or the court later than 5 days after the court 
and the debtor receive such creditor's notice of address, shall be 
provided to such address.
    ``(f)(1) An entity may file with any bankruptcy court a notice of 
address to be used by all the bankruptcy courts or by particular 
bankruptcy courts, as so specified by such entity at the time such 
notice is filed, to provide notice to such entity in all cases under 
chapters 7 and 13 pending in the courts with respect to which such 
notice is filed, in which such entity is a creditor.
    ``(2) In any case filed under chapter 7 or 13, any notice required 
to be provided by a court with respect to which a notice is filed under 
paragraph (1), to such entity later than 30 days after the filing of 
such notice under paragraph (1) shall be provided to such address 
unless with respect to a particular case a different address is 
specified in a notice filed and served in accordance with subsection 
(e).
    ``(3) A notice filed under paragraph (1) may be withdrawn by such 
entity.
    ``(g)(1) Notice provided to a creditor by the debtor or the court 
other than in accordance with this section (excluding this subsection) 
shall not be effective notice until such notice is brought to the 
attention of such creditor. If such creditor designates a person or an 
organizational subdivision of such creditor to be responsible for 
receiving notices under this title and establishes reasonable 
procedures so that such notices receivable by such creditor are to be 
delivered to such person or such subdivision, then a notice provided to 
such creditor other than in accordance with this section (excluding 
this subsection) shall not be considered to have been brought to the 
attention of such creditor until such notice is received by such person 
or such subdivision.
    ``(2) A monetary penalty may not be imposed on a creditor for a 
violation of a stay in effect under section 362(a) of this title 
(including a monetary penalty imposed under section 362(k) of this 
title) or for failure to comply with section 542 or 543 unless the 
conduct that is the basis of such violation or of such failure occurs 
after such creditor receives notice effective under this section of the 
order for relief.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by sections 106, 225, and 305, is amended--
            (1) in subsection (a), as so designated by section 106, by 
        amending paragraph (1) to read as follows:
            ``(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 section 342(b) 
                        applies, a certificate--
                                    ``(I) of an attorney whose name is 
                                indicated on the petition as the 
                                attorney for the debtor, or any 
                                bankruptcy petition preparer signing 
                                the petition under section 110(b)(1), 
                                indicating that such attorney or such 
                                bankruptcy petition preparer delivered 
                                to the debtor the notice required by 
                                section 342(b); or
                                    ``(II) if no attorney is so 
                                indicated, and no bankruptcy petition 
                                preparer signed the petition, of the 
                                debtor that such notice was received 
                                and read by the debtor;
                            ``(iv) copies of all payment advices or 
                        other evidence of payment received within 60 
                        days before the filing of the petition, by the 
                        debtor from any employer of the debtor;
                            ``(v) a statement of the amount of monthly 
                        net income, itemized to show how the amount is 
                        calculated; and
                            ``(vi) a statement disclosing any 
                        reasonably anticipated increase in income or 
                        expenditures over the 12-month period following 
                        the date of the filing of the petition;''; and
            (2) by adding at the end the following:
    ``(e)(1) If the debtor in a case under chapter 7 or 13 is an 
individual and if a creditor files with the court at any time a request 
to receive a copy of the petition, schedules, and statement of 
financial affairs filed by the debtor, then the court shall make such 
petition, such schedules, and such statement available to such 
creditor.
    ``(2)(A) The debtor shall provide--
            ``(i) not later than 7 days before the date first set for 
        the first meeting of creditors, to the trustee a copy of the 
        Federal income tax return required under applicable law (or at 
        the election of the debtor, a transcript of such return) for 
        the most recent tax year ending immediately before the 
        commencement of the case and for which a Federal income tax 
        return was filed; and
            ``(ii) at the same time the debtor complies with clause 
        (i), a copy of such return (or if elected under clause (i), 
        such transcript) to any creditor that timely requests such 
        copy.
    ``(B) If the debtor fails to comply with clause (i) or (ii) of 
subparagraph (A), the court shall dismiss the case unless the debtor 
demonstrates that the failure to so comply is due to circumstances 
beyond the control of the debtor.
    ``(C) If a creditor requests a copy of such tax return or such 
transcript and if the debtor fails to provide a copy of such tax return 
or such transcript to such creditor at the time the debtor provides 
such tax return or such transcript to the trustee, then the court shall 
dismiss the case unless the debtor demonstrates that the failure to 
provide a copy of such tax return or such transcript is due to 
circumstances beyond the control of the debtor.
    ``(3) If a creditor in a case under chapter 13 files with the court 
at any time a request to receive a copy of the plan filed by the 
debtor, then the court shall make available to such creditor a copy of 
such plan--
            ``(A) at a reasonable cost; and
            ``(B) not later than 5 days after such request is filed.
    ``(f) At the request of the court, the United States trustee, or 
any party in interest in a case under chapter 7, 11, or 13, a debtor 
who is an individual shall file with the court--
            ``(1) at the same time filed with the taxing authority, a 
        copy of each Federal income tax return required under 
        applicable law (or at the election of the debtor, a transcript 
        of such tax return) with respect to each tax year of the debtor 
        ending while the case is pending under such chapter;
            ``(2) at the same time filed with the taxing authority, 
        each Federal income tax return required under applicable law 
        (or at the election of the debtor, a transcript of such tax 
        return) that had not been filed with such authority as of the 
        date of the commencement of the case and that was subsequently 
        filed for any tax year of the debtor ending in the 3-year 
        period ending on the date of the commencement of the case;
            ``(3) a copy of each amendment to any Federal income tax 
        return or transcript filed with the court under paragraph (1) 
        or (2); and
            ``(4) in a case under chapter 13--
                    ``(A) on the date that is either 90 days after the 
                end of such tax year or 1 year after the date of the 
                commencement of the case, whichever is later, if a plan 
                is not confirmed before such later date; and
                    ``(B) annually after the plan is confirmed and 
                until the case is closed, not later than the date that 
                is 45 days before the anniversary of the confirmation 
                of such plan;
        a statement, under penalty of perjury, of the income and 
        expenditures of the debtor during the tax year of the debtor 
        most recently concluded before such statement is filed under 
        this paragraph, and of the monthly income of the debtor, that 
        shows how income, expenditures, and monthly income are 
        calculated.
    ``(g)(1) A statement referred to in subsection (f)(4) shall 
disclose--
            ``(A) the amount and sources of the income of the debtor;
            ``(B) the identity of any person responsible with the 
        debtor for the support of any dependent of the debtor; and
            ``(C) the identity of any person 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 subsections (e)(2)(A) and (f) shall be 
available to the United States trustee (or the bankruptcy 
administrator, if any), the trustee, and any party in interest for 
inspection and copying, subject to the requirements of subsection (h).
    ``(h)(1) Not later than 180 days after the date of the enactment of 
the Bankruptcy Abuse Prevention and Consumer Protection Act of 2003, 
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 540 days after the date of enactment of the 
Bankruptcy Abuse Prevention and Consumer Protection Act of 2003, the 
Director of the Administrative Office of the United States Courts shall 
prepare and submit to the President pro tempore of the Senate and the 
Speaker of the House of Representatives a report that--
            ``(A) assesses the effectiveness of the procedures 
        established under paragraph (1); and
            ``(B) if appropriate, includes proposed legislation to--
                    ``(i) further protect the confidentiality of tax 
                information; and
                    ``(ii) provide penalties for the improper use by 
                any person of the tax information required to be 
                provided under this section.
    ``(i) If requested by the United States trustee or by the trustee, 
the debtor shall provide--
            ``(1) a document that establishes the identity of the 
        debtor, including a driver's license, passport, or other 
        document that contains a photograph of the debtor; or
            ``(2) such other personal identifying information relating 
        to the debtor that establishes the identity of the debtor.''.

SEC. 316. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR PROVIDE 
              REQUIRED INFORMATION.

    Section 521 of title 11, United States Code, as amended by sections 
106, 225, 305, and 315, is amended by adding at the end the following:
    ``(j)(1) Subject to paragraphs (2) and (4) and notwithstanding 
section 707(a), if an individual debtor in a voluntary case under 
chapter 7 or 13 fails to file all of the information required under 
subsection (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) Subject to paragraph (4) and with respect to a case described 
in paragraph (1), any party in interest may request the court to enter 
an order dismissing the case. If requested, the court shall enter an 
order of dismissal not later than 5 days after such request.
    ``(3) Subject to paragraph (4) and 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 45 days to file the information 
required under subsection (a)(1) if the court finds justification for 
extending the period for the filing.
    ``(4) Notwithstanding any other provision of this subsection, on 
the motion of the trustee filed before the expiration of the applicable 
period of time specified in paragraph (1), (2), or (3), and after 
notice and a hearing, the court may decline to dismiss the case if the 
court finds that the debtor attempted in good faith to file all the 
information required by subsection (a)(1)(B)(iv) and that the best 
interests of creditors would be served by administration of the 
case.''.

SEC. 317. ADEQUATE TIME TO PREPARE FOR HEARING ON CONFIRMATION OF THE 
              PLAN.

    Section 1324 of title 11, United States Code, 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) The hearing on confirmation of the plan may be held not 
earlier than 20 days and not later than 45 days after the date of the 
meeting of creditors under section 341(a), unless the court determines 
that it would be in the best interests of the creditors and the estate 
to hold such hearing at an earlier date and there is no objection to 
such earlier date.''.

SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION IN CERTAIN CASES.

    Title 11, United States Code, is amended--
            (1) by amending section 1322(d) to read as follows:
    ``(d)(1) If the current monthly income of the debtor and the 
debtor's spouse combined, when multiplied by 12, is not less than--
            ``(A) in the case of a debtor in a household of 1 person, 
        the median family income of the applicable State for 1 earner;
            ``(B) in the case of a debtor in a household of 2, 3, or 4 
        individuals, the highest median family income of the applicable 
        State for a family of the same number or fewer individuals; or
            ``(C) in the case of a debtor in a household exceeding 4 
        individuals, the highest median family income of the applicable 
        State for a family of 4 or fewer individuals, plus $525 per 
        month for each individual in excess of 4,
the plan may not provide for payments over a period that is longer than 
5 years.
    ``(2) If the current monthly income of the debtor and the debtor's 
spouse combined, when multiplied by 12, is less than--
            ``(A) in the case of a debtor in a household of 1 person, 
        the median family income of the applicable State for 1 earner 
        last;
            ``(B) in the case of a debtor in a household of 2, 3, or 4 
        individuals, the highest median family income of the applicable 
        State for a family of the same number or fewer individuals; or
            ``(C) in the case of a debtor in a household exceeding 4 
        individuals, the highest median family income of the applicable 
        State for a family of 4 or fewer individuals , plus $525 per 
        month for each individual in excess of 4,
the plan may not provide for payments over a period that is longer than 
3 years, unless the court, for cause, approves a longer period, but the 
court may not approve a period that is longer than 5 years.'';
            (2) in section 1325(b)(1)(B), by striking ``three-year 
        period'' and inserting ``applicable commitment period''; and
            (3) in section 1325(b), as amended by section 102, by 
        adding at the end the following:
    ``(4) For purposes of this subsection, the `applicable commitment 
period'--
            ``(A) subject to subparagraph (B), shall be--
                    ``(i) 3 years; or
                    ``(ii) not less than 5 years, if the current 
                monthly income of the debtor and the debtor's spouse 
                combined, when multiplied by 12, is not less than--
                            ``(I) in the case of a debtor in a 
                        household of 1 person, the median family income 
                        of the applicable State for 1 earner;
                            ``(II) in the case of a debtor in a 
                        household of 2, 3, or 4 individuals, the 
                        highest median family income of the applicable 
                        State for a family of the same number or fewer 
                        individuals; or
                            ``(III) in the case of a debtor in a 
                        household exceeding 4 individuals, the highest 
                        median family income of the applicable State 
                        for a family of 4 or fewer individuals , plus 
                        $525 per month for each individual in excess of 
                        4; and
            ``(B) may be less than 3 or 5 years, whichever is 
        applicable under subparagraph (A), but only if the plan 
        provides for payment in full of all allowed unsecured claims 
        over a shorter period.''; and
            (4) in section 1329(c), by striking ``three years'' and 
        inserting ``the applicable commitment period under section 
        1325(b)(1)(B)''.

SEC. 319. SENSE OF CONGRESS REGARDING EXPANSION OF RULE 9011 OF THE 
              FEDERAL RULES OF BANKRUPTCY PROCEDURE.

    It is the sense of Congress that rule 9011 of the Federal Rules of 
Bankruptcy Procedure (11 U.S.C. App.) should be modified to include a 
requirement that all documents (including schedules), signed and 
unsigned, submitted to the court or to a trustee by debtors who 
represent themselves and debtors who are represented by attorneys be 
submitted only after the debtors or the debtors' attorneys have made 
reasonable inquiry to verify that the information contained in such 
documents is--
            (1) well grounded in fact; and
            (2) warranted by existing law or a good faith argument for 
        the extension, modification, or reversal of existing law.

SEC. 320. 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 a case under chapter 7, 11, 
or 13 in which the debtor is an individual, 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, as 
                described in findings made by the court.''.

SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.

    (a) Property of the Estate.--
            (1) In general.--Subchapter I of chapter 11 of title 11, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 1115. Property of the estate
    ``(a) In a case concerning a debtor who is an individual, property 
of the estate includes, in addition to the property specified in 
section 541--
            ``(1) all property of the kind specified in section 541 
        that the debtor acquires after the commencement of the case but 
        before the case is closed, dismissed, or converted to a case 
        under chapter 7, 12, or 13, whichever occurs first; and
            ``(2) earnings from services performed by the debtor after 
        the commencement of the case but before the case is closed, 
        dismissed, or converted to a case under chapter 7, 12, or 13, 
        whichever occurs first.''.
    ``(b) Except as provided in section 1104 or a confirmed plan or 
order confirming a plan, the debtor shall remain in possession of all 
property of the estate.''.
            (2) Clerical amendment.--The table of sections for 
        subchapter I of chapter 11 of title 11, United States Code, is 
        amended by adding at the end the following:

``1115. Property of the estate.''.
    (b) Contents of Plan.--Section 1123(a) of title 11, United States 
Code, is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(8) in a case in which the debtor is an individual, 
        provide for the payment to creditors under the plan of all or 
        such portion of earnings from personal services performed by 
        the debtor after the commencement of the case or other future 
        income of the debtor as is necessary for the execution of the 
        plan.''.
    (c) Confirmation of Plan.--
            (1) Requirements relating to value of property.--Section 
        1129(a) of title 11, United States Code, as amended by section 
        213, is amended by adding at the end the following:
            ``(15) In a case in which the debtor is an individual and 
        in which the holder of an allowed unsecured claim objects to 
        the confirmation of the plan--
                    ``(A) the value, as of the effective date of the 
                plan, of the property to be distributed under the plan 
                on account of such claim is not less than the amount of 
                such claim; or
                    ``(B) the value of the property to be distributed 
                under the plan is not less than the projected 
                disposable income of the debtor (as defined in section 
                1325(b)(2)) to be received during the 5-year period 
                beginning on the date that the first payment is due 
                under the plan, or during the period for which the plan 
                provides payments, whichever is longer.''.
            (2) Requirement relating to interests in property.--Section 
        1129(b)(2)(B)(ii) of title 11, United States Code, is amended 
        by inserting before the period at the end the following: ``, 
        except that in a case in which the debtor is an individual, the 
        debtor may retain property included in the estate under section 
        1115, subject to the requirements of subsection (a)(14) of this 
        section.''.
    (d) Effect of Confirmation.--Section 1141(d) of title 11, United 
States Code, is amended--
            (1) in paragraph (2), by striking ``The confirmation of a 
        plan does not discharge an individual debtor'' and inserting 
        ``A discharge under this chapter does not discharge a debtor 
        who is an individual''; and
            (2) by adding at the end the following:
    ``(5) In a case in which the debtor is an individual--
            ``(A) unless after notice and a hearing the court orders 
        otherwise for cause, confirmation of the plan does not 
        discharge any debt provided for in the plan until the court 
        grants a discharge on completion of all payments under the 
        plan;
            ``(B) at any time after the confirmation of the plan, and 
        after notice and a hearing, the court may not grant a discharge 
        to the debtor who has not completed payments under the plan 
        unless--
                    ``(i) for each allowed unsecured claim, the value, 
                as of the effective date of the plan, of property 
                actually distributed under the plan on account of that 
                claim is not less than the amount that would have been 
                paid on such claim if the estate of the debtor had been 
                liquidated under chapter 7 of this title on such date; 
                and
                    ``(ii) modification of the plan under section 1127 
                of this title is not practicable; and''.
    (e) Modification of Plan.--Section 1127 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(e) If the debtor is an individual, the plan may be modified at 
any time after confirmation of the plan but before the completion of 
payments under the plan, whether or not the plan has been substantially 
consummated, upon request of the debtor, the trustee, the United States 
trustee, or the holder of an allowed unsecured claim, to--
            ``(1) increase or reduce the amount of payments on claims 
        of a particular class provided for by the plan;
            ``(2) extend or reduce the time period for such payments; 
        or
            ``(3) alter the amount of the distribution to a creditor 
        whose claim is provided for by the plan to the extent necessary 
        to take account of any payment of such claim made other than 
        under the plan.
    ``(f)(1) Sections 1121 through 1128 of this title and the 
requirements of section 1129 of this title apply to any modification 
under subsection (a).
    ``(2) The plan, as modified, shall become the plan only after there 
has been disclosure under section 1125 as the court may direct, notice 
and a hearing, and such modification is approved.''.

SEC. 322. LIMITATIONS ON HOMESTEAD EXEMPTION.

    (a) Exemptions.--Section 522 of title 11, United States Code, as 
amended by sections 224 and 308, is amended by adding at the end the 
following:
    ``(p)(1)Except as provided in paragraph (2) of this subsection and 
sections 544 and 548 of this title, as a result of electing under 
subsection (b)(3)(A) to exempt property under State or local law, a 
debtor may not exempt any amount of interest that was acquired by the 
debtor during the 1215-day period preceding the filing of the petition 
which exceeds in the aggregate $125,000 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;
            ``(C) a burial plot for the debtor or a dependent of the 
        debtor; or
            ``(D) real or personal property that the debtor or 
        dependent of the debtor claims as a homestead.
    ``(2)(A) The limitation under paragraph (1) shall not apply to an 
exemption claimed under subsection (b)(3)(A) by a family farmer for the 
principal residence of that farmer.
    ``(B) For purposes of paragraph (1), any amount of such interest 
does not include any interest transferred from a debtor's previous 
principal residence (which was acquired prior to the beginning of such 
1215-day period) into the debtor's current principal residence, if the 
debtor's previous and current residences are located in the same State.
    ``(q)(1) As a result of electing under subsection (b)(3)(A) to 
exempt property under State or local law, a debtor may not exempt any 
amount of an interest in property described in subparagraphs (A), (B), 
and (C) of subsection (p) which exceeds in the aggregate $125,000 if--
            ``(A) the court determines, after notice and a hearing, 
        that the debtor has been convicted of a felony (as defined in 
        section 3156 of title 18), which under the circumstances, 
        demonstrates that the filing of the case was an abuse of the 
        provisions of this title; or
            ``(B) the debtor owes a debt arising from--
                    ``(i) any violation of the Federal securities laws 
                (as defined in section 3(a)(47) of the Securities 
                Exchange Act of 1934), any State securities laws, or 
                any regulation or order issued under Federal securities 
                laws or State securities laws;
                    ``(ii) fraud, deceit, or manipulation in a 
                fiduciary capacity or in connection with the purchase 
                or sale of any security registered under section 12 or 
                15(d) of the Securities Exchange Act of 1934 or under 
                section 6 of the Securities Act of 1933;
                    ``(iii) any civil remedy under section 1964 of 
                title 18, United States Code; or
                    ``(iv) any criminal act, intentional tort, or 
                willful or reckless misconduct that caused serious 
                physical injury or death to another individual in the 
                preceding 5 years.
    ``(2) Paragraph (1) shall not apply to the extent the amount of an 
interest in property described in subparagraphs (A), (B), and (C) of 
subsection (p) is reasonably necessary for the support of the debtor 
and any dependent of the debtor.''.
    (b) Adjustment of Dollar Amounts.--Paragraphs (1) and (2) of 
section 104(b) of title 11, United States Code, as amended by section 
224, are amended by inserting ``522(p), 522(q),'' after ``522(n),''.

SEC. 323. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICIPANT CONTRIBUTIONS AND 
              OTHER PROPERTY FROM THE ESTATE.

    Section 541(b) of title 11, United States Code, as amended by 
section 225, is amended by adding at the end the following:
            ``(7) any amount--
                    ``(A) withheld by an employer from the wages of 
                employees for payment as contributions to--
                            ``(i) an employee benefit plan subject to 
                        title I of the Employee Retirement Income 
                        Security Act of 1974 or under an employee 
                        benefit plan which is a governmental plan under 
                        section 414(d) of the Internal Revenue Code of 
                        1986, a deferred compensation plan under 
                        section 457 of the Internal Revenue Code of 
                        1986, or a tax-deferred annuity under section 
                        403(b) of the Internal Revenue Code of 1986, 
                        except that such amount under this clause shall 
                        not constitute disposable income, as defined in 
                        section 1325(b)(2) of this title; or
                            ``(ii) a health insurance plan regulated by 
                        State law whether or not subject to such title; 
                        or
                    ``(B) received by the employer from employees for 
                payment as contributions to--
                            ``(i) an employee benefit plan subject to 
                        title I of the Employee Retirement Income 
                        Security Act of 1974 or under an employee 
                        benefit plan which is a governmental plan under 
                        section 414(d) of the Internal Revenue Code of 
                        1986, a deferred compensation plan under 
                        section 457 of the Internal Revenue Code of 
                        1986, or a tax-deferred annuity under section 
                        403(b) of the Internal Revenue Code of 1986, 
                        except that such amount under this clause shall 
                        not constitute disposable income, as defined in 
                        section 1325(b)(2) of this title; or
                            ``(ii) a health insurance plan regulated by 
                        State law whether or not subject to such 
                        title;''.

SEC. 324. EXCLUSIVE JURISDICTION IN MATTERS INVOLVING BANKRUPTCY 
              PROFESSIONALS.

    (a) In General.--Section 1334 of title 28, United States Code, is 
amended--
            (1) in subsection (b), by striking ``Notwithstanding'' and 
        inserting ``Except as provided in subsection (e)(2), and 
        notwithstanding''; and
            (2) by striking subsection (e) and inserting the following:
    ``(e) The district court in which a case under title 11 is 
commenced or is pending shall have exclusive jurisdiction--
            ``(1) of all the property, wherever located, of the debtor 
        as of the date of commencement of such case, and of property of 
        the estate; and
            ``(2) over all claims or causes of action that involve 
        construction of section 327 of title 11, United States Code, or 
        rules relating to disclosure requirements under section 327.''.
    (b) Applicability.--This section shall only apply to cases filed 
after the date of enactment of this Act.

SEC. 325. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.

    (a) Actions Under Chapter 7 or 13 of Title 11, United States 
Code.--Section 1930(a) of title 28, United States Code, is amended by 
striking paragraph (1) and inserting the following:
            ``(1) For a case commenced--
                    ``(A) under chapter 7 of title 11, $160; or
                    ``(B) under chapter 13 of title 11, $150.''.
    (b) United States Trustee System Fund.--Section 589a(b) of title 
28, United States Code, is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1)(A) 40.63 percent of the fees collected under section 
        1930(a)(1)(A) of this title in cases commenced under chapter 7 
        of title 11; and
            ``(B) 70.00 percent of the fees collected under section 
        1930(a)(1)(B) of this title in cases commenced under chapter 13 
        of title 11;'';
            (2) in paragraph (2), by striking ``one-half'' and 
        inserting ``three-fourths''; and
            (3) in paragraph (4), by striking ``one-half'' and 
        inserting ``100 percent''.
    (c) Collection and Deposit of Miscellaneous Bankruptcy Fees.--
Section 406(b) of the Judiciary Appropriations Act, 1990 (28 U.S.C. 
1931 note) is amended by striking ``pursuant to 28 U.S.C. section 
1930(b) and 33.87 per centum of the fees hereafter collected under 28 
U.S.C. section 1930(a)(1) and 25 percent of the fees hereafter 
collected under 28 U.S.C. section 1930(a)(3) shall be deposited as 
offsetting receipts to the fund established under 28 U.S.C. section 
1931'' and inserting ``under section 1930(b) of title 28, United States 
Code, and 31.25 percent of the fees collected under section 
1930(a)(1)(A) of that title, 30.00 percent of the fees collected under 
section 1930(a)(1)(B) of that title, and 25 percent of the fees 
collected under section 1930(a)(3) of that title shall be deposited as 
offsetting receipts to the fund established under section 1931 of that 
title''.

SEC. 326. SHARING OF COMPENSATION.

    Section 504 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(c) This section shall not apply with respect to sharing, or 
agreeing to share, compensation with a bona fide public service 
attorney referral program that operates in accordance with non-Federal 
law regulating attorney referral services and with rules of 
professional responsibility applicable to attorney acceptance of 
referrals.''.

SEC. 327. FAIR VALUATION OF COLLATERAL.

    Section 506(a) of title 11, United States Code, is amended by--
            (1) inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:
    ``(2) If the debtor is an individual in a case under chapter 7 or 
13, such value with respect to personal property securing an allowed 
claim shall be determined based on the replacement value of such 
property as of the date of filing the petition without deduction for 
costs of sale or marketing. With respect to property acquired for 
personal, family, or household purposes, replacement value shall mean 
the price a retail merchant would charge for property of that kind 
considering the age and condition of the property at the time value is 
determined.''.

SEC. 328. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

    (a) Executory Contracts and Unexpired Leases.--Section 365 of title 
11, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A), by striking the semicolon 
                at the end and inserting the following: ``other than a 
                default that is a breach of a provision relating to 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, except that if such default arises 
                from a failure to operate in accordance with a 
                nonresidential real property lease, then such default 
                shall be cured by performance at and after the time of 
                assumption in accordance with such lease, and pecuniary 
                losses resulting from such default shall be compensated 
                in accordance with the provisions of this paragraph;''; 
                and
                    (B) in paragraph (2)(D), by striking ``penalty rate 
                or provision'' and inserting ``penalty rate or penalty 
                provision'';
            (2) in subsection (c)--
                    (A) in paragraph (2), by inserting ``or'' at the 
                end;
                    (B) in paragraph (3), by striking ``; or'' at the 
                end and inserting a period; and
                    (C) by striking paragraph (4);
            (3) in subsection (d)--
                    (A) by striking paragraphs (5) through (9); and
                    (B) by redesignating paragraph (10) as paragraph 
                (5); and
            (4) in subsection (f)(1) by striking ``; except that'' and 
        all that follows through the end of the paragraph and inserting 
        a period.
    (b) Impairment of Claims or Interests.--Section 1124(2) of title 
11, United States Code, is amended--
            (1) in subparagraph (A), by inserting ``or of a kind that 
        section 365(b)(2) of this title expressly does not require to 
        be cured'' before the semicolon at the end;
            (2) in subparagraph (C), by striking ``and'' at the end;
            (3) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (4) by inserting after subparagraph (C) the following:
                    ``(D) if such claim or such interest arises from 
                any failure to perform a nonmonetary obligation, other 
                than a default arising from failure to operate a 
                nonresidential real property lease subject to section 
                365(b)(1)(A), compensates the holder of such claim or 
                such interest (other than the debtor or an insider) for 
                any actual pecuniary loss incurred by such holder as a 
                result of such failure; and''.

SEC. 329. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

    Section 503(b)(1)(A) of title 11, United States Code, is amended to 
read as follows:
    ``(A) the actual, necessary costs and expenses of preserving the 
estate including--
            ``(i) wages, salaries, or commissions for services rendered 
        after the commencement of the case; and
            ``(ii) wages and benefits awarded pursuant to a judicial 
        proceeding or a proceeding of the National Labor Relations 
        Board as back pay attributable to any period of time occurring 
        after commencement of the case under this title, as a result of 
        a violation of Federal or State law by the debtor, without 
        regard to the time of the occurrence of unlawful conduct on 
        which such award is based or to whether any services were 
        rendered, if the court determines that payment of wages and 
        benefits by reason of the operation of this clause will not 
        substantially increase the probability of layoff or termination 
        of current employees, or of nonpayment of domestic support 
        obligations, during the case under this title;''.

SEC. 330. DELAY OF DISCHARGE DURING PENDENCY OF CERTAIN PROCEEDINGS.

    (a) Chapter 7.--Section 727(a) of title 11, United States Code, as 
amended by section 106, is amended--
            (1) in paragraph (10), by striking ``or'' at the end;
            (2) in paragraph (11) by striking the period at the end and 
        inserting ``; or''; and
            (3) by inserting after paragraph (11) the following:
            ``(12) the court after notice and a hearing held not more 
        than 10 days before the date of entry of the order granting the 
        discharge finds that there is reasonable cause to believe 
        that--
                    ``(A) section 522(q)(1) may be applicable to the 
                debtor; and
                    ``(B) there is pending any proceeding in which the 
                debtor may be found guilty of a felony of the kind 
                described in section 522(q)(1)(A) or liable for a debt 
                of the kind described in section 522(q)(1)(B); or''.
    (b) Chapter 11.--Section 1141(d) of title 11, United States Code, 
as amended by section 321, is amended by adding at the end the 
following:
                    ``(C) unless after notice and a hearing held not 
                more than 10 days before the date of entry of the order 
                granting the discharge, the court finds that there is 
                no reasonable cause to believe that--
                            ``(i) section 522(q)(1) may be applicable 
                        to the debtor; and
                            ``(ii) there is pending any proceeding in 
                        which the debtor may be found guilty of a 
                        felony of the kind described in section 
                        522(q)(1)(A) or liable for a debt of the kind 
                        described in section 522(q)(1)(B).''.
    (c) Chapter 12.--Section 1228 of title 11, United States Code, is 
amended--
            (1) in subsection (a) by striking ``As'' and inserting 
        ``Subject to subsection (d), as'',
            (2) in subsection (b) by striking ``At'' and inserting 
        ``Subject to subsection (d), at'', and
            (3) by adding at the end the following:
    ``(f) The court may not grant a discharge under this chapter unless 
the court after notice and a hearing held not more than 10 days before 
the date of entry of the order granting the discharge finds that there 
is no reasonable cause to believe that--
            ``(1) section 522(q)(1) may be applicable to the debtor; 
        and
            ``(2) there is pending any proceeding in which the debtor 
        may be found guilty of a felony of the kind described in 
        section 522(q)(1)(A) or liable for a debt of the kind described 
        in section 522(q)(1)(B).''.
    (d) Chapter 13.--Section 1328 of title 11, United States Code, as 
amended by section 106, is amended--
            (1) in subsection (a) by striking ``As'' and inserting 
        ``Subject to subsection (d), as'',
            (2) in subsection (b) by striking ``At'' and inserting 
        ``Subject to subsection (d), at'', and
            (3) by adding at the end the following:
    ``(h) The court may not grant a discharge under this chapter unless 
the court after notice and a hearing held not more than 10 days before 
the date of entry of the order granting the discharge finds that there 
is no reasonable cause to believe that--
            ``(1) section 522(q)(1) may be applicable to the debtor; 
        and
            ``(2) there is pending any proceeding in which the debtor 
        may be found guilty of a felony of the kind described in 
        section 522(q)(1)(A) or liable for a debt of the kind described 
        in section 522(q)(1)(B).''.

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

SEC. 401. ADEQUATE PROTECTION FOR INVESTORS.

    (a) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (48) the following:
            ``(48A) `securities self regulatory organization' means 
        either a securities association registered with the Securities 
        and Exchange Commission under section 15A of the Securities 
        Exchange Act of 1934 or a national securities exchange 
        registered with the Securities and Exchange Commission under 
        section 6 of the Securities Exchange Act of 1934;''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by sections 224, 303, and 311, is amended by inserting 
after paragraph (24) the following:
            ``(25) under subsection (a), of--
                    ``(A) the commencement or continuation of an 
                investigation or action by a securities self regulatory 
                organization to enforce such organization's regulatory 
                power;
                    ``(B) the enforcement of an order or decision, 
                other than for monetary sanctions, obtained in an 
                action by the securities self regulatory organization 
                to enforce such organization's regulatory power; or
                    ``(C) any act taken by the securities self 
                regulatory organization to delist, delete, or refuse to 
                permit quotation of any stock that does not meet 
                applicable regulatory requirements;''.

SEC. 402. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

    Section 341 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) Notwithstanding subsections (a) and (b), the court, on the 
request of a party in interest and after notice and a hearing, for 
cause may order that the United States trustee not convene a meeting of 
creditors or equity security holders if the debtor has filed a plan as 
to which the debtor solicited acceptances prior to the commencement of 
the case.''.

SEC. 403. PROTECTION OF REFINANCE OF SECURITY INTEREST.

    Subparagraphs (A), (B), and (C) of section 547(e)(2) of title 11, 
United States Code, are each amended by striking ``10'' each place it 
appears and inserting ``30''.

SEC. 404. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

    (a) In General.--Section 365(d)(4) of title 11, United States Code, 
is amended to read as follows:
    ``(4)(A) Subject to subparagraph (B), an unexpired lease of 
nonresidential real property under which the debtor is the lessee shall 
be deemed rejected, and the trustee shall immediately surrender that 
nonresidential real property to the lessor, if the trustee does not 
assume or reject the unexpired lease by the earlier of--
            ``(i) the date that is 120 days after the date of the order 
        for relief; or
            ``(ii) the date of the entry of an order confirming a plan.
    ``(B)(i) The court may extend the period determined under 
subparagraph (A), prior to the expiration of the 120-day period, for 90 
days on the motion of the trustee or lessor for cause.
    ``(ii) If the court grants an extension under clause (i), the court 
may grant a subsequent extension only upon prior written consent of the 
lessor in each instance.''.
    (b) Exception.--Section 365(f)(1) of title 11, United States Code, 
is amended by striking ``subsection'' the first place it appears and 
inserting ``subsections (b) and''.

SEC. 405. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

    (a) Appointment.--Section 1102(a) of title 11, United States Code, 
is amended by adding at the end the following:
    ``(4) On request of a party in interest and after notice and a 
hearing, the court may order the United States trustee to change the 
membership of a committee appointed under this subsection, if the court 
determines that the change is necessary to ensure adequate 
representation of creditors or equity security holders. The court may 
order the United States trustee to increase the number of members of a 
committee to include a creditor that is a small business concern (as 
described in section 3(a)(1) of the Small Business Act , if the court 
determines that the creditor holds claims (of the kind represented by 
the committee) the aggregate amount of which, in comparison to the 
annual gross revenue of that creditor, is disproportionately large.''.
    (b) Information.--Section 1102(b) of title 11, United States Code, 
is amended by adding at the end the following:
    ``(3) A committee appointed under subsection (a) shall--
            ``(A) provide access to information for creditors who--
                    ``(i) hold claims of the kind represented by that 
                committee; and
                    ``(ii) are not appointed to the committee;
            ``(B) solicit and receive comments from the creditors 
        described in subparagraph (A); and
            ``(C) be subject to a court order that compels any 
        additional report or disclosure to be made to the creditors 
        described in subparagraph (A).''.

SEC. 406. AMENDMENT TO SECTION 546 OF TITLE 11, UNITED STATES CODE.

    Section 546 of title 11, United States Code, is amended--
            (1) by redesignating the second subsection (g) (as added by 
        section 222(a) of Public Law 103-394) as subsection (i);
            (2) in subsection (i), as so redesignated, by inserting 
        ``and subject to the prior rights of holders of security 
        interests in such goods or the proceeds of such goods'' after 
        ``consent of a creditor''; and
            (3) by adding at the end the following:
    ``(j)(1) Notwithstanding paragraphs (2) and (3) of section 545, the 
trustee may not avoid a warehouseman's lien for storage, 
transportation, or other costs incidental to the storage and handling 
of goods.
    ``(2) The prohibition under paragraph (1) shall be applied in a 
manner consistent with any State statute applicable to such lien that 
is similar to section 7-209 of the Uniform Commercial Code, as in 
effect on the date of enactment of the Bankruptcy Abuse Prevention and 
Consumer Protection Act of 2003, or any successor to such section 7-
209.''.

SEC. 407. AMENDMENTS TO SECTION 330(A) OF TITLE 11, UNITED STATES CODE.

    Section 330(a) of title 11, United States Code, is amended--
            (1) in paragraph (3)--
                    (A) by striking ``(A) In'' and inserting ``In''; 
                and
                    (B) by inserting ``to an examiner, trustee under 
                chapter 11, or professional person'' after ``awarded''; 
                and
            (2) by adding at the end the following:
    ``(7) In determining the amount of reasonable compensation to be 
awarded to a trustee, the court shall treat such compensation as a 
commission, based on section 326 of this title.''.

SEC. 408. POSTPETITION DISCLOSURE AND SOLICITATION.

    Section 1125 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(g) Notwithstanding subsection (b), an acceptance or rejection of 
the plan may be solicited from a holder of a claim or interest if such 
solicitation complies with applicable nonbankruptcy law and if such 
holder was solicited before the commencement of the case in a manner 
complying with applicable nonbankruptcy law.''.

SEC. 409. PREFERENCES.

    Section 547(c) of title 11, United States Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) to the extent that such transfer was in payment of a 
        debt incurred by the debtor in the ordinary course of business 
        or financial affairs of the debtor and the transferee, and such 
        transfer was--
                    ``(A) made in the ordinary course of business or 
                financial affairs of the debtor and the transferee; or
                    ``(B) made according to ordinary business terms;'';
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(9) if, in a case filed by a debtor whose debts are not 
        primarily consumer debts, the aggregate value of all property 
        that constitutes or is affected by such transfer is less than 
        $5,000.''.

SEC. 410. VENUE OF CERTAIN PROCEEDINGS.

    Section 1409(b) of title 28, United States Code, is amended by 
inserting ``, or a nonconsumer debt against a noninsider of less than 
$10,000,'' after ``$5,000''.

SEC. 411. PERIOD FOR FILING PLAN UNDER CHAPTER 11.

    Section 1121(d) of title 11, United States Code, is amended--
            (1) by striking ``On'' and inserting ``(1) Subject to 
        paragraph (2), on''; and
            (2) by adding at the end the following:
    ``(2)(A) The 120-day period specified in paragraph (1) may not be 
extended beyond a date that is 18 months after the date of the order 
for relief under this chapter.
    ``(B) The 180-day period specified in paragraph (1) may not be 
extended beyond a date that is 20 months after the date of the order 
for relief under this chapter.''.

SEC. 412. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

    Section 523(a)(16) of title 11, United States Code, is amended--
            (1) by striking ``dwelling'' the first place it appears;
            (2) by striking ``ownership or'' and inserting 
        ``ownership,'';
            (3) by striking ``housing'' the first place it appears; and
            (4) by striking ``but only'' and all that follows through 
        ``such period,'' and inserting ``or a lot in a homeowners 
        association, for as long as the debtor or the trustee has a 
        legal, equitable, or possessory ownership interest in such 
        unit, such corporation, or such lot,''.

SEC. 413. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.

    Section 341(c) of title 11, United States Code, is amended by 
inserting at the end 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 1 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. 414. DEFINITION OF DISINTERESTED PERSON.

    Section 101(14) of title 11, United States Code, is amended to read 
as follows:
            ``(14) `disinterested person' means a person that--
                    ``(A) is not a creditor, an equity security holder, 
                or an insider;
                    ``(B) is not and was not, within 2 years before the 
                date of the filing of the petition, a director, 
                officer, or employee of the debtor; and
                    ``(C) does not have an interest materially adverse 
                to the interest of the estate or of any class of 
                creditors or equity security holders, by reason of any 
                direct or indirect relationship to, connection with, or 
                interest in, the debtor, or for any other reason;''.

SEC. 415. FACTORS FOR COMPENSATION OF PROFESSIONAL PERSONS.

    Section 330(a)(3) of title 11, United States Code, is amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) by redesignating subparagraph (E) as subparagraph (F); 
        and
            (3) by inserting after subparagraph (D) the following:
            ``(E) with respect to a professional person, whether the 
        person is board certified or otherwise has demonstrated skill 
        and experience in the bankruptcy field; and''.

SEC. 416. 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.
    ``(B) Upon the filing of a report under subparagraph (A)--
            ``(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.
    ``(C) The court shall resolve any dispute arising out of an 
election described in subparagraph (A).''.

SEC. 417. UTILITY SERVICE.

    Section 366 of title 11, United States Code, is amended--
            (1) in subsection (a), by striking ``subsection (b)'' and 
        inserting ``subsections (b) and (c)''; and
            (2) by adding at the end the following:
    ``(c)(1)(A) For purposes of this subsection, the term `assurance of 
payment' means--
            ``(i) a cash deposit;
            ``(ii) a letter of credit;
            ``(iii) a certificate of deposit;
            ``(iv) a surety bond;
            ``(v) a prepayment of utility consumption; or
            ``(vi) another form of security that is mutually agreed on 
        between the utility and the debtor or the trustee.
``(B) For purposes of this subsection an administrative expense 
priority shall not constitute an assurance of payment.
    ``(2) Subject to paragraphs (3) and (4), with respect to a case 
filed under chapter 11, a utility referred to in subsection (a) may 
alter, refuse, or discontinue utility service, if during the 30-day 
period beginning on the date of filing of the petition, the utility 
does not receive from the debtor or the trustee adequate assurance of 
payment for utility service that is satisfactory to the utility.
    ``(3)(A) On request of a party in interest and after notice and a 
hearing, the court may order modification of the amount of an assurance 
of payment under paragraph (2).
    ``(B) In making a determination under this paragraph whether an 
assurance of payment is adequate, the court may not consider--
            ``(i) the absence of security before the date of filing of 
        the petition;
            ``(ii) the payment by the debtor of charges for utility 
        service in a timely manner before the date of filing of the 
        petition; or
            ``(iii) the availability of an administrative expense 
        priority.
    ``(4) Notwithstanding any other provision of law, with respect to a 
case subject to this subsection, a utility may recover or set off 
against a security deposit provided to the utility by the debtor before 
the date of filing of the petition without notice or order of the 
court.''.

SEC. 418. BANKRUPTCY FEES.

    Section 1930 of title 28, United States Code, is amended--
            (1) in subsection (a), by striking ``Notwithstanding 
        section 1915 of this title, the'' and inserting ``The''; and
            (2) by adding at the end the following:
    ``(f)(1) Under the procedures prescribed by the Judicial Conference 
of the United States, the district court or the bankruptcy court may 
waive the filing fee in a case under chapter 7 of title 11 for an 
individual if the court determines that such individual has income less 
than 150 percent of the income official poverty line (as defined by the 
Office of Management and Budget, and revised annually in accordance 
with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) 
applicable to a family of the size involved and is unable to pay that 
fee in installments. For purposes of this paragraph, the term `filing 
fee' means the filing required by subsection (a), or any other fee 
prescribed by the Judicial Conference under subsections (b) and (c) 
that is payable to the clerk upon the commencement of a case under 
chapter 7.
    ``(2) The district court or the bankruptcy court may waive for such 
debtors other fees prescribed under subsections (b) and (c).
    ``(3) This subsection does not restrict the district court or the 
bankruptcy court from waiving, in accordance with Judicial Conference 
policy, fees prescribed under this section for other debtors and 
creditors.''.

SEC. 419. MORE COMPLETE INFORMATION REGARDING ASSETS OF THE ESTATE.

    (a) In General.--
            (1) Disclosure.--The Advisory Committee on Bankruptcy Rules 
        of the Judicial Conference of the United States, after 
        consideration of the views of the Director of the Executive 
        Office for United States Trustees, shall propose for adoption 
        amended Federal Rules of Bankruptcy Procedure and Official 
        Bankruptcy Forms directing debtors under chapter 11 of title 
        11, United States Code, to disclose the information described 
        in paragraph (2) by filing and serving periodic financial and 
        other reports designed to provide such information.
            (2) Information.--The information referred to in paragraph 
        (1) is the value, operations, and profitability of any closely 
        held corporation, partnership, or of any other entity in which 
        the debtor holds a substantial or controlling interest.
    (b) Purpose.--The purpose of the rules and reports under subsection 
(a) shall be to assist parties in interest taking steps to ensure that 
the debtor's interest in any entity referred to in subsection (a)(2) is 
used for the payment of allowed claims against debtor.

            Subtitle B--Small Business Bankruptcy Provisions

SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

    Section 1125 of title 11, United States Code, is amended--
            (1) in subsection (a)(1), by inserting before the semicolon 
        ``and in determining whether a disclosure statement provides 
        adequate information, the court shall consider the complexity 
        of the case, the benefit of additional information to creditors 
        and other parties in interest, and the cost of providing 
        additional information''; and
            (2) by striking subsection (f), and inserting the 
        following:
    ``(f) Notwithstanding subsection (b), in a small business case--
            ``(1) the court may determine that the plan itself provides 
        adequate information and that a separate disclosure statement 
        is not necessary;
            ``(2) the court may approve a disclosure statement 
        submitted on standard forms approved by the court or adopted 
        under section 2075 of title 28; and
            ``(3)(A) the court may conditionally approve a disclosure 
        statement subject to final approval after notice and a hearing;
            ``(B) acceptances and rejections of a plan may be solicited 
        based on a conditionally approved disclosure statement if the 
        debtor provides adequate information to each holder of a claim 
        or interest that is solicited, but a conditionally approved 
        disclosure statement shall be mailed not later than 20 days 
        before the date of the hearing on confirmation of the plan; and
            ``(C) the hearing on the disclosure statement may be 
        combined with the hearing on confirmation of a plan.''.

SEC. 432. DEFINITIONS.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended by striking paragraph (51C) and inserting the following:
            ``(51C) `small business case' means a case filed under 
        chapter 11 of this title in which the debtor is a small 
        business debtor;
            ``(51D) `small business debtor'--
                    ``(A) subject to subparagraph (B), means a person 
                engaged in commercial or business activities (including 
                any affiliate of such person that is also a debtor 
                under this title and excluding a person whose primary 
                activity is the business of owning or operating real 
                property or activities incidental thereto) that has 
                aggregate noncontingent, liquidated secured and 
                unsecured debts as of the date of the petition or the 
                order for relief in an amount not more than $2,000,000 
                (excluding debts owed to 1 or more affiliates or 
                insiders) for a case in which the United States trustee 
                has not appointed under section 1102(a)(1) a committee 
                of unsecured creditors or where the court has 
                determined that the committee of unsecured creditors is 
                not sufficiently active and representative to provide 
                effective oversight of the debtor; and
                    ``(B) does not include any member of a group of 
                affiliated debtors that has aggregate noncontingent 
                liquidated secured and unsecured debts in an amount 
                greater than $2,000,000 (excluding debt owed to 1 or 
                more affiliates or insiders);''.
    (b) Conforming Amendment.--Section 1102(a)(3) of title 11, United 
States Code, is amended by inserting ``debtor'' after ``small 
business''.
    (c) Adjustment of Dollar Amounts.--Section 104(b) of title 11, 
United States Code, as amended by section 226, is amended by inserting 
``101(51D),'' after ``101(3),'' each place it appears.

SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

    Within a reasonable period of time after the date of enactment of 
this Act, the Advisory Committee on Bankruptcy Rules of the Judicial 
Conference of the United States shall propose for adoption standard 
form disclosure statements and plans of reorganization for small 
business debtors (as defined in section 101 of title 11, United States 
Code, as amended by this Act), designed to achieve a practical balance 
between--
            (1) the reasonable needs of the courts, the United States 
        trustee, creditors, and other parties in interest for 
        reasonably complete information; and
            (2) economy and simplicity for debtors.

SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.

    (a) Reporting Required.--
            (1) In general.--Chapter 3 of title 11, United States Code, 
        is amended by inserting after section 307 the following:
``Sec. 308. Debtor reporting requirements
    ``(a) For purposes of this section, the term `profitability' means, 
with respect to a debtor, the amount of money that the debtor has 
earned or lost during current and recent fiscal periods.
    ``(b) A small business debtor shall file periodic financial and 
other reports containing information including--
            ``(1) the debtor's profitability;
            ``(2) reasonable approximations of the debtor's projected 
        cash receipts and cash disbursements over a reasonable period;
            ``(3) comparisons of actual cash receipts and disbursements 
        with projections in prior reports;
            ``(4)(A) whether the debtor is--
                    ``(i) in compliance in all material respects with 
                postpetition requirements imposed by this title and the 
                Federal Rules of Bankruptcy Procedure; and
                    ``(ii) timely filing tax returns and other required 
                government filings and paying taxes and other 
                administrative expenses when due;
            ``(B) if the debtor is not in compliance with the 
        requirements referred to in subparagraph (A)(i) or filing tax 
        returns and other required government filings and making the 
        payments referred to in subparagraph (A)(ii), what the failures 
        are and how, at what cost, and when the debtor intends to 
        remedy such failures; and
            ``(C) such other matters as are in the best interests of 
        the debtor and creditors, and in the public interest in fair 
        and efficient procedures under chapter 11 of this title.''.
            (2) Clerical amendment.--The table of sections for chapter 
        3 of title 11, United States Code, is amended by inserting 
        after the item relating to section 307 the following:

``308. Debtor reporting requirements.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect 60 days after the date on which rules are prescribed under 
section 2075 of title 28, United States Code, to establish forms to be 
used to comply with section 308 of title 11, United States Code, as 
added by subsection (a).

SEC. 435. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.

    (a) Proposal of Rules and Forms.--The Advisory Committee on 
Bankruptcy Rules of the Judicial Conference of the United States shall 
propose for adoption amended Federal Rules of Bankruptcy Procedure and 
Official Bankruptcy Forms to be used by small business debtors to file 
periodic financial and other reports containing information, including 
information relating to--
            (1) the debtor's profitability;
            (2) the debtor's cash receipts and disbursements; and
            (3) whether the debtor is timely filing tax returns and 
        paying taxes and other administrative expenses when due.
    (b) Purpose.--The rules and forms proposed under subsection (a) 
shall be designed to achieve a practical balance among--
            (1) the reasonable needs of the bankruptcy court, the 
        United States trustee, creditors, and other parties in interest 
        for reasonably complete information;
            (2) the small business debtor's interest that required 
        reports be easy and inexpensive to complete; and
            (3) the interest of all parties that the required reports 
        help the small business debtor to understand the small business 
        debtor's financial condition and plan the small business 
        debtor's future.

SEC. 436. DUTIES IN SMALL BUSINESS CASES.

    (a) Duties in Chapter 11 Cases.--Subchapter I of chapter 11 of 
title 11, United States Code, as amended by section 321, is amended by 
adding at the end the following:
``Sec. 1116. Duties of trustee or debtor in possession in small 
              business cases
    ``In a small business case, a trustee or the debtor in possession, 
in addition to the duties provided in this title and as otherwise 
required by law, shall--
            ``(1) append to the voluntary petition or, in an 
        involuntary case, file not later than 7 days after the date of 
        the order for relief--
                    ``(A) its most recent balance sheet, statement of 
                operations, cash-flow statement, Federal income tax 
                return; or
                    ``(B) a statement made under penalty of perjury 
                that no balance sheet, statement of operations, or 
                cash-flow statement has been prepared and no Federal 
                tax return has been filed;
            ``(2) attend, through its senior management personnel and 
        counsel, meetings scheduled by the court or the United States 
        trustee, including initial debtor interviews, scheduling 
        conferences, and meetings of creditors convened under section 
        341 unless the court waives that requirement after notice and a 
        hearing, upon a finding of extraordinary and compelling 
        circumstances;
            ``(3) timely file all schedules and statements of financial 
        affairs, unless the court, after notice and a hearing, grants 
        an extension, which shall not extend such time period to a date 
        later than 30 days after the date of the order for relief, 
        absent extraordinary and compelling circumstances;
            ``(4) file all postpetition financial and other reports 
        required by the Federal Rules of Bankruptcy Procedure or by 
        local rule of the district court;
            ``(5) subject to section 363(c)(2), maintain insurance 
        customary and appropriate to the industry;
            ``(6)(A) timely file tax returns and other required 
        government filings; and
            ``(B) subject to section 363(c)(2), timely pay all taxes 
        entitled to administrative expense priority except those being 
        contested by appropriate proceedings being diligently 
        prosecuted; and
            ``(7) allow the United States trustee, or a designated 
        representative of the United States trustee, to inspect the 
        debtor's business premises, books, and records at reasonable 
        times, after reasonable prior written notice, unless notice is 
        waived by the debtor.''.
    (b) Clerical Amendment.--The table of sections for chapter 11 of 
title 11, United States Code, as amended by section 321, is amended by 
inserting after the item relating to section 1115 the following:

``1116. Duties of trustee or debtor in possession in small business 
                            cases.''.

SEC. 437. PLAN FILING AND CONFIRMATION DEADLINES.

    Section 1121 of title 11, United States Code, is amended by 
striking subsection (e) and inserting the following:
    ``(e) In a small business case--
            ``(1) only the debtor may file a plan until after 180 days 
        after the date of the order for relief, unless that period is--
                    ``(A) extended as provided by this subsection, 
                after notice and a hearing; or
                    ``(B) the court, for cause, orders otherwise;
            ``(2) the plan, and any necessary disclosure statement, 
        shall be filed not later than 300 days after the date of the 
        order for relief; and
            ``(3) the time periods specified in paragraphs (1) and (2), 
        and the time fixed in section 1129(e) within which the plan 
        shall be confirmed, may be extended only if--
                    ``(A) the debtor, after providing notice to parties 
                in interest (including the United States trustee), 
                demonstrates by a preponderance of the evidence that it 
                is more likely than not that the court will confirm a 
                plan within a reasonable period of time;
                    ``(B) a new deadline is imposed at the time the 
                extension is granted; and
                    ``(C) the order extending time is signed before the 
                existing deadline has expired.''.

SEC. 438. PLAN CONFIRMATION DEADLINE.

    Section 1129 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) In a small business case, the court shall confirm a plan that 
complies with the applicable provisions of this title and that is filed 
in accordance with section 1121(e) not later than 45 days after such 
plan is filed unless the time for confirmation is extended in 
accordance with section 1121(e)(3).''.

SEC. 439. DUTIES OF THE UNITED STATES TRUSTEE.

    Section 586(a) of title 28, United States Code, is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (G), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (H) as 
                subparagraph (I); and
                    (C) by inserting after subparagraph (G) the 
                following:
                    ``(H) in small business cases (as defined in 
                section 101 of title 11), performing the additional 
                duties specified in title 11 pertaining to such cases; 
                and'';
            (2) in paragraph (5), by striking ``and'' at the end;
            (3) in paragraph (6), by striking the period at the end and 
        inserting a semicolon; and
            (4) by adding at the end the following:
            ``(7) in each of such small business cases--
                    ``(A) conduct an initial debtor interview as soon 
                as practicable after the entry of order for relief but 
                before the first meeting scheduled under section 341(a) 
                of title 11, at which time the United States trustee 
                shall--
                            ``(i) begin to investigate the debtor's 
                        viability;
                            ``(ii) inquire about the debtor's business 
                        plan;
                            ``(iii) explain the debtor's obligations to 
                        file monthly operating reports and other 
                        required reports;
                            ``(iv) attempt to develop an agreed 
                        scheduling order; and
                            ``(v) inform the debtor of other 
                        obligations;
                    ``(B) if determined to be appropriate and 
                advisable, visit the appropriate business premises of 
                the debtor and ascertain the state of the debtor's 
                books and records and verify that the debtor has filed 
                its tax returns; and
                    ``(C) review and monitor diligently the debtor's 
                activities, to identify as promptly as possible whether 
                the debtor will be unable to confirm a plan; and
            ``(8) in any case in which the United States trustee finds 
        material grounds for any relief under section 1112 of title 11, 
        the United States trustee shall apply promptly after making 
        that finding to the court for relief.''.

SEC. 440. SCHEDULING CONFERENCES.

    Section 105(d) of title 11, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking ``, 
        may''; and
            (2) by striking paragraph (1) and inserting the following:
            ``(1) shall hold such status conferences as are necessary 
        to further the expeditious and economical resolution of the 
        case; and''.

SEC. 441. SERIAL FILER PROVISIONS.

    Section 362 of title 11, United States Code, as amended by sections 
106, 305, and 311, is amended--
            (1) in subsection (k), as so redesignated by section 305--
                    (A) by striking ``An'' and inserting ``(1) Except 
                as provided in paragraph (2), an''; and
                    (B) by adding at the end the following:
    ``(2) If such violation is based on an action taken by an entity in 
the good faith belief that subsection (h) applies to the debtor, the 
recovery under paragraph (1) of this subsection against such entity 
shall be limited to actual damages.''; and
            (2) by adding at the end the following:
    ``(n)(1) Except as provided in paragraph (2), subsection (a) does 
not apply in a case in which the debtor--
            ``(A) is a debtor in a small business case pending at the 
        time the petition is filed;
            ``(B) was a debtor in a small business case that was 
        dismissed for any reason by an order that became final in the 
        2-year period ending on the date of the order for relief 
        entered with respect to the petition;
            ``(C) was a debtor in a small business case in which a plan 
        was confirmed in the 2-year period ending on the date of the 
        order for relief entered with respect to the petition; or
            ``(D) is an entity that has acquired substantially all of 
        the assets or business of a small business debtor described in 
        subparagraph (A), (B), or (C), unless such entity establishes 
        by a preponderance of the evidence that such entity acquired 
        substantially all of the assets or business of such small 
        business debtor in good faith and not for the purpose of 
        evading this paragraph.
    ``(2) Paragraph (1) does not apply--
            ``(A) to an involuntary case involving no collusion by the 
        debtor with creditors; or
            ``(B) to the filing of a petition if--
                    ``(i) the debtor proves by a preponderance of the 
                evidence that the filing of that petition resulted from 
                circumstances beyond the control of the debtor not 
                foreseeable at the time the case then pending was 
                filed; and
                    ``(ii) it is more likely than not that the court 
                will confirm a feasible plan, but not a liquidating 
                plan, within a reasonable period of time.''.

SEC. 442. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND APPOINTMENT 
              OF TRUSTEE.

    (a) Expanded Grounds for Dismissal or Conversion.--Section 1112 of 
title 11, United States Code, is amended by striking subsection (b) and 
inserting the following:
    ``(b)(1) Except as provided in paragraph (2) of this subsection, 
subsection (c) of this section, and section 1104(a)(3), on request of a 
party in interest, and after notice and a hearing, absent unusual 
circumstances specifically identified by the court that establish that 
the requested conversion or dismissal is not in the best interests of 
creditors and the estate, the court shall convert a case under this 
chapter to a case under chapter 7 or dismiss a case under this chapter, 
whichever is in the best interests of creditors and the estate, if the 
movant establishes cause.
    ``(2) The relief provided in paragraph (1) shall not be granted 
absent unusual circumstances specifically identified by the court that 
establish that such relief is not in the best interests of creditors 
and the estate, if the debtor or another party in interest objects and 
establishes that--
            ``(A) there is a reasonable likelihood that a plan will be 
        confirmed within the timeframes established in sections 1121(e) 
        and 1129(e) of this title, or if such sections do not apply, 
        within a reasonable period of time; and
            ``(B) the grounds for granting such relief include an act 
        or omission of the debtor other than under paragraph (4)(A)--
                    ``(i) for which there exists a reasonable 
                justification for the act or omission; and
                    ``(ii) that will be cured within a reasonable 
                period of time fixed by the court.
    ``(3) The court shall commence the hearing on a motion under this 
subsection not later than 30 days after filing of the motion, and shall 
decide the motion not later than 15 days after commencement of such 
hearing, unless the movant expressly consents to a continuance for a 
specific period of time or compelling circumstances prevent the court 
from meeting the time limits established by this paragraph.
    ``(4) For purposes of this subsection, the term `cause' includes--
            ``(A) substantial or continuing loss to or diminution of 
        the estate and the absence of a reasonable likelihood of 
        rehabilitation;
            ``(B) gross mismanagement of the estate;
            ``(C) failure to maintain appropriate insurance that poses 
        a risk to the estate or to the public;
            ``(D) unauthorized use of cash collateral substantially 
        harmful to 1 or more creditors;
            ``(E) failure to comply with an order of the court;
            ``(F) unexcused failure to satisfy timely any filing or 
        reporting requirement established by this title or by any rule 
        applicable to a case under this chapter;
            ``(G) failure to attend the meeting of creditors convened 
        under section 341(a) or an examination ordered under rule 2004 
        of the Federal Rules of Bankruptcy Procedure without good cause 
        shown by the debtor;
            ``(H) failure timely to provide information or attend 
        meetings reasonably requested by the United States trustee or 
        the bankruptcy administrator;
            ``(I) failure timely to pay taxes owed after the date of 
        the order for relief or to file tax returns due after the order 
        for relief;
            ``(J) failure to file a disclosure statement, or to file or 
        confirm a plan, within the time fixed by this title or by order 
        of the court;
            ``(K) failure to pay any fees or charges required under 
        chapter 123 of title 28;
            ``(L) revocation of an order of confirmation under section 
        1144;
            ``(M) inability to effectuate substantial consummation of a 
        confirmed plan;
            ``(N) material default by the debtor with respect to a 
        confirmed plan;
            ``(O) termination of a confirmed plan by reason of the 
        occurrence of a condition specified in the plan; and
            ``(P) failure of the debtor to pay any domestic support 
        obligation that first becomes payable after the date on which 
        the petition is filed.
    ``(5) The court shall commence the hearing on a motion under this 
subsection not later than 30 days after filing of the motion, and shall 
decide the motion not later than 15 days after commencement of such 
hearing, unless the movant expressly consents to a continuance for a 
specific period of time or compelling circumstances prevent the court 
from meeting the time limits established by this paragraph.''.
    (b) Additional Grounds for Appointment of Trustee.--Section 1104(a) 
of title 11, United States Code, is amended--
            (1) in paragraph (1), by striking ``or'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(3) if grounds exist to convert or dismiss the case under 
        section 1112, but the court determines that the appointment of 
        a trustee or an examiner is in the best interests of creditors 
        and the estate.''.

SEC. 443. STUDY OF OPERATION OF TITLE 11, UNITED STATES CODE, WITH 
              RESPECT TO SMALL BUSINESSES.

    Not later than 2 years after the date of enactment of this Act, the 
Administrator of the Small Business Administration, in consultation 
with the Attorney General, the Director of the Executive Office for 
United States Trustees, and the Director of the Administrative Office 
of the United States Courts, shall--
            (1) conduct a study to determine--
                    (A) the internal and external factors that cause 
                small businesses, especially sole proprietorships, to 
                become debtors in cases under title 11, United States 
                Code, and that cause certain small businesses to 
                successfully complete cases under chapter 11 of such 
                title; and
                    (B) how Federal laws relating to bankruptcy may be 
                made more effective and efficient in assisting small 
                businesses to remain viable; and
            (2) submit to the President pro tempore of the Senate and 
        the Speaker of the House of Representatives a report 
        summarizing that study.

SEC. 444. PAYMENT OF INTEREST.

    Section 362(d)(3) of title 11, United States Code, is amended--
            (1) by inserting ``or 30 days after the court determines 
        that the debtor is subject to this paragraph, whichever is 
        later'' after ``90-day period)''; and
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) the debtor has commenced monthly payments 
                that--
                            ``(i) may, in the debtor's sole discretion, 
                        notwithstanding section 363(c)(2), be made from 
                        rents or other income generated before or after 
                        the commencement of the case by or from the 
                        property to each creditor whose claim is 
                        secured by such real estate (other than a claim 
                        secured by a judgment lien or by an unmatured 
                        statutory lien); and
                            ``(ii) are in an amount equal to interest 
                        at the then applicable nondefault contract rate 
                        of interest on the value of the creditor's 
                        interest in the real estate; or''.

SEC. 445. PRIORITY FOR ADMINISTRATIVE EXPENSES.

    Section 503(b) of title 11, 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 a semicolon; and
            (3) by adding at the end the following:
            ``(7) with respect to a nonresidential real property lease 
        previously assumed under section 365, and subsequently 
        rejected, a sum equal to all monetary obligations due, 
        excluding those arising from or relating to a failure to 
        operate or a penalty provision, for the period of 2 years 
        following the later of the rejection date or the date of actual 
        turnover of the premises, without reduction or setoff for any 
        reason whatsoever except for sums actually received or to be 
        received from a nondebtor, and the claim for remaining sums due 
        for the balance of the term of the lease shall be a claim under 
        section 502(b)(6);''.

SEC. 446. DUTIES WITH RESPECT TO A DEBTOR WHO IS A PLAN ADMINISTRATOR 
              OF AN EMPLOYEE BENEFIT PLAN.

    (a) In General.--Section 521(a) of title 11, United States Code, as 
amended by section 106, is amended-
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) unless a trustee is serving in the case, if at the 
        time of filing the debtor served as the administrator (as 
        defined in section 3 of the Employee Retirement Income Security 
        Act of 1974 of an employee benefit plan, continue to perform 
        the obligations required of the administrator.''.
    (b) Duties of Trustees.--Section 704(a) of title 11, United States 
Code, as amended by sections 102 and 219, is amended--
            (1) in paragraph (9), by striking ``and'' at the end;
            (2) in paragraph (10), by striking the period at the end; 
        and
            (3) by adding at the end the following:
            ``(11) if, at the time of the commencement of the case, the 
        debtor served as the administrator (as defined in section 3 of 
        the Employee Retirement Income Security Act of 1974) of an 
        employee benefit plan, continue to perform the obligations 
        required of the administrator; and''.
    (c) Conforming Amendment.--Section 1106(a)(1) of title 11, United 
States Code, is amended to read as follows:
            ``(1) perform the duties of the trustee, as specified in 
        paragraphs (2), (5), (7), (8), (9), (10), and (11) of section 
        704;''.

SEC. 447. APPOINTMENT OF COMMITTEE OF RETIRED EMPLOYEES.

    Section 1114(d) of title 11, United States Code, is amended--
            (1) by striking ``appoint'' and inserting ``order the 
        appointment of'', and
            (2) by adding at the end the following: ``The United States 
        trustee shall appoint any such committee.''.

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETITION.

    (a) Technical Amendment Relating to Municipalities.--Section 921(d) 
of title 11, United States Code, is amended by inserting 
``notwithstanding section 301(b)'' before the period at the end.
    (b) Conforming Amendment.--Section 301 of title 11, United States 
Code, is amended--
            (1) by inserting ``(a)'' before ``A voluntary''; and
            (2) by striking the last sentence and inserting the 
        following:
    ``(b) The commencement of a voluntary case under a chapter of this 
title constitutes an order for relief under such chapter.''.

SEC. 502. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

    Section 901(a) of title 11, United States Code, is amended--
            (1) by inserting ``555, 556,'' after ``553,''; and
            (2) by inserting ``559, 560, 561, 562'' after ``557,''.

                       TITLE VI--BANKRUPTCY DATA

SEC. 601. IMPROVED BANKRUPTCY STATISTICS.

    (a) In General.--Chapter 6 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 159. Bankruptcy statistics
    ``(a) The clerk of the district court, or the clerk of the 
bankruptcy court if one is certified pursuant to section 156(b) of this 
title, shall collect statistics regarding debtors who are individuals 
with primarily consumer debts seeking relief under chapters 7, 11, and 
13 of title 11. Those statistics shall be in a standardized format 
prescribed by the Director of the Administrative Office of the United 
States Courts (referred to in this section as the `Director').
    ``(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 June 1, 2005, 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 monthly income, average income, 
                and average expenses of those debtors as reported on 
                the schedules and statements that each such debtor 
                files under sections 521 and 1322 of title 11;
                    ``(C) the aggregate amount of debt discharged in 
                cases filed during 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 for cases 
                closed during the reporting period;
                    ``(E) for cases closed during 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 of cases in 
                        which the debtor was not represented by an 
                        attorney; and
                            ``(III) of those cases in which a 
                        reaffirmation was filed, 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 entered 
                        determining the value of property securing a 
                        claim;
                            ``(ii) the number of cases dismissed, the 
                        number of cases dismissed for failure to make 
                        payments under the plan, the number of cases 
                        refiled after dismissal, and the number of 
                        cases in which the plan was completed, 
                        separately itemized with respect to the number 
                        of modifications made before completion of the 
                        plan, if any; and
                            ``(iii) the number of cases in which the 
                        debtor filed another case during the 6-year 
                        period preceding the filing;
                    ``(G) the number of cases in which creditors were 
                fined for misconduct and any amount of punitive damages 
                awarded by the court for creditor misconduct; and
                    ``(H) the number of cases in which sanctions under 
                rule 9011 of the Federal Rules of Bankruptcy Procedure 
                were imposed against debtor's attorney or damages 
                awarded under such Rule.''.
    (b) Clerical Amendment.--The table of sections for 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. 602. UNIFORM RULES FOR THE COLLECTION OF BANKRUPTCY DATA.

    (a) Amendment.--Chapter 39 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 589b. Bankruptcy data
    ``(a) Rules.--The Attorney General shall, within a reasonable time 
after the effective date of this section, issue rules requiring uniform 
forms for (and from time to time thereafter to appropriately modify and 
approve)--
            ``(1) final reports by trustees in cases under chapters 7, 
        12, and 13 of title 11; and
            ``(2) periodic reports by debtors in possession or trustees 
        in cases under chapter 11 of title 11.
    ``(b) Reports.--Each report referred to in subsection (a) shall be 
designed (and the requirements as to place and manner of filing shall 
be established) so as to facilitate compilation of data and maximum 
possible access of the public, both by physical inspection at one or 
more central filing locations, and by electronic access through the 
Internet or other appropriate media.
    ``(c) Required Information.--The information required to be filed 
in the reports referred to in subsection (b) shall be that which is in 
the best interests of debtors and creditors, and in the public interest 
in reasonable and adequate information to evaluate the efficiency and 
practicality of the Federal bankruptcy system. In issuing rules 
proposing the forms referred to in subsection (a), the Attorney General 
shall strike the best achievable practical balance between--
            ``(1) the reasonable needs of the public for information 
        about the operational results of the Federal bankruptcy system;
            ``(2) economy, simplicity, and lack of undue burden on 
        persons with a duty to file reports; and
            ``(3) appropriate privacy concerns and safeguards.
    ``(d) Final Reports.--The uniform forms for final reports required 
under subsection (a) for use by trustees under chapters 7, 12, and 13 
of title 11 shall, in addition to such other matters as are required by 
law or as the Attorney General in the discretion of the Attorney 
General shall propose, include with respect to a case under such 
title--
            ``(1) information about the length of time the case was 
        pending;
            ``(2) assets abandoned;
            ``(3) assets exempted;
            ``(4) receipts and disbursements of the estate;
            ``(5) expenses of administration, including for use under 
        section 707(b), actual costs of administering cases under 
        chapter 13 of title 11;
            ``(6) claims asserted;
            ``(7) claims allowed; and
            ``(8) distributions to claimants and claims discharged 
        without payment,
in each case by appropriate category and, in cases under chapters 12 
and 13 of title 11, date of confirmation of the plan, each modification 
thereto, and defaults by the debtor in performance under the plan.
    ``(e) Periodic Reports.--The uniform forms for periodic reports 
required under subsection (a) for use by trustees or debtors in 
possession under chapter 11 of title 11 shall, in addition to such 
other matters as are required by law or as the Attorney General in the 
discretion of the Attorney General shall propose, include--
            ``(1) information about the standard industry 
        classification, published by the Department of Commerce, for 
        the businesses conducted by the debtor;
            ``(2) length of time the case has been pending;
            ``(3) number of full-time employees as of the date of the 
        order for relief and at the end of each reporting period since 
        the case was filed;
            ``(4) cash receipts, cash disbursements and profitability 
        of the debtor for the most recent period and cumulatively since 
        the date of the order for relief;
            ``(5) compliance with title 11, whether or not tax returns 
        and tax payments since the date of the order for relief have 
        been timely filed and made;
            ``(6) all professional fees approved by the court in the 
        case for the most recent period and cumulatively since the date 
        of the order for relief (separately reported, for the 
        professional fees incurred by or on behalf of the debtor, 
        between those that would have been incurred absent a bankruptcy 
        case and those not); and
            ``(7) plans of reorganization filed and confirmed and, with 
        respect thereto, by class, the recoveries of the holders, 
        expressed in aggregate dollar values and, in the case of 
        claims, as a percentage of total claims of the class 
        allowed.''.
    (b) Clerical Amendment.--The table of sections for chapter 39 of 
title 28, United States Code, is amended by adding at the end the 
following:

``589b. Bankruptcy data.''.

SEC. 603. AUDIT PROCEDURES.

    (a) In General.--
            (1) Establishment of procedures.--The Attorney General (in 
        judicial districts served by United States trustees) and the 
        Judicial Conference of the United States (in judicial districts 
        served by bankruptcy administrators) shall establish procedures 
        to determine the accuracy, veracity, and completeness of 
        petitions, schedules, and other information which the debtor is 
        required to provide under sections 521 and 1322 of title 11, 
        United States Code, and, if applicable, section 111 of such 
        title, in cases filed under chapter 7 or 13 of such title in 
        which the debtor is an individual. Such audits shall be in 
        accordance with generally accepted auditing standards and 
        performed by independent certified public accountants or 
        independent licensed public accountants, provided that the 
        Attorney General and the Judicial Conference, as appropriate, 
        may develop alternative auditing standards not later than 2 
        years after the date of enactment of this Act.
            (2) Procedures.--Those procedures required by paragraph (1) 
        shall--
                    (A) establish a method of selecting appropriate 
                qualified persons to contract to perform those audits;
                    (B) establish a method of randomly selecting cases 
                to be audited, except that not less than 1 out of every 
                250 cases in each Federal judicial district shall be 
                selected for audit;
                    (C) 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 if those variances occur by reason 
                of higher income or higher expenses than the 
                statistical norm of the district in which the schedules 
                were filed; and
                    (D) establish procedures for 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.
    (b) Amendments.--Section 586 of title 28, United States Code, is 
amended--
            (1) in subsection (a), by striking paragraph (6) and 
        inserting the following:
            ``(6) make such reports as the Attorney General directs, 
        including the results of audits performed under section 603(a) 
        of the Bankruptcy Abuse Prevention and Consumer Protection Act 
        of 2003;''; and
            (2) by adding at the end the following:
    ``(f)(1) The United States trustee for each district is authorized 
to contract with auditors to perform audits in cases designated by the 
United States trustee, in accordance with the procedures established 
under section 603(a) of the Bankruptcy Abuse Prevention and Consumer 
Protection Act of 2003.
    ``(2)(A) The report of each audit referred to in paragraph (1) 
shall be filed with the court and transmitted to the United States 
trustee. Each report shall clearly and conspicuously specify any 
material misstatement of income or expenditures or of assets identified 
by the person performing the audit. In any case in which a material 
misstatement of income or expenditures or of assets has been reported, 
the clerk of the district court (or the clerk of the bankruptcy court 
if one is certified under section 156(b) of this title) shall give 
notice of the misstatement to the creditors in the case.
    ``(B) If a material misstatement of income or expenditures or of 
assets is reported, the United States trustee shall--
            ``(i) report the material misstatement, if appropriate, to 
        the United States Attorney pursuant to section 3057 of title 
        18; and
            ``(ii) if advisable, take appropriate action, including but 
        not limited to commencing an adversary proceeding to revoke the 
        debtor's discharge pursuant to section 727(d) of title 11.''.
    (c) Amendments to Section 521 of Title 11, U.S.C.--Section 521(a) 
of title 11, United States Code, as so designated by section 106, is 
amended in each of paragraphs (3) and (4) by inserting ``or an auditor 
appointed under section 586(f) of title 28'' after ``serving in the 
case''.
    (d) Amendments to Section 727 of Title 11, U.S.C.--Section 727(d) 
of title 11, United States Code, is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) the debtor has failed to explain satisfactorily--
                    ``(A) a material misstatement in an audit referred 
                to in section 586(f) of title 28; or
                    ``(B) a failure to make available for inspection 
                all necessary accounts, papers, documents, financial 
                records, files, and all other papers, things, or 
                property belonging to the debtor that are requested for 
                an audit referred to in section 586(f) of title 28.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

SEC. 604. SENSE OF CONGRESS REGARDING AVAILABILITY OF BANKRUPTCY DATA.

    It is the sense of Congress that--
            (1) the national policy of the United States should be that 
        all data held by bankruptcy clerks in electronic form, to the 
        extent such data reflects only public records (as defined in 
        section 107 of title 11, United States Code), should be 
        released in a usable electronic form in bulk to the public, 
        subject to such appropriate privacy concerns and safeguards as 
        Congress and the Judicial Conference of the United States may 
        determine; and
            (2) there should be established a bankruptcy data system in 
        which--
                    (A) a single set of data definitions and forms are 
                used to collect data nationwide; and
                    (B) data for any particular bankruptcy case are 
                aggregated in the same electronic record.

                  TITLE VII--BANKRUPTCY TAX PROVISIONS

SEC. 701. TREATMENT OF CERTAIN LIENS.

    (a) Treatment of Certain Liens.--Section 724 of title 11, United 
States Code, is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by inserting ``(other than to the extent that there is a 
        properly perfected unavoidable tax lien arising in connection 
        with an ad valorem tax on real or personal property of the 
        estate)'' after ``under this title'';
            (2) in subsection (b)(2), by inserting ``(except that such 
        expenses, other than claims for wages, salaries, or commissions 
        which arise after the filing of a petition, shall be limited to 
        expenses incurred under chapter 7 of this title and shall not 
        include expenses incurred under chapter 11 of this title)'' 
        after ``507(a)(1)''; and
            (3) by adding at the end the following:
    ``(e) Before subordinating a tax lien on real or personal property 
of the estate, the trustee shall--
            ``(1) exhaust the unencumbered assets of the estate; and
            ``(2) in a manner consistent with section 506(c), recover 
        from property securing an allowed secured claim the reasonable, 
        necessary costs and expenses of preserving or disposing of that 
        property.
    ``(f) Notwithstanding the exclusion of ad valorem tax liens under 
this section and subject to the requirements of subsection (e), the 
following may be paid from property of the estate which secures a tax 
lien, or the proceeds of such property:
            ``(1) Claims for wages, salaries, and commissions that are 
        entitled to priority under section 507(a)(4).
            ``(2) Claims for contributions to an employee benefit plan 
        entitled to priority under section 507(a)(5).''.
    (b) Determination of Tax Liability.--Section 505(a)(2) of title 11, 
United States Code, is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) the amount or legality of any amount arising in 
        connection with an ad valorem tax on real or personal property 
        of the estate, if the applicable period for contesting or 
        redetermining that amount under any law (other than a 
        bankruptcy law) has expired.''.

SEC. 702. TREATMENT OF FUEL TAX CLAIMS.

    Section 501 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) A claim arising from the liability of a debtor for fuel use 
tax assessed consistent with the requirements of section 31705 of title 
49 may be filed by the base jurisdiction designated pursuant to the 
International Fuel Tax Agreement (as defined in section 31701 of title 
49) and, if so filed, shall be allowed as a single claim.''.

SEC. 703. NOTICE OF REQUEST FOR A DETERMINATION OF TAXES.

    Section 505(b) of title 11, United States Code, is amended--
            (1) in the first sentence, by inserting ``at the address 
        and in the manner designated in paragraph (1)'' after 
        ``determination of such tax'';
            (2) by striking ``(1) upon payment'' and inserting ``(A) 
        upon payment'';
            (3) by striking ``(A) such governmental unit'' and 
        inserting ``(i) such governmental unit'';
            (4) by striking ``(B) such governmental unit'' and 
        inserting ``(ii) such governmental unit'';
            (5) by striking ``(2) upon payment'' and inserting ``(B) 
        upon payment'';
            (6) by striking ``(3) upon payment'' and inserting ``(C) 
        upon payment'';
            (7) by striking ``(b)'' and inserting ``(2)''; and
            (8) by inserting before paragraph (2), as so designated, 
        the following:
    ``(b)(1)(A) The clerk shall maintain a listing under which a 
Federal, State, or local governmental unit responsible for the 
collection of taxes within the district may--
            ``(i) designate an address for service of requests under 
        this subsection; and
            ``(ii) describe where further information concerning 
        additional requirements for filing such requests may be found.
    ``(B) If a governmental unit referred to in subparagraph (A) does 
not designate an address and provide that address to the clerk under 
that subparagraph, any request made under this subsection may be served 
at the address for the filing of a tax return or protest with the 
appropriate taxing authority of that governmental unit.''.

SEC. 704. RATE OF INTEREST ON TAX CLAIMS.

    (a) In General.--Subchapter I of chapter 5 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 511. Rate of interest on tax claims
    ``(a) If any provision of this title requires the payment of 
interest on a tax claim or on an administrative expense tax, or the 
payment of interest to enable a creditor to receive the present value 
of the allowed amount of a tax claim, the rate of interest shall be the 
rate determined under applicable nonbankruptcy law.
    ``(b) In the case of taxes paid under a confirmed plan under this 
title, the rate of interest shall be determined as of the calendar 
month in which the plan is confirmed.''.
    (b) Clerical Amendment.--The table of sections for subchapter 1 of 
chapter 5 of title 11, United States Code, is amended by adding at the 
end the following:

``511. Rate of interest on tax claims.''.

SEC. 705. PRIORITY OF TAX CLAIMS.

    Section 507(a)(8) of title 11, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``for a taxable year ending on or before the 
                date of the filing of the petition'' after ``gross 
                receipts'';
                    (B) in clause (i), by striking ``for a taxable year 
                ending on or before the date of the filing of the 
                petition''; and
                    (C) by striking clause (ii) and inserting the 
                following:
                            ``(ii) assessed within 240 days before the 
                        date of the filing of the petition, exclusive 
                        of--
                                    ``(I) any time during which an 
                                offer in compromise with respect to 
                                that tax was pending or in effect 
                                during that 240-day period, plus 30 
                                days; and
                                    ``(II) any time during which a stay 
                                of proceedings against collections was 
                                in effect in a prior case under this 
                                title during that 240-day period, plus 
                                90 days.''; and
            (2) by adding at the end the following:
        ``An otherwise applicable time period specified in this 
        paragraph shall be suspended for any period during which a 
        governmental unit is prohibited under applicable nonbankruptcy 
        law from collecting a tax as a result of a request by the 
        debtor for a hearing and an appeal of any collection action 
        taken or proposed against the debtor, plus 90 days; plus any 
        time during which the stay of proceedings was in effect in a 
        prior case under this title or during which collection was 
        precluded by the existence of 1 or more confirmed plans under 
        this title, plus 90 days.''.

SEC. 706. PRIORITY PROPERTY TAXES INCURRED.

    Section 507(a)(8)(B) of title 11, United States Code, is amended by 
striking ``assessed'' and inserting ``incurred''.

SEC. 707. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 13.

    Section 1328(a)(2) of title 11, United States Code, as amended by 
section 314, is amended by striking ``paragraph'' and inserting 
``section 507(a)(8)(C) or in paragraph (1)(B), (1)(C),''.

SEC. 708. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 11.

    Section 1141(d) of title 11, United States Code, as amended by 
section 321, is amended by adding at the end the following:
    ``(6) Notwithstanding paragraph (1), the confirmation of a plan 
does not discharge a debtor that is a corporation from any debt--
            ``(A) of a kind specified in paragraph (2)(A) or (2)(B) of 
        section 523(a) that is owed to a domestic governmental unit, or 
        owed to a person as the result of an action filed under 
        subchapter III of chapter 37 of title 31 or any similar State 
        statute; or
            ``(B) for a tax or customs duty with respect to which the 
        debtor--
                    ``(i) made a fraudulent return; or
                    ``(ii) willfully attempted in any manner to evade 
                or to defeat such tax or such customs duty.''.

SEC. 709. STAY OF TAX PROCEEDINGS LIMITED TO PREPETITION TAXES.

    Section 362(a)(8) of title 11, United States Code, is amended by 
striking ``the debtor'' and inserting ``a corporate debtor's tax 
liability for a taxable period the bankruptcy court may determine or 
concerning the tax liability of a debtor who is an individual for a 
taxable period ending before the order for relief under this title''.

SEC. 710. PERIODIC PAYMENT OF TAXES IN CHAPTER 11 CASES.

    Section 1129(a)(9) of title 11, United States Code, is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by striking ``deferred cash 
        payments,'' and all that follows through the end of the 
        subparagraph, and inserting ``regular installment payments in 
        cash--
                            ``(i) of a total value, as of the effective 
                        date of the plan, equal to the allowed amount 
                        of such claim;
                            ``(ii) over a period ending not later than 
                        5 years after the date of the entry of the 
                        order for relief under section 301, 302, or 
                        303; and
                            ``(iii) in a manner not less favorable than 
                        the most favored nonpriority unsecured claim 
                        provided for by the plan (other than cash 
                        payments made to a class of creditors under 
                        section 1122(b)); and''; and
            (3) by adding at the end the following:
                    ``(D) with respect to a secured claim which would 
                otherwise meet the description of an unsecured claim of 
                a governmental unit under section 507(a)(8), but for 
                the secured status of that claim, the holder of that 
                claim will receive on account of that claim, cash 
                payments, in the same manner and over the same period, 
                as prescribed in subparagraph (C).''.

SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

    Section 545(2) of title 11, United States Code, is amended by 
inserting before the semicolon at the end the following: ``, except in 
any case in which a purchaser is a purchaser described in section 6323 
of the Internal Revenue Code of 1986, or in any other similar provision 
of State or local law''.

SEC. 712. PAYMENT OF TAXES IN THE CONDUCT OF BUSINESS.

    (a) Payment of Taxes Required.--Section 960 of title 28, United 
States Code, is amended--
            (1) by inserting ``(a)'' before ``Any''; and
            (2) by adding at the end the following:
    ``(b) A tax under subsection (a) shall be paid on or before the due 
date of the tax under applicable nonbankruptcy law, unless--
            ``(1) the tax is a property tax secured by a lien against 
        property that is abandoned within a reasonable period of time 
        after the lien attaches by the trustee of a bankruptcy estate 
        under section 554 of title 11; or
            ``(2) payment of the tax is excused under a specific 
        provision of title 11.
    ``(c) In a case pending under chapter 7 of title 11, payment of a 
tax may be deferred until final distribution is made under section 726 
of title 11, if--
            ``(1) the tax was not incurred by a trustee duly appointed 
        under chapter 7 of title 11; or
            ``(2) before the due date of the tax, an order of the court 
        makes a finding of probable insufficiency of funds of the 
        estate to pay in full the administrative expenses allowed under 
        section 503(b) of title 11 that have the same priority in 
        distribution under section 726(b) of title 11 as the priority 
        of that tax.''.
    (b) Payment of Ad Valorem Taxes Required.--Section 503(b)(1)(B)(i) 
of title 11, United States Code, is amended by inserting ``whether 
secured or unsecured, including property taxes for which liability is 
in rem, in personam, or both,'' before ``except''.
    (c) Request for Payment of Administrative Expense Taxes 
Eliminated.--Section 503(b)(1) of title 11, United States Code, is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by adding ``and'' at the end; and
            (3) by adding at the end the following:
            ``(D) notwithstanding the requirements of subsection (a), a 
        governmental unit shall not be required to file a request for 
        the payment of an expense described in subparagraph (B) or (C), 
        as a condition of its being an allowed administrative 
        expense;''.
    (d) Payment of Taxes and Fees as Secured Claims.--Section 506 of 
title 11, United States Code, is amended--
            (1) in subsection (b), by inserting ``or State statute'' 
        after ``agreement''; and
            (2) in subsection (c), by inserting ``, including the 
        payment of all ad valorem property taxes with respect to the 
        property'' before the period at the end.

SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS.

    Section 726(a)(1) of title 11, United States Code, is amended by 
striking ``before the date on which the trustee commences distribution 
under this section;'' and inserting the following: ``on or before the 
earlier of--
                    ``(A) the date that is 10 days after the mailing to 
                creditors of the summary of the trustee's final report; 
                or
                    ``(B) the date on which the trustee commences final 
                distribution under this section;''.

SEC. 714. INCOME TAX RETURNS PREPARED BY TAX AUTHORITIES.

    Section 523(a) of title 11, United States Code, as amended by 
sections 215 and 224, is amended--
            (1) in paragraph (1)(B)--
                    (A) in the matter preceding clause (i), by 
                inserting ``or equivalent report or notice,'' after ``a 
                return,'';
                    (B) in clause (i), by inserting ``or given'' after 
                ``filed''; and
                    (C) in clause (ii)--
                            (i) by inserting ``or given'' after 
                        ``filed''; and
                            (ii) by inserting ``, report, or notice'' 
                        after ``return''; and
            (2) by adding at the end the following:
``For purposes of this subsection, the term `return' means a return 
that satisfies the requirements of applicable nonbankruptcy law 
(including applicable filing requirements). Such term includes a return 
prepared pursuant to section 6020(a) of the Internal Revenue Code of 
1986, or similar State or local law, or a written stipulation to a 
judgment or a final order entered by a nonbankruptcy tribunal, but does 
not include a return made pursuant to section 6020(b) of the Internal 
Revenue Code of 1986, or a similar State or local law.''.

SEC. 715. DISCHARGE OF THE ESTATE'S LIABILITY FOR UNPAID TAXES.

    Section 505(b)(2) of title 11, United States Code, as amended by 
section 703, is amended by inserting ``the estate,'' after 
``misrepresentation,''.

SEC. 716. REQUIREMENT TO FILE TAX RETURNS TO CONFIRM CHAPTER 13 PLANS.

    (a) Filing of Prepetition Tax Returns Required for Plan 
Confirmation.--Section 1325(a) of title 11, United States Code, as 
amended by sections 102, 213, and 306, is amended by inserting after 
paragraph (8) the following:
            ``(9) the debtor has filed all applicable Federal, State, 
        and local tax returns as required by section 1308.''.
    (b) Additional Time Permitted for Filing Tax Returns.--
            (1) In general.--Subchapter I of chapter 13 of title 11, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 1308. Filing of prepetition tax returns
    ``(a) Not later than the day before the date on which the meeting 
of the creditors is first scheduled to be held under section 341(a), if 
the debtor was required to file a tax return under applicable 
nonbankruptcy law, the debtor shall file with appropriate tax 
authorities all tax returns for all taxable periods ending during the 
4-year period ending on the date of the filing of the petition.
    ``(b)(1) Subject to paragraph (2), if the tax returns required by 
subsection (a) have not been filed by the date on which the meeting of 
creditors is first scheduled to be held under section 341(a), the 
trustee may hold open that meeting for a reasonable period of time to 
allow the debtor an additional period of time to file any unfiled 
returns, but such additional period of time shall not extend beyond--
            ``(A) for any return that is past due as of the date of the 
        filing of the petition, the date that is 120 days after the 
        date of that meeting; or
            ``(B) for any return that is not past due as of the date of 
        the filing of the petition, the later of--
                    ``(i) the date that is 120 days after the date of 
                that meeting; or
                    ``(ii) the date on which the return is due under 
                the last automatic extension of time for filing that 
                return to which the debtor is entitled, and for which 
                request is timely made, in accordance with applicable 
                nonbankruptcy law.
    ``(2) After notice and a hearing, and order entered before the 
tolling of any applicable filing period determined under this 
subsection, if the debtor demonstrates by a preponderance of the 
evidence that the failure to file a return as required under this 
subsection is attributable to circumstances beyond the control of the 
debtor, the court may extend the filing period established by the 
trustee under this subsection for--
            ``(A) a period of not more than 30 days for returns 
        described in paragraph (1); and
            ``(B) a period not to extend after the applicable extended 
        due date for a return described in paragraph (2).
    ``(c) For purposes of this section, the term `return' includes a 
return prepared pursuant to subsection (a) or (b) of section 6020 of 
the Internal Revenue Code of 1986, or a similar State or local law, or 
a written stipulation to a judgment or a final order entered by a 
nonbankruptcy tribunal.''.
            (2) Conforming amendment.--The table of sections for 
        subchapter I of chapter 13 of title 11, United States Code, is 
        amended by adding at the end the following:

``1308. Filing of prepetition tax returns.''.
    (c) Dismissal or Conversion on Failure To Comply.--Section 1307 of 
title 11, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Upon the failure of the debtor to file a tax return under 
section 1308, on request of a party in interest or the United States 
trustee and after notice and a hearing, the court shall dismiss a case 
or convert a case under this chapter to a case under chapter 7 of this 
title, whichever is in the best interest of the creditors and the 
estate.''.
    (d) Timely Filed Claims.--Section 502(b)(9) of title 11, United 
States Code, is amended by inserting before the period at the end the 
following: ``, and except that in a case under chapter 13, a claim of a 
governmental unit for a tax with respect to a return filed under 
section 1308 shall be timely if the claim is filed on or before the 
date that is 60 days after the date on which such return was filed as 
required''.
    (e) Rules for Objections to Claims and to Confirmation.--It is the 
sense of Congress that the Advisory Committee on Bankruptcy Rules of 
the Judicial Conference of the United States should, as soon as 
practicable after the date of enactment of this Act, propose for 
adoption amended Federal Rules of Bankruptcy Procedure which provide 
that--
            (1) notwithstanding the provisions of Rule 3015(f), in 
        cases under chapter 13 of title 11, United States Code, an 
        objection to the confirmation of a plan filed by a governmental 
        unit on or before the date that is 60 days after the date on 
        which the debtor files all tax returns required under sections 
        1308 and 1325(a)(7) of title 11, United States Code, shall be 
        treated for all purposes as if such objection had been timely 
        filed before such confirmation; and
            (2) in addition to the provisions of Rule 3007, in a case 
        under chapter 13 of title 11, United States Code, no objection 
        to a claim for a tax with respect to which a return is required 
        to be filed under section 1308 of title 11, United States Code, 
        shall be filed until such return has been filed as required.

SEC. 717. STANDARDS FOR TAX DISCLOSURE.

    Section 1125(a)(1) of title 11, United States Code, is amended--
            (1) by inserting ``including a discussion of the potential 
        material Federal tax consequences of the plan to the debtor, 
        any successor to the debtor, and a hypothetical investor 
        typical of the holders of claims or interests in the case,'' 
        after ``records''; and
            (2) by striking ``a hypothetical reasonable investor 
        typical of holders of claims or interests'' and inserting 
        ``such a hypothetical investor''.

SEC. 718. SETOFF OF TAX REFUNDS.

    Section 362(b) of title 11, United States Code, as amended by 
sections 224, 303, 311, and 401, is amended by inserting after 
paragraph (25) the following:
            ``(26) under subsection (a), of the setoff under applicable 
        nonbankruptcy law of an income tax refund, by a governmental 
        unit, with respect to a taxable period that ended before the 
        order for relief against an income tax liability for a taxable 
        period that also ended before the order for relief, except that 
        in any case in which the setoff of an income tax refund is not 
        permitted under applicable nonbankruptcy law because of a 
        pending action to determine the amount or legality of a tax 
        liability, the governmental unit may hold the refund pending 
        the resolution of the action, unless the court, on the motion 
        of the trustee and after notice and a hearing, grants the 
        taxing authority adequate protection (within the meaning of 
        section 361) for the secured claim of that authority in the 
        setoff under section 506(a);''.

SEC. 719. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF STATE AND 
              LOCAL TAXES.

    (a) In General.--
            (1) Special provisions.--Section 346 of title 11, United 
        States Code, is amended to read as follows:
``Sec. 346. Special provisions related to the treatment of State and 
              local taxes
    ``(a) Whenever the Internal Revenue Code of 1986 provides that a 
separate taxable estate or entity is created in a case concerning a 
debtor under this title, and the income, gain, loss, deductions, and 
credits of such estate shall be taxed to or claimed by the estate, a 
separate taxable estate is also created for purposes of any State and 
local law imposing a tax on or measured by income and such income, 
gain, loss, deductions, and credits shall be taxed to or claimed by the 
estate and may not be taxed to or claimed by the debtor. The preceding 
sentence shall not apply if the case is dismissed. The trustee shall 
make tax returns of income required under any such State or local law.
    ``(b) Whenever the Internal Revenue Code of 1986 provides that no 
separate taxable estate shall be created in a case concerning a debtor 
under this title, and the income, gain, loss, deductions, and credits 
of an estate shall be taxed to or claimed by the debtor, such income, 
gain, loss, deductions, and credits shall be taxed to or claimed by the 
debtor under a State or local law imposing a tax on or measured by 
income and may not be taxed to or claimed by the estate. The trustee 
shall make such tax returns of income of corporations and of 
partnerships as are required under any State or local law, but with 
respect to partnerships, shall make said returns only to the extent 
such returns are also required to be made under such Code. The estate 
shall be liable for any tax imposed on such corporation or partnership, 
but not for any tax imposed on partners or members.
    ``(c) With respect to a partnership or any entity treated as a 
partnership under a State or local law imposing a tax on or measured by 
income that is a debtor in a case under this title, any gain or loss 
resulting from a distribution of property from such partnership, or any 
distributive share of any income, gain, loss, deduction, or credit of a 
partner or member that is distributed, or considered distributed, from 
such partnership, after the commencement of the case, is gain, loss, 
income, deduction, or credit, as the case may be, of the partner or 
member, and if such partner or member is a debtor in a case under this 
title, shall be subject to tax in accordance with subsection (a) or 
(b).
    ``(d) For purposes of any State or local law imposing a tax on or 
measured by income, the taxable period of a debtor in a case under this 
title shall terminate only if and to the extent that the taxable period 
of such debtor terminates under the Internal Revenue Code of 1986.
    ``(e) The estate in any case described in subsection (a) shall use 
the same accounting method as the debtor used immediately before the 
commencement of the case, if such method of accounting complies with 
applicable nonbankruptcy tax law.
    ``(f) For purposes of any State or local law imposing a tax on or 
measured by income, a transfer of property from the debtor to the 
estate or from the estate to the debtor shall not be treated as a 
disposition for purposes of any provision assigning tax consequences to 
a disposition, except to the extent that such transfer is treated as a 
disposition under the Internal Revenue Code of 1986.
    ``(g) Whenever a tax is imposed pursuant to a State or local law 
imposing a tax on or measured by income pursuant to subsection (a) or 
(b), such tax shall be imposed at rates generally applicable to the 
same types of entities under such State or local law.
    ``(h) The trustee shall withhold from any payment of claims for 
wages, salaries, commissions, dividends, interest, or other payments, 
or collect, any amount required to be withheld or collected under 
applicable State or local tax law, and shall pay such withheld or 
collected amount to the appropriate governmental unit at the time and 
in the manner required by such tax law, and with the same priority as 
the claim from which such amount was withheld or collected was paid.
    ``(i)(1) To the extent that any State or local law imposing a tax 
on or measured by income provides for the carryover of any tax 
attribute from one taxable period to a subsequent taxable period, the 
estate shall succeed to such tax attribute in any case in which such 
estate is subject to tax under subsection (a).
    ``(2) After such a case is closed or dismissed, the debtor shall 
succeed to any tax attribute to which the estate succeeded under 
paragraph (1) to the extent consistent with the Internal Revenue Code 
of 1986.
    ``(3) The estate may carry back any loss or tax attribute to a 
taxable period of the debtor that ended before the order for relief 
under this title to the extent that--
            ``(A) applicable State or local tax law provides for a 
        carryback in the case of the debtor; and
            ``(B) the same or a similar tax attribute may be carried 
        back by the estate to such a taxable period of the debtor under 
        the Internal Revenue Code of 1986.
    ``(j)(1) For purposes of any State or local law imposing a tax on 
or measured by income, income is not realized by the estate, the 
debtor, or a successor to the debtor by reason of discharge of 
indebtedness in a case under this title, except to the extent, if any, 
that such income is subject to tax under the Internal Revenue Code of 
1986.
    ``(2) Whenever the Internal Revenue Code of 1986 provides that the 
amount excluded from gross income in respect of the discharge of 
indebtedness in a case under this title shall be applied to reduce the 
tax attributes of the debtor or the estate, a similar reduction shall 
be made under any State or local law imposing a tax on or measured by 
income to the extent such State or local law recognizes such 
attributes. Such State or local law may also provide for the reduction 
of other attributes to the extent that the full amount of income from 
the discharge of indebtedness has not been applied.
    ``(k)(1) Except as provided in this section and section 505, the 
time and manner of filing tax returns and the items of income, gain, 
loss, deduction, and credit of any taxpayer shall be determined under 
applicable nonbankruptcy law.
    ``(2) For Federal tax purposes, the provisions of this section are 
subject to the Internal Revenue Code of 1986 and other applicable 
Federal nonbankruptcy law.''.
            (2) Clerical Amendment.--The table of sections for chapter 
        3 of title 11, United States Code, is amended by striking the 
        item relating to section 346 and inserting the following:

``346. Special provisions related to the treatment of State and local 
                            taxes.''.
    (b) Conforming Amendments.--Title 11 of the United States Code is 
amended--
            (1) by striking section 728;
            (2) in the table of sections for chapter 7 by striking the 
        item relating to section 728;
            (3) in section 1146--
                    (A) by striking subsections (a) and (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (a) and (b), respectively; and
            (4) in section 1231--
                    (A) by striking subsections (a) and (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (a) and (b), respectively.

SEC. 720. DISMISSAL FOR FAILURE TO TIMELY FILE TAX RETURNS.

    Section 521 of title 11, United States Code, as amended by sections 
106, 225, 305, 315, and 316, is amended by adding at the end the 
following:
    ``(k)(1) Notwithstanding any other provision of this title, if the 
debtor fails to file a tax return that becomes due after the 
commencement of the case or to properly obtain an extension of the due 
date for filing such return, the taxing authority may request that the 
court enter an order converting or dismissing the case.
    ``(2) If the debtor does not file the required return or obtain the 
extension referred to in paragraph (1) within 90 days after a request 
is filed by the taxing authority under that paragraph, the court shall 
convert or dismiss the case, whichever is in the best interests of 
creditors and the estate.''.

           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

SEC. 801. AMENDMENT TO ADD CHAPTER 15 TO TITLE 11, UNITED STATES CODE.

    (a) In General.--Title 11, United States Code, is amended by 
inserting after chapter 13 the following:

          ``CHAPTER 15--ANCILLARY AND OTHER CROSS-BORDER CASES

``Sec.
``1501. Purpose and scope of application.
                   ``SUBCHAPTER I--GENERAL PROVISIONS

``1502. Definitions.
``1503. International obligations of the United States.
``1504. Commencement of ancillary case.
``1505. Authorization to act in a foreign country.
``1506. Public policy exception.
``1507. Additional assistance.
``1508. Interpretation.
``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``1509. Right of direct access.
``1510. Limited jurisdiction.
``1511. Commencement of case under section 301 or 303.
``1512. Participation of a foreign representative in a case under this 
                            title.
``1513. Access of foreign creditors to a case under this title.
``1514. Notification to foreign creditors concerning a case under this 
                            title.
    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``1515. Application for recognition.
``1516. Presumptions concerning recognition.
``1517. Order granting recognition.
``1518. Subsequent information.
``1519. Relief that may be granted upon filing petition for 
                            recognition.
``1520. Effects of recognition of a foreign main proceeding.
``1521. Relief that may be granted upon recognition.
``1522. Protection of creditors and other interested persons.
``1523. Actions to avoid acts detrimental to creditors.
``1524. Intervention by a foreign representative.
     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``1525. Cooperation and direct communication between the court and 
                            foreign courts or foreign representatives.
``1526. Cooperation and direct communication between the trustee and 
                            foreign courts or foreign representatives.
``1527. Forms of cooperation.
                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``1528. Commencement of a case under this title after recognition of a 
                            foreign main proceeding.
``1529. Coordination of a case under this title and a foreign 
                            proceeding.
``1530. Coordination of more than 1 foreign proceeding.
``1531. Presumption of insolvency based on recognition of a foreign 
                            main proceeding.
``1532. Rule of payment in concurrent proceedings.
``Sec. 1501. Purpose and scope of application
    ``(a) The purpose of this chapter is to incorporate the Model Law 
on Cross-Border Insolvency so as to provide effective mechanisms for 
dealing with cases of cross-border insolvency with the objectives of--
            ``(1) cooperation between--
                    ``(A) courts of the United States, United States 
                trustees, trustees, examiners, debtors, and debtors in 
                possession; and
                    ``(B) the courts and other competent authorities of 
                foreign countries involved in cross-border insolvency 
                cases;
            ``(2) greater legal certainty for trade and investment;
            ``(3) fair and efficient administration of cross-border 
        insolvencies that protects the interests of all creditors, and 
        other interested entities, including the debtor;
            ``(4) protection and maximization of the value of the 
        debtor's assets; and
            ``(5) facilitation of the rescue of financially troubled 
        businesses, thereby protecting investment and preserving 
        employment.
    ``(b) This chapter applies where--
            ``(1) assistance is sought in the United States by a 
        foreign court or a foreign representative in connection with a 
        foreign proceeding;
            ``(2) assistance is sought in a foreign country in 
        connection with a case under this title;
            ``(3) a foreign proceeding and a case under this title with 
        respect to the same debtor are taking place concurrently; or
            ``(4) creditors or other interested persons in a foreign 
        country have an interest in requesting the commencement of, or 
        participating in, a case or proceeding under this title.
    ``(c) This chapter does not apply to--
            ``(1) a proceeding concerning an entity, other than a 
        foreign insurance company, identified by exclusion in section 
        109(b);
            ``(2) an individual, or to an individual and such 
        individual's spouse, who have debts within the limits specified 
        in section 109(e) and who are citizens of the United States or 
        aliens lawfully admitted for permanent residence in the United 
        States; or
            ``(3) an entity subject to a proceeding under the 
        Securities Investor Protection Act of 1970, a stockbroker 
        subject to subchapter III of chapter 7 of this title, or a 
        commodity broker subject to subchapter IV of chapter 7 of this 
        title.
    ``(d) The court may not grant relief under this chapter with 
respect to any deposit, escrow, trust fund, or other security required 
or permitted under any applicable State insurance law or regulation for 
the benefit of claim holders in the United States.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 1502. Definitions
    ``For the purposes of this chapter, the term--
            ``(1) `debtor' means an entity that is the subject of a 
        foreign proceeding;
            ``(2) `establishment' means any place of operations where 
        the debtor carries out a nontransitory economic activity;
            ``(3) `foreign court' means a judicial or other authority 
        competent to control or supervise a foreign proceeding;
            ``(4) `foreign main proceeding' means a foreign proceeding 
        taking place in the country where the debtor has the center of 
        its main interests;
            ``(5) `foreign nonmain proceeding' means a foreign 
        proceeding, other than a foreign main proceeding, taking place 
        in a country where the debtor has an establishment;
            ``(6) `trustee' includes a trustee, a debtor in possession 
        in a case under any chapter of this title, or a debtor under 
        chapter 9 of this title;
            ``(7) `recognition' means the entry of an order granting 
        recognition of a foreign main proceeding or foreign nonmain 
        proceeding under this chapter; and
            ``(8) `within the territorial jurisdiction of the United 
        States', when used with reference to property of a debtor, 
        refers to tangible property located within the territory of the 
        United States and intangible property deemed under applicable 
        nonbankruptcy law to be located within that territory, 
        including any property subject to attachment or garnishment 
        that may properly be seized or garnished by an action in a 
        Federal or State court in the United States.
``Sec. 1503. International obligations of the United States
    ``To the extent that this chapter conflicts with an obligation of 
the United States arising out of any treaty or other form of agreement 
to which it is a party with one or more other countries, the 
requirements of the treaty or agreement prevail.
``Sec. 1504. Commencement of ancillary case
    ``A case under this chapter is commenced by the filing of a 
petition for recognition of a foreign proceeding under section 1515.
``Sec. 1505. Authorization to act in a foreign country
    ``A trustee or another entity (including an examiner) may be 
authorized by the court to act in a foreign country on behalf of an 
estate created under section 541. An entity authorized to act under 
this section may act in any way permitted by the applicable foreign 
law.
``Sec. 1506. Public policy exception
    ``Nothing in this chapter prevents the court from refusing to take 
an action governed by this chapter if the action would be manifestly 
contrary to the public policy of the United States.
``Sec. 1507. Additional assistance
    ``(a) Subject to the specific limitations stated elsewhere in this 
chapter the court, if recognition is granted, may provide additional 
assistance to a foreign representative under this title or under other 
laws of the United States.
    ``(b) In determining whether to provide additional assistance under 
this title or under other laws of the United States, the court shall 
consider whether such additional assistance, consistent with the 
principles of comity, will reasonably assure--
            ``(1) just treatment of all holders of claims against or 
        interests in the debtor's property;
            ``(2) protection of claim holders in the United States 
        against prejudice and inconvenience in the processing of claims 
        in such foreign proceeding;
            ``(3) prevention of preferential or fraudulent dispositions 
        of property of the debtor;
            ``(4) distribution of proceeds of the debtor's property 
        substantially in accordance with the order prescribed by this 
        title; and
            ``(5) if appropriate, the provision of an opportunity for a 
        fresh start for the individual that such foreign proceeding 
        concerns.
``Sec. 1508. Interpretation
    ``In interpreting this chapter, the court shall consider its 
international origin, and the need to promote an application of this 
chapter that is consistent with the application of similar statutes 
adopted by foreign jurisdictions.

``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``Sec. 1509. Right of direct access
    ``(a) A foreign representative may commence a case under section 
1504 by filing directly with the court a petition for recognition of a 
foreign proceeding under section 1515.
    ``(b) If the court grants recognition under section 1515, and 
subject to any limitations that the court may impose consistent with 
the policy of this chapter--
            ``(1) the foreign representative has the capacity to sue 
        and be sued in a court in the United States;
            ``(2) the foreign representative may apply directly to a 
        court in the United States for appropriate relief in that 
        court; and
            ``(3) a court in the United States shall grant comity or 
        cooperation to the foreign representative.
    ``(c) A request for comity or cooperation by a foreign 
representative in a court in the United States other than the court 
which granted recognition shall be accompanied by a certified copy of 
an order granting recognition under section 1517.
    ``(d) If the court denies recognition under this chapter, the court 
may issue any appropriate order necessary to prevent the foreign 
representative from obtaining comity or cooperation from courts in the 
United States.
    ``(e) Whether or not the court grants recognition, and subject to 
sections 306 and 1510, a foreign representative is subject to 
applicable nonbankruptcy law.
    ``(f) Notwithstanding any other provision of this section, the 
failure of a foreign representative to commence a case or to obtain 
recognition under this chapter does not affect any right the foreign 
representative may have to sue in a court in the United States to 
collect or recover a claim which is the property of the debtor.
``Sec. 1510. Limited jurisdiction
    ``The sole fact that a foreign representative files a petition 
under section 1515 does not subject the foreign representative to the 
jurisdiction of any court in the United States for any other purpose.
``Sec. 1511. Commencement of case under section 301 or 303
    ``(a) Upon recognition, a foreign representative may commence--
            ``(1) an involuntary case under section 303; or
            ``(2) a voluntary case under section 301 or 302, if the 
        foreign proceeding is a foreign main proceeding.
    ``(b) The petition commencing a case under subsection (a) must be 
accompanied by a certified copy of an order granting recognition. The 
court where the petition for recognition has been filed must be advised 
of the foreign representative's intent to commence a case under 
subsection (a) prior to such commencement.
``Sec. 1512. Participation of a foreign representative in a case under 
              this title
    ``Upon recognition of a foreign proceeding, the foreign 
representative in the recognized proceeding is entitled to participate 
as a party in interest in a case regarding the debtor under this title.
``Sec. 1513. Access of foreign creditors to a case under this title
    ``(a) Foreign creditors have the same rights regarding the 
commencement of, and participation in, a case under this title as 
domestic creditors.
    ``(b)(1) Subsection (a) does not change or codify present law as to 
the priority of claims under section 507 or 726 of this title, except 
that the claim of a foreign creditor under those sections shall not be 
given a lower priority than that of general unsecured claims without 
priority solely because the holder of such claim is a foreign creditor.
    ``(2)(A) Subsection (a) and paragraph (1) do not change or codify 
present law as to the allowability of foreign revenue claims or other 
foreign public law claims in a proceeding under this title.
    ``(B) Allowance and priority as to a foreign tax claim or other 
foreign public law claim shall be governed by any applicable tax treaty 
of the United States, under the conditions and circumstances specified 
therein.
``Sec. 1514. Notification to foreign creditors concerning a case under 
              this title
    ``(a) Whenever in a case under this title notice is to be given to 
creditors generally or to any class or category of creditors, such 
notice shall also be given to the known creditors generally, or to 
creditors in the notified class or category, that do not have addresses 
in the United States. The court may order that appropriate steps be 
taken with a view to notifying any creditor whose address is not yet 
known.
    ``(b) Such notification to creditors with foreign addresses 
described in subsection (a) shall be given individually, unless the 
court considers that, under the circumstances, some other form of 
notification would be more appropriate. No letter or other formality is 
required.
    ``(c) When a notification of commencement of a case is to be given 
to foreign creditors, the notification shall--
            ``(1) indicate the time period for filing proofs of claim 
        and specify the place for their filing;
            ``(2) indicate whether secured creditors need to file their 
        proofs of claim; and
            ``(3) contain any other information required to be included 
        in such a notification to creditors under this title and the 
        orders of the court.
    ``(d) Any rule of procedure or order of the court as to notice or 
the filing of a claim shall provide such additional time to creditors 
with foreign addresses as is reasonable under the circumstances.

    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``Sec. 1515. Application for recognition
    ``(a) A foreign representative applies to the court for recognition 
of the foreign proceeding in which the foreign representative has been 
appointed by filing a petition for recognition.
    ``(b) A petition for recognition shall be accompanied by--
            ``(1) a certified copy of the decision commencing the 
        foreign proceeding and appointing the foreign representative;
            ``(2) a certificate from the foreign court affirming the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative; or
            ``(3) in the absence of evidence referred to in paragraphs 
        (1) and (2), any other evidence acceptable to the court of the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative.
    ``(c) A petition for recognition shall also be accompanied by a 
statement identifying all foreign proceedings with respect to the 
debtor that are known to the foreign representative.
    ``(d) The documents referred to in paragraphs (1) and (2) of 
subsection (b) shall be translated into English. The court may require 
a translation into English of additional documents.
``Sec. 1516. Presumptions concerning recognition
    ``(a) If the decision or certificate referred to in section 1515(b) 
indicates that the foreign proceeding is a foreign proceeding and that 
the person or body is a foreign representative, the court is entitled 
to so presume.
    ``(b) The court is entitled to presume that documents submitted in 
support of the petition for recognition are authentic, whether or not 
they have been legalized.
    ``(c) In the absence of evidence to the contrary, the debtor's 
registered office, or habitual residence in the case of an individual, 
is presumed to be the center of the debtor's main interests.
``Sec. 1517. Order granting recognition
    ``(a) Subject to section 1506, after notice and a hearing, an order 
recognizing a foreign proceeding shall be entered if--
            ``(1) the foreign proceeding for which recognition is 
        sought is a foreign main proceeding or foreign nonmain 
        proceeding within the meaning of section 1502;
            ``(2) the foreign representative applying for recognition 
        is a person or body; and
            ``(3) the petition meets the requirements of section 1515.
    ``(b) The foreign proceeding shall be recognized--
            ``(1) as a foreign main proceeding if it is taking place in 
        the country where the debtor has the center of its main 
        interests; or
            ``(2) as a foreign nonmain proceeding if the debtor has an 
        establishment within the meaning of section 1502 in the foreign 
        country where the proceeding is pending.
    ``(c) A petition for recognition of a foreign proceeding shall be 
decided upon at the earliest possible time. Entry of an order 
recognizing a foreign proceeding constitutes recognition under this 
chapter.
    ``(d) The provisions of this subchapter do not prevent modification 
or termination of recognition if it is shown that the grounds for 
granting it were fully or partially lacking or have ceased to exist, 
but in considering such action the court shall give due weight to 
possible prejudice to parties that have relied upon the order granting 
recognition. The case under this chapter may be closed in the manner 
prescribed under section 350.
``Sec. 1518. Subsequent information
    ``From the time of filing the petition for recognition of the 
foreign proceeding, the foreign representative shall file with the 
court promptly a notice of change of status concerning--
            ``(1) any substantial change in the status of the foreign 
        proceeding or the status of the foreign representative's 
        appointment; and
            ``(2) any other foreign proceeding regarding the debtor 
        that becomes known to the foreign representative.
``Sec. 1519. Relief that may be granted upon filing petition for 
              recognition
    ``(a) From the time of filing a petition for recognition until the 
court rules on the petition, the court may, at the request of the 
foreign representative, where relief is urgently needed to protect the 
assets of the debtor or the interests of the creditors, grant relief of 
a provisional nature, including--
            ``(1) staying execution against the debtor's assets;
            ``(2) entrusting the administration or realization of all 
        or part of the debtor's assets located in the United States to 
        the foreign representative or another person authorized by the 
        court, including an examiner, in order to protect and preserve 
        the value of assets that, by their nature or because of other 
        circumstances, are perishable, susceptible to devaluation or 
        otherwise in jeopardy; and
            ``(3) any relief referred to in paragraph (3), (4), or (7) 
        of section 1521(a).
    ``(b) Unless extended under section 1521(a)(6), the relief granted 
under this section terminates when the petition for recognition is 
granted.
    ``(c) It is a ground for denial of relief under this section that 
such relief would interfere with the administration of a foreign main 
proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under this section.
    ``(f) The exercise of rights not subject to the stay arising under 
section 362(a) pursuant to paragraph (6), (7), (17), or (27) of section 
362(b) or pursuant to section 362(n) shall not be stayed by any order 
of a court or administrative agency in any proceeding under this 
chapter.
``Sec. 1520. Effects of recognition of a foreign main proceeding
    ``(a) Upon recognition of a foreign proceeding that is a foreign 
main proceeding--
            ``(1) sections 361 and 362 apply with respect to the debtor 
        and that property of the debtor that is within the territorial 
        jurisdiction of the United States;
            ``(2) sections 363, 549, and 552 of this title apply to a 
        transfer of an interest of the debtor in property that is 
        within the territorial jurisdiction of the United States to the 
        same extent that the sections would apply to property of an 
        estate;
            ``(3) unless the court orders otherwise, the foreign 
        representative may operate the debtor's business and may 
        exercise the rights and powers of a trustee under and to the 
        extent provided by sections 363 and 552; and
            ``(4) section 552 applies to property of the debtor that is 
        within the territorial jurisdiction of the United States.
    ``(b) Subsection (a) does not affect the right to commence an 
individual action or proceeding in a foreign country to the extent 
necessary to preserve a claim against the debtor.
    ``(c) Subsection (a) does not affect the right of a foreign 
representative or an entity to file a petition commencing a case under 
this title or the right of any party to file claims or take other 
proper actions in such a case.
``Sec. 1521. Relief that may be granted upon recognition
    ``(a) Upon recognition of a foreign proceeding, whether main or 
nonmain, where necessary to effectuate the purpose of this chapter and 
to protect the assets of the debtor or the interests of the creditors, 
the court may, at the request of the foreign representative, grant any 
appropriate relief, including--
            ``(1) staying the commencement or continuation of an 
        individual action or proceeding concerning the debtor's assets, 
        rights, obligations or liabilities to the extent they have not 
        been stayed under section 1520(a);
            ``(2) staying execution against the debtor's assets to the 
        extent it has not been stayed under section 1520(a);
            ``(3) suspending the right to transfer, encumber or 
        otherwise dispose of any assets of the debtor to the extent 
        this right has not been suspended under section 1520(a);
            ``(4) providing for the examination of witnesses, the 
        taking of evidence or the delivery of information concerning 
        the debtor's assets, affairs, rights, obligations or 
        liabilities;
            ``(5) entrusting the administration or realization of all 
        or part of the debtor's assets within the territorial 
        jurisdiction of the United States to the foreign representative 
        or another person, including an examiner, authorized by the 
        court;
            ``(6) extending relief granted under section 1519(a); and
            ``(7) granting any additional relief that may be available 
        to a trustee, except for relief available under sections 522, 
        544, 545, 547, 548, 550, and 724(a).
    ``(b) Upon recognition of a foreign proceeding, whether main or 
nonmain, the court may, at the request of the foreign representative, 
entrust the distribution of all or part of the debtor's assets located 
in the United States to the foreign representative or another person, 
including an examiner, authorized by the court, provided that the court 
is satisfied that the interests of creditors in the United States are 
sufficiently protected.
    ``(c) In granting relief under this section to a representative of 
a foreign nonmain proceeding, the court must be satisfied that the 
relief relates to assets that, under the law of the United States, 
should be administered in the foreign nonmain proceeding or concerns 
information required in that proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under paragraphs (1), (2), (3), and 
(6) of subsection (a).
    ``(f) The exercise of rights not subject to the stay arising under 
section 362(a) pursuant to paragraph (6), (7), (17), or (27) of section 
362(b) or pursuant to section 362(n) shall not be stayed by any order 
of a court or administrative agency in any proceeding under this 
chapter.
``Sec. 1522. Protection of creditors and other interested persons
    ``(a) The court may grant relief under section 1519 or 1521, or may 
modify or terminate relief under subsection (c), only if the interests 
of the creditors and other interested entities, including the debtor, 
are sufficiently protected.
    ``(b) The court may subject relief granted under section 1519 or 
1521, or the operation of the debtor's business under section 
1520(a)(3) of this title, to conditions it considers appropriate, 
including the giving of security or the filing of a bond.
    ``(c) The court may, at the request of the foreign representative 
or an entity affected by relief granted under section 1519 or 1521, or 
at its own motion, modify or terminate such relief.
    ``(d) Section 1104(d) shall apply to the appointment of an examiner 
under this chapter. Any examiner shall comply with the qualification 
requirements imposed on a trustee by section 322.
``Sec. 1523. Actions to avoid acts detrimental to creditors
    ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a case concerning the debtor pending 
under another chapter of this title to initiate actions under sections 
522, 544, 545, 547, 548, 550, 553, and 724(a).
    ``(b) When the foreign proceeding is a foreign nonmain proceeding, 
the court must be satisfied that an action under subsection (a) relates 
to assets that, under United States law, should be administered in the 
foreign nonmain proceeding.
``Sec. 1524. Intervention by a foreign representative
    ``Upon recognition of a foreign proceeding, the foreign 
representative may intervene in any proceedings in a State or Federal 
court in the United States in which the debtor is a party.

     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``Sec. 1525. Cooperation and direct communication between the court and 
              foreign courts or foreign representatives
    ``(a) Consistent with section 1501, the court shall cooperate to 
the maximum extent possible with foreign courts or foreign 
representatives, either directly or through the trustee.
    ``(b) The court is entitled to communicate directly with, or to 
request information or assistance directly from, foreign courts or 
foreign representatives, subject to the rights of parties in interest 
to notice and participation.
``Sec. 1526. Cooperation and direct communication between the trustee 
              and foreign courts or foreign representatives
    ``(a) Consistent with section 1501, the trustee or other person, 
including an examiner, authorized by the court, shall, subject to the 
supervision of the court, cooperate to the maximum extent possible with 
foreign courts or foreign representatives.
    ``(b) The trustee or other person, including an examiner, 
authorized by the court is entitled, subject to the supervision of the 
court, to communicate directly with foreign courts or foreign 
representatives.
``Sec. 1527. Forms of cooperation
    ``Cooperation referred to in sections 1525 and 1526 may be 
implemented by any appropriate means, including--
            ``(1) appointment of a person or body, including an 
        examiner, to act at the direction of the court;
            ``(2) communication of information by any means considered 
        appropriate by the court;
            ``(3) coordination of the administration and supervision of 
        the debtor's assets and affairs;
            ``(4) approval or implementation of agreements concerning 
        the coordination of proceedings; and
            ``(5) coordination of concurrent proceedings regarding the 
        same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``Sec. 1528. Commencement of a case under this title after recognition 
              of a foreign main proceeding
    ``After recognition of a foreign main proceeding, a case under 
another chapter of this title may be commenced only if the debtor has 
assets in the United States. The effects of such case shall be 
restricted to the assets of the debtor that are within the territorial 
jurisdiction of the United States and, to the extent necessary to 
implement cooperation and coordination under sections 1525, 1526, and 
1527, to other assets of the debtor that are within the jurisdiction of 
the court under sections 541(a) of this title, and 1334(e) of title 28, 
to the extent that such other assets are not subject to the 
jurisdiction and control of a foreign proceeding that has been 
recognized under this chapter.
``Sec. 1529. Coordination of a case under this title and a foreign 
              proceeding
    ``If a foreign proceeding and a case under another chapter of this 
title are taking place concurrently regarding the same debtor, the 
court shall seek cooperation and coordination under sections 1525, 
1526, and 1527, and the following shall apply:
            ``(1) If the case in the United States is taking place at 
        the time the petition for recognition of the foreign proceeding 
        is filed--
                    ``(A) any relief granted under section 1519 or 1521 
                must be consistent with the relief granted in the case 
                in the United States; and
                    ``(B) even if the foreign proceeding is recognized 
                as a foreign main proceeding, section 1520 does not 
                apply.
            ``(2) If a case in the United States under this title 
        commences after recognition, or after the filing of the 
        petition for recognition, of the foreign proceeding--
                    ``(A) any relief in effect under section 1519 or 
                1521 shall be reviewed by the court and shall be 
                modified or terminated if inconsistent with the case in 
                the United States; and
                    ``(B) if the foreign proceeding is a foreign main 
                proceeding, the stay and suspension referred to in 
                section 1520(a) shall be modified or terminated if 
                inconsistent with the relief granted in the case in the 
                United States.
            ``(3) In granting, extending, or modifying relief granted 
        to a representative of a foreign nonmain proceeding, the court 
        must be satisfied that the relief relates to assets that, under 
        the laws of the United States, should be administered in the 
        foreign nonmain proceeding or concerns information required in 
        that proceeding.
            ``(4) In achieving cooperation and coordination under 
        sections 1528 and 1529, the court may grant any of the relief 
        authorized under section 305.
``Sec. 1530. Coordination of more than 1 foreign proceeding
    ``In matters referred to in section 1501, with respect to more than 
1 foreign proceeding regarding the debtor, the court shall seek 
cooperation and coordination under sections 1525, 1526, and 1527, and 
the following shall apply:
            ``(1) Any relief granted under section 1519 or 1521 to a 
        representative of a foreign nonmain proceeding after 
        recognition of a foreign main proceeding must be consistent 
        with the foreign main proceeding.
            ``(2) If a foreign main proceeding is recognized after 
        recognition, or after the filing of a petition for recognition, 
        of a foreign nonmain proceeding, any relief in effect under 
        section 1519 or 1521 shall be reviewed by the court and shall 
        be modified or terminated if inconsistent with the foreign main 
        proceeding.
            ``(3) If, after recognition of a foreign nonmain 
        proceeding, another foreign nonmain proceeding is recognized, 
        the court shall grant, modify, or terminate relief for the 
        purpose of facilitating coordination of the proceedings.
``Sec. 1531. Presumption of insolvency based on recognition of a 
              foreign main proceeding
    ``In the absence of evidence to the contrary, recognition of a 
foreign main proceeding is, for the purpose of commencing a proceeding 
under section 303, proof that the debtor is generally not paying its 
debts as such debts become due.
``Sec. 1532. Rule of payment in concurrent proceedings
    ``Without prejudice to secured claims or rights in rem, a creditor 
who has received payment with respect to its claim in a foreign 
proceeding pursuant to a law relating to insolvency may not receive a 
payment for the same claim in a case under any other chapter of this 
title regarding the debtor, so long as the payment to other creditors 
of the same class is proportionately less than the payment the creditor 
has already received.''.
    (b) Clerical Amendment.--The table of chapters for title 11, United 
States Code, is amended by inserting after the item relating to chapter 
13 the following:

``15. Ancillary and Other Cross-Border Cases................    1501''.

SEC. 802. OTHER AMENDMENTS TO TITLES 11 AND 28, UNITED STATES CODE.

    (a) Applicability of Chapters.--Section 103 of title 11, United 
States Code, is amended--
            (1) in subsection (a), by inserting before the period the 
        following: ``, and this chapter, sections 307, 362(n), 555 
        through 557, and 559 through 562 apply in a case under chapter 
        15''; and
            (2) by adding at the end the following:
    ``(k) Chapter 15 applies only in a case under such chapter, except 
that--
            ``(1) sections 1505, 1513, and 1514 apply in all cases 
        under this title; and
            ``(2) section 1509 applies whether or not a case under this 
        title is pending.''.
    (b) Definitions.--Section 101 of title 11, United States Code, is 
amended by striking paragraphs (23) and (24) and inserting the 
following:
            ``(23) `foreign proceeding' means a collective judicial or 
        administrative proceeding in a foreign country, including an 
        interim proceeding, under a law relating to insolvency or 
        adjustment of debt in which proceeding the assets and affairs 
        of the debtor are subject to control or supervision by a 
        foreign court, for the purpose of reorganization or 
        liquidation;
            ``(24) `foreign representative' means a person or body, 
        including a person or body appointed on an interim basis, 
        authorized in a foreign proceeding to administer the 
        reorganization or the liquidation of the debtor's assets or 
        affairs or to act as a representative of the foreign 
        proceeding;''.
    (c) Amendments to Title 28, United States Code.--
            (1) Procedures.--Section 157(b)(2) of title 28, United 
        States Code, is amended--
                    (A) in subparagraph (N), by striking ``and'' at the 
                end;
                    (B) in subparagraph (O), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(P) recognition of foreign proceedings and other matters 
        under chapter 15 of title 11.''.
            (2) Bankruptcy cases and proceedings.--Section 1334(c) of 
        title 28, United States Code, is amended by striking ``Nothing 
        in'' and inserting ``Except with respect to a case under 
        chapter 15 of title 11, nothing in''.
            (3) Duties of trustees.--Section 586(a)(3) of title 28, 
        United States Code, is amended by striking ``or 13'' and 
        inserting ``13, or 15''.
            (4) Venue of cases ancillary to foreign proceedings.--
        Section 1410 of title 28, United States Code, is amended to 
        read as follows:
``Sec. 1410. Venue of cases ancillary to foreign proceedings
    ``A case under chapter 15 of title 11 may be commenced in the 
district court of the United States for the district--
            ``(1) in which the debtor has its principal place of 
        business or principal assets in the United States;
            ``(2) if the debtor does not have a place of business or 
        assets in the United States, in which there is pending against 
        the debtor an action or proceeding in a Federal or State court; 
        or
            ``(3) in a case other than those specified in paragraph (1) 
        or (2), in which venue will be consistent with the interests of 
        justice and the convenience of the parties, having regard to 
        the relief sought by the foreign representative.''.
    (d) Other Sections of Title 11.--Title 11 of the United States Code 
is amended--
            (1) in section 109(b), by striking paragraph (3) and 
        inserting the following:
            ``(3)(A) a foreign insurance company, engaged in such 
        business in the United States; or
            ``(B) a foreign bank, savings bank, cooperative bank, 
        savings and loan association, building and loan association, or 
        credit union, that has a branch or agency (as defined in 
        section 1(b) of the International Banking Act of 1978 in the 
        United States.'';
            (2) in section 303, by striking subsection (k);
            (3) by striking section 304;
            (4) in the table of sections for chapter 3 by striking the 
        item relating to section 304;
            (5) in section 306 by striking ``, 304,'' each place it 
        appears;
            (6) in section 305(a) by striking paragraph (2) and 
        inserting the following:
            ``(2)(A) a petition under section 1515 of this title for 
        recognition of a foreign proceeding has been granted; and
            ``(B) the purposes of chapter 15 of this title would be 
        best served by such dismissal or suspension.''; and
            (7) in section 508--
                    (A) by striking subsection (a); and
                    (B) in subsection (b), by striking ``(b)''.

                TITLE IX--FINANCIAL CONTRACT PROVISIONS

SEC. 901. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS 
              OF INSURED DEPOSITORY INSTITUTIONS.

    (a) Definition of Qualified Financial Contract.--Section 
11(e)(8)(D) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)) is amended--
            (1) by striking ``subsection--'' and inserting 
        ``subsection, the following definitions shall apply:''; and
            (2) in clause (i), by inserting ``, resolution, or order'' 
        after ``any similar agreement that the Corporation determines 
        by regulation''.
    (b) Definition of Securities Contract.--Section 11(e)(8)(D)(ii) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(ii)) is 
amended to read as follows:
                            ``(ii) Securities contract.--The term 
                        `securities contract'--
                                    ``(I) means a contract for the 
                                purchase, sale, or loan of a security, 
                                a certificate of deposit, a mortgage 
                                loan, or any interest in a mortgage 
                                loan, a group or index of securities, 
                                certificates of deposit, or mortgage 
                                loans or interests therein (including 
                                any interest therein or based on the 
                                value thereof) or any option on any of 
                                the foregoing, including any option to 
                                purchase or sell any such security, 
                                certificate of deposit, mortgage loan, 
                                interest, group or index, or option, 
                                and including any repurchase or reverse 
                                repurchase transaction on any such 
                                security, certificate of deposit, 
                                mortgage loan, interest, group or 
                                index, or option;
                                    ``(II) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a participation in a 
                                commercial mortgage loan unless the 
                                Corporation determines by regulation, 
                                resolution, or order to include any 
                                such agreement within the meaning of 
                                such term;
                                    ``(III) means any option entered 
                                into on a national securities exchange 
                                relating to foreign currencies;
                                    ``(IV) means the guarantee by or to 
                                any securities clearing agency of any 
                                settlement of cash, securities, 
                                certificates of deposit, mortgage loans 
                                or interests therein, group or index of 
                                securities, certificates of deposit, or 
                                mortgage loans or interests therein 
                                (including any interest therein or 
                                based on the value thereof) or option 
                                on any of the foregoing, including any 
                                option to purchase or sell any such 
                                security, certificate of deposit, 
                                mortgage loan, interest, group or 
                                index, or option;
                                    ``(V) means any margin loan;
                                    ``(VI) means any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) means any combination of 
                                the agreements or transactions referred 
                                to in this clause;
                                    ``(VIII) means any option to enter 
                                into any agreement or transaction 
                                referred to in this clause;
                                    ``(IX) means a master agreement 
                                that provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), (V), (VI), (VII), or 
                                (VIII), together with all supplements 
                                to any such master agreement, without 
                                regard to whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a securities 
                                contract under this clause, except that 
                                the master agreement shall be 
                                considered to be a securities contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (III), (IV), (V), (VI), 
                                (VII), or (VIII); and
                                    ``(X) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in this clause, 
                                including any guarantee or 
                                reimbursement obligation in connection 
                                with any agreement or transaction 
                                referred to in this clause.''.
    (c) Definition of Commodity Contract.--Section 11(e)(8)(D)(iii) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iii)) is 
amended to read as follows:
                            ``(iii) Commodity contract.--The term 
                        `commodity contract' means--
                                    ``(I) with respect to a futures 
                                commission merchant, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade;
                                    ``(II) with respect to a foreign 
                                futures commission merchant, a foreign 
                                future;
                                    ``(III) with respect to a leverage 
                                transaction merchant, a leverage 
                                transaction;
                                    ``(IV) with respect to a clearing 
                                organization, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade that is cleared by such clearing 
                                organization, or commodity option 
                                traded on, or subject to the rules of, 
                                a contract market or board of trade 
                                that is cleared by such clearing 
                                organization;
                                    ``(V) with respect to a commodity 
                                options dealer, a commodity option;
                                    ``(VI) any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) any combination of the 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(VIII) any option to enter into 
                                any agreement or transaction referred 
                                to in this clause;
                                    ``(IX) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), (IV), (V), (VI), 
                                (VII), or (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                commodity contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a commodity 
                                contract under this clause only with 
                                respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (II), (III), (IV), (V), (VI), (VII), or 
                                (VIII); or
                                    ``(X) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in this clause, including 
                                any guarantee or reimbursement 
                                obligation in connection with any 
                                agreement or transaction referred to in 
                                this clause.''.
    (d) Definition of Forward Contract.--Section 11(e)(8)(D)(iv) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iv)) is amended 
to read as follows:
                            ``(iv) Forward contract.--The term `forward 
                        contract' means--
                                    ``(I) a contract (other than a 
                                commodity contract) for the purchase, 
                                sale, or transfer of a commodity or any 
                                similar good, article, service, right, 
                                or interest which is presently or in 
                                the future becomes the subject of 
                                dealing in the forward contract trade, 
                                or product or byproduct thereof, with a 
                                maturity date more than 2 days after 
                                the date the contract is entered into, 
                                including, a repurchase transaction, 
                                reverse repurchase transaction, 
                                consignment, lease, swap, hedge 
                                transaction, deposit, loan, option, 
                                allocated transaction, unallocated 
                                transaction, or any other similar 
                                agreement;
                                    ``(II) any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (III);
                                    ``(III) any option to enter into 
                                any agreement or transaction referred 
                                to in subclause (I) or (II);
                                    ``(IV) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclauses 
                                (I), (II), or (III), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                forward contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a forward contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), or (III); or
                                    ``(V) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in subclause (I), (II), 
                                (III), or (IV), including any guarantee 
                                or reimbursement obligation in 
                                connection with any agreement or 
                                transaction referred to in any such 
                                subclause.''.
    (e) Definition of Repurchase Agreement.--Section 11(e)(8)(D)(v) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(v)) is 
amended to read as follows:
                            ``(v) Repurchase agreement.--The term 
                        `repurchase agreement' (which definition also 
                        applies to a reverse repurchase agreement)--
                                    ``(I) means an agreement, including 
                                related terms, which provides for the 
                                transfer of one or more certificates of 
                                deposit, mortgage-related securities 
                                (as such term is defined in the 
                                Securities Exchange Act of 1934), 
                                mortgage loans, interests in mortgage-
                                related securities or mortgage loans, 
                                eligible bankers' acceptances, 
                                qualified foreign government securities 
                                or securities that are direct 
                                obligations of, or that are fully 
                                guaranteed by, the United States or any 
                                agency of the United States against the 
                                transfer of funds by the transferee of 
                                such certificates of deposit, eligible 
                                bankers' acceptances, securities, 
                                mortgage loans, or interests with a 
                                simultaneous agreement by such 
                                transferee to transfer to the 
                                transferor thereof certificates of 
                                deposit, eligible bankers' acceptances, 
                                securities, mortgage loans, or 
                                interests as described above, at a date 
                                certain not later than 1 year after 
                                such transfers or on demand, against 
                                the transfer of funds, or any other 
                                similar agreement;
                                    ``(II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial mortgage 
                                loan unless the Corporation determines 
                                by regulation, resolution, or order to 
                                include any such participation within 
                                the meaning of such term;
                                    ``(III) means any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (IV);
                                    ``(IV) means any option to enter 
                                into any agreement or transaction 
                                referred to in subclause (I) or (III);
                                    ``(V) means a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), or (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                repurchase agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a repurchase 
                                agreement under this subclause only 
                                with respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (III), or (IV); and
                                    ``(VI) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), or (V), including any 
                                guarantee or reimbursement obligation 
                                in connection with any agreement or 
                                transaction referred to in any such 
                                subclause.
                        For purposes of this clause, the term 
                        `qualified foreign government security' means a 
                        security that is a direct obligation of, or 
                        that is fully guaranteed by, the central 
                        government of a member of the Organization for 
                        Economic Cooperation and Development (as 
                        determined by regulation or order adopted by 
                        the appropriate Federal banking authority).''.
    (f) Definition of Swap Agreement.--Section 11(e)(8)(D)(vi) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(vi)) is amended 
to read as follows:
                            ``(vi) Swap agreement.--The term `swap 
                        agreement' means--
                                    ``(I) any agreement, including the 
                                terms and conditions incorporated by 
                                reference in any such agreement, which 
                                is an interest rate swap, option, 
                                future, or forward agreement, including 
                                a rate floor, rate cap, rate collar, 
                                cross-currency rate swap, and basis 
                                swap; a spot, same day-tomorrow, 
                                tomorrow-next, forward, or other 
                                foreign exchange or precious metals 
                                agreement; a currency swap, option, 
                                future, or forward agreement; an equity 
                                index or equity swap, option, future, 
                                or forward agreement; a debt index or 
                                debt swap, option, future, or forward 
                                agreement; a total return, credit 
                                spread or credit swap, option, future, 
                                or forward agreement; a commodity index 
                                or commodity swap, option, future, or 
                                forward agreement; or a weather swap, 
                                weather derivative, or weather option;
                                    ``(II) any agreement or transaction 
                                that is similar to any other agreement 
                                or transaction referred to in this 
                                clause and that is of a type that has 
                                been, is presently, or in the future 
                                becomes, the subject of recurrent 
                                dealings in the swap markets (including 
                                terms and conditions incorporated by 
                                reference in such agreement) and that 
                                is a forward, swap, future, or option 
                                on one or more rates, currencies, 
                                commodities, equity securities or other 
                                equity instruments, debt securities or 
                                other debt instruments, quantitative 
                                measures associated with an occurrence, 
                                extent of an occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic consequence, or 
                                economic or financial indices or 
                                measures of economic or financial risk 
                                or value;
                                    ``(III) any combination of 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(IV) any option to enter into any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(V) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), or (IV), together 
                                with all supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement contains an 
                                agreement or transaction that is not a 
                                swap agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a swap agreement 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), (III), or (IV); 
                                and
                                    ``(VI) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreements or 
                                transactions referred to in subclause 
                                (I), (II), (III), (IV), or (V), 
                                including any guarantee or 
                                reimbursement obligation in connection 
                                with any agreement or transaction 
                                referred to in any such subclause.
                        Such term is applicable for purposes of this 
                        subsection only and shall not be construed or 
                        applied so as to challenge or affect the 
                        characterization, definition, or treatment of 
                        any swap agreement under any other statute, 
                        regulation, or rule, including the Securities 
                        Act of 1933, the Securities Exchange Act of 
                        1934, the Public Utility Holding Company Act of 
                        1935, the Trust Indenture Act of 1939, the 
                        Investment Company Act of 1940, the Investment 
                        Advisers Act of 1940, the Securities Investor 
                        Protection Act of 1970, the Commodity Exchange 
                        Act, the Gramm-Leach-Bliley Act, and the Legal 
                        Certainty for Bank Products Act of 2000.''.
    (g) Definition of Transfer.--Section 11(e)(8)(D)(viii) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(viii)) is 
amended to read as follows:
                            ``(viii) Transfer.--The term `transfer' 
                        means every mode, direct or indirect, absolute 
                        or conditional, voluntary or involuntary, of 
                        disposing of or parting with property or with 
                        an interest in property, including retention of 
                        title as a security interest and foreclosure of 
                        the depository institution's equity of 
                        redemption.''.
    (h) Treatment of Qualified Financial Contracts.--Section 11(e)(8) 
of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)) is 
amended--
            (1) in subparagraph (A)--
                    (A) by striking ``paragraph (10)'' and inserting 
                ``paragraphs (9) and (10)'';
                    (B) in clause (i), by striking ``to cause the 
                termination or liquidation'' and inserting ``such 
                person has to cause the termination, liquidation, or 
                acceleration''; and
                    (C) by striking clause (ii) and inserting the 
                following:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to one or more qualified 
                        financial contracts described in clause (i);''; 
                        and
            (2) in subparagraph (E), by striking clause (ii) and 
        inserting the following:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to one or more qualified 
                        financial contracts described in clause (i);''.
    (i) Avoidance of Transfers.--Section 11(e)(8)(C)(i) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(e)(8)(C)(i)) is amended by 
inserting ``section 5242 of the Revised Statutes of the United States 
or any other Federal or State law relating to the avoidance of 
preferential or fraudulent transfers,'' before ``the Corporation''.

SEC. 902. AUTHORITY OF THE CORPORATION WITH RESPECT TO FAILED AND 
              FAILING INSTITUTIONS.

    (a) In General.--Section 11(e)(8) of the Federal Deposit Insurance 
Act (12 U.S.C. 1821(e)(8)) is amended--
            (1) in subparagraph (E), by striking ``other than paragraph 
        (12) of this subsection, subsection (d)(9)'' and inserting 
        ``other than subsections (d)(9) and (e)(10)''; and
            (2) by adding at the end the following new subparagraphs:
                    ``(F) Clarification.--No provision of law shall be 
                construed as limiting the right or power of the 
                Corporation, or authorizing any court or agency to 
                limit or delay, in any manner, the right or power of 
                the Corporation to transfer any qualified financial 
                contract in accordance with paragraphs (9) and (10) of 
                this subsection or to disaffirm or repudiate any such 
                contract in accordance with subsection (e)(1) of this 
                section.
                    ``(G) Walkaway clauses not effective.--
                            ``(i) In general.--Notwithstanding the 
                        provisions of subparagraphs (A) and (E), and 
                        sections 403 and 404 of the Federal Deposit 
                        Insurance Corporation Improvement Act of 1991, 
                        no walkaway clause shall be enforceable in a 
                        qualified financial contract of an insured 
                        depository institution in default.
                            ``(ii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means a provision in a 
                        qualified financial contract that, after 
                        calculation of a value of a party's position or 
                        an amount due to or from 1 of the parties in 
                        accordance with its terms upon termination, 
                        liquidation, or acceleration of the qualified 
                        financial contract, either does not create a 
                        payment obligation of a party or extinguishes a 
                        payment obligation of a party in whole or in 
                        part solely because of such party's status as a 
                        nondefaulting party.''.
    (b) Technical and Conforming Amendment.--Section 11(e)(12)(A) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(12)(A)) is amended 
by inserting ``or the exercise of rights or powers by'' after ``the 
appointment of''.

SEC. 903. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED FINANCIAL 
              CONTRACTS.

    (a) Transfers of Qualified Financial Contracts to Financial 
Institutions.--Section 11(e)(9) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(e)(9)) is amended to read as follows:
            ``(9) Transfer of qualified financial contracts.--
                    ``(A) In general.--In making any transfer of assets 
                or liabilities of a depository institution in default 
                which includes any qualified financial contract, the 
                conservator or receiver for such depository institution 
                shall either--
                            ``(i) transfer to one financial 
                        institution, other than a financial institution 
                        for which a conservator, receiver, trustee in 
                        bankruptcy, or other legal custodian has been 
                        appointed or which is otherwise the subject of 
                        a bankruptcy or insolvency proceeding--
                                    ``(I) all qualified financial 
                                contracts between any person or any 
                                affiliate of such person and the 
                                depository institution in default;
                                    ``(II) all claims of such person or 
                                any affiliate of such person against 
                                such depository institution under any 
                                such contract (other than any claim 
                                which, under the terms of any such 
                                contract, is subordinated to the claims 
                                of general unsecured creditors of such 
                                institution);
                                    ``(III) all claims of such 
                                depository institution against such 
                                person or any affiliate of such person 
                                under any such contract; and
                                    ``(IV) all property securing or any 
                                other credit enhancement for any 
                                contract described in subclause (I) or 
                                any claim described in subclause (II) 
                                or (III) under any such contract; or
                            ``(ii) transfer none of the qualified 
                        financial contracts, claims, property or other 
                        credit enhancement referred to in clause (i) 
                        (with respect to such person and any affiliate 
                        of such person).
                    ``(B) Transfer to foreign bank, foreign financial 
                institution, or branch or agency of a foreign bank or 
                financial institution.--In transferring any qualified 
                financial contracts and related claims and property 
                under subparagraph (A)(i), the conservator or receiver 
                for the depository institution shall not make such 
                transfer to a foreign bank, financial institution 
                organized under the laws of a foreign country, or a 
                branch or agency of a foreign bank or financial 
                institution unless, under the law applicable to such 
                bank, financial institution, branch or agency, to the 
                qualified financial contracts, and to any netting 
                contract, any security agreement or arrangement or 
                other credit enhancement related to one or more 
                qualified financial contracts, the contractual rights 
                of the parties to such qualified financial contracts, 
                netting contracts, security agreements or arrangements, 
                or other credit enhancements are enforceable 
                substantially to the same extent as permitted under 
                this section.
                    ``(C) Transfer of contracts subject to the rules of 
                a clearing organization.--In the event that a 
                conservator or receiver transfers any qualified 
                financial contract and related claims, property, and 
                credit enhancements pursuant to subparagraph (A)(i) and 
                such contract is cleared by or subject to the rules of 
                a clearing organization, the clearing organization 
                shall not be required to accept the transferee as a 
                member by virtue of the transfer.
                    ``(D) Definitions.--For purposes of this paragraph, 
                the term `financial institution' means a broker or 
                dealer, a depository institution, a futures commission 
                merchant, or any other institution, as determined by 
                the Corporation by regulation to be a financial 
                institution, and the term `clearing organization' has 
                the same meaning as in section 402 of the Federal 
                Deposit Insurance Corporation Improvement Act of 
                1991.''.
    (b) Notice to Qualified Financial Contract Counterparties.--Section 
11(e)(10)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(10)(A)) is amended in the material immediately following clause 
(ii) by striking ``the conservator'' and all that follows through the 
period and inserting the following: ``the conservator or receiver shall 
notify any person who is a party to any such contract of such transfer 
by 5:00 p.m. (eastern time) on the business day following the date of 
the appointment of the receiver in the case of a receivership, or the 
business day following such transfer in the case of a 
conservatorship.''.
    (c) Rights Against Receiver and Treatment of Bridge Banks.--Section 
11(e)(10) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(10)) 
is amended--
            (1) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (A) the following new 
        subparagraphs:
                    ``(B) Certain rights not enforceable.--
                            ``(i) Receivership.--A person who is a 
                        party to a qualified financial contract with an 
                        insured depository institution may not exercise 
                        any right that such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(A) of this subsection or section 403 or 404 
                        of the Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by reason of or 
                        incidental to the appointment of a receiver for 
                        the depository institution (or the insolvency 
                        or financial condition of the depository 
                        institution for which the receiver has been 
                        appointed)--
                                    ``(I) until 5:00 p.m. (eastern 
                                time) on the business day following the 
                                date of the appointment of the 
                                receiver; or
                                    ``(II) after the person has 
                                received notice that the contract has 
                                been transferred pursuant to paragraph 
                                (9)(A).
                            ``(ii) Conservatorship.--A person who is a 
                        party to a qualified financial contract with an 
                        insured depository institution may not exercise 
                        any right that such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(E) of this subsection or section 403 or 404 
                        of the Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by reason of or 
                        incidental to the appointment of a conservator 
                        for the depository institution (or the 
                        insolvency or financial condition of the 
                        depository institution for which the 
                        conservator has been appointed).
                            ``(iii) Notice.--For purposes of this 
                        paragraph, the Corporation as receiver or 
                        conservator of an insured depository 
                        institution shall be deemed to have notified a 
                        person who is a party to a qualified financial 
                        contract with such depository institution if 
                        the Corporation has taken steps reasonably 
                        calculated to provide notice to such person by 
                        the time specified in subparagraph (A).
                    ``(C) Treatment of bridge banks.--The following 
                institutions shall not be considered to be a financial 
                institution for which a conservator, receiver, trustee 
                in bankruptcy, or other legal custodian has been 
                appointed or which is otherwise the subject of a 
                bankruptcy or insolvency proceeding for purposes of 
                paragraph (9):
                            ``(i) A bridge bank.
                            ``(ii) A depository institution organized 
                        by the Corporation, for which a conservator is 
                        appointed either--
                                    ``(I) immediately upon the 
                                organization of the institution; or
                                    ``(II) at the time of a purchase 
                                and assumption transaction between the 
                                depository institution and the 
                                Corporation as receiver for a 
                                depository institution in default.''.

SEC. 904. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF 
              QUALIFIED FINANCIAL CONTRACTS.

    Section 11(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)) is amended--
            (1) by redesignating paragraphs (11) through (15) as 
        paragraphs (12) through (16), respectively;
            (2) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) Disaffirmance or repudiation of qualified financial 
        contracts.--In exercising the rights of disaffirmance or 
        repudiation of a conservator or receiver with respect to any 
        qualified financial contract to which an insured depository 
        institution is a party, the conservator or receiver for such 
        institution shall either--
                    ``(A) disaffirm or repudiate all qualified 
                financial contracts between--
                            ``(i) any person or any affiliate of such 
                        person; and
                            ``(ii) the depository institution in 
                        default; or
                    ``(B) disaffirm or repudiate none of the qualified 
                financial contracts referred to in subparagraph (A) 
                (with respect to such person or any affiliate of such 
                person).''; and
            (3) by adding at the end the following new paragraph:
            ``(17) Savings clause.--The meanings of terms used in this 
        subsection are applicable for purposes of this subsection only, 
        and shall not be construed or applied so as to challenge or 
        affect the characterization, definition, or treatment of any 
        similar terms under any other statute, regulation, or rule, 
        including the Gramm-Leach-Bliley Act, the Legal Certainty for 
        Bank Products Act of 2000, the securities laws (as that term is 
        defined in section 3(a)(47) of the Securities Exchange Act of 
        1934), and the Commodity Exchange Act.''.

SEC. 905. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.

    Section 11(e)(8)(D)(vii) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(8)(D)(vii)) is amended to read as follows:
                            ``(vii) Treatment of master agreement as 
                        one agreement.--Any master agreement for any 
                        contract or agreement described in any 
                        preceding clause of this subparagraph (or any 
                        master agreement for such master agreement or 
                        agreements), together with all supplements to 
                        such master agreement, shall be treated as a 
                        single agreement and a single qualified 
                        financial contract. If a master agreement 
                        contains provisions relating to agreements or 
                        transactions that are not themselves qualified 
                        financial contracts, the master agreement shall 
                        be deemed to be a qualified financial contract 
                        only with respect to those transactions that 
                        are themselves qualified financial 
                        contracts.''.

SEC. 906. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 
              1991.

    (a) Definitions.--Section 402 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4402) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)(ii), by inserting before 
                the semicolon ``, or is exempt from such registration 
                by order of the Securities and Exchange Commission''; 
                and
                    (B) in subparagraph (B), by inserting before the 
                period ``, that has been granted an exemption under 
                section 4(c)(1) of the Commodity Exchange Act, or that 
                is a multilateral clearing organization (as defined in 
                section 408 of this Act)'';
            (2) in paragraph (6)--
                    (A) by redesignating subparagraphs (B) through (D) 
                as subparagraphs (C) through (E), respectively;
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) an uninsured national bank or an uninsured 
                State bank that is a member of the Federal Reserve 
                System, if the national bank or State member bank is 
                not eligible to make application to become an insured 
                bank under section 5 of the Federal Deposit Insurance 
                Act;''; and
                    (C) by amending subparagraph (C), so redesignated, 
                to read as follows:
                    ``(C) a branch or agency of a foreign bank, a 
                foreign bank and any branch or agency of the foreign 
                bank, or the foreign bank that established the branch 
                or agency, as those terms are defined in section 1(b) 
                of the International Banking Act of 1978;'';
            (3) in paragraph (11), by inserting before the period ``and 
        any other clearing organization with which such clearing 
        organization has a netting contract'';
            (4) by amending paragraph (14)(A)(i) to read as follows:
                            ``(i) means a contract or agreement between 
                        2 or more financial institutions, clearing 
                        organizations, or members that provides for 
                        netting present or future payment obligations 
                        or payment entitlements (including liquidation 
                        or close out values relating to such 
                        obligations or entitlements) among the parties 
                        to the agreement; and''; and
            (5) by adding at the end the following new paragraph:
            ``(15) Payment.--The term `payment' means a payment of 
        United States dollars, another currency, or a composite 
        currency, and a noncash delivery, including a payment or 
        delivery to liquidate an unmatured obligation.''.
    (b) Enforceability of Bilateral Netting Contracts.--Section 403 of 
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 4403) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) General Rule.--Notwithstanding any other provision of State 
or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act or any order 
authorized under section 5(b)(2) of the Securities Investor Protection 
Act of 1970), the covered contractual payment obligations and the 
covered contractual payment entitlements between any 2 financial 
institutions shall be netted in accordance with, and subject to the 
conditions of, the terms of any applicable netting contract (except as 
provided in section 561(b)(2) of title 11, United States Code).''; and
            (2) by adding at the end the following new subsection:
    ``(f) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to one or more netting contracts between any 2 financial institutions 
shall be enforceable in accordance with their terms (except as provided 
in section 561(b)(2) of title 11, United States Code), and shall not be 
stayed, avoided, or otherwise limited by any State or Federal law 
(other than paragraphs (8)(E), (8)(F), and (10)(B) of section 11(e) of 
the Federal Deposit Insurance Act and section 5(b)(2) of the Securities 
Investor Protection Act of 1970).''.
    (c) Enforceability of Clearing Organization Netting Contracts.--
Section 404 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 4404) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) General Rule.--Notwithstanding any other provision of State 
or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act and any order 
authorized under section 5(b)(2) of the Securities Investor Protection 
Act of 1970), the covered contractual payment obligations and the 
covered contractual payment entitlements of a member of a clearing 
organization to and from all other members of a clearing organization 
shall be netted in accordance with and subject to the conditions of any 
applicable netting contract (except as provided in section 561(b)(2) of 
title 11, United States Code).''; and
            (2) by adding at the end the following new subsection:
    ``(h) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to one or more netting contracts between any 2 members of a clearing 
organization shall be enforceable in accordance with their terms 
(except as provided in section 561(b)(2) of title 11, United States 
Code), and shall not be stayed, avoided, or otherwise limited by any 
State or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) 
of section 11(e) of the Federal Deposit Insurance Act and section 
5(b)(2) of the Securities Investor Protection Act of 1970).''.
    (d) Enforceability of Contracts With Uninsured National Banks, 
Uninsured Federal Branches and Agencies, Certain Uninsured State Member 
Banks, and Edge Act Corporations.--The Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4401 et seq.) is 
amended--
            (1) by redesignating section 407 as section 407A; and
            (2) by inserting after section 406 the following new 
        section:

``SEC. 407. TREATMENT OF CONTRACTS WITH UNINSURED NATIONAL BANKS, 
              UNINSURED FEDERAL BRANCHES AND AGENCIES, CERTAIN 
              UNINSURED STATE MEMBER BANKS, AND EDGE ACT CORPORATIONS.

    ``(a) In General.--Notwithstanding any other provision of law, 
paragraphs (8), (9), (10), and (11) of section 11(e) of the Federal 
Deposit Insurance Act shall apply to an uninsured national bank or 
uninsured Federal branch or Federal agency, a corporation chartered 
under section 25A of the Federal Reserve Act, or an uninsured State 
member bank which operates, or operates as, a multilateral clearing 
organization pursuant to section 409 of this Act, except that for such 
purpose--
            ``(1) any reference to the `Corporation as receiver' or 
        `the receiver or the Corporation' shall refer to the receiver 
        appointed by the Comptroller of the Currency in the case of an 
        uninsured national bank or uninsured Federal branch or agency, 
        or to the receiver appointed by the Board of Governors of the 
        Federal Reserve System in the case of a corporation chartered 
        under section 25A of the Federal Reserve Act or an uninsured 
        State member bank;
            ``(2) any reference to the `Corporation' (other than in 
        section 11(e)(8)(D) of such Act), the `Corporation, whether 
        acting as such or as conservator or receiver', a `receiver', or 
        a `conservator' shall refer to the receiver or conservator 
        appointed by the Comptroller of the Currency in the case of an 
        uninsured national bank or uninsured Federal branch or agency, 
        or to the receiver or conservator appointed by the Board of 
        Governors of the Federal Reserve System in the case of a 
        corporation chartered under section 25A of the Federal Reserve 
        Act or an uninsured State member bank; and
            ``(3) any reference to an `insured depository institution' 
        or `depository institution' shall refer to an uninsured 
        national bank, an uninsured Federal branch or Federal agency, a 
        corporation chartered under section 25A of the Federal Reserve 
        Act, or an uninsured State member bank which operates, or 
        operates as, a multilateral clearing organization pursuant to 
        section 409 of this Act.
    ``(b) Liability.--The liability of a receiver or conservator of an 
uninsured national bank, uninsured Federal branch or agency, a 
corporation chartered under section 25A of the Federal Reserve Act, or 
an uninsured State member bank which operates, or operates as, a 
multilateral clearing organization pursuant to section 409 of this Act, 
shall be determined in the same manner and subject to the same 
limitations that apply to receivers and conservators of insured 
depository institutions under section 11(e) of the Federal Deposit 
Insurance Act.
    ``(c) Regulatory Authority.--
            ``(1) In general.--The Comptroller of the Currency in the 
        case of an uninsured national bank or uninsured Federal branch 
        or agency and the Board of Governors of the Federal Reserve 
        System in the case of a corporation chartered under section 25A 
        of the Federal Reserve Act, or an uninsured State member bank 
        that operates, or operates as, a multilateral clearing 
        organization pursuant to section 409 of this Act, in 
        consultation with the Federal Deposit Insurance Corporation, 
        may each promulgate regulations solely to implement this 
        section.
            ``(2) Specific requirement.--In promulgating regulations, 
        limited solely to implementing paragraphs (8), (9), (10), and 
        (11) of section 11(e) of the Federal Deposit Insurance Act, the 
        Comptroller of the Currency and the Board of Governors of the 
        Federal Reserve System each shall ensure that the regulations 
        generally are consistent with the regulations and policies of 
        the Federal Deposit Insurance Corporation adopted pursuant to 
        the Federal Deposit Insurance Act.
    ``(d) Definitions.--For purposes of this section, the terms 
`Federal branch', `Federal agency', and `foreign bank' have the same 
meanings as in section 1(b) of the International Banking Act of 
1978.''.

SEC. 907. BANKRUPTCY LAW AMENDMENTS.

    (a) Definitions of Forward Contract, Repurchase Agreement, 
Securities Clearing Agency, Swap Agreement, Commodity Contract, and 
Securities Contract.--Title 11, United States Code, is amended--
            (1) in section 101--
                    (A) in paragraph (25)--
                            (i) by striking ``means a contract'' and 
                        inserting ``means--
                    ``(A) a contract'';
                            (ii) by striking ``, or any combination 
                        thereof or option thereon;'' and inserting ``, 
                        or any other similar agreement;''; and
                            (iii) by adding at the end the following:
                    ``(B) any combination of agreements or transactions 
                referred to in subparagraphs (A) and (C);
                    ``(C) any option to enter into an agreement or 
                transaction referred to in subparagraph (A) or (B);
                    ``(D) a master agreement that provides for an 
                agreement or transaction referred to in subparagraph 
                (A), (B), or (C), together with all supplements to any 
                such master agreement, without regard to whether such 
                master agreement provides for an agreement or 
                transaction that is not a forward contract under this 
                paragraph, except that such master agreement shall be 
                considered to be a forward contract under this 
                paragraph only with respect to each agreement or 
                transaction under such master agreement that is 
                referred to in subparagraph (A), (B), or (C); or
                    ``(E) any security agreement or arrangement, or 
                other credit enhancement related to any agreement or 
                transaction referred to in subparagraph (A), (B), (C), 
                or (D), including any guarantee or reimbursement 
                obligation by or to a forward contract merchant or 
                financial participant in connection with any agreement 
                or transaction referred to in any such subparagraph, 
                but not to exceed the damages in connection with any 
                such agreement or transaction, measured in accordance 
                with section 562 of this title;'';
                    (B) in paragraph (46), by striking ``on any day 
                during the period beginning 90 days before the date 
                of'' and inserting ``at any time before'';
                    (C) by amending paragraph (47) to read as follows:
            ``(47) `repurchase agreement' (which definition also 
        applies to a reverse repurchase agreement)--
                    ``(A) means--
                            ``(i) an agreement, including related 
                        terms, which provides for the transfer of one 
                        or more certificates of deposit, mortgage 
                        related securities (as defined in section 3 of 
                        the Securities Exchange Act of 1934), mortgage 
                        loans, interests in mortgage related securities 
                        or mortgage loans, eligible bankers' 
                        acceptances, qualified foreign government 
                        securities (defined as a security that is a 
                        direct obligation of, or that is fully 
                        guaranteed by, the central government of a 
                        member of the Organization for Economic 
                        Cooperation and Development), or securities 
                        that are direct obligations of, or that are 
                        fully guaranteed by, the United States or any 
                        agency of the United States against the 
                        transfer of funds by the transferee of such 
                        certificates of deposit, eligible bankers' 
                        acceptances, securities, mortgage loans, or 
                        interests, with a simultaneous agreement by 
                        such transferee to transfer to the transferor 
                        thereof certificates of deposit, eligible 
                        bankers' acceptance, securities, mortgage 
                        loans, or interests of the kind described in 
                        this clause, at a date certain not later than 1 
                        year after such transfer or on demand, against 
                        the transfer of funds;
                            ``(ii) any combination of agreements or 
                        transactions referred to in clauses (i) and 
                        (iii);
                            ``(iii) an option to enter into an 
                        agreement or transaction referred to in clause 
                        (i) or (ii);
                            ``(iv) a master agreement that provides for 
                        an agreement or transaction referred to in 
                        clause (i), (ii), or (iii), together with all 
                        supplements to any such master agreement, 
                        without regard to whether such master agreement 
                        provides for an agreement or transaction that 
                        is not a repurchase agreement under this 
                        paragraph, except that such master agreement 
                        shall be considered to be a repurchase 
                        agreement under this paragraph only with 
                        respect to each agreement or transaction under 
                        the master agreement that is referred to in 
                        clause (i), (ii), or (iii); or
                            ``(v) any security agreement or arrangement 
                        or other credit enhancement related to any 
                        agreement or transaction referred to in clause 
                        (i), (ii), (iii), or (iv), including any 
                        guarantee or reimbursement obligation by or to 
                        a repo participant or financial participant in 
                        connection with any agreement or transaction 
                        referred to in any such clause, but not to 
                        exceed the damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562 of this title; and
                    ``(B) does not include a repurchase obligation 
                under a participation in a commercial mortgage loan;'';
                    (D) in paragraph (48), by inserting ``, or exempt 
                from such registration under such section pursuant to 
                an order of the Securities and Exchange Commission,'' 
                after ``1934''; and
                    (E) by amending paragraph (53B) to read as follows:
            ``(53B) `swap agreement'--
                    ``(A) means--
                            ``(i) any agreement, including the terms 
                        and conditions incorporated by reference in 
                        such agreement, which is--
                                    ``(I) an interest rate swap, 
                                option, future, or forward agreement, 
                                including a rate floor, rate cap, rate 
                                collar, cross-currency rate swap, and 
                                basis swap;
                                    ``(II) a spot, same day-tomorrow, 
                                tomorrow-next, forward, or other 
                                foreign exchange or precious metals 
                                agreement;
                                    ``(III) a currency swap, option, 
                                future, or forward agreement;
                                    ``(IV) an equity index or equity 
                                swap, option, future, or forward 
                                agreement;
                                    ``(V) a debt index or debt swap, 
                                option, future, or forward agreement;
                                    ``(VI) a total return, credit 
                                spread or credit swap, option, future, 
                                or forward agreement;
                                    ``(VII) a commodity index or a 
                                commodity swap, option, future, or 
                                forward agreement; or
                                    ``(VIII) a weather swap, weather 
                                derivative, or weather option;
                            ``(ii) any agreement or transaction that is 
                        similar to any other agreement or transaction 
                        referred to in this paragraph and that--
                                    ``(I) is of a type that has been, 
                                is presently, or in the future becomes, 
                                the subject of recurrent dealings in 
                                the swap markets (including terms and 
                                conditions incorporated by reference 
                                therein); and
                                    ``(II) is a forward, swap, future, 
                                or option on one or more rates, 
                                currencies, commodities, equity 
                                securities, or other equity 
                                instruments, debt securities or other 
                                debt instruments, quantitative measures 
                                associated with an occurrence, extent 
                                of an occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic consequence, or 
                                economic or financial indices or 
                                measures of economic or financial risk 
                                or value;
                            ``(iii) any combination of agreements or 
                        transactions referred to in this subparagraph;
                            ``(iv) any option to enter into an 
                        agreement or transaction referred to in this 
                        subparagraph;
                            ``(v) a master agreement that provides for 
                        an agreement or transaction referred to in 
                        clause (i), (ii), (iii), or (iv), together with 
                        all supplements to any such master agreement, 
                        and without regard to whether the master 
                        agreement contains an agreement or transaction 
                        that is not a swap agreement under this 
                        paragraph, except that the master agreement 
                        shall be considered to be a swap agreement 
                        under this paragraph only with respect to each 
                        agreement or transaction under the master 
                        agreement that is referred to in clause (i), 
                        (ii), (iii), or (iv); or
                            ``(vi) any security agreement or 
                        arrangement or other credit enhancement related 
                        to any agreements or transactions referred to 
                        in clause (i) through (v), including any 
                        guarantee or reimbursement obligation by or to 
                        a swap participant or financial participant in 
                        connection with any agreement or transaction 
                        referred to in any such clause, but not to 
                        exceed the damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562 of this title; and
                    ``(B) is applicable for purposes of this title 
                only, and shall not be construed or applied so as to 
                challenge or affect the characterization, definition, 
                or treatment of any swap agreement under any other 
                statute, regulation, or rule, including the Securities 
                Act of 1933, the Securities Exchange Act of 1934, the 
                Public Utility Holding Company Act of 1935, the Trust 
                Indenture Act of 1939, the Investment Company Act of 
                1940, the Investment Advisers Act of 1940, the 
                Securities Investor Protection Act of 1970, the 
                Commodity Exchange Act, the Gramm-Leach-Bliley Act, and 
                the Legal Certainty for Bank Products Act of 2000;'';
            (2) in section 741(7), by striking paragraph (7) and 
        inserting the following:
            ``(7) `securities contract'--
                    ``(A) means--
                            ``(i) a contract for the purchase, sale, or 
                        loan of a security, a certificate of deposit, a 
                        mortgage loan or any interest in a mortgage 
                        loan, a group or index of securities, 
                        certificates of deposit, or mortgage loans or 
                        interests therein (including an interest 
                        therein or based on the value thereof), or 
                        option on any of the foregoing, including an 
                        option to purchase or sell any such security, 
                        certificate of deposit, mortgage loan, 
                        interest, group or index, or option, and 
                        including any repurchase or reverse repurchase 
                        transaction on any such security, certificate 
                        of deposit, mortgage loan, interest, group or 
                        index, or option;
                            ``(ii) any option entered into on a 
                        national securities exchange relating to 
                        foreign currencies;
                            ``(iii) the guarantee by or to any 
                        securities clearing agency of a settlement of 
                        cash, securities, certificates of deposit, 
                        mortgage loans or interests therein, group or 
                        index of securities, or mortgage loans or 
                        interests therein (including any interest 
                        therein or based on the value thereof), or 
                        option on any of the foregoing, including an 
                        option to purchase or sell any such security, 
                        certificate of deposit, mortgage loan, 
                        interest, group or index, or option;
                            ``(iv) any margin loan;
                            ``(v) any other agreement or transaction 
                        that is similar to an agreement or transaction 
                        referred to in this subparagraph;
                            ``(vi) any combination of the agreements or 
                        transactions referred to in this subparagraph;
                            ``(vii) any option to enter into any 
                        agreement or transaction referred to in this 
                        subparagraph;
                            ``(viii) a master agreement that provides 
                        for an agreement or transaction referred to in 
                        clause (i), (ii), (iii), (iv), (v), (vi), or 
                        (vii), together with all supplements to any 
                        such master agreement, without regard to 
                        whether the master agreement provides for an 
                        agreement or transaction that is not a 
                        securities contract under this subparagraph, 
                        except that such master agreement shall be 
                        considered to be a securities contract under 
                        this subparagraph only with respect to each 
                        agreement or transaction under such master 
                        agreement that is referred to in clause (i), 
                        (ii), (iii), (iv), (v), (vi), or (vii); or
                            ``(ix) any security agreement or 
                        arrangement or other credit enhancement related 
                        to any agreement or transaction referred to in 
                        this subparagraph, including any guarantee or 
                        reimbursement obligation by or to a 
                        stockbroker, securities clearing agency, 
                        financial institution, or financial participant 
                        in connection with any agreement or transaction 
                        referred to in this subparagraph, but not to 
                        exceed the damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562 of this title; and
                    ``(B) does not include any purchase, sale, or 
                repurchase obligation under a participation in a 
                commercial mortgage loan;''; and
            (3) in section 761(4)--
                    (A) by striking ``or'' at the end of subparagraph 
                (D); and
                    (B) by adding at the end the following:
                    ``(F) any other agreement or transaction that is 
                similar to an agreement or transaction referred to in 
                this paragraph;
                    ``(G) any combination of the agreements or 
                transactions referred to in this paragraph;
                    ``(H) any option to enter into an agreement or 
                transaction referred to in this paragraph;
                    ``(I) a master agreement that provides for an 
                agreement or transaction referred to in subparagraph 
                (A), (B), (C), (D), (E), (F), (G), or (H), together 
                with all supplements to such master agreement, without 
                regard to whether the master agreement provides for an 
                agreement or transaction that is not a commodity 
                contract under this paragraph, except that the master 
                agreement shall be considered to be a commodity 
                contract under this paragraph only with respect to each 
                agreement or transaction under the master agreement 
                that is referred to in subparagraph (A), (B), (C), (D), 
                (E), (F), (G), or (H); or
                    ``(J) any security agreement or arrangement or 
                other credit enhancement related to any agreement or 
                transaction referred to in this paragraph, including 
                any guarantee or reimbursement obligation by or to a 
                commodity broker or financial participant in connection 
                with any agreement or transaction referred to in this 
                paragraph, but not to exceed the damages in connection 
                with any such agreement or transaction, measured in 
                accordance with section 562 of this title;''.
    (b) Definitions of Financial Institution, Financial Participant, 
and Forward Contract Merchant.--Section 101 of title 11, United States 
Code, is amended--
            (1) by striking paragraph (22) and inserting the following:
            ``(22) `financial institution' means--
                    ``(A) a Federal reserve bank, or an entity 
                (domestic or foreign) that is a commercial or savings 
                bank, industrial savings bank, savings and loan 
                association, trust company, or receiver or conservator 
                for such entity and, when any such Federal reserve 
                bank, receiver, conservator or entity is acting as 
                agent or custodian for a customer in connection with a 
                securities contract (as defined in section 741) such 
                customer; or
                    ``(B) in connection with a securities contract (as 
                defined in section 741) an investment company 
                registered under the Investment Company Act of 1940;'';
            (2) by inserting after paragraph (22) the following:
            ``(22A) `financial participant' means--
                    ``(A) an entity that, at the time it enters into a 
                securities contract, commodity contract, swap 
                agreement, repurchase agreement, or forward contract, 
                or at the time of the filing of the petition, has one 
                or more agreements or transactions described in 
                paragraph (1), (2), (3), (4), (5), or (6) of section 
                561(a) with the debtor or any other entity (other than 
                an affiliate) of a total gross dollar value of not less 
                than $1,000,000,000 in notional or actual principal 
                amount outstanding on any day during the previous 15-
                month period, or has gross mark-to-market positions of 
                not less than $100,000,000 (aggregated across 
                counterparties) in one or more such agreements or 
                transactions with the debtor or any other entity (other 
                than an affiliate) on any day during the previous 15-
                month period; or
                    ``(B) a clearing organization (as defined in 
                section 402 of the Federal Deposit Insurance 
                Corporation Improvement Act of 1991);''; and
            (3) by striking paragraph (26) and inserting the following:
            ``(26) `forward contract merchant' means a Federal reserve 
        bank, or an entity the business of which consists in whole or 
        in part of entering into forward contracts as or with merchants 
        in a commodity (as defined in section 761) or any similar good, 
        article, service, right, or interest which is presently or in 
        the future becomes the subject of dealing in the forward 
        contract trade;''.
    (c) Definition of Master Netting Agreement and Master Netting 
Agreement Participant.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (38) the following new paragraphs:
            ``(38A) `master netting agreement'--
                    ``(A) means an agreement providing for the exercise 
                of rights, including rights of netting, setoff, 
                liquidation, termination, acceleration, or close out, 
                under or in connection with one or more contracts that 
                are described in any one or more of paragraphs (1) 
                through (5) of section 561(a), or any security 
                agreement or arrangement or other credit enhancement 
                related to one or more of the foregoing, including any 
                guarantee or reimbursement obligation related to 1 or 
                more of the foregoing; and
                    ``(B) if the agreement contains provisions relating 
                to agreements or transactions that are not contracts 
                described in paragraphs (1) through (5) of section 
                561(a), shall be deemed to be a master netting 
                agreement only with respect to those agreements or 
                transactions that are described in any one or more of 
                paragraphs (1) through (5) of section 561(a);
            ``(38B) `master netting agreement participant' means an 
        entity that, at any time before the filing of the petition, is 
        a party to an outstanding master netting agreement with the 
        debtor;''.
    (d) Swap Agreements, Securities Contracts, Commodity Contracts, 
Forward Contracts, Repurchase Agreements, and Master Netting Agreements 
Under the Automatic-Stay.--
            (1) In general.--Section 362(b) of title 11, United States 
        Code, as amended by sections 224, 303, 311, 401, and 718, is 
        amended--
                    (A) in paragraph (6), by inserting 
                ``, pledged to, under the control of,'' after ``held 
                by'';
                    (B) in paragraph (7), by inserting 
                ``, pledged to, under the control of,'' after ``held 
                by'';
                    (C) by striking paragraph (17) and inserting the 
                following:
            ``(17) under subsection (a), of the setoff by a swap 
        participant or financial participant of a mutual debt and claim 
        under or in connection with one or more swap agreements that 
        constitutes the setoff of a claim against the debtor for any 
        payment or other transfer of property due from the debtor under 
        or in connection with any swap agreement against any payment 
        due to the debtor from the swap participant or financial 
        participant under or in connection with any swap agreement or 
        against cash, securities, or other property held by, pledged 
        to, under the control of, or due from such swap participant or 
        financial participant to margin, guarantee, secure, or settle 
        any swap agreement;''; and
                    (D) by inserting after paragraph (26) the 
                following:
            ``(27) under subsection (a), of the setoff by a master 
        netting agreement participant of a mutual debt and claim under 
        or in connection with one or more master netting agreements or 
        any contract or agreement subject to such agreements that 
        constitutes the setoff of a claim against the debtor for any 
        payment or other transfer of property due from the debtor under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements against any payment due to 
        the debtor from such master netting agreement participant under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements or against cash, 
        securities, or other property held by, pledged to, under the 
        control of, or due from such master netting agreement 
        participant to margin, guarantee, secure, or settle such 
        agreements or any contract or agreement subject to such 
        agreements, to the extent that such participant is eligible to 
        exercise such offset rights under paragraph (6), (7), or (17) 
        for each individual contract covered by the master netting 
        agreement in issue.''.
            (2) Limitation.--Section 362 of title 11, United States 
        Code, as amended by sections 106, 305, 311, and 441, is amended 
        by adding at the end the following:
    ``(o) The exercise of rights not subject to the stay arising under 
subsection (a) pursuant to paragraph (6), (7), (17), or (27) of 
subsection (b) shall not be stayed by any order of a court or 
administrative agency in any proceeding under this title.''.
    (e) Limitation of Avoidance Powers Under Master Netting 
Agreement.--Section 546 of title 11, United States Code, is amended--
            (1) in subsection (g) (as added by section 103 of Public 
        Law 101-311)--
                    (A) by striking ``under a swap agreement'';
                    (B) by striking ``in connection with a swap 
                agreement'' and inserting ``under or in connection with 
                any swap agreement''; and
                    (C) by inserting ``or financial participant'' after 
                ``swap participant'' each place such term appears; and
            (2) by adding at the end the following:
    ``(j) Notwithstanding sections 544, 545, 547, 548(a)(1)(B), and 
548(b) the trustee may not avoid a transfer made by or to a master 
netting agreement participant under or in connection with any master 
netting agreement or any individual contract covered thereby that is 
made before the commencement of the case, except under section 
548(a)(1)(A) and except to the extent that the trustee could otherwise 
avoid such a transfer made under an individual contract covered by such 
master netting agreement.''.
    (f) Fraudulent Transfers of Master Netting Agreements.--Section 
548(d)(2) of title 11, United States Code, is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(E) a master netting agreement participant that receives 
        a transfer in connection with a master netting agreement or any 
        individual contract covered thereby takes for value to the 
        extent of such transfer, except that, with respect to a 
        transfer under any individual contract covered thereby, to the 
        extent that such master netting agreement participant otherwise 
        did not take (or is otherwise not deemed to have taken) such 
        transfer for value.''.
    (g) Termination or Acceleration of Securities Contracts.--Section 
555 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 555. Contractual right to liquidate, terminate, or accelerate a 
              securities contract'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (h) Termination or Acceleration of Commodities or Forward 
Contracts.--Section 556 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 556. Contractual right to liquidate, terminate, or accelerate a 
              commodities contract or forward contract'';
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''; and
            (3) in the second sentence, by striking ``As used'' and all 
        that follows through ``right,'' and inserting ``As used in this 
        section, the term `contractual right' includes a right set 
        forth in a rule or bylaw of a derivatives clearing organization 
        (as defined in the Commodity Exchange Act), a multilateral 
        clearing organization (as defined in the Federal Deposit 
        Insurance Corporation Improvement Act of 1991), a national 
        securities exchange, a national securities association, a 
        securities clearing agency, a contract market designated under 
        the Commodity Exchange Act, a derivatives transaction execution 
        facility registered under the Commodity Exchange Act, or a 
        board of trade (as defined in the Commodity Exchange Act) or in 
        a resolution of the governing board thereof and a right,''.
    (i) Termination or Acceleration of Repurchase Agreements.--Section 
559 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 559. Contractual right to liquidate, terminate, or accelerate a 
              repurchase agreement'';
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''; and
            (3) in the third sentence, by striking ``As used'' and all 
        that follows through ``right,'' and inserting ``As used in this 
        section, the term `contractual right' includes a right set 
        forth in a rule or bylaw of a derivatives clearing organization 
        (as defined in the Commodity Exchange Act), a multilateral 
        clearing organization (as defined in the Federal Deposit 
        Insurance Corporation Improvement Act of 1991), a national 
        securities exchange, a national securities association, a 
        securities clearing agency, a contract market designated under 
        the Commodity Exchange Act, a derivatives transaction execution 
        facility registered under the Commodity Exchange Act, or a 
        board of trade (as defined in the Commodity Exchange Act) or in 
        a resolution of the governing board thereof and a right,''.
    (j) Liquidation, Termination, or Acceleration of Swap Agreements.--
Section 560 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 560. Contractual right to liquidate, terminate, or accelerate a 
              swap agreement'';
            (2) in the first sentence, by striking ``termination of a 
        swap agreement'' and inserting ``liquidation, termination, or 
        acceleration of one or more swap agreements'';
            (3) by striking ``in connection with any swap agreement'' 
        and inserting ``in connection with the termination, 
        liquidation, or acceleration of one or more swap agreements''; 
        and
            (4) in the second sentence, by striking ``As used'' and all 
        that follows through ``right,'' and inserting ``As used in this 
        section, the term `contractual right' includes a right set 
        forth in a rule or bylaw of a derivatives clearing organization 
        (as defined in the Commodity Exchange Act), a multilateral 
        clearing organization (as defined in the Federal Deposit 
        Insurance Corporation Improvement Act of 1991), a national 
        securities exchange, a national securities association, a 
        securities clearing agency, a contract market designated under 
        the Commodity Exchange Act, a derivatives transaction execution 
        facility registered under the Commodity Exchange Act, or a 
        board of trade (as defined in the Commodity Exchange Act) or in 
        a resolution of the governing board thereof and a right,''.
    (k) Liquidation, Termination, Acceleration, or Offset Under a 
Master Netting Agreement and Across Contracts.--
            (1) In general.--Title 11, United States Code, is amended 
        by inserting after section 560 the following:
``Sec. 561. Contractual right to terminate, liquidate, accelerate, or 
              offset under a master netting agreement and across 
              contracts; proceedings under chapter 15
    ``(a) Subject to subsection (b), the exercise of any contractual 
right, because of a condition of the kind specified in section 
365(e)(1), to cause the termination, liquidation, or acceleration of or 
to offset or net termination values, payment amounts, or other transfer 
obligations arising under or in connection with one or more (or the 
termination, liquidation, or acceleration of one or more)--
            ``(1) securities contracts, as defined in section 741(7);
            ``(2) commodity contracts, as defined in section 761(4);
            ``(3) forward contracts;
            ``(4) repurchase agreements;
            ``(5) swap agreements; or
            ``(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation of any 
provision of this title or by any order of a court or administrative 
agency in any proceeding under this title.
    ``(b)(1) A party may exercise a contractual right described in 
subsection (a) to terminate, liquidate, or accelerate only to the 
extent that such party could exercise such a right under section 555, 
556, 559, or 560 for each individual contract covered by the master 
netting agreement in issue.
    ``(2) If a debtor is a commodity broker subject to subchapter IV of 
chapter 7--
            ``(A) a party may not net or offset an obligation to the 
        debtor arising under, or in connection with, a commodity 
        contract traded on or subject to the rules of a contract market 
        designated under the Commodity Exchange Act or a derivatives 
        transaction execution facility registered under the Commodity 
        Exchange Act against any claim arising under, or in connection 
        with, other instruments, contracts, or agreements listed in 
        subsection (a) except to the extent that the party has positive 
        net equity in the commodity accounts at the debtor, as 
        calculated under such subchapter; and
            ``(B) another commodity broker may not net or offset an 
        obligation to the debtor arising under, or in connection with, 
        a commodity contract entered into or held on behalf of a 
        customer of the debtor and traded on or subject to the rules of 
        a contract market designated under the Commodity Exchange Act 
        or a derivatives transaction execution facility registered 
        under the Commodity Exchange Act against any claim arising 
        under, or in connection with, other instruments, contracts, or 
        agreements listed in subsection (a).
    ``(3) No provision of subparagraph (A) or (B) of paragraph (2) 
shall prohibit the offset of claims and obligations that arise under--
            ``(A) a cross-margining agreement or similar arrangement 
        that has been approved by the Commodity Futures Trading 
        Commission or submitted to the Commodity Futures Trading 
        Commission under paragraph (1) or (2) of section 5c(c) of the 
        Commodity Exchange Act and has not been abrogated or rendered 
        ineffective by the Commodity Futures Trading Commission; or
            ``(B) any other netting agreement between a clearing 
        organization (as defined in section 761) and another entity 
        that has been approved by the Commodity Futures Trading 
        Commission.
    ``(c) As used in this section, the term `contractual right' 
includes a right set forth in a rule or bylaw of a derivatives clearing 
organization (as defined in the Commodity Exchange Act), a multilateral 
clearing organization (as defined in the Federal Deposit Insurance 
Corporation Improvement Act of 1991), a national securities exchange, a 
national securities association, a securities clearing agency, a 
contract market designated under the Commodity Exchange Act, a 
derivatives transaction execution facility registered under the 
Commodity Exchange Act, or a board of trade (as defined in the 
Commodity Exchange Act) or in a resolution of the governing board 
thereof, and a right, whether or not evidenced in writing, arising 
under common law, under law merchant, or by reason of normal business 
practice.
    ``(d) Any provisions of this title relating to securities 
contracts, commodity contracts, forward contracts, repurchase 
agreements, swap agreements, or master netting agreements shall apply 
in a case under chapter 15, so that enforcement of contractual 
provisions of such contracts and agreements in accordance with their 
terms will not be stayed or otherwise limited by operation of any 
provision of this title or by order of a court in any case under this 
title, and to limit avoidance powers to the same extent as in a 
proceeding under chapter 7 or 11 of this title (such enforcement not to 
be limited based on the presence or absence of assets of the debtor in 
the United States).''.
            (2) Conforming amendment.--The table of sections for 
        chapter 5 of title 11, United States Code, is amended by 
        inserting after the item relating to section 560 the following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
                            under a master netting agreement and across 
                            contracts; proceedings under chapter 15.''.
    (l) Commodity Broker Liquidations.--Title 11, United States Code, 
is amended by inserting after section 766 the following:
``Sec. 767. Commodity broker liquidation and forward contract 
              merchants, commodity brokers, stockbrokers, financial 
              institutions, financial participants, securities clearing 
              agencies, swap participants, repo participants, and 
              master netting agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, financial participant, securities 
clearing agency, swap participant, repo participant, or master netting 
agreement participant under this title shall not affect the priority of 
any unsecured claim it may have after the exercise of such rights.''.
    (m) Stockbroker Liquidations.--Title 11, United States Code, is 
amended by inserting after section 752 the following:
``Sec. 753. Stockbroker liquidation and forward contract merchants, 
              commodity brokers, stockbrokers, financial institutions, 
              financial participants, securities clearing agencies, 
              swap participants, repo participants, and master netting 
              agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, financial participant, or master netting 
agreement participant under this title shall not affect the priority of 
any unsecured claim it may have after the exercise of such rights.''.
    (n) Setoff.--Section 553 of title 11, United States Code, is 
amended--
            (1) in subsection (a)(2)(B)(ii), by inserting before the 
        semicolon the following: ``(except for a setoff of a kind 
        described in section 362(b)(6), 362(b)(7), 362(b)(17), 
        362(b)(27), 555, 556, 559, 560, or 561)'';
            (2) in subsection (a)(3)(C), by inserting before the period 
        the following: ``(except for a setoff of a kind described in 
        section 362(b)(6), 362(b)(7), 362(b)(17), 362(b)(27), 555, 556, 
        559, 560, or 561 of this title)''; and
            (3) in subsection (b)(1), by striking ``362(b)(14),'' and 
        inserting ``362(b)(17), 362(b)(27), 555, 556, 559, 560, 561,''.
    (o) Securities Contracts, Commodity Contracts, and Forward 
Contracts.--Title 11, United States Code, is amended--
            (1) in section 362(b)(6), by striking ``financial 
        institutions,'' each place such term appears and inserting 
        ``financial institution, financial participant,'';
            (2) in sections 362(b)(7) and 546(f), by inserting ``or 
        financial participant'' after ``repo participant'' each place 
        such term appears;
            (3) in section 546(e), by inserting ``financial 
        participant,'' after ``financial institution,'';
            (4) in section 548(d)(2)(B), by inserting ``financial 
        participant,'' after ``financial institution,'';
            (5) in section 548(d)(2)(C), by inserting ``or financial 
        participant'' after ``repo participant'';
            (6) in section 548(d)(2)(D), by inserting ``or financial 
        participant'' after ``swap participant'';
            (7) in section 555--
                    (A) by inserting ``financial participant,'' after 
                ``financial institution,''; and
                    (B) by striking the second sentence and inserting 
                the following: ``As used in this section, the term 
                `contractual right' includes a right set forth in a 
                rule or bylaw of a derivatives clearing organization 
                (as defined in the Commodity Exchange Act), a 
                multilateral clearing organization (as defined in the 
                Federal Deposit Insurance Corporation Improvement Act 
                of 1991), a national securities exchange, a national 
                securities association, a securities clearing agency, a 
                contract market designated under the Commodity Exchange 
                Act, a derivatives transaction execution facility 
                registered under the Commodity Exchange Act, or a board 
                of trade (as defined in the Commodity Exchange Act), or 
                in a resolution of the governing board thereof, and a 
                right, whether or not in writing, arising under common 
                law, under law merchant, or by reason of normal 
                business practice'';
            (8) in section 556, by inserting ``, financial 
        participant,'' after ``commodity broker'';
            (9) in section 559, by inserting ``or financial 
        participant'' after ``repo participant'' each place such term 
        appears; and
            (10) in section 560, by inserting ``or financial 
        participant'' after ``swap participant''.
    (p) Conforming Amendments.--Title 11, United States Code, is 
amended--
            (1) in the table of sections for chapter 5--
                    (A) by amending the items relating to sections 555 
                and 556 to read as follows:

``555. Contractual right to liquidate, terminate, or accelerate a 
                            securities contract.
``556. Contractual right to liquidate, terminate, or accelerate a 
                            commodities contract or forward 
                            contract.'';
                and
                    (B) by amending the items relating to sections 559 
                and 560 to read as follows:

``559. Contractual right to liquidate, terminate, or accelerate a 
                            repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap 
                            agreement.'';
                and
            (2) in the table of sections for chapter 7--
                    (A) by inserting after the item relating to section 
                766 the following:

``767. Commodity broker liquidation and forward contract merchants, 
                            commodity brokers, stockbrokers, financial 
                            institutions, financial participants, 
                            securities clearing agencies, swap 
                            participants, repo participants, and master 
                            netting agreement participants.'';
                and
                    (B) by inserting after the item relating to section 
                752 the following:

``753. Stockbroker liquidation and forward contract merchants, 
                            commodity brokers, stockbrokers, financial 
                            institutions, financial participants, 
                            securities clearing agencies, swap 
                            participants, repo participants, and master 
                            netting agreement participants.''.

SEC. 908. RECORDKEEPING REQUIREMENTS.

    Section 11(e)(8) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)) is amended by adding at the end the following new 
subparagraph:
                    ``(H) Recordkeeping requirements.--The Corporation, 
                in consultation with the appropriate Federal banking 
                agencies, may prescribe regulations requiring more 
                detailed recordkeeping by any insured depository 
                institution with respect to qualified financial 
                contracts (including market valuations) only if such 
                insured depository institution is in a troubled 
                condition (as such term is defined by the Corporation 
                pursuant to section 32).''.

SEC. 909. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION REQUIREMENT.

    Section 13(e)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)(2)) is amended to read as follows:
            ``(2) Exemptions from contemporaneous execution 
        requirement.--An agreement to provide for the lawful 
        collateralization of--
                    ``(A) deposits of, or other credit extension by, a 
                Federal, State, or local governmental entity, or of any 
                depositor referred to in section 11(a)(2), including an 
                agreement to provide collateral in lieu of a surety 
                bond;
                    ``(B) bankruptcy estate funds pursuant to section 
                345(b)(2) of title 11, United States Code;
                    ``(C) extensions of credit, including any 
                overdraft, from a Federal reserve bank or Federal home 
                loan bank; or
                    ``(D) one or more qualified financial contracts, as 
                defined in section 11(e)(8)(D),
        shall not be deemed invalid pursuant to paragraph (1)(B) solely 
        because such agreement was not executed contemporaneously with 
        the acquisition of the collateral or because of pledges, 
        delivery, or substitution of the collateral made in accordance 
        with such agreement.''.

SEC. 910. DAMAGE MEASURE.

    (a) In General.--Title 11, United States Code, is amended--
            (1) by inserting after section 561, as added by section 
        907, the following:
``Sec. 562. Timing of damage measurement in connection with swap 
              agreements, securities contracts, forward contracts, 
              commodity contracts, repurchase agreements, and master 
              netting agreements
    ``(a) If the trustee rejects a swap agreement, securities contract 
(as defined in section 741), forward contract, commodity contract (as 
defined in section 761), repurchase agreement, or master netting 
agreement pursuant to section 365(a), or if a forward contract 
merchant, stockbroker, financial institution, securities clearing 
agency, repo participant, financial participant, master netting 
agreement participant, or swap participant liquidates, terminates, or 
accelerates such contract or agreement, damages shall be measured as of 
the earlier of--
            ``(1) the date of such rejection; or
            ``(2) the date or dates of such liquidation, termination, 
        or acceleration.
    ``(b) If there are not any commercially reasonable determinants of 
value as of any date referred to in paragraph (1) or (2) of subsection 
(a), damages shall be measured as of the earliest subsequent date or 
dates on which there are commercially reasonable determinants of value.
    ``(c) For the purposes of subsection (b), if damages are not 
measured as of the date or dates of rejection, liquidation, 
termination, or acceleration, and the forward contract merchant, 
stockbroker, financial institution, securities clearing agency, repo 
participant, financial participant, master netting agreement 
participant, or swap participant or the trustee objects to the timing 
of the measurement of damages--
            ``(1) the trustee, in the case of an objection by a forward 
        contract merchant, stockbroker, financial institution, 
        securities clearing agency, repo participant, financial 
        participant, master netting agreement participant, or swap 
        participant; or
            ``(2) the forward contract merchant, stockbroker, financial 
        institution, securities clearing agency, repo participant, 
        financial participant, master netting agreement participant, or 
        swap participant, in the case of an objection by the trustee,
has the burden of proving that there were no commercially reasonable 
determinants of value as of such date or dates.''; and
            (2) in the table of sections for chapter 5, by inserting 
        after the item relating to section 561 (as added by section 
        907) the following new item:

``562. Timing of damage measure in connection with swap agreements, 
                            securities contracts, forward contracts, 
                            commodity contracts, repurchase agreements, 
                            or master netting agreements.''.
    (b) Claims Arising From Rejection.--Section 502(g) of title 11, 
United States Code, is amended--
            (1) by inserting ``(1)'' after ``(g)''; and
            (2) by adding at the end the following:
    ``(2) A claim for damages calculated in accordance with section 562 
of this title shall be allowed under subsection (a), (b), or (c), or 
disallowed under subsection (d) or (e), as if such claim had arisen 
before the date of the filing of the petition.''.

SEC. 911. SIPC STAY.

    Section 5(b)(2) of the Securities Investor Protection Act of 1970 
(15 U.S.C. 78eee(b)(2)) is amended by adding at the end the following 
new subparagraph:
                    ``(C) Exception from stay.--
                            ``(i) Notwithstanding section 362 of title 
                        11, United States Code, neither the filing of 
                        an application under subsection (a)(3) nor any 
                        order or decree obtained by SIPC from the court 
                        shall operate as a stay of any contractual 
                        rights of a creditor to liquidate, terminate, 
                        or accelerate a securities contract, commodity 
                        contract, forward contract, repurchase 
                        agreement, swap agreement, or master netting 
                        agreement, as those terms are defined in 
                        sections 101, 741, and 761 of title 11, United 
                        States Code, to offset or net termination 
                        values, payment amounts, or other transfer 
                        obligations arising under or in connection with 
                        one or more of such contracts or agreements, or 
                        to foreclose on any cash collateral pledged by 
                        the debtor, whether or not with respect to one 
                        or more of such contracts or agreements.
                            ``(ii) Notwithstanding clause (i), such 
                        application, order, or decree may operate as a 
                        stay of the foreclosure on, or disposition of, 
                        securities collateral pledged by the debtor, 
                        whether or not with respect to one or more of 
                        such contracts or agreements, securities sold 
                        by the debtor under a repurchase agreement, or 
                        securities lent under a securities lending 
                        agreement.
                            ``(iii) As used in this subparagraph, the 
                        term `contractual right' includes a right set 
                        forth in a rule or bylaw of a national 
                        securities exchange, a national securities 
                        association, or a securities clearing agency, a 
                        right set forth in a bylaw of a clearing 
                        organization or contract market or in a 
                        resolution of the governing board thereof, and 
                        a right, whether or not in writing, arising 
                        under common law, under law merchant, or by 
                        reason of normal business practice.''.

       TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN

SEC. 1001. PERMANENT REENACTMENT OF CHAPTER 12.

    (a) Reenactment.--
            (1) In general.--Chapter 12 of title 11, United States 
        Code, as reenacted by section 149 of division C of the Omnibus 
        Consolidated and Emergency Supplemental Appropriations Act, 
        1999 (Public Law 105-277), is hereby reenacted, and as here 
        reenacted is amended by this Act.
            (2) Effective date.--Subsection (a) shall take effect on 
        the date of the enactment of this Act.
    (b) Conforming Amendment.--Section 302 of the Bankruptcy Judges, 
United States Trustees, and Family Farmer Bankruptcy Act of 1986 (28 
U.S.C. 581 note) is amended by striking subsection (f).

SEC. 1002. DEBT LIMIT INCREASE.

    Section 104(b) of title 11, United States Code, as amended by 
section 226, is amended by inserting ``101(18),'' after ``101(3),'' 
each place it appears.

SEC. 1003. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS.

    (a) Contents of Plan.--Section 1222(a)(2) of title 11, United 
States Code, is amended to read as follows:
            ``(2) provide for the full payment, in deferred cash 
        payments, of all claims entitled to priority under section 507, 
        unless--
                    ``(A) the claim is a claim owed to a governmental 
                unit that arises as a result of the sale, transfer, 
                exchange, or other disposition of any farm asset used 
                in the debtor's farming operation, in which case the 
                claim shall be treated as an unsecured claim that is 
                not entitled to priority under section 507, but the 
                debt shall be treated in such manner only if the debtor 
                receives a discharge; or
                    ``(B) the holder of a particular claim agrees to a 
                different treatment of that claim;''.
    (b) Special Notice Provisions.--Section 1231(b) of title 11, United 
States Code, as so designated by section 719, is amended by striking 
``a State or local governmental unit'' and inserting ``any governmental 
unit''.
    (c) Effective Date; Application of Amendments.--This section and 
the amendments made by this section shall take effect on the date of 
the enactment of this Act and shall not apply with respect to cases 
commenced under title 11 of the United States Code before such date.

SEC. 1004. DEFINITION OF FAMILY FARMER.

    Section 101(18) of title 11, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``$1,500,000'' and inserting 
                ``$3,237,000''; and
                    (B) by striking ``80'' and inserting ``50''; and
            (2) in subparagraph (B)(ii)--
                    (A) by striking ``$1,500,000'' and inserting 
                ``$3,237,000''; and
                    (B) by striking ``80'' and inserting ``50''.

SEC. 1005. ELIMINATION OF REQUIREMENT THAT FAMILY FARMER AND SPOUSE 
              RECEIVE OVER 50 PERCENT OF INCOME FROM FARMING OPERATION 
              IN YEAR PRIOR TO BANKRUPTCY.

    Section 101(18)(A) of title 11, United States Code, is amended by 
striking ``for the taxable year preceding the taxable year'' and 
inserting the following:
        ``for--
                    ``(i) the taxable year preceding; or
                    ``(ii) each of the 2d and 3d taxable years 
                preceding;
        the taxable year''.

SEC. 1006. PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE INCOME.

    (a) Confirmation of Plan.--Section 1225(b)(1) of title 11, United 
States Code, is amended--
            (1) in subparagraph (A) by striking ``or'' at the end;
            (2) in subparagraph (B) by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) the value of the property to be distributed under the 
        plan in the 3-year period, or such longer period as the court 
        may approve under section 1222(c), beginning on the date that 
        the first distribution is due under the plan is not less than 
        the debtor's projected disposable income for such period.''.
    (b) Modification of Plan.--Section 1229 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(d) A plan may not be modified under this section--
            ``(1) to increase the amount of any payment due before the 
        plan as modified becomes the plan;
            ``(2) by anyone except the debtor, based on an increase in 
        the debtor's disposable income, to increase the amount of 
        payments to unsecured creditors required for a particular month 
        so that the aggregate of such payments exceeds the debtor's 
        disposable income for such month; or
            ``(3) in the last year of the plan by anyone except the 
        debtor, to require payments that would leave the debtor with 
        insufficient funds to carry on the farming operation after the 
        plan is completed.''.

SEC. 1007. FAMILY FISHERMEN.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended--
            (1) by inserting after paragraph (7) the following:
            ``(7A) `commercial fishing operation' means--
                    ``(A) the catching or harvesting of fish, shrimp, 
                lobsters, urchins, seaweed, shellfish, or other aquatic 
                species or products of such species; or
                    ``(B) for purposes of section 109 and chapter 12, 
                aquaculture activities consisting of raising for market 
                any species or product described in subparagraph (A);
            ``(7B) `commercial fishing vessel' means a vessel used by a 
        family fisherman to carry out a commercial fishing 
        operation;''; and
            (2) by inserting after paragraph (19) the following:
            ``(19A) `family fisherman' means--
                    ``(A) an individual or individual and spouse 
                engaged in a commercial fishing operation--
                            ``(i) whose aggregate debts do not exceed 
                        $1,500,000 and not less than 80 percent of 
                        whose aggregate noncontingent, liquidated debts 
                        (excluding a debt for the principal residence 
                        of such individual or such individual and 
                        spouse, unless such debt arises out of a 
                        commercial fishing operation), on the date the 
                        case is filed, arise out of a commercial 
                        fishing operation owned or operated by such 
                        individual or such individual and spouse; and
                            ``(ii) who receive from such commercial 
                        fishing operation more than 50 percent of such 
                        individual's or such individual's and spouse's 
                        gross income for the taxable year preceding the 
                        taxable year in which the case concerning such 
                        individual or such individual and spouse was 
                        filed; or
                    ``(B) a corporation or partnership--
                            ``(i) in which more than 50 percent of the 
                        outstanding stock or equity is held by--
                                    ``(I) 1 family that conducts the 
                                commercial fishing operation; or
                                    ``(II) 1 family and the relatives 
                                of the members of such family, and such 
                                family or such relatives conduct the 
                                commercial fishing operation; and
                            ``(ii)(I) more than 80 percent of the value 
                        of its assets consists of assets related to the 
                        commercial fishing operation;
                            ``(II) its aggregate debts do not exceed 
                        $1,500,000 and not less than 80 percent of its 
                        aggregate noncontingent, liquidated debts 
                        (excluding a debt for 1 dwelling which is owned 
                        by such corporation or partnership and which a 
                        shareholder or partner maintains as a principal 
                        residence, unless such debt arises out of a 
                        commercial fishing operation), on the date the 
                        case is filed, arise out of a commercial 
                        fishing operation owned or operated by such 
                        corporation or such partnership; and
                            ``(III) if such corporation issues stock, 
                        such stock is not publicly traded;
            ``(19B) `family fisherman with regular annual income' means 
        a family fisherman whose annual income is sufficiently stable 
        and regular to enable such family fisherman to make payments 
        under a plan under chapter 12 of this title;''.
    (b) Who May Be a Debtor.--Section 109(f) of title 11, United States 
Code, is amended by inserting ``or family fisherman'' after ``family 
farmer''.
    (c)  Chapter 12.--Chapter 12 of title 11, United States Code, is 
amended--
            (1) in the chapter heading, by inserting ``OR FISHERMAN'' 
        after ``FAMILY FARMER'';
            (2) in section 1203, by inserting ``or commercial fishing 
        operation'' after ``farm''; and
            (3) in section 1206, by striking ``if the property is 
        farmland or farm equipment'' and inserting ``if the property is 
        farmland, farm equipment, or property used to carry out a 
        commercial fishing operation (including a commercial fishing 
        vessel)''.
    (d) Clerical Amendment.--In the table of chapters for title 11, 
United States Code, the item relating to chapter 12, is amended to read 
as follows:

``12. Adjustments of Debts of a Family Farmer or Family         1201''.
                            Fisherman with Regular Annual 
                            Income.
    (e) Applicability.--Nothing in this section shall change, affect, 
or amend the Fishery Conservation and Management Act of 1976 (16 U.S.C. 
1801, et seq.).

              TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

SEC. 1101. DEFINITIONS.

    (a) Health Care Business Defined.--Section 101 of title 11, United 
States Code, as amended by section 306, is amended--
            (1) by redesignating paragraph (27A) as paragraph (27B); 
        and
            (2) by inserting after paragraph (27) the following:
            ``(27A) `health care business'--
                    ``(A) means any public or private entity (without 
                regard to whether that entity is organized for profit 
                or not for profit) that is primarily engaged in 
                offering to the general public facilities and services 
                for--
                            ``(i) the diagnosis or treatment of injury, 
                        deformity, or disease; and
                            ``(ii) surgical, drug treatment, 
                        psychiatric, or obstetric care; and
                    ``(B) includes--
                            ``(i) any--
                                    ``(I) general or specialized 
                                hospital;
                                    ``(II) ancillary ambulatory, 
                                emergency, or surgical treatment 
                                facility;
                                    ``(III) hospice;
                                    ``(IV) home health agency; and
                                    ``(V) other health care institution 
                                that is similar to an entity referred 
                                to in subclause (I), (II), (III), or 
                                (IV); and
                            ``(ii) any long-term care facility, 
                        including any--
                                    ``(I) skilled nursing facility;
                                    ``(II) intermediate care facility;
                                    ``(III) assisted living facility;
                                    ``(IV) home for the aged;
                                    ``(V) domiciliary care facility; 
                                and
                                    ``(VI) health care institution that 
                                is related to a facility referred to in 
                                subclause (I), (II), (III), (IV), or 
                                (V), if that institution is primarily 
                                engaged in offering room, board, 
                                laundry, or personal assistance with 
                                activities of daily living and 
                                incidentals to activities of daily 
                                living;''.
    (b) Patient and Patient Records Defined.--Section 101 of title 11, 
United States Code, is amended by inserting after paragraph (40) the 
following:
            ``(40A) `patient' means any person who obtains or receives 
        services from a health care business;
            ``(40B) `patient records' means any written document 
        relating to a patient or a record recorded in a magnetic, 
        optical, or other form of electronic medium;''.
    (c) Rule of Construction.--The amendments made by subsection (a) of 
this section shall not affect the interpretation of section 109(b) of 
title 11, United States Code.

SEC. 1102. DISPOSAL OF PATIENT RECORDS.

    (a) In General.--Subchapter III of chapter 3 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 351. Disposal of patient records
    ``If a health care business commences a case under chapter 7, 9, or 
11, and the trustee does not have a sufficient amount of funds to pay 
for the storage of patient records in the manner required under 
applicable Federal or State law, the following requirements shall 
apply:
            ``(1) The trustee shall--
                    ``(A) promptly publish notice, in 1 or more 
                appropriate newspapers, that if patient records are not 
                claimed by the patient or an insurance provider (if 
                applicable law permits the insurance provider to make 
                that claim) by the date that is 365 days after the date 
                of that notification, the trustee will destroy the 
                patient records; and
                    ``(B) during the first 180 days of the 365-day 
                period described in subparagraph (A), promptly attempt 
                to notify directly each patient that is the subject of 
                the patient records and appropriate insurance carrier 
                concerning the patient records by mailing to the most 
                recent known address of that patient, or a family 
                member or contact person for that patient, and to the 
                appropriate insurance carrier an appropriate notice 
                regarding the claiming or disposing of patient records.
            ``(2) If, after providing the notification under paragraph 
        (1), patient records are not claimed during the 365-day period 
        described under that paragraph, the trustee shall mail, by 
        certified mail, at the end of such 365-day period a written 
        request to each appropriate Federal agency to request 
        permission from that agency to deposit the patient records with 
        that agency, except that no Federal agency is required to 
        accept patient records under this paragraph.
            ``(3) If, following the 365-day period described in 
        paragraph (2) and after providing the notification under 
        paragraph (1), patient records are not claimed by a patient or 
        insurance provider, or request is not granted by a Federal 
        agency to deposit such records with that agency, the trustee 
        shall destroy those records by--
                    ``(A) if the records are written, shredding or 
                burning the records; or
                    ``(B) if the records are magnetic, optical, or 
                other electronic records, by otherwise destroying those 
                records so that those records cannot be retrieved.''.
    (b) Clerical Amendment.--The table of sections for subchapter III 
of chapter 3 of title 11, United States Code, is amended by adding at 
the end the following:

``351. Disposal of patient records.''.

SEC. 1103. ADMINISTRATIVE EXPENSE CLAIM FOR COSTS OF CLOSING A HEALTH 
              CARE BUSINESS AND OTHER ADMINISTRATIVE EXPENSES.

    Section 503(b) of title 11, United States Code, as amended by 
section 445, is amended by adding at the end the following:
            ``(8) the actual, necessary costs and expenses of closing a 
        health care business incurred by a trustee or by a Federal 
        agency (as defined in section 551(1) of title 5) or a 
        department or agency of a State or political subdivision 
        thereof, including any cost or expense incurred--
                    ``(A) in disposing of patient records in accordance 
                with section 351; or
                    ``(B) in connection with transferring patients from 
                the health care business that is in the process of 
                being closed to another health care business; and''.

SEC. 1104. APPOINTMENT OF OMBUDSMAN TO ACT AS PATIENT ADVOCATE.

    (a) Ombudsman To Act as Patient Advocate.--
            (1) Appointment of ombudsman.--Title 11, United States 
        Code, as amended by section 232, is amended by inserting after 
        section 332 the following:
``Sec. 333. Appointment of patient care ombudsman
    ``(a)(1) If the debtor in a case under chapter 7, 9, or 11 is a 
health care business, the court shall order, not later than 30 days 
after the commencement of the case, the appointment of an ombudsman to 
monitor the quality of patient care and to represent the interests of 
the patients of the health care business unless the court finds that 
the appointment of such ombudsman is not necessary for the protection 
of patients under the specific facts of the case.
    ``(2)(A) If the court orders the appointment of an ombudsman under 
paragraph (1), the United States trustee shall appoint 1 disinterested 
person (other than the United States trustee) to serve as such 
ombudsman.
    ``(B) If the debtor is a health care business that provides long-
term care, then the United States trustee may appoint the State Long-
Term Care Ombudsman appointed under the Older Americans Act of 1965 for 
the State in which the case is pending to serve as the ombudsman 
required by paragraph (1).
    ``(C) If the United States trustee does not appoint a State Long-
Term Care Ombudsman under subparagraph (B), the court shall notify the 
State Long-Term Care Ombudsman appointed under the Older Americans Act 
of 1965 for the State in which the case is pending, of the name and 
address of the person who is appointed under subparagraph (A).
    ``(b) An ombudsman appointed under subsection (a) shall--
            ``(1) monitor the quality of patient care provided to 
        patients of the debtor, to the extent necessary under the 
        circumstances, including interviewing patients and physicians;
            ``(2) not later than 60 days after the date of appointment, 
        and not less frequently than at 60-day intervals thereafter, 
        report to the court, at a hearing or in writing, regarding the 
        quality of patient care provided to patients of the debtor; and
            ``(3) if such ombudsman determines that the quality of 
        patient care provided to patients of the debtor is declining 
        significantly or is otherwise being materially compromised, 
        file with the court a motion or a written report, with notice 
        to the parties in interest immediately upon making such 
        determination.
    ``(c)(1) An ombudsman appointed under subsection (a) shall maintain 
any information obtained by such ombudsman under this section that 
relates to patients (including information relating to patient records) 
as confidential information. Such ombudsman may not review confidential 
patient records unless the court approves such review in advance and 
imposes restrictions on such ombudsman to protect the confidentiality 
of such records.
    ``(2) An ombudsman appointed under subsection (a)(2)(B) shall have 
access to patient records consistent with authority of such ombudsman 
under the Older Americans Act of 1965 and under non-Federal laws 
governing the State Long-Term Care Ombudsman program.''.
            (2) Clerical amendment.--The table of sections for 
        subchapter II of chapter 3 of title 11, United States Code, as 
        amended by section 232, is amended by adding at the end the 
        following:

``333. Appointment of ombudsman.''.

    (b) Compensation of Ombudsman.--Section 330(a)(1) of title 11, 
United States Code, is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``an ombudsman appointed under section 333, or'' before ``a 
        professional person''; and
            (2) in subparagraph (A), by inserting ``ombudsman,'' before 
        ``professional person''.

SEC. 1105. DEBTOR IN POSSESSION; DUTY OF TRUSTEE TO TRANSFER PATIENTS.

    (a) In General.--Section 704(a) of title 11, United States Code, as 
amended by sections 102, 219, and 446, is amended by adding at the end 
the following:
            ``(12) use all reasonable and best efforts to transfer 
        patients from a health care business that is in the process of 
        being closed to an appropriate health care business that--
                    ``(A) is in the vicinity of the health care 
                business that is closing;
                    ``(B) provides the patient with services that are 
                substantially similar to those provided by the health 
                care business that is in the process of being closed; 
                and
                    ``(C) maintains a reasonable quality of care.''.
    (b) Conforming Amendment.--Section 1106(a)(1) of title 11, United 
States Code, as amended by section 446, is amended by striking ``and 
(11)'' and inserting ``(11), and (12)''.

SEC. 1106. EXCLUSION FROM PROGRAM PARTICIPATION NOT SUBJECT TO 
              AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, is amended by 
inserting after paragraph (27), as amended by sections 224, 303, 311, 
401, 718, and 907, the following:
            ``(28) under subsection (a), of the exclusion by the 
        Secretary of Health and Human Services of the debtor from 
        participation in the medicare program or any other Federal 
        health care program (as defined in section 1128B(f) of the 
        Social Security Act pursuant to title XI of such Act or title 
        XVIII of such Act.''.

                    TITLE XII--TECHNICAL AMENDMENTS

SEC. 1201. DEFINITIONS.

    Section 101 of title 11, United States Code, as hereinbefore 
amended by this Act, is amended--
            (1) by striking ``In this title--'' and inserting ``In this 
        title the following definitions shall apply:'';
            (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), (38), and (54A), 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 and 
                inserting a semicolon;
            (6) by striking paragraph (54) and inserting the following:
            ``(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) by indenting the left margin of paragraph (54A) 2 ems 
        to the right; and
            (8) in each of paragraphs (1) through (35), in each of 
        paragraphs (36), (37), (38A), (38B) and (39A), and in each of 
        paragraphs (40) through (55), by striking the semicolon at the 
        end and inserting a period.

SEC. 1202. ADJUSTMENT OF DOLLAR AMOUNTS.

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

SEC. 1203. 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. 1204. TECHNICAL AMENDMENTS.

    Title 11, United States Code, is amended--
            (1) in section 109(b)(2), by striking ``subsection (c) or 
        (d) of''; and
            (2) in section 552(b)(1), by striking ``product'' each 
        place it appears and inserting ``products''.

SEC. 1205. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE 
              BANKRUPTCY PETITIONS.

    Section 110(j)(4) of title 11, United States Code, as so 
redesignated by section 221, is amended by striking ``attorney's'' and 
inserting ``attorneys'''.

SEC. 1206. 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. 1207. 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. 1208. 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. 1209. EXCEPTIONS TO DISCHARGE.

    Section 523, and of title 11, United States Code, as amended by 
sections 215 and 314, is amended--
            (1) by transferring paragraph (15), as added by section 
        304(e) of Public Law 103-394 (108 Stat. 4133), so as to insert 
        such paragraph after subsection (a)(14A);
            (2) in subsection (a)(9), by striking ``motor vehicle'' and 
        inserting ``motor vehicle, vessel, or aircraft''; and
            (3) in subsection (e), by striking ``a insured'' and 
        inserting ``an insured''.

SEC. 1210. 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), or that''.

SEC. 1211. 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. 1212. PROPERTY OF THE ESTATE.

    Section 541(b)(4)(B)(ii) of title 11, United States Code, is 
amended by inserting ``365 or'' before ``542''.

SEC. 1213. PREFERENCES.

    (a) In General.--Section 547 of title 11, United States Code, as 
amended by section 201, is amended--
            (1) in subsection (b), by striking ``subsection (c)'' and 
        inserting ``subsections (c) and (i)''; and
            (2) by adding at the end the following:
    ``(i) If the trustee avoids under subsection (b) a transfer made 
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 transfer shall be 
considered to be avoided under this section only with respect to the 
creditor that is an insider.''.
    (b) Applicability.--The amendments made by this section shall apply 
to any case that is pending or commenced on or after the date of 
enactment of this Act.

SEC. 1214. POSTPETITION TRANSACTIONS.

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

SEC. 1215. DISPOSITION OF PROPERTY OF THE ESTATE.

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

SEC. 1216. GENERAL PROVISIONS.

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

SEC. 1217. 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. 1218. 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. 1219. 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. 1220. 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. 1221. TRANSFERS MADE BY NONPROFIT CHARITABLE CORPORATIONS.

    (a) Sale of Property of Estate.--Section 363(d) of title 11, United 
States Code, is amended by striking ``only'' and all that follows 
through the end of the subsection and inserting ``only--
            ``(1) in accordance with applicable nonbankruptcy law that 
        governs the transfer of property by a corporation or trust that 
        is not a moneyed, business, or commercial corporation or trust; 
        and
            ``(2) to the extent not inconsistent with any relief 
        granted under subsection (c), (d), (e), or (f) of section 
        362.''.
    (b) Confirmation of Plan for Reorganization.--Section 1129(a) of 
title 11, United States Code, as amended by sections 213 and 321, is 
amended by adding at the end the following:
            ``(17) All transfers of property of the plan shall be made 
        in accordance with any applicable provisions of nonbankruptcy 
        law that govern the transfer of property by a corporation or 
        trust that is not a moneyed, business, or commercial 
        corporation or trust.''.
    (c) Transfer of Property.--Section 541 of title 11, United States 
Code, as amended by section 225, is amended by adding at the end the 
following:
    ``(f) Notwithstanding any other provision of this title, property 
that is held by a debtor that is a corporation described in section 
501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax 
under section 501(a) of such Code may be transferred to an entity that 
is not such a corporation, but only under the same conditions as would 
apply if the debtor had not filed a case under this title.''.
    (d) Applicability.--The amendments made by this section shall apply 
to a case pending under title 11, United States Code, on the date of 
enactment of this Act, or filed under that title on or after that date 
of enactment, except that the court shall not confirm a plan under 
chapter 11 of title 11, United States Code, without considering whether 
this section would substantially affect the rights of a party in 
interest who first acquired rights with respect to the debtor after the 
date of the petition. The parties who may appear and be heard in a 
proceeding under this section include the attorney general of the State 
in which the debtor is incorporated, was formed, or does business.
    (e) Rule of Construction.--Nothing in this section shall be 
construed to require the court in which a case under chapter 11 of 
title 11, United States Code, is pending to remand or refer any 
proceeding, issue, or controversy to any other court or to require the 
approval of any other court for the transfer of property.

SEC. 1222. PROTECTION OF VALID PURCHASE MONEY SECURITY INTERESTS.

    Section 547(c)(3)(B) of title 11, United States Code, is amended by 
striking ``20'' and inserting ``30''.

SEC. 1223. BANKRUPTCY JUDGESHIPS.

    (a) Short Title.--This section may be cited as the ``Bankruptcy 
Judgeship Act of 2003''.
    (b) Temporary Judgeships.--
            (1) Appointments.--The following bankruptcy judges shall be 
        appointed 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 judge for the eastern 
                district of California.
                    (B) Three additional bankruptcy judges for the 
                central district of California.
                    (C) Four additional bankruptcy judges for the 
                district of Delaware.
                    (D) Two additional bankruptcy judges for the 
                southern district of Florida.
                    (E) One additional bankruptcy judge for the 
                southern district of Georgia.
                    (F) Three additional bankruptcy judges for the 
                district of Maryland.
                    (G) One additional bankruptcy judge for the eastern 
                district of Michigan.
                    (H) One additional bankruptcy judge for the 
                southern district of Mississippi.
                    (I) One additional bankruptcy judge for the 
                district of New Jersey.
                    (J) One additional bankruptcy judge for the eastern 
                district of New York.
                    (K) One additional bankruptcy judge for the 
                northern district of New York.
                    (L) One additional bankruptcy judge for the 
                southern district of New York.
                    (M) One additional bankruptcy judge for the eastern 
                district of North Carolina.
                    (N) One additional bankruptcy judge for the eastern 
                district of Pennsylvania.
                    (O) One additional bankruptcy judge for the middle 
                district of Pennsylvania.
                    (P) One additional bankruptcy judge for the 
                district of Puerto Rico.
                    (Q) One additional bankruptcy judge for the western 
                district of Tennessee.
                    (R) One additional bankruptcy judge for the eastern 
                district of Virginia.
                    (S) One additional bankruptcy judge for the 
                district of South Carolina.
                    (T) One additional bankruptcy judge for the 
                district of Nevada.
            (2) Vacancies.--
                    (A) Districts with single appointments.--Except as 
                provided in subparagraphs (B), (C), (D), and (E), the 
                first vacancy occurring in the office of bankruptcy 
                judge in each of the judicial districts set forth in 
                paragraph (1)--
                            (i) occurring 5 years or more after the 
                        appointment date of the bankruptcy judge 
                        appointed under paragraph (1) to such office; 
                        and
                            (ii) resulting from the death, retirement, 
                        resignation, or removal of a bankruptcy judge;
                shall not be filled.
                    (B) Central district of california.--The 1st, 2d, 
                and 3d vacancies in the office of bankruptcy judge in 
                the central district of California--
                            (i) occurring 5 years or more after the 
                        respective 1st, 2d, and 3d appointment dates of 
                        the bankruptcy judges appointed under paragraph 
                        (1)(B); and
                            (ii) resulting from the death, retirement, 
                        resignation, or removal of a bankruptcy judge;
                shall not be filled.
                    (C) District of delaware.--The 1st, 2d, 3d, and 4th 
                vacancies in the office of bankruptcy judge in the 
                district of Delaware--
                            (i) occurring 5 years or more after the 
                        respective 1st, 2d, 3d, and 4th appointment 
                        dates of the bankruptcy judges appointed under 
                        paragraph (1)(F); and
                            (ii) resulting from the death, retirement, 
                        resignation, or removal of a bankruptcy judge;
                shall not be filled.
                    (D) Southern district of florida.--The 1st and 2d 
                vacancies in the office of bankruptcy judge in the 
                southern district of Florida--
                            (i) occurring 5 years or more after the 
                        respective 1st and 2d appointment dates of the 
                        bankruptcy judges appointed under paragraph 
                        (1)(D); and
                            (ii) resulting from the death, retirement, 
                        resignation, or removal of a bankruptcy judge;
                shall not be filled.
                    (E) District of maryland.--The 1st, 2d, and 3d 
                vacancies in the office of bankruptcy judge in the 
                district of Maryland--
                            (i) occurring 5 years or more after the 
                        respective 1st, 2d, and 3d appointment dates of 
                        the bankruptcy judges appointed under paragraph 
                        (1)(F); and
                            (ii) resulting from the death, retirement, 
                        resignation, or removal of a bankruptcy judge;
                shall not be filled.
    (c) Extensions.--
            (1) In general.--The temporary office of bankruptcy judges 
        authorized for the northern district of Alabama, the district 
        of Delaware, the district of Puerto Rico, and the eastern 
        district of Tennessee under paragraphs (1), (3), (7), and (9) 
        of section 3(a) 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 5 years after the date of 
        the enactment of this Act.
            (2) Applicability of other provisions.--All other 
        provisions of section 3 of the Bankruptcy Judgeship Act of 1992 
        (28 U.S.C. 152 note) remain applicable to the temporary office 
        of bankrupcy judges referred to in this subsection.
    (d) Technical Amendments.--Section 152(a) of title 28, United 
States Code, is amended--
            (1) in paragraph (1), by striking the first sentence and 
        inserting the following: ``Each bankruptcy judge to be 
        appointed for a judicial district, as provided in paragraph 
        (2), shall be appointed by the court of appeals of the United 
        States for the circuit in which such district is located.''; 
        and
            (2) in paragraph (2)--
                    (A) in the item relating to the middle district of 
                Georgia, by striking ``2'' and inserting ``3''; and
                    (B) in the collective item relating to the middle 
                and southern districts of Georgia, by striking ``Middle 
                and Southern . . . . . . 1''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 1224. COMPENSATING TRUSTEES.

    Section 1326 of title 11, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``and'';
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) if a chapter 7 trustee has been allowed compensation 
        due to the conversion or dismissal of the debtor's prior case 
        pursuant to section 707(b), and some portion of that 
        compensation remains unpaid in a case converted to this chapter 
        or in the case dismissed under section 707(b) and refiled under 
        this chapter, the amount of any such unpaid compensation, which 
        shall be paid monthly--
                    ``(A) by prorating such amount over the remaining 
                duration of the plan; and
                    ``(B) by monthly payments not to exceed the greater 
                of--
                            ``(i) $25; or
                            ``(ii) the amount payable to unsecured 
                        nonpriority creditors, as provided by the plan, 
                        multiplied by 5 percent, and the result divided 
                        by the number of months in the plan.''; and
            (2) by adding at the end the following:
    ``(d) Notwithstanding any other provision of this title--
            ``(1) compensation referred to in subsection (b)(3) is 
        payable and may be collected by the trustee under that 
        paragraph, even if such amount has been discharged in a prior 
        proceeding under this title; and
            ``(2) such compensation is payable in a case under this 
        chapter only to the extent permitted by subsection (b)(3).''.

SEC. 1225. AMENDMENT TO SECTION 362 OF TITLE 11, UNITED STATES CODE.

    Section 362(b)(18) of title 11, United States Code, is amended to 
read as follows:
            ``(18) under subsection (a) of the creation or perfection 
        of a statutory lien for an ad valorem property tax, or a 
        special tax or special assessment on real property whether or 
        not ad valorem, imposed by a governmental unit, if such tax or 
        assessment comes due after the filing of the petition;''.

SEC. 1226. JUDICIAL EDUCATION.

    The Director of the Federal Judicial Center, in consultation with 
the Director of the Executive Office for United States Trustees, shall 
develop materials and conduct such training as may be useful to courts 
in implementing this Act and the amendments made by this Act, including 
the requirements relating to the means test and reaffirmations under 
section 707(b) of title 11, United States Code, as amended by this Act.

SEC. 1227. RECLAMATION.

    (a) Rights and Powers of the Trustee.--Section 546(c) of title 11, 
United States Code, is amended to read as follows:
    ``(c)(1) Except as provided in subsection (d) of this section and 
subsection (c) of section 507, and subject to the prior rights of 
holders of security interests in such goods or the proceeds thereof, 
the rights and powers of the trustee under sections 544(a), 545, 547, 
and 549 are subject to the right of a seller of goods that has sold 
goods to the debtor, in the ordinary course of such seller's business, 
to reclaim such goods if the debtor has received such goods while 
insolvent, within 45 days before the date of the commencement of a case 
under this title, but such seller may not reclaim such goods unless 
such seller demands in writing reclamation of such goods--
            ``(A) not later than 45 days after the date of receipt of 
        such goods by the debtor; or
            ``(B) not later than 20 days after the date of commencement 
        of the case, if the 45-day period expires after the 
        commencement of the case.
    ``(2) If a seller of goods fails to provide notice in the manner 
described in paragraph (1), the seller still may assert the rights 
contained in section 503(b)(9).''.
    (b) Administrative Expenses.--Section 503(b) of title 11, United 
States Code, as amended by sections 445 and 1103, is amended by adding 
at the end the following:
            ``(9) the value of any goods received by the debtor within 
        20 days before the date of commencement of a case under this 
        title in which the goods have been sold to the debtor in the 
        ordinary course of such debtor's business.''.

SEC. 1228. PROVIDING REQUESTED TAX DOCUMENTS TO THE COURT.

    (a) Chapter 7 Cases.--The court shall not grant a discharge in the 
case of an individual seeking bankruptcy under chapter 7 of title 11, 
United States Code, unless requested tax documents have been provided 
to the court.
    (b) Chapter 11 and Chapter 13 Cases.--The court shall not confirm a 
plan of reorganization in the case of an individual under chapter 11 or 
13 of title 11, United States Code, unless requested tax documents have 
been filed with the court.
    (c) Document Retention.--The court shall destroy documents 
submitted in support of a bankruptcy claim not sooner than 3 years 
after the date of the conclusion of a bankruptcy case filed by an 
individual under chapter 7, 11, or 13 of title 11, United States Code. 
In the event of a pending audit or enforcement action, the court may 
extend the time for destruction of such requested tax documents.

SEC. 1229. ENCOURAGING CREDITWORTHINESS.

    (a) Sense of the Congress.--It is the sense of the Congress that--
            (1) certain lenders may sometimes offer credit to consumers 
        indiscriminately, without taking steps to ensure that consumers 
        are capable of repaying the resulting debt, and in a manner 
        which may encourage certain consumers to accumulate additional 
        debt; and
            (2) resulting consumer debt may increasingly be a major 
        contributing factor to consumer insolvency.
    (b) Study Required.--The Board of Governors of the Federal Reserve 
System (hereafter in this section referred to as the ``Board'') shall 
conduct a study of--
            (1) consumer credit industry practices of soliciting and 
        extending credit--
                    (A) indiscriminately;
                    (B) without taking steps to ensure that consumers 
                are capable of repaying the resulting debt; and
                    (C) in a manner that encourages consumers to 
                accumulate additional debt; and
            (2) the effects of such practices on consumer debt and 
        insolvency.
    (c) Report and Regulations.--Not later than 12 months after the 
date of enactment of this Act, the Board--
            (1) shall make public a report on its findings with respect 
        to the indiscriminate solicitation and extension of credit by 
        the credit industry;
            (2) may issue regulations that would require additional 
        disclosures to consumers; and
            (3) may take any other actions, consistent with its 
        existing statutory authority, that the Board finds necessary to 
        ensure responsible industrywide practices and to prevent 
        resulting consumer debt and insolvency.

SEC. 1230. PROPERTY NO LONGER SUBJECT TO REDEMPTION.

    Section 541(b) of title 11, United States Code, as amended by 
sections 225 and 323, is amended by adding at the end the following:
            ``(8) subject to subchapter III of chapter 5, any interest 
        of the debtor in property where the debtor pledged or sold 
        tangible personal property (other than securities or written or 
        printed evidences of indebtedness or title) as collateral for a 
        loan or advance of money given by a person licensed under law 
        to make such loans or advances, where--
                    ``(A) the tangible personal property is in the 
                possession of the pledgee or transferee;
                    ``(B) the debtor has no obligation to repay the 
                money, redeem the collateral, or buy back the property 
                at a stipulated price; and
                    ``(C) neither the debtor nor the trustee have 
                exercised any right to redeem provided under the 
                contract or State law, in a timely manner as provided 
                under State law and section 108(b) of this title; or''.

SEC. 1231. TRUSTEES.

    (a) Suspension and Termination of Panel Trustees and Standing 
Trustees.--Section 586(d) of title 28, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following:
    ``(2) A trustee whose appointment under subsection (a)(1) or under 
subsection (b) is terminated or who ceases to be assigned to cases 
filed under title 11, United States Code, may obtain judicial review of 
the final agency decision by commencing an action in the district court 
of the United States for the district for which the panel to which the 
trustee is appointed under subsection (a)(1), or in the district court 
of the United States for the district in which the trustee is appointed 
under subsection (b) resides, after first exhausting all available 
administrative remedies, which if the trustee so elects, shall also 
include an administrative hearing on the record. Unless the trustee 
elects to have an administrative hearing on the record, the trustee 
shall be deemed to have exhausted all administrative remedies for 
purposes of this paragraph if the agency fails to make a final agency 
decision within 90 days after the trustee requests administrative 
remedies. The Attorney General shall prescribe procedures to implement 
this paragraph. The decision of the agency shall be affirmed by the 
district court unless it is unreasonable and without cause based on the 
administrative record before the agency.''.
    (b) Expenses of Standing Trustees.--Section 586(e) of title 28, 
United States Code, is amended by adding at the end the following:
    ``(3) After first exhausting all available administrative remedies, 
an individual appointed under subsection (b) may obtain judicial review 
of final agency action to deny a claim of actual, necessary expenses 
under this subsection by commencing an action in the district court of 
the United States for the district where the individual resides. The 
decision of the agency shall be affirmed by the district court unless 
it is unreasonable and without cause based upon the administrative 
record before the agency.
    ``(4) The Attorney General shall prescribe procedures to implement 
this subsection.''.

SEC. 1232. BANKRUPTCY FORMS.

    Section 2075 of title 28, United States Code, is amended by adding 
at the end the following:
``The bankruptcy rules promulgated under this section shall prescribe a 
form for the statement required under section 707(b)(2)(C) of title 11 
and may provide general rules on the content of such statement.''.

SEC. 1233. DIRECT APPEALS OF BANKRUPTCY MATTERS TO COURTS OF APPEALS.

    (a) Appeals.--Section 158 of title 28, United States Code, is 
amended--
            (1) in subsection (c)(1), by striking ``Subject to 
        subsection (b),'' and inserting ``Subject to subsections (b) 
        and (d)(2),''; and
            (2) in subsection (d)--
                    (A) by inserting ``(1)'' after ``(d)''; and
                    (B) by adding at the end the following:
    ``(2)(A) The appropriate court of appeals shall have jurisdiction 
of appeals described in the first sentence of subsection (a) if the 
bankruptcy court, the district court, or the bankruptcy appellate panel 
involved, acting on its own motion or on the request of a party to the 
judgment, order, or decree described in such first sentence, or all the 
appellants and appellees (if any) acting jointly, certify that--
            ``(i) the judgment, order, or decree involves a question of 
        law as to which there is no controlling decision of the court 
        of appeals for the circuit or of the Supreme Court of the 
        United States, or involves a matter of public importance;
            ``(ii) the judgment, order, or decree involves a question 
        of law requiring resolution of conflicting decisions; or
            ``(iii) an immediate appeal from the judgment, order, or 
        decree may materially advance the progress of the case or 
        proceeding in which the appeal is taken;
and if the court of appeals authorizes the direct appeal of the 
judgment, order, or decree.
    ``(B) If the bankruptcy court, the district court, or the 
bankruptcy appellate panel--
            ``(i) on its own motion or on the request of a party, 
        determines that a circumstance specified in clause (i), (ii), 
        or (iii) of subparagraph (A) exists; or
            ``(ii) receives a request made by a majority of the 
        appellants and a majority of appellees (if any) to make the 
        certification described in subparagraph (A);
then the bankruptcy court, the district court, or the bankruptcy 
appellate panel shall make the certification described in subparagraph 
(A).
    ``(C) The parties may supplement the certification with a short 
statement of the basis for the certification.
    ``(D) An appeal under this paragraph does not stay any proceeding 
of the bankruptcy court, the district court, or the bankruptcy 
appellate panel from which the appeal is taken, unless the respective 
bankruptcy court, district court, or bankruptcy appellate panel, or the 
court of appeals in which the appeal in pending, issues a stay of such 
proceeding pending the appeal.
    ``(E) Any request under subparagraph (B) for certification shall be 
made not later than 60 days after the entry of the judgment, order, or 
decree.''.
    (b) Procedural Rules.--
            (1) Temporary application.--A provision of this subsection 
        shall apply to appeals under section 158(d)(2) of title 28, 
        United States Code, until a rule of practice and procedure 
        relating to such provision and such appeals is promulgated or 
        amended under chapter 131 of such title.
            (2) Certification.--A district court, a bankruptcy court, 
        or a bankruptcy appellate panel may make a certification under 
        section 158(d)(2) of title 28, United States Code, only with 
        respect to matters pending in the respective bankruptcy court, 
        district court, or bankruptcy appellate panel.
            (3) Procedure.--Subject to any other provision of this 
        subsection, an appeal authorized by the court of appeals under 
        section 158(d)(2)(A) of title 28, United States Code, shall be 
        taken in the manner prescribed in subdivisions (a)(1), (b), 
        (c), and (d) of rule 5 of the Federal Rules of Appellate 
        Procedure. For purposes of subdivision (a)(1) of rule 5--
                    (A) a reference in such subdivision to a district 
                court shall be deemed to include a reference to a 
                bankruptcy court and a bankruptcy appellate panel, as 
                appropriate;
                    (B) a reference in such subdivision to the parties 
                requesting permission to appeal to be served with the 
                petition shall be deemed to include a reference to the 
                parties to the judgment, order, or decree from which 
                the appeal is taken.
            (4) Filing of petition with attachment.--A petition 
        requesting permission to appeal, that is based on a 
        certification made under subparagraph (A) or (B) of section 
        158(d)(2) shall--
                    (A) be filed with the circuit clerk not later than 
                10 days after the certification is entered on the 
                docket of the bankruptcy court, the district court, or 
                the bankruptcy appellate panel from which the appeal is 
                taken; and
                    (B) have attached a copy of such certification.
            (5) References in rule 5.--For purposes of rule 5 of the 
        Federal Rules of Appellate Procedure--
                    (A) a reference in such rule to a district court 
                shall be deemed to include a reference to a bankruptcy 
                court and to a bankruptcy appellate panel; and
                    (B) a reference in such rule to a district clerk 
                shall be deemed to include a reference to a clerk of a 
                bankruptcy court and to a clerk of a bankruptcy 
                appellate panel.
            (6) Application of rules.--The Federal Rules of Appellate 
        Procedure shall apply in the courts of appeals with respect to 
        appeals authorized under section 158(d)(2)(A), to the extent 
        relevant and as if such appeals were taken from final 
        judgments, orders, or decrees of the district courts or 
        bankruptcy appellate panels exercising appellate jurisdiction 
        under subsection (a) or (b) of section 158 of title 28, United 
        States Code.

SEC. 1234. INVOLUNTARY CASES.

    (a) Amendments.--Section 303 of title 11, United States Code, is 
amended--
            (1) in subsection (b)(1), by--
                    (A) inserting ``as to liability or amount'' after 
                ``bona fide dispute''; and
                    (B) striking ``if such claims'' and inserting ``if 
                such noncontingent, undisputed claims''; and
            (2) in subsection (h)(1), by inserting ``as to liability or 
        amount'' before the semicolon at the end.
    (b) Effective Date; Application of Amendments.--This section and 
the amendments made by this section shall take effect on the date of 
the enactment of this Act and shall not apply with respect to cases 
commenced under title 11 of the United States Code before such date.

SEC. 1235. FEDERAL ELECTION LAW FINES AND PENALTIES AS NONDISCHARGEABLE 
              DEBT.

    Section 523(a) of title 11, United States Code, as amended by 
section 314, is amended by inserting after paragraph (14A) the 
following:
            ``(14B) incurred to pay fines or penalties imposed under 
        Federal election law;''.

                 TITLE XIII--CONSUMER CREDIT DISCLOSURE

SEC. 1301. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.

    (a) Minimum Payment Disclosures.--Section 127(b) of the Truth in 
Lending Act (15 U.S.C. 1637(b)) is amended by adding at the end the 
following:
            ``(11)(A) In the case of an open end credit plan that 
        requires a minimum monthly payment of not more than 4 percent 
        of the balance on which finance charges are accruing, the 
        following statement, located on the front of the billing 
        statement, disclosed clearly and conspicuously: `Minimum 
        Payment Warning: Making only the minimum payment will increase 
        the interest you pay and the time it takes to repay your 
        balance. For example, making only the typical 2 % minimum 
        monthly payment on a balance of $1,000 at an interest rate of 
        17 % would take 88 months to repay the balance in full. For an 
        estimate of the time it would take to repay your balance, 
        making only minimum payments, call this toll-free number: 
        ____________.' (the blank space to be filled in by the 
        creditor).
            ``(B) In the case of an open end credit plan that requires 
        a minimum monthly payment of more than 4 percent of the balance 
        on which finance charges are accruing, the following statement, 
        in a prominent location on the front of the billing statement, 
        disclosed clearly and conspicuously: `Minimum Payment Warning: 
        Making only the required minimum payment will increase the 
        interest you pay and the time it takes to repay your balance. 
        Making a typical 5% minimum monthly payment on a balance of 
        $300 at an interest rate of 17% would take 24 months to repay 
        the balance in full. For an estimate of the time it would take 
        to repay your balance, making only minimum monthly payments, 
        call this toll-free number: ____________.' (the blank space to 
        be filled in by the creditor).
            ``(C) Notwithstanding subparagraphs (A) and (B), in the 
        case of a creditor with respect to which compliance with this 
        title is enforced by the Federal Trade Commission, the 
        following statement, in a prominent location on the front of 
        the billing statement, disclosed clearly and conspicuously: 
        `Minimum Payment Warning: Making only the required minimum 
        payment will increase the interest you pay and the time it 
        takes to repay your balance. For example, making only the 
        typical 5% minimum monthly payment on a balance of $300 at an 
        interest rate of 17% would take 24 months to repay the balance 
        in full. For an estimate of the time it would take to repay 
        your balance, making only minimum monthly payments, call the 
        Federal Trade Commission at this toll-free number: 
        ____________.' (the blank space to be filled in by the 
        creditor). A creditor who is subject to this subparagraph shall 
        not be subject to subparagraph (A) or (B).
            ``(D) Notwithstanding subparagraph (A), (B), or (C), in 
        complying with any such subparagraph, a creditor may substitute 
        an example based on an interest rate that is greater than 17 
        percent. Any creditor that is subject to subparagraph (B) may 
        elect to provide the disclosure required under subparagraph (A) 
        in lieu of the disclosure required under subparagraph (B).
            ``(E) The Board shall, by rule, periodically recalculate, 
        as necessary, the interest rate and repayment period under 
        subparagraphs (A), (B), and (C).
            ``(F)(i) The toll-free telephone number disclosed by a 
        creditor or the Federal Trade Commission under subparagraph 
        (A), (B), or (G), as appropriate, may be a toll-free telephone 
        number established and maintained by the creditor or the 
        Federal Trade Commission, as appropriate, or may be a toll-free 
        telephone number established and maintained by a third party 
        for use by the creditor or multiple creditors or the Federal 
        Trade Commission, as appropriate. The toll-free telephone 
        number may connect consumers to an automated device through 
        which consumers may obtain information described in 
        subparagraph (A), (B), or (C), by inputting information using a 
        touch-tone telephone or similar device, if consumers whose 
        telephones are not equipped to use such automated device are 
        provided the opportunity to be connected to an individual from 
        whom the information described in subparagraph (A), (B), or 
        (C), as applicable, may be obtained. A person that receives a 
        request for information described in subparagraph (A), (B), or 
        (C) from an obligor through the toll-free telephone number 
        disclosed under subparagraph (A), (B), or (C), as applicable, 
        shall disclose in response to such request only the information 
        set forth in the table promulgated by the Board under 
        subparagraph (H)(i).
            ``(ii)(I) The Board shall establish and maintain for a 
        period not to exceed 24 months following the effective date of 
        the Bankruptcy Abuse Prevention and Consumer Protection Act of 
        2003, a toll-free telephone number, or provide a toll-free 
        telephone number established and maintained by a third party, 
        for use by creditors that are depository institutions (as 
        defined in section 3 of the Federal Deposit Insurance Act), 
        including a Federal credit union or State credit union (as 
        defined in section 101 of the Federal Credit Union Act, with 
        total assets not exceeding $250,000,000. The toll-free 
        telephone number may connect consumers to an automated device 
        through which consumers may obtain information described in 
        subparagraph (A) or (B), as applicable, by inputting 
        information using a touch-tone telephone or similar device, if 
        consumers whose telephones are not equipped to use such 
        automated device are provided the opportunity to be connected 
        to an individual from whom the information described in 
        subparagraph (A) or (B), as applicable, may be obtained. A 
        person that receives a request for information described in 
        subparagraph (A) or (B) from an obligor through the toll-free 
        telephone number disclosed under subparagraph (A) or (B), as 
        applicable, shall disclose in response to such request only the 
        information set forth in the table promulgated by the Board 
        under subparagraph (H)(i). The dollar amount contained in this 
        subclause shall be adjusted according to an indexing mechanism 
        established by the Board.
            ``(II) Not later than 6 months prior to the expiration of 
        the 24-month period referenced in subclause (I), the Board 
        shall submit to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services 
        of the House of Representatives a report on the program 
        described in subclause (I).
            ``(G) The Federal Trade Commission shall establish and 
        maintain a toll-free number for the purpose of providing to 
        consumers the information required to be disclosed under 
        subparagraph (C).
            ``(H) The Board shall--
                    ``(i) establish a detailed table illustrating the 
                approximate number of months that it would take to 
                repay an outstanding balance if a consumer pays only 
                the required minimum monthly payments and if no other 
                advances are made, which table shall clearly present 
                standardized information to be used to disclose the 
                information required to be disclosed under subparagraph 
                (A), (B), or (C), as applicable;
                    ``(ii) establish the table required under clause 
                (i) by assuming--
                            ``(I) a significant number of different 
                        annual percentage rates;
                            ``(II) a significant number of different 
                        account balances;
                            ``(III) a significant number of different 
                        minimum payment amounts; and
                            ``(IV) that only minimum monthly payments 
                        are made and no additional extensions of credit 
                        are obtained; and
                    ``(iii) promulgate regulations that provide 
                instructional guidance regarding the manner in which 
                the information contained in the table established 
                under clause (i) should be used in responding to the 
                request of an obligor for any information required to 
                be disclosed under subparagraph (A), (B), or (C).
            ``(I) The disclosure requirements of this paragraph do not 
        apply to any charge card account, the primary purpose of which 
        is to require payment of charges in full each month.
            ``(J) A creditor that maintains a toll-free telephone 
        number for the purpose of providing customers with the actual 
        number of months that it will take to repay the customer's 
        outstanding balance is not subject to the requirements of 
        subparagraph (A) or (B).
            ``(K) A creditor that maintains a toll-free telephone 
        number for the purpose of providing customers with the actual 
        number of months that it will take to repay an outstanding 
        balance shall include the following statement on each billing 
        statement: `Making only the minimum payment will increase the 
        interest you pay and the time it takes to repay your balance. 
        For more information, call this toll-free number: ________.' 
        (the blank space to be filled in by the creditor).''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board of Governors of the Federal 
        Reserve System (hereafter in this title referred to as the 
        ``Board'') shall promulgate regulations implementing the 
        requirements of section 127(b)(11) of the Truth in Lending Act, 
        as added by subsection (a) of this section.
            (2) Effective date.--Section 127(b)(11) of the Truth in 
        Lending Act, as added by subsection (a) of this section, and 
        the regulations issued under paragraph (1) of this subsection 
        shall not take effect until the later of--
                    (A) 18 months after the date of enactment of this 
                Act; or
                    (B) 12 months after the publication of such final 
                regulations by the Board.
    (c) Study of Financial Disclosures.--
            (1) In general.--The Board may conduct a study to determine 
        the types of information available to potential borrowers from 
        consumer credit lending institutions regarding factors 
        qualifying potential borrowers for credit, repayment 
        requirements, and the consequences of default.
            (2) Factors for consideration.--In conducting a study under 
        paragraph (1), the Board should, in consultation with the other 
        Federal banking agencies (as defined in section 3 of the 
        Federal Deposit Insurance Act), the National Credit Union 
        Administration, and the Federal Trade Commission, consider the 
        extent to which--
                    (A) consumers, in establishing new credit 
                arrangements, are aware of their existing payment 
                obligations, the need to consider those obligations in 
                deciding to take on new credit, and how taking on 
                excessive credit can result in financial difficulty;
                    (B) minimum periodic payment features offered in 
                connection with open end credit plans impact consumer 
                default rates;
                    (C) consumers make only the required minimum 
                payment under open end credit plans;
                    (D) consumers are aware that making only required 
                minimum payments will increase the cost and repayment 
                period of an open end credit obligation; and
                    (E) the availability of low minimum payment options 
                is a cause of consumers experiencing financial 
                difficulty.
            (3) Report to congress.--Findings of the Board in 
        connection with any study conducted under this subsection shall 
        be submitted to Congress. Such report shall also include 
        recommendations for legislative initiatives, if any, of the 
        Board, based on its findings.

SEC. 1302. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED BY A 
              DWELLING.

    (a) Open End Credit Extensions.--
            (1) Credit applications.--Section 127A(a)(13) of the Truth 
        in Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
                    (A) by striking ``consultation of tax adviser.--A 
                statement that the'' and inserting the following: ``tax 
                deductibility.--A statement that--
                    ``(A) the''; and
                    (B) by striking the period at the end and inserting 
                the following: ``; and
                    ``(B) in any case in which the extension of credit 
                exceeds the fair market value (as defined under the 
                Internal Revenue Code of 1986) of the dwelling, the 
                interest on the portion of the credit extension that is 
                greater than the fair market value of the dwelling is 
                not tax deductible for Federal income tax purposes.''.
            (2) Credit advertisements.--Section 147(b) of the Truth in 
        Lending Act (15 U.S.C. 1665b(b)) is amended--
                    (A) by striking ``If any'' and inserting the 
                following:
            ``(1) In general.--If any''; and
                    (B) by adding at the end the following:
            ``(2) Credit in excess of fair market value.--Each 
        advertisement described in subsection (a) that relates to an 
        extension of credit that may exceed the fair market value of 
        the dwelling, and which advertisement is disseminated in paper 
        form to the public or through the Internet, as opposed to by 
        radio or television, shall include a clear and conspicuous 
        statement that--
                    ``(A) the interest on the portion of the credit 
                extension that is greater than the fair market value of 
                the dwelling is not tax deductible for Federal income 
                tax purposes; and
                    ``(B) the consumer should consult a tax adviser for 
                further information regarding the deductibility of 
                interest and charges.''.
    (b) Non-Open End Credit Extensions.--
            (1) Credit applications.--Section 128 of the Truth in 
        Lending Act (15 U.S.C. 1638) is amended--
                    (A) in subsection (a), by adding at the end the 
                following:
            ``(15) In the case of a consumer credit transaction that is 
        secured by the principal dwelling of the consumer, in which the 
        extension of credit may exceed the fair market value of the 
        dwelling, a clear and conspicuous statement that--
                    ``(A) the interest on the portion of the credit 
                extension that is greater than the fair market value of 
                the dwelling is not tax deductible for Federal income 
                tax purposes; and
                    ``(B) the consumer should consult a tax adviser for 
                further information regarding the deductibility of 
                interest and charges.''; and
                    (B) in subsection (b), by adding at the end the 
                following:
    ``(3) In the case of a credit transaction described in paragraph 
(15) of subsection (a), disclosures required by that paragraph shall be 
made to the consumer at the time of application for such extension of 
credit.''.
            (2) Credit advertisements.--Section 144 of the Truth in 
        Lending Act (15 U.S.C. 1664) is amended by adding at the end 
        the following:
    ``(e) Each advertisement to which this section applies that relates 
to a consumer credit transaction that is secured by the principal 
dwelling of a consumer in which the extension of credit may exceed the 
fair market value of the dwelling, and which advertisement is 
disseminated in paper form to the public or through the Internet, as 
opposed to by radio or television, shall clearly and conspicuously 
state that--
            ``(1) the interest on the portion of the credit extension 
        that is greater than the fair market value of the dwelling is 
        not tax deductible for Federal income tax purposes; and
            ``(2) the consumer should consult a tax adviser for further 
        information regarding the deductibility of interest and 
        charges.''.
    (c) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate regulations 
        implementing the amendments made by this section.
            (2) Effective date.--Regulations issued under paragraph (1) 
        shall not take effect until the later of--
                    (A) 12 months after the date of enactment of this 
                Act; or
                    (B) 12 months after the date of publication of such 
                final regulations by the Board.

SEC. 1303. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.

    (a) Introductory Rate Disclosures.--Section 127(c) of the Truth in 
Lending Act (15 U.S.C. 1637(c)) is amended by adding at the end the 
following:
            ``(6) Additional notice concerning `introductory rates'.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an application or solicitation to 
                open a credit card account and all promotional 
                materials accompanying such application or solicitation 
                for which a disclosure is required under paragraph (1), 
                and that offers a temporary annual percentage rate of 
                interest, shall--
                            ``(i) use the term `introductory' in 
                        immediate proximity to each listing of the 
                        temporary annual percentage rate applicable to 
                        such account, which term shall appear clearly 
                        and conspicuously;
                            ``(ii) if the annual percentage rate of 
                        interest that will apply after the end of the 
                        temporary rate period will be a fixed rate, 
                        state in a clear and conspicuous manner in a 
                        prominent location closely proximate to the 
                        first listing of the temporary annual 
                        percentage rate (other than a listing of the 
                        temporary annual percentage rate in the tabular 
                        format described in section 122(c)), the time 
                        period in which the introductory period will 
                        end and the annual percentage rate that will 
                        apply after the end of the introductory period; 
                        and
                            ``(iii) if the annual percentage rate that 
                        will apply after the end of the temporary rate 
                        period will vary in accordance with an index, 
                        state in a clear and conspicuous manner in a 
                        prominent location closely proximate to the 
                        first listing of the temporary annual 
                        percentage rate (other than a listing in the 
                        tabular format prescribed by section 122(c)), 
                        the time period in which the introductory 
                        period will end and the rate that will apply 
                        after that, based on an annual percentage rate 
                        that was in effect within 60 days before the 
                        date of mailing the application or 
                        solicitation.
                    ``(B) Exception.--Clauses (ii) and (iii) of 
                subparagraph (A) do not apply with respect to any 
                listing of a temporary annual percentage rate on an 
                envelope or other enclosure in which an application or 
                solicitation to open a credit card account is mailed.
                    ``(C) Conditions for introductory rates.--An 
                application or solicitation to open a credit card 
                account for which a disclosure is required under 
                paragraph (1), and that offers a temporary annual 
                percentage rate of interest shall, if that rate of 
                interest is revocable under any circumstance or upon 
                any event, clearly and conspicuously disclose, in a 
                prominent manner on or with such application or 
                solicitation--
                            ``(i) a general description of the 
                        circumstances that may result in the revocation 
                        of the temporary annual percentage rate; and
                            ``(ii) if the annual percentage rate that 
                        will apply upon the revocation of the temporary 
                        annual percentage rate--
                                    ``(I) will be a fixed rate, the 
                                annual percentage rate that will apply 
                                upon the revocation of the temporary 
                                annual percentage rate; or
                                    ``(II) will vary in accordance with 
                                an index, the rate that will apply 
                                after the temporary rate, based on an 
                                annual percentage rate that was in 
                                effect within 60 days before the date 
                                of mailing the application or 
                                solicitation.
                    ``(D) Definitions.--In this paragraph--
                            ``(i) the terms `temporary annual 
                        percentage rate of interest' and `temporary 
                        annual percentage rate' mean any rate of 
                        interest applicable to a credit card account 
                        for an introductory period of less than 1 year, 
                        if that rate is less than an annual percentage 
                        rate that was in effect within 60 days before 
                        the date of mailing the application or 
                        solicitation; and
                            ``(ii) the term `introductory period' means 
                        the maximum time period for which the temporary 
                        annual percentage rate may be applicable.
                    ``(E) Relation to other disclosure requirements.--
                Nothing in this paragraph may be construed to supersede 
                subsection (a) of section 122, or any disclosure 
                required by paragraph (1) or any other provision of 
                this subsection.''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate regulations 
        implementing the requirements of section 127(c)(6) of the Truth 
        in Lending Act, as added by this section.
            (2) Effective date.--Section 127(c)(6) of the Truth in 
        Lending Act, as added by this section, and regulations issued 
        under paragraph (1) of this subsection shall not take effect 
        until the later of--
                    (A) 12 months after the date of enactment of this 
                Act; or
                    (B) 12 months after the date of publication of such 
                final regulations by the Board.

SEC. 1304. INTERNET-BASED CREDIT CARD SOLICITATIONS.

    (a) Internet-Based Solicitations.--Section 127(c) of the Truth in 
Lending Act (15 U.S.C. 1637(c)) is amended by adding at the end the 
following:
            ``(7) Internet-based solicitations.--
                    ``(A) In general.--In any solicitation to open a 
                credit card account for any person under an open end 
                consumer credit plan using the Internet or other 
                interactive computer service, the person making the 
                solicitation shall clearly and conspicuously disclose--
                            ``(i) the information described in 
                        subparagraphs (A) and (B) of paragraph (1); and
                            ``(ii) the information described in 
                        paragraph (6).
                    ``(B) Form of disclosure.--The disclosures required 
                by subparagraph (A) shall be--
                            ``(i) readily accessible to consumers in 
                        close proximity to the solicitation to open a 
                        credit card account; and
                            ``(ii) updated regularly to reflect the 
                        current policies, terms, and fee amounts 
                        applicable to the credit card account.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) the term `Internet' means the 
                        international computer network of both Federal 
                        and non-Federal interoperable packet switched 
                        data networks; and
                            ``(ii) the term `interactive computer 
                        service' means any information service, system, 
                        or access software provider that provides or 
                        enables computer access by multiple users to a 
                        computer server, including specifically a 
                        service or system that provides access to the 
                        Internet and such systems operated or services 
                        offered by libraries or educational 
                        institutions.''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate regulations 
        implementing the requirements of section 127(c)(7) of the Truth 
        in Lending Act, as added by this section.
            (2) Effective date.--The amendment made by subsection (a) 
        and the regulations issued under paragraph (1) of this 
        subsection shall not take effect until the later of--
                    (A) 12 months after the date of enactment of this 
                Act; or
                    (B) 12 months after the date of publication of such 
                final regulations by the Board.

SEC. 1305. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND PENALTIES.

    (a) Disclosures Related to Late Payment Deadlines and Penalties.--
Section 127(b) of the Truth in Lending Act (15 U.S.C. 1637(b)) is 
amended by adding at the end the following:
            ``(12) If a late payment fee is to be imposed due to the 
        failure of the obligor to make payment on or before a required 
        payment due date, the following shall be stated clearly and 
        conspicuously on the billing statement:
                    ``(A) The date on which that payment is due or, if 
                different, the earliest date on which a late payment 
                fee may be charged.
                    ``(B) The amount of the late payment fee to be 
                imposed if payment is made after such date.''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate regulations 
        implementing the requirements of section 127(b)(12) of the 
        Truth in Lending Act, as added by this section.
            (2) Effective date.--The amendment made by subsection (a) 
        and regulations issued under paragraph (1) of this subsection 
        shall not take effect until the later of--
                    (A) 12 months after the date of enactment of this 
                Act; or
                    (B) 12 months after the date of publication of such 
                final regulations by the Board.

SEC. 1306. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO INCUR FINANCE 
              CHARGES.

    (a) Prohibition on Certain Actions for Failure To Incur Finance 
Charges.--Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
amended by adding at the end the following:
    ``(h) Prohibition on Certain Actions for Failure To Incur Finance 
Charges.--A creditor of an account under an open end consumer credit 
plan may not terminate an account prior to its expiration date solely 
because the consumer has not incurred finance charges on the account. 
Nothing in this subsection shall prohibit a creditor from terminating 
an account for inactivity in 3 or more consecutive months.''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate regulations 
        implementing the requirements of section 127(h) of the Truth in 
        Lending Act, as added by this section.
            (2) Effective date.--The amendment made by subsection (a) 
        and regulations issued under paragraph (1) of this subsection 
        shall not take effect until the later of--
                    (A) 12 months after the date of enactment of this 
                Act; or
                    (B) 12 months after the date of publication of such 
                final regulations by the Board.

SEC. 1307. DUAL USE DEBIT CARD.

    (a) Report.--The Board may conduct a study of, and present to 
Congress a report containing its analysis of, consumer protections 
under existing law to limit the liability of consumers for unauthorized 
use of a debit card or similar access device. Such report, if 
submitted, shall include recommendations for legislative initiatives, 
if any, of the Board, based on its findings.
    (b) Considerations.--In preparing a report under subsection (a), 
the Board may include--
            (1) the extent to which section 909 of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693g), as in effect at the time of the 
        report, and the implementing regulations promulgated by the 
        Board to carry out that section provide adequate unauthorized 
        use liability protection for consumers;
            (2) the extent to which any voluntary industry rules have 
        enhanced or may enhance the level of protection afforded 
        consumers in connection with such unauthorized use liability; 
        and
            (3) whether amendments to the Electronic Fund Transfer Act 
        (15 U.S.C. 1693 et seq.), or revisions to regulations 
        promulgated by the Board to carry out that Act, are necessary 
        to further address adequate protection for consumers concerning 
        unauthorized use liability.

SEC. 1308. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT 
              STUDENTS.

    (a) Study.--
            (1) In general.--The Board shall conduct a study regarding 
        the impact that the extension of credit described in paragraph 
        (2) has on the rate of bankruptcy cases filed under title 11, 
        United States Code.
            (2) Extension of credit.--The extension of credit described 
        in this paragraph is the extension of credit to individuals who 
        are--
                    (A) claimed as dependents for purposes of the 
                Internal Revenue Code of 1986; and
                    (B) enrolled within 1 year of successfully 
                completing all required secondary education 
                requirements and on a full-time basis, in postsecondary 
                educational institutions.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Board shall submit to the Senate and the House of 
Representatives a report summarizing the results of the study conducted 
under subsection (a).

SEC. 1309. CLARIFICATION OF CLEAR AND CONSPICUOUS.

    (a) Regulations.--Not later than 6 months after the date of 
enactment of this Act, the Board, in consultation with the other 
Federal banking agencies (as defined in section 3 of the Federal 
Deposit Insurance Act), the National Credit Union Administration Board, 
and the Federal Trade Commission, shall promulgate regulations to 
provide guidance regarding the meaning of the term ``clear and 
conspicuous'', as used in subparagraphs (A), (B), and (C) of section 
127(b)(11) and clauses (ii) and (iii) of section 127(c)(6)(A) of the 
Truth in Lending Act.
    (b) Examples.--Regulations promulgated under subsection (a) shall 
include examples of clear and conspicuous model disclosures for the 
purposes of disclosures required by the provisions of the Truth in 
Lending Act referred to in subsection (a).
    (c) Standards.--In promulgating regulations under this section, the 
Board shall ensure that the clear and conspicuous standard required for 
disclosures made under the provisions of the Truth in Lending Act 
referred to in subsection (a) can be implemented in a manner which 
results in disclosures which are reasonably understandable and designed 
to call attention to the nature and significance of the information in 
the notice.

      TITLE XIV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 1401. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as otherwise provided in this Act, this 
Act and the amendments made by this Act shall take effect 180 days 
after the date of enactment of this Act.
    (b) Application of Amendments.--
            (1) In general.--Except as otherwise provided in this Act 
        and paragraph (2), the amendments made by this Act shall not 
        apply with respect to cases commenced under title 11, United 
        States Code, before the effective date of this Act.
            (2) Limitations on homestead exemption.--The amendments 
        made by sections 308 and 322 shall apply with respect to cases 
        commenced under title 11, United States Code, on or after the 
        date of the enactment of this Act.
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