The means test would not be allowed as basis for bringing a motion to dismiss the case as an abuse by any party if the household's income is less than or equal to this median. Within 30 days thereafter the UST must file a motion to dismiss or convert or file a statement why it does not believe such action is appropriate. Chapter 13 Cases There will be many more opportunities for Chapter 13 cases to be dismissed, including failing to timely file tax returns, under 1307. Section 1308 will require debtors have filed all tax returns due for a 4-year period prior to the case before the completion of the meeting of creditors. It appears this could potentially leave the meeting of creditors open for several months.
Secured creditors receive dramatically increased protection.
A debtor must provide purchase money secured lenders with reasonable evidence of insurance protecting the collateral within 60-days of filing and must continue to do so throughout the case. The Chapter 13 discharge will be dramatically reduced. The Senate version also allows a new discharge if the case is filed within 2-years of a prior Chapter 13 discharge, if extreme hardship is demonstrated. What claims are entitled to priority are rearranged and expanded again. The priority status of domestic support obligations, including child support and alimony or separate maintenance, is increased from seventh to first in 507.