I 
107TH CONGRESS 
2D SESSION 
H. R. 5744
To amend title 11 of the United States Code, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 14, 2002
Mr. GEKAS 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 Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CON-
TENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Bankruptcy Abuse Prevention and Consumer Protection 
Act of 2002’’. 
(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 pro-
ceedings. 
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 in-
tended 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 infor-
mation. 
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 em-
ployee 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 in-
sured depository institutions. 
Sec. 902. Authority of the corporation with respect to failed and failing institu-
tions. 
Sec. 903. Amendments relating to transfers of qualified financial contracts. 
Sec. 904. Amendments relating to disaffirmance or repudiation of qualified fi-
nancial 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 busi-
ness 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 bank-
ruptcy 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 stu-
dents. 
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 insert-
ing the following: 
‘‘§ 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 re-
quest 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 sen-
tence; and 
(C) by adding at the end the following: 
‘‘(2)(A)(i) In considering under paragraph (1) wheth-
er the granting of relief would be an abuse of the provi-
sions 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 un-
secured 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 In-
ternal 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 debt-
or 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 fam-
ily 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 month-
ly expenses described in the preceding sentence shall be 
kept confidential by the court. In addition, if it is dem-
onstrated 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 sec-
ondary 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 Serv-
ice, based on the actual expenses for home energy costs 
if the debtor provides documentation of such actual ex-
penses and demonstrates that such actual expenses are 
reasonable and necessary.
‘‘(iii) The debtor’s average monthly payments on ac-
count of secured debts shall be calculated as the sum of—
‘‘(I) the total of all amounts scheduled as con-
tractually due to secured creditors in each month of 
the 60 months following the date of the petition; and 
‘‘(II) any additional payments to secured credi-
tors 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 pri-
ority 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 sub-
section, the presumption of abuse may only be rebutted 
by demonstrating special circumstances that justify addi-
tional 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 adjust-
ment to income; and 
‘‘(II) a detailed explanation of the special cir-
cumstances that make such expenses or adjustment 
to income necessary and reasonable. 
‘‘(iii) The debtor shall attest under oath to the accu-
racy of any information provided to demonstrate that ad-
ditional expenses or adjustments to income are required. 
‘‘(iv) The presumption of abuse may only be rebutted 
if the additional expenses or adjustments to income re-
ferred to in clause (i) cause the product of the debtor’s 
current monthly income reduced by the amounts deter-
mined 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 un-
secured 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 in-
come, and the calculations that determine whether a pre-
sumption 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 sub-
paragraph (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 per-
sonal services contract and the financial need for 
such rejection as sought by the debtor) of the debt-
or’s financial situation demonstrates abuse.
‘‘(4)(A) The court, on its own initiative or on the mo-
tion of a party in interest, in accordance with the proce-
dures 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), includ-
ing 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 vio-
lated rule 9011 of the Federal Rules of Bank-
ruptcy Procedure. 
‘‘(B) If the court finds that the attorney for the debt-
or 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 pen-
alty 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 cer-
tification 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, modi-
fication, 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 reason-
able costs (including reasonable attorneys’ fees) in con-
testing a motion filed by a party in interest (other than 
a trustee, United States trustee, or bankruptcy adminis-
trator) 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 co-
ercing a debtor into waiving a right guaranteed 
to the debtor under this title. 
‘‘(B) A small business that has a claim of an aggre-
gate amount less than $1,000 shall not be subject to sub-
paragraph (A)(ii)(I). 
‘‘(C) For purposes of this paragraph—
‘‘(i) the term ‘small business’ means an unin-
corporated business, partnership, corporation, asso-
ciation, 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 em-
ployees of—
‘‘(I) a parent corporation; and 
‘‘(II) any other subsidiary corporation of 
the parent corporation. 
‘‘(6) Only the judge, United States trustee, or bank-
ruptcy 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 in-
come 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 ex-
ceeding 4 individuals, the highest median family in-
come of the applicable State for a family of 4 or 
fewer individuals, plus $525 per month for each in-
dividual 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 in-
come 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 ex-
ceeding 4 individuals, the highest median family in-
come of the applicable State for a family of 4 or 
fewer individuals , plus $525 per month for each in-
dividual in excess of 4. 
‘‘(B) In a case that is not a joint case, current month-
ly 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 liv-
ing 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 esti-
mate 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 debt-
or files the schedule of current income re-
quired 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 sec-
tion 521(a)(1)(B)(ii); and 
‘‘(B) includes any amount paid by any en-
tity 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 depend-
ent), 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 do-
mestic 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 admin-
istrator shall, not later than 30 days after the date of fil-
ing a statement under paragraph (1), either file a motion 
to dismiss or convert under section 707(b) or file a state-
ment 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 in-
come 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 pre-
sumption of abuse has been triggered.’’. 
(e) NONLIMITATION OF INFORMATION.—Nothing in 
this title shall limit the ability of a creditor to provide in-
formation to a judge (except for information commu-
nicated 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 mean-
ing 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 no-
tice 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 vol-
untary 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 para-
graph (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 obli-
gation.’’. 
(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 fol-
lowing: 
‘‘(7) the action of the debtor in filing the peti-
tion 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 unse-
cured 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 pay-
ments, foster care payments, or disability payments 
for a dependent child made in accordance with appli-
cable 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 do-
mestic support obligation that first becomes 
payable after the date the petition is filed and 
for charitable contributions (that meet the defi-
nition 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 per-
cent 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 ex-
pended under paragraph (2) shall be determined in
accordance with subparagraphs (A) and (B) of sec-
tion 707(b)(2), if the debtor has current monthly in-
come, 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 fam-
ily 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 fam-
ily of 4 or fewer individuals, plus $525 per 
month for each individual in excess of 4.’’.
(i) SPECIAL
ALLOWANCE
FOR
HEALTH
INSUR-
ANCE.—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 pur-
chase 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 in-
surance, 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 geo-
graphical location with the same number of de-
pendents who do not otherwise have health in-
surance 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 in-
serting ‘‘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 cal-
culated and reported by the Bureau of the Cen-
sus 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;’’. 
(l) 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 Con-
gress that the Secretary of the Treasury has the authority 
to alter the Internal Revenue Service standards estab-
lished 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 find-
ings of the Director regarding the utilization of In-
ternal 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 bank-
ruptcy 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 pro-
ceeding 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 fraudu-
lently conceals assets or makes a false oath or 
statement under penalty of perjury in connec-
tion 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 Di-
rector 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 pro-
grams for debtors, and shall develop a financial manage-
ment 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 de-
veloped 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 per-
sonal 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 cur-
riculum and materials developed under sub-
section (a); and 
(B) a sample of existing consumer edu-
cation programs such as those described in the 
Report of the National Bankruptcy Review 
Commission (October 20, 1997) that are rep-
resentative 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 sub-
mit a report to the Speaker of the House of Rep-
resentatives 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 not-
withstanding any other provision of this section, an indi-
vidual 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 avail-
able credit counseling and assisted that individual in per-
forming 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 bank-
ruptcy court of that district determines that the approved 
nonprofit budget and credit counseling agencies for that 
district are not reasonably able to provide adequate serv-
ices to the additional individuals who would otherwise seek 
credit counseling from that agency by reason of the re-
quirements of paragraph (1). 
‘‘(B) Each United States trustee or bankruptcy ad-
ministrator that makes a determination described in sub-
paragraph (A) shall review that determination not later 
than 1 year after the date of that determination, and not 
less frequently than every year thereafter. Notwith-
standing 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 require-
ments 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 debt-
or 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 ad-
ministrator of such district determines that the ap-
proved instructional courses are not adequate to 
service the additional individuals required to com-
plete such instructional courses under this section 
(Each United States trustee or bankruptcy adminis-
trator 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 rea-
son of the requirements of this section. 
‘‘(3) Each United States trustee or bankruptcy ad-
ministrator who makes a determination described in para-
graph (2) shall review such determination not later than 
1 year after the date of such determination, and not less 
frequently than annually 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 ap-
proved nonprofit budget and credit counseling agen-
cy 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: 
‘‘§ 111. Credit counseling agencies; financial manage-
ment 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) cur-
rently approved by the United States trustee or the
bankruptcy administrator for the district, as applica-
ble; and 
‘‘(2) instructional courses concerning personal 
financial management currently approved by the 
United States trustee or the bankruptcy adminis-
trator for the district, as applicable. 
‘‘(b) The United States trustee or bankruptcy admin-
istrator shall only approve a credit counseling agency or 
instructional course concerning personal financial manage-
ment 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 satis-
fies the applicable standards set forth in this section.
‘‘(3) When an agency or instructional course is 
initially approved, such approval shall be for a pro-
bationary 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 pe-
riod 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 proba-
tionary or subsequent period that such agency or in-
structional course—
‘‘(A) has met the standards set forth under 
this section during such period; and 
‘‘(B) can satisfy such standards in the fu-
ture. 
‘‘(5) Not later than 30 days after any final de-
cision under paragraph (4), that occurs either after 
the expiration of the initial probationary period, or 
after any 2-year period thereafter, an interested per-
son may seek judicial review of such decision in the 
appropriate district court of the United States.
‘‘(c)(1) The United States trustee or bankruptcy ad-
ministrator 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 effec-
tively with other matters as relate to the quality, effective-
ness, 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 coun-
seling 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 coun-
seling 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, includ-
ing funding sources, counselor qualifications, pos-
sible 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 amor-
tization of their debts; 
‘‘(F) provide trained counselors who receive no 
commissions or bonuses based on the counseling ses-
sion outcome, and who have adequate experience, 
and have been adequately trained to provide coun-
seling 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 pro-
vide continuing support services for budgeting plans 
over the life of any repayment plan.
‘‘(d) The United States trustee or bankruptcy admin-
istrator shall only approve an instructional course con-
cerning personal financial management—
‘‘(1) for an initial probationary period under 
subsection (b)(3) if the course will provide at a min-
imum—
‘‘(A) trained personnel with adequate expe-
rience and training in providing effective in-
struction and services; 
‘‘(B) learning materials and teaching 
methodologies designed to assist debtors in un-
derstanding personal financial management and 
that are consistent with stated objectives di-
rectly related to the goals of such instructional 
course; 
‘‘(C) adequate facilities situated in reason-
ably convenient locations at which such instruc-
tional course is offered, except that such facili-
ties may include the provision of such instruc-
tional course or program by telephone or 
through the Internet, if such instructional 
course or program is effective; and 
‘‘(D) the preparation and retention of rea-
sonable records (which shall include the debt-
or’s bankruptcy case number) to permit evalua-
tion 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 in-
structional course or program, which shall be 
available for inspection and evaluation by the 
Executive Office for United States Trustees, 
the United States trustee, bankruptcy adminis-
trator, 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 there-
of has demonstrated that the course meets the 
standards of paragraph (1) and, in addition—
‘‘(A) has been effective in assisting a sub-
stantial number of debtors to understand per-
sonal financial management; and 
‘‘(B) is otherwise likely to increase sub-
stantially debtor understanding of personal fi-
nancial 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 cred-
it counseling agency upon finding such agency does not 
meet the qualifications of subsection (b). 
‘‘(f) The United States trustee or bankruptcy admin-
istrator 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 main-
tained 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 neg-
ligently 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 debt-
or as a result of the violation; and 
‘‘(B) any court costs or reasonable attorneys’ 
fees (as determined by the court) incurred in an ac-
tion to recover those damages.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions 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 fol-
lowing: 
‘‘(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 adminis-
trative 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 RESOLU-
TION. 
(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 sec-
tion 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 un-
reasonably refused to negotiate a reasonable alter-
native 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 subpara-
graph (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 con-
sider the debtor’s proposal; and 
‘‘(B) the proposed alternative repayment sched-
ule was made prior to expiration of the 60-day pe-
riod 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 pay-
ments 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 re-
quired by the plan (including crediting the amounts re-
quired 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 injunc-
tion 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 busi-
ness 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 de-
scribed 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 para-
graph, together with the agreement, statement, declara-
tion, motion and order described, respectively, in para-
graphs (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 para-
graphs (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 disclo-
sures:’; 
‘‘(B) Under the heading ‘Summary of Reaffir-
mation Agreement’, the statement: ‘This Summary 
is made pursuant to the requirements of the Bank-
ruptcy 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 ac-
crued 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 deter-
mined under paragraphs (5) and (6) of 
section 127(b) of the Truth in Lending 
Act, as applicable, as disclosed to the debt-
or in the most recent periodic statement 
prior to the agreement or, if no such peri-
odic statement has been given to the debt-
or during the prior 6 months, the annual 
percentage rate as it would have been so 
disclosed at the time the disclosure state-
ment is given to the debtor, or to the ex-
tent this annual percentage rate is not 
readily available or not applicable, then 
‘‘(II) the simple interest rate applica-
ble 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 in-
terest rate applicable to each such balance,
identifying the amount of each such bal-
ance included in the amount reaffirmed, or 
‘‘(III) if the entity making the disclo-
sure elects, to disclose the annual percent-
age rate under subclause (I) and the sim-
ple 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 agree-
ment 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 per-
centage rate is not readily available or not 
applicable, then
‘‘(II) the simple interest rate applica-
ble 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 in-
terest rate applicable to each such balance, 
identifying the amount of such balance in-
cluded in the amount reaffirmed, or 
‘‘(III) if the entity making the disclo-
sure elects, to disclose the annual percent-
age rate under (I) and the simple interest 
rate under (II). 
‘‘(F) If the underlying debt transaction was dis-
closed as a variable rate transaction on the most re-
cent 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 inter-
est 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 as-
serted over some or all of the obligations the debtor
is reaffirming and listing the items and their origi-
nal 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 origi-
nal amount of the loan. 
‘‘(H) At the election of the creditor, a state-
ment of the repayment schedule using 1 or a com-
bination of the following—
‘‘(i) by making the statement: ‘Your first 
payment in the amount of $lll is due on 
lll 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 pay-
ment schedule will be:’, and describing the re-
payment 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 ex-
tent 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 care-
fully. 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 agree-
ment, 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 agree-
ment, 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 sep-
arate 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 agree-
ment, your reaffirmation agreement becomes effec-
tive upon filing with the court unless the reaffirma-
tion is presumed to be an undue hardship as ex-
plained in Part D. 
‘‘ ‘7. If you were not represented by an attorney 
during the negotiation of the reaffirmation agree-
ment, it will not be effective unless the court ap-
proves 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 re-
view 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 re-
scind (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 cred-
itor 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 bank-
ruptcy 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 ex-
ample, if you are reaffirming an open end credit agree-
ment, 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 reaf-
firm a debt by any law. Only agree to reaffirm a debt if 
it is in your best interest. Be sure you can afford the pay-
ments 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 sub-
section (m)(2), numbered paragraph 6 in the disclo-
sures 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 agree-
ment, your reaffirmation agreement becomes effec-
tive 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 re-
affirm 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 con-
sequences of this agreement and any default under this 
agreement.
‘‘ ‘Signature of Debtor’s Attorney:
Date:’. 
‘‘(B) In the case of reaffirmations in which a pre-
sumption of undue hardship has been established, the cer-
tification 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 Reaffir-
mation 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 re-
ceived) is $lll, and my actual current monthly ex-
penses including monthly payments on post-bankruptcy 
debt and other reaffirmation agreements total $lll, 
leaving $lll 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 pay-
ments, 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: lll. 
‘‘ ‘2. I received a copy of the Reaffirmation Disclosure 
Statement in Part A and a completed and signed reaffir-
mation 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 State-
ment 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 com-
pleted only where debtor is not represented by an attor-
ney.). 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 rea-
sons 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 agree-
ment 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 agree-
ment required under subsection (k)(6)(A) is less than the 
scheduled payments on the reaffirmed debt. This pre-
sumption 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 dis-
approved 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: 
‘‘§ 158. Designation of United States attorneys and 
agents of the Federal Bureau of Inves-
tigation to address abusive reaffirma-
tions 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 sec-
tion 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 sub-
section (b) shall address violations of section 152 or 157 
relating to materially fraudulent statements in bankruptcy 
schedules that are intentionally false or intentionally mis-
leading. 
‘‘(b) UNITED STATES ATTORNEYS AND AGENTS OF 
THE FEDERAL BUREAU OF INVESTIGATION.—The indi-
viduals 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 Inves-
tigation (within the meaning of section 3107) for 
each field office of the Federal Bureau of Investiga-
tion. 
‘‘(c) BANKRUPTCY INVESTIGATIONS.—Each United 
States attorney designated under this section shall, in ad-
dition to any other responsibilities, have primary responsi-
bility for carrying out the duties of a United States attor-
ney 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 amend-
ed 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 sub-
section (p), and
(2) by inserting after subsection (n) the fol-
lowing: 
‘‘(o) Notwithstanding subsection (f), if a person pur-
chases 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 in-
terest 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 Comp-
troller General shall submit to the President pro tempore 
of the Senate and the Speaker of the House of Represent-
atives a report on the results of the study conducted under 
subsection (a), together with recommendations for legisla-
tion (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 OBLIGA-
TION. 
Section 101 of title 11, United States Code, is 
amended—
(1) by striking paragraph (12A); and 
(2) by inserting after paragraph (14) the fol-
lowing: 
‘‘(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 applica-
ble 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, mainte-
nance, 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 establish-
ment before or after entry of an order for relief 
under this title, by reason of applicable provi-
sions 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 accord-
ance with applicable nonbankruptcy law by 
a governmental unit; and 
‘‘(D) not assigned to a nongovernmental 
entity, unless that obligation is assigned volun-
tarily 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 SUP-
PORT 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 re-
designated, the following: 
‘‘(1) First: 
‘‘(A) Allowed unsecured claims for domes-
tic support obligations that, as of the date of 
the filing of the petition, are owed to or recover-
able by a spouse, former spouse, or child of the 
debtor, or the parent, legal guardian, or respon-
sible 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 subpara-
graph (A), allowed unsecured claims for domes-
tic 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 ob-
ligation 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 appli-
cable nonbankruptcy law, on the condition that 
funds received under this paragraph by a gov-
ernmental unit under this title after the date of 
the filing of the petition be applied and distrib-
uted in accordance with applicable nonbank-
ruptcy 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 obliga-
tion 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 pe-
riod 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 pe-
riod 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 pay-
ment of all amounts owed for a claim entitled to pri-
ority 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 accru-
ing after the date of the filing of the petition on un-
secured claims that are nondischargeable under sec-
tion 1228(a), except that such interest may be paid 
only to the extent that the debtor has disposable in-
come 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 pe-
riod 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 pe-
tition 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 administra-
tive 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 be-
fore 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 pe-
riod 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 pe-
riod 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 pay-
ment of all amounts owed for a claim entitled to pri-
ority 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 fol-
lowing:
‘‘(10) provide for the payment of interest accru-
ing after the date of the filing of the petition on un-
secured claims that are nondischargeable under sec-
tion 1328(a), except that such interest may be paid 
only to the extent that the debtor has disposable in-
come 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 ad-
ministrative order or statute to pay a domestic sup-
port obligation, the debtor has paid all amounts pay-
able 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 administra-
tive 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 be-
fore 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 fol-
lowing: 
‘‘(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 modi-
fication of an order for domestic support 
obligations; 
‘‘(iii) concerning child custody or visi-
tation; 
‘‘(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 sup-
port obligation from property that is not prop-
erty of the estate;
‘‘(C) with respect to the withholding of in-
come 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 re-
striction 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 obliga-
tions 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 insert-
ing 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 fol-
lows through the end of the paragraph and in-
serting 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, notwith-
standing 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 subpara-
graph 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 
MO-
TIONS. 
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 obliga-
tion;’’. 
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 debt-
or’’.
SEC. 219. COLLECTION OF CHILD SUPPORT. 
(a) DUTIES OF TRUSTEE UNDER CHAPTER 7.—Sec-
tion 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 pe-
riod 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 serv-
ices 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 re-
sides, for assistance in collecting child support dur-
ing 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 en-
forcement agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and 
‘‘(iv) the name of each creditor that holds 
a claim that—
‘‘(I) is not discharged under para-
graph (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 sub-
paragraph (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 amend-
ed—
(1) in subsection (a)—
(A) in paragraph (6), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (7), by striking the pe-
riod 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 serv-
ices 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 re-
sides, for assistance in collecting child support dur-
ing 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 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 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 ad-
dress of the debtor’s employer; and 
‘‘(iv) the name of each creditor that holds 
a claim that—
‘‘(I) is not discharged under para-
graph (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 sub-
paragraph (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 amend-
ed—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at 
the end;
(B) in paragraph (5), by striking the pe-
riod 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 serv-
ices 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 re-
sides, for assistance in collecting child support dur-
ing 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 en-
forcement agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and 
‘‘(iv) the name of each creditor that holds 
a claim that—
‘‘(I) is not discharged under para-
graph (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 sub-
paragraph (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 amend-
ed—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (5), by striking the pe-
riod 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 serv-
ices 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 re-
sides, for assistance in collecting child support dur-
ing 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 en-
forcement agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and 
‘‘(iv) the name of each creditor that holds 
a claim that—
‘‘(I) is not discharged under para-
graph (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 sub-
paragraph (A) shall not be liable by reason of making that 
disclosure.’’. 
SEC. 
220. 
NONDISCHARGEABILITY 
OF 
CERTAIN 
EDU-
CATIONAL BENEFITS AND LOANS. 
Section 523(a) of title 11, United States Code, is 
amended by striking paragraph (8) and inserting the fol-
lowing: 
‘‘(8) unless excepting such debt from discharge 
under this paragraph would impose an undue hard-
ship on the debtor and the debtor’s dependents, 
for—
‘‘(A)(i) an educational benefit overpayment 
or loan made, insured, or guaranteed by a gov-
ernmental 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 sti-
pend; 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 indi-
vidual;’’. 
Subtitle C—Other Consumer 
Protections 
SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANK-
RUPTCY FILINGS. 
Section 110 of title 11, United States Code, is 
amended—
(1) in subsection (a)(1), by striking ‘‘or an em-
ployee of an attorney’’ and inserting ‘‘for the debtor 
or an employee of such attorney under the direct su-
pervision of such attorney’’; 
(2) in subsection (b)—
(A) in paragraph (1), by adding at the end 
the following: ‘‘If a bankruptcy petition pre-
parer is not an individual, then an officer, prin-
cipal, responsible person, or partner of the pre-
parer shall be required to—
‘‘(A) sign the document for filing; and 
‘‘(B) print on the document the name and ad-
dress of that officer, principal, responsible person or 
partner.’’; and
(B) by striking paragraph (2) and insert-
ing 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 Con-
ference 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 attor-
ney 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 fil-
ing.’’; 
(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 fol-
lowing: 
‘‘(B) If a bankruptcy petition preparer is not an indi-
vidual, 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 elimi-
nated 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 com-
mencing 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 reaffir-
mation 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), re-
spectively; 
(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 max-
imum 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 fol-
lowing: ‘‘If rules or guidelines setting a 
maximum fee for services have been pro-
mulgated or prescribed under paragraph 
(1), the declaration under this paragraph 
shall include a certification that the bank-
ruptcy petition preparer complied with the 
notification requirement under paragraph 
(1).’’; 
(D) by striking paragraph (3), as so redes-
ignated, and inserting the following: 
‘‘(3)(A) The court shall disallow and order the imme-
diate 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 fil-
ing of the petition; or 
‘‘(ii) found to be in violation of any rule or 
guideline promulgated or prescribed under para-
graph (1). 
‘‘(B) All fees charged by a bankruptcy petition pre-
parer 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 bank-
ruptcy administrator, or the court, on the ini-
tiative of the court,’’; 
(9) in subsection (i)(1), by striking the matter 
preceding subparagraph (A) and inserting the fol-
lowing: 
‘‘(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 debt-
or, trustee, United States trustee, or bankruptcy adminis-
trator, and after the court holds a hearing with respect 
to that violation or act, the court shall order the bank-
ruptcy petition preparer to pay to the debtor—’’; 
(10) in subsection (j)—
(A) in paragraph (2)—
(i) in subparagraph (A)(i)(I), by strik-
ing ‘‘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 dis-
gorge 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 as-
sessed under paragraph (1) in any case in which the court 
finds that a bankruptcy petition preparer—
‘‘(A) advised the debtor to exclude assets or in-
come 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 man-
ner that failed to disclose the identity of the pre-
parer. 
‘‘(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 judi-
cial 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 sub-
paragraph 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 de-
posited 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 oper-
ation 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, de-
signed 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 per-
sonal injuries resulting from the operation of a 
motor vehicle or vessel if such operation was unlaw-
ful because the debtor was intoxicated from using al-
cohol, a drug, or another substance.’’. 
SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANK-
RUPTCY. 
(a) IN GENERAL.—Section 522 of title 11, United 
States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (2)—
100
(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 fol-
lowing: 
‘‘(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 insert-
ing: 
‘‘(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’’;
101
(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 sub-
section (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 Rev-
enue Service; and 
‘‘(ii)(I) the retirement fund is in substan-
tial compliance with the applicable requirements 
of the Internal Revenue Code of 1986; or
102
‘‘(II) the retirement fund fails to be in 
substantial compliance with the applicable re-
quirements of the Internal Revenue Code of 
1986 and the debtor is not materially respon-
sible 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 ex-
emption under paragraph (3)(C) or subsection 
(d)(12) by reason of that direct transfer. 
‘‘(D)(i) Any distribution that qualifies as an eli-
gible rollover distribution within the meaning of sec-
tion 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 sec-
tion 401, 403, 408, 408A, 414, 457, or 501(a) 
of the Internal Revenue Code of 1986; and
103
‘‘(II) to the extent allowed by law, is de-
posited 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 fol-
lowing: 
‘‘(19) under subsection (a), of withholding of 
income from a debtor’s wages and collection of 
amounts withheld, under the debtor’s agreement au-
104
thorizing that withholding and collection for the ben-
efit 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 with-
held 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 Em-
ployee 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 require-
ments 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;’’.
105
(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: 
‘‘(18) 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:
106
‘‘(f) A plan may not materially alter the terms of a 
loan described in section 362(b)(19) and any amounts re-
quired 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 de-
scribed 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 re-
quire.’’. 
(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),’’.
107
SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANK-
RUPTCY. 
(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 re-
tirement 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
108
‘‘(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 bene-
ficiary 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 accord-
ance with section 529(b)(1)(A) of the Internal Rev-
enue 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 fil-
ing 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, step-
daughter, 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 con-
109
tributions 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 Con-
sumer Price Index prepared by the Department 
of Labor; and 
‘‘(C) in the case of funds paid or contrib-
uted to such program having the same des-
ignated 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.’’.
110
(b) DEBTOR’S DUTIES.—Section 521 of title 11, 
United States Code, as amended by section 106, is amend-
ed 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 fol-
lowing: 
‘‘(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 fol-
lowing: 
‘‘(4A) ‘bankruptcy assistance’ means any goods 
or services sold or otherwise provided to an assisted 
person with the express or implied purpose of pro-
viding information, advice, counsel, document prepa-
111
ration, or filing, or attendance at a creditors’ meet-
ing or appearing in a proceeding on behalf of an-
other or providing legal representation with respect 
to a case or proceeding under this title;’’; and 
(3) by inserting after paragraph (12) the fol-
lowing: 
‘‘(12A) ‘debt relief agency’ means any person 
who provides any bankruptcy assistance to an as-
sisted 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 in-
clude—
‘‘(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 ex-
empt 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 as-
sisted 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
112
union (as those terms are defined in section 
101 of the Federal Credit Union Act), or any 
affiliate or subsidiary of such depository institu-
tion 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: 
‘‘§ 526. Restrictions on debt relief agencies 
‘‘(a) A debt relief agency shall not—
‘‘(1) fail to perform any service that such agen-
cy informed an assisted person or prospective as-
sisted 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 mis-
leading, or that upon the exercise of reasonable care,
113
should have been known by such agency to be untrue 
or misleading; 
‘‘(3) misrepresent to any assisted person or pro-
spective assisted person, directly or indirectly, af-
firmatively or by material omission, with respect 
to—
‘‘(i) the services that such agency will pro-
vide 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 protec-
tion or right provided under this section shall not be en-
forceable 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 be-
tween a debt relief agency and an assisted person that
114
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 as-
sisted person in the amount of any fees or charges in con-
nection with providing bankruptcy assistance to such per-
son 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 com-
ply 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 as-
sisted person in a case or proceeding under this title 
that is dismissed or converted to a case under an-
other 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.
115
‘‘(3) In addition to such other remedies as are pro-
vided 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 viola-
tion; 
‘‘(B) may bring an action on behalf of its resi-
dents to recover the actual damages of assisted per-
sons arising from such violation, including any liabil-
ity 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 deter-
mined by the court. 
‘‘(4) The district court of the United States for any 
district located in the State shall have concurrent jurisdic-
tion of any action under subparagraph (A) or (B) of para-
graph (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
116
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 sec-
tion 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 instru-
mentality 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 sec-
tions 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.’’.
117
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: 
‘‘§ 527. Disclosures 
‘‘(a) A debt relief agency providing bankruptcy assist-
ance 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 no-
tice 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 per-
son is required to provide with a petition and 
thereafter during a case under this title is re-
quired to be complete, accurate, and truthful; 
‘‘(B) all assets and all liabilities are re-
quired to be completely and accurately disclosed 
in the documents filed to commence the case, 
and the replacement value of each asset as de-
fined in section 506 of this title must be stated
118
in those documents where requested after rea-
sonable 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 rea-
sonable inquiry; and 
‘‘(D) information that an assisted person 
provides during their case may be audited pur-
suant 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 assist-
ance to an assisted person shall provide each assisted per-
son at the same time as the notices required under sub-
section (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 pro-
vided to the assisted person: 
‘‘ ‘IMPORTANT INFORMATION ABOUT BANK-
RUPTCY ASSISTANCE SERVICES FROM AN AT-
119
TORNEY 
OR 
BANKRUPTCY 
PETITION 
PRE-
PARER. 
‘‘ ‘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 bank-
ruptcy 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 bank-
ruptcy 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
120
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 ques-
tioned by a court official called a ‘trustee’ and by credi-
tors. 
‘‘ ‘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 per-
mitted 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 chap-
ter 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 Bank-
ruptcy Code other than chapter 7 or chapter 13, you will 
want to find out what needs to be done from someone fa-
miliar with that type of relief. 
‘‘ ‘Your bankruptcy case may also involve litigation. 
You are generally permitted to represent yourself in litiga-
tion in bankruptcy court, but only attorneys, not bank-
ruptcy petition preparers, can give you legal advice.’. 
‘‘(c) Except to the extent the debt relief agency pro-
vides the required information itself after reasonably dili-
gent inquiry of the assisted person or others so as to ob-
121
tain 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 re-
quired for the notice required under subsection (a)(1) rea-
sonably 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 accord-
ance with section 707(b)(2) and related calculations; 
‘‘(2) how to complete the list of creditors, in-
cluding 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
122
for 2 years after the date on which the notice is given 
the assisted person.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions 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: 
‘‘§ 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 bank-
ruptcy 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 conspicu-
ously—
‘‘(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;
123
‘‘(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 spe-
cific mailings, telephonic or electronic messages, or 
otherwise) that the services or benefits are with re-
spect to bankruptcy relief under this title; and 
‘‘(4) clearly and conspicuously use the following 
statement in such advertisement: ‘We are a debt re-
lief agency. We help people file for bankruptcy relief 
under the Bankruptcy Code.’ or a substantially simi-
lar 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 adver-
tisement; and 
‘‘(B) statements such as ‘federally supervised 
repayment plan’ or ‘Federal debt restructuring help’ 
or other similar statements that could lead a reason-
able consumer to believe that debt counseling was 
being offered when in fact the services were directed 
to providing bankruptcy assistance with a chapter
124
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, evic-
tion 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 bank-
ruptcy relief under this title; and 
‘‘(B) include the following statement: ‘We are a 
debt relief agency. We help people file for bank-
ruptcy relief under the Bankruptcy Code.’ or a sub-
stantially similar statement.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions 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, ef-
fectiveness, 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
125
promptly after the commencement of cases by debtors who 
are individuals under such title, the names and social secu-
rity numbers of such debtors for the purposes of allowing 
such Office to determine whether such debtors have out-
standing 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 con-
taining the results of the study required by subsection (a).
SEC. 231. PROTECTION OF PERSONALLY IDENTIFIABLE IN-
FORMATION. 
(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 informa-
tion 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—
126
‘‘(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 appli-
cable 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 per-
sonal, 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;
127
‘‘(ii) the geographical address of a 
physical place of residence of such indi-
vidual; 
‘‘(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 cer-
tificate 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;’’.
128
SEC. 232. CONSUMER PRIVACY OMBUDSMAN. 
(a) CONSUMER PRIVACY OMBUDSMAN.—Title 11 of 
the United States Code is amended by inserting after sec-
tion 331 the following: 
‘‘§ 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 con-
sumer privacy ombudsman in the case and shall require 
that notice of such hearing be timely given to such om-
budsman. 
‘‘(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;
129
‘‘(3) the potential costs or benefits to con-
sumers if such sale or such lease is approved by the 
court; and 
‘‘(4) the potential alternatives that would miti-
gate potential privacy losses or potential costs to 
consumers. 
‘‘(c) A consumer privacy ombudsman shall not dis-
close any personally identifiable information obtained by 
the ombudsman under this title.’’. 
(b) COMPENSATION
OF CONSUMER PRIVACY OM-
BUDSMAN.—Section 330(a)(1) of title 11, United States 
Code, is amended in the matter preceding subparagraph 
(A), by inserting ‘‘a consumer privacy ombudsman ap-
pointed under section 332,’’ before ‘‘an examiner’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subchapter II of chapter 3 of title 11, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘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:
130
‘‘§ 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) ap-
pointed 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 re-
lating 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’’.
131
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 in-
serting ‘‘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
132
refiled under a chapter other than chapter 7 after 
dismissal under section 707(b)—
‘‘(A) the stay under subsection (a) with re-
spect 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 credi-
tors (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 dem-
onstrates 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
133
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 peti-
tion or other documents as re-
quired 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 pro-
tection as ordered by the court; 
or 
‘‘(cc) perform the terms of a 
plan confirmed by the court; or 
‘‘(III) there has not been a sub-
stantial change in the financial or per-
sonal affairs of the debtor since the
134
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 chap-
ter 7, with a discharge; or 
‘‘(bb) if a case under chap-
ter 11 or 13, with a confirmed 
plan that will be fully performed; 
and 
‘‘(ii) as to any creditor that com-
menced 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, condi-
tioning, 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 sec-
tion 707(b), the stay under subsection (a) shall not 
go into effect upon the filing of the later case; and
135
‘‘(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 limita-
tions 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 con-
vincing 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 pe-
riod; 
‘‘(II) a previous case under this title 
in which the individual was a debtor was
136
dismissed within the time period stated in 
this paragraph after the debtor failed to 
file or amend the petition or other docu-
ments as required by this title or the court 
without substantial excuse (but mere inad-
vertence or negligence shall not be sub-
stantial excuse unless the dismissal was 
caused by the negligence of the debtor’s at-
torney), failed to provide adequate protec-
tion 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 substan-
tial change in the financial or personal af-
fairs 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 per-
formed; 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
137
the date of dismissal of such case, such action 
was still pending or had been resolved by termi-
nating, 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 bank-
ruptcy 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 ap-
proval; or 
‘‘(B) multiple bankruptcy filings affecting 
the real property.
138
If recorded in compliance with applicable State laws gov-
erning 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 subse-
quent 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 amend-
ed by inserting after paragraph (19), the following: 
‘‘(20) under subsection (a), of any act to en-
force any lien against or security interest in real 
property following the entry of an order under sec-
tion 362(d)(4) as to that property in any prior bank-
ruptcy case for a period of 2 years after entry of 
such an order, except that the debtor, in a subse-
quent 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;
139
‘‘(21) under subsection (a), of any act to en-
force any lien against or security interest in real 
property—
‘‘(A) if the debtor is ineligible under sec-
tion 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 sec-
tion 106—
(A) in paragraph (4), by striking ‘‘, and’’ 
at the end and inserting a semicolon; 
(B) in paragraph (5), by striking the pe-
riod 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 posses-
sion 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
140
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 prop-
erty; or 
‘‘(B) redeems such property from the secu-
rity interest pursuant to section 722 of this 
title. 
If the debtor fails to so act within the 45-day period re-
ferred 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 prop-
erty as is permitted by applicable nonbankruptcy law, un-
less the court determines on the motion of the trustee filed 
before the expiration of such 45-day period, and after no-
tice 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
141
(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 COLLAT-
ERAL. 
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 sub-
section (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 re-
spect to personal property of the estate or of the debtor 
securing in whole or in part a claim, or subject to an unex-
pired lease, and such personal property shall no longer be 
property of the estate if the debtor fails within the applica-
ble time set by section 521(a)(2) of this title—
142
‘‘(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 state-
ment that the debtor will either surrender the prop-
erty or retain it and, if retaining it, either redeem 
the property pursuant to section 722 of this title, re-
affirm 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 con-
tract terms. 
‘‘(2) Paragraph (1) does not apply if the court deter-
mines, on the motion of the trustee filed before the expira-
tion of the applicable time set by section 521(a)(2), after 
notice and a hearing, that such property is of consequen-
tial 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 posses-
sion to the trustee. If the court does not so determine,
143
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 speci-
fied 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 sec-
tion 522(f), 544, 545, 547, 548, or 549 of this title, noth-
144
ing 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 cir-
cumstance.’’. 
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 ear-
lier of—
‘‘(aa) the payment of the under-
lying debt determined under nonbank-
ruptcy 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
145
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 per-
sonal use of the debtor, or if collateral for that debt con-
sists 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 fol-
lowing: 
‘‘(13A) ‘debtor’s principal residence’—
‘‘(A) means a residential structure, includ-
ing incidental property, without regard to 
whether that structure is attached to real prop-
erty; and
146
‘‘(B) includes an individual condominium 
or cooperative unit, a mobile or manufactured 
home, or trailer;’’; and 
(2) by inserting after paragraph (27), the fol-
lowing: 
‘‘(27A) ‘incidental property’ means, with re-
spect 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-
147
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 sub-
paragraph (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 not-
withstanding 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 resi-
dence;
148
‘‘(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 attrib-
utable to any portion of any property that the debtor dis-
posed 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 CHAP-
TER 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 chap-
ter 11 or 12, but not in a case converted to a
149
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 chap-
ter 13—
‘‘(i) the claim of any creditor holding secu-
rity as of the date of the petition shall continue 
to be secured by that security unless the full 
amount of such claim determined under appli-
cable 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 pur-
poses 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:
150
‘‘(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 debt-
or that it is willing to have the lease assumed by the debt-
or and may condition such assumption on cure of any out-
standing default on terms set by the contract. 
‘‘(B) If, not later than 30 days after notice is pro-
vided under subparagraph (A), the debtor notifies the les-
sor 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 notifica-
tion of the debtor and negotiation of cure under this sub-
section. 
‘‘(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
151
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 prop-
erty subject to the lease.’’. 
(c) ADEQUATE PROTECTION OF LESSORS AND PUR-
CHASE 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 pursu-
ant 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 se-
cured 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’’.
152
(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 obliga-
tion that becomes due after the order for relief, re-
ducing the payments under subparagraph (A) by the 
amount so paid and providing the trustee with evi-
dence 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 attrib-
utable to the purchase of such property by the debt-
or 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
153
confirmation. If a plan is confirmed, the trustee shall dis-
tribute any such payment in accordance with the plan as 
soon as is practicable. If a plan is not confirmed, the trust-
ee 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 al-
lowed under section 503(b). 
‘‘(3) Subject to section 363, the court may, upon no-
tice and a hearing, modify, increase, or reduce the pay-
ments required under this subsection pending confirma-
tion 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)—
154
‘‘(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 be-
fore 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 ob-
tained by an individual debtor on or within 
70 days before the order for relief under 
this title, are presumed to be non-
dischargeable; 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 serv-
ices’ does not include goods or services rea-
sonably necessary for the support or main-
tenance of the debtor or a dependent of the 
debtor.’’.
155
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 sub-
section (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 sub-
section (a)(3), of an eviction action that seeks pos-
session of the residential property in which the debt-
or resides as a tenant under a lease or rental agree-
ment based on endangerment of such property or 
the illegal use of controlled substances on such prop-
erty, 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;
156
‘‘(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: 
‘‘(l)(1) Except as otherwise provided in this sub-
section, 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 mone-
tary default that gave rise to the judgment for pos-
session, after that judgment for possession was en-
tered; 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
157
under penalty of perjury that the debtor (or an adult de-
pendent of the debtor) has cured, under nonbankrupcty 
law applicable in the jurisdiction, the entire monetary de-
fault that gave rise to the judgment under which posses-
sion is sought by the lessor, subsection (b)(22) shall not 
apply, unless ordered to apply by the court under para-
graph (3). 
‘‘(3)(A) If the lessor files an objection to any certifi-
cation 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
158
possession of the residential rental property in which the 
debtor resides and does not file a certification under para-
graph (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 certifi-
cation and the applicability of the exception to the 
stay under subsection (b)(22). 
‘‘(5)(A) Where a judgment for possession of residen-
tial property in which the debtor resides as a tenant under 
a lease or rental agreement has been obtained by the les-
sor, 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—
159
‘‘(i) whether a judgment for possession of resi-
dential rental housing in which the debtor resides 
has been obtained against the debtor before the fil-
ing of the petition; and 
‘‘(ii) whether the debtor is claiming under para-
graph (1) that under nonbankruptcy law applicable 
in the jurisdiction, there are circumstances under 
which the debtor would be permitted to cure the en-
tire 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 re-
flect 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. 
‘‘(m)(1) Except as otherwise provided in this sub-
section, 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 de-
scribed in subsection (b)(23) and serves such objection
160
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 certifi-
cation 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 satis-
faction 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 sub-
section (a)(3) shall not be required to enable the les-
sor 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 certifi-
cation.
161
‘‘(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 en-
able 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 sub-
section (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
162
‘‘(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 AN-
TIQUES. 
(a) DEFINITION.—Section 522(f) of title 11, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(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;
164
(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 Representa-
tives 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 bank-
ruptcy 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);’’.
165
(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 fol-
lowing: 
‘‘(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 per-
sonal injury to an individual or the death of an indi-
vidual.’’.
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 in-
validate the legal effect of such notice’’; and 
(C) by adding at the end the following:
166
‘‘(2)(A) If, within the 90 days before the commence-
ment 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 in-
clude 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
167
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 with-
drawn 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 cred-
itor. If such creditor designates a person or an organiza-
tional subdivision of such creditor to be responsible for
168
receiving notices under this title and establishes reason-
able procedures so that such notices receivable by such 
creditor are to be delivered to such person or such subdivi-
sion, 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 atten-
tion 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 sec-
tion 106, by amending paragraph (1) to read as fol-
lows: 
‘‘(1) file—
‘‘(A) a list of creditors; and 
‘‘(B) unless the court orders otherwise—
169
‘‘(i) a schedule of assets and liabil-
ities; 
‘‘(ii) a schedule of current income and 
current expenditures; 
‘‘(iii) a statement of the debtor’s fi-
nancial affairs and, if section 342(b) ap-
plies, a certificate—
‘‘(I) of an attorney whose name 
is indicated on the petition as the at-
torney for the debtor, or any bank-
ruptcy petition preparer signing the 
petition under section 110(b)(1), indi-
cating 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 indi-
cated, and no bankruptcy petition pre-
parer signed the petition, of the debt-
or 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
170
the debtor from any employer of the debt-
or; 
‘‘(v) a statement of the amount of 
monthly net income, itemized to show how 
the amount is calculated; and 
‘‘(vi) a statement disclosing any rea-
sonably anticipated increase in income or 
expenditures over the 12-month period fol-
lowing the date of the filing of the peti-
tion;’’; 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 debt-
or, a transcript of such return) for the most recent 
tax year ending immediately before the commence-
171
ment 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 time-
ly 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 com-
ply is due to circumstances beyond the control of the debt-
or. 
‘‘(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 tran-
script 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 cir-
cumstances 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
172
‘‘(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 au-
thority, a copy of each Federal income tax return re-
quired 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 au-
thority, each Federal income tax return required 
under applicable law (or at the election of the debt-
or, 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 subse-
quently filed for any tax year of the debtor ending 
in the 3-year period ending on the date of the com-
mencement 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—
173
‘‘(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 be-
fore 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 in-
come, expenditures, and monthly income are cal-
culated. 
‘‘(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
174
‘‘(C) the identity of any person who contrib-
uted, 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 copy-
ing, 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 Con-
sumer Protection Act of 2002, the Director of the Admin-
istrative 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 in-
clude 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 enact-
ment of the Bankruptcy Abuse Prevention and Consumer 
Protection Act of 2002, the Director of the Administrative 
Office of the United States Courts shall prepare and sub-
mit to the President pro tempore of the Senate and the 
Speaker of the House of Representatives a report that—
175
‘‘(A) assesses the effectiveness of the proce-
dures established under paragraph (1); and 
‘‘(B) if appropriate, includes proposed legisla-
tion 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 SCHED-
ULES 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 not-
withstanding section 707(a), if an individual debtor in a