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‘‘(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 referred
to in paragraph (6), the stay under section 362(a) of this
title is terminated with respect to the personal property of
the estate or of the debtor which is affected, such property
shall no longer be property of the estate, and the creditor
may take whatever action as to such property as is per-
mitted by applicable nonbankruptcy law, unless the court
determines on the motion of the trustee brought before the
expiration of such 45-day period, and after notice and a
hearing, that such property is of consequential value or ben-
efit to the estate, orders appropriate adequate protection of
the creditor’s interest, and orders the debtor to deliver any
collateral in the debtor’s possession to the trustee.’’; and
(2) in section 722, by inserting ‘‘in full at the
time of redemption’’ before the period at the end.
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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—
(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
(C) by inserting after subsection (g) the fol-
lowing:
‘‘(h)(1) In an individual case under chapter 7, 11, or
13, the stay provided by subsection (a) is terminated with
respect to personal property of the estate or of the debtor
securing in whole or in part a claim, or subject to an 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—
‘‘(A) to file timely any statement of intention re-
quired under section 521(a)(2) of this title with re-
spect to that property or to indicate in that statement
that the debtor will either surrender the property or
retain it and, if retaining it, either redeem the prop-
erty pursuant to section 722 of this title, reaffirm the
debt it secures pursuant to section 524(c) of this title,
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or assume the unexpired lease pursuant to section
365(p) of this title if the trustee does not do so, as ap-
plicable; and
‘‘(B) to take timely the action specified in that
statement of intention, as it may be amended before
expiration of the period for taking action, unless the
statement of intention specifies reaffirmation and the
creditor refuses to reaffirm on the original contract
terms.
‘‘(2) Paragraph (1) does not apply if the court 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 consequential
value or benefit to the estate, and orders appropriate ade-
quate protection of the creditor’s interest, and orders the
debtor to deliver any collateral in the debtor’s possession
to the trustee. If the court does not so determine, the stay
provided by subsection (a) shall terminate upon the conclu-
sion of the proceeding on the motion.’’; and
(2) in section 521—
(A) in subsection (a)(2), as so designated by
this Act, by striking ‘‘consumer’’;
(B) in subsection (a)(2)(B), as so designated
by this Act—
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(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), as so designated
by this Act, 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, nothing
in this title shall prevent or limit the operation of a provi-
sion 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 exist-
ence of a proceeding under this title or the insolvency of
the debtor. Nothing in this subsection shall be deemed to
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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 earlier
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
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 flush sen-
tence:
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‘‘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 3-year period 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 consists
of any other thing of value, if the debt was incurred during
the 1-year period preceding that filing.’’.
(c) DEFINITIONS.—Section 101 of title 11, United
States Code, as amended by this Act, 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
‘‘(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:
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‘‘(27A) ‘incidental property’ means, with respect
to a debtor’s principal residence—
‘‘(A) property commonly conveyed with a
principal residence in the area where the real es-
tate 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)(A) of title 11, United States Code,
as so designated by this Act, is amended—
(1) by striking ‘‘180 days’’ and inserting ‘‘730
days’’; and
(2) by striking ‘‘, or for a longer portion of such
180-day period than in any other place’’ and insert-
ing ‘‘or if the debtor’s domicile has not been located
at a single State for such 730-day period, the place
in which the debtor’s domicile was located for 180
days immediately preceding the 730-day period or for
a longer portion of such 180-day period than in any
other place’’.
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SEC. 308. LIMITATION.
Section 522 of title 11, United States Code, is
amended—
(1) in subsection (b)(3)(A), as so designated by
this Act, by inserting ‘‘subject to subsection (o),’’ be-
fore ‘‘any property’’; and
(2) by adding at the end the following new sub-
section:
‘‘(o)(1) As a result of electing under subsection
(b)(3)(A) to exempt property under State or local law, a
debtor may not exempt any amount of interest that exceeds,
in the aggregate, $125,000 in value in—
‘‘(A) real or personal property that the debtor or
a dependent of the debtor uses as a residence;
‘‘(B) a cooperative that owns property that the
debtor or a dependent of the debtor uses as a resi-
dence; or
‘‘(C) a burial plot for the debtor or a dependent
of the debtor.
‘‘(2) The limitation under paragraph (1) shall not
apply to an exemption claimed under subsection (b)(3)(A)
by a family farmer for the principal residence of that farm-
er.’’.
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SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER
13 CASES.
(a) STOPPING ABUSIVE CONVERSIONS FROM CHAPTER
13.—Section 348(f)(1) of title 11, United States Code, is
amended—
(1) in subparagraph (A), by striking ‘‘and’’ at
the end;
(2) in subparagraph (B)—
(A) by striking ‘‘in the converted case, with
allowed secured claims’’ and inserting ‘‘only in
a case converted to a case under chapter 11 or
12, but not in a case converted to a case under
chapter 7, with allowed secured claims in cases
under chapters 11 and 12’’; and
(B) by striking the period and inserting ‘‘;
and’’; and
(3) by adding at the end the following:
‘‘(C) with respect to cases converted from chapter
13—
‘‘(i) the claim of any creditor holding 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 applica-
ble nonbankruptcy law has been paid in full as
of the date of conversion, notwithstanding any
valuation or determination of the amount of an
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allowed secured claim made for the purposes of
the chapter 13 proceeding; and
‘‘(ii) unless a prebankruptcy default has
been fully cured under the plan at the time of
conversion, in any proceeding under this title or
otherwise, the default shall have the effect given
under applicable nonbankruptcy law.’’.
(b) GIVING DEBTORS THE ABILITY TO KEEP LEASED
PERSONAL PROPERTY BY ASSUMPTION.—Section 365 of
title 11, United States Code, is amended by adding at the
end the following:
‘‘(p)(1) If a lease of personal property is rejected or
not timely assumed by the trustee under subsection (d), the
leased property is no longer property of the estate and the
stay under section 362(a) is automatically terminated.
‘‘(2)(A) In the case of an individual under chapter 7,
the debtor may notify the creditor in writing that the debtor
desires to assume the lease. Upon being so notified, the cred-
itor may, at its option, notify the debtor that it is willing
to have the lease assumed by the debtor and may condition
such assumption on cure of any outstanding default on
terms set by the contract.
‘‘(B) If, not later than 30 days after notice is provided
under subparagraph (A), the debtor notifies the lessor in
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writing that the lease is assumed, the liability under the
lease will be assumed by the debtor and not by the estate.
‘‘(C) The stay under section 362 and the injunction
under section 524(a)(2) shall not be violated by notification
of the debtor and negotiation of cure under this subsection.
‘‘(3) In a case under chapter 11 in which the debtor
is an individual and in a case under chapter 13, if the
debtor is the lessee with respect to personal property and
the lease is not assumed in the plan confirmed by the court,
the lease is deemed rejected as of the conclusion of the hear-
ing on confirmation. If the lease is rejected, the stay under
section 362 and any stay under section 1301 is automati-
cally terminated with respect to the property 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, 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—
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‘‘(I) property to be distributed
pursuant to this subsection is in the
form of periodic payments, such pay-
ments 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 pro-
vide to the holder of such claim ade-
quate protection during the period of
the plan; or’’.
(2) PAYMENTS.—Section 1326(a) of title 11,
United States Code, is amended to read as follows:
‘‘(a)(1) Unless the court orders otherwise, the debtor
shall commence making payments not later than 30 days
after the date of the filing of the plan or the order for relief,
whichever is earlier, in the amount—
‘‘(A) proposed by the plan to the trustee;
‘‘(B) scheduled in a lease of personal property
directly to the lessor for that portion of the obligation
that becomes due after the order for relief, reducing
the payments under subparagraph (A) by the amount
so paid and providing the trustee with evidence of
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such payment, including the amount and date of pay-
ment; and
‘‘(C) that provides adequate protection directly
to a creditor holding an allowed claim secured by per-
sonal property to the extent the claim is attributable
to the purchase of such property by the debtor for that
portion of the obligation that becomes due after the
order for relief, reducing the payments under sub-
paragraph (A) by the amount so paid and providing
the trustee with evidence of such payment, including
the amount and date of payment.
‘‘(2) A payment made under paragraph (1)(A) shall
be retained by the trustee until confirmation or denial of
confirmation. If a plan is confirmed, the trustee shall dis-
tribute any such payment in accordance with the plan as
soon as is practicable. If a plan is not confirmed, the trustee
shall return any such payments not previously paid and
not yet due and owing to creditors pursuant to paragraph
(3) to the debtor, after deducting any unpaid claim allowed
under section 503(b).
‘‘(3) Subject to section 363, the court may, upon notice
and a hearing, modify, increase, or reduce the payments
required under this subsection pending confirmation of a
plan.
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‘‘(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 in-
surance coverage with respect to the use or ownership of
such property and continue to do so for so long as the debtor
retains possession of such property.’’.
SEC. 310. LIMITATION ON LUXURY GOODS.
Section 523(a)(2)(C) of title 11, United States Code,
is amended to read as follows:
‘‘(C)(i) for purposes of subparagraph (A)—
‘‘(I) consumer debts owed to a single cred-
itor and aggregating more than $750 for luxury
goods or services incurred by an individual debt-
or on or within 90 days before the order for relief
under this title are presumed to be nondischarge-
able; and
‘‘(II) cash advances aggregating more than
$750 that are extensions of consumer credit
under an open end credit plan obtained by an
individual debtor on or within 70 days before the
order for relief under this title, are presumed to
be nondischargeable; and
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‘‘(ii) for purposes of this subparagraph—
‘‘(I) the term ‘extension of credit under an
open end credit plan’ means an extension of
credit under an open end credit plan, within the
meaning of the Consumer Credit Protection Act
(15 U.S.C. 1601 et seq.);
‘‘(II) the term ‘open end credit plan’ has the
meaning given that term under section 103 of
the Consumer Credit Protection Act (15 U.S.C.
1602); and
‘‘(III) the term ‘luxury goods or services’
does not include goods or services reasonably nec-
essary for the support or maintenance of the
debtor or a dependent of the debtor.’’.
SEC. 311. AUTOMATIC STAY.
(a) IN GENERAL.—Section 362(b) of title 11, United
States Code, is amended—
(1) by inserting after paragraph (21), as added
by this Act, the following:
‘‘(23) under subsection (a)(3), of the commence-
ment or continuation of any eviction, unlawful de-
tainer action, or similar proceeding by a lessor
against a debtor seeking possession of residential
property—
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‘‘(A) on which the debtor resides as a ten-
ant; and
‘‘(B) with respect to which—
‘‘(i) the debtor fails to make a rental
payment that first becomes due under the
unexpired specific term of a rental agree-
ment or lease or under a tenancy under ap-
plicable State or local rent control law,
after the date of filing of the petition or
during the 10-day period preceding the date
of filing of the petition, if the lessor files
with the court a certification that the debtor
has not made a payment for rent and serves
a copy of the certification upon the debtor;
or
‘‘(ii) the debtor has a month to month
tenancy (or one of shorter term) other than
under applicable State or local rent control
law where timely payments are made pur-
suant to clause (i) if the lessor files with the
court a certification that the requirements
of this clause have been met and serves a
copy of the certification upon the debtor.
‘‘(24) under subsection (a)(3), of the commence-
ment or continuation of any eviction, unlawful de-
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tainer action, or similar proceeding by a lessor
against a debtor seeking possession of residential
property, if during the 2-year period preceding the
date of filing of the petition, the debtor or another oc-
cupant of the leased premises—
‘‘(A) commenced another case under this
title; and
‘‘(B) failed to make any rental payment
that first became due under applicable nonbank-
ruptcy law after the date of filing of the petition
for that other case;
‘‘(25) under subsection (a)(3), of an eviction ac-
tion, to the extent that it seeks possession based on
endangerment of property or the illegal use of con-
trolled substances on the property, if the lessor files
with the court a certification that such an eviction
has been filed or the debtor has endangered property
or illegally used or allowed to be used a controlled
substance on the property during the 30-day period
preceding the date of filing of the certification, and
serves a copy of the certification upon the debtor;’’;
(2) by adding at the end of the flush material at
the end of the subsection the following: ‘‘With respect
to the applicability of paragraph (23) or (25) to a
debtor with respect to the commencement or continu-
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ation of a proceeding described in any such para-
graph, the exception to the automatic stay shall be-
come effective on the 15th day after the lessor meets
the filing and notification requirements under any
such paragraph, unless—
‘‘(A) the debtor files a certification with the
court and serves a copy of that certification
upon the lessor on or before that 15th day,
that—
‘‘(i) contests the truth or legal suffi-
ciency of the lessor’s certification; or
‘‘(ii) states that the tenant has taken
such action as may be necessary to remedy
the subject of the certification under para-
graph (23)(B)(i), except that no tenant may
take advantage of such remedy more than
once under this title; or
‘‘(B) the court orders that the exception to
the automatic stay shall not become effective, or
provides for a later date of applicability.’’; and
(3) by adding at the end of the flush material
added by paragraph (2), the following:
‘‘Where a debtor makes a certification under subparagraph
(A), the clerk of the court shall set a hearing on a date
no later than 10 days after the date of the filing of the cer-
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tification of the debtor and provide written notice thereof.
If the debtor can demonstrate to the satisfaction of the court
that the rent payment due post-petition or 10 days prior
to the petition was made prior to the filing of the debtor’s
certification under subparagraph (A), or that the situation
giving rise to the exception in paragraph (25) does not exist
or has been remedied to the court’s satisfaction, then a stay
under subsection (a) shall be in effect until the termination
of the stay under this section. If the debtor cannot make
this demonstration to the satisfaction of the court, the court
shall order the stay under subsection (a) lifted forthwith.
Where a debtor does not file a certification under subpara-
graph (A), the stay under subsection (a) shall be lifted by
operation of law and the clerk of the court shall certify a
copy of the bankruptcy docket as sufficient evidence that
the automatic stay of subsection (a) is lifted.’’.
SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY
DISCHARGES.
Title 11, United States Code, is amended—
(1) in section 727(a)(8), by striking ‘‘six’’ and
inserting ‘‘8’’; and
(2) in section 1328, by inserting after subsection
(e) the following:
‘‘(f) Notwithstanding subsections (a) and (b), the court
shall not grant a discharge of all debts provided for by the
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plan or disallowed under section 502, if the debtor has re-
ceived a discharge—
‘‘(1) in a case filed under chapter 7, 11, or 12
of this title during the three-year period preceding the
date of the order for relief under this chapter, or
‘‘(2) in a case filed under chapter 13 of this title
during the two-year period preceding the date of such
order, except that if the debtor demonstrates extreme
hardship requiring that a chapter 13 case be filed, the
court may shorten the two-year period.’’.
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 following:
‘‘(4)(A) Subject to subparagraph (B), for purposes of
paragraph (1)(B), the term ‘household goods’ means—
‘‘(i) clothing;
‘‘(ii) furniture;
‘‘(iii) appliances;
‘‘(iv) 1 radio;
‘‘(v) 1 television;
‘‘(vi) 1 VCR;
‘‘(vii) linens;
‘‘(viii) china;
‘‘(ix) crockery;
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‘‘(x) kitchenware;
‘‘(xi) educational materials and educational
equipment primarily for the use of minor dependent
children of the debtor, but only 1 personal computer
only if used primarily for the education or entertain-
ment of such minor children;
‘‘(xii) medical equipment and supplies;
‘‘(xiii) furniture exclusively for the use of minor
children, or elderly or disabled dependents of the debt-
or; and
‘‘(xiv) personal effects (including the toys and
hobby equipment of minor dependent children and
wedding rings) of the debtor and the dependents of the
debtor.
‘‘(B) The term ‘household goods’ does not include—
‘‘(i) works of art (unless by or of the debtor or
the dependents of the debtor);
‘‘(ii) electronic entertainment equipment (except
1 television, 1 radio, and 1 VCR);
‘‘(iii) items acquired as antiques;
‘‘(iv) jewelry (except wedding rings); and
‘‘(v) a computer (except as otherwise provided
for in this section), motor vehicle (including a tractor
or lawn tractor), boat, or a motorized recreational de-
vice, conveyance, vehicle, watercraft, or aircraft.’’.
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(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 Com-
mittee on the Judiciary of the Senate and the Committee
on the Judiciary of the House of Representatives containing
its findings regarding utilization of the definition of house-
hold goods, as defined in section 522(f)(4) of title 11, United
States Code, as added by this section, with respect to the
avoidance of nonpossessory, nonpurchase money security
interests in household goods under section 522(f)(1)(B) of
title 11, United States Code, and the impact that section
522(f)(4) of that title, as added by this section, has had
on debtors and on the bankruptcy courts. Such report may
include recommendations for amendments to section
522(f)(4) of title 11, United States Code, consistent with
the Director’s findings.
SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE
DEBTS.
(a) IN GENERAL.—Section 523(a) of title 11, United
States Code, is amended by inserting after paragraph (14)
the following:
‘‘(14A) incurred to pay a tax to a governmental
unit, other than the United States, that would be non-
dischargeable under paragraph (1);’’.
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(b) 
DISCHARGE
UNDER
CHAPTER
13.—Section
1328(a) of title 11, United States Code, is amended by strik-
ing paragraphs (1) through (3) and inserting the following:
‘‘(1) provided for under section 1322(b)(5);
‘‘(2) of the kind specified in paragraph (2), (3),
(4), (5), (8), or (9) of section 523(a);
‘‘(3) for restitution, or a criminal fine, included
in a sentence on the debtor’s conviction of a crime; or
‘‘(4) for restitution, or damages, awarded in a
civil action against the debtor as a result of willful
or malicious injury by the debtor that caused 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 this Act, is amended—
(1) in subsection (c)—
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’;
(B) by striking ‘‘, but the failure of such no-
tice to contain such information shall not invali-
date the legal effect of such notice’’; and
(C) by adding at the end the following:
‘‘(2) If, within the 90 days prior to the date of
the filing of a petition in a voluntary case, the cred-
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itor supplied the debtor in at least 2 communications
sent to the debtor with the current account number of
the debtor and the address at which the creditor wish-
es to receive correspondence, then the debtor shall send
any notice required under this title to the address
provided by the creditor and such notice shall include
the account number. In the event the creditor would
be in violation of applicable nonbankruptcy law by
sending any such communication within such 90-day
period and if the creditor supplied the debtor in the
last 2 communications with the current account num-
ber of the debtor and the address at which the creditor
wishes to receive correspondence, then the debtor shall
send any notice required under this title to the ad-
dress provided by the creditor and such notice shall
include the account number.’’; and
(2) by adding at the end the following:
‘‘(e) At any time, a creditor, in a case of an individual
debtor under chapter 7 or 13, may file with the court and
serve on the debtor a notice of the address to be used to
notify the creditor in that case. Five days after receipt of
such notice, if the court or the debtor is required to give
the creditor notice, such notice shall be given at that ad-
dress.
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‘‘(f) An entity may file with the court a notice stating
its address for notice in cases under chapters 7 and 13.
After 30 days following the filing of such notice, any notice
in any case filed under chapter 7 or 13 given by the court
shall be to that address unless specific notice is given under
subsection (e) with respect to a particular case.
‘‘(g)(1) Notice given to a creditor other than as pro-
vided in this section shall not be effective notice until that
notice has been brought to the attention of the creditor. If
the creditor designates a person or department to be respon-
sible for receiving notices concerning bankruptcy cases and
establishes reasonable procedures so that bankruptcy notices
received by the creditor are to be delivered to such depart-
ment or person, notice shall not be considered to have been
brought to the attention of the creditor until received by
such person or department.
‘‘(2) No sanction under section 362(k) or any other
sanction that a court may impose on account of violations
of the stay under section 362(a) or failure to comply with
section 542 or 543 may be imposed on any action of the
creditor unless the action takes place after the creditor has
received notice of the commencement of the case effective
under this section.’’.
(b) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, as amended by this Act, is amended—
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(1) in subsection (a), as so designated by this
Act, by striking paragraph (1) and inserting the fol-
lowing:
‘‘(1) file—
‘‘(A) a list of creditors; and
‘‘(B) unless the court orders otherwise—
‘‘(i) a schedule of assets and liabilities;
‘‘(ii) a schedule of current income and
current expenditures;
‘‘(iii) a statement of the debtor’s finan-
cial 
affairs 
and, 
if 
applicable, 
a
certificate—
‘‘(I) of an attorney whose name is
on the petition as the attorney for the
debtor or any bankruptcy petition pre-
parer signing the petition under sec-
tion 110(b)(1) indicating that such at-
torney or bankruptcy petition preparer
delivered to the debtor any notice re-
quired by section 342(b); or
‘‘(II) if no attorney for the debtor
is indicated and no bankruptcy peti-
tion preparer signed the petition, of the
debtor that such notice was obtained
and read by the debtor;
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‘‘(iv) copies of all payment advices or
other evidence of payment, if any, received
by the debtor from any employer of the
debtor in the period 60 days before the fil-
ing of the petition;
‘‘(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 filing;’’; and
(2) by adding at the end the following:
‘‘(e)(1) At any time, a creditor, in the case of an indi-
vidual under chapter 7 or 13, may file with the court notice
that the creditor requests the petition, schedules, and a
statement of affairs filed by the debtor in the case, and the
court shall make those documents available to the creditor
who requests those documents.
‘‘(2)(A) The debtor shall provide either a tax return
or transcript at the election of the debtor, for the latest tax-
able period prior to filing for which a tax return has been
or should have been filed, to the trustee, not later than 7
days before the date first set for the first meeting of credi-
tors, or the case shall be dismissed, unless the debtor dem-
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onstrates that the failure to file a return as required is due
to circumstances beyond the control of the debtor.
‘‘(B) If a creditor has requested a tax return or tran-
script referred to in subparagraph (A), the debtor shall pro-
vide such tax return or transcript to the requesting creditor
at the time the debtor provides the tax return or transcript
to the trustee, or the case shall be dismissed, unless the debt-
or demonstrates that the debtor is unable to provide such
information due to circumstances beyond the control of the
debtor.
‘‘(3)(A) At any time, a creditor in a case under chap-
ter 13 may file with the court notice that the creditor re-
quests the plan filed by the debtor in the case.
‘‘(B) The court shall make such plan available to the
creditor who requests such plan—
‘‘(i) at a reasonable cost; and
‘‘(ii) not later than 5 days after such request.
‘‘(f) An individual debtor in a case under chapter 7,
11, or 13 shall file with the court at the request of the judge,
United States trustee, or any party in interest—
‘‘(1) at the time filed with the taxing authority,
the Federal tax returns or transcript thereof required
under applicable law, with respect to the period from
the commencement of the case until such time as the
case is closed;
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‘‘(2) at the time filed with the taxing authority,
the Federal tax returns or transcript thereof required
under applicable law, that were not filed with the
taxing authority when the schedules under subsection
(a)(1) were filed with respect to the period that is 3
years before the order of relief;
‘‘(3) any amendments to any of the Federal tax
returns or transcripts thereof, described in paragraph
(1) or (2); and
‘‘(4) in a case under chapter 13, a statement
subject to the penalties of perjury by the debtor of the
debtor’s income and expenditures in the preceding tax
year and monthly income, that shows how the
amounts are calculated—
‘‘(A) beginning on the date that is the later
of 90 days after the close of the debtor’s tax year
or 1 year after the order for relief, unless a plan
has been confirmed; and
‘‘(B) thereafter, on or before the date that is
45 days before each anniversary of the confirma-
tion of the plan until the case is closed.
‘‘(g)(1) A statement referred to in subsection (f)(4)
shall disclose—
‘‘(A) the amount and sources of income of the
debtor;
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‘‘(B) the identity of any person responsible with
the debtor for the support of any dependent of the
debtor; and
‘‘(C) the identity of any person who contributed,
and the amount contributed, to the household in
which the debtor resides.
‘‘(2) The tax returns, amendments, and statement of
income and expenditures described in subsection (e)(2)(A)
and subsection (f) shall be available to the United States
trustee, any bankruptcy administrator, any trustee, and
any party in interest for inspection and copying, subject
to the requirements of subsection (h).
‘‘(h)(1) Not later than 180 days after the date of enact-
ment of the Bankruptcy Reform Act of 2001, the Director
of the Administrative Office of the United States Courts
shall establish procedures for safeguarding the confiden-
tiality of any tax information required to be provided
under this section.
‘‘(2) The procedures under paragraph (1) shall include
restrictions on creditor access to tax information that is re-
quired to be provided under this section.
‘‘(3) Not later than 1 year and 180 days after the date
of enactment of the Bankruptcy Reform Act of 2001, the
Director of the Administrative Office of the United States
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Courts shall prepare and submit to Congress a report
that—
‘‘(A) assesses the effectiveness of the procedures
under paragraph (1); and
‘‘(B) if appropriate, includes proposed 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 a
trustee serving in the case, 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; and
‘‘(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 amend-
ed by this Act, is amended by adding at the end the fol-
lowing:
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‘‘(j)(1) Notwithstanding section 707(a), and subject to
paragraph (2), if an individual debtor in a voluntary case
under chapter 7 or 13 fails to file all of the information
required under subsection (a)(1) within 45 days after the
filing of the petition commencing the case, the case shall
be automatically dismissed effective on the 46th day after
the filing of the petition.
‘‘(2) With respect to a case described in paragraph (1),
any party in interest may request the court to enter an
order dismissing the case. If requested, the court shall enter
an order of dismissal not later than 5 days after such re-
quest.
‘‘(3) Upon request of the debtor made within 45 days
after the filing of the petition commencing a case described
in paragraph (1), the court may allow the debtor an addi-
tional period of not to exceed 45 days to file the information
required under subsection (a)(1) if the court finds justifica-
tion for extending the period for the filing.’’.
SEC. 317. ADEQUATE TIME TO PREPARE FOR HEARING ON
CONFIRMATION OF THE PLAN.
Section 1324 of title 11, United States Code, is
amended—
(1) by striking ‘‘After’’ and inserting the fol-
lowing:
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‘‘(a) Except as provided in subsection (b) and after’’;
and
(2) by adding at the end the following:
‘‘(b) The hearing on confirmation of the plan may be
held not earlier than 20 days and not later than 45 days
after the date of the meeting of creditors under section
341(a).’’.
SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION
IN CERTAIN CASES.
Title 11, United States Code, is amended—
(1) by amending section 1322(d) to read as fol-
lows:
‘‘(d)(1) If the current monthly income of the debtor
and the debtor’s spouse combined, when multiplied by 12,
is not less than—
‘‘(A) in the case of a debtor in a household of 1
person, the median family income of the applicable
State for 1 earner last reported by the Bureau of the
Census;
‘‘(B) in the case of a debtor in a household of 2,
3, or 4 individuals, the highest median family income
of the applicable State for a family of the same num-
ber or fewer individuals last reported by the Bureau
of the Census; or
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‘‘(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 last reported by the Bureau of the Census,
plus $525 per month for each individual in excess of
4,
the plan may not provide for payments over a period that
is longer than 5 years.
‘‘(2) If the current monthly income of the debtor and
the debtor’s spouse combined, when multiplied by 12, is less
than—
‘‘(A) in the case of a debtor in a household of 1
person, the median family income of the applicable
State for 1 earner last reported by the Bureau of the
Census;
‘‘(B) in the case of a debtor in a household of 2,
3, or 4 individuals, the highest median family income
of the applicable State for a family of the same num-
ber or fewer individuals last reported by the Bureau
of the Census; 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 last reported by the Bureau of the Census,
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plus $525 per month for each individual in excess of
4,
the plan may not provide for payments over a period that
is longer than 3 years, unless the court, for cause, approves
a longer period, but the court may not approve a period
that is longer than 5 years.’’;
(2) in section 1325(b)(1)(B), by striking ‘‘three-
year period’’ and inserting ‘‘applicable commitment
period’’; and
(3) in section 1325(b), as amended by this Act,
by adding at the end the following:
‘‘(4) For purposes of this subsection, the ‘applicable
commitment period’—
‘‘(A) subject to subparagraph (B), shall be—
‘‘(i) 3 years; or
‘‘(ii) not less than 5 years, if the current
monthly income of the debtor and the debtor’s
spouse combined, when multiplied by 12, is not
less than—
‘‘(I) in the case of a debtor in a house-
hold of 1 person, the median family income
of the applicable State for 1 earner last re-
ported by the Bureau of the Census;
‘‘(II) in the case of a debtor in a
household of 2, 3, or 4 individuals, the high-
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est median family income of the applicable
State for a family of the same number or
fewer individuals last reported by the Bu-
reau of the Census; or
‘‘(III) in the case of a debtor in a
household exceeding 4 individuals, the high-
est median family income of the applicable
State for a family of 4 or fewer individuals
last reported by the Bureau of the Census,
plus $525 per month for each individual in
excess of 4; and
‘‘(B) may be less than 3 or 5 years, whichever
is applicable under subparagraph (A), but only if the
plan provides for payment in full of all allowed unse-
cured claims over a shorter period.’’; and
(4) in section 1329(c), by striking ‘‘three years’’
and inserting ‘‘the applicable commitment period
under section 1325(b)(1)(B)’’.
SEC. 319. SENSE OF CONGRESS REGARDING EXPANSION OF
RULE 9011 OF THE FEDERAL RULES OF BANK-
RUPTCY PROCEDURE.
It is the sense of Congress that rule 9011 of the Federal
Rules of Bankruptcy Procedure (11 U.S.C. App.) should be
modified to include a requirement that all documents (in-
cluding schedules), signed and unsigned, submitted to the
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court or to a trustee by debtors who represent themselves
and debtors who are represented by an attorney be sub-
mitted only after the debtor or the debtor’s attorney has
made reasonable inquiry to verify that the information con-
tained in such documents is—
(1) well grounded in fact; and
(2) warranted by existing law or a good-faith ar-
gument for the extension, modification, or reversal of
existing law.
SEC. 320. PROMPT RELIEF FROM STAY IN INDIVIDUAL
CASES.
Section 362(e) of title 11, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(e)’’; and
(2) by adding at the end the following:
‘‘(2) Notwithstanding paragraph (1), in the case of an
individual filing under chapter 7, 11, or 13, the stay under
subsection (a) shall terminate on the date that is 60 days
after a request is made by a party in interest under sub-
section (d), unless—
‘‘(A) a final decision is rendered by the court
during the 60-day period beginning on the date of the
request; or
‘‘(B) that 60-day period is extended—
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‘‘(i) by agreement of all parties in interest;
or
‘‘(ii) by the court for such specific period of
time as the court finds is required for good
cause, as described in findings made by the
court.’’.
SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.
(a) PROPERTY OF THE ESTATE.—
(1) IN GENERAL.—Subchapter I of chapter 11 of
title 11, United States Code, is amended by adding
at the end the following:
‘‘§ 1115. Property of the estate
‘‘(a) In a case concerning an individual debtor, prop-
erty of the estate includes, in addition to the property speci-
fied in section 541—
‘‘(1) all property of the kind specified in section
541 that the debtor acquires after the commencement
of the case but before the case is closed, dismissed, or
converted to a case under chapter 7, 12, or 13, which-
ever occurs first; and
‘‘(2) earnings from services performed by the
debtor after the commencement of the case but before
the case is closed, dismissed, or converted to a case
under chapter 7, 12, or 13, whichever occurs first.’’.
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‘‘(b) Except as provided in section 1104 or a confirmed
plan or order confirming a plan, the debtor shall remain
in possession of all property of the estate.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 11 of title 11, United States Code,
is amended by adding at the end of the matter relat-
ing to subchapter I the following:
‘‘1115. Property of the estate.’’.
(b) CONTENTS OF PLAN.—Section 1123(a) of title 11,
United States Code, is amended—
(1) in paragraph (6), by striking ‘‘and’’ at the
end;
(2) in paragraph (7), by striking the period and
inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(8) in a case concerning an individual, provide
for the payment to creditors through the plan of all
or such portion of earnings from personal services
performed by the debtor after the commencement of
the case or other future income of the debtor as is nec-
essary for the execution of the plan.’’.
(c) CONFIRMATION OF PLAN.—
(1) REQUIREMENTS
RELATING
TO
VALUE
OF
PROPERTY.—Section 1129(a) of title 11, United
States Code, is amended by adding at the end the fol-
lowing:
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‘‘(15) In a case concerning an individual in
which the holder of an allowed unsecured claim ob-
jects to the confirmation of the plan—
‘‘(A) the value of the property to be distrib-
uted under the plan on account of such claim is,
as of the effective date of the plan, not less than
the amount of such claim; or
‘‘(B) the value of the property to be distrib-
uted under the plan is not less than the debtor’s
projected disposable income (as that term is de-
fined in section 1325(b)(2)) to be received during
the 5-year period beginning on the date that the
first payment is due under the plan, or during
the term of the plan, whichever is longer.’’.
(2) REQUIREMENT RELATING TO INTERESTS IN
PROPERTY.—Section 1129(b)(2)(B)(ii) of title 11,
United States Code, is amended by inserting before
the period at the end the following: ‘‘, except that in
a case concerning an individual, the debtor may re-
tain property included in the estate under section
1115, subject to the requirements of subsection
(a)(14)’’.
(d) EFFECT OF CONFIRMATION.—Section 1141(d) of
title 11, United States Code, is amended—
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(1) in paragraph (2), by striking ‘‘The confirma-
tion of a plan does not discharge an individual debt-
or’’ and inserting ‘‘A discharge under this chapter
does not discharge an individual debtor’’; and
(2) by adding at the end the following:
‘‘(5) In a case concerning an individual—
‘‘(A) except as otherwise ordered for cause shown,
the discharge is not effective until completion of all
payments under the plan; and
‘‘(B) at any time after the confirmation of the
plan and after notice and a hearing, the court may
grant a discharge to a debtor that has not completed
payments under the plan only if—
‘‘(i) for each allowed unsecured claim, the
value, as of the effective date of the plan, of prop-
erty actually distributed under the plan on ac-
count of that claim is not less than the amount
that would have been paid on such claim if the
estate of the debtor had been liquidated under
chapter 7 of this title on such date; and
‘‘(ii) modification of the plan under 1127 of
this title is not practicable.’’.
(e) MODIFICATION OF PLAN.—Section 1127 of title 11,
United States Code, is amended by adding at the end the
following:
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‘‘(e) In a case concerning an individual, the plan may
be modified at any time after confirmation of the plan but
before the completion of payments under the plan, whether
or not the plan has been substantially consummated, upon
request of the debtor, the trustee, the United States trustee,
or the holder of an allowed unsecured claim, to—
‘‘(1) increase or reduce the amount of payments
on claims of a particular class provided for by the
plan;
‘‘(2) extend or reduce the time period for such
payments; or
‘‘(3) alter the amount of the distribution to a
creditor whose claim is provided for by the plan to
the extent necessary to take account of any payment
of such claim made other than under the plan.
‘‘(f)(1) Sections 1121 through 1128 of this title and
the requirements of section 1129 of this title apply to any
modification under subsection (a).
‘‘(2) The plan, as modified, shall become the plan only
after there has been disclosure under section 1125, as the
court may direct, notice and a hearing, and such modifica-
tion is approved.’’.
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SEC. 322. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICI-
PANT CONTRIBUTIONS AND OTHER PROP-
ERTY FROM THE ESTATE.
(a) IN GENERAL.—Section 541(b) of title 11, United
States Code, is amended by inserting after paragraph (6),
as added by this Act, the following:
‘‘(7) any amount—
‘‘(A) withheld by an employer from the
wages of employees for payment as contributions
to—
‘‘(i) an employee benefit plan subject to
title I of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1001 et
seq.) or under an employee benefit plan
which is a governmental plan under section
414(d) of the Internal Revenue Code of
1986, a deferred compensation plan under
section 457 of the Internal Revenue Code of
1986, or a tax-deferred annuity under sec-
tion 403(b) of the Internal Revenue Code of
1986, except that amount shall not con-
stitute disposable income, as defined in sec-
tion 1325(b)(2) of this title; or
‘‘(ii) a health insurance plan regulated
by State law whether or not subject to such
title; or
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‘‘(B) received by the employer from employ-
ees for payment as contributions to—
‘‘(i) an employee benefit plan subject to
title I of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1001 et
seq.) or under an employee benefit plan
which is a governmental plan under section
414(d) of the Internal Revenue Code of
1986, a deferred compensation plan under
section 457 of the Internal Revenue Code of
1986, or a tax-deferred annuity under sec-
tion 403(b) of the Internal Revenue Code of
1986, except that amount shall not con-
stitute disposable income, as defined in sec-
tion 1325(b)(2) of this title; or
‘‘(ii) a health insurance plan regulated
by State law whether or not subject to such
title;’’.
(b) APPLICATION OF AMENDMENT.—The amendments
made by this section shall not apply to cases commenced
under title 11, United States Code, before the expiration
of the 180-day period beginning on the date of enactment
of this Act.
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SEC. 323. EXCLUSIVE JURISDICTION IN MATTERS INVOLV-
ING BANKRUPTCY PROFESSIONALS.
(a) IN GENERAL.—Section 1334 of title 28, United
States Code, is amended—
(1) in subsection (b), by striking ‘‘Notwith-
standing’’ and inserting ‘‘Except as provided in sub-
section (e)(2), and notwithstanding’’; and
(2) by striking subsection (e) and inserting the
following:
‘‘(e) The district court in which a case under title 11
is commenced or is pending shall have exclusive
jurisdiction—
‘‘(1) of all the property, wherever located, of the
debtor as of the date of commencement of such case,
and of property of the estate; and
‘‘(2) over all claims or causes of action that in-
volve construction of section 327 of title 11, United
States Code, or rules relating to disclosure require-
ments under section 327.’’.
(b) APPLICABILITY.—This section shall only apply to
cases filed after the date of enactment of this Act.
SEC. 324. UNITED STATES TRUSTEE PROGRAM FILING FEE
INCREASE.
(a) ACTIONS UNDER CHAPTER 7 OR 13 OF TITLE 11,
UNITED STATES CODE.—Section 1930(a) of title 28,
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United States Code, is amended by striking paragraph (1)
and inserting the following:
‘‘(1) For a case commenced—
‘‘(A) under chapter 7 of title 11, $160; or
‘‘(B) under chapter 13 of title 11, $150.’’.
(b) UNITED STATES TRUSTEE SYSTEM FUND.—Sec-
tion 589a(b) of title 28, United States Code, is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1)(A) 40.63 percent of the fees collected under
section 1930(a)(1)(A) of this title in cases commenced
under chapter 7 of title 11; and
‘‘(B) 70.00 percent of the fees collected under sec-
tion 1930(a)(1)(B) of this title in cases commenced
under chapter 13 of title 11;’’;
(2) in paragraph (2), by striking ‘‘one-half’’ and
inserting ‘‘three-fourths’’; and
(3) in paragraph (4), by striking ‘‘one-half’’ and
inserting ‘‘100 percent’’.
(c) COLLECTION AND DEPOSIT OF MISCELLANEOUS
BANKRUPTCY FEES.—Section 406(b) of the Judiciary Ap-
propriations Act, 1990 (28 U.S.C. 1931 note) is amended
by striking ‘‘pursuant to 28 U.S.C. section 1930(b) and
30.76 per centum of the fees hereafter collected under 28
U.S.C. section 1930(a)(1) and 25 percent of the fees here-
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after collected under 28 U.S.C. section 1930(a)(3) shall be
deposited as offsetting receipts to the fund established under
28 U.S.C. section 1931’’ and inserting ‘‘under section
1930(b) of title 28, United States Code, and 31.25 percent
of the fees collected under section 1930(a)(1)(A) of that title,
30.00 
percent 
of 
the 
fees 
collected 
under 
section
1930(a)(1)(B) of that title, and 25 percent of the fees col-
lected under section 1930(a)(3) of that title shall be depos-
ited as offsetting receipts to the fund established under sec-
tion 1931 of that title’’.
SEC. 325. SHARING OF COMPENSATION.
Section 504 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(c) This section shall not apply with respect to shar-
ing, or agreeing to share, compensation with a bona fide
public service attorney referral program that operates in
accordance with non-Federal law regulating attorney refer-
ral services and with rules of professional responsibility ap-
plicable to attorney acceptance of referrals.’’.
SEC. 326. FAIR VALUATION OF COLLATERAL.
Section 506(a) of title 11, United States Code, is
amended by—
(1) inserting ‘‘(1)’’ after ‘‘(a)’’; and
(2) by adding at the end the following:
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‘‘(2) In the case of an individual debtor under chapters
7 and 13, such value with respect to personal property se-
curing an allowed claim shall be determined based on the
replacement value of such property as of the date of filing
the petition without deduction for costs of sale or marketing.
With respect to property acquired for personal, family, or
household purpose, replacement value shall mean the price
a retail merchant would charge for property of that kind
considering the age and condition of the property at the
time value is determined.’’.
SEC. 327. DEFAULTS BASED ON NONMONETARY OBLIGA-
TIONS.
(a) 
EXECUTORY
CONTRACTS
AND
UNEXPIRED
LEASES.—Section 365 of title 11, United States Code, is
amended—
(1) in subsection (b)—
(A) in paragraph (1)(A), by striking the
semicolon at the end and inserting the following:
‘‘other than a default that is a breach of a provi-
sion relating to the satisfaction of any provision
(other than a penalty rate or penalty provision)
relating to a default arising from any failure to
perform nonmonetary obligations under an un-
expired lease of real property, if it is impossible
for the trustee to cure such default by performing
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nonmonetary acts at and after the time of as-
sumption, except that if such default arises from
a failure to operate in accordance with a non-
residential real property lease, then such default
shall be cured by performance at and after the
time of assumption in accordance with such
lease, and pecuniary losses resulting from such
default shall be compensated in accordance with
the provisions of paragraph (b)(l);’’; and
(B) in paragraph (2)(D), by striking ‘‘pen-
alty rate or provision’’ and inserting ‘‘penalty
rate or penalty provision’’;
(2) in subsection (c)—
(A) in paragraph (2), by inserting ‘‘or’’ at
the end;
(B) in paragraph (3), by striking ‘‘; or’’ at
the end and inserting a period; and
(C) by striking paragraph (4);
(3) in subsection (d)—
(A) by striking paragraphs (5) through (9);
and
(B) by redesignating paragraph (10) as
paragraph (5); and
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(4) in subsection (f)(1) by striking ‘‘; except
that’’ and all that follows through the end of the para-
graph and inserting a period.
(b) IMPAIRMENT OF CLAIMS OR INTERESTS.—Section
1124(2) of title 11, United States Code, is amended—
(1) in subparagraph (A), by inserting ‘‘or of a
kind that section 365(b)(2) of this title expressly does
not require to be cured’’ before the semicolon at the
end;
(2) in subparagraph (C), by striking ‘‘and’’ at
the end;
(3) by redesignating subparagraph (D) as sub-
paragraph (E); and
(4) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) if such claim or such interest arises
from any failure to perform a nonmonetary obli-
gation, other than a default arising from failure
to operate a non-residential real property lease
subject to section 365(b)(1)(A), compensates the
holder of such claim or such interest (other than
the debtor or an insider) for any actual pecu-
niary loss incurred by such holder as a result of
such failure; and’’.
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SEC. 328. NONDISCHARGEABILITY OF DEBTS INCURRED
THROUGH VIOLATIONS OF LAWS RELATING
TO THE PROVISION OF LAWFUL GOODS AND
SERVICES.
Section 523(a) of title 11, United States Code, is
amended—
(1) in paragraph (17), by striking ‘‘or’’ at the
end;
(2) in paragraph (18), as added by section 224
of this Act, by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; or’’;
(3) by adding at the end of the flush material
immediately following that paragraph (18), as added
by section 224 of this Act, the following: ‘‘Nothing in
paragraph (19) shall be construed to affect any ex-
pressive conduct (including peaceful picketing or
other peaceful demonstration) protected from legal
prohibition by the first amendment to the Constitu-
tion of the United States.’’; and
(4) by inserting before the flush material fol-
lowing that paragraph (18), the following:
‘‘(19) that results from any judgment, order, con-
sent order, or decree entered in any Federal or State
court, or contained in any settlement agreement en-
tered into by the debtor, including any court-ordered
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damages, fine, penalty, citation, or attorney fee or
cost owed by the debtor, arising from—
‘‘(A) an action alleging the violation of any
Federal, State, or local statutory law, including
but not limited to violations of sections 247 and
248 of title 18, that results from the debtor’s—
‘‘(i) harassment of, intimidation of, in-
terference with, obstruction of, injury to,
threat to, or violence against, any person—
‘‘(I) because that person provides
or has provided lawful goods or serv-
ices;
‘‘(II) because that person is or has
been obtaining lawful goods or services;
or
‘‘(III) to deter that person, any
other person, or a class of persons from
obtaining or providing lawful goods or
services; or
‘‘(ii) damage or destruction of property
of a facility providing lawful goods or serv-
ices; or
‘‘(B) a violation of a court order or injunc-
tion that protects access to a facility that pro-
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vides lawful goods or services or the provision of
lawful goods or services.’’.
SEC. 329. CLARIFICATION OF POSTPETITION WAGES AND
BENEFITS.
Section 503(b)(1)(A) of title 11, United States Code,
is amended to read as follows:
‘‘(A) the actual, necessary costs and expenses of
preserving the estate, including wages, salaries, or
commissions for services rendered after the commence-
ment of the case, and wages and benefits awarded
pursuant to an action brought in a court of law or
the National Labor Relations Board as back pay at-
tributable to any period of time after commencement
of the case as a result of the debtor’s violation of Fed-
eral or State law, without regard to when the original
unlawful act occurred or to whether any services were
rendered if the court determines that the award will
not substantially increase the probability of layoff or
termination of current employees or of nonpayment of
domestic support obligations during the case;’’.
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TITLE IV—GENERAL AND SMALL
BUSINESS BANKRUPTCY PRO-
VISIONS
Subtitle A—General Business
Bankruptcy Provisions
SEC. 401. ADEQUATE PROTECTION FOR INVESTORS.
(a) DEFINITION.—Section 101 of title 11, United
States Code, as amended by this Act, is amended by insert-
ing after paragraph (48) the following:
‘‘(48A) ‘securities self regulatory organization’
means either a securities association registered with
the Securities and Exchange Commission under sec-
tion 15A of the Securities Exchange Act of 1934 (15
U.S.C. 78o–3) or a national securities exchange reg-
istered with the Securities and Exchange Commission
under section 6 of the Securities Exchange Act of
1934 (15 U.S.C. 78f);’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, is amended by inserting after para-
graph (24), as added by this Act, the following:
‘‘(25) under subsection (a), of—
‘‘(A) the commencement or continuation of
an investigation or action by a securities self
regulatory organization to enforce such organiza-
tion’s regulatory power;
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‘‘(B) the enforcement of an order or deci-
sion, other than for monetary sanctions, obtained
in an action by the securities self regulatory or-
ganization to enforce such organization’s regu-
latory power; or
‘‘(C) any act taken by the securities self reg-
ulatory organization to delist, delete, or refuse to
permit quotation of any stock that does not meet
applicable regulatory requirements;’’.
SEC. 402. MEETINGS OF CREDITORS AND EQUITY SECURITY
HOLDERS.
Section 341 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(e) Notwithstanding subsections (a) and (b), the
court, on the request of a party in interest and after notice
and a hearing, for cause may order that the United States
trustee not convene a meeting of creditors or equity security
holders if the debtor has filed a plan as to which the debtor
solicited acceptances prior to the commencement of the
case.’’.
SEC. 403. PROTECTION OF REFINANCE OF SECURITY INTER-
EST.
Subparagraphs (A), (B), and (C) of section 547(e)(2)
of title 11, United States Code, are each amended by strik-
ing ‘‘10’’ each place it appears and inserting ‘‘30’’.
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SEC. 
404. 
EXECUTORY 
CONTRACTS 
AND 
UNEXPIRED
LEASES.
(a) IN GENERAL.—Section 365(d)(4) of title 11,
United States Code, is amended to read as follows:
‘‘(4)(A) Subject to subparagraph (B), in any case
under any chapter of this title, an unexpired lease of non-
residential real property under which the debtor is the lessee
shall be deemed rejected, and the trustee shall immediately
surrender that nonresidential real property to the lessor, if
the trustee does not assume or reject the unexpired lease by
the earlier of—
‘‘(i) the date that is 120 days after the date of
the order for relief; or
‘‘(ii) the date of the entry of an order confirming
a plan.
‘‘(B)(i) The court may extend the period determined
under subparagraph (A), prior to the expiration of the 120-
day period, for 90 days upon motion of the trustee or lessor
for cause.
‘‘(ii) If the court grants an extension under clause (i),
the court may grant a subsequent extension only upon prior
written consent of the lessor in each instance.’’.
(b) EXCEPTION.—Section 365(f)(1) of title 11, United
States Code, is amended by striking ‘‘subsection’’ the first
place it appears and inserting ‘‘subsections (b) and’’.
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SEC. 405. CREDITORS AND EQUITY SECURITY HOLDERS
COMMITTEES.
(a) APPOINTMENT.—Section 1102(a) of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(4) On request of a party in interest and after notice
and a hearing, the court may order the United States trust-
ee to change the membership of a committee appointed
under this subsection, if the court determines that the
change is necessary to ensure adequate representation of
creditors or equity security holders. The court may order
the United States trustee to increase the number of members
of a committee to include a creditor that is a small business
concern (as described in section 3(a)(1) of the Small Busi-
ness Act (15 U.S.C. 632(a)(1))), if the court determines that
the creditor holds claims (of the kind represented by the
committee) the aggregate amount of which, in comparison
to the annual gross revenue of that creditor, is dispropor-
tionately large.’’.
(b) INFORMATION.—Section 1102(b) of title 11, United
States Code, is amended by adding at the end the following:
‘‘(3) A committee appointed under subsection (a)
shall—
‘‘(A) provide access to information for creditors
who—
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‘‘(i) hold claims of the kind represented by
that committee; and
‘‘(ii) are not appointed to the committee;
‘‘(B) solicit and receive comments from the credi-
tors described in subparagraph (A); and
‘‘(C) be subject to a court order that compels any
additional report or disclosure to be made to the
creditors described in subparagraph (A).’’.
SEC. 406. AMENDMENT TO SECTION 546 OF TITLE 11,
UNITED STATES CODE.
Section 546 of title 11, United States Code, is
amended—
(1) by redesignating the second subsection des-
ignated as subsection (g) (as added by section 222(a)
of Public Law 103–394) as subsection (i);
(2) in subsection (i), as so redesignated, by in-
serting ‘‘and subject to the prior rights of holders of
security interests in such goods or the proceeds there-
of,’’ after ‘‘consent of a creditor,’’; and
(3) by adding at the end the following:
‘‘(j)(1) Notwithstanding paragraphs (2) and (3) of sec-
tion 545, the trustee may not avoid a warehouseman’s lien
for storage, transportation, or other costs incidental to the
storage and handling of goods.
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‘‘(2) The prohibition under paragraph (1) shall be ap-
plied in a manner consistent with any applicable State
statute that is similar to section 7–209 of the Uniform Com-
mercial Code, as in effect on the date of enactment of the
Bankruptcy Reform Act of 2001, or any successor thereto.’’.
SEC. 407. AMENDMENTS TO SECTION 330(a) OF TITLE 11,
UNITED STATES CODE.
Section 330(a) of title 11, United States Code, is
amended—
(1) in paragraph (3)—
(A) by striking ‘‘(A) In’’ and inserting
‘‘In’’; and
(B) by inserting ‘‘to an examiner, trustee
under chapter 11, or professional person’’ after
‘‘awarded’’; and
(2) by adding at the end the following:
‘‘(7) In determining the amount of reasonable
compensation to be awarded to a trustee, the court
shall treat such compensation as a commission, based
on section 326 of this title.’’.
SEC. 408. POSTPETITION DISCLOSURE AND SOLICITATION.
Section 1125 of title 11, United States Code, is amend-
ed by adding at the end the following:
‘‘(g) Notwithstanding subsection (b), an acceptance or
rejection of the plan may be solicited from a holder of a
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claim or interest if such solicitation complies with applica-
ble nonbankruptcy law and if such holder was solicited be-
fore the commencement of the case in a manner complying
with applicable nonbankruptcy law.’’.
SEC. 409. PREFERENCES.
Section 547(c) of title 11, United States Code, is
amended—
(1) by striking paragraph (2) and inserting the
following:
‘‘(2) to the extent that such transfer was in pay-
ment of a debt incurred by the debtor in the ordinary
course of business or financial affairs of the debtor
and the transferee, and such transfer was—
‘‘(A) made in the ordinary course of busi-
ness or financial affairs of the debtor and the
transferee; or
‘‘(B) made according to ordinary business
terms;’’;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(9) if, in a case filed by a debtor whose debts
are not primarily consumer debts, the aggregate value
of all property that constitutes or is affected by such
transfer is less than $5,000.’’.
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SEC. 410. VENUE OF CERTAIN PROCEEDINGS.
Section 1409(b) of title 28, United States Code, is
amended by inserting ‘‘, or a nonconsumer debt against a
noninsider of less than $10,000,’’ after ‘‘$5,000’’.
SEC. 411. PERIOD FOR FILING PLAN UNDER CHAPTER 11.
Section 1121(d) of title 11, United States Code, is
amended—
(1) by striking ‘‘On’’ and inserting ‘‘(1) Subject
to paragraph (2), on’’; and
(2) by adding at the end the following:
‘‘(2)(A) The 120-day period specified in paragraph (1)
may not be extended beyond a date that is 18 months after
the date of the order for relief under this chapter.
‘‘(B) The 180-day period specified in paragraph (1)
may not be extended beyond a date that is 20 months after
the date of the order for relief under this chapter.’’.
SEC. 412. FEES ARISING FROM CERTAIN OWNERSHIP INTER-
ESTS.
Section 523(a)(16) of title 11, United States Code, is
amended—
(1) by striking ‘‘dwelling’’ the first place it ap-
pears;
(2) by striking ‘‘ownership or’’ and inserting
‘‘ownership,’’;
(3) by striking ‘‘housing’’ the first place it ap-
pears; and
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(4) by striking ‘‘but only’’ and all that follows
through ‘‘such period’’ and inserting ‘‘or a lot in a
homeowners association, for as long as the debtor or
the trustee has a legal, equitable, or possessory owner-
ship interest in such unit, such corporation, or such
lot,’’.
SEC. 413. CREDITOR REPRESENTATION AT FIRST MEETING
OF CREDITORS.
Section 341(c) of title 11, United States Code, is
amended by inserting at the end the following: ‘‘Notwith-
standing any local court rule, provision of a State constitu-
tion, any other Federal or State law that is not a bank-
ruptcy law, or other requirement that representation at the
meeting of creditors under subsection (a) be by an attorney,
a creditor holding a consumer debt or any representative
of the creditor (which may include an entity or an employee
of an entity and may be a representative for more than
1 creditor) shall be permitted to appear at and participate
in the meeting of creditors in a case under chapter 7 or
13, either alone or in conjunction with an attorney for the
creditor. Nothing in this subsection shall be construed to
require any creditor to be represented by an attorney at
any meeting of creditors.’’.
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SEC. 414. DEFINITION OF DISINTERESTED PERSON.
Section 101(14) of title 11, United States Code, is
amended to read as follows:
‘‘(14) ‘disinterested person’ means a person
that—
‘‘(A) is not a creditor, an equity security
holder, or an insider;
‘‘(B) is not and was not, within 2 years be-
fore the date of the filing of the petition, a direc-
tor, officer, or employee of the debtor; and
‘‘(C) does not have an interest materially
adverse to the interest of the estate or of any
class of creditors or equity security holders, by
reason of any direct or indirect relationship to,
connection with, or interest in, the debtor, or for
any other reason;’’.
SEC. 415. FACTORS FOR COMPENSATION OF PROFESSIONAL
PERSONS.
Section 330(a)(3) of title 11, United States Code, as
amended by this Act, is amended—
(1) in subparagraph (D), by striking ‘‘and’’ at
the end;
(2) by redesignating subparagraph (E) as sub-
paragraph (F); and
(3) by inserting after subparagraph (D) the fol-
lowing:
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‘‘(E) with respect to a professional person,
whether the person is board certified or otherwise
has demonstrated skill and experience in the
bankruptcy field; and’’.
SEC. 416. APPOINTMENT OF ELECTED TRUSTEE.
Section 1104(b) of title 11, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following:
‘‘(2)(A) If an eligible, disinterested trustee is elected
at a meeting of creditors under paragraph (1), the United
States trustee shall file a report certifying that election.
‘‘(B) Upon the filing of a report under subparagraph
(A)—
‘‘(i) the trustee elected under paragraph (1) shall
be considered to have been selected and appointed for
purposes of this section; and
‘‘(ii) the service of any trustee appointed under
subsection (d) shall terminate.
‘‘(C) In the case of any dispute arising out of an elec-
tion described in subparagraph (A), the court shall resolve
the dispute.’’.
SEC. 417. UTILITY SERVICE.
Section 366 of title 11, United States Code, is
amended—
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(1) in subsection (a), by striking ‘‘subsection (b)’’
and inserting ‘‘subsections (b) and (c)’’; and
(2) by adding at the end the following:
‘‘(c)(1)(A) For purposes of this subsection, the term
‘assurance of payment’ means—
‘‘(i) a cash deposit;
‘‘(ii) a letter of credit;
‘‘(iii) a certificate of deposit;
‘‘(iv) a surety bond;
‘‘(v) a prepayment of utility consumption; or
‘‘(vi) another form of security that is mutually
agreed on between the utility and the debtor or the
trustee.
‘‘(B) For purposes of this subsection an administrative
expense priority shall not constitute an assurance of pay-
ment.
‘‘(2) Subject to paragraphs (3) and (4), with respect
to a case filed under chapter 11, a utility referred to in
subsection (a) may alter, refuse, or discontinue utility serv-
ice, if during the 30-day period beginning on the date of
filing of the petition, the utility does not receive from the
debtor or the trustee adequate assurance of payment for
utility service that is satisfactory to the utility.
‘‘(3)(A) On request of a party in interest and after
notice and a hearing, the court may order modification of
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the amount of an assurance of payment under paragraph
(2).
‘‘(B) In making a determination under this paragraph
whether an assurance of payment is adequate, the court
may not consider—
‘‘(i) the absence of security before the date of fil-
ing of the petition;
‘‘(ii) the payment by the debtor of charges for
utility service in a timely manner before the date of
filing of the petition; or
‘‘(iii) the availability of an administrative ex-
pense priority.
‘‘(4) Notwithstanding any other provision of law, with
respect to a case subject to this subsection, a utility may
recover or set off against a security deposit provided to the
utility by the debtor before the date of filing of the petition
without notice or order of the court.’’.
SEC. 418. BANKRUPTCY FEES.
Section 1930 of title 28, United States Code, is
amended—
(1) in subsection (a), by striking ‘‘Notwith-
standing section 1915 of this title, the’’ and inserting
‘‘The’’; and
(2) by adding at the end the following:
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‘‘(f)(1) Under the procedures prescribed by the Judicial
Conference of the United States, the district court or the
bankruptcy court may waive the filing fee in a case under
chapter 7 of title 11 for an individual if the court deter-
mines that such debtor has income less than 150 percent
of the income official poverty line (as defined by the Office
of Management and Budget, and revised annually in ac-
cordance with section 673(2) of the Omnibus Budget Rec-
onciliation Act of 1981) applicable to a family of the size
involved and is unable to pay that fee in installments. For
purposes of this paragraph, the term ‘‘filing fee’’ means the
filing required by subsection (a), or any other fee prescribed
by the Judicial Conference under subsections (b) and (c)
that is payable to the clerk upon the commencement of a
case under chapter 7.
‘‘(2) The district court or the bankruptcy court may
waive for such debtors other fees prescribed under sub-
sections (b) and (c).
‘‘(3) This subsection does not restrict the district court
or the bankruptcy court from waiving, in accordance with
Judicial Conference policy, fees prescribed under this sec-
tion for other debtors and creditors.’’.
SEC. 419. MORE COMPLETE INFORMATION REGARDING AS-
SETS OF THE ESTATE.
(a) IN GENERAL.—
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(1) DISCLOSURE.—The Advisory Committee on
Bankruptcy Rules of the Judicial Conference of the
United States, after consideration of the views of the
Director of the Executive Office for United States
Trustees, shall propose for adoption amended Federal
Rules of Bankruptcy Procedure and Official Bank-
ruptcy Forms directing debtors under chapter 11 of
title 11, United States Code, to disclose the informa-
tion described in paragraph (2) by filing and serving
periodic financial and other reports designed to pro-
vide such information.
(2) INFORMATION.—The information referred to
in paragraph (1) is the value, operations, and profit-
ability of any closely held corporation, partnership,
or of any other entity in which the debtor holds a sub-
stantial or controlling interest.
(b) PURPOSE.—The purpose of the rules and reports
under subsection (a) shall be to assist parties in interest
taking steps to ensure that the debtor’s interest in any enti-
ty referred to in subsection (a)(2) is used for the payment
of allowed claims against debtor.
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SEC. 420. DUTIES WITH RESPECT TO A DEBTOR WHO IS A
PLAN ADMINISTRATOR OF AN EMPLOYEE
BENEFIT PLAN.
(a) IN GENERAL.—Section 521(a) of title 11, United
States Code, as so designated by section 106(d) of this Act,
is amended-
(1) in paragraph (4), by striking ‘‘and’’ at the
end;
(2) in paragraph (5), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(6) unless a trustee is serving in the case, if at
the time of filing, the debtor, served as the adminis-
trator (as defined in section 3 of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1002))
of an employee benefit plan, continue to perform the
obligations required of the administrator.’’.
(b) DUTIES OF TRUSTEES.—Section 704(a) of title 11,
United States Code, as so designated and otherwise amend-
ed by this Act, is amended—
(1) in paragraph (10), by striking ‘‘and’’ at the
end;
(2) in paragraph (11), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
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‘‘(12) where, at the time of the time of the com-
mencement of the case, the debtor served as the ad-
ministrator (as defined in section 3 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1002)) of an employee benefit plan, continue to per-
form the obligations required of the administrator;’’.
(c) CONFORMING AMENDMENT.—Section 1106(a) of
title 11, United States Code, is amended by striking para-
graph (1) and inserting the following:
‘‘(1) perform the duties of the trustee, as speci-
fied in paragraphs (2), (5), (7), (8), (9), (10), (11),
and (12) of section 704;’’.
Subtitle B—Small Business
Bankruptcy Provisions
SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT
AND PLAN.
Section 1125 of title 11, United States Code, is
amended—
(1) in subsection (a)(1), by inserting before the
semicolon ‘‘and in determining whether a disclosure
statement provides adequate information, the court
shall consider the complexity of the case, the benefit
of additional information to creditors and other par-
ties in interest, and the cost of providing additional
information’’; and
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(2) by striking subsection (f), and inserting the
following:
‘‘(f) Notwithstanding subsection (b), in a small busi-
ness case—
‘‘(1) the court may determine that the plan itself
provides adequate information and that a separate
disclosure statement is not necessary;
‘‘(2) the court may approve a disclosure state-
ment submitted on standard forms approved by the
court or adopted under section 2075 of title 28; and
‘‘(3)(A) the court may conditionally approve a
disclosure statement subject to final approval after
notice and a hearing;
‘‘(B) acceptances and rejections of a plan may be
solicited based on a conditionally approved disclosure
statement if the debtor provides adequate information
to each holder of a claim or interest that is solicited,
but a conditionally approved disclosure statement
shall be mailed not later than 20 days before the date
of the hearing on confirmation of the plan; and
‘‘(C) the hearing on the disclosure statement may
be combined with the hearing on confirmation of a
plan.’’.
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SEC. 432. DEFINITIONS.
(a) DEFINITIONS.—Section 101 of title 11, United
States Code, as amended by this Act, is amended by striking
paragraph (51C) and inserting the following:
‘‘(51C) ‘small business case’ means a case filed
under chapter 11 of this title in which the debtor is
a small business debtor;
‘‘(51D) ‘small business debtor’—
‘‘(A) subject to subparagraph (B), means a
person engaged in commercial or business activi-
ties (including any affiliate of such person that
is also a debtor under this title and excluding a
person whose primary activity is the business of
owning or operating real property or activities
incidental thereto) that has aggregate noncontin-
gent, liquidated secured and unsecured debts as
of the date of the petition or the order for relief
in an amount not more than $3,000,000 (exclud-
ing debts owed to 1 or more affiliates or insiders)
for a case in which the United States trustee has
not appointed under section 1102(a)(1) a com-
mittee of unsecured creditors or where the court
has determined that the committee of unsecured
creditors is not sufficiently active and represent-
ative to provide effective oversight of the debtor;
and
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‘‘(B) does not include any member of a
group of affiliated debtors that has aggregate
noncontingent liquidated secured and unsecured
debts in an amount greater than $3,000,000 (ex-
cluding debt owed to 1 or more affiliates or in-
siders);’’.
(b) CONFORMING AMENDMENT.—Section 1102(a)(3) of
title 11, United States Code, is amended by inserting ‘‘debt-
or’’ after ‘‘small business’’.
SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND
PLAN.
Within a reasonable period of time after the date of
enactment of this Act, the Advisory Committee on Bank-
ruptcy Rules of the Judicial Conference of the United States
shall propose for adoption standard form disclosure state-
ments and plans of reorganization for small business debt-
ors (as defined in section 101 of title 11, United States
Code, as amended by this Act), designed to achieve a prac-
tical balance between—
(1) the reasonable needs of the courts, the United
States trustee, creditors, and other parties in interest
for reasonably complete information; and
(2) economy and simplicity for debtors.
SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.
(a) REPORTING REQUIRED.—
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(1) IN GENERAL.—Chapter 3 of title 11, United
States Code, is amended by inserting after section 307
the following:
‘‘§ 308. Debtor reporting requirements
‘‘(a) For purposes of this section, the term ‘profit-
ability’ means, with respect to a debtor, the amount of
money that the debtor has earned or lost during current
and recent fiscal periods.
‘‘(b) A small business debtor shall file periodic finan-
cial and other reports containing information including—
‘‘(1) the debtor’s profitability;
‘‘(2) reasonable approximations of the debtor’s
projected cash receipts and cash disbursements over a
reasonable period;
‘‘(3) comparisons of actual cash receipts and dis-
bursements with projections in prior reports;
‘‘(4)(A) whether the debtor is—
‘‘(i) in compliance in all material respects
with postpetition requirements imposed by this
title and the Federal Rules of Bankruptcy Proce-
dure; and
‘‘(ii) timely filing tax returns and other re-
quired government filings and paying taxes and
other administrative claims when due;
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(d) PAYMENT
OF TAXES
AND FEES
AS SECURED
CLAIMS.—Section 506 of title 11, United States Code, is
amended—
(1) in subsection (b), by inserting ‘‘or State stat-
ute’’ after ‘‘agreement’’; and
(2) in subsection (c), by inserting ‘‘, including
the payment of all ad valorem property taxes with re-
spect to the property’’ before the period at the end.
SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS.
Section 726(a)(1) of title 11, United States Code, is
amended by striking ‘‘before the date on which the trustee
commences distribution under this section;’’ and inserting
the following: ‘‘on or before the earlier of—
‘‘(A) the date that is 10 days after the mail-
ing to creditors of the summary of the trustee’s
final report; or
‘‘(B) the date on which the trustee com-
mences final distribution under this section;’’.
SEC. 714. INCOME TAX RETURNS PREPARED BY TAX AU-
THORITIES.
Section 523(a) of title 11, United States Code, as
amended by this Act, is amended—
(1) in paragraph (1)(B)—
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‘‘(1) the foreign representative has the capacity
to sue and be sued in a court in the United States;
‘‘(2) the foreign representative may apply di-
rectly to a court in the United States for appropriate
relief in that court; and
‘‘(3) a court in the United States shall grant
comity or cooperation to the foreign representative.
‘‘(c) A request for comity or cooperation by a foreign
representative in a court in the United States other than
the court which granted recognition shall be accompanied
by a certified copy of an order granting recognition under
section 1517.
‘‘(d) If the court denies recognition under this chapter,
the court may issue any appropriate order necessary to pre-
vent the foreign representative from obtaining comity or co-
operation from courts in the United States.
‘‘(e) Whether or not the court grants recognition, and
subject to sections 306 and 1510, a foreign representative
is subject to applicable nonbankruptcy law.
‘‘(f) Notwithstanding any other provision of this sec-
tion, the failure of a foreign representative to commence a
case or to obtain recognition under this chapter does not
affect any right the foreign representative may have to sue
in a court in the United States to collect or recover a claim
which is the property of the debtor.