I
105TH CONGRESS
1ST SESSION
H. R. 120
To make technical corrections to title 11, United States Code, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 7, 1997
Mr. CONYERS introduced the following bill; which was referred to the
Committee on the Judiciary
A BILL
To make technical corrections to title 11, 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.
This Act may be cited as the ‘‘Bankruptcy Law Tech-
nical Corrections Act of 1997’’.
SEC. 2. DEFINITIONS.
Section 101 of title 11, United States Code, is
amended—
(1) by striking ‘‘In this title—’’ and inserting
‘‘In this title:’’,
(2) in paragraph (51B) by inserting ‘‘family
farms or’’ after ‘‘other than’’,
(3) in paragraph (35)(B) by striking ‘‘para-
graphs (21B) and (33)(A)’’ and inserting ‘‘para-
graphs (23) and (35)’’,
(4) in each paragraph by inserting ‘‘The term’’
after the paragraph designation,
(5) in paragraphs (35A) and (38) by striking
‘‘; and’’ at the end and inserting a period,
(6) in paragraph (54) by inserting ‘‘, creation
of a lien,’’ after ‘‘security interest’’,
(7) in paragraphs (1) through (35), in para-
graphs (36) and (37), and in paragraphs (40)
through (55), by striking the semicolon at the end
and insert a period, and
(8) by redesignating paragraphs (4) through
(55) in numerical sequence.
SEC. 3. ADJUSTMENT OF DOLLAR AMOUNTS.
Section 104 of title 11, United States Code, is
amended by inserting ‘‘522(f)(3),’’ after ‘‘522(d),’’ each
place it appears.
SEC. 4. EXTENSION OF TIME.
Section 108(c)(2) of title 11, United States Code, is
amended by striking ‘‘922’’ and all that follows through
‘‘or’’, and inserting ‘‘922, 1201, or’’.
SEC. 5. PENALTY FOR PERSONS WHO NEGLIGENTLY OR
FRAUDULENTLY 
PREPARE 
BANKRUPTCY
PETITIONS.
Section 110(j)(3) of title 11, United States Code, is
amended 
by 
striking 
‘‘attorney’s’’ 
and 
inserting
‘‘attorneys’ ’’.
SEC. 6. ELIGIBILITY TO SERVE AS TRUSTEE.
Paragraphs (1) and (2) of section 321(a) of title 11,
United States Code, are amended by striking ‘‘7, 12,’’ and
inserting ‘‘12’’.
SEC. 7. EMPLOYMENT OF PROFESSIONAL PERSONS.
(a) AUTHORITY OF TRUSTEE.—Section 327 of title
11, United States Code, is amended—
(1) in subsection (b) by striking ‘‘section 721,,’’
and inserting ‘‘721,’’,
(2) in subsection (c) by striking ‘‘chapter 7’’
and all that follows through ‘‘or’’ the first place it
appears, and inserting ‘‘chapter 7, 12, or’’, and
(3) in subsection (d) by striking ‘‘act as attor-
ney or accountant’’ and inserting ‘‘render profes-
sional services of the kind described in subsection
(a)’’.
(b) LIMITATION ON COMPENSATION.—Section 328(b)
of title 11, United States Code, is amended—
(1) by striking ‘‘serve as an attorney or ac-
countant’’ and inserting ‘‘render professional serv-
ices’’,
(2) by striking ‘‘such attorney or accountant’’
and inserting ‘‘a professional person who renders
such services’’,
(3) by striking ‘‘attorney or accountant’’ and
inserting ‘‘such professional person’’, and
(4) by striking ‘‘an attorney or accountant’’ and
inserting ‘‘such a professional person’’.
SEC. 6. LIMITATION ON COMPENSATION OF PROFESSIONAL
PERSONS.
Section 328(a) of title 11, United States Code, is
amended in subsection (a) by inserting ‘‘on a fixed or per-
centage fee basis,’’ after ‘‘hourly basis,’’.
SEC. 7. COMPENSATION TO OFFICERS.
Section 330(a) of title 11, United States Code, is
amended—
(1) in paragraph (1) by inserting ‘‘, or the
debtor’s attorney’’ after ‘‘1103’’, and
(2) in paragraph (3) by striking ‘‘(3)(A) In’’
and inserting ‘‘(3) In’’.
SEC. 8. SPECIAL TAX PROVISIONS.
Section 346(g)(1)(C) of title 11, United States Code,
is amended by striking ‘‘, except’’ and all that follows
through ‘‘1986’’.
SEC. 9. EFFECT OF CONVERSION.
Section 348(f)(2) of title 11, United States Code, is
amended by inserting ‘‘of the estate’’ after ‘‘property’’ the
first place it appears.
SEC. 10. AUTOMATIC STAY.
Section 362 of title 11, United States Code, is
amended—
(1) in subsection (b)(3) by inserting ‘‘or is
taken with respect to a security interest that is cre-
ated by a transfer to which section 547(c)(3) of this
title applies’’ before the semicolon at the end, and
(2) in subsection (h) by striking ‘‘individual’’
and inserting ‘‘entity’’.
SEC. 11. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.
Section 365 of title 11, United States Code, is
amended—
(1) in subsection (b)(2)—
(A) in subparagraph (C) by striking ‘‘or’’
at the end, and
(B) by striking subparagraph (D) and in-
serting the following:
‘‘(D) the satisfaction of any penalty rate in any
executory contract or unexpired lease; or
‘‘(E) the satisfaction of any provision relating
to a default arising from any failure by the debtor
to perform nonmonetary obligations under any exec-
utory contract or unexpired lease other than an
unexpired lease of personal property.’’,
(2) in subsection (c)—
(A) in paragraph (2) by adding ‘‘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) by striking paragraphs (5)
through (9), and
(4) in subsection (f)(1) by striking ‘‘; except
that’’ and all that follows through the end of the
paragraph and inserting a period.
SEC. 12. AMENDMENT TO TABLE OF SECTIONS.
The table of sections for chapter 5 by amending the
item relating to section 556 to read as follows:
‘‘556. Contractual right to liquidate a commodities contract or forward con-
tract.’’.
SEC. 13. ALLOWANCE OF ADMINISTRATIVE EXPENSES.
Section 503(b)(4) of title 11, United States Code, is
amended by inserting ‘‘subparagraph (A), (B), (C), (D),
or (E) of’’ before ‘‘paragraph (3)’’.
SEC. 14. PRIORITIES.
Section 507(a) of title 11, United States Code, is
amended—
(1) in paragraph (3)(B) by striking the semi-
colon at the end and inserting a period, and
(2) in paragraph (7) by inserting ‘‘unsecured’’
after ‘‘allowed’’.
SEC. 15. EXEMPTIONS.
Section 522 of title 11, United States Code, is
amended—
(1) in subsection (f)(1)(A)(ii)(II)—
(A) by striking ‘‘includes a liability des-
ignated as’’ and inserting ‘‘is for a liability that
is designated as, and is actually in the nature
of,’’, and
(B) by striking ‘‘support.’’ and inserting
‘‘support’’, and
(2) in subsection (g)(2) by striking ‘‘subsection
(f)(2)’’ and inserting ‘‘subsection (f)(1)(B)’’.
SEC. 16. EXCEPTIONS TO DISCHARGE.
Section 523 of title 11, United States Code, is
amended—
(1) in subsection (a)(3) by striking ‘‘or (6)’’
each place it appears and inserting ‘‘(6), or (15)’’,
(2) as amended by section 304(e) of Public Law
103–394 (108 Stat. 4133), in paragraph (15)—
(A) by inserting ‘‘or’’ after the semicolon
at the end, and
(B) by transferring such paragraph so as
to insert it after paragraph (14) of subsection
(a),
(3) in subsection (a)(15), as so redesignated by
paragraph (2), by inserting ‘‘to a spouse, former
spouse, or child of the debtor and’’ after ‘‘(15)’’,
(4) in subsection (a)(17)—
(A) by striking ‘‘by a court’’ and inserting
‘‘on a prisoner by a Federal court’’, and
(B) by striking ‘‘section 1915 (b) or (f)’’
and inserting ‘‘subsection (b) or (f)(2) of sec-
tion 1915’’, and
(5) in subsection (e) by striking ‘‘a insured’’
and inserting ‘‘an insured’’.
SEC. 17. EFFECT OF DISCHARGE.
Section 524(a)(3) of title 11, United States Code, is
amended by striking ‘‘section 523’’ and all that follows
through 
‘‘or 
that’’, 
and 
inserting 
‘‘section 
523,
1228(a)(1), or 1328(a)(1) of this title, or that’’.
SEC. 18. PROTECTION AGAINST DISCRIMINATORY TREAT-
MENT.
Section 525(c) of title 11, United States Code, is
amended—
(1) in paragraph (1) by inserting ‘‘student’’ be-
fore ‘‘grant’’ the second place it appears, and
(2) in paragraph (2) by striking ‘‘the program
operated under part B, D, or E of’’ and inserting
‘‘any program operated under’’.
SEC. 19. PROPERTY OF THE ESTATE.
Section 541(b)(4)(B)(ii) of title 11, United States
Code (as added by section 208(b) of the Bankruptcy Re-
form Act of 1994), is amended by inserting ‘‘365 or’’ be-
fore ‘‘542’’.
SEC. 20. LIMITATIONS ON AVOIDING POWERS.
Section 546 of title 11, United States Code, is
amended by redesignating the second subsection (g) as
subsection (h).
SEC. 21. LIABILITY OF TRANSFEREE OF AVOIDED TRANS-
FER.
(a) IN GENERAL.—Section 550(c) of title 11, United
States Code, is amended—
(1) in paragraph (1) by striking ‘‘avoided under
section 547(b)’’ and inserting ‘‘avoidable under sec-
tion 547’’, and
(2) in the matter following paragraph (2), by
striking ‘‘recover under subsection (a) from a trans-
feree that is not an insider’’ and inserting ‘‘avoid
under section 547 such transfer, to the extent that
such transfer was made for the benefit of a trans-
feree that was not an insider at the time of such
transfer, or recover under subsection (a) from a
transferee that was not an insider at the time of
such transfer’’.
(b) CONFORMING AMENDMENT.—Section 547(b) of
title 11, United States Code, is amended by inserting ‘‘or
in section 550(c) of this title’’ after ‘‘subsection (c) of this
section’’.
SEC. 22. SETOFF.
Section 553(b)(1) of title 11, United States Code, is
amended 
by 
striking 
‘‘362(b)(14)’’ 
and 
inserting
‘‘362(b)(17)’’.
SEC. 23. DISPOSITION OF PROPERTY OF THE ESTATE.
Section 726(b) of title 11, United States Code, is
amended by striking ‘‘1009,’’.
SEC. 24. GENERAL PROVISIONS.
Section 901(a) of title 11, United States Code, is
amended by inserting ‘‘1123(d),’’ after ‘‘1123(b),’’.
SEC. 28. PAYMENTS.
Section 1226(b)(2) of title 11, United States Code,
is amended—
(1) by striking ‘‘1202(c) of this title’’ and in-
serting ‘‘586(b) of title 28’’, and
(2) by striking ‘‘1202(d) of this title’’ and in-
serting ‘‘586(e)(1)(B) of title 28’’.
SEC. 29. DISCHARGE.
Subsections (a) and (c) of section 1228 of title 11,
United 
States 
Code, 
are 
amended 
by 
striking
‘‘1222(b)(10)’’ each place it appears and inserting
‘‘1222(b)(9)’’.
SEC. 30. CONTENTS OF PLAN.
Section 1322 of title 11, United States Code, is
amended—
(1) in subsection (b) by striking ‘‘(c)’’ and in-
serting ‘‘(d)’’, and
(2) in subsection (e) by striking the comma
after ‘‘default’’ the second place it appears.
SEC. 31. DISCHARGE.
Section 1328(a) of title 11, United States Code, is
amended by striking all after ‘‘except any debt—’’ and in-
serting the following:
‘‘(1) provided for under section 1322(b)(5) of
this title;
‘‘(2) of the kind specified in paragraph (5), (8),
or (9) of section 523(a) of this title; or
‘‘(3) for restitution, or a criminal fine, included
in a sentence on the debtor’s conviction of a crime.’’.
SEC. 32. BANKRUPTCY CASES AND PROCEEDINGS.
Section 1334(d) of title 28, United States Code, is
amended—
(1) by striking ‘‘made under this subsection’’
and inserting ‘‘made under subsection (c)’’, and
(2) by striking ‘‘This subsection’’ and inserting
‘‘Subsection (c) and this subsection’’.
SEC. 33. BANKRUPTCY REVIEW COMMISSION.
Section 604 of the Bankruptcy Reform Act of 1994
(108 Stat. 4147) is amended—
(1) by striking subsection (g), and
(2) by redesignating subsection (h) as sub-
section (g).
SEC. 34. KNOWING DISREGARD OF BANKRUPTCY LAW OR
RULE.
Section 156(a) of title 18, United States Code, is
amended—
(1) in the first undesignated paragraph—
(A) by inserting ‘‘(1) the term’’ before
‘‘ ‘bankruptcy’’, and
(B) by striking the period at the end and
inserting ‘‘; and’’, and
(2) in the second undesignated paragraph—
(A) by inserting ‘‘(2) the term’’ before
‘‘ ‘document’’, and
(B) by striking ‘‘this title’’ and inserting
‘‘title 11’’.
SEC. 35. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this Act and the amendments made by this
Act shall take effect on the date of the enactment of this
Act.
(b) APPLICATION OF AMENDMENTS.—The amend-
ments made by this Act shall apply only with respect to
cases commenced under title 11 of the United States Code
on or after the date of the enactment of this Act.
Æ