IB 
Union Calendar No. 27
108TH CONGRESS 
1ST SESSION 
H. R. 975
[Report No. 108–40, Part I] 
To amend title 11 of the United States Code, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 27, 2003
Mr. SENSENBRENNER (for himself, Mr. BOUCHER, Mr. CANNON, Mr. AN-
DREWS, Mr. BACHUS, Mr. CASTLE, Mr. CHABOT, Mr. COBLE, Mr. 
CRAMER, Mr. CROWLEY, Mr. DOOLEY of California, Mr. DREIER, Mr. 
ENGLISH, Mr. FEENEY, Mr. FLAKE, Mr. FOLEY, Mr. GOODLATTE, Ms. 
HART, Mr. ISSA, Mr. KELLER, Mr. KENNEDY of Minnesota, Mr. KING 
of Iowa, Mr. LUCAS of Kentucky, Mr. MENENDEZ, Mrs. MYRICK, Mr. 
NEY, Mr. OXLEY, Mr. PENCE, Mr. PITTS, Ms. PRYCE of Ohio, Mr. 
ROTHMAN, Mr. ROYCE, Mr. RYUN of Kansas, Mr. SESSIONS, Mr. SMITH 
of Washington, Mr. SMITH of Michigan, Mr. TAUZIN, Mr. TERRY, Mr. 
TIBERI, Mr. TOOMEY, Mr. FROST, Mrs. BIGGERT, Mr. REYNOLDS, Mrs. 
NORTHUP, Mr. LATOURETTE, Mrs. TAUSCHER, Ms. EDDIE BERNICE 
JOHNSON of Texas, Mr. GIBBONS, Mr. BLUNT, Mr. SIMPSON, and Mr. 
KINGSTON) introduced the following bill; which was referred to the Com-
mittee on the Judiciary, and in addition to the Committee on Financial 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
MARCH 18, 2003
Additional sponsors: Mr. SIMMONS, Mr. JENKINS, Mr. PLATTS, Mr. 
NETHERCUTT, Mr. BAKER, Mr. SCHROCK, Mr. RAMSTAD, Mr. SMITH of 
Texas, Mr. COLE, Mr. OTTER, Mr. ROGERS of Michigan, Mr. BROWN of 
South Carolina, Mr. WELLER, Ms. GINNY BROWN-WAITE of Florida, Mr. 
BOEHNER, Mr. HOSTETTLER, Mr. GOODE, Mr. BURTON of Indiana, Mr. 
WAMP, Mr. SOUDER, Mr. REHBERG, Mr. SWEENEY, Mr. UPTON, Mr. 
JANKLOW, Mr. LEWIS of Kentucky, Mr. CANTOR, Mr. HOEKSTRA, Mr. 
FLETCHER, Mr. BONILLA, Mr. BUYER, Mr. AKIN, Mr. BEAUPREZ, Mr. 
DAVIS of Florida, Mr. GARY G. MILLER of California, Mr. DEMINT, Mr. 
LINDER, Ms. HOOLEY of Oregon, Mr. KOLBE, and Mr. BEREUTER
MARCH 18, 2003
Reported from the Committee on the Judiciary with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
MARCH 18, 2003
Referral to the Committee on Financial Services extended for a period ending 
not later than March 18, 2003
MARCH 18, 2003
Committee on Financial Services discharged; committed to the Committee of 
the Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on February 27, 2003] 
A BILL 
To amend title 11 of the United States Code, and for other 
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CON-
TENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Bankruptcy Abuse Prevention and Consumer Protection 
Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; references; table of contents. 
TITLE I—NEEDS-BASED BANKRUPTCY 
Sec. 101. Conversion. 
Sec. 102. Dismissal or conversion. 
Sec. 103. Sense of Congress and study. 
Sec. 104. Notice of alternatives. 
Sec. 105. Debtor financial management training test program. 
Sec. 106. Credit counseling. 
Sec. 107. Schedules of reasonable and necessary expenses.
TITLE II—ENHANCED CONSUMER PROTECTION 
Subtitle A—Penalties for Abusive Creditor Practices 
Sec. 201. Promotion of alternative dispute resolution. 
Sec. 202. Effect of discharge. 
Sec. 203. Discouraging abuse of reaffirmation agreement practices. 
Sec. 204. Preservation of claims and defenses upon sale of predatory loans. 
Sec. 205. GAO study and report on reaffirmation agreement process. 
Subtitle B—Priority Child Support 
Sec. 211. Definition of domestic support obligation. 
Sec. 212. Priorities for claims for domestic support obligations. 
Sec. 213. Requirements to obtain confirmation and discharge in cases involving 
domestic support obligations. 
Sec. 214. Exceptions to automatic stay in domestic support obligation pro-
ceedings. 
Sec. 215. Nondischargeability of certain debts for alimony, maintenance, and 
support. 
Sec. 216. Continued liability of property. 
Sec. 217. Protection of domestic support claims against preferential transfer mo-
tions. 
Sec. 218. Disposable income defined. 
Sec. 219. Collection of child support. 
Sec. 220. Nondischargeability of certain educational benefits and loans. 
Subtitle C—Other Consumer Protections 
Sec. 221. Amendments to discourage abusive bankruptcy filings. 
Sec. 222. Sense of Congress. 
Sec. 223. Additional amendments to title 11, United States Code. 
Sec. 224. Protection of retirement savings in bankruptcy. 
Sec. 225. Protection of education savings in bankruptcy. 
Sec. 226. Definitions. 
Sec. 227. Restrictions on debt relief agencies. 
Sec. 228. Disclosures. 
Sec. 229. Requirements for debt relief agencies. 
Sec. 230. GAO study. 
Sec. 231. Protection of personally identifiable information. 
Sec. 232. Consumer privacy ombudsman. 
Sec. 233. Prohibition on disclosure of name of minor children. 
TITLE III—DISCOURAGING BANKRUPTCY ABUSE 
Sec. 301. Reinforcement of the fresh start. 
Sec. 302. Discouraging bad faith repeat filings. 
Sec. 303. Curbing abusive filings. 
Sec. 304. Debtor retention of personal property security. 
Sec. 305. Relief from the automatic stay when the debtor does not complete in-
tended surrender of consumer debt collateral. 
Sec. 306. Giving secured creditors fair treatment in chapter 13. 
Sec. 307. Domiciliary requirements for exemptions. 
Sec. 308. Reduction of homestead exemption for fraud. 
Sec. 309. Protecting secured creditors in chapter 13 cases. 
Sec. 310. Limitation on luxury goods. 
Sec. 311. Automatic stay.
Sec. 312. Extension of period between bankruptcy discharges. 
Sec. 313. Definition of household goods and antiques. 
Sec. 314. Debt incurred to pay nondischargeable debts. 
Sec. 315. Giving creditors fair notice in chapters 7 and 13 cases. 
Sec. 316. Dismissal for failure to timely file schedules or provide required infor-
mation. 
Sec. 317. Adequate time to prepare for hearing on confirmation of the plan. 
Sec. 318. Chapter 13 plans to have a 5-year duration in certain cases. 
Sec. 319. Sense of Congress regarding expansion of rule 9011 of the Federal Rules 
of Bankruptcy Procedure. 
Sec. 320. Prompt relief from stay in individual cases. 
Sec. 321. Chapter 11 cases filed by individuals. 
Sec. 322. Limitations on homestead exemption. 
Sec. 323. Excluding employee benefit plan participant contributions and other 
property from the estate. 
Sec. 324. Exclusive jurisdiction in matters involving bankruptcy professionals. 
Sec. 325. United States trustee program filing fee increase. 
Sec. 326. Sharing of compensation. 
Sec. 327. Fair valuation of collateral. 
Sec. 328. Defaults based on nonmonetary obligations. 
Sec. 329. Clarification of postpetition wages and benefits. 
Sec. 330. Delay of discharge during pendency of certain proceedings. 
TITLE IV—GENERAL AND SMALL BUSINESS BANKRUPTCY 
PROVISIONS 
Subtitle A—General Business Bankruptcy Provisions 
Sec. 401. Adequate protection for investors. 
Sec. 402. Meetings of creditors and equity security holders. 
Sec. 403. Protection of refinance of security interest. 
Sec. 404. Executory contracts and unexpired leases. 
Sec. 405. Creditors and equity security holders committees. 
Sec. 406. Amendment to section 546 of title 11, United States Code. 
Sec. 407. Amendments to section 330(a) of title 11, United States Code. 
Sec. 408. Postpetition disclosure and solicitation. 
Sec. 409. Preferences. 
Sec. 410. Venue of certain proceedings. 
Sec. 411. Period for filing plan under chapter 11. 
Sec. 412. Fees arising from certain ownership interests. 
Sec. 413. Creditor representation at first meeting of creditors. 
Sec. 414. Definition of disinterested person. 
Sec. 415. Factors for compensation of professional persons. 
Sec. 416. Appointment of elected trustee. 
Sec. 417. Utility service. 
Sec. 418. Bankruptcy fees. 
Sec. 419. More complete information regarding assets of the estate. 
Subtitle B—Small Business Bankruptcy Provisions 
Sec. 431. Flexible rules for disclosure statement and plan. 
Sec. 432. Definitions. 
Sec. 433. Standard form disclosure statement and plan. 
Sec. 434. Uniform national reporting requirements. 
Sec. 435. Uniform reporting rules and forms for small business cases. 
Sec. 436. Duties in small business cases.
Sec. 437. Plan filing and confirmation deadlines. 
Sec. 438. Plan confirmation deadline. 
Sec. 439. Duties of the United States trustee. 
Sec. 440. Scheduling conferences. 
Sec. 441. Serial filer provisions. 
Sec. 442. Expanded grounds for dismissal or conversion and appointment of 
trustee. 
Sec. 443. Study of operation of title 11, United States Code, with respect to small 
businesses. 
Sec. 444. Payment of interest. 
Sec. 445. Priority for administrative expenses. 
Sec. 446. Duties with respect to a debtor who is a plan administrator of an em-
ployee benefit plan. 
Sec. 447. Appointment of committee of retired employees. 
TITLE V—MUNICIPAL BANKRUPTCY PROVISIONS 
Sec. 501. Petition and proceedings related to petition. 
Sec. 502. Applicability of other sections to chapter 9. 
TITLE VI—BANKRUPTCY DATA 
Sec. 601. Improved bankruptcy statistics. 
Sec. 602. Uniform rules for the collection of bankruptcy data. 
Sec. 603. Audit procedures. 
Sec. 604. Sense of Congress regarding availability of bankruptcy data. 
TITLE VII—BANKRUPTCY TAX PROVISIONS 
Sec. 701. Treatment of certain liens. 
Sec. 702. Treatment of fuel tax claims. 
Sec. 703. Notice of request for a determination of taxes. 
Sec. 704. Rate of interest on tax claims. 
Sec. 705. Priority of tax claims. 
Sec. 706. Priority property taxes incurred. 
Sec. 707. No discharge of fraudulent taxes in chapter 13. 
Sec. 708. No discharge of fraudulent taxes in chapter 11. 
Sec. 709. Stay of tax proceedings limited to prepetition taxes. 
Sec. 710. Periodic payment of taxes in chapter 11 cases. 
Sec. 711. Avoidance of statutory tax liens prohibited. 
Sec. 712. Payment of taxes in the conduct of business. 
Sec. 713. Tardily filed priority tax claims. 
Sec. 714. Income tax returns prepared by tax authorities. 
Sec. 715. Discharge of the estate’s liability for unpaid taxes. 
Sec. 716. Requirement to file tax returns to confirm chapter 13 plans. 
Sec. 717. Standards for tax disclosure. 
Sec. 718. Setoff of tax refunds. 
Sec. 719. Special provisions related to the treatment of State and local taxes. 
Sec. 720. Dismissal for failure to timely file tax returns. 
TITLE VIII—ANCILLARY AND OTHER CROSS-BORDER CASES 
Sec. 801. Amendment to add chapter 15 to title 11, United States Code. 
Sec. 802. Other amendments to titles 11 and 28, United States Code.
TITLE IX—FINANCIAL CONTRACT PROVISIONS 
Sec. 901. Treatment of certain agreements by conservators or receivers of insured 
depository institutions. 
Sec. 902. Authority of the corporation with respect to failed and failing institu-
tions. 
Sec. 903. Amendments relating to transfers of qualified financial contracts. 
Sec. 904. Amendments relating to disaffirmance or repudiation of qualified fi-
nancial contracts. 
Sec. 905. Clarifying amendment relating to master agreements. 
Sec. 906. Federal Deposit Insurance Corporation Improvement Act of 1991. 
Sec. 907. Bankruptcy law amendments. 
Sec. 908. Recordkeeping requirements. 
Sec. 909. Exemptions from contemporaneous execution requirement. 
Sec. 910. Damage measure. 
Sec. 911. SIPC stay. 
TITLE X—PROTECTION OF FAMILY FARMERS AND FAMILY 
FISHERMEN 
Sec. 1001. Permanent reenactment of chapter 12. 
Sec. 1002. Debt limit increase. 
Sec. 1003. Certain claims owed to governmental units. 
Sec. 1004. Definition of family farmer. 
Sec. 1005. Elimination of requirement that family farmer and spouse receive over 
50 percent of income from farming operation in year prior to 
bankruptcy. 
Sec. 1006. Prohibition of retroactive assessment of disposable income. 
Sec. 1007. Family fishermen. 
TITLE XI—HEALTH CARE AND EMPLOYEE BENEFITS 
Sec. 1101. Definitions. 
Sec. 1102. Disposal of patient records. 
Sec. 1103. Administrative expense claim for costs of closing a health care business 
and other administrative expenses. 
Sec. 1104. Appointment of ombudsman to act as patient advocate. 
Sec. 1105. Debtor in possession; duty of trustee to transfer patients. 
Sec. 1106. Exclusion from program participation not subject to automatic stay. 
TITLE XII—TECHNICAL AMENDMENTS 
Sec. 1201. Definitions. 
Sec. 1202. Adjustment of dollar amounts. 
Sec. 1203. Extension of time. 
Sec. 1204. Technical amendments. 
Sec. 1205. Penalty for persons who negligently or fraudulently prepare bank-
ruptcy petitions. 
Sec. 1206. Limitation on compensation of professional persons. 
Sec. 1207. Effect of conversion. 
Sec. 1208. Allowance of administrative expenses. 
Sec. 1209. Exceptions to discharge. 
Sec. 1210. Effect of discharge. 
Sec. 1211. Protection against discriminatory treatment. 
Sec. 1212. Property of the estate. 
Sec. 1213. Preferences. 
Sec. 1214. Postpetition transactions.
Sec. 1215. Disposition of property of the estate. 
Sec. 1216. General provisions. 
Sec. 1217. Abandonment of railroad line. 
Sec. 1218. Contents of plan. 
Sec. 1219. Bankruptcy cases and proceedings. 
Sec. 1220. Knowing disregard of bankruptcy law or rule. 
Sec. 1221. Transfers made by nonprofit charitable corporations. 
Sec. 1222. Protection of valid purchase money security interests. 
Sec. 1223. Bankruptcy Judgeships. 
Sec. 1224. Compensating trustees. 
Sec. 1225. Amendment to section 362 of title 11, United States Code. 
Sec. 1226. Judicial education. 
Sec. 1227. Reclamation. 
Sec. 1228. Providing requested tax documents to the court. 
Sec. 1229. Encouraging creditworthiness. 
Sec. 1230. Property no longer subject to redemption. 
Sec. 1231. Trustees. 
Sec. 1232. Bankruptcy forms. 
Sec. 1233. Direct appeals of bankruptcy matters to courts of appeals. 
Sec. 1234. Involuntary cases. 
Sec. 1235. Federal election law fines and penalties as nondischargeable debt. 
TITLE XIII—CONSUMER CREDIT DISCLOSURE 
Sec. 1301. Enhanced disclosures under an open end credit plan. 
Sec. 1302. Enhanced disclosure for credit extensions secured by a dwelling. 
Sec. 1303. Disclosures related to ‘‘introductory rates’’. 
Sec. 1304. Internet-based credit card solicitations. 
Sec. 1305. Disclosures related to late payment deadlines and penalties. 
Sec. 1306. Prohibition on certain actions for failure to incur finance charges. 
Sec. 1307. Dual use debit card. 
Sec. 1308. Study of bankruptcy impact of credit extended to dependent students. 
Sec. 1309. Clarification of clear and conspicuous. 
TITLE XIV—GENERAL EFFECTIVE DATE; APPLICATION OF 
AMENDMENTS 
Sec. 1401. Effective date; application of amendments.
TITLE I—NEEDS-BASED 
BANKRUPTCY 
SEC. 101. CONVERSION. 
Section 706(c) of title 11, United States Code, is 
amended by inserting ‘‘or consents to’’ after ‘‘requests’’. 
SEC. 102. DISMISSAL OR CONVERSION. 
(a) IN GENERAL.—Section 707 of title 11, United 
States Code, is amended—
(1) by striking the section heading and inserting 
the following: 
‘‘§ 707. Dismissal of a case or conversion to a case 
under chapter 11 or 13’’; 
and 
(2) in subsection (b)—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’; 
(B) in paragraph (1), as so redesignated by 
subparagraph (A) of this paragraph—
(i) in the first sentence—
(I) by striking ‘‘but not at the re-
quest or suggestion of’’ and inserting 
‘‘trustee (or bankruptcy administrator, 
if any), or’’; 
(II) by inserting ‘‘, or, with the 
debtor’s consent, convert such a case to 
a case under chapter 11 or 13 of this 
title,’’ after ‘‘consumer debts’’; and 
(III) by striking ‘‘a substantial 
abuse’’ and inserting ‘‘an abuse’’; and 
(ii) by striking the next to last sen-
tence; and 
(C) by adding at the end the following: 
‘‘(2)(A)(i) In considering under paragraph (1) whether 
the granting of relief would be an abuse of the provisions
of this chapter, the court shall presume abuse exists if the 
debtor’s current monthly income reduced by the amounts 
determined under clauses (ii), (iii), and (iv), and multi-
plied by 60 is not less than the lesser of—
‘‘(I) 25 percent of the debtor’s nonpriority unse-
cured claims in the case, or $6,000, whichever is 
greater; or 
‘‘(II) $10,000. 
‘‘(ii)(I) The debtor’s monthly expenses shall be the debt-
or’s applicable monthly expense amounts specified under 
the National Standards and Local Standards, and the debt-
or’s actual monthly expenses for the categories specified as 
Other Necessary Expenses issued by the Internal Revenue 
Service for the area in which the debtor resides, as in effect 
on the date of the order for relief, for the debtor, the depend-
ents of the debtor, and the spouse of the debtor in a joint 
case, if the spouse is not otherwise a dependent. Notwith-
standing any other provision of this clause, the monthly ex-
penses of the debtor shall not include any payments for 
debts. In addition, the debtor’s monthly expenses shall in-
clude the debtor’s reasonably necessary expenses incurred to 
maintain the safety of the debtor and the family of the debt-
or from family violence as identified under section 309 of 
the Family Violence Prevention and Services Act, or other 
applicable Federal law. The expenses included in the debt-
or’s monthly expenses described in the preceding sentence 
shall be kept confidential by the court. In addition, if it 
is demonstrated that it is reasonable and necessary, the 
debtor’s monthly expenses may also include an additional 
allowance for food and clothing of up to 5 percent of the 
food and clothing categories as specified by the National 
Standards issued by the Internal Revenue Service. 
‘‘(II) In addition, the debtor’s monthly expenses may 
include, if applicable, the continuation of actual expenses 
paid by the debtor that are reasonable and necessary for 
care and support of an elderly, chronically ill, or disabled 
household member or member of the debtor’s immediate 
family (including parents, grandparents, siblings, children, 
and grandchildren of the debtor, the dependents of the debt-
or, and the spouse of the debtor in a joint case who is not 
a dependent) and who is unable to pay for such reasonable 
and necessary expenses. 
‘‘(III) In addition, for a debtor eligible for chapter 13, 
the debtor’s monthly expenses may include the actual ad-
ministrative expenses of administering a chapter 13 plan 
for the district in which the debtor resides, up to an amount 
of 10 percent of the projected plan payments, as determined 
under schedules issued by the Executive Office for United 
States Trustees.
‘‘(IV) In addition, the debtor’s monthly expenses may 
include the actual expenses for each dependent child less 
than 18 years of age, not to exceed $1,500 per year per 
child, to attend a private or public elementary or secondary 
school if the debtor provides documentation of such expenses 
and a detailed explanation of why such expenses are reason-
able and necessary, and why such expenses are not already 
accounted for in the National Standards, Local Standards, 
or Other Necessary Expenses referred to in subclause (I).
‘‘(V) In addition, the debtor’s monthly expenses may 
include an allowance for housing and utilities, in excess of 
the allowance specified by the Local Standards for housing 
and utilities issued by the Internal Revenue Service, based 
on the actual expenses for home energy costs if the debtor 
provides documentation of such actual expenses and dem-
onstrates that such actual expenses are reasonable and nec-
essary.
‘‘(iii) The debtor’s average monthly payments on ac-
count of secured debts shall be calculated as the sum of—
‘‘(I) the total of all amounts scheduled as con-
tractually due to secured creditors in each month of 
the 60 months following the date of the petition; and 
‘‘(II) any additional payments to secured credi-
tors necessary for the debtor, in filing a plan under 
chapter 13 of this title, to maintain possession of the
debtor’s primary residence, motor vehicle, or other 
property necessary for the support of the debtor and 
the debtor’s dependents, that serves as collateral for se-
cured debts; 
divided by 60. 
‘‘(iv) The debtor’s expenses for payment of all priority 
claims (including priority child support and alimony 
claims) shall be calculated as the total amount of debts enti-
tled to priority, divided by 60. 
‘‘(B)(i) In any proceeding brought under this sub-
section, the presumption of abuse may only be rebutted by 
demonstrating special circumstances that justify additional 
expenses or adjustments of current monthly income for 
which there is no reasonable alternative. 
‘‘(ii) In order to establish special circumstances, the 
debtor shall be required to itemize each additional expense 
or adjustment of income and to provide—
‘‘(I) documentation for such expense or adjust-
ment to income; and 
‘‘(II) a detailed explanation of the special cir-
cumstances that make such expenses or adjustment to 
income necessary and reasonable. 
‘‘(iii) The debtor shall attest under oath to the accu-
racy of any information provided to demonstrate that addi-
tional expenses or adjustments to income are required.
‘‘(iv) The presumption of abuse may only be rebutted 
if the additional expenses or adjustments to income referred 
to in clause (i) cause the product of the debtor’s current 
monthly income reduced by the amounts determined under 
clauses (ii), (iii), and (iv) of subparagraph (A) when multi-
plied by 60 to be less than the lesser of—
‘‘(I) 25 percent of the debtor’s nonpriority unse-
cured claims, or $6,000, whichever is greater; or 
‘‘(II) $10,000. 
‘‘(C) As part of the schedule of current income and 
expenditures required under section 521, the debtor shall in-
clude a statement of the debtor’s current monthly income, 
and the calculations that determine whether a presumption 
arises under subparagraph (A)(i), that show how each such 
amount is calculated. 
‘‘(3) In considering under paragraph (1) whether the 
granting of relief would be an abuse of the provisions of 
this chapter in a case in which the presumption in subpara-
graph (A)(i) of such paragraph does not arise or is rebutted, 
the court shall consider—
‘‘(A) whether the debtor filed the petition in bad 
faith; or 
‘‘(B) the totality of the circumstances (including 
whether the debtor seeks to reject a personal services 
contract and the financial need for such rejection as
sought by the debtor) of the debtor’s financial situa-
tion demonstrates abuse.
‘‘(4)(A) The court, on its own initiative or on the mo-
tion of a party in interest, in accordance with the proce-
dures described in rule 9011 of the Federal Rules of Bank-
ruptcy Procedure, may order the attorney for the debtor to 
reimburse the trustee for all reasonable costs in prosecuting 
a motion filed under section 707(b), including reasonable 
attorneys’ fees, if—
‘‘(i) a trustee files a motion for dismissal or con-
version under this subsection; and 
‘‘(ii) the court—
‘‘(I) grants such motion; and
‘‘(II) finds that the action of the attorney 
for the debtor in filing under this chapter vio-
lated rule 9011 of the Federal Rules of Bank-
ruptcy Procedure. 
‘‘(B) If the court finds that the attorney for the debtor 
violated rule 9011 of the Federal Rules of Bankruptcy Pro-
cedure, the court, on its own initiative or on the motion 
of a party in interest, in accordance with such procedures, 
may order—
‘‘(i) the assessment of an appropriate civil pen-
alty against the attorney for the debtor; and
‘‘(ii) the payment of such civil penalty to the 
trustee, the United States trustee (or the bankruptcy 
administrator, if any). 
‘‘(C) The signature of an attorney on a petition, plead-
ing, or written motion shall constitute a certification that 
the attorney has—
‘‘(i) performed a reasonable investigation into 
the circumstances that gave rise to the petition, plead-
ing, or written motion; and 
‘‘(ii) determined that the petition, pleading, or 
written motion—
‘‘(I) is well grounded in fact; and 
‘‘(II) is warranted by existing law or a 
good faith argument for the extension, modifica-
tion, or reversal of existing law and does not 
constitute an abuse under paragraph (1). 
‘‘(D) The signature of an attorney on the petition shall 
constitute a certification that the attorney has no knowledge 
after an inquiry that the information in the schedules filed 
with such petition is incorrect. 
‘‘(5)(A) Except as provided in subparagraph (B) and 
subject to paragraph (6), the court, on its own initiative 
or on the motion of a party in interest, in accordance with 
the procedures described in rule 9011 of the Federal Rules 
of Bankruptcy Procedure, may award a debtor all reason-
able costs (including reasonable attorneys’ fees) in con-
testing a motion filed by a party in interest (other than 
a trustee or United States trustee (or bankruptcy adminis-
trator, if any)) under this subsection if—
‘‘(i) the court does not grant the motion; and 
‘‘(ii) the court finds that—
‘‘(I) the position of the party that filed the 
motion violated rule 9011 of the Federal Rules of 
Bankruptcy Procedure; or 
‘‘(II) the attorney (if any) who filed the mo-
tion did not comply with the requirements of 
clauses (i) and (ii) of paragraph (4)(C), and the 
motion was made solely for the purpose of coerc-
ing a debtor into waiving a right guaranteed to 
the debtor under this title. 
‘‘(B) A small business that has a claim of an aggregate 
amount less than $1,000 shall not be subject to subpara-
graph (A)(ii)(I). 
‘‘(C) For purposes of this paragraph—
‘‘(i) the term ‘small business’ means an unincor-
porated business, partnership, corporation, associa-
tion, or organization that—
‘‘(I) has fewer than 25 full-time employees 
as determined on the date on which the motion 
is filed; and
‘‘(II) is engaged in commercial or business 
activity; and 
‘‘(ii) the number of employees of a wholly owned 
subsidiary of a corporation includes the employees 
of—
‘‘(I) a parent corporation; and 
‘‘(II) any other subsidiary corporation of 
the parent corporation. 
‘‘(6) Only the judge or United States trustee (or bank-
ruptcy administrator, if any) may file a motion under sec-
tion 707(b), if the current monthly income of the debtor, 
or in a joint case, the debtor and the debtor’s spouse, as 
of the date of the order for relief, when multiplied by 12, 
is equal to or less than— 
‘‘(A) in the case of a debtor in a household of 1 
person, the median family income of the applicable 
State for 1 earner; 
‘‘(B) in the case of a debtor in a household of 2, 
3, or 4 individuals, the highest median family income 
of the applicable State for a family of the same num-
ber or fewer individuals; or 
‘‘(C) in the case of a debtor in a household ex-
ceeding 4 individuals, the highest median family in-
come of the applicable State for a family of 4 or fewer
individuals, plus $525 per month for each individual 
in excess of 4.
‘‘(7)(A) No judge, United States trustee (or bankruptcy 
administrator, if any), trustee, or other party in interest 
may file a motion under paragraph (2) if the current 
monthly income of the debtor and the debtor’s spouse com-
bined, as of the date of the order for relief when multiplied 
by 12, is equal to or less than—
‘‘(i) in the case of a debtor in a household of 1 
person, the median family income of the applicable 
State for 1 earner; 
‘‘(ii) in the case of a debtor in a household of 2, 
3, or 4 individuals, the highest median family income 
of the applicable State for a family of the same num-
ber or fewer individuals; or 
‘‘(iii) in the case of a debtor in a household ex-
ceeding 4 individuals, the highest median family in-
come of the applicable State for a family of 4 or fewer 
individuals, plus $525 per month for each individual 
in excess of 4. 
‘‘(B) In a case that is not a joint case, current monthly 
income of the debtor’s spouse shall not be considered for pur-
poses of subparagraph (A) if—
‘‘(i)(I) the debtor and the debtor’s spouse are sep-
arated under applicable nonbankruptcy law; or
‘‘(II) the debtor and the debtor’s spouse are liv-
ing separate and apart, other than for the purpose of 
evading subparagraph (A); and 
‘‘(ii) the debtor files a statement under penalty 
of perjury—
‘‘(I) specifying that the debtor meets the re-
quirement of subclause (I) or (II) of clause (i); 
and 
‘‘(II) disclosing the aggregate, or best esti-
mate of the aggregate, amount of any cash or 
money payments received from the debtor’s 
spouse attributed to the debtor’s current monthly 
income.’’.
(b) DEFINITION.—Section 101 of title 11, United 
States Code, is amended by inserting after paragraph (10) 
the following: 
‘‘(10A) ‘current monthly income’—
‘‘(A) means the average monthly income 
from all sources that the debtor receives (or in a 
joint case the debtor and the debtor’s spouse re-
ceive) without regard to whether such income is 
taxable income, derived during the 6-month pe-
riod ending on—
‘‘(i) the last day of the calendar month 
immediately preceding the date of the com-
mencement of the case if the debtor files the 
schedule of current income required by sec-
tion 521(a)(1)(B)(ii); or 
‘‘(ii) the date on which current income 
is determined by the court for purposes of 
this title if the debtor does not file the sched-
ule of current income required by section 
521(a)(1)(B)(ii); and 
‘‘(B) includes any amount paid by any en-
tity other than the debtor (or in a joint case the 
debtor and the debtor’s spouse), on a regular 
basis for the household expenses of the debtor or 
the debtor’s dependents (and in a joint case the 
debtor’s spouse if not otherwise a dependent), but 
excludes benefits received under the Social Secu-
rity Act, payments to victims of war crimes or 
crimes against humanity on account of their sta-
tus as victims of such crimes, and payments to 
victims of international terrorism (as defined in 
section 2331 of title 18) or domestic terrorism 
(as defined in section 2331 of title 18) on ac-
count of their status as victims of such ter-
rorism;’’.
(c) UNITED STATES TRUSTEE AND BANKRUPTCY AD-
MINISTRATOR DUTIES.—Section 704 of title 11, United 
States Code, is amended—
(1) by inserting ‘‘(a)’’ before ‘‘The trustee
shall—’’; and 
(2) by adding at the end the following: 
‘‘(b)(1) With respect to a debtor who is an individual 
in a case under this chapter—
‘‘(A) the United States trustee (or the bank-
ruptcy administrator, if any) shall review all mate-
rials filed by the debtor and, not later than 10 days 
after the date of the first meeting of creditors, file 
with the court a statement as to whether the debtor’s 
case would be presumed to be an abuse under section 
707(b); and
‘‘(B) not later than 5 days after receiving a 
statement under subparagraph (A), the court shall 
provide a copy of the statement to all creditors. 
‘‘(2) The United States trustee (or bankruptcy admin-
istrator, if any) shall, not later than 30 days after the date 
of filing a statement under paragraph (1), either file a mo-
tion to dismiss or convert under section 707(b) or file a 
statement setting forth the reasons the United States trustee 
(or the bankruptcy administrator, if any) does not consider 
such a motion to be appropriate, if the United States trustee
(or the bankruptcy administrator, if any) determines that 
the debtor’s case should be presumed to be an abuse under 
section 707(b) and the product of the debtor’s current 
monthly income, multiplied by 12 is not less than—
‘‘(A) in the case of a debtor in a household of 1 
person, the median family income of the applicable 
State for 1 earner; or 
‘‘(B) in the case of a debtor in a household of 2 
or more individuals, the highest median family in-
come of the applicable State for a family of the same 
number or fewer individuals.’’. 
(d) NOTICE.—Section 342 of title 11, United States 
Code, is amended by adding at the end the following: 
‘‘(d) In a case under chapter 7 of this title in which 
the debtor is an individual and in which the presumption 
of abuse arises under section 707(b), the clerk shall give 
written notice to all creditors not later than 10 days after 
the date of the filing of the petition that the presumption 
of abuse has arisen.’’. 
(e) NONLIMITATION
OF INFORMATION.—Nothing in 
this title shall limit the ability of a creditor to provide in-
formation to a judge (except for information communicated 
ex parte, unless otherwise permitted by applicable law), 
United States trustee (or bankruptcy administrator, if 
any), or trustee.
(f) DISMISSAL FOR CERTAIN CRIMES.—Section 707 of 
title 11, United States Code, is amended by adding at the 
end the following: 
‘‘(c)(1) In this subsection—
‘‘(A) the term ‘crime of violence’ has the meaning 
given such term in section 16 of title 18; and 
‘‘(B) the term ‘drug trafficking crime’ has the 
meaning given such term in section 924(c)(2) of title 
18. 
‘‘(2) Except as provided in paragraph (3), after notice 
and a hearing, the court, on a motion by the victim of a 
crime of violence or a drug trafficking crime, may when 
it is in the best interest of the victim dismiss a voluntary 
case filed under this chapter by a debtor who is an indi-
vidual if such individual was convicted of such crime. 
‘‘(3) The court may not dismiss a case under para-
graph (2) if the debtor establishes by a preponderance of 
the evidence that the filing of a case under this chapter is 
necessary to satisfy a claim for a domestic support obliga-
tion.’’. 
(g) CONFIRMATION OF PLAN.—Section 1325(a) of title 
11, United States Code, is amended—
(1) in paragraph (5), by striking ‘‘and’’ at the 
end;
(2) in paragraph (6), by striking the period and 
inserting a semicolon; and 
(3) by inserting after paragraph (6) the fol-
lowing: 
‘‘(7) the action of the debtor in filing the petition 
was in good faith;’’. 
(h) APPLICABILITY
OF MEANS TEST
TO CHAPTER 
13.—Section 1325(b) of title 11, United States Code, is 
amended—
(1) in paragraph (1)(B), by inserting ‘‘to unse-
cured creditors’’ after ‘‘to make payments’’; and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) For purposes of this subsection, the term 
‘disposable income’ means current monthly income re-
ceived by the debtor (other than child support pay-
ments, foster care payments, or disability payments 
for a dependent child made in accordance with appli-
cable nonbankruptcy law to the extent reasonably nec-
essary to be expended for such child) less amounts 
reasonably necessary to be expended—
‘‘(A)(i) for the maintenance or support of 
the debtor or a dependent of the debtor, or for a 
domestic support obligation, that first becomes 
payable after the date the petition is filed; and
‘‘(ii) for charitable contributions (that meet 
the definition of ‘charitable contribution’ under 
section 548(d)(3) to a qualified religious or char-
itable entity or organization (as defined in sec-
tion 548(d)(4)) in an amount not to exceed 15 
percent of gross income of the debtor for the year 
in which the contributions are made; and 
‘‘(B) if the debtor is engaged in business, for 
the payment of expenditures necessary for the 
continuation, preservation, and operation of such 
business. 
‘‘(3) Amounts reasonably necessary to be ex-
pended under paragraph (2) shall be determined in 
accordance with subparagraphs (A) and (B) of section 
707(b)(2), if the debtor has current monthly income, 
when multiplied by 12, greater than—
‘‘(A) in the case of a debtor in a household 
of 1 person, the median family income of the ap-
plicable State for 1 earner; 
‘‘(B) in the case of a debtor in a household 
of 2, 3, or 4 individuals, the highest median 
family income of the applicable State for a fam-
ily of the same number or fewer individuals; or 
‘‘(C) in the case of a debtor in a household 
exceeding 4 individuals, the highest median fam-
ily income of the applicable State for a family 
of 4 or fewer individuals, plus $525 per month 
for each individual in excess of 4.’’.
(i) SPECIAL ALLOWANCE FOR HEALTH INSURANCE.—
Section 1329(a) of title 11, United States Code, is amend-
ed—
(1) in paragraph (2) by striking ‘‘or’’ at the end; 
(2) in paragraph (3) by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(4) reduce amounts to be paid under the plan 
by the actual amount expended by the debtor to pur-
chase health insurance for the debtor (and for any de-
pendent of the debtor if such dependent does not other-
wise have health insurance coverage) if the debtor doc-
uments the cost of such insurance and demonstrates 
that—
‘‘(A) such expenses are reasonable and nec-
essary; 
‘‘(B)(i) if the debtor previously paid for 
health insurance, the amount is not materially 
larger than the cost the debtor previously paid or 
the cost necessary to maintain the lapsed policy; 
or
‘‘(ii) if the debtor did not have health insur-
ance, the amount is not materially larger than 
the reasonable cost that would be incurred by a 
debtor who purchases health insurance, who has 
similar income, expenses, age, and health status, 
and who lives in the same geographical location 
with the same number of dependents who do not 
otherwise have health insurance coverage; and 
‘‘(C) the amount is not otherwise allowed 
for purposes of determining disposable income 
under section 1325(b) of this title;
and upon request of any party in interest, files proof 
that a health insurance policy was purchased.’’.
(j) ADJUSTMENT
OF
DOLLAR
AMOUNTS.—Section 
104(b) of title 11, United States Code, is amended by strik-
ing ‘‘and 523(a)(2)(C)’’ each place it appears and inserting 
‘‘523(a)(2)(C), 707(b), and 1325(b)(3)’’.
(k) DEFINITION OF ‘MEDIAN FAMILY INCOME’.—Sec-
tion 101 of title 11, United States Code, is amended by in-
serting after paragraph (39) the following: 
‘‘(39A) ‘median family income’ means for any 
year—
‘‘(A) the median family income both cal-
culated and reported by the Bureau of the Census 
in the then most recent year; and
‘‘(B) if not so calculated and reported in the 
then current year, adjusted annually after such 
most recent year until the next year in which 
median family income is both calculated and re-
ported by the Bureau of the Census, to reflect the 
percentage change in the Consumer Price Index 
for All Urban Consumers during the period of 
years occurring after such most recent year and 
before such current year;’’. 
(k) CLERICAL AMENDMENT.—The table of sections for 
chapter 7 of title 11, United States Code, is amended by 
striking the item relating to section 707 and inserting the 
following:
‘‘707. Dismissal of a case or conversion to a case under chapter 11 or 13.’’.
SEC. 103. SENSE OF CONGRESS AND STUDY. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that the Secretary of the Treasury has the authority to alter 
the Internal Revenue Service standards established to set 
guidelines for repayment plans as needed to accommodate 
their use under section 707(b) of title 11, United States 
Code. 
(b) STUDY.—
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Director of the 
Executive Office for United States Trustees shall sub-
mit a report to the Committee on the Judiciary of the
Senate and the Committee on the Judiciary of the 
House of Representatives containing the findings of 
the Director regarding the utilization of Internal Rev-
enue Service standards for determining—
(A) the current monthly expenses of a debtor 
under section 707(b) of title 11, United States 
Code; and 
(B) the impact that the application of such 
standards has had on debtors and on the bank-
ruptcy courts. 
(2) RECOMMENDATION.—The report under para-
graph (1) may include recommendations for amend-
ments to title 11, United States Code, that are con-
sistent with the findings of the Director under para-
graph (1). 
SEC. 104. NOTICE OF ALTERNATIVES. 
Section 342(b) of title 11, United States Code, is 
amended to read as follows: 
‘‘(b) Before the commencement of a case under this title 
by an individual whose debts are primarily consumer debts, 
the clerk shall give to such individual written notice con-
taining—
‘‘(1) a brief description of—
‘‘(A) chapters 7, 11, 12, and 13 and the 
general purpose, benefits, and costs of proceeding 
under each of those chapters; and 
‘‘(B) the types of services available from 
credit counseling agencies; and 
‘‘(2) statements specifying that—
‘‘(A) a person who knowingly and fraudu-
lently conceals assets or makes a false oath or 
statement under penalty of perjury in connection 
with a case under this title shall be subject to 
fine, imprisonment, or both; and 
‘‘(B) all information supplied by a debtor 
in connection with a case under this title is sub-
ject to examination by the Attorney General.’’. 
SEC. 105. DEBTOR FINANCIAL MANAGEMENT TRAINING 
TEST PROGRAM. 
(a) DEVELOPMENT OF FINANCIAL MANAGEMENT AND 
TRAINING CURRICULUM AND MATERIALS.—The Director of 
the Executive Office for United States Trustees (in this sec-
tion referred to as the ‘‘Director’’) shall consult with a wide 
range of individuals who are experts in the field of debtor 
education, including trustees who serve in cases under chap-
ter 13 of title 11, United States Code, and who operate fi-
nancial management education programs for debtors, and 
shall develop a financial management training curriculum
and materials that can be used to educate debtors who are 
individuals on how to better manage their finances. 
(b) TEST.—
(1) SELECTION
OF
DISTRICTS.—The Director 
shall select 6 judicial districts of the United States in 
which to test the effectiveness of the financial manage-
ment training curriculum and materials developed 
under subsection (a). 
(2) USE.—For an 18-month period beginning 
not later than 270 days after the date of the enact-
ment of this Act, such curriculum and materials shall 
be, for the 6 judicial districts selected under para-
graph (1), used as the instructional course concerning 
personal financial management for purposes of sec-
tion 111 of title 11, United States Code. 
(c) EVALUATION.—
(1) IN GENERAL.—During the 18-month period 
referred to in subsection (b), the Director shall evalu-
ate the effectiveness of—
(A) the financial management training cur-
riculum and materials developed under sub-
section (a); and 
(B) a sample of existing consumer edu-
cation programs such as those described in the 
Report of the National Bankruptcy Review Com-
mission (October 20, 1997) that are representa-
tive of consumer education programs carried out 
by the credit industry, by trustees serving under 
chapter 13 of title 11, United States Code, and 
by consumer counseling groups. 
(2) REPORT.—Not later than 3 months after con-
cluding such evaluation, the Director shall submit a 
report to the Speaker of the House of Representatives 
and the President pro tempore of the Senate, for refer-
ral to the appropriate committees of the Congress, 
containing the findings of the Director regarding the 
effectiveness of such curriculum, such materials, and 
such programs and their costs. 
SEC. 106. CREDIT COUNSELING. 
(a) WHO MAY BE A DEBTOR.—Section 109 of title 11, 
United States Code, is amended by adding at the end the 
following: 
‘‘(h)(1) Subject to paragraphs (2) and (3), and not-
withstanding any other provision of this section, an indi-
vidual may not be a debtor under this title unless such indi-
vidual has, during the 180-day period preceding the date 
of filing of the petition by such individual, received from 
an approved nonprofit budget and credit counseling agency 
described in section 111(a) an individual or group briefing 
(including a briefing conducted by telephone or on the
Internet) that outlined the opportunities for available credit 
counseling and assisted such individual in performing a re-
lated budget analysis. 
‘‘(2)(A) Paragraph (1) shall not apply with respect to 
a debtor who resides in a district for which the United 
States trustee (or the bankruptcy administrator, if any) de-
termines that the approved nonprofit budget and credit 
counseling agencies for such district are not reasonably able 
to provide adequate services to the additional individuals 
who would otherwise seek credit counseling from such agen-
cies by reason of the requirements of paragraph (1). 
‘‘(B) The United States trustee (or the bankruptcy ad-
ministrator, if any) who makes a determination described 
in subparagraph (A) shall review such determination not 
later than 1 year after the date of such determination, and 
not less frequently than annually thereafter. Notwith-
standing the preceding sentence, a nonprofit budget and 
credit counseling agency may be disapproved by the United 
States trustee (or the bankruptcy administrator, if any) at 
any time. 
‘‘(3)(A) Subject to subparagraph (B), the requirements 
of paragraph (1) shall not apply with respect to a debtor 
who submits to the court a certification that—
‘‘(i) describes exigent circumstances that merit a 
waiver of the requirements of paragraph (1);
‘‘(ii) states that the debtor requested credit coun-
seling services from an approved nonprofit budget 
and credit counseling agency, but was unable to ob-
tain the services referred to in paragraph (1) during 
the 5-day period beginning on the date on which the 
debtor made that request; and 
‘‘(iii) is satisfactory to the court.
‘‘(B) With respect to a debtor, an exemption under sub-
paragraph (A) shall cease to apply to that debtor on the 
date on which the debtor meets the requirements of para-
graph (1), but in no case may the exemption apply to that 
debtor after the date that is 30 days after the debtor files 
a petition, except that the court, for cause, may order an 
additional 15 days.’’.
(b) CHAPTER 7 DISCHARGE.—Section 727(a) of title 
11, United States Code, is amended—
(1) in paragraph (9), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (10), by striking the period 
and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(11) after filing the petition, the debtor failed 
to complete an instructional course concerning per-
sonal financial management described in section 111, 
except that this paragraph shall not apply with re-
spect to a debtor who resides in a district for which 
the United States trustee (or the bankruptcy adminis-
trator, if any) determines that the approved instruc-
tional courses are not adequate to service the addi-
tional individuals who would otherwise be required to 
complete such instructional courses under this section 
(The United States trustee (or the bankruptcy admin-
istrator, if any) who makes a determination described 
in this paragraph shall review such determination 
not later than 1 year after the date of such deter-
mination, and not less frequently than annually 
thereafter.).’’. 
(c) CHAPTER 13 DISCHARGE.—Section 1328 of title 
11, United States Code, is amended by adding at the end 
the following: 
‘‘(g)(1) The court shall not grant a discharge under 
this section to a debtor unless after filing a petition the 
debtor has completed an instructional course concerning 
personal financial management described in section 111. 
‘‘(2) Paragraph (1) shall not apply with respect to a 
debtor who resides in a district for which the United States 
trustee (or the bankruptcy administrator, if any) deter-
mines that the approved instructional courses are not ade-
quate to service the additional individuals who would other-
wise be required to complete such instructional course by 
reason of the requirements of paragraph (1). 
‘‘(3) The United States trustee (or the bankruptcy ad-
ministrator, if any) who makes a determination described 
in paragraph (2) shall review such determination not later 
than 1 year after the date of such determination, and not 
less frequently than annually thereafter.’’. 
(d) DEBTOR’S DUTIES.—Section 521 of title 11, 
United States Code, is amended—
(1) by inserting ‘‘(a)’’ before ‘‘The debtor shall—
’’; and 
(2) by adding at the end the following: 
‘‘(b) In addition to the requirements under subsection 
(a), a debtor who is an individual shall file with the court—
‘‘(1) a certificate from the approved nonprofit 
budget and credit counseling agency that provided the 
debtor services under section 109(h) describing the 
services provided to the debtor; and 
‘‘(2) a copy of the debt repayment plan, if any, 
developed under section 109(h) through the approved 
nonprofit budget and credit counseling agency re-
ferred to in paragraph (1).’’. 
(e) GENERAL PROVISIONS.—
(1) IN GENERAL.—Chapter 1 of title 11, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 111. Nonprofit budget and credit counseling agen-
cies; financial management instructional 
courses 
‘‘(a) The clerk shall maintain a publicly available list 
of—
‘‘(1) nonprofit budget and credit counseling 
agencies that provide 1 or more services described in 
section 109(h) currently approved by the United 
States trustee (or the bankruptcy administrator, if 
any); and 
‘‘(2) instructional courses concerning personal fi-
nancial management currently approved by the 
United States trustee (or the bankruptcy adminis-
trator, if any), as applicable. 
‘‘(b) The United States trustee (or bankruptcy admin-
istrator, if any) shall only approve a nonprofit budget and 
credit counseling agency or an instructional course con-
cerning personal financial management as follows: 
‘‘(1) The United States trustee (or bankruptcy 
administrator, if any) shall have thoroughly reviewed 
the qualifications of the nonprofit budget and credit 
counseling agency or of the provider of the instruc-
tional course under the standards set forth in this sec-
tion, and the services or instructional courses that 
will be offered by such agency or such provider, and 
may require such agency or such provider that has 
sought approval to provide information with respect 
to such review. 
‘‘(2) The United States trustee (or bankruptcy 
administrator, if any) shall have determined that 
such agency or such instructional course fully satisfies 
the applicable standards set forth in this section. 
‘‘(3) If a nonprofit budget and credit counseling 
agency or instructional course did not appear on the 
approved list for the district under subsection (a) im-
mediately before approval under this section, ap-
proval under this subsection of such agency or such 
instructional course shall be for a probationary pe-
riod not to exceed 6 months. 
‘‘(4) At the conclusion of the applicable proba-
tionary period under paragraph (3), the United 
States trustee (or bankruptcy administrator, if any) 
may only approve for an additional 1-year period, 
and for successive 1-year periods thereafter, an agency 
or instructional course that has demonstrated during 
the probationary or applicable subsequent period of 
approval that such agency or instructional course—
‘‘(A) has met the standards set forth under 
this section during such period; and 
‘‘(B) can satisfy such standards in the fu-
ture. 
‘‘(5) Not later than 30 days after any final deci-
sion under paragraph (4), an interested person may 
seek judicial review of such decision in the appro-
priate district court of the United States. 
‘‘(c)(1) The United States trustee (or the bankruptcy 
administrator, if any) shall only approve a nonprofit budg-
et and credit counseling agency that demonstrates that it 
will provide qualified counselors, maintain adequate provi-
sion for safekeeping and payment of client funds, provide 
adequate counseling with respect to client credit problems, 
and deal responsibly and effectively with other matters re-
lating to the quality, effectiveness, and financial security 
of the services it provides. 
‘‘(2) To be approved by the United States trustee (or 
the bankruptcy administrator, if any), a nonprofit budget 
and credit counseling agency shall, at a minimum—
‘‘(A) have a board of directors the majority of 
which— 
‘‘(i) are not employed by such agency; and
‘‘(ii) will not directly or indirectly benefit 
financially from the outcome of the counseling 
services provided by such agency; 
‘‘(B) if a fee is charged for counseling services, 
charge a reasonable fee, and provide services without 
regard to ability to pay the fee; 
‘‘(C) provide for safekeeping and payment of cli-
ent funds, including an annual audit of the trust ac-
counts and appropriate employee bonding; 
‘‘(D) provide full disclosures to a client, includ-
ing funding sources, counselor qualifications, possible 
impact on credit reports, and any costs of such pro-
gram that will be paid by such client and how such 
costs will be paid;
‘‘(E) provide adequate counseling with respect to 
a client’s credit problems that includes an analysis of 
such client’s current financial condition, factors that 
caused such financial condition, and how such client 
can develop a plan to respond to the problems without 
incurring negative amortization of debt; 
‘‘(F) provide trained counselors who receive no 
commissions or bonuses based on the outcome of the 
counseling services provided by such agency, and who 
have adequate experience, and have been adequately 
trained to provide counseling services to individuals
in financial difficulty, including the matters de-
scribed in subparagraph (E); 
‘‘(G) demonstrate adequate experience and back-
ground in providing credit counseling; and 
‘‘(H) have adequate financial resources to pro-
vide continuing support services for budgeting plans 
over the life of any repayment plan. 
‘‘(d) The United States trustee (or the bankruptcy ad-
ministrator, if any) shall only approve an instructional 
course concerning personal financial management—
‘‘(1) for an initial probationary period under 
subsection (b)(3) if the course will provide at a min-
imum—
‘‘(A) trained personnel with adequate expe-
rience and training in providing effective in-
struction and services; 
‘‘(B) learning materials and teaching meth-
odologies designed to assist debtors in under-
standing personal financial management and 
that are consistent with stated objectives directly 
related to the goals of such instructional course; 
‘‘(C) adequate facilities situated in reason-
ably convenient locations at which such instruc-
tional course is offered, except that such facilities 
may include the provision of such instructional
course by telephone or through the Internet, if 
such instructional course is effective; and 
‘‘(D) the preparation and retention of rea-
sonable records (which shall include the debtor’s 
bankruptcy case number) to permit evaluation of 
the effectiveness of such instructional course, in-
cluding any evaluation of satisfaction of instruc-
tional course requirements for each debtor at-
tending such instructional course, which shall be 
available for inspection and evaluation by the 
Executive Office for United States Trustees, the 
United States trustee (or the bankruptcy admin-
istrator, if any), or the chief bankruptcy judge 
for the district in which such instructional 
course is offered; and 
‘‘(2) for any 1-year period if the provider thereof 
has demonstrated that the course meets the standards 
of paragraph (1) and, in addition—
‘‘(A) has been effective in assisting a sub-
stantial number of debtors to understand per-
sonal financial management; and 
‘‘(B) is otherwise likely to increase substan-
tially the debtor’s understanding of personal fi-
nancial management.
‘‘(e) The district court may, at any time, investigate 
the qualifications of a nonprofit budget and credit coun-
seling agency referred to in subsection (a), and request pro-
duction of documents to ensure the integrity and effective-
ness of such agency. The district court may, at any time, 
remove from the approved list under subsection (a) a non-
profit budget and credit counseling agency upon finding 
such agency does not meet the qualifications of subsection 
(b). 
‘‘(f) The United States trustee (or the bankruptcy ad-
ministrator, if any) shall notify the clerk that a nonprofit 
budget and credit counseling agency or an instructional 
course is no longer approved, in which case the clerk shall 
remove it from the list maintained under subsection (a). 
‘‘(g)(1) No nonprofit budget and credit counseling 
agency may provide to a credit reporting agency informa-
tion concerning whether a debtor has received or sought in-
struction concerning personal financial management from 
such agency. 
‘‘(2) A nonprofit budget and credit counseling agency 
that willfully or negligently fails to comply with any re-
quirement under this title with respect to a debtor shall be 
liable for damages in an amount equal to the sum of—
‘‘(A) any actual damages sustained by the debtor 
as a result of the violation; and
‘‘(B) any court costs or reasonable attorneys’ fees 
(as determined by the court) incurred in an action to 
recover those damages.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 1 of title 11, United States Code, is 
amended by adding at the end the following:
‘‘111. Nonprofit budget and credit counseling agencies; financial management in-
structional courses.’’.
(f) LIMITATION.—Section 362 of title 11, United States 
Code, is amended by adding at the end the following: 
‘‘(i) If a case commenced under chapter 7, 11, or 13 
is dismissed due to the creation of a debt repayment plan, 
for purposes of subsection (c)(3), any subsequent case com-
menced by the debtor under any such chapter shall not be 
presumed to be filed not in good faith. 
‘‘(j) On request of a party in interest, the court shall 
issue an order under subsection (c) confirming that the 
automatic stay has been terminated.’’. 
SEC. 107. SCHEDULES OF REASONABLE AND NECESSARY 
EXPENSES. 
For purposes of section 707(b) of title 11, United 
States Code, as amended by this Act, the Director of the 
Executive Office for United States Trustees shall, not later 
than 180 days after the date of enactment of this Act, issue 
schedules of reasonable and necessary administrative ex-
penses of administering a chapter 13 plan for each judicial 
district of the United States. 
TITLE II—ENHANCED 
CONSUMER PROTECTION 
Subtitle A—Penalties for Abusive 
Creditor Practices 
SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLU-
TION. 
(a) REDUCTION OF CLAIM.—Section 502 of title 11, 
United States Code, is amended by adding at the end the 
following: 
‘‘(k)(1) The court, on the motion of the debtor and after 
a hearing, may reduce a claim filed under this section based 
in whole on an unsecured consumer debt by not more than 
20 percent of the claim, if—
‘‘(A) the claim was filed by a creditor who un-
reasonably refused to negotiate a reasonable alter-
native repayment schedule proposed on behalf of the 
debtor by an approved nonprofit budget and credit 
counseling agency described in section 111; 
‘‘(B) the offer of the debtor under subparagraph 
(A)—
‘‘(i) was made at least 60 days before the 
date of the filing of the petition; and
‘‘(ii) provided for payment of at least 60 
percent of the amount of the debt over a period 
not to exceed the repayment period of the loan, 
or a reasonable extension thereof; and 
‘‘(C) no part of the debt under the alternative re-
payment schedule is nondischargeable. 
‘‘(2) The debtor shall have the burden of proving, by 
clear and convincing evidence, that—
‘‘(A) the creditor unreasonably refused to con-
sider the debtor’s proposal; and 
‘‘(B) the proposed alternative repayment sched-
ule was made prior to expiration of the 60-day period 
specified in paragraph (1)(B)(i).’’. 
(b) LIMITATION ON AVOIDABILITY.—Section 547 of 
title 11, United States Code, is amended by adding at the 
end the following: 
‘‘(h) The trustee may not avoid a transfer if such 
transfer was made as a part of an alternative repayment 
schedule between the debtor and any creditor of the debtor 
created by an approved nonprofit budget and credit coun-
seling agency.’’. 
SEC. 202. EFFECT OF DISCHARGE. 
Section 524 of title 11, United States Code, is amended 
by adding at the end the following:
‘‘(i) The willful failure of a creditor to credit payments 
received under a plan confirmed under this title, unless the 
order confirming the plan is revoked, the plan is in default, 
or the creditor has not received payments required to be 
made under the plan in the manner required by the plan 
(including crediting the amounts required under the plan), 
shall constitute a violation of an injunction under sub-
section (a)(2) if the act of the creditor to collect and failure 
to credit payments in the manner required by the plan 
caused material injury to the debtor. 
‘‘(j) Subsection (a)(2) does not operate as an injunc-
tion against an act by a creditor that is the holder of a 
secured claim, if—
‘‘(1) such creditor retains a security interest in 
real property that is the principal residence of the 
debtor; 
‘‘(2) such act is in the ordinary course of busi-
ness between the creditor and the debtor; and 
‘‘(3) such act is limited to seeking or obtaining 
periodic payments associated with a valid security 
interest in lieu of pursuit of in rem relief to enforce 
the lien.’’.
SEC. 
203. 
DISCOURAGING 
ABUSE 
OF 
REAFFIRMATION 
AGREEMENT PRACTICES. 
(a) IN GENERAL.—Section 524 of title 11, United 
States Code, as amended section 202, is amended—
(1) in subsection (c), by striking paragraph (2) 
and inserting the following: 
‘‘(2) the debtor received the disclosures described 
in subsection (k) at or before the time at which the 
debtor signed the agreement;’’; and 
(2) by adding at the end the following: 
‘‘(k)(1) The disclosures required under subsection 
(c)(2) shall consist of the disclosure statement described in 
paragraph (3), completed as required in that paragraph, 
together with the agreement specified in subsection (c), 
statement, declaration, motion and order described, respec-
tively, in paragraphs (4) through (8), and shall be the only 
disclosures required in connection with entering into such 
agreement. 
‘‘(2) Disclosures made under paragraph (1) shall be 
made clearly and conspicuously and in writing. The terms 
‘Amount Reaffirmed’ and ‘Annual Percentage Rate’ shall 
be disclosed more conspicuously than other terms, data or 
information provided in connection with this disclosure, ex-
cept that the phrases ‘Before agreeing to reaffirm a debt, 
review these important disclosures’ and ‘Summary of Reaf-
firmation Agreement’ may be equally conspicuous. Disclo-
sures may be made in a different order and may use termi-
nology different from that set forth in paragraphs (2) 
through (8), except that the terms ‘Amount Reaffirmed’ and 
‘Annual Percentage Rate’ must be used where indicated. 
‘‘(3) The disclosure statement required under this 
paragraph shall consist of the following: 
‘‘(A) The statement: ‘Part A: Before agreeing to 
reaffirm a debt, review these important disclosures:’; 
‘‘(B) Under the heading ‘Summary of Reaffir-
mation Agreement’, the statement: ‘This Summary is 
made pursuant to the requirements of the Bankruptcy 
Code’; 
‘‘(C) The ‘Amount Reaffirmed’, using that term, 
which shall be—
‘‘(i) the total amount of debt that the debtor 
agrees to reaffirm by entering into an agreement 
of the kind specified in subsection (c), and 
‘‘(ii) the total of any fees and costs accrued 
as of the date of the disclosure statement, related 
to such total amount. 
‘‘(D) In conjunction with the disclosure of the 
‘Amount Reaffirmed’, the statements—
‘‘(i) ‘The amount of debt you have agreed to 
reaffirm’; and
‘‘(ii) ‘Your credit agreement may obligate 
you to pay additional amounts which may come 
due after the date of this disclosure. Consult your 
credit agreement.’. 
‘‘(E) The ‘Annual Percentage Rate’, using that 
term, which shall be disclosed as—
‘‘(i) if, at the time the petition is filed, the 
debt is an extension of credit under an open end 
credit plan, as the terms ‘credit’ and ‘open end 
credit plan’ are defined in section 103 of the 
Truth in Lending Act, then—
‘‘(I) the annual percentage rate deter-
mined under paragraphs (5) and (6) of sec-
tion 127(b) of the Truth in Lending Act, as 
applicable, as disclosed to the debtor in the 
most recent periodic statement prior to en-
tering into an agreement of the kind speci-
fied in subsection (c) or, if no such periodic 
statement has been given to the debtor dur-
ing the prior 6 months, the annual percent-
age rate as it would have been so disclosed 
at the time the disclosure statement is given 
to the debtor, or to the extent this annual 
percentage rate is not readily available or 
not applicable, then
‘‘(II) the simple interest rate applica-
ble to the amount reaffirmed as of the date 
the disclosure statement is given to the debt-
or, or if different simple interest rates apply 
to different balances, the simple interest rate 
applicable to each such balance, identifying 
the amount of each such balance included in 
the amount reaffirmed, or 
‘‘(III) if the entity making the disclo-
sure elects, to disclose the annual percentage 
rate under subclause (I) and the simple in-
terest rate under subclause (II); 
‘‘(ii) if, at the time the petition is filed, the 
debt is an extension of credit other than under 
an open end credit plan, as the terms ‘credit’ 
and ‘open end credit plan’ are defined in section 
103 of the Truth in Lending Act, then—
‘‘(I) the annual percentage rate under 
section 128(a)(4) of the Truth in Lending 
Act, as disclosed to the debtor in the most 
recent disclosure statement given to the 
debtor prior to the entering into an agree-
ment of the kind specified in subsection (c) 
with respect to the debt, or, if no such dis-
closure statement was given to the debtor,
the annual percentage rate as it would have 
been so disclosed at the time the disclosure 
statement is given to the debtor, or to the 
extent this annual percentage rate is not 
readily available or not applicable, then 
‘‘(II) the simple interest rate applica-
ble to the amount reaffirmed as of the date 
the disclosure statement is given to the debt-
or, or if different simple interest rates apply 
to different balances, the simple interest rate 
applicable to each such balance, identifying 
the amount of such balance included in the 
amount reaffirmed, or 
‘‘(III) if the entity making the disclo-
sure elects, to disclose the annual percentage 
rate under (I) and the simple interest rate 
under (II). 
‘‘(F) If the underlying debt transaction was dis-
closed as a variable rate transaction on the most re-
cent disclosure given under the Truth in Lending Act, 
by stating ‘The interest rate on your loan may be a 
variable interest rate which changes from time to 
time, so that the annual percentage rate disclosed here 
may be higher or lower.’.
‘‘(G) If the debt is secured by a security interest 
which has not been waived in whole or in part or de-
termined to be void by a final order of the court at 
the time of the disclosure, by disclosing that a secu-
rity interest or lien in goods or property is asserted 
over some or all of the debts the debtor is reaffirming 
and listing the items and their original purchase 
price that are subject to the asserted security interest, 
or if not a purchase-money security interest then list-
ing by items or types and the original amount of the 
loan. 
‘‘(H) At the election of the creditor, a statement 
of the repayment schedule using 1 or a combination 
of the following—
‘‘(i) by making the statement: ‘Your first 
payment in the amount of $lll is due on 
lll but the future payment amount may be 
different. Consult your reaffirmation agreement 
or credit agreement, as applicable.’, and stating 
the amount of the first payment and the due 
date of that payment in the places provided; 
‘‘(ii) by making the statement: ‘Your pay-
ment schedule will be:’, and describing the repay-
ment schedule with the number, amount, and due 
dates or period of payments scheduled to repay
the debts reaffirmed to the extent then known by 
the disclosing party; or 
‘‘(iii) by describing the debtor’s repayment 
obligations with reasonable specificity to the ex-
tent then known by the disclosing party. 
‘‘(I) The following statement: ‘Note: When this 
disclosure refers to what a creditor ‘‘may’’ do, it does 
not use the word ‘‘may’’ to give the creditor specific 
permission. The word ‘‘may’’ is used to tell you what 
might occur if the law permits the creditor to take the 
action. If you have questions about your reaffirming 
a debt or what the law requires, consult with the at-
torney who helped you negotiate this agreement re-
affirming a debt. If you don’t have an attorney help-
ing you, the judge will explain the effect of your re-
affirming a debt when the hearing on the reaffirma-
tion agreement is held.’.
‘‘(J)(i) The following additional statements: 
‘‘ ‘Reaffirming a debt is a serious financial decision. 
The law requires you to take certain steps to make sure 
the decision is in your best interest. If these steps are not 
completed, the reaffirmation agreement is not effective, even 
though you have signed it. 
‘‘ ‘1. Read the disclosures in this Part A care-
fully. Consider the decision to reaffirm carefully.
Then, if you want to reaffirm, sign the reaffirmation 
agreement in Part B (or you may use a separate 
agreement you and your creditor agree on). 
‘‘ ‘2. Complete and sign Part D and be sure you 
can afford to make the payments you are agreeing to 
make and have received a copy of the disclosure state-
ment and a completed and signed reaffirmation 
agreement. 
‘‘ ‘3. If you were represented by an attorney dur-
ing the negotiation of your reaffirmation agreement, 
the attorney must have signed the certification in 
Part C. 
‘‘ ‘4. If you were not represented by an attorney 
during the negotiation of your reaffirmation agree-
ment, you must have completed and signed Part E. 
‘‘ ‘5. The original of this disclosure must be filed 
with the court by you or your creditor. If a separate 
reaffirmation agreement (other than the one in Part 
B) has been signed, it must be attached. 
‘‘ ‘6. If you were represented by an attorney dur-
ing the negotiation of your reaffirmation agreement, 
your reaffirmation agreement becomes effective upon 
filing with the court unless the reaffirmation is pre-
sumed to be an undue hardship as explained in Part 
D.
‘‘ ‘7. If you were not represented by an attorney 
during the negotiation of your reaffirmation agree-
ment, it will not be effective unless the court approves 
it. The court will notify you of the hearing on your 
reaffirmation agreement. You must attend this hear-
ing in bankruptcy court where the judge will review 
your reaffirmation agreement. The bankruptcy court 
must approve your reaffirmation agreement as con-
sistent with your best interests, except that no court 
approval is required if your reaffirmation agreement 
is for a consumer debt secured by a mortgage, deed 
of trust, security deed, or other lien on your real 
property, like your home. 
‘‘ ‘Your right to rescind (cancel) your reaffirmation 
agreement. You may rescind (cancel) your reaffirmation 
agreement at any time before the bankruptcy court enters 
a discharge order, or before the expiration of the 60-day 
period that begins on the date your reaffirmation agreement 
is filed with the court, whichever occurs later. To rescind 
(cancel) your reaffirmation agreement, you must notify the 
creditor that your reaffirmation agreement is rescinded (or 
canceled). 
‘‘ ‘What are your obligations if you reaffirm the debt? 
A reaffirmed debt remains your personal legal obligation. 
It is not discharged in your bankruptcy case. That means
that if you default on your reaffirmed debt after your bank-
ruptcy case is over, your creditor may be able to take your 
property or your wages. Otherwise, your obligations will 
be determined by the reaffirmation agreement which may 
have changed the terms of the original agreement. For ex-
ample, if you are reaffirming an open end credit agreement, 
the creditor may be permitted by that agreement or applica-
ble law to change the terms of that agreement in the future 
under certain conditions. 
‘‘ ‘Are you required to enter into a reaffirmation agree-
ment by any law? No, you are not required to reaffirm a 
debt by any law. Only agree to reaffirm a debt if it is in 
your best interest. Be sure you can afford the payments you 
agree to make. 
‘‘ ‘What if your creditor has a security interest or lien? 
Your bankruptcy discharge does not eliminate any lien on 
your property. A ‘‘lien’’ is often referred to as a security 
interest, deed of trust, mortgage or security deed. Even if 
you do not reaffirm and your personal liability on the debt 
is discharged, because of the lien your creditor may still 
have the right to take the security property if you do not 
pay the debt or default on it. If the lien is on an item of 
personal property that is exempt under your State’s law 
or that the trustee has abandoned, you may be able to re-
deem the item rather than reaffirm the debt. To redeem,
you make a single payment to the creditor equal to the cur-
rent value of the security property, as agreed by the parties 
or determined by the court.’. 
‘‘(ii) In the case of a reaffirmation under sub-
section (m)(2), numbered paragraph 6 in the disclo-
sures required by clause (i) of this subparagraph shall 
read as follows: 
‘‘ ‘6. If you were represented by an attorney dur-
ing the negotiation of your reaffirmation agreement, 
your reaffirmation agreement becomes effective upon 
filing with the court.’. 
‘‘(4) The form of such agreement required under this 
paragraph shall consist of the following: 
‘‘ ‘Part B: Reaffirmation Agreement. I (we) agree to 
reaffirm the debts arising under the credit agreement de-
scribed below. 
‘‘ ‘Brief description of credit agreement: 
‘‘ ‘Description of any changes to the credit agreement 
made as part of this reaffirmation agreement: 
‘‘ ‘Signature:
Date: 
‘‘ ‘Borrower: 
‘‘ ‘Co-borrower, if also reaffirming these debts: 
‘‘ ‘Accepted by creditor: 
‘‘ ‘Date of creditor acceptance:’. 
‘‘(5) The declaration shall consist of the following:
‘‘(A) The following certification: 
‘‘ ‘Part C: Certification by Debtor’s Attorney (If Any). 
‘‘ ‘I hereby certify that (1) this agreement represents 
a fully informed and voluntary agreement by the debtor; 
(2) this agreement does not impose an undue hardship on 
the debtor or any dependent of the debtor; and (3) I have 
fully advised the debtor of the legal effect and consequences 
of this agreement and any default under this agreement. 
‘‘ ‘Signature of Debtor’s Attorney:
Date:’. 
‘‘(B) If a presumption of undue hardship has 
been established with respect to such agreement, such 
certification shall state that in the opinion of the at-
torney, the debtor is able to make the payment. 
‘‘(C) In the case of a reaffirmation agreement under 
subsection (m)(2), subparagraph (B) is not applicable. 
‘‘(6)(A) The statement in support of such agreement, 
which the debtor shall sign and date prior to filing with 
the court, shall consist of the following: 
‘‘ ‘Part D: Debtor’s Statement in Support of Reaffir-
mation Agreement. 
‘‘ ‘1. I believe this reaffirmation agreement will not im-
pose an undue hardship on my dependents or me. I can 
afford to make the payments on the reaffirmed debt because 
my monthly income (take home pay plus any other income 
received) is $lll, and my actual current monthly ex-
penses including monthly payments on post-bankruptcy 
debt and other reaffirmation agreements total $lll, 
leaving $lll to make the required payments on this re-
affirmed debt. I understand that if my income less my 
monthly expenses does not leave enough to make the pay-
ments, this reaffirmation agreement is presumed to be an 
undue hardship on me and must be reviewed by the court. 
However, this presumption may be overcome if I explain 
to the satisfaction of the court how I can afford to make 
the payments here: lll. 
‘‘ ‘2. I received a copy of the Reaffirmation Disclosure 
Statement in Part A and a completed and signed reaffirma-
tion agreement.’. 
‘‘(B) Where the debtor is represented by an attorney 
and is reaffirming a debt owed to a creditor defined in sec-
tion 19(b)(1)(A)(iv) of the Federal Reserve Act, the state-
ment of support of the reaffirmation agreement, which the 
debtor shall sign and date prior to filing with the court, 
shall consist of the following: 
‘‘ ‘I believe this reaffirmation agreement is in my fi-
nancial interest. I can afford to make the payments on the 
reaffirmed debt. I received a copy of the Reaffirmation Dis-
closure Statement in Part A and a completed and signed 
reaffirmation agreement.’.
‘‘(7) The motion that may be used if approval of such 
agreement by the court is required in order for it to be effec-
tive, shall be signed and dated by the movant and shall 
consist of the following: 
‘‘ ‘Part E: Motion for Court Approval (To be completed 
only if the debtor is not represented by an attorney.). I (we), 
the debtor(s), affirm the following to be true and correct: 
‘‘ ‘I am not represented by an attorney in connection 
with this reaffirmation agreement. 
‘‘ ‘I believe this reaffirmation agreement is in my best 
interest based on the income and expenses I have disclosed 
in my Statement in Support of this reaffirmation agree-
ment, and because (provide any additional relevant reasons 
the court should consider): 
‘‘ ‘Therefore, I ask the court for an order approving this 
reaffirmation agreement.’.
‘‘(8) The court order, which may be used to approve 
such agreement, shall consist of the following: 
‘‘ ‘Court Order: The court grants the debtor’s motion 
and approves the reaffirmation agreement described above.’.
‘‘(l) Notwithstanding any other provision of this title 
the following shall apply: 
‘‘(1) A creditor may accept payments from a 
debtor before and after the filing of an agreement of 
the kind specified in subsection (c) with the court.
‘‘(2) A creditor may accept payments from a 
debtor under such agreement that the creditor believes 
in good faith to be effective. 
‘‘(3) The requirements of subsections (c)(2) and 
(k) shall be satisfied if disclosures required under 
those subsections are given in good faith. 
‘‘(m)(1) Until 60 days after an agreement of the kind 
specified in subsection (c) is filed with the court (or such 
additional period as the court, after notice and a hearing 
and for cause, orders before the expiration of such period), 
it shall be presumed that such agreement is an undue hard-
ship on the debtor if the debtor’s monthly income less the 
debtor’s monthly expenses as shown on the debtor’s com-
pleted and signed statement in support of such agreement 
required under subsection (k)(6)(A) is less than the sched-
uled payments on the reaffirmed debt. This presumption 
shall be reviewed by the court. The presumption may be 
rebutted in writing by the debtor if the statement includes 
an explanation that identifies additional sources of funds 
to make the payments as agreed upon under the terms of 
such agreement. If the presumption is not rebutted to the 
satisfaction of the court, the court may disapprove such 
agreement. No agreement shall be disapproved without no-
tice and a hearing to the debtor and creditor, and such
hearing shall be concluded before the entry of the debtor’s 
discharge. 
‘‘(2) This subsection does not apply to reaffirmation 
agreements where the creditor is a credit union, as defined 
in section 19(b)(1)(A)(iv) of the Federal Reserve Act.’’. 
(b) LAW ENFORCEMENT.—
(1) IN GENERAL.—Chapter 9 of title 18, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 158. Designation of United States attorneys and 
agents of the Federal Bureau of Investiga-
tion to address abusive reaffirmations of 
debt and materially fraudulent state-
ments in bankruptcy schedules 
‘‘(a) IN GENERAL.—The Attorney General of the 
United States shall designate the individuals described in 
subsection (b) to have primary responsibility in carrying 
out enforcement activities in addressing violations of sec-
tion 152 or 157 relating to abusive reaffirmations of debt. 
In addition to addressing the violations referred to in the 
preceding sentence, the individuals described under sub-
section (b) shall address violations of section 152 or 157 
relating to materially fraudulent statements in bankruptcy 
schedules that are intentionally false or intentionally mis-
leading.
‘‘(b) UNITED STATES ATTORNEYS AND AGENTS OF 
THE FEDERAL BUREAU OF INVESTIGATION.—The individ-
uals referred to in subsection (a) are—
‘‘(1) the United States attorney for each judicial 
district of the United States; and 
‘‘(2) an agent of the Federal Bureau of Inves-
tigation for each field office of the Federal Bureau of 
Investigation. 
‘‘(c) BANKRUPTCY
INVESTIGATIONS.—Each United 
States attorney designated under this section shall, in addi-
tion to any other responsibilities, have primary responsi-
bility for carrying out the duties of a United States attor-
ney under section 3057. 
‘‘(d) BANKRUPTCY PROCEDURES.—The bankruptcy 
courts shall establish procedures for referring any case that 
may contain a materially fraudulent statement in a bank-
ruptcy schedule to the individuals designated under this sec-
tion.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 9 of title 18, United States Code, is 
amended by adding at the end the following:
‘‘158. Designation of United States attorneys and agents of the Federal Bureau 
of Investigation to address abusive reaffirmations of debt and 
materially fraudulent statements in bankruptcy schedules.’’.
SEC. 204. PRESERVATION OF CLAIMS AND DEFENSES UPON 
SALE OF PREDATORY LOANS. 
Section 363 of title 11, United States Code, is amend-
ed—
(1) by redesignating subsection (o) as subsection 
(p), and 
(2) by inserting after subsection (n) the fol-
lowing: 
‘‘(o) Notwithstanding subsection (f), if a person pur-
chases any interest in a consumer credit transaction that 
is subject to the Truth in Lending Act or any interest in 
a consumer credit contract (as defined in section 433.1 of 
title 16 of the Code of Federal Regulations (January 1, 
2002), as amended from time to time), and if such interest 
is purchased through a sale under this section, then such 
person shall remain subject to all claims and defenses that 
are related to such consumer credit transaction or such con-
sumer credit contract, to the same extent as such person 
would be subject to such claims and defenses of the consumer 
had such interest been purchased at a sale not under this 
section.’’.
SEC. 205. GAO STUDY AND REPORT ON REAFFIRMATION 
AGREEMENT PROCESS. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of the reaffirmation agreement 
process that occurs under title 11 of the United States Code,
to determine the overall treatment of consumers within the 
context of such process, and shall include in such study con-
sideration of—
(1) the policies and activities of creditors with 
respect to reaffirmation agreements; and 
(2) whether consumers are fully, fairly, and con-
sistently informed of their rights pursuant to such 
title. 
(b) REPORT TO THE CONGRESS.—Not later than 18 
months after the date of the enactment of this Act, the 
Comptroller General shall submit to the President pro tem-
pore of the Senate and the Speaker of the House of Rep-
resentatives a report on the results of the study conducted 
under subsection (a), together with recommendations for 
legislation (if any) to address any abusive or coercive tac-
tics found in connection with the reaffirmation agreement 
process that occurs under title 11 of the United States Code.
Subtitle B—Priority Child Support 
SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGA-
TION. 
Section 101 of title 11, United States Code, is amend-
ed—
(1) by striking paragraph (12A); and 
(2) by inserting after paragraph (14) the fol-
lowing:
‘‘(14A) ‘domestic support obligation’ means a 
debt that accrues before or after the date of the order 
for relief in a case under this title, including interest 
that accrues on that debt as provided under applica-
ble nonbankruptcy law notwithstanding any other 
provision of this title, that is—
‘‘(A) owed to or recoverable by—
‘‘(i) a spouse, former spouse, or child of 
the debtor or such child’s parent, legal 
guardian, or responsible relative; or 
‘‘(ii) a governmental unit; 
‘‘(B) in the nature of alimony, mainte-
nance, or support (including assistance provided 
by a governmental unit) of such spouse, former 
spouse, or child of the debtor or such child’s par-
ent, without regard to whether such debt is ex-
pressly so designated; 
‘‘(C) established or subject to establishment 
before or after the date of the order for relief in 
a case under this title, by reason of applicable 
provisions of—
‘‘(i) a separation agreement, divorce 
decree, or property settlement agreement; 
‘‘(ii) an order of a court of record; or
‘‘(iii) a determination made in accord-
ance with applicable nonbankruptcy law by 
a governmental unit; and 
‘‘(D) not assigned to a nongovernmental en-
tity, unless that obligation is assigned volun-
tarily by the spouse, former spouse, child of the 
debtor, or such child’s parent, legal guardian, or 
responsible relative for the purpose of collecting 
the debt;’’.
SEC. 212. PRIORITIES FOR CLAIMS FOR DOMESTIC SUP-
PORT OBLIGATIONS. 
Section 507(a) of title 11, United States Code, is 
amended—
(1) by striking paragraph (7); 
(2) by redesignating paragraphs (1) through (6) 
as paragraphs (2) through (7), respectively; 
(3) in paragraph (2), as so redesignated, by 
striking ‘‘First’’ and inserting ‘‘Second’’;
(4) in paragraph (3), as so redesignated, by 
striking ‘‘Second’’ and inserting ‘‘Third’’; 
(5) in paragraph (4), as so redesignated—
(A) by striking ‘‘Third’’ and inserting 
‘‘Fourth’’; and 
(B) by striking the semicolon at the end and 
inserting a period;
port obligations that, as of the date of the filing 
of the petition, are assigned by a spouse, former 
spouse, child of the debtor, or such child’s parent, 
legal guardian, or responsible relative to a gov-
ernmental unit (unless such obligation is as-
signed voluntarily by the spouse, former spouse, 
child, parent, legal guardian, or responsible rel-
ative of the child for the purpose of collecting the 
debt) or are owed directly to or recoverable by a 
governmental unit under applicable nonbank-
ruptcy law, on the condition that funds received 
under this paragraph by a governmental unit 
under this title after the date of the filing of the 
petition be applied and distributed in accord-
ance with applicable nonbankruptcy law. 
‘‘(C) If a trustee is appointed or elected 
under section 701, 702, 703, 1104, 1202, or 
1302, the administrative expenses of the trustee 
allowed under paragraphs (1)(A), (2), and (6) of 
section 503(b) shall be paid before payment of 
claims under subparagraphs (A) and (B), to the 
extent that the trustee administers assets that are 
otherwise available for the payment of such 
claims.’’.
SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMATION AND 
DISCHARGE IN CASES INVOLVING DOMESTIC 
SUPPORT OBLIGATIONS. 
Title 11, United States Code, is amended—
(1) in section 1129(a), by adding at the end the 
following: 
‘‘(14) If the debtor is required by a judicial or 
administrative order, or by statute, to pay a domestic 
support obligation, the debtor has paid all amounts 
payable under such order or such statute for such ob-
ligation that first become payable after the date of the 
filing of the petition.’’; 
(2) in section 1208(c)—
(A) in paragraph (8), by striking ‘‘or’’ at 
the end; 
(B) in paragraph (9), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(10) failure of the debtor to pay any domestic 
support obligation that first becomes payable after the 
date of the filing of the petition.’’; 
(3) in section 1222(a)—
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3), by striking the period 
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following: 
‘‘(4) notwithstanding any other provision of this 
section, a plan may provide for less than full pay-
ment of all amounts owed for a claim entitled to pri-
ority under section 507(a)(1)(B) only if the plan pro-
vides that all of the debtor’s projected disposable in-
come for a 5-year period beginning on the date that 
the first payment is due under the plan will be ap-
plied to make payments under the plan.’’; 
(4) in section 1222(b)—
(A) by redesignating paragraph (11) as 
paragraph (12); and 
(B) by inserting after paragraph (10) the 
following: 
‘‘(11) provide for the payment of interest accru-
ing after the date of the filing of the petition on unse-
cured claims that are nondischargeable under section 
1228(a), except that such interest may be paid only 
to the extent that the debtor has disposable income 
available to pay such interest after making provision 
for full payment of all allowed claims;’’; 
(5) in section 1225(a)—
(A) in paragraph (5), by striking ‘‘and’’ at 
the end;
(B) in paragraph (6), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(7) the debtor has paid all amounts that are re-
quired to be paid under a domestic support obligation 
and that first become payable after the date of the fil-
ing of the petition if the debtor is required by a judi-
cial or administrative order, or by statute, to pay 
such domestic support obligation.’’; 
(6) in section 1228(a), in the matter preceding 
paragraph (1), by inserting ‘‘, and in the case of a 
debtor who is required by a judicial or administrative 
order, or by statute, to pay a domestic support obliga-
tion, after such debtor certifies that all amounts pay-
able under such order or such statute that are due on 
or before the date of the certification (including 
amounts due before the petition was filed, but only to 
the extent provided for by the plan) have been paid’’ 
after ‘‘completion by the debtor of all payments under 
the plan’’; 
(7) in section 1307(c)—
(A) in paragraph (9), by striking ‘‘or’’ at 
the end; 
(B) in paragraph (10), by striking the pe-
riod at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following: 
‘‘(11) failure of the debtor to pay any domestic 
support obligation that first becomes payable after the 
date of the filing of the petition.’’; 
(8) in section 1322(a)—
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) notwithstanding any other provision of this 
section, a plan may provide for less than full pay-
ment of all amounts owed for a claim entitled to pri-
ority under section 507(a)(1)(B) only if the plan pro-
vides that all of the debtor’s projected disposable in-
come for a 5-year period beginning on the date that 
the first payment is due under the plan will be ap-
plied to make payments under the plan.’’;
(9) in section 1322(b)—
(A) in paragraph (9), by striking ‘‘; and’’ 
and inserting a semicolon; 
(B) by redesignating paragraph (10) as 
paragraph (11); and 
(C) inserting after paragraph (9) the fol-
lowing:
‘‘(10) provide for the payment of interest accru-
ing after the date of the filing of the petition on unse-
cured claims that are nondischargeable under section 
1328(a), except that such interest may be paid only 
to the extent that the debtor has disposable income 
available to pay such interest after making provision 
for full payment of all allowed claims; and’’; 
(10) in section 1325(a), as amended by section 
102, by inserting after paragraph (7) the following: 
‘‘(8) the debtor has paid all amounts that are re-
quired to be paid under a domestic support obligation 
and that first become payable after the date of the fil-
ing of the petition if the debtor is required by a judi-
cial or administrative order, or by statute, to pay 
such domestic support obligation; and’’; 
(11) in section 1328(a), in the matter preceding 
paragraph (1), by inserting ‘‘, and in the case of a 
debtor who is required by a judicial or administrative 
order, or by statute, to pay a domestic support obliga-
tion, after such debtor certifies that all amounts pay-
able under such order or such statute that are due on 
or before the date of the certification (including 
amounts due before the petition was filed, but only to 
the extent provided for by the plan) have been paid’’
after ‘‘completion by the debtor of all payments under 
the plan’’. 
SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC 
SUPPORT OBLIGATION PROCEEDINGS. 
Section 362(b) of title 11, United States Code, is 
amended by striking paragraph (2) and inserting the fol-
lowing: 
‘‘(2) under subsection (a)—
‘‘(A) of the commencement or continuation 
of a civil action or proceeding—
‘‘(i) for the establishment of paternity; 
‘‘(ii) for the establishment or modifica-
tion of an order for domestic support obli-
gations; 
‘‘(iii) concerning child custody or visi-
tation; 
‘‘(iv) for the dissolution of a marriage, 
except to the extent that such proceeding 
seeks to determine the division of property 
that is property of the estate; or 
‘‘(v) regarding domestic violence; 
‘‘(B) of the collection of a domestic support 
obligation from property that is not property of 
the estate;
‘‘(C) with respect to the withholding of in-
come that is property of the estate or property of 
the debtor for payment of a domestic support ob-
ligation under a judicial or administrative order 
or a statute; 
‘‘(D) of the withholding, suspension, or re-
striction of a driver’s license, a professional or 
occupational license, or a recreational license, 
under State law, as specified in section 
466(a)(16) of the Social Security Act; 
‘‘(E) of the reporting of overdue support 
owed by a parent to any consumer reporting 
agency as specified in section 466(a)(7) of the 
Social Security Act; 
‘‘(F) of the interception of a tax refund, as 
specified in sections 464 and 466(a)(3) of the So-
cial Security Act or under an analogous State 
law; or 
‘‘(G) of the enforcement of a medical obliga-
tion, as specified under title IV of the Social Se-
curity Act;’’. 
SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR 
ALIMONY, MAINTENANCE, AND SUPPORT. 
Section 523 of title 11, United States Code, is amend-
ed—
(1) in subsection (a)—
(A) by striking paragraph (5) and inserting 
the following: 
‘‘(5) for a domestic support obligation;’’; and 
(B) by striking paragraph (18); 
(2) in subsection (c), by striking ‘‘(6), or (15)’’ 
each place it appears and inserting ‘‘or (6)’’; and 
(3) in paragraph (15), as added by Public Law 
103–394 (108 Stat. 4133)—
(A) by inserting ‘‘to a spouse, former 
spouse, or child of the debtor and’’ before ‘‘not of 
the kind’’; 
(B) by inserting ‘‘or’’ after ‘‘court of 
record,’’; and 
(C) by striking ‘‘unless—’’ and all that fol-
lows through the end of the paragraph and in-
serting a semicolon. 
SEC. 216. CONTINUED LIABILITY OF PROPERTY. 
Section 522 of title 11, United States Code, is amend-
ed—
(1) in subsection (c), by striking paragraph (1) 
and inserting the following: 
‘‘(1) a debt of a kind specified in paragraph (1) 
or (5) of section 523(a) (in which case, notwith-
standing any provision of applicable nonbankruptcy
law to the contrary, such property shall be liable for 
a debt of a kind specified in section 523(a)(5));’’; 
(2) in subsection (f)(1)(A), by striking the dash 
and all that follows through the end of the subpara-
graph and inserting ‘‘of a kind that is specified in 
section 523(a)(5); or’’; and 
(3) in subsection (g)(2), by striking ‘‘subsection 
(f)(2)’’ and inserting ‘‘subsection (f)(1)(B)’’. 
SEC. 217. PROTECTION OF DOMESTIC SUPPORT CLAIMS 
AGAINST 
PREFERENTIAL 
TRANSFER 
MO-
TIONS. 
Section 547(c)(7) of title 11, United States Code, is 
amended to read as follows: 
‘‘(7) to the extent such transfer was a bona fide 
payment of a debt for a domestic support obliga-
tion;’’. 
SEC. 218. DISPOSABLE INCOME DEFINED. 
Section 1225(b)(2)(A) of title 11, United States Code, 
is amended by inserting ‘‘or for a domestic support obliga-
tion that first becomes payable after the date of the filing 
of the petition’’ after ‘‘dependent of the debtor’’.
SEC. 219. COLLECTION OF CHILD SUPPORT. 
(a) DUTIES OF TRUSTEE UNDER CHAPTER 7.—Sec-
tion 704 of title 11, United States Code, as amended by 
section 102, is amended—
(1) in subsection (a)—
(A) in paragraph (8), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (9), by striking the period 
and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(10) if with respect to the debtor there is a 
claim for a domestic support obligation, provide the 
applicable notice specified in subsection (c); and’’; 
and 
(2) by adding at the end the following: 
‘‘(c)(1) In a case described in subsection (a)(10) to 
which subsection (a)(10) applies, the trustee shall—
‘‘(A)(i) provide written notice to the holder of the 
claim described in subsection (a)(10) of such claim 
and of the right of such holder to use the services of 
the State child support enforcement agency established 
under sections 464 and 466 of the Social Security Act 
for the State in which such holder resides, for assist-
ance in collecting child support during and after the 
case under this title; 
‘‘(ii) include in the notice provided under clause 
(i) the address and telephone number of such State 
child support enforcement agency; and
‘‘(iii) include in the notice provided under clause 
(i) an explanation of the rights of such holder to pay-
ment of such claim under this chapter; 
‘‘(B)(i) provide written notice to such State child 
support enforcement agency of such claim; and 
‘‘(ii) include in the notice provided under clause 
(i) the name, address, and telephone number of such 
holder; and 
‘‘(C) at such time as the debtor is granted a dis-
charge under section 727, provide written notice to 
such holder and to such State child support enforce-
ment agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(iv) the name of each creditor that holds a 
claim that—
‘‘(I) is not discharged under paragraph 
(2), (4), or (14A) of section 523(a); or 
‘‘(II) was reaffirmed by the debtor 
under section 524(c). 
‘‘(2)(A) The holder of a claim described in subsection 
(a)(10) or the State child support enforcement agency of
the State in which such holder resides may request from 
a creditor described in paragraph (1)(C)(iv) the last known 
address of the debtor. 
‘‘(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address 
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable by reason of making such 
disclosure.’’. 
(b) DUTIES OF TRUSTEE UNDER CHAPTER 11.—Sec-
tion 1106 of title 11, United States Code, is amended—
(1) in subsection (a)—
(A) in paragraph (6), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (7), by striking the period 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(8) if with respect to the debtor there is a claim 
for a domestic support obligation, provide the appli-
cable notice specified in subsection (c).’’; and 
(2) by adding at the end the following: 
‘‘(c)(1) In a case described in subsection (a)(8) to 
which subsection (a)(8) applies, the trustee shall—
‘‘(A)(i) provide written notice to the holder of the 
claim described in subsection (a)(8) of such claim and 
of the right of such holder to use the services of the
State child support enforcement agency established 
under sections 464 and 466 of the Social Security Act 
for the State in which such holder resides, for assist-
ance in collecting child support during and after the 
case under this title; and 
‘‘(ii) include in the notice required by clause (i) 
the address and telephone number of such State child 
support enforcement agency; 
‘‘(B)(i) provide written notice to such State child 
support enforcement agency of such claim; and 
‘‘(ii) include in the notice required by clause (i) 
the name, address, and telephone number of such 
holder; and 
‘‘(C) at such time as the debtor is granted a dis-
charge under section 1141, provide written notice to 
such holder and to such State child support enforce-
ment agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and 
‘‘(iv) the name of each creditor that holds a 
claim that—
‘‘(I) is not discharged under paragraph 
(2), (4), or (14A) of section 523(a); or 
‘‘(II) was reaffirmed by the debtor 
under section 524(c). 
‘‘(2)(A) The holder of a claim described in subsection 
(a)(8) or the State child enforcement support agency of the 
State in which such holder resides may request from a cred-
itor described in paragraph (1)(C)(iv) the last known ad-
dress of the debtor. 
‘‘(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address 
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable by reason of making such 
disclosure.’’. 
(c) DUTIES OF TRUSTEE UNDER CHAPTER 12.—Sec-
tion 1202 of title 11, United States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (5), by striking the period 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(6) if with respect to the debtor there is a claim 
for a domestic support obligation, provide the appli-
cable notice specified in subsection (c).’’; and
(2) by adding at the end the following: 
‘‘(c)(1) In a case described in subsection (b)(6) to 
which subsection (b)(6) applies, the trustee shall—
‘‘(A)(i) provide written notice to the holder of the 
claim described in subsection (b)(6) of such claim and 
of the right of such holder to use the services of the 
State child support enforcement agency established 
under sections 464 and 466 of the Social Security Act 
for the State in which such holder resides, for assist-
ance in collecting child support during and after the 
case under this title; and 
‘‘(ii) include in the notice provided under clause 
(i) the address and telephone number of such State 
child support enforcement agency; 
‘‘(B)(i) provide written notice to such State child 
support enforcement agency of such claim; and 
‘‘(ii) include in the notice provided under clause 
(i) the name, address, and telephone number of such 
holder; and 
‘‘(C) at such time as the debtor is granted a dis-
charge under section 1228, provide written notice to 
such holder and to such State child support enforce-
ment agency of—
‘‘(i) the granting of the discharge;
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and 
‘‘(iv) the name of each creditor that holds a 
claim that—
‘‘(I) is not discharged under paragraph 
(2), (4), or (14A) of section 523(a); or 
‘‘(II) was reaffirmed by the debtor 
under section 524(c). 
‘‘(2)(A) The holder of a claim described in subsection 
(b)(6) or the State child support enforcement agency of the 
State in which such holder resides may request from a cred-
itor described in paragraph (1)(C)(iv) the last known ad-
dress of the debtor. 
‘‘(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address 
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable by reason of making that 
disclosure.’’. 
(d) DUTIES OF TRUSTEE UNDER CHAPTER 13.—Sec-
tion 1302 of title 11, United States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at 
the end;
(B) in paragraph (5), by striking the period 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(6) if with respect to the debtor there is a claim 
for a domestic support obligation, provide the appli-
cable notice specified in subsection (d).’’; and 
(2) by adding at the end the following: 
‘‘(d)(1) In a case described in subsection (b)(6) to 
which subsection (b)(6) applies, the trustee shall—
‘‘(A)(i) provide written notice to the holder of the 
claim described in subsection (b)(6) of such claim and 
of the right of such holder to use the services of the 
State child support enforcement agency established 
under sections 464 and 466 of the Social Security Act 
for the State in which such holder resides, for assist-
ance in collecting child support during and after the 
case under this title; and 
‘‘(ii) include in the notice provided under clause 
(i) the address and telephone number of such State 
child support enforcement agency; 
‘‘(B)(i) provide written notice to such State child 
support enforcement agency of such claim; and 
‘‘(ii) include in the notice provided under clause 
(i) the name, address, and telephone number of such 
holder; and
‘‘(C) at such time as the debtor is granted a dis-
charge under section 1328, provide written notice to 
such holder and to such State child support enforce-
ment agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(iv) the name of each creditor that holds a 
claim that—
‘‘(I) is not discharged under paragraph 
(2) or (4) of section 523(a); or 
‘‘(II) was reaffirmed by the debtor 
under section 524(c). 
‘‘(2)(A) The holder of a claim described in subsection 
(b)(6) or the State child support enforcement agency of the 
State in which such holder resides may request from a cred-
itor described in paragraph (1)(C)(iv) the last known ad-
dress of the debtor. 
‘‘(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address 
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable by reason of making that 
disclosure.’’.
SEC. 
220. 
NONDISCHARGEABILITY 
OF 
CERTAIN 
EDU-
CATIONAL BENEFITS AND LOANS. 
Section 523(a) of title 11, United States Code, is 
amended by striking paragraph (8) and inserting the fol-
lowing: 
‘‘(8) unless excepting such debt from discharge 
under this paragraph would impose an undue hard-
ship on the debtor and the debtor’s dependents, for—
‘‘(A)(i) an educational benefit overpayment 
or loan made, insured, or guaranteed by a gov-
ernmental unit, or made under any program 
funded in whole or in part by a governmental 
unit or nonprofit institution; or 
‘‘(ii) an obligation to repay funds received 
as an educational benefit, scholarship, or sti-
pend; or 
‘‘(B) any other educational loan that is a 
qualified education loan, as defined in section 
221(d)(1) of the Internal Revenue Code of 1986, 
incurred by a debtor who is an individual;’’. 
Subtitle C—Other Consumer 
Protections 
SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANK-
RUPTCY FILINGS. 
Section 110 of title 11, United States Code, is amend-
ed—
(1) in subsection (a)(1), by striking ‘‘or an em-
ployee of an attorney’’ and inserting ‘‘for the debtor 
or an employee of such attorney under the direct su-
pervision of such attorney’’; 
(2) in subsection (b)—
(A) in paragraph (1), by adding at the end 
the following: ‘‘If a bankruptcy petition preparer 
is not an individual, then an officer, principal, 
responsible person, or partner of the bankruptcy 
petition preparer shall be required to—
‘‘(A) sign the document for filing; and 
‘‘(B) print on the document the name and ad-
dress of that officer, principal, responsible person, or 
partner.’’; and 
(B) by striking paragraph (2) and inserting 
the following: 
‘‘(2)(A) Before preparing any document for filing or 
accepting any fees from a debtor, the bankruptcy petition 
preparer shall provide to the debtor a written notice which 
shall be on an official form prescribed by the Judicial Con-
ference of the United States in accordance with rule 9009 
of the Federal Rules of Bankruptcy Procedure. 
‘‘(B) The notice under subparagraph (A)—
‘‘(i) shall inform the debtor in simple language 
that a bankruptcy petition preparer is not an attor-
ney and may not practice law or give legal advice; 
‘‘(ii) may contain a description of examples of 
legal advice that a bankruptcy petition preparer is 
not authorized to give, in addition to any advice that 
the preparer may not give by reason of subsection 
(e)(2); and
‘‘(iii) shall—
‘‘(I) be signed by the debtor and, under pen-
alty of perjury, by the bankruptcy petition pre-
parer; and 
‘‘(II) be filed with any document for fil-
ing.’’; 
(3) in subsection (c)—
(A) in paragraph (2)—
(i) by striking ‘‘(2) For purposes’’ and 
inserting ‘‘(2)(A) Subject to subparagraph 
(B), for purposes’’; and 
(ii) by adding at the end the following: 
‘‘(B) If a bankruptcy petition preparer is not an indi-
vidual, the identifying number of the bankruptcy petition 
preparer shall be the Social Security account number of the 
officer, principal, responsible person, or partner of the 
bankruptcy petition preparer.’’; and
(B) by striking paragraph (3); 
(4) in subsection (d)—
(A) by striking ‘‘(d)(1)’’ and inserting 
‘‘(d)’’; and 
(B) by striking paragraph (2); 
(5) in subsection (e)—
(A) by striking paragraph (2); and 
(B) by adding at the end the following: 
‘‘(2)(A) A bankruptcy petition preparer may not offer 
a potential bankruptcy debtor any legal advice, including 
any legal advice described in subparagraph (B). 
‘‘(B) The legal advice referred to in subparagraph (A) 
includes advising the debtor—
‘‘(i) whether—
‘‘(I) to file a petition under this title; or 
‘‘(II) commencing a case under chapter 7, 
11, 12, or 13 is appropriate; 
‘‘(ii) whether the debtor’s debts will be discharged 
in a case under this title; 
‘‘(iii) whether the debtor will be able to retain 
the debtor’s home, car, or other property after com-
mencing a case under this title; 
‘‘(iv) concerning—
‘‘(I) the tax consequences of a case brought 
under this title; or
‘‘(II) the dischargeability of tax claims; 
‘‘(v) whether the debtor may or should promise 
to repay debts to a creditor or enter into a reaffirma-
tion agreement with a creditor to reaffirm a debt; 
‘‘(vi) concerning how to characterize the nature 
of the debtor’s interests in property or the debtor’s 
debts; or 
‘‘(vii) concerning bankruptcy procedures and 
rights.’’; 
(6) in subsection (f)—
(A) by striking ‘‘(f)(1)’’ and inserting ‘‘(f)’’; 
and 
(B) by striking paragraph (2); 
(7) in subsection (g)—
(A) by striking ‘‘(g)(1)’’ and inserting 
‘‘(g)’’; and 
(B) by striking paragraph (2); 
(8) in subsection (h)—
(A) 
by 
redesignating 
paragraphs 
(1) 
through (4) as paragraphs (2) through (5), re-
spectively; 
(B) by inserting before paragraph (2), as so 
redesignated, the following: 
‘‘(1) The Supreme Court may promulgate rules under 
section 2075 of title 28, or the Judicial Conference of the
United States may prescribe guidelines, for setting a max-
imum allowable fee chargeable by a bankruptcy petition 
preparer. A bankruptcy petition preparer shall notify the 
debtor of any such maximum amount before preparing any 
document for filing for a debtor or accepting any fee from 
the debtor.’’; 
(C) in paragraph (2), as so redesignated— 
(i) by striking ‘‘Within 10 days after 
the date of the filing of a petition, a bank-
ruptcy petition preparer shall file a’’ and 
inserting ‘‘A’’; 
(ii) by inserting ‘‘by the bankruptcy 
petition preparer shall be filed together with 
the petition,’’ after ‘‘perjury’’; and 
(iii) by adding at the end the fol-
lowing: ‘‘If rules or guidelines setting a 
maximum fee for services have been promul-
gated or prescribed under paragraph (1), 
the declaration under this paragraph shall 
include a certification that the bankruptcy 
petition preparer complied with the notifi-
cation requirement under paragraph (1).’’; 
(D) by striking paragraph (3), as so redes-
ignated, and inserting the following:
‘‘(3)(A) The court shall disallow and order the imme-
diate turnover to the bankruptcy trustee any fee referred 
to in paragraph (2) found to be in excess of the value of 
any services—
‘‘(i) rendered by the bankruptcy petition pre-
parer during the 12-month period immediately pre-
ceding the date of the filing of the petition; or 
‘‘(ii) found to be in violation of any rule or 
guideline promulgated or prescribed under paragraph 
(1). 
‘‘(B) All fees charged by a bankruptcy petition pre-
parer may be forfeited in any case in which the bankruptcy 
petition preparer fails to comply with this subsection or 
subsection (b), (c), (d), (e), (f), or (g). 
‘‘(C) An individual may exempt any funds recovered 
under this paragraph under section 522(b).’’; and 
(E) in paragraph (4), as so redesignated, by 
striking ‘‘or the United States trustee’’ and in-
serting ‘‘the United States trustee (or the bank-
ruptcy administrator, if any) or the court, on 
the initiative of the court,’’; 
(9) in subsection (i)(1), by striking the matter 
preceding subparagraph (A) and inserting the fol-
lowing:
‘‘(i)(1) If a bankruptcy petition preparer violates this 
section or commits any act that the court finds to be fraudu-
lent, unfair, or deceptive, on the motion of the debtor, trust-
ee, United States trustee (or the bankruptcy administrator, 
if any), and after notice and a hearing, the court shall order 
the bankruptcy petition preparer to pay to the debtor—’’; 
(10) in subsection (j)—
(A) in paragraph (2)—
(i) in subparagraph (A)(i)(I), by strik-
ing ‘‘a violation of which subjects a person 
to criminal penalty’’; 
(ii) in subparagraph (B)—
(I) by striking ‘‘or has not paid a 
penalty’’ and inserting ‘‘has not paid 
a penalty’’; and 
(II) by inserting ‘‘or failed to dis-
gorge all fees ordered by the court’’ 
after ‘‘a penalty imposed under this 
section,’’; 
(B) by redesignating paragraph (3) as 
paragraph (4); and 
(C) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) The court, as part of its contempt power, may 
enjoin a bankruptcy petition preparer that has failed to
comply with a previous order issued under this section. The 
injunction under this paragraph may be issued on the mo-
tion of the court, the trustee, or the United States trustee 
(or the bankruptcy administrator, if any).’’; and 
(11) by adding at the end the following: 
‘‘(l)(1) A bankruptcy petition preparer who fails to 
comply with any provision of subsection (b), (c), (d), (e), 
(f), (g), or (h) may be fined not more than $500 for each 
such failure. 
‘‘(2) The court shall triple the amount of a fine as-
sessed under paragraph (1) in any case in which the court 
finds that a bankruptcy petition preparer—
‘‘(A) advised the debtor to exclude assets or in-
come that should have been included on applicable 
schedules; 
‘‘(B) advised the debtor to use a false Social Se-
curity account number; 
‘‘(C) failed to inform the debtor that the debtor 
was filing for relief under this title; or 
‘‘(D) prepared a document for filing in a man-
ner that failed to disclose the identity of the bank-
ruptcy petition preparer. 
‘‘(3) A debtor, trustee, creditor, or United States trust-
ee (or the bankruptcy administrator, if any) may file a mo-
tion for an order imposing a fine on the bankruptcy peti-
tion preparer for any violation of this section. 
‘‘(4)(A) Fines imposed under this subsection in judi-
cial districts served by United States trustees shall be paid 
to the United States trustee, who shall deposit an amount 
equal to such fines in a special account of the United States 
Trustee System Fund referred to in section 586(e)(2) of title 
28. Amounts deposited under this subparagraph shall be 
available to fund the enforcement of this section on a na-
tional basis. 
‘‘(B) Fines imposed under this subsection in judicial 
districts served by bankruptcy administrators shall be de-
posited as offsetting receipts to the fund established under 
section 1931 of title 28, and shall remain available until 
expended to reimburse any appropriation for the amount 
paid out of such appropriation for expenses of the operation 
and maintenance of the courts of the United States.’’. 
SEC. 222. SENSE OF CONGRESS. 
It is the sense of Congress that States should develop 
curricula relating to the subject of personal finance, de-
signed for use in elementary and secondary schools.
SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED 
STATES CODE. 
Section 507(a) of title 11, United States Code, as 
amended by section 212, is amended by inserting after 
paragraph (9) the following: 
‘‘(10) Tenth, allowed claims for death or per-
sonal injury resulting from the operation of a motor 
vehicle or vessel if such operation was unlawful be-
cause the debtor was intoxicated from using alcohol, 
a drug, or another substance.’’. 
SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANK-
RUPTCY. 
(a) IN GENERAL.—Section 522 of title 11, United 
States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (2)—
(i) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; and’’; 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) retirement funds to the extent that those 
funds are in a fund or account that is exempt from 
taxation under section 401, 403, 408, 408A, 414, 457, 
or 501(a) of the Internal Revenue Code of 1986.’’; and
100
(iv) by striking ‘‘(2)(A) any property’’ 
and inserting: 
‘‘(3) Property listed in this paragraph is—
‘‘(A) any property’’;
(B) by striking paragraph (1) and insert-
ing: 
‘‘(2) Property listed in this paragraph is property that 
is specified under subsection (d), unless the State law that 
is applicable to the debtor under paragraph (3)(A) specifi-
cally does not so authorize.’’; 
(C) by striking ‘‘(b) Notwithstanding’’ and 
inserting ‘‘(b)(1) Notwithstanding’’; 
(D) by striking ‘‘paragraph (2)’’ each place 
it appears and inserting ‘‘paragraph (3)’’; 
(E) by striking ‘‘paragraph (1)’’ each place 
it appears and inserting ‘‘paragraph (2)’’; 
(F) by striking ‘‘Such property is—’’; and 
(G) by adding at the end the following: 
‘‘(4) For purposes of paragraph (3)(C) and subsection 
(d)(12), the following shall apply: 
‘‘(A) If the retirement funds are in a retirement 
fund that has received a favorable determination 
under section 7805 of the Internal Revenue Code of 
1986, and that determination is in effect as of the 
date of the filing of the petition in a case under this
101
title, those funds shall be presumed to be exempt from 
the estate. 
‘‘(B) If the retirement funds are in a retirement 
fund that has not received a favorable determination 
under such section 7805, those funds are exempt from 
the estate if the debtor demonstrates that—
‘‘(i) no prior determination to the contrary 
has been made by a court or the Internal Rev-
enue Service; and 
‘‘(ii)(I) the retirement fund is in substan-
tial compliance with the applicable requirements 
of the Internal Revenue Code of 1986; or 
‘‘(II) the retirement fund fails to be in sub-
stantial compliance with the applicable require-
ments of the Internal Revenue Code of 1986 and 
the debtor is not materially responsible for that 
failure. 
‘‘(C) A direct transfer of retirement funds from 
1 fund or account that is exempt from taxation under 
section 401, 403, 408, 408A, 414, 457, or 501(a) of 
the Internal Revenue Code of 1986, under section 
401(a)(31) of the Internal Revenue Code of 1986, or 
otherwise, shall not cease to qualify for exemption 
under paragraph (3)(C) or subsection (d)(12) by rea-
son of such direct transfer.
102
‘‘(D)(i) Any distribution that qualifies as an eli-
gible rollover distribution within the meaning of sec-
tion 402(c) of the Internal Revenue Code of 1986 or 
that is described in clause (ii) shall not cease to qual-
ify for exemption under paragraph (3)(C) or sub-
section (d)(12) by reason of such distribution. 
‘‘(ii) A distribution described in this clause is an 
amount that—
‘‘(I) has been distributed from a fund or ac-
count that is exempt from taxation under section 
401, 403, 408, 408A, 414, 457, or 501(a) of the 
Internal Revenue Code of 1986; and 
‘‘(II) to the extent allowed by law, is depos-
ited in such a fund or account not later than 60 
days after the distribution of such amount.’’; and 
(2) in subsection (d)—
(A) in the matter preceding paragraph (1), 
by striking ‘‘subsection (b)(1)’’ and inserting 
‘‘subsection (b)(2)’’; and 
(B) by adding at the end the following: 
‘‘(12) Retirement funds to the extent that those 
funds are in a fund or account that is exempt from 
taxation under section 401, 403, 408, 408A, 414, 457, 
or 501(a) of the Internal Revenue Code of 1986.’’.
103
(b) AUTOMATIC STAY.—Section 362(b) of title 11, 
United States Code, is amended—
(1) in paragraph (17), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (18), by striking the period 
and inserting a semicolon; and 
(3) by inserting after paragraph (18) the fol-
lowing: 
‘‘(19) under subsection (a), of withholding of in-
come from a debtor’s wages and collection of amounts 
withheld, under the debtor’s agreement authorizing 
that withholding and collection for the benefit of a 
pension, profit-sharing, stock bonus, or other plan es-
tablished under section 401, 403, 408, 408A, 414, 457, 
or 501(c) of the Internal Revenue Code of 1986, that 
is sponsored by the employer of the debtor, or an affil-
iate, successor, or predecessor of such employer—
‘‘(A) to the extent that the amounts withheld 
and collected are used solely for payments relat-
ing to a loan from a plan under section 
408(b)(1) of the Employee Retirement Income 
Security Act of 1974 or is subject to section 
72(p) of the Internal Revenue Code of 1986; or 
‘‘(B) a loan from a thrift savings plan per-
mitted under subchapter III of chapter 84 of title
104
5, that satisfies the requirements of section 
8433(g) of such title; 
but nothing in this paragraph may be construed to 
provide that any loan made under a governmental 
plan under section 414(d), or a contract or account 
under section 403(b), of the Internal Revenue Code of 
1986 constitutes a claim or a debt under this title;’’. 
(c) EXCEPTIONS TO DISCHARGE.—Section 523(a) of 
title 11, United States Code, as amended by section 215, 
is amended by inserting after paragraph (17) the following: 
‘‘(18) owed to a pension, profit-sharing, stock 
bonus, or other plan established under section 401, 
403, 408, 408A, 414, 457, or 501(c) of the Internal 
Revenue Code of 1986, under—
‘‘(A) a loan permitted under section 
408(b)(1) of the Employee Retirement Income 
Security Act of 1974, or subject to section 72(p) 
of the Internal Revenue Code of 1986; or 
‘‘(B) a loan from a thrift savings plan per-
mitted under subchapter III of chapter 84 of title 
5, that satisfies the requirements of section 
8433(g) of such title; 
but nothing in this paragraph may be construed to 
provide that any loan made under a governmental 
plan under section 414(d), or a contract or account
105
under section 403(b), of the Internal Revenue Code of 
1986 constitutes a claim or a debt under this title; 
or’’. 
(d) PLAN CONTENTS.—Section 1322 of title 11, United 
States Code, is amended by adding at the end the following: 
‘‘(f) A plan may not materially alter the terms of a 
loan described in section 362(b)(19) and any amounts re-
quired to repay such loan shall not constitute ‘disposable 
income’ under section 1325.’’. 
(e) ASSET LIMITATION.—
(1) LIMITATION.—Section 522 of title 11, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(n) For assets in individual retirement accounts de-
scribed in section 408 or 408A of the Internal Revenue Code 
of 1986, other than a simplified employee pension under 
section 408(k) of such Code or a simple retirement account 
under section 408(p) of such Code, the aggregate value of 
such assets exempted under this section, without regard to 
amounts attributable to rollover contributions under section 
402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8) of the 
Internal Revenue Code of 1986, and earnings thereon, shall 
not exceed $1,000,000 in a case filed by a debtor who is 
an individual, except that such amount may be increased 
if the interests of justice so require.’’.
106
(2) ADJUSTMENT OF DOLLAR AMOUNTS.—Para-
graphs (1) and (2) of section 104(b) of title 11, 
United States Code, are amended by inserting 
‘‘522(n),’’ after ‘‘522(d),’’. 
SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANK-
RUPTCY. 
(a) EXCLUSIONS.—Section 541 of title 11, United 
States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘or’’ at 
the end; 
(B) by redesignating paragraph (5) as 
paragraph (9); and 
(C) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) funds placed in an education individual re-
tirement account (as defined in section 530(b)(1) of 
the Internal Revenue Code of 1986) not later than 
365 days before the date of the filing of the petition 
in a case under this title, but—
‘‘(A) only if the designated beneficiary of 
such account was a child, stepchild, grandchild, 
or stepgrandchild of the debtor for the taxable 
year for which funds were placed in such ac-
count;
107
‘‘(B) only to the extent that such funds—
‘‘(i) are not pledged or promised to 
any entity in connection with any extension 
of credit; and 
‘‘(ii) are not excess contributions (as 
described in section 4973(e) of the Internal 
Revenue Code of 1986); and 
‘‘(C) in the case of funds placed in all such 
accounts having the same designated beneficiary 
not earlier than 720 days nor later than 365 
days before such date, only so much of such 
funds as does not exceed $5,000; 
‘‘(6) funds used to purchase a tuition credit or 
certificate or contributed to an account in accordance 
with section 529(b)(1)(A) of the Internal Revenue 
Code of 1986 under a qualified State tuition program 
(as defined in section 529(b)(1) of such Code) not 
later than 365 days before the date of the filing of the 
petition in a case under this title, but—
‘‘(A) only if the designated beneficiary of 
the amounts paid or contributed to such tuition 
program was a child, stepchild, grandchild, or 
stepgrandchild of the debtor for the taxable year 
for which funds were paid or contributed;
108
‘‘(B) with respect to the aggregate amount 
paid or contributed to such program having the 
same designated beneficiary, only so much of 
such amount as does not exceed the total con-
tributions permitted under section 529(b)(7) of 
such Code with respect to such beneficiary, as 
adjusted beginning on the date of the filing of the 
petition in a case under this title by the annual 
increase or decrease (rounded to the nearest tenth 
of 1 percent) in the education expenditure cat-
egory of the Consumer Price Index prepared by 
the Department of Labor; and 
‘‘(C) in the case of funds paid or contrib-
uted to such program having the same designated 
beneficiary not earlier than 720 days nor later 
than 365 days before such date, only so much of 
such funds as does not exceed $5,000;’’; and 
(2) by adding at the end the following: 
‘‘(e) In determining whether any of the relationships 
specified in paragraph (5)(A) or (6)(A) of subsection (b) 
exists, a legally adopted child of an individual (and a child 
who is a member of an individual’s household, if placed 
with such individual by an authorized placement agency 
for legal adoption by such individual), or a foster child of 
an individual (if such child has as the child’s principal
109
place of abode the home of the debtor and is a member of 
the debtor’s household) shall be treated as a child of such 
individual by blood.’’. 
(b) DEBTOR’S DUTIES.—Section 521 of title 11, 
United States Code, as amended by section 106, is amended 
by adding at the end the following: 
‘‘(c) In addition to meeting the requirements under 
subsection (a), a debtor shall file with the court a record 
of any interest that a debtor has in an education individual 
retirement account (as defined in section 530(b)(1) of the 
Internal Revenue Code of 1986) or under a qualified State 
tuition program (as defined in section 529(b)(1) of such 
Code).’’. 
SEC. 226. DEFINITIONS. 
(a) DEFINITIONS.—Section 101 of title 11, United 
States Code, is amended—
(1) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) ‘assisted person’ means any person whose 
debts consist primarily of consumer debts and the 
value of whose nonexempt property is less than 
$150,000;’’; 
(2) by inserting after paragraph (4) the fol-
lowing:
110
‘‘(4A) ‘bankruptcy assistance’ means any goods 
or services sold or otherwise provided to an assisted 
person with the express or implied purpose of pro-
viding information, advice, counsel, document prepa-
ration, or filing, or attendance at a creditors’ meeting 
or appearing in a proceeding on behalf of another or 
providing legal representation with respect to a case 
or proceeding under this title;’’; and 
(3) by inserting after paragraph (12) the fol-
lowing: 
‘‘(12A) ‘debt relief agency’ means any person 
who provides any bankruptcy assistance to an as-
sisted person in return for the payment of money or 
other valuable consideration, or who is a bankruptcy 
petition preparer under section 110, but does not in-
clude—
‘‘(A) any person who is an officer, director, 
employee, or agent of a person who provides such 
assistance or of the bankruptcy petition pre-
parer; 
‘‘(B) a nonprofit organization that is ex-
empt from taxation under section 501(c)(3) of 
the Internal Revenue Code of 1986; 
‘‘(C) a creditor of such assisted person, to 
the extent that the creditor is assisting such as-
111
sisted person to restructure any debt owed by 
such assisted person to the creditor; 
‘‘(D) a depository institution (as defined in 
section 3 of the Federal Deposit Insurance Act) 
or any Federal credit union or State credit 
union (as those terms are defined in section 101 
of the Federal Credit Union Act), or any affiliate 
or subsidiary of such depository institution or 
credit union; or 
‘‘(E) an author, publisher, distributor, or 
seller of works subject to copyright protection 
under title 17, when acting in such capacity.’’. 
(b) CONFORMING AMENDMENT.—Section 104(b) of title 
11, United States Code, is amended by inserting ‘‘101(3),’’ 
after ‘‘sections’’ each place it appears. 
SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES. 
(a) ENFORCEMENT.—Subchapter II of chapter 5 of 
title 11, United States Code, is amended by adding at the 
end the following: 
‘‘§ 526. Restrictions on debt relief agencies 
‘‘(a) A debt relief agency shall not—
‘‘(1) fail to perform any service that such agency 
informed an assisted person or prospective assisted 
person it would provide in connection with a case or 
proceeding under this title;
112
‘‘(2) make any statement, or counsel or advise 
any assisted person or prospective assisted person to 
make a statement in a document filed in a case or 
proceeding under this title, that is untrue and mis-
leading, or that upon the exercise of reasonable care, 
should have been known by such agency to be untrue 
or misleading; 
‘‘(3) misrepresent to any assisted person or pro-
spective assisted person, directly or indirectly, affirm-
atively or by material omission, with respect to—
‘‘(A) the services that such agency will pro-
vide to such person; or 
‘‘(B) the benefits and risks that may result 
if such person becomes a debtor in a case under 
this title; or 
‘‘(4) advise an assisted person or prospective as-
sisted person to incur more debt in contemplation of 
such person filing a case under this title or to pay 
an attorney or bankruptcy petition preparer fee or 
charge for services performed as part of preparing for 
or representing a debtor in a case under this title.
‘‘(b) Any waiver by any assisted person of any protec-
tion or right provided under this section shall not be en-
forceable against the debtor by any Federal or State court
113
or any other person, but may be enforced against a debt 
relief agency. 
‘‘(c)(1) Any contract for bankruptcy assistance between 
a debt relief agency and an assisted person that does not 
comply with the material requirements of this section, sec-
tion 527, or section 528 shall be void and may not be en-
forced by any Federal or State court or by any other person, 
other than such assisted person. 
‘‘(2) Any debt relief agency shall be liable to an as-
sisted person in the amount of any fees or charges in con-
nection with providing bankruptcy assistance to such per-
son that such debt relief agency has received, for actual 
damages, and for reasonable attorneys’ fees and costs if such 
agency is found, after notice and a hearing, to have—
‘‘(A) intentionally or negligently failed to com-
ply with any provision of this section, section 527, or 
section 528 with respect to a case or proceeding under 
this title for such assisted person; 
‘‘(B) provided bankruptcy assistance to an as-
sisted person in a case or proceeding under this title 
that is dismissed or converted to a case under another 
chapter of this title because of such agency’s inten-
tional or negligent failure to file any required docu-
ment including those specified in section 521; or
114
‘‘(C) intentionally or negligently disregarded the 
material requirements of this title or the Federal 
Rules of Bankruptcy Procedure applicable to such 
agency. 
‘‘(3) In addition to such other remedies as are provided 
under State law, whenever the chief law enforcement officer 
of a State, or an official or agency designated by a State, 
has reason to believe that any person has violated or is vio-
lating this section, the State—
‘‘(A) may bring an action to enjoin such viola-
tion; 
‘‘(B) may bring an action on behalf of its resi-
dents to recover the actual damages of assisted persons 
arising from such violation, including any liability 
under paragraph (2); and 
‘‘(C) in the case of any successful action under 
subparagraph (A) or (B), shall be awarded the costs 
of the action and reasonable attorneys’ fees as deter-
mined by the court. 
‘‘(4) The district courts of the United States for dis-
tricts located in the State shall have concurrent jurisdiction 
of any action under subparagraph (A) or (B) of paragraph 
(3). 
‘‘(5) Notwithstanding any other provision of Federal 
law and in addition to any other remedy provided under
115
Federal or State law, if the court, on its own motion or 
on the motion of the United States trustee or the debtor, 
finds that a person intentionally violated this section, or 
engaged in a clear and consistent pattern or practice of vio-
lating this section, the court may—
‘‘(A) enjoin the violation of such section; or 
‘‘(B) impose an appropriate civil penalty 
against such person. 
‘‘(d) No provision of this section, section 527, or sec-
tion 528 shall— 
‘‘(1) annul, alter, affect, or exempt any person 
subject to such sections from complying with any law 
of any State except to the extent that such law is in-
consistent with those sections, and then only to the ex-
tent of the inconsistency; or 
‘‘(2) be deemed to limit or curtail the authority 
or ability—
‘‘(A) of a State or subdivision or instru-
mentality thereof, to determine and enforce 
qualifications for the practice of law under the 
laws of that State; or 
‘‘(B) of a Federal court to determine and 
enforce the qualifications for the practice of law 
before that court.’’.
116
(b) CONFORMING AMENDMENT.—The table of sections 
for chapter 5 of title 11, United States Code, is amended 
by inserting after the item relating to section 525, the fol-
lowing:
‘‘526. Restrictions on debt relief agencies.’’.
SEC. 228. DISCLOSURES. 
(a) DISCLOSURES.—Subchapter II of chapter 5 of title 
11, United States Code, as amended by section 227, is 
amended by adding at the end the following: 
‘‘§ 527. Disclosures 
‘‘(a) A debt relief agency providing bankruptcy assist-
ance to an assisted person shall provide—
‘‘(1) the written notice required under section 
342(b)(1); and 
‘‘(2) to the extent not covered in the written no-
tice described in paragraph (1), and not later than 3 
business days after the first date on which a debt re-
lief agency first offers to provide any bankruptcy as-
sistance services to an assisted person, a clear and 
conspicuous written notice advising assisted persons 
that—
‘‘(A) all information that the assisted per-
son is required to provide with a petition and 
thereafter during a case under this title is re-
quired to be complete, accurate, and truthful;
117
‘‘(B) all assets and all liabilities are re-
quired to be completely and accurately disclosed 
in the documents filed to commence the case, and 
the replacement value of each asset as defined in 
section 506 must be stated in those documents 
where requested after reasonable inquiry to estab-
lish such value; 
‘‘(C) current monthly income, the amounts 
specified in section 707(b)(2), and, in a case 
under chapter 13 of this title, disposable income 
(determined 
in 
accordance 
with 
section 
707(b)(2)), are required to be stated after reason-
able inquiry; and 
‘‘(D) information that an assisted person 
provides during their case may be audited pur-
suant to this title, and that failure to provide 
such information may result in dismissal of the 
case under this title or other sanction, including 
a criminal sanction. 
‘‘(b) A debt relief agency providing bankruptcy assist-
ance to an assisted person shall provide each assisted person 
at the same time as the notices required under subsection 
(a)(1) the following statement, to the extent applicable, or 
one substantially similar. The statement shall be clear and 
conspicuous and shall be in a single document separate
118
from other documents or notices provided to the assisted 
person: 
‘‘ ‘IMPORTANT INFORMATION ABOUT BANK-
RUPTCY ASSISTANCE SERVICES FROM AN ATTOR-
NEY OR BANKRUPTCY PETITION PREPARER. 
‘‘ ‘If you decide to seek bankruptcy relief, you can rep-
resent yourself, you can hire an attorney to represent you, 
or you can get help in some localities from a bankruptcy 
petition preparer who is not an attorney. THE LAW RE-
QUIRES AN ATTORNEY OR BANKRUPTCY PETI-
TION PREPARER TO GIVE YOU A WRITTEN CON-
TRACT SPECIFYING WHAT THE ATTORNEY OR 
BANKRUPTCY PETITION PREPARER WILL DO FOR 
YOU AND HOW MUCH IT WILL COST. Ask to see the 
contract before you hire anyone. 
‘‘ ‘The following information helps you understand 
what must be done in a routine bankruptcy case to help 
you evaluate how much service you need. Although bank-
ruptcy can be complex, many cases are routine. 
‘‘ ‘Before filing a bankruptcy case, either you or your 
attorney should analyze your eligibility for different forms 
of debt relief available under the Bankruptcy Code and 
which form of relief is most likely to be beneficial for you. 
Be sure you understand the relief you can obtain and its 
limitations. To file a bankruptcy case, documents called a
119
Petition, Schedules and Statement of Financial Affairs, as 
well as in some cases a Statement of Intention need to be 
prepared correctly and filed with the bankruptcy court. You 
will have to pay a filing fee to the bankruptcy court. Once 
your case starts, you will have to attend the required first 
meeting of creditors where you may be questioned by a court 
official called a ‘trustee’ and by creditors. 
‘‘ ‘If you choose to file a chapter 7 case, you may be 
asked by a creditor to reaffirm a debt. You may want help 
deciding whether to do so. A creditor is not permitted to 
coerce you into reaffirming your debts. 
‘‘ ‘If you choose to file a chapter 13 case in which you 
repay your creditors what you can afford over 3 to 5 years, 
you may also want help with preparing your chapter 13 
plan and with the confirmation hearing on your plan which 
will be before a bankruptcy judge. 
‘‘ ‘If you select another type of relief under the Bank-
ruptcy Code other than chapter 7 or chapter 13, you will 
want to find out what should be done from someone familiar 
with that type of relief.
‘‘ ‘Your bankruptcy case may also involve litigation. 
You are generally permitted to represent yourself in litiga-
tion in bankruptcy court, but only attorneys, not bank-
ruptcy petition preparers, can give you legal advice.’.
120
‘‘(c) Except to the extent the debt relief agency provides 
the required information itself after reasonably diligent in-
quiry of the assisted person or others so as to obtain such 
information reasonably accurately for inclusion on the peti-
tion, schedules or statement of financial affairs, a debt relief 
agency providing bankruptcy assistance to an assisted per-
son, to the extent permitted by nonbankruptcy law, shall 
provide each assisted person at the time required for the 
notice required under subsection (a)(1) reasonably sufficient 
information (which shall be provided in a clear and con-
spicuous writing) to the assisted person on how to provide 
all the information the assisted person is required to pro-
vide under this title pursuant to section 521, including—
‘‘(1) how to value assets at replacement value, 
determine current monthly income, the amounts spec-
ified in section 707(b)(2) and, in a chapter 13 case, 
how to determine disposable income in accordance 
with section 707(b)(2) and related calculations; 
‘‘(2) how to complete the list of creditors, includ-
ing how to determine what amount is owed and what 
address for the creditor should be shown; and 
‘‘(3) how to determine what property is exempt 
and how to value exempt property at replacement 
value as defined in section 506.
121
‘‘(d) A debt relief agency shall maintain a copy of the 
notices required under subsection (a) of this section for 2 
years after the date on which the notice is given the assisted 
person.’’. 
(b) CONFORMING AMENDMENT.—The table of sections 
for chapter 5 of title 11, United States Code, as amended 
by section 227, is amended by inserting after the item relat-
ing to section 526 the following:
‘‘527. Disclosures.’’.
SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES. 
(a) ENFORCEMENT.—Subchapter II of chapter 5 of 
title 11, United States Code, as amended by sections 227 
and 228, is amended by adding at the end the following: 
‘‘§ 528. Requirements for debt relief agencies 
‘‘(a) A debt relief agency shall—
‘‘(1) not later than 5 business days after the first 
date on which such agency provides any bankruptcy 
assistance services to an assisted person, but prior to 
such assisted person’s petition under this title being 
filed, execute a written contract with such assisted 
person that explains clearly and conspicuously—
‘‘(A) the services such agency will provide to 
such assisted person; and 
‘‘(B) the fees or charges for such services, 
and the terms of payment;
122
‘‘(2) provide the assisted person with a copy of 
the fully executed and completed contract; 
‘‘(3) clearly and conspicuously disclose in any 
advertisement of bankruptcy assistance services or of 
the benefits of bankruptcy directed to the general pub-
lic (whether in general media, seminars or specific 
mailings, telephonic or electronic messages, or other-
wise) that the services or benefits are with respect to 
bankruptcy relief under this title; and 
‘‘(4) clearly and conspicuously use the following 
statement in such advertisement: ‘We are a debt relief 
agency. We help people file for bankruptcy relief 
under the Bankruptcy Code.’ or a substantially simi-
lar statement. 
‘‘(b)(1) An advertisement of bankruptcy assistance 
services or of the benefits of bankruptcy directed to the gen-
eral public includes—
‘‘(A) descriptions of bankruptcy assistance in 
connection with a chapter 13 plan whether or not 
chapter 13 is specifically mentioned in such advertise-
ment; and 
‘‘(B) statements such as ‘federally supervised re-
payment plan’ or ‘Federal debt restructuring help’ or 
other similar statements that could lead a reasonable 
consumer to believe that debt counseling was being of-
123
fered when in fact the services were directed to pro-
viding bankruptcy assistance with a chapter 13 plan 
or other form of bankruptcy relief under this title. 
‘‘(2) An advertisement, directed to the general public, 
indicating that the debt relief agency provides assistance 
with respect to credit defaults, mortgage foreclosures, evic-
tion proceedings, excessive debt, debt collection pressure, or 
inability to pay any consumer debt shall— 
‘‘(A) disclose clearly and conspicuously in such 
advertisement that the assistance may involve bank-
ruptcy relief under this title; and 
‘‘(B) include the following statement: ‘We are a 
debt relief agency. We help people file for bankruptcy 
relief under the Bankruptcy Code.’ or a substantially 
similar statement.’’. 
(b) CONFORMING AMENDMENT.—The table of sections 
for chapter 5 of title 11, United States Code, as amended 
by section 227 and 228, is amended by inserting after the 
item relating to section 527, the following:
‘‘528. Requirements for debt relief agencies.’’.
SEC. 230. GAO STUDY. 
(a) STUDY.—Not later than 270 days after the date 
of enactment of this Act, the Comptroller General of the 
United States shall conduct a study of the feasibility, effec-
tiveness, and cost of requiring trustees appointed under title 
11, United States Code, or the bankruptcy courts, to provide
124
to the Office of Child Support Enforcement promptly after 
the commencement of cases by debtors who are individuals 
under such title, the names and social security account 
numbers of such debtors for the purposes of allowing such 
Office to determine whether such debtors have outstanding 
obligations for child support (as determined on the basis 
of information in the Federal Case Registry or other na-
tional database). 
(b) REPORT.—Not later than 300 days after the date 
of enactment of this Act, the Comptroller General shall sub-
mit to the President pro tempore of the Senate and the 
Speaker of the House of Representatives a report containing 
the results of the study required by subsection (a).
SEC. 231. PROTECTION OF PERSONALLY IDENTIFIABLE IN-
FORMATION. 
(a) LIMITATION.—Section 363(b)(1) of title 11, United 
States Code, is amended by striking the period at the end 
and inserting the following: 
‘‘, except that if the debtor in connection with offering a 
product or a service discloses to an individual a policy pro-
hibiting the transfer of personally identifiable information 
about individuals to persons that are not affiliated with 
the debtor and if such policy is in effect on the date of the 
commencement of the case, then the trustee may not sell or
125
lease personally identifiable information to any person un-
less—
‘‘(A) such sale or such lease is consistent with 
such policy; or 
‘‘(B) after appointment of a consumer privacy 
ombudsman in accordance with section 332, and after 
notice and a hearing, the court approves such sale or 
such lease—
‘‘(i) giving due consideration to the facts, 
circumstances, and conditions of such sale or 
such lease; and 
‘‘(ii) finding that no showing was made 
that such sale or such lease would violate appli-
cable nonbankruptcy law.’’.
(b) DEFINITION.—Section 101 of title 11, United 
States Code, is amended by inserting after paragraph (41) 
the following: 
‘‘(41A) 
‘personally 
identifiable 
information’ 
means—
‘‘(A) if provided by an individual to the 
debtor in connection with obtaining a product or 
a service from the debtor primarily for personal, 
family, or household purposes—
‘‘(i) the first name (or initial) and last 
name of such individual, whether given at
126
birth or time of adoption, or resulting from 
a lawful change of name; 
‘‘(ii) the geographical address of a 
physical place of residence of such indi-
vidual; 
‘‘(iii) an electronic address (including 
an e-mail address) of such individual; 
‘‘(iv) a telephone number dedicated to 
contacting such individual at such physical 
place of residence; 
‘‘(v) a social security account number 
issued to such individual; or 
‘‘(vi) the account number of a credit 
card issued to such individual; or 
‘‘(B) if identified in connection with 1 or 
more of the items of information specified in 
subparagraph (A)—
‘‘(i) a birth date, the number of a cer-
tificate of birth or adoption, or a place of 
birth; or 
‘‘(ii) any other information concerning 
an identified individual that, if disclosed, 
will result in contacting or identifying such 
individual physically or electronically;’’.
127
SEC. 232. CONSUMER PRIVACY OMBUDSMAN. 
(a) CONSUMER PRIVACY OMBUDSMAN.—Title 11 of the 
United States Code is amended by inserting after section 
331 the following: 
‘‘§ 332. Consumer privacy ombudsman 
‘‘(a) If a hearing is required under section 
363(b)(1)(B), the court shall order the United States trustee 
to appoint, not later than 5 days before the commencement 
of the hearing, 1 disinterested person (other than the United 
States trustee) to serve as the consumer privacy ombudsman 
in the case and shall require that notice of such hearing 
be timely given to such ombudsman. 
‘‘(b) The consumer privacy ombudsman may appear 
and be heard at such hearing and shall provide to the court 
information to assist the court in its consideration of the 
facts, circumstances, and conditions of the proposed sale or 
lease of personally identifiable information under section 
363(b)(1)(B). Such information may include presentation 
of—
‘‘(1) the debtor’s privacy policy; 
‘‘(2) the potential losses or gains of privacy to 
consumers if such sale or such lease is approved by 
the court; 
‘‘(3) the potential costs or benefits to consumers 
if such sale or such lease is approved by the court; 
and
128
‘‘(4) the potential alternatives that would miti-
gate potential privacy losses or potential costs to con-
sumers. 
‘‘(c) A consumer privacy ombudsman shall not disclose 
any personally identifiable information obtained by the om-
budsman under this title.’’. 
(b) COMPENSATION OF CONSUMER PRIVACY OMBUDS-
MAN.—Section 330(a)(1) of title 11, United States Code, is 
amended in the matter preceding subparagraph (A), by in-
serting ‘‘a consumer privacy ombudsman appointed under 
section 332,’’ before ‘‘an examiner’’. 
(c) CONFORMING AMENDMENT.—The table of sections 
for subchapter II of chapter 3 of title 11, United States 
Code, is amended by adding at the end the following:
‘‘332. Consumer privacy ombudsman.’’.
SEC. 233. PROHIBITION ON DISCLOSURE OF NAME OF 
MINOR CHILDREN. 
(a) PROHIBITION.—Title 11 of the United States Code, 
as amended by section 106, is amended by inserting after 
section 111 the following: 
‘‘§ 112. Prohibition on disclosure of name of minor 
children 
‘‘The debtor may be required to provide information 
regarding a minor child involved in matters under this title 
but may not be required to disclose in the public records 
in the case the name of such minor child. The debtor may
129
be required to disclose the name of such minor child in a 
nonpublic record that is maintained by the court and made 
available by the court for examination by the United States 
trustee, the trustee, and the auditor (if any) serving under 
section 586(f) of title 28, in the case. The court, the United 
States trustee, the trustee, and such auditor shall not dis-
close the name of such minor child maintained in such non-
public record.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter 1 of title 11, United States Code, as amended by 
section 106, is amended by inserting after the item relating 
to section 111 the following:
‘‘112. Prohibition on disclosure of name of minor children.’’.
(c) CONFORMING AMENDMENT.—Section 107(a) of title 
11, United States Code, is amended by inserting ‘‘and sub-
ject to section 112’’ after ‘‘section’’. 
TITLE III —DISCOURAGING 
BANKRUPTCY ABUSE 
SEC. 301. TECHNICAL AMENDMENTS. 
Section 523(a)(17) of title 11, United States Code, is 
amended—
(1) by striking ‘‘by a court’’ and inserting ‘‘on 
a prisoner by any court’’; 
(2) by striking ‘‘section 1915(b) or (f)’’ and in-
serting ‘‘subsection (b) or (f)(2) of section 1915’’; and
130
(3) by inserting ‘‘(or a similar non-Federal 
law)’’ after ‘‘title 28’’ each place it appears. 
SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS. 
Section 362(c) of title 11, United States Code, is 
amended—
(1) in paragraph (1), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (2), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(3) if a single or joint case is filed by or 
against debtor who is an individual in a case under 
chapter 7, 11, or 13, and if a single or joint case of 
the debtor was pending within the preceding 1-year 
period but was dismissed, other than a case refiled 
under a chapter other than chapter 7 after dismissal 
under section 707(b)—
‘‘(A) the stay under subsection (a) with re-
spect to any action taken with respect to a debt 
or property securing such debt or with respect to 
any lease shall terminate with respect to the 
debtor on the 30th day after the filing of the 
later case; 
‘‘(B) on the motion of a party in interest 
for continuation of the automatic stay and upon
131
notice and a hearing, the court may extend the 
stay in particular cases as to any or all creditors 
(subject to such conditions or limitations as the 
court may then impose) after notice and a hear-
ing completed before the expiration of the 30-day 
period only if the party in interest demonstrates 
that the filing of the later case is in good faith 
as to the creditors to be stayed; and 
‘‘(C) for purposes of subparagraph (B), a 
case is presumptively filed not in good faith (but 
such presumption may be rebutted by clear and 
convincing evidence to the contrary)—
‘‘(i) as to all creditors, if—
‘‘(I) more than 1 previous case 
under any of chapters 7, 11, and 13 in 
which the individual was a debtor was 
pending within the preceding 1-year 
period; 
‘‘(II) a previous case under any of 
chapters 7, 11, and 13 in which the in-
dividual was a debtor was dismissed 
within such 1-year period, after the 
debtor failed to—
‘‘(aa) file or amend the peti-
tion or other documents as re-
132
quired by this title or the court 
without substantial excuse (but 
mere inadvertence or negligence 
shall not be a substantial excuse 
unless the dismissal was caused 
by the negligence of the debtor’s 
attorney); 
‘‘(bb) provide adequate pro-
tection as ordered by the court; or 
‘‘(cc) perform the terms of a 
plan confirmed by the court; or 
‘‘(III) there has not been a sub-
stantial change in the financial or per-
sonal affairs of the debtor since the dis-
missal of the next most previous case 
under chapter 7, 11, or 13 or any other 
reason to conclude that the later case 
will be concluded—
‘‘(aa) if a case under chapter 
7, with a discharge; or 
‘‘(bb) if a case under chapter 
11 or 13, with a confirmed plan 
that will be fully performed; and 
‘‘(ii) as to any creditor that com-
menced an action under subsection (d) in a
133
previous case in which the individual was 
a debtor if, as of the date of dismissal of 
such case, that action was still pending or 
had been resolved by terminating, condi-
tioning, or limiting the stay as to actions of 
such creditor; and 
‘‘(4)(A)(i) if a single or joint case is filed by or 
against a debtor who is an individual under this 
title, and if 2 or more single or joint cases of the debt-
or were pending within the previous year but were 
dismissed, other than a case refiled under section 
707(b), the stay under subsection (a) shall not go into 
effect upon the filing of the later case; and 
‘‘(ii) on request of a party in interest, the court 
shall promptly enter an order confirming that no stay 
is in effect; 
‘‘(B) if, within 30 days after the filing of the 
later case, a party in interest requests the court may 
order the stay to take effect in the case as to any or 
all creditors (subject to such conditions or limitations 
as the court may impose), after notice and a hearing, 
only if the party in interest demonstrates that the fil-
ing of the later case is in good faith as to the creditors 
to be stayed;
134
‘‘(C) a stay imposed under subparagraph (B) 
shall be effective on the date of the entry of the order 
allowing the stay to go into effect; and 
‘‘(D) for purposes of subparagraph (B), a case is 
presumptively filed not in good faith (but such pre-
sumption may be rebutted by clear and convincing 
evidence to the contrary)—
‘‘(i) as to all creditors if—
‘‘(I) 2 or more previous cases under 
this title in which the individual was a 
debtor were pending within the 1-year pe-
riod; 
‘‘(II) a previous case under this title in 
which the individual was a debtor was dis-
missed within the time period stated in this 
paragraph after the debtor failed to file or 
amend the petition or other documents as 
required by this title or the court without 
substantial excuse (but mere inadvertence or 
negligence shall not be substantial excuse 
unless the dismissal was caused by the neg-
ligence of the debtor’s attorney), failed to 
provide adequate protection as ordered by 
the court, or failed to perform the terms of 
a plan confirmed by the court; or
135
‘‘(III) there has not been a substantial 
change in the financial or personal affairs 
of the debtor since the dismissal of the next 
most previous case under this title, or any 
other reason to conclude that the later case 
will not be concluded, if a case under chap-
ter 7, with a discharge, and if a case under 
chapter 11 or 13, with a confirmed plan 
that will be fully performed; or 
‘‘(ii) as to any creditor that commenced an 
action under subsection (d) in a previous case in 
which the individual was a debtor if, as of the 
date of dismissal of such case, such action was 
still pending or had been resolved by termi-
nating, conditioning, or limiting the stay as to 
such action of such creditor.’’. 
SEC. 303. CURBING ABUSIVE FILINGS. 
(a) IN GENERAL.—Section 362(d) of title 11, United 
States Code, is amended—
(1) in paragraph (2), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following:
136
‘‘(4) with respect to a stay of an act against real 
property under subsection (a), by a creditor whose 
claim is secured by an interest in such real property, 
if the court finds that the filing of the petition was 
part of a scheme to delay, hinder, and defraud credi-
tors that involved either—
‘‘(A) transfer of all or part ownership of, or 
other interest in, such real property without the 
consent of the secured creditor or court approval; 
or 
‘‘(B) multiple bankruptcy filings affecting 
such real property. 
If recorded in compliance with applicable State laws gov-
erning notices of interests or liens in real property, an order 
entered under paragraph (4) shall be binding in any other 
case under this title purporting to affect such real property 
filed not later than 2 years after the date of the entry of 
such order by the court, except that a debtor in a subsequent 
case under this title may move for relief from such order 
based upon changed circumstances or for good cause shown, 
after notice and a hearing. Any Federal, State, or local gov-
ernmental unit that accepts notices of interests or liens in 
real property shall accept any certified copy of an order 
described in this subsection for indexing and recording.’’.
137
(b) AUTOMATIC STAY.—Section 362(b) of title 11, 
United States Code, as amended by section 224, is amended 
by inserting after paragraph (19), the following: 
‘‘(20) under subsection (a), of any act to enforce 
any lien against or security interest in real property 
following entry of the order under subsection (d)(4) as 
to such real property in any prior case under this 
title, for a period of 2 years after the date of the entry 
of such an order, except that the debtor, in a subse-
quent case under this title, may move for relief from 
such order based upon changed circumstances or for 
other good cause shown, after notice and a hearing; 
‘‘(21) under subsection (a), of any act to enforce 
any lien against or security interest in real prop-
erty—
‘‘(A) if the debtor is ineligible under section 
109(g) to be a debtor in a case under this title; 
or 
‘‘(B) if the case under this title was filed in 
violation of a bankruptcy court order in a prior 
case under this title prohibiting the debtor from 
being a debtor in another case under this title;’’. 
SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY 
SECURITY. 
Title 11, United States Code, is amended—
138
(1) in section 521(a), as so designated by section 
106—
(A) in paragraph (4), by striking ‘‘, and’’ 
at the end and inserting a semicolon; 
(B) in paragraph (5), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(6) in a case under chapter 7 of this title in 
which the debtor is an individual, not retain posses-
sion of personal property as to which a creditor has 
an allowed claim for the purchase price secured in 
whole or in part by an interest in such personal 
property unless the debtor, not later than 45 days 
after the first meeting of creditors under section 
341(a), either—
‘‘(A) enters into an agreement with the 
creditor pursuant to section 524(c) with respect 
to the claim secured by such property; or 
‘‘(B) redeems such property from the secu-
rity interest pursuant to section 722. 
If the debtor fails to so act within the 45-day period referred 
to in paragraph (6), the stay under section 362(a) is termi-
nated 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 what-
139
ever action as to such property as is permitted by applica-
ble nonbankruptcy law, unless the court determines on the 
motion of the trustee filed before the expiration of such 45-
day period, and after notice and a hearing, that such prop-
erty is of consequential value or benefit to the estate, orders 
appropriate adequate protection of the creditor’s interest, 
and orders the debtor to deliver any collateral in the debtor’s 
possession to the trustee.’’; and 
(2) in section 722, by inserting ‘‘in full at the 
time of redemption’’ before the period at the end. 
SEC. 305. RELIEF FROM THE AUTOMATIC STAY WHEN THE 
DEBTOR DOES NOT COMPLETE INTENDED 
SURRENDER OF CONSUMER DEBT COLLAT-
ERAL. 
Title 11, United States Code, is amended—
(1) in section 362, as amended by section 106—
(A) in subsection (c), by striking ‘‘(e), and 
(f)’’ and inserting ‘‘(e), (f), and (h)’’; 
(B) by redesignating subsection (h) as sub-
section (k) and transferring such subsection so as 
to insert it after subjection (j) as added by sec-
tion 106; and 
(C) by inserting after subsection (g) the fol-
lowing:
140
‘‘(h)(1) In a case in which the debtor is an individual, 
the stay provided by subsection (a) is terminated with re-
spect to personal property of the estate or of the debtor se-
curing 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)—
‘‘(A) to file timely any statement of intention re-
quired under section 521(a)(2) with respect to such 
personal property or to indicate in such statement 
that the debtor will either surrender such personal 
property or retain it and, if retaining such personal 
property, either redeem such personal property pursu-
ant to section 722, enter into an agreement of the 
kind specified in section 524(c) applicable to the debt 
secured by such personal property, or assume such 
unexpired lease pursuant to section 365(p) if the 
trustee does not do so, as applicable; and 
‘‘(B) to take timely the action specified in such 
statement, as it may be amended before expiration of 
the period for taking action, unless such statement 
specifies the debtor’s intention to reaffirm such debt 
on the original contract terms and the creditor refuses 
to agree to the reaffirmation on such terms.
141
‘‘(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 personal property is of con-
sequential value or benefit to the estate, and orders appro-
priate adequate protection of the creditor’s interest, and or-
ders the debtor to deliver any collateral in the debtor’s pos-
session to the trustee. If the court does not so determine, 
the stay provided by subsection (a) shall terminate upon 
the conclusion of the hearing on the motion.’’; and 
(2) in section 521, as amended by sections 106 
and 225—
(A) in subsection (a)(2) by striking ‘‘con-
sumer’’; 
(B) in subsection (a)(2)(B)—
(i) by striking ‘‘forty-five days after 
the filing of a notice of intent under this 
section’’ and inserting ‘‘30 days after the 
first date set for the meeting of creditors 
under section 341(a)’’; and 
(ii) by striking ‘‘forty-five day’’ and 
inserting ‘‘30-day’’; 
(C) in subsection (a)(2)(C) by inserting ‘‘, 
except as provided in section 362(h)’’ before the 
semicolon; and
142
(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), 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 inter-
est not otherwise voidable under section 522(f), 544, 545, 
547, 548, or 549, nothing in this title shall prevent or limit 
the operation of a provision in the underlying lease or 
agreement that has the effect of placing the debtor in default 
under such lease or agreement by reason of the occurrence, 
pendency, or existence of a proceeding under this title or 
the insolvency of the debtor. Nothing in this subsection shall 
be deemed to justify limiting such a provision in any other 
circumstance.’’. 
SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT 
IN CHAPTER 13. 
(a) IN GENERAL.—Section 1325(a)(5)(B)(i) of title 11, 
United States Code, is amended to read as follows: 
‘‘(i) the plan provides that—
‘‘(I) the holder of such claim retain the 
lien securing such claim until the earlier 
of—
143
‘‘(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: 
‘‘For purposes of paragraph (5), section 506 shall not apply 
to a claim described in that paragraph if the creditor has 
a purchase money security interest securing the debt that 
is the subject of the claim, the debt was incurred within 
the 910-day preceding the date of the filing of the petition, 
and the collateral for that debt consists of a motor vehicle 
(as defined in section 30102 of title 49) acquired for the 
personal use of the debtor, or if collateral for that debt con-
sists of any other thing of value, if the debt was incurred 
during the 1-year period preceding that filing.’’. 
(c) DEFINITIONS.—Section 101 of title 11, United 
States Code, is amended—
144
(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: 
‘‘(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 
property is located; 
‘‘(B) all easements, rights, appurtenances, 
fixtures, rents, royalties, mineral rights, oil or 
gas rights or profits, water rights, escrow funds, 
or insurance proceeds; and 
‘‘(C) all replacements or additions;’’. 
SEC. 307. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS. 
Section 522(b)(3) of title 11, United States Code, as 
so designated by section 106, is amended—
145
(1) in subparagraph (A)—
(A) by striking ‘‘180 days’’ and inserting 
‘‘730 days’’; and 
(B) by striking ‘‘, or for a longer portion of 
such 180-day period than in any other place’’ 
and inserting ‘‘or if the debtor’s domicile has not 
been located at a single State for such 730-day 
period, the place in which the debtor’s domicile 
was located for 180 days immediately preceding 
the 730-day period or for a longer portion of 
such 180-day period than in any other place’’; 
and 
(2) by adding at the end the following: 
‘‘If the effect of the domiciliary requirement under subpara-
graph (A) is to render the debtor ineligible for any exemp-
tion, the debtor may elect to exempt property that is speci-
fied under subsection (d).’’.
SEC. 308. REDUCTION OF HOMESTEAD EXEMPTION FOR 
FRAUD. 
Section 522 of title 11, United States Code, as amend-
ed by section 224, is amended—
(1) in subsection (b)(3)(A), as so designated by 
this Act, by inserting ‘‘subject to subsections (o) and 
(p),’’ before ‘‘any property’’; and 
(2) by adding at the end the following:
146
‘‘(o) For purposes of subsection (b)(3)(A), and notwith-
standing subsection (a), the value of an interest in—
‘‘(1) real or personal property that the debtor or 
a dependent of the debtor uses as a residence; 
‘‘(2) a cooperative that owns property that the 
debtor or a dependent of the debtor uses as a resi-
dence; 
‘‘(3) a burial plot for the debtor or a dependent 
of the debtor; or 
‘‘(4) real or personal property that the debtor or 
a dependent of the debtor claims as a homestead; 
shall be reduced to the extent that such value is attributable 
to any portion of any property that the debtor disposed of 
in the 10-year period ending on the date of the filing of 
the petition with the intent to hinder, delay, or defraud a 
creditor and that the debtor could not exempt, or that por-
tion that the debtor could not exempt, under subsection (b), 
if on such date the debtor had held the property so disposed 
of.’’. 
SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER 
13 CASES. 
(a) STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 
13.—Section 348(f)(1) of title 11, United States Code, is 
amended—
147
(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 
allowed secured claim made for the purposes of 
the case under chapter 13; and 
‘‘(ii) unless a prebankruptcy default has 
been fully cured under the plan at the time of
148
conversion, in any proceeding under this title or 
otherwise, the default shall have the effect given 
under applicable nonbankruptcy law.’’. 
(b) GIVING DEBTORS THE ABILITY TO KEEP LEASED 
PERSONAL PROPERTY BY ASSUMPTION.—Section 365 of 
title 11, United States Code, is amended by adding at the 
end the following: 
‘‘(p)(1) If a lease of personal property is rejected or 
not timely assumed by the trustee under subsection (d), the 
leased property is no longer property of the estate and the 
stay under section 362(a) is automatically terminated. 
‘‘(2)(A) If the debtor in a case under chapter 7 is an 
individual, the debtor may notify the creditor in writing 
that the debtor desires to assume the lease. Upon being so 
notified, the creditor may, at its option, notify the debtor 
that it is willing to have the lease assumed by the debtor 
and may condition such assumption on cure of any out-
standing default on terms set by the contract. 
‘‘(B) If, not later than 30 days after notice is provided 
under subparagraph (A), the debtor notifies the lessor in 
writing that the lease is assumed, the liability under the 
lease will be assumed by the debtor and not by the estate. 
‘‘(C) The stay under section 362 and the injunction 
under section 524(a)(2) shall not be violated by notification 
of the debtor and negotiation of cure under this subsection.
149
‘‘(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, as 
amended by section 306, is amended—
(A) in clause (i), by striking ‘‘and’’ at the 
end; 
(B) in clause (ii), by striking ‘‘or’’ at the 
end and inserting ‘‘and’’; and 
(C) by adding at the end the following: 
‘‘(iii) if—
‘‘(I) property to be distributed pursu-
ant to this subsection is in the form of peri-
odic payments, such payments shall be in 
equal monthly amounts; and
150
‘‘(II) the holder of the claim is secured 
by personal property, the amount of such 
payments shall not be less than an amount 
sufficient to provide to the holder of such 
claim adequate protection during the period 
of the plan; or’’. 
(2) PAYMENTS.—Section 1326(a) of title 11, 
United States Code, is amended to read as follows: 
‘‘(a)(1) Unless the court orders otherwise, the debtor 
shall commence making payments not later than 30 days 
after the date of the filing of the plan or the order for relief, 
whichever is earlier, in the amount—
‘‘(A) proposed by the plan to the trustee; 
‘‘(B) scheduled in a lease of personal property 
directly to the lessor for that portion of the obligation 
that becomes due after the order for relief, reducing 
the payments under subparagraph (A) by the amount 
so paid and providing the trustee with evidence of 
such payment, including the amount and date of 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
151
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. 
‘‘(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
152
such property and continue to do so for so long as the debtor 
retains possession of such property.’’.
SEC. 310. LIMITATION ON LUXURY GOODS. 
Section 523(a)(2)(C) of title 11, United States Code, 
is amended to read as follows: 
‘‘(C)(i) for purposes of subparagraph (A)—
‘‘(I) consumer debts owed to a single 
creditor and aggregating more than $500 
for luxury goods or services incurred by an 
individual debtor on or within 90 days be-
fore the order for relief under this title are 
presumed to be nondischargeable; and 
‘‘(II) cash advances aggregating more 
than $750 that are extensions of consumer 
credit under an open end credit plan ob-
tained by an individual debtor on or within 
70 days before the order for relief under this 
title, are presumed to be nondischargeable; 
and 
‘‘(ii) for purposes of this subparagraph—
‘‘(I) the terms ‘consumer’, ‘credit’, and 
‘open end credit plan’ have the same mean-
ings as in section 103 of the Truth in Lend-
ing Act; and
153
‘‘(II) the term ‘luxury goods or serv-
ices’ does not include goods or services rea-
sonably necessary for the support or main-
tenance of the debtor or a dependent of the 
debtor.’’.
SEC. 311. AUTOMATIC STAY. 
(a) IN GENERAL.—Section 362(b) of title 11, United 
States Code, as amended by sections 224 and 303, is amend-
ed by inserting after paragraph (21), the following: 
‘‘(22) subject to subsection (n), under subsection 
(a)(3), of the continuation of any eviction, unlawful 
detainer action, or similar proceeding by a lessor 
against a debtor involving residential property in 
which the debtor resides as a tenant under a lease or 
rental agreement and with respect to which the lessor 
has obtained before the date of the filing of the bank-
ruptcy petition, a judgment for possession of such 
property against the debtor; 
‘‘(23) subject to subsection (o), under subsection 
(a)(3), of an eviction action that seeks possession of 
the residential property in which the debtor resides as 
a tenant under a lease or rental agreement based on 
endangerment of such property or the illegal use of 
controlled substances on such property, but only if the 
lessor files with the court, and serves upon the debtor,
154
a certification under penalty of perjury that such an 
eviction action has been filed, or that the debtor, dur-
ing the 30-day period preceding the date of the filing 
of the certification, has endangered property or ille-
gally used or allowed to be used a controlled substance 
on the property;
‘‘(24) under subsection (a), of any transfer that 
is not avoidable under section 544 and that is not 
avoidable under section 549;’’. 
(b) LIMITATIONS.—Section 362 of title 11, United 
States Code, as amended by sections 106 and 305, is amend-
ed by adding at the end the following: 
‘‘(l)(1) Except as otherwise provided in this subsection, 
subsection (b)(22) shall apply on the date that is 30 days 
after the date on which the bankruptcy petition is filed, if 
the debtor files with the petition and serves upon the lessor 
a certification under penalty of perjury that—
‘‘(A) under nonbankruptcy law applicable in the 
jurisdiction, there are circumstances under which the 
debtor would be permitted to cure the entire monetary 
default that gave rise to the judgment for possession, 
after that judgment for possession was entered; and 
‘‘(B) the debtor (or an adult dependent of the 
debtor) has deposited with the clerk of the court, any
155
rent that would become due during the 30-day period 
after the filing of the bankruptcy petition. 
‘‘(2) If, within the 30-day period after the filing of 
the bankruptcy petition, the debtor (or an adult dependent 
of the debtor) complies with paragraph (1) and files with 
the court and serves upon the lessor a further certification 
under penalty of perjury that the debtor (or an adult de-
pendent of the debtor) has cured, under nonbankrupcty law 
applicable in the jurisdiction, the entire monetary default 
that gave rise to the judgment under which possession is 
sought by the lessor, subsection (b)(22) shall not apply, un-
less ordered to apply by the court under paragraph (3). 
‘‘(3)(A) If the lessor files an objection to any certifi-
cation filed by the debtor under paragraph (1) or (2), and 
serves such objection upon the debtor, the court shall hold 
a hearing within 10 days after the filing and service of such 
objection to determine if the certification filed by the debtor 
under paragraph (1) or (2) is true. 
‘‘(B) If the court upholds the objection of the lessor filed 
under subparagraph (A)—
‘‘(i) subsection (b)(22) shall apply immediately 
and relief from the stay provided under subsection 
(a)(3) shall not be required to enable the lessor to 
complete the process to recover full possession of the 
property; and
156
‘‘(ii) the clerk of the court shall immediately 
serve upon the lessor and the debtor a certified copy 
of the court’s order upholding the lessor’s objection. 
‘‘(4) If a debtor, in accordance with paragraph (5), 
indicates on the petition that there was a judgment for pos-
session of the residential rental property in which the debtor 
resides and does not file a certification under paragraph 
(1) or (2)—
‘‘(A) subsection (b)(22) shall apply immediately 
upon failure to file such certification, and relief from 
the stay provided under subsection (a)(3) shall not be 
required to enable the lessor to complete the process to 
recover full possession of the property; and 
‘‘(B) the clerk of the court shall immediately 
serve upon the lessor and the debtor a certified copy 
of the docket indicating the absence of a filed certifi-
cation and the applicability of the exception to the 
stay under subsection (b)(22). 
‘‘(5)(A) Where a judgment for possession of residential 
property in which the debtor resides as a tenant under a 
lease or rental agreement has been obtained by the lessor, 
the debtor shall so indicate on the bankruptcy petition and 
shall provide the name and address of the lessor that ob-
tained that pre-petition judgment on the petition and on 
any certification filed under this subsection.
157
‘‘(B) The form of certification filed with the petition, 
as specified in this subsection, shall provide for the debtor 
to certify, and the debtor shall certify— 
‘‘(i) whether a judgment for possession of resi-
dential rental housing in which the debtor resides has 
been obtained against the debtor before the date of the 
filing of the petition; and 
‘‘(ii) whether the debtor is claiming under para-
graph (1) that under nonbankruptcy law applicable 
in the jurisdiction, there are circumstances under 
which the debtor would be permitted to cure the entire 
monetary default that gave rise to the judgment for 
possession, after that judgment of possession was en-
tered, and has made the appropriate deposit with the 
court. 
‘‘(C) The standard forms (electronic and otherwise) 
used in a bankruptcy proceeding shall be amended to reflect 
the requirements of this subsection. 
‘‘(D) The clerk of the court shall arrange for the 
prompt transmittal of the rent deposited in accordance with 
paragraph (1)(B) to the lessor. 
‘‘(m)(1) Except as otherwise provided in this sub-
section, subsection (b)(23) shall apply on the date that is 
15 days after the date on which the lessor files and serves 
a certification described in subsection (b)(23).
158
‘‘(2)(A) If the debtor files with the court an objection 
to the truth or legal sufficiency of the certification described 
in subsection (b)(23) and serves such objection upon the les-
sor, subsection (b)(23) shall not apply, unless ordered to 
apply by the court under this subsection. 
‘‘(B) If the debtor files and serves the objection under 
subparagraph (A), the court shall hold a hearing within 
10 days after the filing and service of such objection to de-
termine if the situation giving rise to the lessor’s certifi-
cation under paragraph (1) existed or has been remedied. 
‘‘(C) If the debtor can demonstrate to the satisfaction 
of the court that the situation giving rise to the lessor’s cer-
tification under paragraph (1) did not exist or has been 
remedied, the stay provided under subsection (a)(3) shall 
remain in effect until the termination of the stay under this 
section. 
‘‘(D) If the debtor cannot demonstrate to the satisfac-
tion of the court that the situation giving rise to the lessor’s 
certification under paragraph (1) did not exist or has been 
remedied—
‘‘(i) relief from the stay provided under sub-
section (a)(3) shall not be required to enable the lessor 
to proceed with the eviction; and
159
‘‘(ii) the clerk of the court shall immediately 
serve upon the lessor and the debtor a certified copy 
of the court’s order upholding the lessor’s certification. 
‘‘(3) If the debtor fails to file, within 15 days, an objec-
tion under paragraph (2)(A)—
‘‘(A) subsection (b)(23) shall apply immediately 
upon such failure and relief from the stay provided 
under subsection (a)(3) shall not be required to enable 
the lessor to complete the process to recover full posses-
sion of the property; and 
‘‘(B) the clerk of the court shall immediately 
serve upon the lessor and the debtor a certified copy 
of the docket indicating such failure.’’. 
SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY 
DISCHARGES. 
Title 11, United States Code, is amended—
(1) in section 727(a)(8), by striking ‘‘six’’ and 
inserting ‘‘8’’; and 
(2) in section 1328, by inserting after subsection 
(e) the following: 
‘‘(f) Notwithstanding subsections (a) and (b), the court 
shall not grant a discharge of all debts provided for in the 
plan or disallowed under section 502, if the debtor has re-
ceived a discharge—
160
‘‘(1) in a case filed under chapter 7, 11, or 12 
of this title during the 4-year period preceding the 
date of the order for relief under this chapter, or 
‘‘(2) in a case filed under chapter 13 of this title 
during the 2-year period preceding the date of such 
order.’’. 
SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND 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; 
‘‘(x) kitchenware; 
‘‘(xi) educational materials and educational 
equipment primarily for the use of minor dependent 
children of the debtor;
161
‘‘(xii) medical equipment and supplies; 
‘‘(xiii) furniture exclusively for the use of minor 
children, or elderly or disabled dependents of the debt-
or; 
‘‘(xiv) personal effects (including the toys and 
hobby equipment of minor dependent children and 
wedding rings) of the debtor and the dependents of the 
debtor; and 
‘‘(xv) 1 personal computer and related equip-
ment. 
‘‘(B) The term ‘household goods’ does not include—
‘‘(i) works of art (unless by or of the debtor, or 
any relative of the debtor); 
‘‘(ii) electronic entertainment equipment with a 
fair market value of more than $500 in the aggregate 
(except 1 television, 1 radio, and 1 VCR); 
‘‘(iii) items acquired as antiques with a fair 
market value of more than $500 in the aggregate; 
‘‘(iv) jewelry with a fair market value of more 
than $500 in the aggregate (except wedding rings); 
and 
‘‘(v) a computer (except as otherwise provided 
for in this section), motor vehicle (including a tractor 
or lawn tractor), boat, or a motorized recreational de-
vice, conveyance, vehicle, watercraft, or aircraft.’’.
162
(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 subsection (a), 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 such section 
522(f)(4) has had on debtors and on the bankruptcy courts. 
Such report may include recommendations for amendments 
to such section 522(f)(4) consistent with the Director’s find-
ings.
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);’’.
163
(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 section 102, 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)(A) If, within the 90 days before the commence-
ment of a voluntary case, a creditor supplies the debtor in
164
at least 2 communications sent to the debtor with the cur-
rent account number of the debtor and the address at which 
such creditor requests to receive correspondence, then any 
notice required by this title to be sent by the debtor to such 
creditor shall be sent to such address and shall include such 
account number. 
‘‘(B) If a creditor would be in violation of applicable 
nonbankruptcy law by sending any such communication 
within such 90-day period and if such creditor supplies the 
debtor in the last 2 communications with the current ac-
count number of the debtor and the address at which such 
creditor requests to receive correspondence, then any notice 
required by this title to be sent by the debtor to such creditor 
shall be sent to such address and shall include such account 
number.’’; and 
(2) by adding at the end the following: 
‘‘(e)(1) In a case under chapter 7 or 13 of this title 
of a debtor who is an individual, a creditor at any time 
may both file with the court and serve on the debtor a notice 
of address to be used to provide notice in such case to such 
creditor. 
‘‘(2) Any notice in such case required to be provided 
to such creditor by the debtor or the court later than 5 days 
after the court and the debtor receive such creditor’s notice 
of address, shall be provided to such address.
165
‘‘(f)(1) An entity may file with any bankruptcy court 
a notice of address to be used by all the bankruptcy courts 
or by particular bankruptcy courts, as so specified by such 
entity at the time such notice is filed, to provide notice to 
such entity in all cases under chapters 7 and 13 pending 
in the courts with respect to which such notice is filed, in 
which such entity is a creditor. 
‘‘(2) In any case filed under chapter 7 or 13, any no-
tice required to be provided by a court with respect to which 
a notice is filed under paragraph (1), to such entity later 
than 30 days after the filing of such notice under paragraph 
(1) shall be provided to such address unless with respect 
to a particular case a different address is specified in a 
notice filed and served in accordance with subsection (e). 
‘‘(3) A notice filed under paragraph (1) may be with-
drawn by such entity. 
‘‘(g)(1) Notice provided to a creditor by the debtor or 
the court other than in accordance with this section (exclud-
ing this subsection) shall not be effective notice until such 
notice is brought to the attention of such creditor. If such 
creditor designates a person or an organizational subdivi-
sion of such creditor to be responsible for receiving notices 
under this title and establishes reasonable procedures so that 
such notices receivable by such creditor are to be delivered 
to such person or such subdivision, then a notice provided
166
to such creditor other than in accordance with this section 
(excluding this subsection) shall not be considered to have 
been brought to the attention of such creditor until such no-
tice is received by such person or such subdivision. 
‘‘(2) A monetary penalty may not be imposed on a 
creditor for a violation of a stay in effect under section 
362(a) (including a monetary penalty imposed under sec-
tion 362(k)) or for failure to comply with section 542 or 
543 unless the conduct that is the basis of such violation 
or of such failure occurs after such creditor receives notice 
effective under this section of the order for relief.’’. 
(b) DEBTOR’S DUTIES.—Section 521 of title 11, 
United States Code, as amended by sections 106, 225, and 
305, is amended—
(1) in subsection (a), as so designated by section 
106, by amending paragraph (1) to read as follows: 
‘‘(1) file—
‘‘(A) a list of creditors; and 
‘‘(B) unless the court orders otherwise—
‘‘(i) a schedule of assets and liabilities; 
‘‘(ii) a schedule of current income and 
current expenditures; 
‘‘(iii) a statement of the debtor’s finan-
cial affairs and, if section 342(b) applies, a 
certificate—
167
‘‘(I) of an attorney whose name is 
indicated on the petition as the attor-
ney for the debtor, or a bankruptcy pe-
tition preparer signing the petition 
under section 110(b)(1), indicating 
that such attorney or the bankruptcy 
petition preparer delivered to the debt-
or the notice required by section 
342(b); or 
‘‘(II) if no attorney is so indi-
cated, and no bankruptcy petition pre-
parer signed the petition, of the debtor 
that such notice was received and read 
by the debtor; 
‘‘(iv) copies of all payment advices or 
other evidence of payment received within 
60 days before the date of the filing of the 
petition, by the debtor from any employer of 
the debtor; 
‘‘(v) a statement of the amount of 
monthly net income, itemized to show how 
the amount is calculated; and 
‘‘(vi) a statement disclosing any rea-
sonably anticipated increase in income or 
expenditures over the 12-month period fol-
168
lowing the date of the filing of the peti-
tion;’’; and 
(2) by adding at the end the following: 
‘‘(e)(1) If the debtor in a case under chapter 7 or 13 
is an individual and if a creditor files with the court at 
any time a request to receive a copy of the petition, sched-
ules, and statement of financial affairs filed by the debtor, 
then the court shall make such petition, such schedules, and 
such statement available to such creditor.
‘‘(2)(A) The debtor shall provide—
‘‘(i) not later than 7 days before the date first 
set for the first meeting of creditors, to the trustee a 
copy of the Federal income tax return required under 
applicable law (or at the election of the debtor, a 
transcript of such return) for the most recent tax year 
ending immediately before the commencement of the 
case and for which a Federal income tax return was 
filed; and 
‘‘(ii) at the same time the debtor complies with 
clause (i), a copy of such return (or if elected under 
clause (i), such transcript) to any creditor that timely 
requests such copy. 
‘‘(B) If the debtor fails to comply with clause (i) or 
(ii) of subparagraph (A), the court shall dismiss the case
169
unless the debtor demonstrates that the failure to so comply 
is due to circumstances beyond the control of the debtor. 
‘‘(C) If a creditor requests a copy of such tax return 
or such transcript and if the debtor fails to provide a copy 
of such tax return or such transcript to such creditor at 
the time the debtor provides such tax return or such tran-
script to the trustee, then the court shall dismiss the case 
unless the debtor demonstrates that the failure to provide 
a copy of such tax return or such transcript is due to cir-
cumstances beyond the control of the debtor. 
‘‘(3) If a creditor in a case under chapter 13 files with 
the court at any time a request to receive a copy of the 
plan filed by the debtor, then the court shall make available 
to such creditor a copy of the plan—
‘‘(A) at a reasonable cost; and 
‘‘(B) not later than 5 days after such request is 
filed. 
‘‘(f) At the request of the court, the United States trust-
ee, or any party in interest in a case under chapter 7, 11, 
or 13, a debtor who is an individual shall file with the 
court— 
‘‘(1) at the same time filed with the taxing au-
thority, a copy of each Federal income tax return re-
quired under applicable law (or at the election of the 
debtor, a transcript of such tax return) with respect
170
to each tax year of the debtor ending while the case 
is pending under such chapter; 
‘‘(2) at the same time filed with the taxing au-
thority, each Federal income tax return required 
under applicable law (or at the election of the debtor, 
a transcript of such tax return) that had not been 
filed with such authority as of the date of the com-
mencement of the case and that was subsequently filed 
for any tax year of the debtor ending in the 3-year 
period ending on the date of the commencement of the 
case; 
‘‘(3) a copy of each amendment to any Federal 
income tax return or transcript filed with the court 
under paragraph (1) or (2); and 
‘‘(4) in a case under chapter 13— 
‘‘(A) on the date that is either 90 days after 
the end of such tax year or 1 year after the date 
of the commencement of the case, whichever is 
later, if a plan is not confirmed before such later 
date; and 
‘‘(B) annually after the plan is confirmed 
and until the case is closed, not later than the 
date that is 45 days before the anniversary of the 
confirmation of the plan;