189
‘‘(A) real or personal property that the debtor 
or a dependent of the debtor uses as a residence; 
‘‘(B) a cooperative that owns property that the 
debtor or a dependent of the debtor uses as a resi-
dence; 
‘‘(C) a burial plot for the debtor or a dependent 
of the debtor; or 
‘‘(D) real or personal property that the debtor 
or dependent of the debtor claims as a homestead. 
‘‘(2)(A) The limitation under paragraph (1) shall not 
apply to an exemption claimed under subsection (b)(3)(A) 
by a family farmer for the principal residence of such 
farmer. 
‘‘(B) For purposes of paragraph (1), any amount of 
such interest does not include any interest transferred 
from a debtor’s previous principal residence (which was 
acquired prior to the beginning of such 1215-day period) 
into the debtor’s current principal residence, if the debt-
or’s previous and current residences are located in the 
same State. 
‘‘(q)(1) As a result of electing under subsection 
(b)(3)(A) to exempt property under State or local law, a 
debtor may not exempt any amount of an interest in prop-
erty described in subparagraphs (A), (B), (C), and (D)
190
of subsection (p)(1) which exceeds in the aggregate 
$125,000 if—
‘‘(A) the court determines, after notice and a 
hearing, that the debtor has been convicted of a fel-
ony (as defined in section 3156 of title 18), which 
under the circumstances, demonstrates that the fil-
ing of the case was an abuse of the provisions of this 
title; or 
‘‘(B) the debtor owes a debt arising from—
‘‘(i) any violation of the Federal securities 
laws (as defined in section 3(a)(47) of the Secu-
rities Exchange Act of 1934), any State securi-
ties laws, or any regulation or order issued 
under Federal securities laws or State securities 
laws; 
‘‘(ii) fraud, deceit, or manipulation in a fi-
duciary capacity or in connection with the pur-
chase or sale of any security registered under 
section 12 or 15(d) of the Securities Exchange 
Act of 1934 or under section 6 of the Securities 
Act of 1933; 
‘‘(iii) any civil remedy under section 1964 
of title 18; or 
‘‘(iv) any criminal act, intentional tort, or 
willful or reckless misconduct that caused seri-
191
ous physical injury or death to another indi-
vidual in the preceding 5 years. 
‘‘(2) Paragraph (1) shall not apply to the extent the 
amount of an interest in property described in subpara-
graphs (A), (B), (C), and (D) of subsection (p)(1) is rea-
sonably necessary for the support of the debtor and any 
dependent of the debtor.’’. 
(b) ADJUSTMENT
OF DOLLAR AMOUNTS.—Para-
graphs (1) and (2) of section 104(b) of title 11, United 
States Code, as amended by section 224, are amended by 
inserting ‘‘522(p), 522(q),’’ after ‘‘522(n),’’. 
SEC. 323. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICI-
PANT CONTRIBUTIONS AND OTHER PROP-
ERTY FROM THE ESTATE. 
Section 541(b) of title 11, United States Code, as 
amended by section 225, is amended by adding after para-
graph (6), as added by section 225(a)(1)(C), the following: 
‘‘(7) any amount—
‘‘(A) withheld by an employer from the 
wages of employees for payment as contribu-
tions— 
‘‘(i) to—
‘‘(I) an employee benefit plan 
that is subject to title I of the Em-
ployee Retirement Income Security
192
Act of 1974 or under an employee 
benefit plan which is a governmental 
plan under section 414(d) of the In-
ternal Revenue Code of 1986; 
‘‘(II) a deferred compensation 
plan under section 457 of the Internal 
Revenue Code of 1986; or 
‘‘(III) a tax-deferred annuity 
under section 403(b) of the Internal 
Revenue Code of 1986; 
except that such amount under this sub-
paragraph shall not constitute disposable 
income as defined in section 1325(b)(2); or 
‘‘(ii) to a health insurance plan regu-
lated by State law whether or not subject 
to such title; or 
‘‘(B) received by an employer from employ-
ees for payment as contributions— 
‘‘(i) to—
‘‘(I) an employee benefit plan 
that is subject to title I of the Em-
ployee Retirement Income Security 
Act of 1974 or under an employee 
benefit plan which is a governmental
193
plan under section 414(d) of the In-
ternal Revenue Code of 1986; 
‘‘(II) a deferred compensation 
plan under section 457 of the Internal 
Revenue Code of 1986; or 
‘‘(III) a tax-deferred annuity 
under section 403(b) of the Internal 
Revenue Code of 1986; 
except that such amount under this sub-
paragraph shall not constitute disposable 
income, as defined in section 1325(b)(2); 
or 
‘‘(ii) to a health insurance plan regu-
lated by State law whether or not subject 
to such title;’’. 
SEC. 324. EXCLUSIVE JURISDICTION IN MATTERS INVOLV-
ING BANKRUPTCY PROFESSIONALS. 
(a) IN GENERAL.—Section 1334 of title 28, United 
States Code, is amended—
(1) in subsection (b), by striking ‘‘Notwith-
standing’’ and inserting ‘‘Except as provided in sub-
section (e)(2), and notwithstanding’’; and 
(2) by striking subsection (e) and inserting the 
following:
194
‘‘(e) The district court in which a case under title 
11 is commenced or is pending shall have exclusive juris-
diction—
‘‘(1) of all the property, wherever located, of the 
debtor as of the commencement of such case, and of 
property of the estate; and 
‘‘(2) over all claims or causes of action that in-
volve construction of section 327 of title 11, United 
States Code, or rules relating to disclosure require-
ments under section 327.’’. 
(b) APPLICABILITY.—This section shall only apply to 
cases filed after the date of enactment of this Act. 
SEC. 325. UNITED STATES TRUSTEE PROGRAM FILING FEE 
INCREASE. 
(a) ACTIONS UNDER CHAPTER 7 OR 13 OF TITLE 
11, UNITED STATES CODE.—Section 1930(a) of title 28, 
United States Code, is amended by striking paragraph (1) 
and inserting the following: 
‘‘(1) For a case commenced—
‘‘(A) under chapter 7 of title 11, $160; or 
‘‘(B) under chapter 13 of title 11, $150.’’. 
(b) UNITED STATES TRUSTEE SYSTEM FUND.—Sec-
tion 589a(b) of title 28, United States Code, is amended—
(1) by striking paragraph (1) and inserting the 
following:
195
‘‘(1)(A) 40.63 percent of the fees collected 
under section 1930(a)(1)(A) of this title in cases 
commenced under chapter 7 of title 11; and 
‘‘(B) 70.00 percent of the fees collected under 
section 1930(a)(1)(B) of this title in cases com-
menced under chapter 13 of title 11;’’; 
(2) in paragraph (2), by striking ‘‘one-half’’ 
and inserting ‘‘three-fourths’’; and 
(3) in paragraph (4), by striking ‘‘one-half’’ 
and inserting ‘‘100 percent’’. 
(c) COLLECTION AND DEPOSIT OF MISCELLANEOUS 
BANKRUPTCY FEES.—Section 406(b) of the Judiciary Ap-
propriations Act, 1990 (28 U.S.C. 1931 note) is amended 
by striking ‘‘pursuant to 28 U.S.C. section 1930(b)’’ and 
all that follows through ‘‘28 U.S.C. section 1931’’ and in-
serting ‘‘under section 1930(b) of title 28, United States 
Code, and 31.25 percent of the fees collected under section 
1930(a)(1)(A) of that title, 30.00 percent of the fees col-
lected under section 1930(a)(1)(B) of that title, and 25 
percent of the fees collected under section 1930(a)(3) of 
that title shall be deposited as offsetting receipts to the 
fund established under section 1931 of that title’’. 
SEC. 326. SHARING OF COMPENSATION. 
Section 504 of title 11, United States Code, is 
amended by adding at the end the following:
196
‘‘(c) This section shall not apply with respect to shar-
ing, or agreeing to share, compensation with a bona fide 
public service attorney referral program that operates in 
accordance with non-Federal law regulating attorney re-
ferral services and with rules of professional responsibility 
applicable to attorney acceptance of referrals.’’. 
SEC. 327. FAIR VALUATION OF COLLATERAL. 
Section 506(a) of title 11, United States Code, is 
amended by—
(1) inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(2) by adding at the end the following: 
‘‘(2) If the debtor is an individual in a case under 
chapter 7 or 13, such value with respect to personal prop-
erty securing an allowed claim shall be determined based 
on the replacement value of such property as of the date 
of the filing of the petition without deduction for costs 
of sale or marketing. With respect to property acquired 
for personal, family, or household purposes, replacement 
value shall mean the price a retail merchant would charge 
for property of that kind considering the age and condition 
of the property at the time value is determined.’’.
197
SEC. 328. DEFAULTS BASED ON NONMONETARY OBLIGA-
TIONS. 
(a) EXECUTORY
CONTRACTS
AND
UNEXPIRED 
LEASES.—Section 365 of title 11, United States Code, is 
amended—
(1) in subsection (b)—
(A) in paragraph (1)(A), by striking the 
semicolon at the end and inserting the fol-
lowing: ‘‘other than a default that is a breach 
of a provision relating to the satisfaction of any 
provision (other than a penalty rate or penalty 
provision) relating to a default arising from any 
failure to perform nonmonetary obligations 
under an unexpired lease of real property, if it 
is impossible for the trustee to cure such de-
fault by performing nonmonetary acts at and 
after the time of assumption, except that if 
such default arises from a failure to operate in 
accordance with a nonresidential real property 
lease, then such default shall be cured by per-
formance at and after the time of assumption 
in accordance with such lease, and pecuniary 
losses resulting from such default shall be com-
pensated in accordance with the provisions of 
this paragraph;’’; and
198
(B) in paragraph (2)(D), by striking ‘‘pen-
alty rate or provision’’ and inserting ‘‘penalty 
rate or penalty provision’’; 
(2) in subsection (c)—
(A) in paragraph (2), by inserting ‘‘or’’ at 
the end; 
(B) in paragraph (3), by striking ‘‘; or’’ at 
the end and inserting a period; and 
(C) by striking paragraph (4); 
(3) in subsection (d)—
(A) by striking paragraphs (5) through 
(9); and 
(B) by redesignating paragraph (10) as 
paragraph (5); and 
(4) in subsection (f)(1) by striking ‘‘; except 
that’’ and all that follows through the end of the 
paragraph and inserting a period. 
(b) IMPAIRMENT OF CLAIMS OR INTERESTS.—Sec-
tion 1124(2) of title 11, United States Code, is amend-
ed—
(1) in subparagraph (A), by inserting ‘‘or of a 
kind that section 365(b)(2) expressly does not re-
quire to be cured’’ before the semicolon at the end; 
(2) in subparagraph (C), by striking ‘‘and’’ at 
the end;
199
(3) by redesignating subparagraph (D) as sub-
paragraph (E); and 
(4) by inserting after subparagraph (C) the fol-
lowing: 
‘‘(D) if such claim or such interest arises 
from any failure to perform a nonmonetary ob-
ligation, other than a default arising from fail-
ure to operate a nonresidential real property 
lease subject to section 365(b)(1)(A), com-
pensates the holder of such claim or such inter-
est (other than the debtor or an insider) for any 
actual pecuniary loss incurred by such holder as 
a result of such failure; and’’. 
SEC. 329. CLARIFICATION OF POSTPETITION WAGES AND 
BENEFITS. 
Section 503(b)(1)(A) of title 11, United States Code, 
is amended to read as follows: 
‘‘(A) the actual, necessary costs and expenses of pre-
serving the estate including—
‘‘(i) wages, salaries, and commissions for 
services rendered after the commencement of 
the case; and 
‘‘(ii) wages and benefits awarded pursuant 
to a judicial proceeding or a proceeding of the 
National Labor Relations Board as back pay
200
attributable to any period of time occurring 
after commencement of the case under this 
title, as a result of a violation of Federal or 
State law by the debtor, without regard to the 
time of the occurrence of unlawful conduct on 
which such award is based or to whether any 
services were rendered, if the court determines 
that payment of wages and benefits by reason 
of the operation of this clause will not substan-
tially increase the probability of layoff or termi-
nation of current employees, or of nonpayment 
of domestic support obligations, during the case 
under this title;’’. 
SEC. 330. DELAY OF DISCHARGE DURING PENDENCY OF 
CERTAIN PROCEEDINGS. 
(a) CHAPTER 7.—Section 727(a) of title 11, United 
States Code, as amended by section 106, is amended—
(1) in paragraph (10), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (11) by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by inserting after paragraph (11) the fol-
lowing: 
‘‘(12) the court after notice and a hearing held 
not more than 10 days before the date of the entry
201
of the order granting the discharge finds that there 
is reasonable cause to believe that—
‘‘(A) section 522(q)(1) may be applicable 
to the debtor; and 
‘‘(B) there is pending any proceeding in 
which the debtor may be found guilty of a fel-
ony 
of 
the 
kind 
described 
in 
section 
522(q)(1)(A) or liable for a debt of the kind de-
scribed in section 522(q)(1)(B).’’. 
(b) CHAPTER 11.—Section 1141(d) of title 11, 
United States Code, as amended by section 321, is amend-
ed by adding at the end the following: 
‘‘(C) unless after notice and a hearing held not 
more than 10 days before the date of the entry of 
the order granting the discharge, the court finds 
that there is no reasonable cause to believe that—
‘‘(i) section 522(q)(1) may be applicable to 
the debtor; and 
‘‘(ii) there is pending any proceeding in 
which the debtor may be found guilty of a fel-
ony 
of 
the 
kind 
described 
in 
section 
522(q)(1)(A) or liable for a debt of the kind de-
scribed in section 522(q)(1)(B).’’. 
(c) CHAPTER 12.—Section 1228 of title 11, United 
States Code, is amended—
202
(1) in subsection (a) by striking ‘‘As’’ and in-
serting ‘‘Subject to subsection (d), as’’, 
(2) in subsection (b) by striking ‘‘At’’ and in-
serting ‘‘Subject to subsection (d), at’’, and 
(3) by adding at the end the following: 
‘‘(f) The court may not grant a discharge under this 
chapter unless the court after notice and a hearing held 
not more than 10 days before the date of the entry of 
the order granting the discharge finds that there is no rea-
sonable cause to believe that—
‘‘(1) section 522(q)(1) may be applicable to the 
debtor; and 
‘‘(2) there is pending any proceeding in which 
the debtor may be found guilty of a felony of the 
kind described in section 522(q)(1)(A) or liable for 
a 
debt 
of 
the 
kind 
described 
in 
section 
522(q)(1)(B).’’. 
(d) CHAPTER 13.—Section 1328 of title 11, United 
States Code, as amended by section 106, is amended—
(1) in subsection (a) by striking ‘‘As’’ and in-
serting ‘‘Subject to subsection (d), as’’, 
(2) in subsection (b) by striking ‘‘At’’ and in-
serting ‘‘Subject to subsection (d), at’’, and 
(3) by adding at the end the following:
203
‘‘(h) The court may not grant a discharge under this 
chapter unless the court after notice and a hearing held 
not more than 10 days before the date of the entry of 
the order granting the discharge finds that there is no rea-
sonable cause to believe that—
‘‘(1) section 522(q)(1) may be applicable to the 
debtor; and 
‘‘(2) there is pending any proceeding in which 
the debtor may be found guilty of a felony of the 
kind described in section 522(q)(1)(A) or liable for 
a 
debt 
of 
the 
kind 
described 
in 
section 
522(q)(1)(B).’’. 
TITLE IV—GENERAL AND SMALL 
BUSINESS BANKRUPTCY PRO-
VISIONS 
Subtitle A—General Business 
Bankruptcy Provisions 
SEC. 401. ADEQUATE PROTECTION FOR INVESTORS. 
(a) DEFINITION.—Section 101 of title 11, United 
States Code, is amended by inserting after paragraph (48) 
the following: 
‘‘(48A) ‘securities self regulatory organization’ 
means either a securities association registered with 
the Securities and Exchange Commission under sec-
tion 15A of the Securities Exchange Act of 1934 or
204
a national securities exchange registered with the 
Securities and Exchange Commission under section 
6 of the Securities Exchange Act of 1934;’’. 
(b) AUTOMATIC STAY.—Section 362(b) of title 11, 
United States Code, as amended by sections 224, 303, and 
311, is amended by inserting after paragraph (24) the fol-
lowing: 
‘‘(25) under subsection (a), of—
‘‘(A) the commencement or continuation of 
an investigation or action by a securities self 
regulatory organization to enforce such organi-
zation’s regulatory power; 
‘‘(B) the enforcement of an order or deci-
sion, other than for monetary sanctions, ob-
tained in an action by such securities self regu-
latory organization to enforce such organiza-
tion’s regulatory power; or 
‘‘(C) any act taken by such securities self 
regulatory organization to delist, delete, or 
refuse to permit quotation of any stock that 
does not meet applicable regulatory require-
ments;’’.