IB
Union Calendar No. 66
106TH CONGRESS
1ST SESSION
H. R. 833
[Report No. 106–123]
To amend title 11 of the United States Code, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 24, 1999
Mr. GEKAS (for himself, Mr. BOUCHER, Mr. MCCOLLUM, Mr. MORAN of Vir-
ginia, Mr. ARMEY, Mr. FROST, Mr. MENENDEZ, Ms. PRYCE of Ohio,
Mrs. FOWLER, Mr. KENNEDY of Rhode Island, Mr. DREIER, Mr. CANADY
of Florida, Mr. GOODLATTE, Mr. CHABOT, Mr. BRYANT, Mr. ROTHMAN,
Mrs. BONO, Mr. ANDREWS, Mr. BAKER, Mr. BEREUTER, Mr.
CUNNINGHAM, Mr. DOOLEY of California, Ms. DUNN, Ms. HOOLEY of
Oregon, Mrs. KELLY, Mr. LARGENT, Mr. MALONEY of Connecticut, Mr.
RILEY, Mr. ROEMER, Mr. SESSIONS, Mr. SMITH of Washington, Mrs.
TAUSCHER, Ms. VELA´ZQUEZ, Mr. WYNN, Mr. DAVIS of Virginia, Mr.
DAVIS of Florida, and Mr. HALL of Texas) introduced the following bill;
which was referred to the Committee on the Judiciary, and in addition
to the Committee on Banking and Financial Services, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee con-
cerned
APRIL 29, 1999
Additional sponsors: Mr. COOK, Mr. COOKSEY, Mr. ENGLISH, Mr. GOODE, Mr.
HILL of Montana, Mr. HILLEARY, Mr. METCALF, Mr. OXLEY, Mr.
ROYCE, Mr. SISISKY, Mr. STUMP, Mr. TANNER, Mr. TAUZIN, Mr. BAR-
TON of Texas, Mr. BUYER, Mrs. CAPPS, Mr. EHRLICH, Mr. GRAHAM, Mr.
HUNTER, Mr. SMITH of Michigan, Mr. STRICKLAND, Mr. SUNUNU, Mr.
TALENT, Mr. BLILEY, Mr. BURTON of Indiana, Mr. CRANE, Mr. HOYER,
Mr. PICKETT, Mr. WELLER, Mr. BOEHNER, Mr. BLUMENAUER, Mr.
FOLEY, Mr. HOLDEN, Mr. ADERHOLT, Mr. JENKINS, Mr. CONDIT, Mr.
CRAMER, Mr. DEUTSCH, Mr. LINDER, Mrs. MYRICK, Mr. NETHERCUTT,
Mr. PETERSON of Pennsylvania, Mr. TERRY, Mr. WELDON of Florida,
Mr. BARR of Georgia, Ms. EDDIE BERNICE JOHNSON of Texas, Mr.
KLECZKA, 
Mrs. 
NORTHUP, 
Mr. 
PASTOR, 
Ms. 
BERKLEY, 
Mr.
BLAGOJEVICH, Mr. LUCAS of Kentucky, Mr. SENSENBRENNER, Mr.
BURR of North Carolina, Mr. NEY, Mr. SANDLIN, Mr. BOYD, Mr. COL-
LINS, Mr. GORDON, Mr. MCINTOSH, Mr. SCARBOROUGH, Mr. BARCIA,
Mrs. CHENOWETH, Mr. UPTON, Mr. CAMP, Mr. SIMPSON, Mr. CASTLE,
Mr. JOHN, Mr. NORWOOD, and Mr. SWEENEY
Deleted sponsor: Mr. BRADY of Pennsylvania (added March 23, 1999; deleted
April 28, 1999)
APRIL 29, 1999
Reported from the Committee on the Judiciary with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
APRIL 29, 1999
Referral to the Committee on Banking and Financial Services extended for
a period ending not later than April 29, 1999
APRIL 29, 1999
Committee on Banking and 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 24, 1999]
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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Bankruptcy Reform Act of 1999’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—CONSUMER BANKRUPTCY PROVISIONS
Subtitle A—Needs based bankruptcy
Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Notice of alternatives.
Sec. 104. Debtor financial management training test program.
Subtitle B—Consumer Bankruptcy Protections
Sec. 105. Definitions.
Sec. 106. Enforcement.
Sec. 107. Sense of the congress.
Sec. 108. Discouraging abusive reaffirmation practices.
Sec. 109. Promotion of alternative dispute resolution.
Sec. 110. Enhanced disclosure for credit extensions secured by a dwelling.
Sec. 111. Dual use debit card.
Sec. 112. Enhanced disclosures under an open-end credit plan.
Sec. 113. Protection of savings earmarked for the postsecondary education of chil-
dren.
Sec. 114. Effect of discharge.
Sec. 115. Limiting trustee liability.
Sec. 116. Reinforce the fresh start.
Sec. 117. Discouraging bad faith repeat filings.
Sec. 118. Curbing abusive filings.
Sec. 119. Debtor retention of personal property security.
Sec. 120. Relief from the automatic stay when the debtor does not complete in-
tended surrender of consumer debt collateral.
Sec. 121. Giving secured creditors fair treatment in chapter 13.
Sec. 122. Restraining abusive purchases on secured credit.
Sec. 123. Fair valuation of collateral.
Sec. 124. Domiciliary requirements for exemptions.
Sec. 125. Restrictions on certain exempt property obtained through fraud.
Sec. 126. Rolling stock equipment.
Sec. 127. Discharge under chapter 13.
Sec. 128. Bankruptcy judgeships.
Sec. 129. Additional amendments to title 11, United States Code.
Sec. 130. Amendment to section 1325 of title 11, United States Code.
Sec. 131. Application of the codebtor stay only when the stay protects the debtor.
Sec. 132. Adequate protection for investors.
Sec. 133. Limitation on luxury goods.
Sec. 134. Giving debtors the ability to keep leased personal property by assump-
tion.
Sec. 135. Adequate protection of lessors and purchase money secured creditors.
Sec. 136. Automatic stay.
Sec. 137. Extend period between bankruptcy discharges.
Sec. 138. Definition of domestic support obligation.
Sec. 139. Priorities for claims for domestic support obligations.
Sec. 140. Requirements to obtain confirmation and discharge in cases involving
domestic support obligations.
Sec. 141. Exceptions to automatic stay in domestic support obligation pro-
ceedings.
Sec. 142. Nondischargeability of certain debts for alimony, maintenance, and
support.
Sec. 143. Continued liability of property.
Sec. 144. Protection of domestic support claims against preferential transfer mo-
tions.
Sec. 145. Clarification of meaning of household goods.
Sec. 146. Nondischargeable debts.
Sec. 147. Monetary limitation on certain exempt property.
Sec. 148. Bankruptcy fees.
Sec. 149. Collection of child support.
Sec. 150. Excluding employee benefit plan participant contributions and other
property from the estate.
Sec. 151. Clarification of postpetition wages and benefits.
Sec. 152. Exceptions to automatic stay in domestic support obligation pro-
ceedings.
Sec. 153. Automatic stay inapplicable to certain proceedings against the debtor.
TITLE II—DISCOURAGING BANKRUPTCY ABUSE
Sec. 201. Reenactment of chapter 12.
Sec. 202. Meetings of creditors and equity security holders.
Sec. 203. Protection of retirement savings in bankruptcy.
Sec. 204. Protection of refinance of security interest.
Sec. 205. Executory contracts and unexpired leases.
Sec. 206. Creditors and equity security holders committees.
Sec. 207. Amendment to section 546 of title 11, United States Code.
Sec. 208. Limitation.
Sec. 209. Amendment to section 330(a) of title 11, United States Code.
Sec. 210. Postpetition disclosure and solicitation.
Sec. 211. Preferences.
Sec. 212. Venue of certain proceedings.
Sec. 213. Period for filing plan under chapter 11.
Sec. 214. Fees arising from certain ownership interests.
Sec. 215. Claims relating to insurance deposits in cases ancillary to foreign pro-
ceedings.
Sec. 216. Defaults based on nonmonetary obligations.
Sec. 217. Sharing of compensation.
Sec. 218. Priority for administrative expenses.
TITLE III—GENERAL BUSINESS BANKRUPTCY PROVISIONS
Sec. 301. Definition of disinterested person.
Sec. 302. Miscellaneous improvements.
Sec. 303. Extensions.
Sec. 304. Local filing of bankruptcy cases.
Sec. 305. Permitting assumption of contracts.
TITLE IV SMALL BUSINESS BANKRUPTCY PROVISIONS
Sec. 401. Flexible rules for disclosure Statement and plan.
Sec. 402. Definitions.
Sec. 403. Standard form disclosure Statement and plan.
Sec. 404. Uniform national reporting requirements.
Sec. 405. Uniform reporting rules and forms for small business cases.
Sec. 406. Duties in small business cases.
Sec. 407. Plan filing and confirmation deadlines.
Sec. 408. Plan confirmation deadline.
Sec. 409. Prohibition against extension of time.
Sec. 410. Duties of the United States trustee.
Sec. 411. Scheduling conferences.
Sec. 412. Serial filer provisions.
Sec. 413. Expanded grounds for dismissal or conversion and appointment of
trustee or examiner.
Sec. 414. Study of operation of title 11 of the United States Code with respect
to small businesses.
Sec. 415. Payment of interest.
TITLE V—MUNICIPAL BANKRUPTCY PROVISIONS
Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.
TITLE VI—STREAMLINING THE BANKRUPTCY SYSTEM
Sec. 601. Creditor representation at first meeting of creditors.
Sec. 602. Audit procedures.
Sec. 603. Giving creditors fair notice in chapter 7 and 13 cases.
Sec. 604. Dismissal for failure to timely file schedules or provide required infor-
mation.
Sec. 605. Adequate time to prepare for hearing on confirmation of the plan.
Sec. 606. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 607. Sense of the Congress regarding expansion of rule 9011 of the Federal
Rules of Bankruptcy Procedure.
Sec. 608. Elimination of certain fees payable in chapter 11 bankruptcy cases.
Sec. 609. Study of bankruptcy impact of credit extended to dependent students.
Sec. 610. Prompt relief from stay in individual cases.
Sec. 611. Stopping abusive conversions from chapter 13.
Sec. 612. Bankruptcy appeals.
Sec. 613. GAO study.
TITLE VII—BANKRUPTCY DATA
Sec. 701. Improved bankruptcy statistics.
Sec. 702. Uniform rules for the collection of bankruptcy data.
Sec. 703. Sense of the Congress regarding availability of bankruptcy data.
TITLE VIII—BANKRUPTCY TAX PROVISIONS
Sec. 801. Treatment of certain liens.
Sec. 802. Effective notice to government.
Sec. 803. Notice of request for a determination of taxes.
Sec. 804. Rate of interest on tax claims.
Sec. 805. Tolling of priority of tax claim time periods.
Sec. 806. Priority property taxes incurred.
Sec. 807. Chapter 13 discharge of fraudulent and other taxes.
Sec. 808. Chapter 11 discharge of fraudulent taxes.
Sec. 809. Stay of tax proceedings.
Sec. 810. Periodic payment of taxes in chapter 11 cases.
Sec. 811. Avoidance of statutory tax liens prohibited.
Sec. 812. Payment of taxes in the conduct of business.
Sec. 813. Tardily filed priority tax claims.
Sec. 814. Income tax returns prepared by tax authorities.
Sec. 815. Discharge of the estate’s liability for unpaid taxes.
Sec. 816. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 817. Standards for tax disclosure.
Sec. 818. Setoff of tax refunds.
TITLE IX—ANCILLARY AND OTHER CROSS-BORDER CASES
Sec. 901. Amendment to add chapter 15 to title 11, United States Code.
Sec. 902. Amendments to other chapters in title 11, United States Code.
TITLE X—FINANCIAL CONTRACT PROVISIONS
Sec. 1001. Treatment of certain agreements by conservators or ––receivers of in-
sured depository institutions.
Sec. 1002. Authority of the corporation with respect to failed and failing institu-
tions.
Sec. 1003. Amendments relating to transfers of qualified financial contracts.
Sec. 1004. Amendments relating to disaffirmance or repudiation of qualified fi-
nancial contracts.
Sec. 1005. Clarifying amendment relating to master agreements.
Sec. 1006. Federal Deposit Insurance Corporation Improvement Act of 1991.
Sec. 1007. Bankruptcy Code amendments.
Sec. 1008. Recordkeeping requirements.
Sec. 1009. Exemptions from contemporaneous execution –––requirement.
Sec. 1010. Damage measure.
Sec. 1011. Sipc stay.
Sec. 1012. Asset-backed securitizations.
Sec. 1013. Federal Reserve collateral requirements.
Sec. 1014. Effective date; application of –––amendments.
TITLE XI—TECHNICAL CORRECTIONS
Sec. 1101. Definitions.
Sec. 1102. Adjustment of dollar amounts.
Sec. 1103. Extension of time.
Sec. 1104. Technical amendments.
Sec. 1105. Penalty for persons who negligently or fraudulently prepare bank-
ruptcy petitions.
Sec. 1106. Limitation on compensation of professional persons.
Sec. 1107. Special tax provisions.
Sec. 1108. Effect of conversion.
Sec. 1109. Allowance of administrative expenses.
Sec. 1110. Priorities.
Sec. 1111. Exemptions.
Sec. 1112. Exceptions to discharge.
Sec. 1113. Effect of discharge.
Sec. 1114. Protection against discriminatory treatment.
Sec. 1115. Property of the estate.
Sec. 1116. Preferences.
Sec. 1117. Postpetition transactions.
Sec. 1118. Disposition of property of the estate.
Sec. 1119. General provisions.
Sec. 1120. Appointment of elected trustee.
Sec. 1121. Abandonment of railroad line.
Sec. 1122. Contents of plan.
Sec. 1123. Discharge under chapter 12.
Sec. 1124. Bankruptcy cases and proceedings.
Sec. 1125. Knowing disregard of bankruptcy law or rule.
Sec. 1126. Transfers made by nonprofit charitable corporations.
Sec. 1127. Prohibition on certain actions for failure to incur finance charges.
Sec. 1128. Protection of valid purchase money security interests.
Sec. 1129. Trustees.
TITLE XII—GENERAL EFFECTIVE DATE; APPLICATION OF
AMENDMENTS
Sec. 1201. Effective date; application of amendments.
TITLE I—CONSUMER
BANKRUPTCY PROVISIONS
Subtitle A—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 13’’;
and
(2) in subsection (b)—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(B) in paragraph (1), as 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
‘‘the trustee, or’’;
(II) by inserting ‘‘, or, with the
debtor’s consent, convert such a case to
a case under chapter 13 of this title,’’
after ‘‘consumer debts’’; and
(III) 
by 
striking 
‘‘substantial
abuse’’ and inserting ‘‘abuse’’; and
(ii) by striking the second and third
sentences and inserting 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 less estimated administra-
tive expenses and reasonable attorneys’ fees, and amounts
set forth in clauses (ii) for monthly expenses (which shall
include, if applicable, the continuation of actual expenses
of a dependent child under the age of 18 for tuition, books,
and required fees at a private elementary or secondary
school, not exceeding $10,000 per year, which amount shall
be adjusted pursuant to section 104(b)), (iii) for monthly
payments on account of secured debts, and (iv) for monthly
unsecured priority debt payments, and multiplied by 60
months is not less than $6,000.
‘‘(ii) 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 applicable monthly expenses for the categories specifi-
cally listed as Other Necessary Expenses issued by the Inter-
nal Revenue Service for the area in which the debtor resides,
as in effect on the date of the entry of the order for relief,
for the debtor, the dependents of the debtor, and the spouse
of the debtor in a joint case, if the spouse is not otherwise
a dependent. In addition, if it is demonstrated that it is
reasonable and necessary, the debtor may also subtract an
allowance of up to 5% of the food and clothing categories
as specified by the National Standards issued by the Inter-
nal Revenue Service. Notwithstanding any other provision
of this clause, the debtor’s monthly expenses shall not in-
clude any payments for debts.
‘‘(iii) The debtor’s average monthly payments on ac-
count of secured debts shall be calculated as the total of all
amounts scheduled as contractually due to secured creditors
in each month of the 60 months following the date of the
petition, and dividing that total by 60 months.
‘‘(iv) The debtor’s monthly unsecured priority debt
payments (including payments for priority child support
and alimony claims) shall be calculated as the total amount
of unsecured debts entitled to priority, and dividing the
total by 60 months.
‘‘(v) For the purposes of this subsection, a family or
household shall consist of the debtor, the debtor’s spouse, and
the debtor’s dependents, but not a legally separated spouse
unless the spouse files a joint case with the debtor.
‘‘(B) In any proceeding brought under this subsection,
the presumption of abuse may be rebutted only by dem-
onstrating extraordinary circumstances that require addi-
tional expenses or adjustment of current monthly income.
In order to establish extraordinary circumstances, the debt-
or must itemize each additional expense or adjustment of
income and provide documentation for such expenses or ad-
justment of income and a detailed explanation of the ex-
traordinary circumstances which make such expenses or ad-
justment of income necessary and reasonable. The debtor
shall attest under oath to the accuracy of any information
provided to demonstrate that additional expenses or adjust-
ment to income are required. The presumption of abuse may
be rebutted only if such additional expenses or adjustments
to income cause the debtor’s current monthly income less
estimated administrative expenses and reasonable attor-
neys’ fees, and the amounts set forth in clauses (ii), (iii),
and (iv) of subparagraph (A) when multiplied by 60 to be
less than $6,000.
‘‘(C) As part of the schedule of current income and
expenditures required under section 521 of this title, the
debtor shall include a statement of the debtor’s current
monthly income, and the calculations which determine
whether a presumption arises under subparagraph (A)(i),
showing how each amount is calculated. The bankruptcy
rules promulgated under section 2075 of title 28, United
States Code, shall prescribe a form for such statement and
may provide general rules on its content.
‘‘(D) No judge, United States trustee, panel trustee,
bankruptcy administrator or other party in interest shall
bring a motion under this paragraph if the debtor and the
debtor’s spouse combined, as of the date of the order for re-
lief, have current monthly total income equal to or less than
the regional median household monthly income calculated
on a semiannual basis for a household of equal size. How-
ever, for a household of more than 4 individuals, the median
income shall be that of a household of 4 individuals plus
$583 for each additional member of that household.
‘‘(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 para-
graph (2)(A)(i) does not apply or has been rebutted, the
court shall consider—
‘‘(A) whether the debtor filed the petition in bad
faith; or
‘‘(B) the totality of the circumstances (including
whether the debtor seeks to reject a 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) If a panel trustee appointed under section
586(a)(1) of title 28 or bankruptcy administrator brings
a motion for dismissal or conversion under this subsection
and the court grants that motion and finds that the action
of the counsel for the debtor in filing under this chapter
violated Rule 9011, the court shall assess damages which
may include ordering:
‘‘(i) the counsel for the debtor to reimburse the
trustee for all reasonable costs in prosecuting the mo-
tion, including reasonable attorneys’ fees.
‘‘(ii) the assessment of an appropriate civil pen-
alty against the counsel for the debtor; and
‘‘(iii) the payment of the civil penalty to the
panel trustee, bankruptcy administrator or the
United States trustee.
‘‘(B) In the case of a petition filed under sections 301,
302, or 303 of this title and supporting lists, schedules and
documents filed under section 521(a)(1) of this title, the sig-
nature of an attorney on the petition shall constitute a cer-
tificate that the attorney has—
‘‘(i) performed a reasonable investigation into
the circumstances that gave rise to the petition; and
‘‘(ii) determined that the petition, lists, sched-
ules, and documents—
‘‘(I) are well grounded in fact; and
‘‘(II) are warranted by existing law or a
good faith argument for the extension, modifica-
tion, or reversal of existing law and do not con-
stitute an abuse under paragraph (1) of this sub-
section.
‘‘(5) The court may award a debtor all reasonable costs
in contesting a motion filed by a party in interest (not in-
cluding a trustee or the United States trustee) under this
subsection (including reasonable attorneys’ fees) if—
‘‘(A) the court does not grant the motion; and
‘‘(B) the court finds that—
‘‘(i) the position of the party that brought
the motion was not substantially justified; or
‘‘(ii) the party brought the motion solely for
the purpose of coercing a debtor into waiving a
right guaranteed to the debtor under this title.
‘‘(6) However, only the court, the United States trustee,
or the trustee may file a motion to dismiss or convert a
case under this subsection if the current monthly income
of the debtor and the debtor’s spouse combined, as of the
date of the order for relief, when multiplied by 12, is less
than the highest national median family income last re-
ported by the Bureau of the Census for a family of equal
or lesser size, or in the case of a household of 1 person, the
national median household income for 1 earner. Notwith-
standing the foregoing, the national median family income
for a family of more than 4 individuals shall be the na-
tional median family income last reported by the Bureau
of the Census for a family of 4 individuals plus $583 for
each additional member of the family.
‘‘(7) In making a determination whether to dismiss
a case under this section, the court may not take into con-
sideration whether a debtor has made, or continues to make,
charitable contributions (that meet the definition of ‘chari-
table contribution’ under section 548(d)(3)) to any qualified
religious or charitable entity or organization (as that term
is defined in section 548(d)(4)).
‘‘(8) Not later than 3 years after the date of enactment
of the Bankruptcy Reform Act of 1999, the Director of the
Executive Office for United States Trustees shall submit a
report, to the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the
Senate, containing its findings regarding the utilization of
the Internal Revenue Service standards for determining the
current monthly expenses under section 707(b)(1)(A)(ii) of
title 11, United States Code, of debtors and the impact that
the application of such standards has had on debtors and
on the bankruptcy courts. Such report may include rec-
ommendations for amendments to such title, consistent with
the Director’s findings.’’.
(b) DEFINITIONS.—Section 101 of title 11, United
States Code, is amended—
(1) by inserting after paragraph (10) the fol-
lowing:
‘‘(10A) ‘current monthly income’ means the aver-
age monthly income from all sources derived which
the debtor, or in a joint case, the debtor and the debt-
or’s spouse, receive without regard to whether it is
taxable income, in the 180 days preceding the date of
determination, and includes any amount paid by
anyone other than the debtor or, in a joint case, the
debtor and the debtor’s spouse, on a regular basis to
the household expenses of the debtor or the debtor’s de-
pendents and, in a joint case, the debtor’s spouse if
not otherwise a dependent, but excludes payments to
victims of war crimes or crimes against humanity;’’;
and
(2) by inserting after paragraph (17) the fol-
lowing:
‘‘(17A) ‘estimated administrative expenses and
reasonable attorneys’ fees’ means 10 percent of pro-
jected payments under a chapter 13 plan;’’.
(c) ADMINISTRATIVE PROVISIONS.—Section 704 of
title 11, United States Code, is amended—
(1) in paragraph (8) by striking ‘‘and’’ at the
end;
(2) in paragraph (9) by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(10)(A) With respect to an individual debtor,
the trustee shall review all materials filed by the debt-
or, consider all information presented at the first
meeting of creditors, and within 10 days after the
first meeting of creditors file with the court a state-
ment as to whether the debtor’s case should be pre-
sumed to be an abuse under section 707(b) of this
title. The court shall provide a copy of such statement
to all creditors within 5 days after such statement is
filed. If, based on the filing of such statement with the
court, the trustee determines that the debtor’s case
should be presumed to be an abuse under section
707(b) of this title and if the current monthly income
of the debtor and the debtor’s spouse combined, as of
the date of the order for relief, when multiplied by 12,
is not less than the highest national median family
income reported for a family of equal or lesser size,
or in the case of a household of 1 person, the national
median household income for 1 earner, then the trust-
ee shall within 30 days of the filing of such statement,
either—
‘‘(i) file a motion to dismiss or convert
under section 707(b) of this title; or
‘‘(ii) file a statement setting forth the rea-
sons the trustee or bankruptcy administrator
does not believe that such a motion would be ap-
propriate.
‘‘(B) Notwithstanding subparagraph (A), for
purposes of this paragraph the national family in-
come for a family of more than 4 individuals shall
be the national median family income last reported
by the Bureau of the Census for a family of 4 individ-
uals plus $583 for each additional member of the
family.’’.
(d) CLERICAL AMENDMENT.—The table of sections at
the beginning of 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 13.’’.
SEC. 103. NOTICE OF ALTERNATIVES.
Section 342(b) of title 11, United States Code, is
amended to read as follows:
‘‘(b) Before the commencement of a case under this title
by an individual whose debts are primarily consumer debts,
the clerk shall give to such individual written notice
containing—
‘‘(1) a brief description of—
‘‘(A) chapters 7, 11, 12, and 13 and the
general purpose, benefits, and costs of 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 bankruptcy case shall be subject to fine,
imprisonment, or both; and
‘‘(B) all information supplied by a debtor
in connection with a bankruptcy case is subject
to examination by the Attorney General.’’.
SEC. 104. 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 are appointed under
chapter 13 of title 11 of the United States Code and who
operate financial management education programs for debt-
ors, and shall develop a financial management training
curriculum and materials that can be used to educate indi-
vidual debtors on how to better manage their finances.
(b) TEST—(1) The Director shall select 6 judicial dis-
tricts of the United States in which to test the effectiveness
of the financial management training curriculum and ma-
terials developed under subsection (a).
(2) For a 18-month period beginning not later than
270 days after the date of the enactment of this Act, such
curriculum and materials shall be, for the 6 judicial dis-
tricts selected under paragraph (1), used as the instruc-
tional course concerning personal financial management for
purposes of section 111 of this title.
(c) EVALUATION.—(1) During the 1-year period re-
ferred to in subsection (b), the Director shall evaluate the
effectiveness of—
(A) the financial management training cur-
riculum and materials developed under subsection
(a); and
(B) a sample of existing consumer education
programs such as those described in the Report of the
National Bankruptcy Review Commission (October
20, 1997) that are representative of consumer edu-
cation programs carried out by the credit industry,
by trustees serving under chapter 13 of title 11 of the
United States Code, and by consumer counselling
groups.
(2) Not later than 3 months after concluding such eval-
uation, the Director shall submit a report to the Speaker
of the House of Representatives and the President pro tem-
pore of the Senate, for referral to the appropriate commit-
tees of the Congress, containing the findings of the Director
regarding the effectiveness of such curriculum, such mate-
rials, and such programs and their costs.
Subtitle B—Consumer Bankruptcy
Protections
SEC. 105. 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 whose
non-exempt assets are less than $150,000;’’;
(2) by inserting after paragraph (4) the fol-
lowing:
‘‘(4A) ‘bankruptcy assistance’ means any goods
or services sold or otherwise provided to an assisted
person with the express or implied purpose of pro-
viding information, advice, counsel, document prepa-
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 pro-
ceeding under this title;’’; and
(3) by inserting after paragraph (12A) the fol-
lowing:
‘‘(12B) ‘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 pursuant to section 110 of this title,
but does not include any person that is any of the fol-
lowing or an officer, director, employee or agent
thereof—
‘‘(A) any nonprofit organization which is
exempt from taxation under section 501(c)(3) of
the Internal Revenue Code of 1986;
‘‘(B) any creditor of the person to the extent
the creditor is assisting the person to restructure
any debt owed by the person to the creditor; or
‘‘(C) any 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 a depository institution or
credit union;’’.
(b) CONFORMING AMENDMENT.—In section 104(b)(1)
by inserting ‘‘101(3),’’ after ‘‘sections’’.
SEC. 106. ENFORCEMENT.
(a) ENFORCEMENT.—Subchapter II of chapter 5 of
title 11, United States Code, is amended by adding at the
end the following:
‘‘§ 526. Debt relief agency enforcement
‘‘(a) A debt relief agency shall not—
‘‘(1) fail to perform any service which the debt
relief agency has told the assisted person or prospec-
tive assisted person the agency would provide that
person in connection with the preparation for or ac-
tivities during a proceeding under this title;
‘‘(2) make any statement, or counsel or advise
any assisted person to make any statement in any
document filed in a proceeding under this title, which
is untrue and misleading or which upon the exercise
of reasonable care, should be known by the debt relief
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, what services the
debt relief agency can reasonably expect to provide
that person, or the benefits an assisted person may
obtain or the difficulties the person may experience if
the person seeks relief in a proceeding pursuant to
this title; or
‘‘(4) advise an assisted person or prospective as-
sisted person to incur more debt in contemplation of
that person filing a proceeding under this title or in
order to pay an attorney or bankruptcy petition pre-
parer fee or charge for services performed as part of
preparing for or representing a debtor in a pro-
ceeding under this title.’’.
‘‘(b) ASSISTED
PERSON
WAIVERS
INVALID.—Any
waiver by any assisted person of any protection or right
provided by or under this section shall not be enforceable
against the debtor by any Federal or State court or any
other person, but may be enforced against a debt relief agen-
cy.
‘‘(c) NONCOMPLIANCE.—
‘‘(1) Any contract between a debt relief agency
and an assisted person for bankruptcy assistance
which does not comply with the material requirements
of this section shall be treated as void and may not
be enforced by any Federal or State court or by any
other person.
‘‘(2) Any debt relief agency shall be liable to an
assisted person in the amount of any fees or charges
in connection with providing bankruptcy assistance
to such person which the debt relief agency has re-
ceived, for actual damages, and for reasonable attor-
neys’ fees and costs if the debt relief agency is found,
after notice and hearing, to have—
‘‘(A) intentionally or negligently failed to
comply with any provision of this section with
respect to a bankruptcy case or related pro-
ceeding of the assisted person;
‘‘(B) provided bankruptcy assistance to an
assisted person in a case or related proceeding
which is dismissed or converted because of the
debt relief agency’s intentional or negligent fail-
ure to file bankruptcy papers, including papers
specified in section 521 of this title; or
‘‘(C) 
intentionally 
or 
negligently 
dis-
regarded the material requirements of this title
or the Federal Rules of Bankruptcy Procedure
applicable to such debt relief agency.
‘‘(3) In addition to such other remedies as are
provided under State law, whenever the chief law en-
forcement officer of a State, or an official or agency
designated by a State, has reason to believe that any
person has violated or is violating this section, the
State—
‘‘(A) may bring an action to enjoin such
violation;
‘‘(B) may bring an action on behalf of its
residents to recover the actual damages of as-
sisted persons arising from such violation, in-
cluding any liability under paragraph (2); and
‘‘(C) in the case of any successful action
under subparagraph (A) or (B), shall be award-
ed the costs of the action and reasonable attorney
fees as determined by the court.
‘‘(4) The United States District Court for any
district located in the State shall have concurrent ju-
risdiction 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 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 con-
sistent pattern or practice of violating this section,
the court may—
‘‘(A) enjoin the violation of such section; or
‘‘(B) impose an appropriate civil penalty
against such person.
‘‘(c) RELATION TO STATE LAW.—This section shall not
annul, alter, affect or exempt any person subject to those
sections from complying with any law of any State except
to the extent that such law is inconsistent with those sec-
tions, and then only to the extent of the inconsistency.’’.
(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 527, the fol-
lowing:
‘‘526. Debt relief agency enforcement.’’.
SEC. 107. SENSE OF THE CONGRESS.
It is the sense of the Congress that States should de-
velop curricula relating to the subject of personal finance,
designed for use in elementary and secondary schools.
SEC. 108. DISCOURAGING ABUSIVE REAFFIRMATION PRAC-
TICES.
Section 524 of title 11, United States Code, is
amended—
(1) in subsection (c)—
(A) in paragraph (2)—
(i) in subparagraph (A) by striking
‘‘and’’ at the end;
(ii) in subparagraph (B) by adding
‘‘and’’ at the end; and
(iii) by adding at the end the fol-
lowing:
‘‘(C) if the consideration for such agreement is
based on a wholly unsecured consumer debt (except
for debts owed to creditors defined in section
461(b)(1)(A)(iv) of title 12, United States Code), such
agreement contains a clear and conspicuous statement
which advises the debtor—
‘‘(i) that the debtor is entitled to a hearing
before the court at which the debtor shall appear
in person and at which the court will decide
whether the agreement is an undue hardship, not
in the debtor’s best interest, and not the result of
a threat by the creditor to take any action that
cannot be legally taken or that is not intended
to be taken; and
‘‘(ii) that if the debtor is represented by
counsel, the debtor may waive the debtor’s right
to such a hearing by signing a statement
waiving the hearing, stating that the debtor is
represented by counsel, and identifying such
counsel;’’; and
(B) in paragraph (6)(A)—
(i) by striking ‘‘and’’ at the end of
clause (i);
(ii) by striking the period at the end of
clause (ii) and inserting ‘‘; and’’; and
(iii) by adding at the end thereof the
following:
‘‘(iii) not entered into by the debtor as the
result of a threat by the creditor to take any ac-
tion that cannot be legally taken or that is not
intended to be taken.’’; and
(2) in the 3d sentence of subsection (d)—
(A) by striking ‘‘of this section’’ and insert-
ing a comma; and
(B) by inserting after ‘‘such agreement’’ the
following:
‘‘or if the consideration for such agreement is based on a
wholly unsecured consumer debt (except for debts owed to
creditors defined in section 461(b)(1)(A)(iv) of title 12,
United States Code) and the debtor has not waived the debt-
or’s right to a hearing on the agreement in accordance with
subsection (c)(2)(C) of this section’’.
SEC. 109. 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
wholly on unsecured consumer debts by not more than 20
percent, if the debtor can prove by clear and convincing
evidence that the claim was filed by a creditor who unrea-
sonably refused to negotiate a reasonable alternative repay-
ment schedule proposed by an approved credit counseling
agency acting on behalf of the debtor, and if—
‘‘(A) such offer was made within the period be-
ginning 60 days before the filing of the petition;
‘‘(B) such offer 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 rea-
sonable extension thereof; and
‘‘(C) no part of the debt under the alternative re-
payment schedule is nondischargeable, is entitled to
priority under section 507 of this title, or would be
paid a greater percentage in a chapter 13 proceeding
than offered by the debtor.
‘‘(2) The debtor shall have the burden of proving that
the proposed alternative repayment schedule was made in
the 60-day period specified in subparagraph (A) and that
the creditor unreasonably refused to consider the debtor’s
proposal.’’.
(b) LIMITATION ON AVOIDABILITY.—Section 547 of
title 11, United States Code, is amended by adding at the
end the following:
‘‘(h) The trustee may not avoid a transfer if such
transfer was made as a part of an alternative repayment
plan between the debtor and any creditor of the debtor cre-
ated by an approved credit counseling agency.’’.
SEC. 110. ENHANCED DISCLOSURE FOR CREDIT EXTEN-
SIONS SECURED BY A DWELLING.
(a) STUDY REQUIRED.—During the period beginning
180 days after the date of enactment of this Act and ending
18 months after the date of the enactment, the Board of
Governors of the Federal Reserve System (in this section
referred to as the ‘‘Board’’) shall conduct a study and sub-
mit to Congress a report (including recommendations for
any appropriate legislation) regarding—
(1) whether a consumer engaging in an open-end
credit transaction (as defined pursuant to section 103
of the Truth in lending Act) secured by the con-
sumer’s principal dwelling is provided adequate in-
formation under Federal law, including under section
127A of the Truth in Lending Act, regarding the tax
deductibility of interest paid on such transaction; and
(2) whether a consumer engaging in a closed-end
credit transaction (as defined pursuant to section 103
of the Truth in Lending Act) secured by the con-
sumer’s principal dwelling is provided adequate in-
formation regarding the tax deductibility of interest
paid on such transaction.
In conducting such study, the Board shall specifically con-
sider whether additional disclosures are necessary with re-
spect to such open-end or closed-end credit transactions in
which the amount of the credit extended exceeds the fair
market value of the dwelling.
(b) REGULATIONS.—If the Board determines that ad-
ditional disclosures are necessary in connection with trans-
actions described in subsection (a), the Board, pursuant to
its authority under the Truth in Lending Act, may promul-
gate regulations that would require such additional disclo-
sures. Any such regulations promulgated by the Board
under this section shall not take effect before the end of the
36-month period after the date of the enactment of this Act.
SEC. 111. DUAL USE DEBIT CARD.
(a) STUDY REQUIRED.—The Board of Governors of the
Federal Reserve System (in this section referred to as the
‘‘Board’’) shall conduct a study of existing protections pro-
vided to consumers to limit their liability for unauthorized
use of a debit card or similar access device.
(b) SPECIFIC CONSIDERATIONS.—In conducting the
study required by subsection (a), the Board shall specifi-
cally consider the following—
(1) the extent to which existing provisions of sec-
tion 909 of the Electronic Fund Transfer Act and the
Board’s implementing regulations provide adequate
unauthorized use liability protection for consumers;
(2) the extent to which any voluntary industry
rules have enhanced the level of protection afforded
consumers in connection with such unauthorized use
liability; and
(3) whether amendments to the Electronic Funds
Transfer Act or the Board’s implementing regulations
thereto are necessary to provide adequate protection
for consumers in this area.
(c) REPORT AND REGULATIONS.—Not later than 2
years after the date of the enactment of this Act, the Board
shall make public a report on its findings with respect to
the adequacy of existing protections afforded consumers
with respect to unauthorized-use liability for debit cards
and similar access devices. If the Board determines that
such protections are inadequate, the Board, pursuant to its
authority under the Electronic Funds Transfer Act, may
issue regulations to address such inadequacy. Any regula-
tions issued by the Board shall not be effective before 36
months after the date of the enactment of this Act.
SEC. 112. ENHANCED DISCLOSURES UNDER AN OPEN-END
CREDIT PLAN.
(a) INITIAL AND ANNUAL MINIMUM PAYMENT DISCLO-
SURE.—Section 127(a) of the Truth in Lending Act (15
U.S.C. 1637(a)) is amended by adding at the end the fol-
lowing:
‘‘(9) In the case of any credit or charge card ac-
count under an open-end consumer credit plan on
which a minimum monthly or periodic payment will
be required, other than an account described in para-
graph (8)—
‘‘(A) the following statement: ‘The min-
imum payment amount shown on your billing
statement is the smallest payment which you can
make in order to keep the account in good stand-
ing. This payment option is offered as a conven-
ience and you may make larger payments at
any time. Making only the minimum payment
each month will increase the amount of interest
you pay and the length of time it takes to repay
your outstanding balance.’;
‘‘(B) if the plan provides that the consumer
will be permitted to forgo making a minimum
payment during a specified billing cycle, a state-
ment, if applicable, that if the consumer chooses
to forgo making the minimum payment, finance
charges will continue to accrue; and
‘‘(C) an example, based on an annual per-
centage rate and method for determining min-
imum periodic payments recently in effect for
that creditor, and a $500 outstanding balance,
showing the estimated minimum periodic pay-
ment, and the estimated period of time it would
take to repay the $500 outstanding balance if the
consumer paid only the minimum periodic pay-
ment on each monthly or periodic statement and
obtained no additional extensions of credit.
‘‘(10) With respect to one billing cycle per cal-
endar year, the creditor shall transmit the informa-
tion required under paragraph (9) to each consumer
to whom the creditor is required to transit a state-
ment pursuant to subsection (b) for such billing cycle.
The creditor shall also transmit to such consumer for
such cycle a worksheet prescribed by the Board to as-
sist the consumer in determining the consumer’s
household income and debt obligations.’’.
(b) PERIODIC MINIMUM PAYMENT DISCLOSURES.—
Section 127(b) of the Truth in Lending Act (15 U.S.C.
1637(b)) is amended by adding at the end the following:
‘‘(11) The following statement: ‘The minimum
payment amount shown on your billing statement is
the smallest payment which you can make in order
to keep the account in good standing. This payment
option is offered as a convenience and you may make
larger payments at any time. Making only the min-
imum payment each month will increase the amount
of interest you pay and the length of time it takes to
repay your outstanding balance.’ ’’.
(c) ENFORCEMENT.—Section 127 of the Truth in
Lending Act (15 U.S.C. 1637) is amended by adding at
the end the following:
‘‘(h) In promulgating regulations to implement the
disclosure of an example required under subsection
(a)(9)(C) and (a)(10), the Board shall set forth a model dis-
closure to accompany the example stating that the credit
features shown are only an example which does not obligate
the creditor, but is intended to illustrate the approximate
length of time it could take to repay using the assumptions
set forth in subsection (a)(9)(C) without regard to any other
factors that could impact an approximate repayment pe-
riod, including other credit features or the consumer’s pay-
ment or other behavior with respect to the account. Compli-
ance with the disclosures required under subsection
(a)(9)(C) and (a)(10) shall be enforced exclusively by the
Federal agencies set forth in section 108.’’.
(d) REGULATORY IMPLEMENTATION.—The Board of
Governors of the Federal Reserve System (in this section
referred to as the ‘‘Board’’) shall promulgate regulations
implementing the amendments made by subsections (a) and
(b). Such regulations shall take effect no earlier than the
end of the 36-month period beginning on the date of the
enactment of this Act.
(e) STUDY REQUIRED.—The Board shall conduct a
study to determine whether consumers have adequate infor-
mation about borrowing activities which may result in fi-
nancial problems. In studying this issue, the Board shall
consider the extent to which—
(1) consumers, in establishing new credit ar-
rangements, are aware of their existing payment obli-
gations, the need to consider those obligations in de-
ciding to take on new credit, and how taking on ex-
cessive credit can result in financial difficulty;
(2) minimum periodic payment features offered
in connection with open-end credit plans impact con-
sumer default rates;
(3) consumers always make only the minimum
payment throughout the life of the plan;
(4) consumers are aware that making only min-
imum payments will increase the cost and repayment
period of an open-end loan; and
(5) the availability of low minimum payment
options is a cause of consumers experiencing financial
difficulty.
(f) REPORT TO CONGRESS.—Before the end of the 2-
year period beginning on the date of the enactment of this
Act, the Board shall submit to Congress a report containing
the findings of the Board in connection with the study re-
quired under subsection (e).
(g) REGULATIONS.—The Board shall, by regulation
promulgated pursuant to its authority under the Truth in
Lending Act, require additional disclosures to consumers re-
garding minimum payment features, including periodic
statement disclosures, if the Board determines that such dis-
closures are necessary based on its findings. Any such regu-
lations promulgated by the Board shall not take effect ear-
lier than January 1, 2002.
SEC. 113. PROTECTION OF SAVINGS EARMARKED FOR THE
POSTSECONDARY EDUCATION OF CHILDREN.
Section 522 of title 11, United States Code, is
amended—
(1) in subsection (b)(2)—
(A) in subparagraph (A) by striking ‘‘and’’
at the end;
(B) in subparagraph (B) by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(C) except as provided in paragraph (n), funds
placed in an education individual retirement account
(as defined in section 530(b)(1) of the Internal Rev-
enue Code of 1986) not less than 365 days before the
date of entry of the order of relief but only to the ex-
tent such funds—
‘‘(i) are not pledged or promised to any en-
tity in connection with any extension of credit;
and
‘‘(ii) are not excess contributions (as de-
scribed in section 4973(e) of the Internal Rev-
enue Code of 1986).’’; and
(2) by adding at the end the following:
‘‘(n) For purposes of subsection (b)(3)(C), funds placed
in an education individual retirement account shall not be
exempt under this subsection—
‘‘(1) unless the designated beneficiary of such ac-
count was a dependent child of the debtor for the tax-
able year for which the funds were placed in such ac-
count; and
‘‘(2) to the extent such funds exceed—
‘‘(A) $50,000 in the aggregate in all such
accounts having the same designated beneficiary;
or
‘‘(B) $100,000 in the aggregate in all such
accounts attributable to all such dependent chil-
dren of the debtor.’’.
SEC. 114. 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 (including
a plan of reorganization confirmed under chapter 11 of this
title) in the manner required by the plan (including cred-
iting the amounts required under the plan) shall constitute
a violation of any injunction under subsection (a)(2) which
has arisen at the time of the failure.
‘‘(j)(1) An individual who is injured by the willful
failure of a creditor to comply with the requirements for
a reaffirmation agreement under subsections (c) and (d),
or by any willful violation of the injunction under sub-
section (a)(2), shall be entitled to recover—
‘‘(A) the greater of—
‘‘(i) the amount of actual damages; or
‘‘(ii) $1,000; and
‘‘(B) costs and attorneys’ fees.
‘‘(2) An action to recover for a violation specified in
paragraph (1) may not be brought as a class action.’’.
SEC. 115. LIMITING TRUSTEE LIABILITY.
(a) QUALIFICATION OF TRUSTEE.—Section 322 of title
11, United States Code, is amended—
(1) in subsection (a) by adding at the end the
following:
‘‘The trustee in a case under this title is not liable
personally or on such trustee’s bond for acts taken
within the scope of the trustee’s duties or authority as
delineated by other sections of this title or by order
of the court, except to the extent that the trustee acted
with gross negligence. Gross negligence shall be de-
fined as reckless indifference or deliberate disregard of
the trustee’s fiduciary duty.’’; and
(2) in subsection (c) by inserting ‘‘for any acts
within the scope of the trustee’s authority defined in
subsection (a)’’ before the period at the end.
(b) ROLE AND CAPACITY OF TRUSTEE.—Section 323
of title 11, United States Code, is amended—
(1) in subsection (b) by inserting at the end the
following: ‘‘in the trustee’s official capacity as rep-
resentative of the estate’’ before the period at the end;
and
(2) by adding at the end the following:
‘‘(c) The trustee in a case under this title may not be
sued, either personally, in a representative capacity, or
against the trustee’s bond in favor of the United States—
‘‘(1) for acts taken in furtherance of the trustee’s
duties or authority in a case in which the debtor is
subsequently determined to be ineligible for relief
under the chapter in which the trustee was appointed;
or
‘‘(2) for the dissemination of statistics and other
information regarding a case or cases, unless the
trustee has actual knowledge that the information is
false.
‘‘(d) The trustee in a case under this title may not
be sued in a personal capacity without leave of the bank-
ruptcy court in which the case is pending.’’.
SEC. 116. REINFORCE THE FRESH START.
(a) RESTORATION OF AN EFFECTIVE DISCHARGE.—
Section 523(a)(17) of title 11, United States Code, is
amended—
(1) by striking ‘‘by a court’’ and inserting ‘‘by
any court’’,
(2) by striking ‘‘section 1915(b) or (f)’’ and in-
serting ‘‘subsection (b) or (f)(2) of section 1915’’, and
(3) by inserting ‘‘(or a similar non-Federal
law)’’ after ‘‘title 28’’ each place it appears.
SEC. 117. 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 new para-
graphs:
‘‘(3) If a single or joint case is filed by or
against an individual debtor under chapter 7, 11, or
13 (other than a case refiled under a chapter other
than chapter 7 after dismisssal under section 707(b)
of this title), and if a single or joint case of the debtor
was pending within the previous 1-year period but
was dismissed, 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 will terminate with respect to the debtor on the
30th day after the filing of the later case. Upon mo-
tion by a party in interest for continuation of the
automatic stay and upon notice and a hearing, the
court may extend the stay in particular cases as to
any or all creditors (subject to such conditions or lim-
itations as the court may then impose) after notice
and a hearing completed before the expiration of the
30-day period only if the party in interest dem-
onstrates that the filing of the later case is in good
faith as to the creditors to be stayed. A case is pre-
sumptively filed not in good faith (but such presump-
tion may be rebutted by clear and convincing evi-
dence to the contrary)—
‘‘(A) as to all creditors if—
‘‘(i) more than 1 previous case under
any of chapter 7, 11, or 13 in which the in-
dividual was a debtor was pending within
such 1-year period;
‘‘(ii) a previous case under any of
chapters 7, 11, or 13 in which the indi-
vidual was a debtor was dismissed within
such 1-year period, after the debtor failed to
file or amend the petition or other docu-
ments as required by this title or the court
without substantial excuse (but mere inad-
vertence or negligence shall not be substan-
tial excuse unless the dismissal was caused
by the negligence of the debtor’s attorney),
failed to provide adequate protection as or-
dered by the court, or failed to perform the
terms of a plan confirmed by the court; or
‘‘(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 any of chapters 7,
11, or 13 of this title, or there is not any
other reason to conclude that the later case
will be concluded, if a case under chapter 7
of this title, with a discharge, and if a
chapter 11 or 13 case, a confirmed plan
which will be fully performed;
‘‘(B) 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, that action was
still pending or had been resolved by termi-
nating, conditioning, or limiting the stay as to
actions of such creditor.
‘‘(4) If a single or joint case is filed by or
against an individual debtor under this title (other
than a case refiled under a chapter other than chapter
7 after a dismissal under section 707(b) of this title),
and if 2 or more single or joint cases of the debtor
were pending within the previous year but were dis-
missed, the stay under subsection (a) will not go into
effect upon the filing of the later case. On request of
a party in interest, the court shall promptly enter an
order confirming that no stay is in effect. If a party
in interest requests within 30 days of the filing of the
later case, 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 hearing, only if the party in interest
demonstrates that the filing of the later case is in
good faith as to the creditors to be stayed. A stay im-
posed pursuant to the preceding sentence will be effec-
tive on the date of entry of the order allowing the
stay to go into effect. A case is presumptively not filed
in good faith (but such presumption may be rebutted
by clear and convincing evidence to the contrary)—
‘‘(A) 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
‘‘(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 there
is not any other reason to conclude that the
later case will be concluded, if a case under
chapter 7, with a discharge, and if a case
under chapter 11 or 13, with a confirmed
plan that will be fully performed; or
‘‘(B) 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
action of such creditor.’’.
SEC. 118. CURBING ABUSIVE FILINGS.
(a) IN GENERAL.—Section 362(d) of title 11, United
States Code, is amended—
(1) in paragraph (2), by striking ‘‘or’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(4) with respect to a stay of an act against real
property under subsection (a), by a creditor whose
claim is secured by an interest in such real estate, if
the court finds that the filing of the bankruptcy peti-
tion was part of a scheme to delay, hinder, and de-
fraud creditors that involved either—
‘‘(A) transfer of all or part ownership of, or
other interest in, the real property without the
consent of the secured creditor or court approval;
or
‘‘(B) multiple bankruptcy filings affecting
the real property.
If recorded in compliance with applicable State laws gov-
erning notices of interests or liens in real property, an order
entered pursuant to this subsection shall be binding in any
other case under this title purporting to affect the real prop-
erty filed not later than 2 years after that recording, except
that a debtor in a subsequent case may move for relief from
such order based upon changed circumstances or for good
cause shown, after notice and a hearing. Any Federal,
State, or local governmental unit which accepts notices of
interests or liens in real property shall accept any certified
copy of an order described in this subsection for indexing
and recording.’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, is amended—
(1) in paragraph (17), by striking ‘‘or’’ at the
end;
(2) in paragraph (18) by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (18) the fol-
lowing:
‘‘(19) under subsection (a), of any act to enforce
any lien against or security interest in real property
following the entry of an order under section
362(d)(4) of this title as to that property in any prior
bankruptcy case for a period of 2 years after entry of
such an order. The debtor in a subsequent case, how-
ever, may move the court for relief from such order
based upon changed circumstances or for other good
cause shown (consistent with the standards for good
faith in subsection (c)), after notice and a hearing; or
‘‘(20) under subsection (a), of any act to enforce
any lien against or security interest in real
property—
‘‘(A) if the debtor is ineligible under section
109(g) of this title to be a debtor in a bank-
ruptcy case; or
‘‘(B) if the bankruptcy case was filed in
violation of a bankruptcy court order in a prior
bankruptcy case prohibiting the debtor from
being a debtor in another bankruptcy case.’’.
SEC. 119. DEBTOR RETENTION OF PERSONAL PROPERTY
SECURITY.
Title 11, United States Code, is amended—
(1) in section 521—
(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 an individual case under chapter 7 of
this title, not retain possession of personal property
as to which a creditor has an allowed claim for the
purchase price secured in whole or in part by an in-
terest in that personal property unless, in the case of
an individual debtor, the debtor takes 1 of the fol-
lowing actions within 45 days after the first meeting
of creditors under section 341(a)—
‘‘(A) enters into an agreement with the
creditor pursuant to section 524(c) of this title
with respect to the claim secured by such prop-
erty; or
‘‘(B) redeems such property from the secu-
rity interest pursuant to section 722 of this title.
‘‘If the debtor fails to so act within the 45-day period,
the stay under section 362(a) of this title is termi-
nated with respect to the personal property of the es-
tate or of the debtor which is affected, such property
shall no longer be property of the estate, and the cred-
itor may take whatever action as to such property as
is permitted by applicable nonbankruptcy law, unless
the court determines on the motion of the trustee
brought before the expiration of such 45-day period,
and after notice and a hearing, that such property is
of consequential value or benefit to the estate, orders
appropriate adequate protection of the creditor’s in-
terest, 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. 120. 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 as follows—
(1) in section 362—
(A) by striking ‘‘(e), and (f)’’ in subsection
(c) and inserting in lieu thereof ‘‘(e), (f), and
(h)’’; and
(B) by redesignating subsection (h) as sub-
section (i) and by inserting after subsection (g)
the following:
‘‘(h) In an individual case pursuant to chapter 7, 11,
or 13 the stay provided by subsection (a) is terminated with
respect to personal property of the estate or of the debtor
securing in whole or in part a claim, or subject to an unex-
pired lease, and such personal property shall no longer be
property of the estate if the debtor fails within the applica-
ble time set by section 521(a)(2) of this title—
‘‘(1) to file timely any statement of intention re-
quired under section 521(a)(2) of this title with re-
spect to that property or to indicate therein that the
debtor will either surrender the property or retain it
and, if retaining it, either redeem the property pursu-
ant to section 722 of this title, reaffirm the debt it se-
cures pursuant to section 524(c) of this title, or as-
sume the unexpired lease pursuant to section 365(p)
of this title if the trustee does not do so, as applicable;
or
‘‘(2) to take timely the action specified in that
statement of intention, as it may be amended before
expiration of the period for taking action, unless the
statement of intention specifies reaffirmation and the
creditor refuses to reaffirm on the original contract
terms;
unless the court determines on the motion of the trustee filed
before the expiration of the applicable time set by section
521(a)(2), 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. If the court does not so determine
an order, the stay shall terminate upon the conclusion of
the proceeding on the motion.’’; and
(2) in section 521, as amended by sections 603
and 604—
(A) in paragraph (2) by striking ‘‘con-
sumer’’;
(B) in paragraph (2)(B)—
(i) by striking ‘‘forty-five days after
the filing of a notice of intent under this
section’’ and inserting ‘‘30 days after the
first date set for the meeting of creditors
under section 341(a) of this title’’; and
(ii) by striking ‘‘forty-five day’’ the
second place it appears and inserting ‘‘30-
day’’;
(C) in paragraph (2)(C) by inserting ‘‘ex-
cept as provided in section 362(h) of this title’’
before the semicolon; and
(D) by inserting after subsection (b) the fol-
lowing:
‘‘(c) If the debtor fails timely to take the action speci-
fied in subsection (a)(6) of this section, or in paragraphs
(1) and (2) of section 362(h) of this title, with respect to
property which a lessor or bailor owns and has leased,
rented, or bailed to the debtor or as to which a creditor
holds a security interest not otherwise voidable under sec-
tion 522(f), 544, 545, 547, 548, or 549 of this title, nothing
in this title shall prevent or limit the operation of a provi-
sion in the underlying lease or agreement which has the
effect of placing the debtor in default under such lease or
agreement by reason of the occurrence, pendency, or exist-
ence of a proceeding under this title or the insolvency of
the debtor. Nothing in this subsection shall be deemed to
justify limiting such a provision in any other cir-
cumstance.’’.
SEC. 121. GIVING SECURED CREDITORS FAIR TREATMENT
IN CHAPTER 13.
Section 1325(a)(5)(B)(i) of title 11, United States
Code, is amended to read as follows:
‘‘(i) the plan provides that the holder of
such claim retain the lien securing such claim
until the earlier of payment of the underlying
debt determined under nonbankruptcy law or
discharge under section 1328 of this title, and
that 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’’.
SEC. 122. RESTRAINING ABUSIVE PURCHASES ON SECURED
CREDIT.
Section 506 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(e) In an individual case under chapter 7, 11, 12,
or 13—
‘‘(1) subsection (a) shall not apply to an allowed
claim to the extent attributable in whole or in part
to the purchase price of personal property acquired by
the debtor within 5 years of the filing of the petition,
except for the purpose of applying paragraph (3) of
this subsection;
‘‘(2) if such allowed claim attributable to the
purchase price is secured only by the personal prop-
erty so acquired, the value of the personal property
and the amount of the allowed secured claim shall be
the sum of the unpaid principal balance of the pur-
chase price and accrued and unpaid interest and
charges at the contract rate;
‘‘(3) if such allowed claim attributable to the
purchase price is secured by the personal property so
acquired and other property, the value of the security
may be determined under subsection (a), but the value
of the security and the amount of the allowed secured
claim shall be not less than the unpaid principal bal-
ance of the purchase price of the personal property
acquired and unpaid interest and charges at the con-
tract rate; and
‘‘(4) in any subsequent case under this title that
is filed by or against the debtor in the 2-year period
beginning on the date the petition is filed in the
original case, the value of the personal property and
the amount of the allowed secured claim shall be
deemed to be not less than the amount provided under
paragraphs (2) and (3) less any payments actually
received.’’.
SEC. 123. FAIR VALUATION OF COLLATERAL.
Section 506(a) of title 11, United States Code, is
amended by adding at the end the following:
‘‘In the case of an individual debtor under chapters 7 and
13, such value with respect to personal property securing
an allowed claim shall be determined based on the replace-
ment value of such property as of the date of filing the peti-
tion without deduction for costs of sale or marketing. With
respect to property acquired for personal, family, or house-
hold purpose, replacement value shall mean the price a re-
tail merchant would charge for property of that kind con-
sidering the age and condition of the property at the time
value is determined.’’.
SEC. 124. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.
Section 522(b)(2)(A) of title 11, United States Code,
is amended—
(1) by striking ‘‘180’’ and inserting ‘‘730’’; and
(2) by striking ‘‘, or for a longer portion of such
180-day period than in any other place’’ and insert-
ing ‘‘or if the debtor’s domicile has not been located
at a single State for such 730-day period, the place
in which the debtor’s domicile was located for 180
days immediately preceding the 730-day period or for
a longer portion of such 180-day period than in any
other place’’.
SEC. 125. RESTRICTIONS ON CERTAIN EXEMPT PROPERTY
OBTAINED THROUGH FRAUD.
Section 522 of title 11, United States Code, as amend-
ed by section 113, is amended—
(1) in subsection (b)(2)(A) by inserting ‘‘subject
to subsection (o),’’ before ‘‘any property’’; and
(2) by adding at the end the following:
‘‘(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; or
‘‘(3) a burial plot for the debtor or a dependent
of the debtor;
shall be reduced to the extent such value is attributable to
any portion of any property that the debtor disposed of in
the 730-day period ending of the date of the filing of the
petition, with the intent to hinder, delay, or defraud a cred-
itor and that the debtor could not exempt, or that portion
that the debtor could not exempt, under subsection (b) if
on such date the debtor had held the property so disposed
of.’’.
SEC. 126. ROLLING STOCK EQUIPMENT.
(a) IN GENERAL.—Section 1168 of title 11, United
States Code, is amended to read as follows:
‘‘§ 1168. Rolling stock equipment
‘‘(a)(1) The right of a secured party with a security
interest in or of a lessor or conditional vendor of equipment
described in paragraph (2) to take possession of such equip-
ment in compliance with an equipment security agreement,
lease, or conditional sale contract, and to enforce any of
its other rights or remedies under such security agreement,
lease, or conditional sale contract, to sell, lease, or otherwise
retain or dispose of such equipment, is not limited or other-
wise affected by any other provision of this title or by any
power of the court, except that the right to take possession
and enforce those other rights and remedies shall be subject
to section 362 of this title, if—
‘‘(A) before the date that is 60 days after the
date of commencement of a case under this chapter,
the trustee, subject to the court’s approval, agrees to
perform all obligations of the debtor under such secu-
rity agreement, lease, or conditional sale contract;
and
‘‘(B) any default, other than a default of a kind
described in section 365(b)(2) of this title, under such
security 
agreement, 
lease, 
or 
conditional 
sale
contract—
‘‘(i) that occurs before the date of com-
mencement of the case and is an event of default
therewith is cured before the expiration of such
60-day period;
‘‘(ii) that occurs or becomes an event of de-
fault after the date of commencement of the case
and before the expiration of such 60-day period
is cured before the later of—
‘‘(I) the date that is 30 days after the
date of the default or event of the default; or
‘‘(II) the expiration of such 60-day pe-
riod; and
‘‘(iii) that occurs on or after the expiration
of such 60-day period is cured in accordance
with the terms of such security agreement, lease,
or conditional sale contract, if cure is permitted
under that agreement, lease, or conditional sale
contract.
‘‘(2) The equipment described in this paragraph—
‘‘(A) is rolling stock equipment or accessories
used on rolling stock equipment, including super-
structures or racks, that is subject to a security inter-
est granted by, leased to, or conditionally sold to a
debtor; and
‘‘(B) includes all records and documents relating
to such equipment that are required, under the terms
of the security agreement, lease, or conditional sale
contract, that is to be surrendered or returned by the
debtor in connection with the surrender or return of
such equipment.
‘‘(3) Paragraph (1) applies to a secured party, lessor,
or conditional vendor acting in its own behalf or acting
as trustee or otherwise in behalf of another party.
‘‘(b) The trustee and the secured party, lessor, or condi-
tional vendor whose right to take possession is protected
under subsection (a) may agree, subject to the court’s ap-
proval, to extend the 60-day period specified in subsection
(a)(1).
‘‘(c)(1) In any case under this chapter, the trustee shall
immediately surrender and return to a secured party, les-
sor, or conditional vendor, described in subsection (a)(1),
equipment described in subsection (a)(2), if at any time
after the date of commencement of the case under this chap-
ter such secured party, lessor, or conditional vendor is enti-
tled pursuant to subsection (a)(1) to take possession of such
equipment and makes a written demand for such possession
of the trustee.
‘‘(2) At such time as the trustee is required under
paragraph (1) to surrender and return equipment described
in subsection (a)(2), any lease of such equipment, and any
security agreement or conditional sale contract relating to
such equipment, if such security agreement or conditional
sale contract is an executory contract, shall be deemed re-
jected.
‘‘(d) With respect to equipment first placed in service
on or prior to October 22, 1994, for purposes of this
section—
‘‘(1) the term ‘lease’ includes any written agree-
ment with respect to which the lessor and the debtor,
as lessee, have expressed in the agreement or in a sub-
stantially contemporaneous writing that the agree-
ment is to be treated as a lease for Federal income
tax purposes; and
‘‘(2) the term ‘security interest’ means a pur-
chase-money equipment security interest.
‘‘(e) With respect to equipment first placed in service
after October 22, 1994, for purposes of this section, the term
‘rolling stock equipment’ includes rolling stock equipment
that is substantially rebuilt and accessories used on such
equipment.’’.
(b) AIRCRAFT EQUIPMENT
AND VESSELS.—Section
1110 of title 11, United States Code, is amended to read
as follows:
‘‘§ 1110. Aircraft equipment and vessels
‘‘(a)(1) Except as provided in paragraph (2) and sub-
ject to subsection (b), the right of a secured party with a
security interest in equipment described in paragraph (3),
or of a lessor or conditional vendor of such equipment, to
take possession of such equipment in compliance with a se-
curity agreement, lease, or conditional sale contract, and
to enforce any of its other rights or remedies, under such
security agreement, lease, or conditional sale contract, to
sell, lease, or otherwise retain or dispose of such equipment,
is not limited or otherwise affected by any other provision
of this title or by any power of the court.
‘‘(2) The right to take possession and to enforce the
other rights and remedies described in paragraph (1) shall
be subject to section 362 of this title if—
‘‘(A) before the date that is 60 days after the
date of the order for relief under this chapter, the
trustee, subject to the approval of the court, agrees to
perform all obligations of the debtor under such secu-
rity agreement, lease, or conditional sale contract;
and
‘‘(B) any default, other than a default of a kind
specified in section 365(b)(2) of this title, under such
security 
agreement, 
lease, 
or 
conditional 
sale
contract—
‘‘(i) that occurs before the date of the order
is cured before the expiration of such 60-day pe-
riod;
‘‘(ii) that occurs after the date of the order
and before the expiration of such 60-day period
is cured before the later of—
‘‘(I) the date that is 30 days after the
date of the default; or
‘‘(II) the expiration of such 60-day pe-
riod; and
‘‘(iii) that occurs on or after the expiration
of such 60-day period is cured in compliance
with the terms of such security agreement, lease,
or conditional sale contract, if a cure is per-
mitted under that agreement, lease, or contract.
‘‘(3) The equipment described in this paragraph—
‘‘(A) is—
‘‘(i) an aircraft, aircraft engine, propeller,
appliance, or spare part (as defined in section
40102 of title 49) that is subject to a security in-
terest granted by, leased to, or conditionally sold
to a debtor that, at the time such transaction is
entered into, holds an air carrier operating cer-
tificate issued pursuant to chapter 447 of title 49
for aircraft capable of carrying 10 or more indi-
viduals or 6,000 pounds or more of cargo; or
‘‘(ii) a documented vessel (as defined in sec-
tion 30101(1) of title 46) that is subject to a se-
curity interest granted by, leased to, or condi-
tionally sold to a debtor that is a water carrier
that, at the time such transaction is entered into,
holds a certificate of public convenience and ne-
cessity or permit issued by the Department of
Transportation; and
‘‘(B) includes all records and documents relating
to such equipment that are required, under the terms
of the security agreement, lease, or conditional sale
contract, to be surrendered or returned by the debtor
in connection with the surrender or return of such
equipment.
‘‘(4) Paragraph (1) applies to a secured party, lessor,
or conditional vendor acting in its own behalf or acting
as trustee or otherwise in behalf of another party.
‘‘(b) The trustee and the secured party, lessor, or condi-
tional vendor whose right to take possession is protected
under subsection (a) may agree, subject to the approval of
the court, to extend the 60-day period specified in subsection
(a)(1).
‘‘(c)(1) In any case under this chapter, the trustee shall
immediately surrender and return to a secured party, les-
sor, or conditional vendor, described in subsection (a)(1),
equipment described in subsection (a)(3), if at any time
after the date of the order for relief under this chapter such
secured party, lessor, or conditional vendor is entitled pur-
suant to subsection (a)(1) to take possession of such equip-
ment and makes a written demand for such possession to
the trustee.
‘‘(2) At such time as the trustee is required under
paragraph (1) to surrender and return equipment described
in subsection (a)(3), any lease of such equipment, and any
security agreement or conditional sale contract relating to
such equipment, if such security agreement or conditional
sale contract is an executory contract, shall be deemed re-
jected.
‘‘(d) With respect to equipment first placed in service
on or before October 22, 1994, for purposes of this section—
‘‘(1) the term ‘lease’ includes any written agree-
ment with respect to which the lessor and the debtor,
as lessee, have expressed in the agreement or in a sub-
stantially contemporaneous writing that the agree-
ment is to be treated as a lease for Federal income
tax purposes; and
‘‘(2) the term ‘security interest’ means a pur-
chase-money equipment security interest.’’.
SEC. 127. DISCHARGE UNDER CHAPTER 13.
Section 1328(a) of title 11, United States Code, is
amended by striking paragraphs (1) through (3) and insert-
ing the following:
‘‘(1) provided for under section 1322(b)(5) of this
title;
‘‘(2) of the kind specified in paragraph (2), (4),
(3)(B), (5), (8), or (9) of section 523(a) of this title;
‘‘(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. 128. BANKRUPTCY JUDGESHIPS.
(a) SHORT TITLE.—This section may be cited as the
‘‘Bankruptcy Judgeship Act of 1999’’.
(b) TEMPORARY JUDGESHIPS.—
(1) APPOINTMENTS.—The following judgeship
positions shall be filled in the manner prescribed in
section 152(a)(1) of title 28, United States Code, for
the appointment of bankruptcy judges provided for in
section 152(a)(2) of such title:
(A) One additional bankruptcy judgeship
for the eastern district of California.
(B) Four additional bankruptcy judgeships
for the central district of California.
(C) One additional bankruptcy judgeship
for the southern district of Florida.
(D) Two additional bankruptcy judgeships
for the district of Maryland.
(E) One additional bankruptcy judgeship
for the eastern district of Michigan.
(F) One additional bankruptcy judgeship
for the southern district of Mississippi.
(G) One additional bankruptcy judgeship
for the district of New Jersey.
(H) One additional bankruptcy judgeship
for the eastern district of New York.
(I) One additional bankruptcy judgeship for
the northern district of New York.
(J) One additional bankruptcy judgeship
for the southern district of New York.
(K) One additional bankruptcy judgeship
for the eastern district of Pennsylvania.
(L) One additional bankruptcy judgeship
for the middle district of Pennsylvania.
(M) One additional bankruptcy judgeship
for the western district of Tennessee.
(N) One additional bankruptcy judgeship
for the eastern district of Virginia.
(2) VACANCIES.—The first vacancy occurring in
the office of a bankruptcy judge in each of the judicial
districts set forth in paragraph (1) that—
(A) results from the death, retirement, res-
ignation, or removal of a bankruptcy judge; and
(B) occurs 5 years or more after the ap-
pointment date of a bankruptcy judge appointed
under paragraph (1);
shall not be filled.
(c) EXTENSIONS.—
(1) IN
GENERAL.—The temporary bankruptcy
judgeship positions authorized for the northern dis-
trict of Alabama, the district of Delaware, the district
of Puerto Rico, the district of South Carolina, and the
eastern district of Tennessee under section 3(a) (1),
(3), (7), (8), and (9) of the Bankruptcy Judgeship Act
of 1992 (28 U.S.C. 152 note) are extended until the
first vacancy occurring in the office of a bankruptcy
judge in the applicable district resulting from the
death, retirement, resignation, or removal of a bank-
ruptcy judge and occurring—
(A) 8 years or more after November 8, 1993,
with respect to the northern district of Alabama;
(B) 10 years or more after October 28,
1993, with respect to the district of Delaware;
(C) 8 years or more after August 29, 1994,
with respect to the district of Puerto Rico;
(D) 8 years or more after June 27, 1994,
with respect to the district of South Carolina;
and
(E) 8 years or more after November 23,
1993, with respect to the eastern district of Ten-
nessee.
(2) APPLICABILITY OF OTHER PROVISIONS.—All
other provisions of section 3 of the Bankruptcy Judge-
ship Act of 1992 remain applicable to such temporary
judgeship position.
(d) TECHNICAL AMENDMENT.—The first sentence of
section 152(a)(1) of title 28, United States Code, is amend-
ed to read as follows: ‘‘Each bankruptcy judge to be ap-
pointed for a judicial district as provided in paragraph (2)
shall be appointed by the United States court of appeals
for the circuit in which such district is located.’’.
(e) TRAVEL EXPENSES OF BANKRUPTCY JUDGES.—
Section 156 of title 28, United States Code, is amended by
adding at the end the following new subsection:
‘‘(g)(1) In this subsection, the term ‘travel expenses’—
‘‘(A) means the expenses incurred by a bank-
ruptcy judge for travel that is not directly related to
any case assigned to such bankruptcy judge; and
‘‘(B) shall not include the travel expenses of a
bankruptcy judge if—
‘‘(i) the payment for the travel expenses is
paid by such bankruptcy judge from the personal
funds of such bankruptcy judge; and
‘‘(ii) such bankruptcy judge does not receive
funds 
(including 
reimbursement) 
from 
the
United States or any other person or entity for
the payment of such travel expenses.
‘‘(2) Each bankruptcy judge shall annually submit the
information required under paragraph (3) to the chief
bankruptcy judge for the district in which the bankruptcy
judge is assigned.
‘‘(3)(A) Each chief bankruptcy judge shall submit an
annual report to the Director of the Administrative Office
of the United States Courts on the travel expenses of each
bankruptcy judge assigned to the applicable district (in-
cluding the travel expenses of the chief bankruptcy judge
of such district).
‘‘(B) The annual report under this paragraph shall
include—
‘‘(i) the travel expenses of each bankruptcy judge,
with the name of the bankruptcy judge to whom the
travel expenses apply;
‘‘(ii) a description of the subject matter and pur-
pose of the travel relating to each travel expense iden-
tified under clause (i), with the name of the bank-
ruptcy judge to whom the travel applies; and
‘‘(iii) the number of days of each travel described
under clause (ii), with the name of the bankruptcy
judge to whom the travel applies.
‘‘(4)(A) The Director of the Administrative Office of
the United States Courts shall—
‘‘(i) consolidate the reports submitted under
paragraph (3) into a single report; and
‘‘(ii) annually submit such consolidated report to
Congress.
‘‘(B) The consolidated report submitted under this
paragraph shall include the specific information required
under paragraph (3)(B), including the name of each bank-
ruptcy judge with respect to clauses (i), (ii), and (iii) of
paragraph (3)(B).’’.
SEC. 129. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED
STATES CODE.
Section 507(a) of title 11, United States Code, is
amended by inserting after paragraph (9) the following:
‘‘(10) Tenth, allowed claims for death or per-
sonal injuries resulting from the operation of a motor
vehicle or vessel if such operation was unlawful be-
cause the debtor was intoxicated from using alcohol,
a drug or another substance.’’.
SEC. 130. AMENDMENT TO SECTION 1325 OF TITLE 11,
UNITED STATES CODE.
Section 1325(b) of title 11, United States Code, is
amended—
(1) in paragraph (1), by inserting ‘‘to unsecured
creditors’’ after ‘‘to make payments’’;
(2) in paragraph (2)—
(A) by inserting ‘‘current monthly’’ before
‘‘income’’;
(B) by striking ‘‘and which is not’’ and in-
serting ‘‘less amounts’’;
(C) by inserting after ‘‘received by the debt-
or’’, ‘‘(other than child support payments, foster
care payments, or disability payments for a de-
pendent child made in accordance with applica-
ble nonbankruptcy law and which is reasonably
necessary to be expended)’’; and
(D) in subparagraph (A) by inserting after
‘‘dependent of the debtor’’ the following: ‘‘, as de-
termined 
in 
accordance 
with 
section
707(b)(2)(A) and if applicable 707(b)(2)(B)’’.
SEC. 131. APPLICATION OF THE CODEBTOR STAY ONLY
WHEN THE STAY PROTECTS THE DEBTOR.
Section 1301(b) of title 11, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following:
‘‘(2)(A) Notwithstanding subsection (c) and except as
provided in subparagraph (B), in any case in which the
debtor did not receive the consideration for the claim held
by a creditor, the stay provided by subsection (a) shall
apply to that creditor for a period not to exceed 30 days
beginning on the date of the order for relief, to the extent
the creditor proceeds against—
‘‘(i) the individual that received that consider-
ation; or
‘‘(ii) property not in the possession of the debtor
that secures that claim.
‘‘(B) Notwithstanding subparagraph (A), the stay pro-
vided by subsection (a) shall apply in any case in which
the debtor is primarily obligated to pay the creditor in
whole or in part with respect to a claim described in sub-
paragraph (A) under a legally binding separation or prop-
erty settlement agreement or divorce or dissolution decree
with respect to—
‘‘(i) an individual described in subparagraph
(A)(i); or
‘‘(ii) property described in subparagraph (A)(ii).
‘‘(3) Notwithstanding subsection (c), the stay provided
by subsection (a) shall terminate as of the date of confirma-
tion of the plan, in any case in which the plan of the debtor
provides that the debtor’s interest in personal property sub-
ject to a lease with respect to which the debtor is the lessee
will be surrendered or abandoned or no payments will be
made under the plan on account of the debtor’s obligations
under the lease.’’.
SEC. 132. 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 pursuant to
section 15A of the Securities Exchange Act of 1934 or
a national securities exchange registered with the Se-
curities and Exchange Commission pursuant to sec-
tion 6 of the Securities Exchange Act of 1934;’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, as amended by section 118, is
amended—
(1) in paragraph (19) by striking ‘‘or’’ at the
end;
(2) in paragraph (20) by striking the period at
the end and a inserting ‘‘; or’’; and
(3) by inserting after paragraph (20) the fol-
lowing:
‘‘(21) under subsection (a), of the commencement
or continuation of an investigation or action by a se-
curities self regulatory organization to enforce such
organization’s regulatory power; of the enforcement of
an order or decision, other than for monetary sanc-
tions, obtained in an action by the securities self reg-
ulatory organization to enforce such organization’s
regulatory power; or of any act taken by the securities
self regulatory organization to delist, delete, or refuse
to permit quotation of any stock that does not meet
applicable regulatory requirements.’’.
SEC. 134. 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) of this title is automatically ter-
minated.
‘‘(2) In the case of an individual under chapter 7, the
debtor may notify the creditor in writing that the debtor
desires to assume the lease. Upon being so notified, the cred-
itor may, at its option, notify the debtor that it is willing
to have the lease assumed by the debtor and may, at its
option, condition such assumption on cure of any out-
standing default on terms set by the contract. If within 30
days of the notice from the creditor 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. The stay under section 362 of this title and the
injunction under section 524(a) of this title shall not be
violated by notification of the debtor and negotiation of cure
under this subsection. Nothing in this paragraph shall re-
quire a debtor to assume a lease, or a creditor to permit
assumption.
‘‘(3) In a case under chapter 11 of this title in which
the debtor is an individual and in a case under chapter
13 of this title, 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 hearing on confirmation. If the lease
is rejected, the stay under section 362 of this title and any
stay under section 1301 is automatically terminated with
respect to the property subject to the lease.’’.
SEC. 135. ADEQUATE PROTECTION OF LESSORS AND PUR-
CHASE MONEY SECURED CREDITORS.
(a) IN GENERAL.—Chapter 13 of title 11, United
States Code, is amended by adding after section 1307 the
following:
‘‘§ 1307A. Adequate protection in chapter 13 cases
‘‘(a)(1)(A) On or before the date that is 30 days after
the filing of a case under this chapter, the debtor shall make
cash payments in an amount determined under paragraph
(2), to—
‘‘(i) any lessor of personal property; and
‘‘(ii) any creditor holding a claim secured by
personal property to the extent that the claim is at-
tributable to the purchase of that property by the
debtor.
‘‘(B) The debtor or the plan shall continue making the
adequate protection payments required under subparagraph
(A) until the earlier of the date on which—
‘‘(i) the creditor begins to receive actual pay-
ments under the plan; or
‘‘(ii) the debtor relinquishes possession of the
property referred to in subparagraph (A) to—
‘‘(I) the lessor or creditor; or
‘‘(II) any third party acting under claim of
right, as applicable.
‘‘(2) The payments referred to in paragraph (1)(A)
shall be the contract amount and shall reduce any amount
payable under section 1326(a) of the title.
‘‘(b)(1) Subject to the limitations under paragraph (2),
the court may, after notice and hearing, change the amount
and timing of the dates of payment of payments made
under subsection (a).
‘‘(2)(A) The payments referred to in paragraph (1)
shall be payable not less frequently than monthly.
‘‘(B) The amount of payments referred to in para-
graph (1) shall not be less than the amount of any weekly,
biweekly, monthly, or other periodic payment scheduled as
payable under the contract between the debtor and creditor.
‘‘(c) Notwithstanding section 1326(b), the payments
referred to in subsection (a)(1)(A) shall be continued in ad-
dition to plan payments under a confirmed plan until ac-
tual payments to the creditor begin under that plan, if the
confirmed plan provides—
‘‘(1) for payments to a creditor or lessor de-
scribed in subsection (a)(1); and
‘‘(2) for the deferral of payments to such creditor
or lessor under the plan until the payment of
amounts described in section 1326(b).
‘‘(d) Notwithstanding sections 362, 542, and 543, a les-
sor or creditor described in subsection (a) may retain pos-
session of property described in that subsection that was
obtained in accordance with applicable law before the date
of filing of the petition until the first payment under sub-
section (a)(1)(A) is received by the lessor or creditor.
‘‘(e) On or before 60 days after the filling 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 each creditor or lessor reasonable evidence of
the maintenance of any required insurance coverage with
respect to the use or ownership of such property and con-
tinue to do so for so long as the debtor retains possession
of such property.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 13 of title 11, United States Code,
is amended by inserting after the item relating to section
1307 the following:
‘‘1307A. Adequate protection in chapter 13 cases.’’.
SEC. 136. AUTOMATIC STAY.
Section 362(b) of title 11, United States Code, as
amended by sections 118 and 132, is amended—
(1) in paragraph (20), by striking ‘‘or’’ at the
end;
(2) in paragraph (21), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (21) the fol-
lowing:
‘‘(22) under subsection (a) of any transfer that
is not avoidable under section 544 of this title and
that is not avoidable under section 549 of this title;
‘‘(23) under subsection (a)(3), of the continu-
ation of any eviction, unlawful detainer action, or
similar proceeding by a lessor against a debtor in-
volving residential real property in which the debtor
resides as a tenant under a rental agreement and the
debtor has not paid rent to the lessor pursuant to the
terms of the lease agreement or applicable State law
after the commencement and during the course of the
case;
‘‘(24) under subsection (a)(3), of the commence-
ment or continuation of any eviction, unlawful de-
tainer action, or similar proceeding by a lessor
against a debtor involving residential real property
in which the debtor resides as a tenant under a rental
agreement that has terminated pursuant to the lease
agreement or applicable State law;
‘‘(25) under subsection (a)(3), of any eviction,
unlawful detainer action, or similar proceeding, if the
debtor has previously filed within the last year and
failed to pay post-petition rent during the course of
that case; or
‘‘(26) under subsection (a)(3), of eviction actions
based on endangerment to property or person or the
use of illegal drugs.’’.
SEC. 137. EXTEND PERIOD BETWEEN BANKRUPTCY DIS-
CHARGES.
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 adding at the end the fol-
lowing:
‘‘(f) Notwithstanding subsections (a) and (b), the court
shall not grant a discharge of all debts provided for by the
plan or disallowed under section 502 of this title if the debt-
or has received a discharge in any case filed under this title
within 5 years of the order for relief under this chapter.’’.
SEC. 138. DEFINITION OF DOMESTIC SUPPORT OBLIGA-
TION.
Section 101 of title 11, United States Code, is
amended—
(1) by striking paragraph (12A); and
(2) by inserting after paragraph (14) the fol-
lowing:
‘‘(14A) ‘domestic support obligation’ means a
debt that accrues before or after the entry of an order
for relief under this title that is—
‘‘(A) owed to or recoverable by—
‘‘(i) a spouse, former spouse, or child of
the debtor or that child’s legal guardian; 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, without regard to whether such
debt is expressly so designated;
‘‘(C) established or subject to establishment
before or after entry of an order for relief 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, or par-
ent solely for the purpose of collecting the debt.’’.
SEC. 139. 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 redesignated, by strik-
ing ‘‘First’’ and inserting ‘‘Second’’;
(4) in paragraph (3), as redesignated, by strik-
ing ‘‘Second’’ and inserting ‘‘Third’’;
(5) in paragraph (4), as redesignated, by strik-
ing ‘‘Third’’ and inserting ‘‘Fourth’’;
(6) in paragraph (5), as redesignated, by strik-
ing ‘‘Fourth’’ and inserting ‘‘Fifth’’;
(7) in paragraph (6), as redesignated, by strik-
ing ‘‘Fifth’’ and inserting ‘‘Sixth’’;
(8) in paragraph (7), as redesignated, by strik-
ing ‘‘Sixth’’ and inserting ‘‘Seventh’’; and
(9) by inserting before paragraph (2), as redesig-
nated, the following:
‘‘(1) First, allowed claims for domestic support
obligations to be paid in the following order on the
condition that funds received under this paragraph by
a governmental unit in a case under this title be ap-
plied:
‘‘(A) Claims that, as of the date of entry of
the order for relief, are owed directly to a spouse,
former spouse, or child of the debtor, or the par-
ent of such child, without regard to whether the
claim is filed by the spouse, former spouse, child,
or parent, or is filed by a governmental unit on
behalf of that person.
‘‘(B) Claims that, as of the date of entry of
the order for relief, are assigned by a spouse,
former spouse, child of the debtor, or the parent
of that child to a governmental unit or are owed
directly to a governmental unit under applicable
nonbankruptcy law.’’.
SEC. 140. REQUIREMENTS TO OBTAIN CONFIRMATION AND
DISCHARGE IN CASES INVOLVING DOMESTIC
SUPPORT OBLIGATIONS.
Title 11, United States Code, is amended—
(1) in section 1129(a), by adding at the end the
following:
‘‘(14) If the debtor is required by a judicial or
administrative order or statute to pay a domestic
support obligation, the debtor has paid all amounts
payable under such order or statute for such obliga-
tion that become payable after the date on which the
petition is filed.’’;
(2) in section 1325(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) if the debtor is required by a judicial or ad-
ministrative order or statute to pay a domestic sup-
port obligation, the debtor has paid all amounts pay-
able under such order for such obligation that become
payable after the date on which the petition is filed.’’;
and
(3) in section 1328(a), as amended by section
127, in the matter preceding paragraph (1), by in-
serting ‘‘, and with respect to a debtor who is re-
quired by a judicial or administrative order to pay
a domestic support obligation, certifies that all
amounts payable under such order or statute that are
due on or before the date of the certification (includ-
ing amounts due before or after the petition was filed)
have been paid’’ after ‘‘completion by the debtor of all
payments under the plan’’.
SEC. 141. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC
SUPPORT OBLIGATION PROCEEDINGS.
Section 362(b) of title 11, United States Code, as
amended by sections 118, 132, and 136, is amended—
(1) by striking paragraph (2) and inserting the
following:
‘‘(2) under subsection (a)—
‘‘(A) of the commencement or continuation
of an action or proceeding for—
‘‘(i) the establishment of paternity; or
‘‘(ii) the establishment or modification
of an order for domestic support obligations;
or
‘‘(B) the collection of a domestic support ob-
ligation from property that is not property of the
estate;’’;
(2) in paragraph (25), by striking ‘‘or’’ at the
end;
(3) in paragraph (26), by striking the period at
the end and inserting a semicolon; and
(4) by inserting after paragraph (26) the fol-
lowing:
‘‘(27) under subsection (a) with respect to the
withholding of income pursuant to an order as speci-
fied in section 466(b) of the Social Security Act (42
U.S.C. 666(b)); or
‘‘(28) under subsection (a) with respect to—
‘‘(A) the withholding, suspension, or restric-
tion of drivers’ licenses, professional and occupa-
tional licenses, and recreational licenses pursu-
ant to State law, as specified in section
466(a)(16) of the Social Security Act (42 U.S.C.
666(a)(16)) or with respect to the reporting of
overdue support owed by an absent parent to
any consumer reporting agency as specified in
section 466(a)(7) of the Social Security Act (42
U.S.C. 666(a)(7));
‘‘(B) the interception of tax refunds, as
specified in sections 464 and 466(a)(3) of the So-
cial Security Act (42 U.S.C. 664 and 666(a)(3));
or
‘‘(C) the enforcement of medical obligations
as specified under title IV of the Social Security
Act (42 U.S.C. 601 et seq.).’’.
SEC. 142. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR
ALIMONY, MAINTENANCE, AND SUPPORT.
Section 523 of title 11, United States Code, is
amended—
(1) in subsection (a), by striking paragraph (5)
and inserting the following:
‘‘(5) for a domestic support obligation;’’;
(2) in subsection (a)(15)—
(A) by inserting ‘‘or’’ after ‘‘court of
record,’’;
(B) by striking ‘‘unless—’’ and all that fol-
lows through ‘‘debtor’’ the last place it appears;
and
(3) in subsection (c), by striking ‘‘(6), or (15)’’
each place it appears and inserting ‘‘or (6)’’.
SEC. 143. CONTINUED LIABILITY OF PROPERTY.
Section 522 of title 11, United States Code, is
amended—
(1) in subsection (c), by striking paragraph (1)
and inserting the following:
‘‘(1) a debt of a kind specified in paragraph (1)
or (5) of section 523(a) (in which case, notwith-
standing any provision of applicable nonbankruptcy
law to the contrary, such property shall be liable for
a debt of a kind specified in section 523(a)(5);’’; and
(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’’.
SEC. 144. 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 obligation;
or’’.
SEC. 145. CLARIFICATION OF MEANING OF HOUSEHOLD
GOODS.
Section 101 of title 11, United States Code, is amended
by inserting after paragraph (27) the following:
‘‘(27A) ‘household goods’ includes tangible per-
sonal property normally found in or around a resi-
dence, but does not include motorized vehicles used for
transportation purposes;’’.
SEC. 146. NONDISCHARGEABLE DEBTS.
Section 523(a) of title 11, United States Code, is
amended by inserting after paragraph (14) the following:
‘‘(14A) incurred to pay a debt that is non-
dischargeable by reason of section 727, 1141, 1228(a),
1228(b), or 1328(c), or any other provision of this
subsection, if the debtor incurred the debt to pay such
a nondischargeable debt with the intent to discharge
in bankruptcy the newly-created debt, except that all
debts incurred to pay nondischargeable debts, without
regard to intent, are nondischargeable if incurred
within 90 days of the filing of the petition;’’.
SEC. 147. MONETARY LIMITATION ON CERTAIN EXEMPT
PROPERTY.
Section 522 of title 11, United States Code, as amend-
ed by section 125, is amended—
(1) in subsection (b)(2)(A) by striking ‘‘sub-
section (o)’’ and inserting ‘‘subsections (o) and (p)’’
before ‘‘any property’’; and
(2) by adding at the end the following:
‘‘(p)(1) Except as provided in paragraphs (2) and (3),
as a result of electing under subsection (b)(3)(A) to exempt
property under State or local law, a debtor may not exempt
any interest that exceeds $250,000 in value, in the aggre-
gate, in—
‘‘(A) real or personal property that the debtor or
a dependent of the debtor uses as a residence;
‘‘(B) a cooperative that owns property that the
debtor or a dependent of the debtor uses as a resi-
dence; or
‘‘(C) a burial plot for the debtor or a dependent
of the debtor.
‘‘(2) The limitation under paragraph (1) shall not
apply to an exemption claimed under subsection (b)(3)(A)
by a family farmer for the principal residence of that farm-
er.
‘‘(3) Paragraph (1) shall not apply to debtors if appli-
cable State law expressly provides by a statute enacted after
the effective date of this paragraph that such paragraph
shall not apply to debtors.’’.
SEC. 148. BANKRUPTCY FEES.
Section 1930 of title 28, United States Code, is
amended—
(1) in subsection (a) by striking ‘‘Notwith-
standing section 1915 of this title, the’’ and inserting
‘‘The’’; and
(2) by adding at the end the following:
‘‘(f)(1) Pursuant to procedures prescribed by the Judi-
cial Conference of the United States, the district court or
the bankruptcy court may waive the filing fee in a case
under chapter 7 of title 11 for an individual debtor who
is unable to pay such fee in installments. For purposes of
this paragraph, the term ‘filing fee’ means the filing fee re-
quired by subsection (a), or any other fee prescribed by the
Judicial Conference under subsections (b) and (c) that is
payable to the clerk upon the commencement of a case under
chapter 7 of title 11.
‘‘(2) The district court or the bankruptcy court may
also waive for such debtors other fees prescribed pursuant
to subsections (b) and (c).
‘‘(3) This subsection does not restrict the district court
or the bankruptcy court from waiving, in accordance with
Judicial Conference policy, fees prescribed pursuant to such
subsections for other debtors and creditors.’’.
SEC. 149. 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) by inserting ‘‘(a)’’ before ‘‘The trustee’’,
(2) in paragraph (9) by striking ‘‘and’’ at the
end,
(3) in paragraph (10) by striking the period and
inserting ‘‘; and’’, and
(4) by adding at the end the following:
‘‘(11) if, with respect to an individual debtor,
there is a claim for support of a child of the debtor
or a custodial parent of such child entitled to receive
priority under section 507(a)(1) of this title, provide
the applicable notification specified in subsection (b).
‘‘(b)(1) In any case described in subsection (a)(11), the
trustee shall—
‘‘(A)(i) notify in writing the holder of the claim
of the right of such holder to use the services of a
State child support enforcement agency established
under sections 464 and 466 of the Social Security Act
for the State in which the holder resides; and
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child support
enforcement agency; and
‘‘(B)(i) notify in writing the State child support
agency of the State in which the holder of the claim
resides of the claim;
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the holder
of the claim; and
‘‘(iii) at such time as the debtor is granted a dis-
charge under section 727 of this title, notify the holder
of such claim and the State child support agency of
the State in which such holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor; and
‘‘(III) with respect to the debtor’s case, the
name of each creditor that holds a claim that is
not discharged under paragraph (2), (4), or
(14A) of section 523(a) of this title or that was
reaffirmed by the debtor under section 524(c) of
this title.
‘‘(2)(A) If, after receiving a notice under paragraph
(1)(B)(iii), a holder of a claim or a State child support
agency is unable to locate the debtor that is the subject of
the notice, such holder or such agency may request from
a creditor described in paragraph (1)(B)(iii)(III) 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 to the debtor or any other
person by reason of making such disclosure.’’.
(b) 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 an individual debtor,
there is a claim for support of a child of the debtor
or a custodial parent of such child entitled to receive
priority under section 507(a)(1) of this title, provide
the applicable notification specified in subsection
(d).’’, and
(2) by adding at the end the following:
‘‘(d)(1) In any case described in subsection (b)(6), the
trustee shall—
‘‘(A)(i) notify in writing the holder of the claim
of the right of such holder to use the services of a
State child support enforcement agency established
under sections 464 and 466 of the Social Security Act
for the State in which the holder resides; and
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child support
enforcement agency; and
‘‘(B)(i) notify in writing the State child support
agency of the State in which the holder of the claim
resides of the claim; and
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the holder
of the claim;
‘‘(iii) at such time as the debtor is granted a dis-
charge under section 1328 of this title, notify the
holder of the claim and the State child support agen-
cy of the State in which such holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor; and
‘‘(III) with respect to the debtor’s case, the
name of each creditor that holds a claim that is
not discharged under paragraph (2), (4), or
(14A) of section 523(a) of this title or that was
reaffirmed by the debtor under section 524(c) of
this title.
‘‘(2)(A) If, after receiving a notice under paragraph
(1)(B)(iii), a holder of a claim or a State child support
agency is unable to locate the debtor that is the subject of
the notice, such holder or such agency may request from
a creditor described in paragraph (1)(B)(iii) 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 to the debtor or any other
person by reason of making such disclosure.’’.
SEC. 150. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICI-
PANT CONTRIBUTIONS AND OTHER PROP-
ERTY FROM THE ESTATE.
(a) IN GENERAL.—Section 541(b) of title 11 of the
United States Code is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(4)(B)(ii);
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; or’’; and
(3) by inserting after paragraph (5) the fol-
lowing:
‘‘(7) any amount or interest in property to the
extent that an employer has withheld amounts from
the wages of employees for contribution to an em-
ployee benefit plan subject to title I of the Employee
Retirement Income Security Act of 1974, or to the ex-
tent that the employer has received amounts as a re-
sult of payments by participants or beneficiaries to
an employer for contribution to an employee benefit
plan subject to title I of the Employee Retirement In-
come Security Act of 1974.’’.
(b) APPLICATION OF AMENDMENT.—The amendment
made by this section shall not apply to cases commenced
under title 11 of the United States Code before the expira-
tion of the 180-day period beginning on the date of the en-
actment of this Act.
SEC. 151. CLARIFICATION OF POSTPETITION WAGES AND
BENEFITS.
Section 503(b)(1)(A) of title 11, United States Code,
is amended to read as follows:
‘‘(A) the actual, necessary costs and expenses of
preserving the estate, including wages, salaries, or
commissions for services rendered after the commence-
ment of the case, and wages and benefits attributable
to any period of time after commencement of the case
as a result of the debtor’s violation of Federal law,
without regard to when the original unlawful act oc-
curred or to whether any services were rendered;’’.
SEC. 152. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC
SUPPORT OBLIGATION PROCEEDINGS.
Section 362(b)(2) of title 11, United States Code, is
amended—
(1) in subparagraph (A) by striking ‘‘or’’ at the
end;
(2) in subparagraph (B) by adding ‘‘or’’ at the
end; and
(3) by adding at the end the following:
‘‘(C) under subsection (a) of—
100
‘‘(i) the withholding of income for pay-
ment of a domestic support obligation pur-
suant to a judicial or administrative order
or statute for such obligation that first be-
comes payable after the date on which the
petition is filed; or
‘‘(ii) the withholding of income for
payment of a domestic support obligation
owed directly to the spouse, former spouse
or child of the debtor or the parent of such
child, pursuant to a judicial or administra-
tive order or statute for such obligation that
becomes payable before the date on which
the petition is filed unless the court finds,
after notice and hearing, that such with-
holding would render the plan infeasible;’’.
SEC. 153. AUTOMATIC STAY INAPPLICABLE TO CERTAIN
PROCEEDINGS AGAINST THE DEBTOR.
Section 362(b)(2) of title 11, United States Code, as
amended by section 153, is amended—
(1) in subparagraph (B) by striking ‘‘or’’ at the
end;
(2) by inserting after subparagraph (C) the fol-
lowing:
101
‘‘(D) the commencement or continuation of
a proceeding concerning a child custody or visi-
tation;
‘‘(E) the commencement or continuation of
a proceeding alleging domestic violence; or
‘‘(F) the commencement or continuation of
a proceeding seeking a dissolution of marriage,
except to the extent the proceeding concerns prop-
erty of the estate;’’.
TITLE II—DISCOURAGING
BANKRUPTCY ABUSE
SEC. 201. REENACTMENT OF CHAPTER 12.
(a) REENACTMENT.—Chapter 12 of title 11 of the
United States Code, as in effect on March 31, 1999, is here-
by reenacted.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on March 31, 1999.
SEC. 202. MEETINGS OF CREDITORS AND EQUITY SECURITY
HOLDERS.
Section 341 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(e) Notwithstanding subsections (a) and (b), the
court, on the request of a party in interest and after notice
and a hearing, for cause may order that the United States
trustee not convene a meeting of creditors or equity security
102
holders if the debtor has filed a plan as to which the debtor
solicited acceptances prior to the commencement of the
case.’’.
SEC. 203. PROTECTION OF RETIREMENT SAVINGS IN BANK-
RUPTCY.
(a) IN GENERAL.—Section 522 of title 11, United
States Code, as amended by sections 113, 125, and 147 is
amended—
(1) in subsection (b)—
(A) in paragraph (2)—
(i) by striking ‘‘(2)(A)’’ and inserting:
‘‘(3) Property listed in this paragraph is—
‘‘(A) subject to subsections (o) and (p),’’;
(ii) in subparagraph (B), by striking
‘‘and’’ at the end;
(iii) in subparagraph (C), by striking
the period at the end and inserting ‘‘; and’’;
and
(iv) by adding at the end the following:
‘‘(D) retirement funds to the extent that those
funds are in a fund or account that is exempt from
taxation under section 401, 403, 408, 408A, 414, 457,
or 501(a) of the Internal Revenue Code of 1986.’’;
(B) by striking paragraph (1) and insert-
ing:
103
‘‘(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) in the matter preceding paragraph
(2)—
(i) by striking ‘‘(b)’’ and inserting
‘‘(b)(1)’’;
(ii) by striking ‘‘paragraph (2)’’ both
places it appears and inserting ‘‘paragraph
(3)’’;
(iii) by striking ‘‘paragraph (1)’’ each
place it appears and inserting ‘‘paragraph
(2)’’; and
(iv) by striking ‘‘Such property is—’’;
and
(D) by adding at the end of the subsection
the following:
‘‘(4) For purposes of paragraph (3)(D) and subsection
(d)(12), the following shall apply:
‘‘(A) If the retirement funds are in a retirement
fund that has received a favorable determination pur-
suant to section 7805 of the Internal Revenue Code of
1986, and that determination is in effect as of the
date of the commencement of the case under section
104
301, 302, or 303 of this title, those funds shall be pre-
sumed to be exempt from the estate.
‘‘(B) If the retirement funds are in a retirement
fund that has not received a favorable determination
pursuant to 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) the retirement fund is in substantial
compliance with the applicable requirements of
the Internal Revenue Code of 1986.
‘‘(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, pursuant to sec-
tion 401(a)(31) of the Internal Revenue Code of 1986,
or otherwise, shall not cease to qualify for exemption
under paragraph (3)(D) or subsection (d)(12) by rea-
son of that direct transfer.
‘‘(D)(i) Any distribution that qualifies as an eli-
gible rollover distribution within the meaning of sec-
tion 402(c) of the Internal Revenue Code of 1986 or
that is described in clause (ii) shall not cease to qual-
105
ify for exemption under paragraph (3)(D) or sub-
section (d)(12) by reason of that distribution.
‘‘(ii) A distribution described in this clause is an
amount that—
‘‘(I) has been distributed from a fund or 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 that amount.’’;
and
(2) in subsection (d)—
(A) in the matter preceding paragraph (1),
by striking ‘‘subsection (b)(1)’’ and inserting
‘‘subsection (b)(2)’’; and
(B) by adding at the end the following:
‘‘(12) Retirement funds to the extent that those
funds are in a fund or account that is exempt from
taxation under section 401, 403, 408, 408A, 414, 457,
or 501(a) of the Internal Revenue Code of 1986.’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, as amended by sections 118, 132, 136,
and 141 is amended—
106
(1) in paragraph (27), by striking ‘‘or’’ at the
end;
(2) in paragraph (28), by striking the period
and inserting ‘‘; or’’;
(3) by inserting after paragraph (28) the fol-
lowing:
‘‘(29) under subsection (a), of withholding of in-
come from a debtor’s wages and collection of amounts
withheld, pursuant to the debtor’s agreement author-
izing that withholding and collection for the benefit of
a pension, profit-sharing, stock bonus, or other plan
established under section 401, 403, 408, 408A, 414,
457, or 501(a) of the Internal Revenue Code of 1986
that is sponsored by the employer of the debtor, or an
affiliate, successor, or predecessor of such employer—
‘‘(A) to the extent that the amounts withheld
and collected are used solely for payments relat-
ing to a loan from a plan that satisfies the re-
quirements of 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) in the case of a loan from a thrift sav-
ings plan described in subchapter III of title 5,
107
that satisfies the requirements of section 8433(g)
of such title.’’; and
(4) by adding at the end of the flush material
following paragraph (29) the following: ‘‘Paragraph
(29) does not apply to any amount owed to a plan
referred to in that paragraph that is incurred under
a loan made during the 1-year period preceding the
filing of a petition. Nothing in paragraph (29) may
be construed to provide that any loan made under
a governmental plan under section 414(d), or a con-
tract 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, is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(17);
(2) by striking the period at the end of para-
graph (18) and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(19) 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, pursuant to—
108
‘‘(A) a loan permitted under section
408(b)(1) of the Employee Retirement Income
Security Act of 1974) or subject to section 72(p)
of the Internal Revenue Code of 1986; or
‘‘(B) a loan from the thrift savings plan de-
scribed in subchapter III of title 5, that satisfies
the requirements of section 8433(g) of such title.
Paragraph (19) does not apply to any amount owed to a
plan referred to in that paragraph that is incurred under
a loan made during the 1-year period preceding the filing
of a petition. Nothing in paragraph (19) may be construed
to provide that any loan made under a governmental plan
under section 414(d), or a contract or account under section
403(b), of the Internal Revenue Code of 1986 constitutes a
claim or a debt under this title.’’.
(d) PLAN CONTENTS.—Section 1322 of title 11, United
States Code, is amended by adding at the end the following:
‘‘(f) A plan may not materially alter the terms of a
loan described in section 362(b)(29) of this title.’’.
SEC. 204. PROTECTION OF REFINANCE OF SECURITY INTER-
EST.
Subparagraphs (A), (B), and (C) of section 547(e)(2)
of title 11, United States Code, are amended by striking
‘‘10’’ each place it appears and inserting ‘‘30’’.
109
SEC. 
205. 
EXECUTORY 
CONTRACTS 
AND 
UNEXPIRED
LEASES.
Section 365(d)(4) of title 11, United States Code, is
amended to read as follows:
‘‘(4)(A) Subject to subparagraph (B), in any case
under any chapter in this title, an unexpired lease of non-
residential real property under which the debtor is the lessee
shall be deemed rejected, and the trustee shall immediately
surrender such property to the lessor, if the trustee does not
assume or reject the unexpired lease by the earlier of—
‘‘(i) the date that is 120 days after the date of
the order for relief; or
‘‘(ii) the date of the entry of an order confirming
a plan.
‘‘(B)(i) The court may extend the period determined
under subparagraph (A) for 120 days upon motion of the
trustee or the lessor for cause.
‘‘(ii) If the court grants an extension under clause (i),
the court may grant a subsequent extension only upon prior
written consent of the lessor.’’.
SEC. 206. CREDITORS AND EQUITY SECURITY HOLDERS
COMMITTEES.
Section 1102(a)(2) of title 11, United States Code, is
amended by inserting before the first sentence the following:
‘‘On its own motion or on request of a party in interest,
and after notice and hearing, the court may order a change
110
in the membership of a committee appointed under this sub-
section, if the court determines that the change is necessary
to ensure adequate representation of creditors or equity se-
curity holders.’’.
SEC. 207. AMENDMENT TO SECTION 546 OF TITLE 11,
UNITED STATES CODE.
Section 546 of title 11, United States Code, is amended
by inserting at the end thereof:
‘‘(i) Notwithstanding section 545 (2) and (3) of this
title, the trustee may not avoid a warehouseman’s lien for
storage, transportation or other costs incidental to the stor-
age and handling of goods, as provided by section 7–209
of the Uniform Commercial Code.’’.
SEC. 208. LIMITATION.
Section 546(c)(1)(B) of title 11, United States Code,
is amended by striking ‘‘20’’ and inserting ‘‘45’’.
SEC. 209. AMENDMENT TO SECTION 330(a) OF TITLE 11,
UNITED STATES CODE.
Section 330(a) of title 11, United States Code, is
amended—
(1) in paragraph (3)—
(A) in subparagraph (A) after ‘‘awarded’’,
by inserting ‘‘to an examiner, chapter 11 trustee,
or professional person’’; and
111
(B) by redesignating subdivisions (A)
through (E) as clauses (i) through (iv), respec-
tively; and
(2) by adding at the the following:
‘‘(B) In determining the amount of reasonable
compensation to be awarded a trustee, the court shall
treat such compensation as a commission based on the
results achieved.’’.
SEC. 210. POSTPETITION DISCLOSURE AND SOLICITATION.
Section 1125 of title 11, United States Code, is amend-
ed by adding at the end the following:
‘‘(g) Notwithstanding subsection (b), an acceptance or
rejection of the plan may be solicited from a holder of a
claim or interest if such solicitation complies with applica-
ble nonbankruptcy law and if such holder was solicited be-
fore the commencement of the case in a manner complying
with applicable nonbankruptcy law.’’.
SEC. 211. PREFERENCES.
Section 547(c) of title 11, United States Code, is
amended—
(1) by amending paragraph (2) to read as fol-
lows:
‘‘(2) to the extent that such transfer was in pay-
ment of a debt incurred by the debtor in the ordinary
112
course of business or financial affairs of the debtor
and the transferee, and such transfer was—
‘‘(A) made in the ordinary course of busi-
ness or financial affairs of the debtor and the
transferee; or
‘‘(B) made according to ordinary business
terms;’’;
(2) in paragraph (7) by striking ‘‘or’’ at the end;
(3) in paragraph (8) by striking the period at
the end and inserting ‘‘; or’’; and
(4) by adding at the end the following:
‘‘(9) if, in a case filed by a debtor whose debts
are not primarily consumer debts, the aggregate value
of all property that constitutes or is affected by such
transfer is less than $5,000.’’.
SEC. 212. VENUE OF CERTAIN PROCEEDINGS.
Section 1409(b) of title 28, United States Code, is
amended by inserting ‘‘, or a nonconsumer debt against a
noninsider of less than $10,000,’’ after ‘‘$5,000’’.
SEC. 213. PERIOD FOR FILING PLAN UNDER CHAPTER 11.
Section 1121(d) of title 11, United States Code, is
amended—
(1) by striking ‘‘On’’ and inserting ‘‘(1) Subject
to paragraph (1), on’’; and
(2) by adding at the end the following:
113
‘‘(2)(A) Such 120-day period may not be extended be-
yond a date that is 18 months after the date of the order
for relief under this chapter.
‘‘(B) Such 180-day period may not be extended beyond
a date that is 20 months after the date of the order for relief
under this chapter.’’.
SEC. 214. FEES ARISING FROM CERTAIN OWNERSHIP INTER-
ESTS.
Section 523(a)(16) of title 11, United States Code, is
amended—
(1) by striking ‘‘dwelling’’ the first place it ap-
pears;
(2) by striking ‘‘ownership or’’ and inserting
‘‘ownership,’’;
(3) by striking ‘‘housing’’ the first place it ap-
pears; and
(4) by striking ‘‘but only’’ and all that follows
through ‘‘such period,’’, and inserting ‘‘or a lot in a
homeowners association, for as long as the debtor or
the trustee has a legal, equitable, or possessory owner-
ship interest in such unit, such corporation, or such
lot,’’.
114
SEC. 215. CLAIMS RELATING TO INSURANCE DEPOSITS IN
CASES 
ANCILLARY 
TO 
FOREIGN 
PRO-
CEEDINGS.
Section 304 of title 11, United States Code, is amended
to read as follows:
‘‘§ 304. Cases ancillary to foreign proceedings
‘‘(a) For purposes of this section—
‘‘(1) the term ‘domestic insurance company’
means a domestic insurance company, as such term
is used in section 109(b)(2);
‘‘(2) the term ‘foreign insurance company’ means
a foreign insurance company, as such term is used in
section 109(b)(3);
‘‘(3) the term ‘United States claimant’ means a
beneficiary of any deposit referred to in subsection (b)
or any multibeneficiary trust referred to in subsection
(b);
‘‘(4) the term ‘United States creditor’ means,
with respect to a foreign insurance company—
‘‘(A) a United States claimant; or
‘‘(B) any business entity that operates in
the United States and that is a creditor; and
‘‘(5) the term ‘United States policyholder’ means
a holder of an insurance policy issued in the United
States.
115
‘‘(b) The court may not grant relief under chapter 15
of this title with respect to any deposit, escrow, trust fund,
or other security required or permitted under any applica-
ble State insurance law or regulation for the benefit of
claim holders in the United States.’’.
SEC. 216. DEFAULTS BASED ON NONMONETARY OBLIGA-
TIONS.
(a) 
EXECUTORY
CONTRACTS
AND
UNEXPIRED
LEASES.—Section 365 of title 11, United States Code, is
amended—
(1) in subsection (b)—
(A) in paragraph (1)(A) by striking the
semicolon at the end and inserting the following:
‘‘other than a default that is a breach of a provision
relating to—
‘‘(i) the satisfaction of any provision (other
than a penalty rate or penalty provision) relat-
ing to a default arising from any failure to per-
form nonmonetary obligations under an unex-
pired lease of real property (excluding executory
contracts that transfer a right or interest under
a filed or issued patent, copyright, trademark,
trade dress, or trade secret), if it is impossible
for the trustee to cure such default by performing
116
nonmonetary acts at and after the time of as-
sumption; or
‘‘(ii) the satisfaction of any provision (other
than a penalty rate or penalty provision) relat-
ing to a default arising from any failure to per-
form nonmonetary obligations under an execu-
tory contract, if it is impossible for the trustee
to cure such default by performing nonmonetary
acts at and after the time of assumption and if
the court determines, based on the equities of the
case, that this subparagraph should not apply
with respect to such default;’’; and
(B) by amending paragraph (2)(D) to read
as follows:
‘‘(D) the satisfaction of any penalty rate or pen-
alty provision relating to a default arising from a
failure to perform nonmonetary obligations under an
executory contract (excluding executory contracts that
transfer a right or interest under a filed or issued
patent, copyright, trademark, trade dress, or trade se-
cret) or under an unexpired lease of real or personal
property.’’;
(2) in subsection (c)—
(A) in paragraph (2) by adding ‘‘or’’ at the
end;
117
(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 para-
graph and inserting a period.
(b) IMPAIRMENT OF CLAIMS OR INTERESTS.—Section
1124(2) of title 11, United States Code, is amended—
(1) in subparagraph (A) by inserting ‘‘or of a
kind that section 365(b)(1)(A) of this title expressly
does not require to be cured’’ before the semicolon at
the end;
(2) in subparagraph (C) by striking ‘‘and’’ at
the end;
(3) by redesignating subparagraph (D) as sub-
paragraph (E); and
(4) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) if such claim or such interest arises
from any failure to perform a nonmonetary obli-
118
gation, compensates the holder of such claim or
such interest (other than the debtor or an in-
sider) for any actual pecuniary loss incurred by
such holder as a result of such failure; and’’.
SEC. 217. SHARING OF COMPENSATION.
Section 504 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(c) This section shall not apply with respect to shar-
ing, or agreeing to share, compensation with a bona fide
public service attorney referral program that operates in
accordance with non-Federal law regulating attorney refer-
ral services and with rules of professional responsibility ap-
plicable to attorney acceptance of referrals.’’.
SEC. 218. PRIORITY FOR ADMINISTRATIVE EXPENSES.
Section 503(b) of title 11, United States Code, is
amended—
(1) by deleting ‘‘and’’ at the end of paragraph
(5);
(2) by striking the period at the end of para-
graph (6) and inserting ‘‘; and’’;
(3) by inserting the following after paragraph
(6):
‘‘(7) with respect to a nonresidential real prop-
erty lease previously assumed under section 365, and
subsequently rejected, a sum equal to all monetary ob-
119
ligations due, excluding those arising from or relating
to a failure to operate or penalty provisions, for the
period of one year following the later of the rejection
date or date of actual turnover of the premises, with-
out reduction or setoff for any reason whatsoever ex-
cept for sums actually received or to be received from
a nondebtor; and the claim for remaining sums due
for the balance of the term of the lease shall be a
claim under section 502(b)(6).’’.
TITLE III—GENERAL BUSINESS
BANKRUPTCY PROVISIONS
SEC. 301. DEFINITION OF DISINTERESTED PERSON.
Section 101(14) of title 11, United States Code, is
amended to read as follows:
‘‘(14) ‘disinterested person’ means a person
that—
‘‘(A) is not a creditor, an equity security
holder, or an insider;
‘‘(B) is not and was not, within 2 years be-
fore the date of the filing of the petition, a direc-
tor, officer, or employee of the debtor; and
‘‘(C) does not have an interest materially
adverse to the interest of the estate or of any
class of creditors or equity security holders, by
reason of any direct or indirect relationship to,
120
connection with, or interest in, the debtor, or for
any other reason;’’.
SEC. 302. MISCELLANEOUS IMPROVEMENTS.
(a) WHO MAY BE A DEBTOR.—Section 109 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(h)(1) Subject to paragraphs (2) and (3) and not-
withstanding any other provision of this section, an indi-
vidual may not be a debtor under this title unless that indi-
vidual has, during the 90-day period preceding the date of
filing of the petition of that individual, received credit
counseling, including, at a minimum, participation in an
individual or group briefing that outlined the opportunities
for available credit counseling and assisted that individual
in performing an initial budget analysis, through a credit
counseling program (offered through an approved credit
counseling service described in section 111(a)).
‘‘(2)(A) Paragraph (1) shall not apply with respect to
a debtor who resides in a district for which the United
States trustee or bankruptcy administrator of the bank-
ruptcy court of that district determines that the approved
credit counseling services for that district are not reason-
ably able to provide adequate services to the additional in-
dividuals who would otherwise seek credit counseling from
121
those programs by reason of the requirements of paragraph
(1).
‘‘(B) Each United States trustee or bankruptcy admin-
istrator that makes a determination described in subpara-
graph (A) shall review that determination not later than
one year after the date of that determination, and not less
frequently than every year thereafter.
‘‘(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 credit counseling
service, but was unable to obtain the services referred
to in paragraph (1) during the 5-day period begin-
ning on the date on which the debtor made that re-
quest or that the exigent circumstances require filing
before such 5-day period expires; 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
122
debtor after the date that is 30 days after the debtor files
a petition.’’.
(b) CHAPTER 7 DISCHARGE.—Section 727(a) of title
11, United States Code, is amended—
(1) in paragraph (9), by striking ‘‘or’’ at the
end;
(2) in paragraph (10), by striking the period
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(11) after the filing of the petition, the debtor
failed to complete an instructional course concerning
personal financial management described in section
111 unless the debtor resides in a district for which
the United States trustee or bankruptcy adminis-
trator of the bankruptcy court of that district deter-
mines that the approved instructional courses are not
adequate to provide service to the additional individ-
uals who would be required to compete the instruc-
tional course by reason of the requirements of this sec-
tion. Each United States trustee or bankruptcy ad-
ministrator that makes such a determination shall re-
view that determination not later than 1 year after
the date of that determination, and not less frequently
than every year thereafter.’’.
123
(c) CHAPTER 13 DISCHARGE.—Section 1328 of title
11, United States Code, as amended by section 137, is
amended by adding at the end the following:
‘‘(g) 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.
‘‘(h) Subsection (g) shall not apply with respect to a
debtor who resides in a district for which the United States
trustee or bankruptcy administrator of the bankruptcy
court of that district determines that the approved instruc-
tional courses are not adequate to provide service to the ad-
ditional individuals who would be required to complete the
instructional course by reason of the requirements of this
section.
‘‘(i) Each United States trustee or bankruptcy admin-
istrator that makes a determination described in subsection
(h) shall review that determination not later than 1 year
after the date of that determination, and not less frequently
than every year thereafter.’’.
(d) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, as amended by sections 604 and 120,
is amended by adding at the end the following:
‘‘(d) In addition to the requirements under subsection
(a), an individual debtor shall file with the court—
124
‘‘(1) a certificate from the credit counseling serv-
ice that provided the debtor services under section
109(h); and
‘‘(2) a copy of the debt repayment plan, if any,
developed under section 109(h) through the credit
counseling service referred to in paragraph (1).’’.
(e) GENERAL PROVISIONS.—
(1) IN GENERAL.—Chapter 1 of title 11, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 111. Credit counseling services; financial manage-
ment instructional courses
‘‘The clerk of each district shall maintain a list of cred-
it counseling services that provide 1 or more programs de-
scribed in section 109(h) and a list of instructional courses
concerning personal financial management that have been
approved by—
‘‘(1) the United States trustee; or
‘‘(2) the bankruptcy administrator for the dis-
trict.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 1 of title 11, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘111. Credit counseling services; financial management instructional courses.’’.
125
(e) DEFINITIONS.—Section 101 of title 11, United
States Code, is amended—
(1) by inserting after paragraph (13) the fol-
lowing:
‘‘(13A) ‘debtor’s principal residence’ means a
residential structure including incidental property
when the structure contains 1 to 4 units, whether or
not that structure is attached to real property, and
includes, without limitation, an individual condo-
minium or cooperative unit or mobile or manufac-
tured home or trailer;’’;
(2) by inserting after paragraph (27A), as added
by section 318 of this Act, the following:
‘‘(27B) ‘incidental property’ means property in-
cidental to such residence including, without limita-
tion, property commonly conveyed with a principal
residence where the real estate is located, window
treatments, carpets, appliances and equipment located
in the residence, and easements, appurtenances, fix-
tures, rents, royalties, mineral rights, oil and gas
rights, escrow funds and insurance proceeds;’’;
(3) in section 362(b), as amended by sections
117, 118, 132, 136, 141 203, 818, and 1007,—
(A) in paragraph (28) by striking ‘‘or’’ at
the end thereof;
126
(B) in paragraph (29) by striking the pe-
riod at the end and inserting ‘‘; or’’; and
(C) by inserting after paragraph (29) the
following:
‘‘(30) under subsection (a), until a prepetition
default is cured fully in a case under chapter 13 of
this title by actual payment of all arrears as required
by the plan, of the postponement, continuation or
other similar delay of a prepetition foreclosure pro-
ceeding or sale in accordance with applicable non-
bankruptcy law, but nothing herein shall imply that
such postponement, continuation or other similar
delay is a violation of the stay under subsection (a).’’;
and
(4) by amending section 1322(b)(2) to read as
follows:
‘‘(2) modify the rights of holders of secured
claims, other than a claim secured primarily by a se-
curity interest in property used as the debtor’s prin-
cipal residence at any time during 180 days prior to
the filing of the petition, or of holders of unsecured
claims, or leave unaffected the rights of holders of any
class of claims;’’.
(f) LIMITATION.—Section 362 of title 11, United States
Code, is amended by adding at the end the following:
127
‘‘(j) If one case commenced under chapter 7, 11, or
13 of this title is dismissed due to the creation of a debt
repayment plan administered by a credit counseling agency
approved pursuant to section 111 of this title, then for pur-
poses of section 362(c)(3) of this title the subsequent case
commenced under any such chapter shall not be presumed
to be filed not in good faith.’’.
(g) RETURN OF GOODS SHIPPED.—Section 546(g) of
title 11, United States Code, as added by section 222(a)
of Public Law 103–394, is amended to read as follows:
‘‘(h) Notwithstanding the rights and powers of a trust-
ee under sections 544(a), 545, 547, 549, and 553 of this
title, if the court determines on a motion by the trustee
made not later than 120 days after the date of the order
for relief in a case under chapter 11 of this title and after
notice and hearing, that a return is in the best interests
of the estate, the debtor, with the consent of the creditor,
and subject to the prior rights, if any, of third parties in
such goods, may return goods shipped to the debtor by the
creditor before the commencement of the case, and the cred-
itor may offset the purchase price of such goods against any
claim of the creditor against the debtor that arose before
the commencement of the case.’’.
128
SEC. 303. EXTENSIONS.
Section 302(d)(3) of the Bankruptcy, Judges, United
States Trustees, and Family Farmer Bankruptcy Act of
1986 (28 U.S.C. 581 note) is amended—
(1) in subparagraph (A), in the matter following
clause (ii), by striking ‘‘or October 1, 2002, whichever
occurs first’’; and
(2) in subparagraph (F)—
(A) in clause (i)—
(i) in subclause (II), by striking ‘‘or
October 1, 2002, whichever occurs first’’;
and
(ii) in the matter following subclause
(II), by striking ‘‘October 1, 2003, or’’; and
(B) in clause (ii), in the matter following
subclause (II)—
(i) by striking ‘‘before October 1, 2003,
or’’; and
(ii) by striking ‘‘, whichever occurs
first’’.
SEC. 304. LOCAL FILING OF BANKRUPTCY CASES.
Section 1408 of title 28, United States Code, is
amended—
(1) by striking ‘‘Except’’ and inserting ‘‘(a) Ex-
cept’’; and
(2) by adding at the end the following:
129
‘‘(b) For the purposes of subsection (a), if the debtor
is a corporation, the domicile and residence of the debtor
are conclusively presumed to be where the debtor’s principal
place of business in the United States is located.’’.
SEC. 305. PERMITTING ASSUMPTION OF CONTRACTS.
(a) Section 365(c) of title 11, United States Code, is
amended to read as follows:
‘‘(c)(1) The trustee may not assume or assign an execu-
tory contract or unexpired lease of the debtor, whether or
not the contract or lease prohibits or restricts assignment
of rights or delegation of duties, if—
‘‘(A)(i) applicable law excuses a party to the
contract or lease from accepting performance from or
rendering performance to an assignee of the contract
or lease, whether or not the contract or lease prohibits
or restricts assignment of rights or delegation of du-
ties; and
‘‘(ii) the party does not consent to the assump-
tion or assignment; or
‘‘(B) the contract is a contract to make a loan,
or extend other debt financing or financial accom-
modations, to or for the benefit of the debtor, or to
issue a security of the debtor.
‘‘(2) Notwithstanding paragraph (1)(A) and applica-
ble nonbankruptcy law, in a case under chapter 11 of this
130
title, a trustee in a case in which a debtor is a corporation,
or a debtor in possession, may assume an executory contract
or unexpired lease of the debtor, whether or not the contract
or lease prohibits or restricts assignment of rights or delega-
tion of duties.
‘‘(3) The trustee may not assume or assign an unex-
pired lease of the debtor of nonresidential real property,
whether or not the contract or lease prohibits or restricts
assignment of rights or delegation of duties, if the lease has
been terminated under applicable nonbankruptcy law before
the order for relief.’’.
(b) Section 365(d) of title 11, United States Code, is
amended by striking paragraphs (5), (6), (7), (8), and (9),
and redesignating paragraph (10) as paragraph (5).
(c) Section 365(e) of title 11, United States Code, is
amended to read as follows:
‘‘(e)(1) Notwithstanding a provision in an executory
contract or unexpired lease, or in applicable law, an execu-
tory contract or unexpired lease of the debtor may not be
terminated or modified, and any right or obligation under
such contract or lease may not be terminated or modified,
at any time after the commencement of the case solely be-
cause of a provision in such contract or lease that is condi-
tioned on—
131
‘‘(A) the insolvency or financial condition of the
debtor at any time before the closing of the case;
‘‘(B) the commencement of a case under this
title; or
‘‘(C) the appointment of or taking possession by
a trustee in a case under this title or a custodian be-
fore such commencement.
‘‘(2) Paragraph (1) does not apply to an executory
contract or unexpired lease of the debtor if the trustee may
not assume or assign, and the debtor in possession may not
assume, the contract or lease by reason of the provisions
of subsection (c) of this section.’’.
(d) Section 365(f)(1) of title 11, United States Code,
is amended by striking the semicolon and all that follows
through ‘‘event’’.
TITLE IV SMALL BUSINESS
BANKRUPTCY PROVISIONS
SEC. 401. FLEXIBLE RULES FOR DISCLOSURE STATEMENT
AND PLAN.
(a) Section 1125(a)(1) of title 11, United States Code,
is amended by inserting before the semicolon following:
‘‘and in determining whether a disclosure statement pro-
vides adequate information, the court shall consider the
complexity of the case, the benefit of additional information
132
to creditors and other parties in interest, and the cost of
providing additional information’’.
(b) Section 1125(f) of title 11, United States Code, is
amended to read as follows:
‘‘(f) Notwithstanding subsection (b)—
‘‘(1) the court may determine that the plan itself
provides adequate information and that a separate
disclosure statement is not necessary;
‘‘(2) the court may approve a disclosure state-
ment submitted on standard forms approved by the
court or adopted pursuant to section 2075 of title 28;
and
‘‘(3)(A) the court may conditionally approve a
disclosure statement subject to final approval after
notice and a hearing;
‘‘(B) acceptances and rejections of a plan may be
solicited based on a conditionally approved disclosure
statement if the debtor provides adequate information
to each holder of a claim or interest that is solicited,
but a conditionally approved disclosure statement
shall be mailed not less than 20 days before the date
of the hearing on confirmation of the plan; and
‘‘(C) the hearing on the disclosure statement may be
combined with the hearing on confirmation of a plan.’’.
133
SEC. 402. DEFINITIONS.
(a) DEFINITIONS. Section 101 of title 11, United States
Code, is amended by striking paragraph (51C) and insert-
ing the following:
‘‘(51C) ‘small business case’ means a case filed
under chapter 11 of this title in which the debtor is
a small business debtor; and
‘‘(51D) ‘small business debtor’ means (A) a per-
son (including affiliates of such person that are also
debtors under this title) that has aggregate noncontin-
gent, liquidated secured and unsecured debts as of the
date of the petition or the order for relief in an
amount not more than $4,000,000 (excluding debts
owed to 1 or more affiliates or insiders), except that
if a group of affiliated debtors has aggregate non-
contingent liquidated secured and unsecured debts
greater than $4,000,000 (excluding debt owed to 1 or
more affiliates or insiders), then no member of such
group is a small business debtor;’’.
(b) CONFORMING AMENDMENT.—Section 1102(a)(3) of
title 11, United States Code, is amended by inserting ‘‘debt-
or’’ after ‘‘small business’’ .
SEC. 403. STANDARD FORM DISCLOSURE STATEMENT AND
PLAN.
The Advisory Committee on Bankruptcy Rules of the
Judicial Conference of the United States shall, within a rea-
134
sonable period of time after the date of the enactment of
this Act, propose for adoption standard form disclosure
statements and plans of reorganization for small business
debtors (as defined in section 101 of title 11, United States
Code, as amended by this Act), designed to achieve a prac-
tical balance between—
(1) the reasonable needs of the courts, the United
States trustee, creditors, and other parties in interest
for reasonably complete information; and
(2) economy and simplicity for debtors.
SEC. 404. UNIFORM NATIONAL REPORTING REQUIREMENTS.
(a) REPORTING REQUIRED.—
(1) Title 11 of the United States Code is amend-
ed by inserting after section 307 the following:
‘‘§ 308. Debtor reporting requirements
‘‘A small business debtor shall file periodic financial
and other reports containing information including—
‘‘(1) the debtor’s profitability, that is, approxi-
mately how much money the debtor has been earning
or losing during current and recent fiscal periods;
‘‘(2) reasonable approximations of the debtor’s
projected cash receipts and cash disbursements over a
reasonable period;
‘‘(3) comparisons of actual cash receipts and dis-
bursements with projections in prior reports; and
135
‘‘(4) whether the debtor is—
‘‘(A) in compliance in all material respects
with postpetition requirements imposed by this
title and the Federal Rules of Bankruptcy Proce-
dure; and
‘‘(B) timely filing tax returns and paying
taxes and other administrative claims when due,
and, if not, what the failures are and how, at
what cost, and when the debtor intends to rem-
edy such failures; and
‘‘(5) such other matters as are in the best inter-
ests of the debtor and creditors, and in the public in-
terest in fair and efficient procedures under chapter
11 of this title.’’.
(2) The table of sections of chapter 3 of title 11,
United States Code, is amended by inserting after the
item relating to section 307 the following:
‘‘308. Debtor reporting requirements.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect 60 days after the date on which
rules are prescribed pursuant to section 2075, title 28,
United States Code to establish forms to be used to comply
with section 308 of title 11, United States Code, as added
by subsection (a).
136
SEC. 405. UNIFORM REPORTING RULES AND FORMS FOR
SMALL BUSINESS CASES.
(a) PROPOSAL OF RULES AND FORMS.—The Advisory
Committee on Bankruptcy Rules of the Judicial Conference
of the United States shall propose for adoption amended
Federal Rules of Bankruptcy Procedure and Official Bank-
ruptcy Forms to be used by small business debtors to file
periodic financial and other reports containing informa-
tion, including information relating to—
(1) the debtor’s profitability;
(2) the debtor’s cash receipts and disbursements;
and
(3) whether the debtor is timely filing tax re-
turns and paying taxes and other administrative
claims when due.
(b) PURPOSE.—The rules and forms proposed under
subsection (a) shall be designed to achieve a practical bal-
ance between—
(1) the reasonable needs of the bankruptcy court,
the United States trustee, creditors, and other parties
in interest for reasonably complete information;
(2) the small business debtor’s interest that re-
quired reports be easy and inexpensive to complete;
and
137
(3) the interest of all parties that the required re-
ports help the small business debtor to understand its
financial condition and plan its future.
SEC. 406. DUTIES IN SMALL BUSINESS CASES.
(a) DUTIES IN CHAPTER 11 CASES.—Title 11 of the
United States Code is amended by inserting after section
1114 the following:
‘‘§ 1115. Duties of trustee or debtor in possession in
small business cases
‘‘(a) In a small business case, a trustee or the debtor
in possession, in addition to the duties provided in this title
and as otherwise required by law, shall—
‘‘(1) append to the voluntary petition or, in an
involuntary case, file within 3 days after the date of
the order for relief—
‘‘(A) its most recent balance sheet, statement
of operations, cash-flow statement, Federal in-
come tax return; or
‘‘(B) a statement made under penalty of
perjury that no balance sheet, statement of oper-
ations, or cash-flow statement has been prepared
and no Federal tax return has been filed;
‘‘(2) attend, through its responsible individual,
meetings scheduled by the court or the United States
trustee, including initial debtor interviews and meet-
138
ings of creditors convened under section 341 of this
title;
‘‘(3) timely file all schedules and statements of
financial affairs, unless the court, after notice and a
hearing, grants an extension, which shall not extend
such time period to a date later than 30 days after
the date of the order for relief, absent extraordinary
and compelling circumstances;
‘‘(4) file all postpetition financial and other re-
ports required by the Federal Rules of Bankruptcy
Procedure or by local rule of the district court;
‘‘(5) subject to section 363(c)(2) of this title,
maintain insurance customary and appropriate to
the industry;
‘‘(6)(A) timely file tax returns;
‘‘(B) subject to section 363(c)(2) of this title,
timely pay all administrative expense tax claims, ex-
cept those being contested by appropriate proceedings
being diligently prosecuted; and
‘‘(C) subject to section 363(c)(2) of this title, es-
tablish 1 or more separate deposit accounts not later
than 10 business days after the date of order for relief
(or as soon thereafter as possible if all banks con-
tacted decline the business) and deposit therein, not
later than 1 business day after receipt thereof or a re-
139
sponsible time set by the court, all taxes payable for
periods beginning after the date the case is com-
menced that are collected or withheld by the debtor for
governmental units unless the court waives this re-
quirement after notice and hearing; and
‘‘(7) allow the United States trustee, or its des-
ignated representative, to inspect the debtor’s business
premises, books, and records at reasonable times, after
reasonable prior written notice, unless notice is
waived by the debtor.’’.
(b) TECHNICAL AMENDMENT.—The table of sections of
chapter 11, United States Code, is amended by inserting
after the item relating to section 1114 the following:
‘‘1115. Duties of trustee or debtor in possession in small business cases.’’.
SEC. 407. PLAN FILING AND CONFIRMATION DEADLINES.
Section 1121(e) of title 11, United States Code, is
amended to read as follows:
‘‘(e) In a small business case—
‘‘(1) only the debtor may file a plan until after
90 days after the date of the order for relief, unless
a trustee has been appointed under this chapter, or
unless the court, on request of a party in interest and
after notice and hearing, shortens such time;
‘‘(2) the debtor shall file a plan, and any nec-
essary disclosure statement, not later than 90 days
after the date of the order for relief, unless the United
140
States 
Trustee 
has 
appointed 
under 
section
1102(a)(1) of this title a committee of unsecured
creditors that the court has determined, before the 90
days has expired, is sufficiently active and represent-
ative to provide effective oversight of the debtor; and
‘‘(3) the time periods specified in paragraphs (1)
and (2) of this subsection and the time fixed in sec-
tion 1129(e) of this title for confirmation of a plan,
may be extended only as follows:
‘‘(A) On request of a party in interest made
within the respective periods, and after notice
and hearing, the court may for cause grant one
or more extensions, cumulatively not to exceed 60
days, if the movant establishes—
‘‘(i) that no cause exists to dismiss or
convert the case or appoint a trustee or ex-
aminer under subparagraphs (A) (I) of sec-
tion 1112(b) of this title; and
‘‘(ii) that there is a reasonable possi-
bility the court will confirm a plan within
a reasonable time;
‘‘(B) On request of a party in interest made
within the respective periods, and after notice
and hearing, the court may for cause grant one
or more extensions in excess of those authorized
141
under subparagraph (A) of this paragraph, if the
movant establishes:
‘‘(i) that no cause exists to dismiss or
convert the case or appoint a trustee or ex-
aminer under subparagraphs (A) (I) of sec-
tion 1112(b)(3) of this title; and
‘‘(ii) that it is more likely than not
that the court will confirm a plan within a
reasonable time; and
‘‘(C) a new deadline shall be imposed when-
ever an extension is granted.’’.
SEC. 408. PLAN CONFIRMATION DEADLINE.
Section 1129 of title 11, United States Code, is amend-
ed by adding at the end the following:
‘‘(e) In a small business case, the debtor shall confirm
a plan not later than 150 days after the date of the order
for relief unless—
‘‘(1) the United States Trustee has appointed,
under section 1102(a)(1) of this title, a committee of
unsecured creditors that the court has determined, be-
fore the 150 days has expired, is sufficiently active
and representative to provide effective oversight of the
debtor; or
‘‘(2) such 150-day period is extended as provided
in section 1121(e)(3) of this title.’’.
142
SEC. 409. PROHIBITION AGAINST EXTENSION OF TIME.
Section 105(d) of title 11, United States Code, is
amended—
(1) in paragraph (2)(B)(vi) by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(2) by adding at the end the following:
‘‘(3) in a small business case, not extend the time
periods specified in sections 1121(e) and 1129(e) of
this title except as provided in section 1121(e)(3) of
this title.’’.
SEC. 410. DUTIES OF THE UNITED STATES TRUSTEE.
(a) DUTIES OF THE UNITED STATES TRUSTEE.—
Section 586(a) of title 28, United States Code, is
amended—
(1) in paragraph (3)—
(A) in subparagraph (G) by striking ‘‘and
at the end’’;
(B) by redesignating subparagraph (H) as
subparagraph (I); and
(C) by inserting after subparagraph (G) the
following:
‘‘(H) in small business cases (as defined in
section 101 of title 11), performing the addi-
tional duties specified in title 11 pertaining to
such cases’’;
143
(2) in paragraph (5) by striking ‘‘and at the
end’’;
(3) in paragraph (6) by striking the period at
the end and inserting ‘‘; and’’; and
(4) by inserting after paragraph (7) the fol-
lowing:
‘‘(7) in each of such small business cases—
‘‘(A) conduct an initial debtor interview as
soon as practicable after the entry of order for
relief but before the first meeting scheduled under
section 341(a) of title 11 at which time the
United States trustee shall begin to investigate
the debtor’s viability, inquire about the debtor’s
business plan, explain the debtor’s obligations to
file monthly operating reports and other required
reports, attempt to develop an agreed scheduling
order, and inform the debtor of other obligations;
‘‘(B) when determined to be appropriate
and advisable, visit the appropriate business
premises of the debtor and ascertain the state of
the debtor’s books and records and verify that the
debtor has filed its tax returns; and
‘‘(C) review and monitor diligently the
debtor’s activities, to identify as promptly as
144
possible whether the debtor will be unable to con-
firm a plan; and
‘‘(8) in cases in which the United States trustee
finds material grounds for any relief under section
1112 of title 11, the United States trustee shall apply
promptly to the court for relief.’’.
SEC. 411. SCHEDULING CONFERENCES.
Section 105(d) of title 11, United States Code, is
amended—
(1) in the matter preceding paragraph (1) by
striking ‘‘, may’’;
(2) by amending paragraph (1) to read as fol-
lows:
‘‘(1) shall hold such status conferences as are
necessary to further the expeditious and economical
resolution of the case; and’’; and
(3) in paragraph (2) by striking ‘‘unless incon-
sistent with another provision of this title or with ap-
plicable Federal Rules of Bankruptcy Procedure’’, and
inserting ‘‘may’’.
SEC. 412. SERIAL FILER PROVISIONS.
Section 362 of title 11, United States Code, as amend-
ed by section 302, is amended—
(1) in subsection (i) as so redesignated by section
122—
145
(A) by striking ‘‘An’’ and inserting ‘‘(1)
Except as provided in paragraph (2), an’’; and
(B) by adding at the end the following:
‘‘(2) If such violation is based on an action taken by
an entity in the good-faith belief that subsection (h) applies
to the debtor, then recovery under paragraph (1) against
such entity shall be limited to actual damages.’’; and
(2) by inserting after subsection (j), as added by
section 302, the following:
‘‘(k)(1) Except as provided in paragraph (2) of this
subsection, the provisions of subsection (a) of thissection
shall not apply in a case in which the debtor—
‘‘(A) is a debtor in a case under this title pend-
ing at the time the petition is filed;
‘‘(B) was a debtor in a case under this title
which was dismissed for any reason by an order that
became final in the 2-year period ending on the date
of the order for relief entered with respect to the peti-
tion;
‘‘(C) was a debtor in a case under this title in
which a chapter 11, 12, or 13 plan was confirmed in
the 2-year period ending on the date of the order for
relief entered with respect to the petition; or
146
‘‘(D) is an entity that has succeeded to substan-
tially all of the assets or business of a debtor described
in subparagraph (A), (B), or (C).
‘‘(2) This subsection shall not apply—
‘‘(A) to a case initiated by an involuntary peti-
tion filed by a creditor that is not an insider or affil-
iate of the debtor; or
‘‘(B) after such time as the debtor, after notice
and a hearing, demonstrates by a preponderance of
the evidence, that the filing of such petition resulted
from circumstances beyond the control of the debtor
and not foreseeable at the time the earlier case was
filed; and that it is more likely than not that the
court will confirm a plan, other than a liquidating
plan, within a reasonable time.’’.
SEC. 413. EXPANDED GROUNDS FOR DISMISSAL OR CON-
VERSION AND APPOINTMENT OF TRUSTEE OR
EXAMINER.
(a) EXPANDED GROUNDS FOR DISMISSAL OR CONVER-
SION.—Section 1112(b) of title 11, United States Code, is
amended to read as follows:
‘‘(b)(1) Except as provided in paragraphs (2) and (4)
of this subsection, and in subsection (c) of this section, on
request of a party in interest, and after notice and a hear-
ing, the court shall convert a case under this chapter to
147
a case under chapter 7 of this title or dismiss a case under
this chapter, or appoint a trustee or examiner under section
1104(e) of this title, whichever is in the best interest of
creditors and the estate, if the movant establishes cause.
‘‘(2) The court may decline to grant the relief specified
in paragraph (1) of this subsection if the debtor or another
party in interest objects and establishes by a preponderance
of the evidence that—
‘‘(A) it is more likely than not that a plan will
be confirmed within a time as fixed by this title or
by order of the court entered pursuant to section
1121(e)(3), or within a reasonable time if no time has
been fixed; and
‘‘(B) if the cause is an act or omission of the
debtor that—
‘‘(i) there exists a reasonable justification
for the act or omission; and
‘‘(ii) the act or omission will be cured with-
in a reasonable time fixed by the court not to ex-
ceed 30 days after the court decides the motion,
unless the movant expressly consents to a con-
tinuance for a specific period of time, or compel-
ling circumstances beyond the control of the debt-
or justify an extension.
‘‘(3) For purposes of this subsection, cause includes—
148
‘‘(A) substantial or continuing loss to or diminu-
tion of the estate;
‘‘(B) gross mismanagement of the estate;
‘‘(C) failure to maintain insurance that poses a
material risk to the estate or the public;
‘‘(D) unauthorized use of cash collateral harmful
to 1 or more creditors;
‘‘(E) failure to comply with an order of the
court;
‘‘(F) failure timely to satisfy any filing or re-
porting requirement established by this title or by any
rule applicable to a case under this chapter;
‘‘(G) failure to attend the meeting of creditors
convened under section 341(a) of this title;
‘‘(H) failure timely to provide information or at-
tend meetings reasonably requested by the United
States trustee or bankruptcy administrator;
‘‘(I) failure timely to pay taxes due after the
date of the order for relief or to file tax returns due
after the order for relief;
‘‘(J) failure to file a disclosure statement, or to
file or confirm a plan, within the time fixed by this
title or by order of the court;
‘‘(K) failure to pay any fees or charges required
under chapter 123 of title 28;
149
‘‘(L) revocation of an order of confirmation
under section 1144 of this title;
‘‘(M) inability to effectuate substantial con-
summation of a confirmed plan;
‘‘(N) material default by the debtor with respect
to a confirmed plan; and
‘‘(O) termination of a plan by reason of the oc-
currence of a condition specified in the plan.
‘‘(4) The court may grant relief under this subsection
for cause as defined in subparagraphs C, F, G, H, or K
of paragraph 3 of this subsection only upon motion of the
United States trustee or bankruptcy administrator or upon
the court s own motion.
‘‘(5) The court shall commence the hearing on any mo-
tion under this subsection not later than 30 days after filing
of the motion, and shall decide the motion within 15 days
after commencement of the hearing, unless the movant ex-
pressly consents to a continuance for a specific period of
time or compelling circumstances prevent the court from
meeting the time limits established by this paragraph.’’.
(b) ADDITIONAL GROUNDS
FOR APPOINTMENT
OF
TRUSTEE OR EXAMINER.—Section 1104 of title 11, United
States Code, is amended by adding at the end the following:
‘‘(e) If grounds exist to convert or dismiss the case
under section 1112 of this title, the court may instead ap-
150
point a trustee or examiner, if it determines that such ap-
pointment is in the best interests of creditors and the es-
tate.’’.
SEC. 414. STUDY OF OPERATION OF TITLE 11 OF THE
UNITED STATES CODE WITH RESPECT TO
SMALL BUSINESSES.
Not later than 2 years after the date of the enactment
of this Act, the Administrator of the Small Business Admin-
istration, in consultation with the Attorney General, the
Director of the Administrative Office of United States
Trustees, and the Director of the Administrative Office of
the United States Courts, shall—
(1) conduct a study to determine—
(A) the internal and external factors that
cause small businesses, especially sole proprietor-
ships, to become debtors in cases under title 11
of the United States Code and that cause certain
small businesses to successfully complete cases
under chapter 11 of such title; and
(B) how Federal laws relating to bank-
ruptcy may be made more effective and efficient
in assisting small businesses to remain viable;
and
151
(2) submit to the President pro tempore of the
Senate and the Speaker of the House of Representa-
tives a report summarizing that study.
SEC. 415. PAYMENT OF INTEREST.
Section 362(d)(3) of title 11, United States Code, is
amended—
(1) by inserting ‘‘or 30 days after the court de-
termines that the debtor is subject to this paragraph,
whichever is later’’ after ‘‘90-day period)’’; and
(2) by amending subparagraph (B) to read as
follows:
‘‘(B) the debtor has commenced monthly
payments (which payments may, in the debtor’s
sole discretion, notwithstanding section 363(c)(2)
of this title, be made from rents or other income
generated before or after the commencement of
the case by or from the property) to each creditor
whose claim is secured by such real estate (other
than a claim secured by a judgment lien or by
an unmatured statutory lien), which payments
are in an amount equal to interest at the then-
applicable nondefault contract rate of interest on
the value of the creditor’s interest in the real es-
tate; or’’.
152
TITLE V—MUNICIPAL
BANKRUPTCY PROVISIONS
SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETI-
TION.
(a) TECHNICAL AMENDMENT RELATING TO MUNICI-
PALITIES.—Section 921(d) of title 11, United States Code,
is amended by inserting ‘‘notwithstanding section 301(b)’’
before the period at the end.
(b) CONFORMING AMENDMENT.—Section 301 of title
11, United States Code, is amended—
(1) by inserting ‘‘(a)’’ before ‘‘A voluntary’’; and
(2) by amending the last sentence to read as fol-
lows:
‘‘(b) The commencement of a voluntary case under a
chapter of this title constitutes an order for relief under such
chapter.’’.
SEC. 502. APPLICABILITY OF OTHER SECTIONS TO CHAPTER
9.
Section 901(a) of title 11, United States Code, is
amended—
(1) by inserting ‘‘555, 556,’’ after ‘‘553,’’; and
(2) by inserting ‘‘559, 560, 561, 562’’ after
‘‘557,’’.
153
TITLE VI—STREAMLINING THE
BANKRUPTCY SYSTEM
SEC. 601. CREDITOR REPRESENTATION AT FIRST MEETING
OF CREDITORS.
Section 341(c) of title 11, United States Code, is
amended by inserting after the first sentence the following:
‘‘Notwithstanding any local court rule, provision of a State
constitution, any other Federal or State law that is not a
bankruptcy law, or other requirement that representation
at the meeting of creditors under subsection (a) be by an
attorney, a creditor holding a consumer debt or any rep-
resentative of the creditor (which may include an entity or
an employee of an entity and may be a representative for
more than one creditor) shall be permitted to appear at and
participate in the meeting of creditors and activities related
thereto in a case under chapter 7 or 13, either alone or
in conjunction with an attorney for the creditor. Nothing
in this subsection shall be construed to require any creditor
to be represented by an attorney at any meeting of credi-
tors.’’.
SEC. 602. AUDIT PROCEDURES.
(a) AMENDMENTS.—Section 586 of title 28, United
States Code, is amended—
(1) in subsection (a) by amending striking para-
graph (6) to read as follows:
154
‘‘(6) make such reports as the Attorney General
directs, including the results of audits performed
under subsection (f); and’’; and
(2) by adding at the end the following:
‘‘(f)(1)(A) The Attorney General shall establish proce-
dures to determine the accuracy, veracity, and completeness
of petitions, schedules, and other information which the
debtor is required to provide under sections 521 and 1322
of title 11, and, if applicable, section 111 of title 11, in
individual cases filed under chapter 7 or 13 of such title.
Such audits shall be in accordance with generally accepted
auditing standards and performed by independent certified
public accountants or independent licensed public account-
ants.
‘‘(B) Those procedures shall—
‘‘(i) establish a method of selecting appropriate
qualified persons to contract to perform those audits;
‘‘(ii) establish a method of randomly selecting
cases to be audited, except that not less than 1 out of
every 250 cases in each Federal judicial district shall
be selected for audit;
‘‘(iii) require audits for schedules of income and
expenses which reflect greater than average variances
from the statistical norm of the district in which the
schedules were filed; and
155
‘‘(iv) establish procedures for providing, not less
frequently than annually, public information con-
cerning the aggregate results of such audits including
the percentage of cases, by district, in which a mate-
rial misstatement of income or expenditures is re-
ported.
‘‘(2) The United States trustee for each district is au-
thorized to contract with auditors to perform audits in cases
designated by the United States trustee according to the
procedures established under paragraph (1).
‘‘(3)(A) The report of each audit conducted under this
subsection shall be filed with the court and transmitted to
the United States trustee. Each report shall clearly and con-
spicuously specify any material misstatement of income or
expenditures or of assets identified by the person performing
the audit. In any case where a material misstatement of
income or expenditures or of assets has been reported, the
clerk of the bankruptcy court shall give notice of the
misstatement to the creditors in the case.
‘‘(B) If a material misstatement of income or expendi-
tures or of assets is reported, the United States trustee
shall—
‘‘(i) report the material misstatement, if appro-
priate, to the United States Attorney pursuant to sec-
tion 3057 of title 18, United States Code; and
156
‘‘(ii) if advisable, take appropriate action, in-
cluding but not limited to commencing an adversary
proceeding to revoke the debtor’s discharge pursuant
to section 727(d) of title 11, United States Code.’’.
(b) AMENDMENTS
TO SECTION 521 OF TITLE 11,
U.S.C.—Section 521(a) of title 11, United States Code, as
amended by section 603, is amended in paragraphs (3) and
(4) by adding ‘‘or an auditor appointed pursuant to section
586 of title 28, United States Code’’ after ‘‘serving in the
case’’.
(c) AMENDMENTS
TO SECTION 727 OF TITLE 11,
U.S.C.—Section 727(d) of title 11, United States Code, is
amended—
(1) by deleting ‘‘or’’ at the end of paragraph (2);
(2) by substituting ‘‘; or’’ for the period at the
end of paragraph (3); and
(3) by adding the following at the end the fol-
lowing:
‘‘(4) 
the 
debtor 
has 
failed 
to 
explain
satisfactorily—
‘‘(A) a material misstatement in an audit
performed pursuant to section 586(f) of title 28,
United States Code; or
‘‘(B) a failure to make available for inspec-
tion all necessary accounts, papers, documents,
157
financial records, files, and all other papers,
things, or property belonging to the debtor that
are requested for an audit conducted pursuant
to section 586(f) of title 28, United States
Code.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall take effect 18 months after the date of enact-
ment of this Act.
SEC. 603. GIVING CREDITORS FAIR NOTICE IN CHAPTER 7
AND 13 CASES.
(a) NOTICE.—Section 342 of title 11, United States
Code, is amended—
(1) in subsection (c)—
(A) by striking ‘‘, but the failure of such no-
tice to contain such information shall not invali-
date the legal effect of such notice’’; and
(B) by adding the following at the end:
‘‘If the credit agreement between the debtor and the creditor
or the last communication before the filing of the petition
in a voluntary case from the creditor to a debtor who is
an individual states an account number of the debtor which
is the current account number of the debtor with respect
to any debt held by the creditor against the debtor, the debt-
or shall include such account number in any notice to the
creditor required to be given under this title. If the creditor
158
has specified to the debtor an address at which the creditor
wishes to receive correspondence regarding the debtor’s ac-
count, any notice to the creditor required to be given by
the debtor under this title shall be given at such address.
For the purposes of this section, ‘notice’ shall include, but
shall not be limited to, any correspondence from the debtor
to the creditor after the commencement of the case, any
statement of the debtor’s intention under section 521(a)(2)
of this title, notice of the commencement of any proceeding
in the case to which the creditor is a party, and any notice
of the hearing under section 1324 of this title.’’;
(2) by adding at the end the following:
‘‘(d) At any time, a creditor in a case of an individual
debtor under chapter 7 or 13 may file with the court and
serve on the debtor a notice of the address to be used to
notify the creditor in that case. After 5 days following re-
ceipt of such notice, any notice the court or the debtor is
required to give the creditor shall be given at that address.
‘‘(e) An entity may file with the court a notice stating
its address for notice in cases under chapters 7 and 13.
After 30 days following the filing of such notice, any notice
in any case filed under chapter 7 or 13 given by the court
shall be to that address unless specific notice is given under
subsection (d) with respect to a particular case.
159
‘‘(f) Notice given to a creditor other than as provided
in this section shall not be effective notice until it has been
brought to the attention of the creditor. If the creditor has
designated a person or department to be responsible for re-
ceiving notices concerning bankruptcy cases and has estab-
lished reasonable procedures so that bankruptcy notices re-
ceived by the creditor will be delivered to such department
or person, notice will not be brought to the attention of the
creditor until received by such person or department. No
sanction under section 362(h) of this title or any other sanc-
tion which a court may impose on account of violations
of the stay under section 362(a) of this title or failure to
comply with section 542 or 543 of this title may be imposed
on any action of the creditor unless the action takes place
after the creditor has received notice of the commencement
of the case effective under this section.’’.
(b) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, as amended by sections 604, 120, and
302, is amended—
(1) by inserting ‘‘(a)’’ before ‘‘The debtor shall—
’’;
(2) by striking paragraph (1) and inserting the
following:
‘‘(1) file—
‘‘(A) a list of creditors; and
160
‘‘(B) unless the court orders otherwise—
‘‘(i) a schedule of assets and liabilities;
‘‘(ii) a schedule of current monthly in-
come and current expenditures prepared in
accordance with section 707(b)(2);
‘‘(iii) a statement of the debtor’s finan-
cial 
affairs 
and, 
if 
applicable, 
a
certificate—
‘‘(I) of an attorney whose name is
on the petition as the attorney for the
debtor or any bankruptcy petition pre-
parer signing the petition pursuant to
section 110(b)(1) of this title indi-
cating that such attorney or bank-
ruptcy petition preparer delivered to
the debtor any notice required by sec-
tion 342(b) of this title; or
‘‘(II) if no attorney for the debtor
is indicated and no bankruptcy peti-
tion preparer signed the petition, of the
debtor that such notice was obtained
and read by the debtor;
‘‘(iv) copies of any Federal tax returns,
including any schedules or attachments,
161
filed by the debtor for the 3-year period pre-
ceding the order for relief;
‘‘(v) copies of all payment advices or
other evidence of payment, if any, received
by the debtor from any employer of the
debtor in the period 60 days prior to the fil-
ing of the petition; and
‘‘(vi) a statement disclosing any rea-
sonably anticipated increase in income or
expenditures over the 12-month period fol-
lowing the date of filing;’’;
(3) by adding at the end the following:
‘‘(e)(1) At any time, a creditor, in the case of an indi-
vidual under chapter 7 or 13, may file with the court notice
that the creditor requests the petition, schedules, and a
statement of affairs filed by the debtor in the case and the
court shall make those documents available to the creditor
who requests those documents at a reasonable cost within
5 business days after such request.
‘‘(2) At any time, a creditor in a case under chapter
13 may file with the court notice that the creditor requests
the plan filed by the debtor in the case, and the court shall
make such plan available to the creditor who requests such
plan at a reasonable cost and not later than 5 days after
such request.
162
‘‘(f) An individual debtor in a case under chapter 7
or 13 shall file with the court—
‘‘(1) at the time filed with the taxing authority,
all tax returns, including any schedules or attach-
ments, with respect to the period from the commence-
ment of the case until such time as the case is closed;
‘‘(2) at the time filed with the taxing authority,
all tax returns, including any schedules or attach-
ments, that were not filed with the taxing authority
when the schedules under subsection (a)(1) were filed
with respect to the period that is 3 years before the
order for relief;
‘‘(3) any amendments to any of the tax returns,
including schedules or attachments, described in para-
graph (1) or (2); and
‘‘(4) in a case under chapter 13, a statement
subject to the penalties of perjury by the debtor of the
debtor’s current monthly income and expenditures in
the preceding tax year and current monthly income
less expenditures for the month preceding the state-
ment prepared in accordance with section 707(b)(2)
that shows how the amounts are calculated—
‘‘(A) beginning on the date that is the later
of 90 days after the close of the debtor’s tax year
163
or 1 year after the order for relief, unless a plan
has been confirmed; and
‘‘(B) thereafter, on or before the date that is
45 days before each anniversary of the confirma-
tion of the plan until the case is closed.
‘‘(g)(1) A statement referred to in subsection (f)(4)
shall disclose—
‘‘(A) the amount and sources of income of the
debtor;
‘‘(B) the identity of any persons responsible with
the debtor for the support of any dependents of the
debtor; and
‘‘(C) the identity of any persons who contributed,
and the amount contributed, to the household in
which the debtor resides.
‘‘(2) The tax returns, amendments, and statement of
income and expenditures described in paragraph (1) shall
be available to the United States trustee, any bankruptcy
administrator, any trustee, and any party in interest for
inspection and copying, subject to the requirements of sub-
section (h).
‘‘(h)(1) Not later than 30 days after the date of enact-
ment of the Consumer Bankruptcy Reform Act of 1999, the
Director of the Administrative Office of the United States
Courts shall establish procedures for safeguarding the con-
164
fidentiality of any tax information required to be provided
under this section.
‘‘(2) The procedures under paragraph (1) shall include
reasonable restrictions on creditor access to tax information
that is required to be provided under this section to verify
creditor identity and to restrict use of the information ex-
cept with respect to the case.
‘‘(3) Not later than 1 year after the date of enactment
of the Consumer Bankruptcy Reform Act of 1999, the Direc-
tor of the Administrative Office of the United States Courts
shall prepare, and submit to Congress a report that—
‘‘(A) assesses the effectiveness of the procedures
under paragraph (1) to provide timely and sufficient
information to creditors concerning the case; and
‘‘(B) 
if 
appropriate, 
includes 
proposed
legislation—
‘‘(i) to further protect the confidentiality of
tax information or to make it better available to
creditors; and
‘‘(ii) to provide penalties for the improper
use by any person of the tax information re-
quired to be provided under this section.
‘‘(i) If requested by the United States trustee or a
trustee serving in the case, the debtor provide a document
that establishes the identity of the debtor, including a driv-
171
converted, dismissed, or closed (whichever occurs
first and without regard to confirmation of the
plan) the fee shall be’’.
(b) DELAYED EFFECTIVE DATE.—The amendments
made by subsection (a) shall take effect on October 1, 1999.
SEC. 609. STUDY OF BANKRUPTCY IMPACT OF CREDIT EX-
TENDED TO DEPENDENT STUDENTS.
Not later than 1 year after the date of the enactment
of this Act, the Comptroller General of the United States
shall—
(1) conduct a study regarding the impact that
the extension of credit to individuals who are—
(A) claimed as dependents for purposes of
the Internal Revenue Code of 1986; and
(B) enrolled in post-secondary educational
institutions,
has on the rate of cases filed under title 11 of the
United States Code; and
(2) submit to the Speaker of the House of Rep-
resentatives and the President pro tempore of the Sen-
ate a report summarizing such study.
SEC. 610. PROMPT RELIEF FROM STAY IN INDIVIDUAL
CASES.
Section 362(e) of title 11, United States Code, is
amended—
201
‘‘(1) for returns that are past due as of the date
of the filing of the petition, 120 days from such date;
‘‘(2) for returns which are not past due as of the
date of the filing of the petition, the later of 120 days
from such date or the due date for such returns under
the last automatic extension of time for filing such re-
turns to which the debtor is entitled, and for which
request has been timely made, according to applicable
nonbankruptcy law; and
‘‘(3) upon notice and hearing, and order entered
before the lapse of any deadline fixed according to
this subsection, where the debtor demonstrates, by
clear and convincing evidence, that the failure to file
the returns as required is because of circumstances be-
yond the control of the debtor, the court may extend
the deadlines set by the trustee as provided in this
subsection for—
‘‘(A) a period of no more than 30 days for
returns described in paragraph (1) of this sub-
section; and
‘‘(B) for no more than the period of time
ending on the applicable extended due date for
the returns described in paragraph (2).
‘‘(c) For purposes of this section only, a return in-
cludes a return prepared pursuant to section 6020 (a) or
278
CHANT.—Section 101 of title 11, United States Code, is
amended—
(1) by amending paragraph (22) to read as fol-
lows:
‘‘(22) ‘financial institution’ means—
‘‘(A) a Federal reserve bank, or an entity
(domestic or foreign) that is a commercial or
savings bank, industrial savings bank, savings
and loan association, trust company, or receiver
or conservator for such entity and, when any
such Federal reserve bank, receiver, conservator
or entity is acting as agent or custodian for a
customer in connection with a securities con-
tract, as defined in section 741 of this title, such
customer; or
‘‘(B) in connection with a securities con-
tract, as defined in section 741 of this title, an
investment company registered under the Invest-
ment Company Act of 1940;’’;
(2) by inserting after paragraph (22) the fol-
lowing:
‘‘(22A) ‘financial participant’ means an entity
that, at the time it enters into a securities contract,
commodity contract or forward contract, or at the
time of the filing of the petition, has 1 or more agree-