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SEC. 402. MEETINGS OF CREDITORS AND EQUITY SECURITY 
HOLDERS. 
Section 341 of title 11, United States Code, is 
amended by adding at the end the following: 
‘‘(e) Notwithstanding subsections (a) and (b), the 
court, on the request of a party in interest and after notice 
and a hearing, for cause may order that the United States 
trustee not convene a meeting of creditors or equity secu-
rity holders if the debtor has filed a plan as to which the 
debtor solicited acceptances prior to the commencement 
of the case.’’. 
SEC. 403. PROTECTION OF REFINANCE OF SECURITY IN-
TEREST. 
Subparagraphs (A), (B), and (C) of section 547(e)(2) 
of title 11, United States Code, are each amended by strik-
ing ‘‘10’’ each place it appears and inserting ‘‘30’’. 
SEC. 
404. 
EXECUTORY 
CONTRACTS 
AND 
UNEXPIRED 
LEASES. 
(a) IN GENERAL.—Section 365(d)(4) of title 11, 
United States Code, is amended to read as follows: 
‘‘(4)(A) Subject to subparagraph (B), an unexpired 
lease of nonresidential real property under which the debt-
or is the lessee shall be deemed rejected, and the trustee 
shall immediately surrender that nonresidential real prop-
erty to the lessor, if the trustee does not assume or reject 
the unexpired lease by the earlier of—
206
‘‘(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 con-
firming a plan. 
‘‘(B)(i) The court may extend the period determined 
under subparagraph (A), prior to the expiration of the 
120-day period, for 90 days on the motion of the trustee 
or lessor for cause. 
‘‘(ii) If the court grants an extension under clause 
(i), the court may grant a subsequent extension only upon 
prior written consent of the lessor in each instance.’’. 
(b) EXCEPTION.—Section 365(f)(1) of title 11, 
United States Code, is amended by striking ‘‘subsection’’ 
the first place it appears and inserting ‘‘subsections (b) 
and’’. 
SEC. 405. CREDITORS AND EQUITY SECURITY HOLDERS 
COMMITTEES. 
(a) APPOINTMENT.—Section 1102(a) of title 11, 
United States Code, is amended by adding at the end the 
following: 
‘‘(4) On request of a party in interest and after notice 
and a hearing, the court may order the United States 
trustee to change the membership of a committee ap-
pointed under this subsection, if the court determines that 
the change is necessary to ensure adequate representation
207
of creditors or equity security holders. The court may 
order the United States trustee to increase the number 
of members of a committee to include a creditor that is 
a small business concern (as described in section 3(a)(1) 
of the Small Business Act), if the court determines that 
the creditor holds claims (of the kind represented by the 
committee) the aggregate amount of which, in comparison 
to the annual gross revenue of that creditor, is dispropor-
tionately large.’’. 
(b) INFORMATION.—Section 1102(b) of title 11, 
United States Code, is amended by adding at the end the 
following: 
‘‘(3) A committee appointed under subsection (a) 
shall—
‘‘(A) provide access to information for creditors 
who—
‘‘(i) hold claims of the kind represented by 
that committee; and 
‘‘(ii) are not appointed to the committee; 
‘‘(B) solicit and receive comments from the 
creditors described in subparagraph (A); and 
‘‘(C) be subject to a court order that compels 
any additional report or disclosure to be made to the 
creditors described in subparagraph (A).’’.
208
SEC. 406. AMENDMENT TO SECTION 546 OF TITLE 11, 
UNITED STATES CODE. 
Section 546 of title 11, United States Code, is 
amended—
(1) by redesignating the second subsection (g) 
(as added by section 222(a) of Public Law 103–394) 
as subsection (h); 
(2) in subsection (h), as so redesignated, by in-
serting ‘‘and subject to the prior rights of holders of 
security interests in such goods or the proceeds of 
such goods’’ after ‘‘consent of a creditor’’; and 
(3) by adding at the end the following: 
‘‘(i)(1) Notwithstanding paragraphs (2) and (3) of 
section 545, the trustee may not avoid a warehouseman’s 
lien for storage, transportation, or other costs incidental 
to the storage and handling of goods. 
‘‘(2) The prohibition under paragraph (1) shall be ap-
plied in a manner consistent with any State statute appli-
cable to such lien that is similar to section 7–209 of the 
Uniform Commercial Code, as in effect on the date of en-
actment of the Bankruptcy Abuse Prevention and Con-
sumer Protection Act of 2005, or any successor to such 
section 7–209.’’.
209
SEC. 407. AMENDMENTS TO SECTION 330(a) OF TITLE 11, 
UNITED STATES CODE. 
Section 330(a) of title 11, United States Code, is 
amended—
(1) in paragraph (3)—
(A) by striking ‘‘(A) In’’ and inserting 
‘‘In’’; and 
(B) by inserting ‘‘to an examiner, trustee 
under chapter 11, or professional person’’ after 
‘‘awarded’’; and 
(2) by adding at the end the following: 
‘‘(7) In determining the amount of reasonable com-
pensation to be awarded to a trustee, the court shall treat 
such compensation as a commission, based on section 
326.’’. 
SEC. 408. POSTPETITION DISCLOSURE AND SOLICITATION. 
Section 1125 of title 11, United States Code, is 
amended 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 ap-
plicable nonbankruptcy law and if such holder was solic-
ited before the commencement of the case in a manner 
complying with applicable nonbankruptcy law.’’.
210
SEC. 409. PREFERENCES. 
Section 547(c) of title 11, United States Code, is 
amended—
(1) by striking paragraph (2) and inserting the 
following: 
‘‘(2) to the extent that such transfer was in 
payment of a debt incurred by the debtor in the or-
dinary course of business or financial affairs of the 
debtor and the transferee, and such transfer was—
‘‘(A) made in the ordinary course of busi-
ness or financial affairs of the debtor and the 
transferee; or 
‘‘(B) made according to ordinary business 
terms;’’; 
(2) in paragraph (8), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(9) if, in a case filed by a debtor whose debts 
are not primarily consumer debts, the aggregate 
value of all property that constitutes or is affected 
by such transfer is less than $5,000.’’. 
SEC. 410. VENUE OF CERTAIN PROCEEDINGS. 
Section 1409(b) of title 28, United States Code, is 
amended by inserting ‘‘, or a debt (excluding a consumer 
debt) against a noninsider of less than $10,000,’’ after 
‘‘$5,000’’.
211
SEC. 411. PERIOD FOR FILING PLAN UNDER CHAPTER 11. 
Section 1121(d) of title 11, United States Code, is 
amended—
(1) by striking ‘‘On’’ and inserting ‘‘(1) Subject 
to paragraph (2), on’’; and 
(2) by adding at the end the following: 
‘‘(2)(A) The 120-day period specified in paragraph 
(1) may not be extended beyond a date that is 18 months 
after the date of the order for relief under this chapter. 
‘‘(B) The 180-day period specified in paragraph (1) 
may not be extended beyond a date that is 20 months after 
the date of the order for relief under this chapter.’’. 
SEC. 412. FEES ARISING FROM CERTAIN OWNERSHIP IN-
TERESTS. 
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 own-
212
ership interest in such unit, such corporation, or 
such lot,’’. 
SEC. 413. CREDITOR REPRESENTATION AT FIRST MEETING 
OF CREDITORS. 
Section 341(c) of title 11, United States Code, is 
amended by inserting at the end the following: ‘‘Notwith-
standing any local court rule, provision of a State constitu-
tion, any otherwise applicable nonbankruptcy law, or any 
other requirement that representation at the meeting of 
creditors under subsection (a) be by an attorney, a cred-
itor holding a consumer debt or any representative of the 
creditor (which may include an entity or an employee of 
an entity and may be a representative for more than 1 
creditor) shall be permitted to appear at and participate 
in the meeting of creditors in a case under chapter 7 or 
13, either alone or in conjunction with an attorney for the 
creditor. Nothing in this subsection shall be construed to 
require any creditor to be represented by an attorney at 
any meeting of creditors.’’. 
SEC. 414. DEFINITION OF DISINTERESTED PERSON. 
Section 101(14) of title 11, United States Code, is 
amended to read as follows: 
‘‘(14) ‘disinterested person’ means a person 
that—
213
‘‘(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 di-
rector, officer, or employee of the debtor; and 
‘‘(C) does not have an interest materially 
adverse to the interest of the estate or of any 
class of creditors or equity security holders, by 
reason of any direct or indirect relationship to, 
connection with, or interest in, the debtor, or 
for any other reason;’’. 
SEC. 415. FACTORS FOR COMPENSATION OF PROFES-
SIONAL PERSONS. 
Section 330(a)(3) of title 11, United States Code, is 
amended—
(1) in subparagraph (D), by striking ‘‘and’’ at 
the end; 
(2) by redesignating subparagraph (E) as sub-
paragraph (F); and 
(3) by inserting after subparagraph (D) the fol-
lowing: 
‘‘(E) with respect to a professional person, 
whether the person is board certified or otherwise 
has demonstrated skill and experience in the bank-
ruptcy field; and’’.
214
SEC. 416. APPOINTMENT OF ELECTED TRUSTEE. 
Section 1104(b) of title 11, United States Code, is 
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 
(2) by adding at the end the following: 
‘‘(2)(A) If an eligible, disinterested trustee is elected 
at a meeting of creditors under paragraph (1), the United 
States trustee shall file a report certifying that election. 
‘‘(B) Upon the filing of a report under subparagraph 
(A)—
‘‘(i) the trustee elected under paragraph (1) 
shall be considered to have been selected and ap-
pointed for purposes of this section; and 
‘‘(ii) the service of any trustee appointed under 
subsection (d) shall terminate. 
‘‘(C) The court shall resolve any dispute arising out 
of an election described in subparagraph (A).’’. 
SEC. 417. UTILITY SERVICE. 
Section 366 of title 11, United States Code, is 
amended—
(1) in subsection (a), by striking ‘‘subsection 
(b)’’ and inserting ‘‘subsections (b) and (c)’’; and 
(2) by adding at the end the following: 
‘‘(c)(1)(A) For purposes of this subsection, the term 
‘assurance of payment’ means—
‘‘(i) a cash deposit;
215
‘‘(ii) a letter of credit; 
‘‘(iii) a certificate of deposit; 
‘‘(iv) a surety bond; 
‘‘(v) a prepayment of utility consumption; or 
‘‘(vi) another form of security that is mutually 
agreed on between the utility and the debtor or the 
trustee. 
‘‘(B) For purposes of this subsection an administra-
tive expense priority shall not constitute an assurance of 
payment. 
‘‘(2) Subject to paragraphs (3) and (4), with respect 
to a case filed under chapter 11, a utility referred to in 
subsection (a) may alter, refuse, or discontinue utility 
service, if during the 30-day period beginning on the date 
of the filing of the petition, the utility does not receive 
from the debtor or the trustee adequate assurance of pay-
ment for utility service that is satisfactory to the utility. 
‘‘(3)(A) On request of a party in interest and after 
notice and a hearing, the court may order modification 
of the amount of an assurance of payment under para-
graph (2). 
‘‘(B) In making a determination under this para-
graph whether an assurance of payment is adequate, the 
court may not consider—
216
‘‘(i) the absence of security before the date of 
the filing of the petition; 
‘‘(ii) the payment by the debtor of charges for 
utility service in a timely manner before the date of 
the filing of the petition; or 
‘‘(iii) the availability of an administrative ex-
pense priority. 
‘‘(4) Notwithstanding any other provision of law, with 
respect to a case subject to this subsection, a utility may 
recover or set off against a security deposit provided to 
the utility by the debtor before the date of the filing of 
the petition without notice or order of the court.’’. 
SEC. 418. BANKRUPTCY FEES. 
Section 1930 of title 28, United States Code, is 
amended—
(1) in subsection (a), by striking ‘‘Notwith-
standing section 1915 of this title, the’’ and insert-
ing ‘‘The’’; and 
(2) by adding at the end the following: 
‘‘(f)(1) Under the 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 if the court 
determines that such individual has income less than 150 
percent of the income official poverty line (as defined by
217
the Office of Management and Budget, and revised annu-
ally in accordance with section 673(2) of the Omnibus 
Budget Reconciliation Act of 1981) applicable to a family 
of the size involved and is unable to pay that fee in install-
ments. For purposes of this paragraph, the term ‘filing 
fee’ means the filing fee required by subsection (a), or any 
other fee prescribed by the Judicial Conference under sub-
sections (b) and (c) that is payable to the clerk upon the 
commencement of a case under chapter 7. 
‘‘(2) The district court or the bankruptcy court may 
waive for such debtors other fees prescribed under sub-
sections (b) and (c). 
‘‘(3) This subsection does not restrict the district 
court or the bankruptcy court from waiving, in accordance 
with Judicial Conference policy, fees prescribed under this 
section for other debtors and creditors.’’. 
SEC. 419. MORE COMPLETE INFORMATION REGARDING AS-
SETS OF THE ESTATE. 
(a) IN GENERAL.—
(1) DISCLOSURE.—The Judicial Conference of 
the United States, in accordance with section 2075 
of title 28 of the United States Code and after con-
sideration of the views of the Director of the Execu-
tive Office for United States Trustees, shall propose 
amended Federal Rules of Bankruptcy Procedure
218
and in accordance with rule 9009 of the Federal 
Rules of Bankruptcy Procedure shall prescribe offi-
cial bankruptcy forms directing debtors under chap-
ter 11 of title 11 of United States Code, to disclose 
the information described in paragraph (2) by filing 
and serving periodic financial and other reports de-
signed to provide such information. 
(2) INFORMATION.—The information referred 
to in paragraph (1) is the value, operations, and 
profitability of any closely held corporation, partner-
ship, or of any other entity in which the debtor holds 
a substantial or controlling interest. 
(b) PURPOSE.—The purpose of the rules and reports 
under subsection (a) shall be to assist parties in interest 
taking steps to ensure that the debtor’s interest in any 
entity referred to in subsection (a)(2) is used for the pay-
ment of allowed claims against debtor. 
Subtitle B—Small Business 
Bankruptcy Provisions 
SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT 
AND PLAN. 
Section 1125 of title 11, United States Code, is 
amended—
(1) in subsection (a)(1), by inserting before the 
semicolon ‘‘and in determining whether a disclosure
219
statement provides adequate information, the court 
shall consider the complexity of the case, the benefit 
of additional information to creditors and other par-
ties in interest, and the cost of providing additional 
information’’; and 
(2) by striking subsection (f), and inserting the 
following: 
‘‘(f) Notwithstanding subsection (b), in a small busi-
ness case—
‘‘(1) the court may determine that the plan 
itself provides adequate information and that a sepa-
rate disclosure statement is not necessary; 
‘‘(2) the court may approve a disclosure state-
ment submitted on standard forms approved by the 
court or adopted under section 2075 of title 28; and 
‘‘(3)(A) the court may conditionally approve a 
disclosure statement subject to final approval after 
notice and a hearing; 
‘‘(B) acceptances and rejections of a plan may 
be solicited based on a conditionally approved disclo-
sure statement if the debtor provides adequate infor-
mation to each holder of a claim or interest that is 
solicited, but a conditionally approved disclosure 
statement shall be mailed not later than 25 days be-
220
fore 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.’’. 
SEC. 432. DEFINITIONS. 
(a) DEFINITIONS.—Section 101 of title 11, United 
States Code, is amended by striking paragraph (51C) and 
inserting the following: 
‘‘(51C) ‘small business case’ means a case filed 
under chapter 11 of this title in which the debtor is 
a small business debtor; 
‘‘(51D) ‘small business debtor’—
‘‘(A) subject to subparagraph (B), means a 
person engaged in commercial or business ac-
tivities (including any affiliate of such person 
that is also a debtor under this title and exclud-
ing a person whose primary activity is the busi-
ness of owning or operating real property or ac-
tivities incidental thereto) that has aggregate 
noncontingent liquidated secured and unsecured 
debts as of the date of the petition or the date 
of the order for relief in an amount not more 
than $2,000,000 (excluding debts owed to 1 or 
more affiliates or insiders) for a case in which
221
the United States trustee has not appointed 
under section 1102(a)(1) a committee of unse-
cured creditors or where the court has deter-
mined that the committee of unsecured credi-
tors is not sufficiently active and representative 
to provide effective oversight of the debtor; and 
‘‘(B) does not include any member of a 
group of affiliated debtors that has aggregate 
noncontingent liquidated secured and unsecured 
debts in an amount greater than $2,000,000 
(excluding debt owed to 1 or more affiliates or 
insiders);’’. 
(b) CONFORMING AMENDMENT.—Section 1102(a)(3) 
of title 11, United States Code, is amended by inserting 
‘‘debtor’’ after ‘‘small business’’. 
(c) ADJUSTMENT OF DOLLAR AMOUNTS.—Section 
104(b) of title 11, United States Code, as amended by 
section 226, is amended by inserting ‘‘101(51D),’’ after 
‘‘101(3),’’ each place it appears. 
SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND 
PLAN. 
Within a reasonable period of time after the date of 
enactment of this Act, the Judicial Conference of the 
United States shall prescribe in accordance with rule 9009 
of the Federal Rules of Bankruptcy Procedure official
222
standard form disclosure statements and plans of reorga-
nization for small business debtors (as defined in section 
101 of title 11, United States Code, as amended by this 
Act), designed to achieve a practical balance between—
(1) the reasonable needs of the courts, the 
United States trustee, creditors, and other parties in 
interest for reasonably complete information; and 
(2) economy and simplicity for debtors. 
SEC. 434. UNIFORM NATIONAL REPORTING REQUIRE-
MENTS. 
(a) REPORTING REQUIRED.—
(1) IN GENERAL.—Chapter 3 of title 11, United 
States Code, is amended by inserting after section 
307 the following: 
‘‘§ 308. Debtor reporting requirements 
‘‘(a) For purposes of this section, the term ‘profit-
ability’ means, with respect to a debtor, the amount of 
money that the debtor has earned or lost during current 
and recent fiscal periods. 
‘‘(b) A small business debtor shall file periodic finan-
cial and other reports containing information including—
‘‘(1) the debtor’s profitability; 
‘‘(2) reasonable approximations of the debtor’s 
projected cash receipts and cash disbursements over 
a reasonable period;
223
‘‘(3) comparisons of actual cash receipts and 
disbursements with projections in prior reports; 
‘‘(4)(A) whether the debtor is—
‘‘(i) in compliance in all material respects 
with postpetition requirements imposed by this 
title and the Federal Rules of Bankruptcy Pro-
cedure; and 
‘‘(ii) timely filing tax returns and other re-
quired government filings and paying taxes and 
other administrative expenses when due; 
‘‘(B) if the debtor is not in compliance with the 
requirements referred to in subparagraph (A)(i) or 
filing tax returns and other required government fil-
ings and making the payments referred to in sub-
paragraph (A)(ii), what the failures are and how, at 
what cost, and when the debtor intends to remedy 
such failures; and 
‘‘(C) such other matters as are in the best in-
terests of the debtor and creditors, and in the public 
interest in fair and efficient procedures under chap-
ter 11 of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for 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.’’.
224
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect 60 days after the date on 
which rules are prescribed under section 2075 of title 28, 
United States Code, to establish forms to be used to com-
ply with section 308 of title 11, United States Code, as 
added by subsection (a). 
SEC. 435. UNIFORM REPORTING RULES AND FORMS FOR 
SMALL BUSINESS CASES. 
(a) PROPOSAL OF RULES AND FORMS.—The Judicial 
Conference of the United States shall propose in accord-
ance with section 2073 of title 28 of the United States 
Code amended Federal Rules of Bankruptcy Procedure, 
and shall prescribe in accordance with rule 9009 of the 
Federal Rules of Bankruptcy Procedure official bank-
ruptcy forms, directing small business debtors to file peri-
odic financial and other reports containing information, 
including information relating to—
(1) the debtor’s profitability; 
(2) the debtor’s cash receipts and disburse-
ments; and 
(3) whether the debtor is timely filing tax re-
turns and paying taxes and other administrative ex-
penses when due.