I
105TH CONGRESS
1ST SESSION
H. R. 2500
To amend title 11 of the United States Code.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 18, 1997
Mr. MCCOLLUM (for himself and Mr. BOUCHER) introduced the following bill;
which was referred to the Committee on the Judiciary
A BILL
To amend title 11 of the United States Code.
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
‘‘Responsible Borrower Protection Bankruptcy Act’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I—CONSUMER BANKRUPTCY ISSUES
Sec. 101. Needs based bankruptcy.
Sec. 102. Adequate income shall be committed to a plan that pays unsecured
creditors.
Sec. 103. Notice of alternatives.
Sec. 104. Fraudulent debts are nondischargeable in chapter 13 cases.
Sec. 105. Giving secured creditors fair treatment in chapter 13.
Sec. 106. Debts incurred to pay nondischargeable debts.
Sec. 107. Credit extensions on the eve of bankruptcy presumed nondischarge-
able.
Sec. 108. Stopping abusive conversions from chapter 13.
Sec. 109. Discouraging bad faith repeat filings.
Sec. 110. Restraining abusive purchases on secured credit.
Sec. 111. Fair valuation of collateral.
Sec. 112. Debtor retention of personal property security.
Sec. 113. Bankruptcy Exemption Study Commission.
Sec. 114. Timely filing and confirmation of plans in chapter 13.
Sec. 115. Definition of substantial abuse.
Sec. 116. Giving debtors the ability to keep leased personal property by as-
sumption.
Sec. 117. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 118. Applying the co-debtor stay only when it protects the debtor.
Sec. 119. Definition of household goods.
Sec. 120. Protection of holders of claims secured by debtor’s principal resi-
dence.
Sec. 121. Extend period between bankruptcy discharges.
TITLE II—IMPROVED BANKRUPTCY ADMINISTRATION
Sec. 201. Improved bankruptcy statistics.
Sec. 202. Audit procedures.
Sec. 203. Nationwide docket of cases under title 11.
Sec. 204. Adequate preparation time for creditors before the first meeting of
creditors in individual cases.
Sec. 205. Creditor representation at first meeting of creditors.
Sec. 206. Giving creditors fair notice in chapter 7 and 13 cases.
Sec. 207. Prompt relief from stay in individual cases.
Sec. 208. Relief from stay when the debtor does not complete intended surren-
der of consumer debt collateral.
Sec. 209. Filing proofs of claim.
Sec. 210. Debtor to provide tax returns and other information.
Sec. 211. Dismissal for failure to file schedules timely or provide required infor-
mation.
Sec. 212. Adequate protection of lessors and purchase money secured creditors.
Sec. 213. Adequate time to prepare for hearing on confirmation of the plan.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Record numbers of consumer debtors are
filing for bankruptcy relief, and the number of
consumer debtors who do so are projected to con-
tinue to increase.
(2) The present consumer bankruptcy provi-
sions of the Bankruptcy Code encourage debtors to
avoid their financial and moral responsibilities by
giving too generous relief to debtors with ability to
pay some part of their debts. The cost of credit is
unnecessarily increased by such relief to the dis-
advantage of responsible American consumers.
(3) The present consumer bankruptcy provi-
sions of the Bankruptcy Code have lessened the pro-
tection which historically has been given to secured
credit. Such protection encourages availability and
lowers the cost of such credit to responsible Amer-
ican consumers.
(4) The present procedural provisions of the
Bankruptcy Code unnecessarily impose high admin-
istrative and participation costs upon creditors
whose borrowers file for consumer bankruptcy relief.
(5) The basic relief available for debtors under
the present Bankruptcy Code is reasonable and nec-
essary for those whose financial circumstances jus-
tify such relief.
TITLE I—CONSUMER
BANKRUPTCY ISSUES
SEC. 101. NEEDS BASED BANKRUPTCY.
Title 11, United States Code, is amended—
(1) in section 101 as follows:
(A) by inserting after paragraph (10) the
following:
‘‘(10A) ‘current monthly total income’ means
the average monthly income from all sources derived
which the debtor, or in a joint case, the debtor and
the debtor’s spouse, receive without regard to wheth-
er it is taxable income, in the six months 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 dependents and, in a joint case, the debtor’s
spouse if not otherwise a dependent;’’; and
(B) by inserting after paragraph (40) the
following:
‘‘(40A) ‘national median family income’ and
‘national median household income for one earner’
shall mean during any calendar year, the national
median family income and the national median
household income for one earner which the Bureau
of the Census has reported as of January 1 of such
calendar year for the most recent previous calendar
year.’’;
(2) in section 104(b)(1) by striking ‘‘109(e)’’
and inserting ‘‘subsections (b), (e), and (h) of sec-
tion 109’’;
(3) in section 109(b)—
(A) in paragraph (2) by striking ‘‘or’’ at
the end;
(B) in paragraph (3) by striking the period
and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(4) an individual or, in a joint case, an indi-
vidual and such individual’s spouse, who have in-
come available to pay creditors as determined under
subsection (h) of this section.’’;
(4) by adding at the end of section 109 the fol-
lowing:
‘‘(h)(1) An individual or, in a joint case, an individual
and such individual’s spouse, have income available to pay
creditors if the individual, or, in a joint case, the individual
and the individual’s spouse combined, as of the date of
the order for relief, have—
‘‘(A) current monthly total income of 75 per-
cent of the national median family income for a fam-
ily of equal size or, in the case of a household of one
person, 75 percent of the national median household
income for one earner, or more as of the date of the
order for relief;
‘‘(B) projected monthly net income greater than
$50; and
‘‘(C) projected monthly net income sufficient to
repay twenty percent or more of unsecured non-pri-
ority claims during a five-year repayment plan.
‘‘(2) Projected monthly net income shall be sufficient
under paragraph (1)(C) if, when multiplied by 60 months,
it equals or exceeds 20 percent of the total amount sched-
uled as payable to unsecured nonpriority creditors.
‘‘(3) ‘Projected monthly net income’ means current
monthly total income less—
‘‘(A) the expense allowances under the applica-
ble National Standards, Local Standards and Other
Necessary Expenses allowance (excluding payments
for debts) for the debtor, the debtor’s dependents,
and, in a joint case, the debtor’s spouse if not other-
wise a dependent, in the area in which the debtor re-
sides as determined under the Internal Revenue
Service financial analysis for expenses in effect as of
the date of the order for relief;
‘‘(B) the average monthly payment on account
of secured creditors, which shall be calculated as the
total of all amounts scheduled as contractually pay-
able to secured creditors in each month of the 60
months following the date of the petition by the
debtor, or, in a joint case, by the debtor and the
debtor’s spouse combined, and dividing that total by
60 months; and
‘‘(C) the average monthly payment on account
of priority creditors, which shall be calculated as the
total amount of debts entitled to priority, reasonably
estimated by the debtor as of the date of the peti-
tion, and dividing that total by 60 months.
‘‘(4) In the event that the debtor establishes extraor-
dinary circumstances that require allowance for additional
expenses, projected monthly net income for purposes of
this section shall be the amount calculated under para-
graph (3) less such additional expenses as such extraor-
dinary circumstances require.
‘‘(A) This paragraph shall not apply unless the
debtor files with the petition—
‘‘(i) a written statement that this para-
graph applies in determining the debtor’s eligi-
bility for relief under chapter 7 of this title;
‘‘(ii) a list itemizing each additional ex-
pense which exceeds the expenses allowances
provided under paragraph (3)(A);
‘‘(iii) a detailed description of the extraor-
dinary circumstances which explain why each of
the additional expenses itemized under subpara-
graph (II) requires allowance; and
‘‘(iv) a sworn statement signed by the
debtor and, if the debtor is represented by
counsel, by the debtor’s attorney, that the infor-
mation required under this paragraph is true
and correct.
‘‘(B) Until the trustee or any party in interest
objects to the debtor’s statement that this paragraph
applies and the court rejects or modifies the debtor’s
statement, the projected monthly net income in the
debtor’s statement shall be the projected monthly
net income for the purposes of this section. If an ob-
jection is filed with the court within 60 days after
the debtor has filed all information required to be
filed under section 521(1), the court, after notice
and hearing, shall determine whether such extraor-
dinary circumstances exist and shall establish the
amount of the additional expense allowance, if any.
The burden of proving such extraordinary cir-
cumstances shall be on the debtor.’’;
(5) in section 704—
(A) by striking ‘‘and’’ at the end of para-
graph (8);
(B) by striking the period at the end of
paragraph (9) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(10) with respect to an individual debtor, re-
view all materials filed by the debtor under para-
graphs (6), (7) and (8) of section 521, investigate
and verify the debtor’s projected monthly net income
and within 30 days after the order for relief under
this chapter, file a report with the court as to wheth-
er the debtor qualifies for relief under this chapter
under section 109(b)(4).’’;
(6) in section 1302(b)—
(A) in paragraph (1)—
(i) by striking ‘‘704(7) and’’ and in-
serting ‘‘704(7),’’; and
(ii) by inserting ‘‘and 704(10)’’ after
‘‘704(9)’’; and
(B) in paragraph (4) by striking ‘‘and’’ at
the end;
(C) in paragraph (5) by striking the period
and inserting a semicolon; and
(D) by adding at the end the following:
‘‘(6) investigate and verify the debtor’s monthly
net income and other information provided by the
debtor pursuant to section 521 and 1322, and pur-
suant to section 111, if applicable; and
‘‘(7) file annual reports with the court, with
copies to holders of claims under the plan, as to
whether a modification of the amount paid creditors
under the plan is appropriate because of changes in
the debtor’s monthly net income.’’.
SEC. 102. ADEQUATE INCOME SHALL BE COMMITTED TO A
PLAN THAT PAYS UNSECURED CREDITORS.
Title 11, United States Code, is amended—
(1) in section 101 by inserting after paragraph
(39) the following:
‘‘(39A) ‘monthly net income’ means the amount
determined by taking as of the date of the petition
the current monthly total income of the debtor less
the expense allowances under the applicable National
Standards, Local Standards and Other Necessary
Expenses allowance (excluding payments for debts)
for the debtor, the debtor’s dependents, and, in a
joint case, the debtor’s spouse if not otherwise a de-
pendent, in the area in which the debtor resides as
determined under the Internal Revenue Service fi-
nancial analysis for expenses in effect as of the date
of the order for relief.’’;
(2) in section 104(b)(1) by striking ‘‘and
523(a)(2)(C)’’ and inserting ‘‘523(a)(2)(C), and
1325(b)(1)’’;
(3) by adding after section 110 the following:
‘‘§ 111. Adjustment to monthly net income
‘‘(a) Monthly net income for purposes of a plan under
chapter 13 of this title shall be adjusted under this section
when the debtor’s extraordinary circumstances require ad-
justment as determined herein. Under this section, month-
ly net income shall be determined by subtracting there-
from such loss of income or additional expenses as the
debtor’s extraordinary circumstances require as deter-
mined under this section. This section shall not apply un-
less—
‘‘(1) the debtor files with the court and, in a
case in which a trustee has been appointed, with the
trustee at the times required in subsection (b) a
statement of extraordinary circumstances as fol-
lows—
‘‘(A) a written statement that this section
applies in determining the debtor’s monthly net
income;
‘‘(B) if applicable, an explanation of what
income has been lost in the six months preced-
ing the date of determination and any replace-
ment income which has been secured or is ex-
pected, and an itemization of such lost and re-
placement income;
‘‘(C) if applicable, a list itemizing each ad-
ditional expense which exceeds the expense al-
lowance provided in determining monthly net
income under section 101(39A);
‘‘(D) if applicable, a detailed description of
the extraordinary circumstances which explains
why each of the additional expenses itemized
under paragraph (C) requires allowance; and
‘‘(E) a sworn statement signed by the
debtor and, if the debtor is represented by
counsel, by the debtor’s attorney, of the amount
of monthly net income that the debtor has pur-
suant to this subsection and that the informa-
tion provided under this subsection is true and
correct; and
‘‘(2) until the trustee or any party in interest
objects to the debtor’s request that this section be
applied and the court rejects or modifies the debtor’s
statement, the monthly net income in the debtor’s
statement shall be the monthly net income for the
purposes of the debtor’s plan. If an objection is filed
with the court within the times provided in sub-
section (b), the court, after notice and hearing, shall
determine whether such extraordinary circumstances
asserted by the debtor exist and establish the
amount of the loss of income and such additional ex-
pense allowance, if any. The burden of proving such
extraordinary circumstances and the amount of the
loss of income and the additional expense allowance,
if any, shall be on the debtor.
‘‘(b) For the purposes of chapter 13 of this title, the
statement of extraordinary circumstances shall be filed
with the court and served on the trustee on or before 45
days before each anniversary of the confirmation of the
plan in order to be applicable during the next year of the
plan. Any objection thereto shall be filed 30 days after
the statement is filed with the trustee. Whenever a state-
ment is timely filed with the trustee, the trustee shall give
notice to creditors that such statement has been filed and
the amount of monthly net income stated therein within
15 days of receipt of the statement.’’;
(4) in section 1322(a)—
(A) by striking ‘‘and’’ at the end of para-
graph (2);
(B) by striking the period at the end of
paragraph (3) and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(4) state, under penalties of perjury, the
amount of monthly net income, which may be as ad-
justed under section 111, if applicable, of this title
and the amount of monthly net income which will
paid per month to unsecured non-priority creditors
under the plan.’’; and
(5) by amending section 1325(b)(1)(B) to read
as follows:
‘‘(B) the plan provides—
‘‘(i) that payments to unsecured non-prior-
ity creditors who are not insiders shall equal or
exceed $50 in each month of the plan;
‘‘(ii) that during the applicable commit-
ment period beginning on the date that the first
payment is due under the plan, the total
amount of monthly net income received by the
debtor shall be paid to unsecured nonpriority
creditors under the plan less only payments
pursuant to section 1326(b); the ‘applicable
commitment period’ shall be 5 years if the debt-
or’s total current monthly income is 75 percent
of the national median family income for a fam-
ily of equal size or, in the case of a household
of one person, 75 percent of the national me-
dian household income for one earner, or more
as of the date of confirmation of the plan and
shall be 3 years if the debtor’s total current
monthly income is less than 75 percent of the
national median family income for a family of
equal size or, in the case of a household of one
person, and less than 75 percent of the national
median household income for one earner, as of
the date of confirmation of the plan; and
‘‘(iii) that the amount payable to each
class of unsecured nonpriority claims under the
plan shall be increased or decreased during the
plan proportionately to the extent the debtor’s
monthly net income during the plan increases
or decreases as reasonably determined by the
trustee, subject to section 111 of this title, no
less frequently than as of each anniversary of
the confirmation of the plan based on monthly
net income as of 45 days before such anniver-
sary.’’; and
(6) by striking section 1325(b)(2).
SEC. 103. NOTICE OF ALTERNATIVES.
(a) Title 11, United States Code, is amended—
(1) by striking subsection (b) of section 342
and inserting the following:
‘‘(b) Prior to the commencement of a case under this
title by an individual whose debts are primarily consumer
debts, the individual shall be given or obtain (as required
to be certified in section 521(1)) a written notice which
is prescribed by the United States Trustee for the district
in which the petition is filed pursuant to title 28 United
States Code section 586 and which contains the following:
‘‘(1) A brief description of chapters 7, 11, 12
and 13 of this title and the general purpose, benefits
and costs of proceeding under each of those chap-
ters.
‘‘(2) A brief description of services which may
be available to that individual from an independent
nonprofit debt counselling service.
‘‘(3) The name, address and telephone number
of each nonprofit debt counselling service with an of-
fice located in the district in which the petition is
filed, if any. Any such non-profit debt counselling
service which has registered with the clerk of the
bankruptcy court on or before December 10 of the
preceding year shall be included in such list unless
the chief bankruptcy judge of the district, after no-
tice to the debt counselling service and the United
States Trustee and opportunity for a hearing, for
good cause, orders that a particular debt counselling
service shall not be so listed.’’; and
(2) by striking ‘‘and a statement of the debtor’s
financial affairs;’’ in paragraph (1) of section 521
and inserting the following:
‘‘a statement of the debtor’s financial affairs and, if
applicable, a certificate—
‘‘(A) of an attorney whose name is on the
petition as the attorney for the debtor or any
bankruptcy petition preparer signing the peti-
tion pursuant to section 110(b)(1) of this title
indicating that such attorney or bankruptcy pe-
tition preparer delivered to the debtor any no-
tice required by section 342(b) of this title; or
‘‘(B) if no attorney for the debtor is indi-
cated and no bankruptcy petition preparer
signed the petition, of the debtor that such no-
tice was obtained and read by the debtor.’’.
(b) Section 586(a) of title 28, United States Code,
is amended—
(1) in paragraph (5) by striking ‘‘and’’ at the
end;
(2) in paragraph (6) by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(7) on or before January 1 of each calendar
year, and also within 30 days of any change in the
nonprofit debt counselling services registered with
the bankruptcy court, prescribe and make available
on request the notice described in section 342(b)(3)
of title 11 for each district included in the region.’’.
SEC. 104. FRAUDULENT DEBTS ARE NONDISCHARGEABLE
IN CHAPTER 13 CASES.
Section 1328(a)(2) of title 11, United States Code,
is amended by inserting ‘‘(2), (4),’’ after ‘‘paragraph’’.
SEC. 105. 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 discharge under section 1328; and’’.
SEC. 106. DEBTS INCURRED TO PAY NONDISCHARGEABLE
DEBTS.
Title 11, United States Code, is amended—
(1) in section 507 by adding at the end the fol-
lowing:
‘‘(e) For the purposes of subsection (a), a claim aris-
ing from a debt which is nondischargeable under section
523(a)(14) shall have the same priority as the claim for
the underlying obligation which was paid by that non-
dischargeable debt.’’;
(2) in section 523(a) by amending paragraph
(14) to read as follows:
‘‘(14) incurred to pay a debt that would be non-
dischargeable pursuant to any other provision of this
subsection;’’.
SEC. 107. CREDIT EXTENSIONS ON THE EVE OF BANK-
RUPTCY PRESUMED NONDISCHARGEABLE.
Section 523(a)(2)(C) of title 11, United States Code,
is amended to read as follows:
‘‘(C) for purposes of subparagraph (A) of
this paragraph, consumer debts owed to a sin-
gle creditor incurred by an individual debtor on
or within 90 days before the order for relief
under this title are presumed to be non-
dischargeable.’’.
SEC. 108. STOPPING ABUSIVE CONVERSIONS FROM CHAP-
TER 13.
Section 348(f)(1) of title 11, United States Code, is
amended—
(1) by striking in subparagraph (B) ‘‘in the
converted case, with allowed secured claims’’ and in-
serting in lieu thereof ‘‘only in a case converted to
chapter 11 or 12 but not in one converted to chapter
7, with allowed secured claims in cases under chap-
ters 11 and 12’’; and
(2) in subparagraph (A) by striking ‘‘and’’ at
the end;
(3) in subparagraph (B) by striking the period
and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(C) with respect to cases converted from chap-
ter 13, the claim of any creditor holding security as
of the date of the petition shall continue to be se-
cured by that security unless the full amount of that
claim determined under applicable non-bankruptcy
law has been paid in full as of the date of conver-
sion, notwithstanding any valuation or determination
of the amount of an allowed secured claim made for
the purposes of the chapter 13 proceeding.’’.
SEC. 109. 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 ‘‘; and’’; and
(3) by adding at the end the following new
paragraphs:
‘‘(3) If a single or joint case is filed by or
against an individual debtor under chapter 7, 11, or
13, and if a single or joint case of that debtor was
pending within the previous year but was dismissed,
other than a case refiled under a chapter other than
chapter 7 after dismissal under section 707(b) of
this title, the stay under subsection (a) with respect
to any action taken with respect to a debt or prop-
erty 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. If a party in
interest requests, the court may extend the stay in
particular cases as to any or all creditors (subject to
such conditions or limitations as the court may then
impose) after notice and a hearing completed before
the expiration of the 30-day period only if the party
in interest demonstrates that the filing of the later
case is in good faith as to the creditors to be stayed.
A case is presumptively not filed in good faith (but
such presumption may be rebutted by clear and con-
vincing evidence to the contrary)—
‘‘(A) as to all creditors if—
‘‘(i) more than 1 previous case under
any of chapters 7, 11, or 13 in which the
individual was a debtor was pending within
the 1-year period;
‘‘(ii) a previous case under any of
chapters 7, 11, or 13 in which the individ-
ual was a debtor was dismissed within the
time period stated in this paragraph after
the debtor failed to file or amend the peti-
tion or other documents as required by this
title or the court without substantial ex-
cuse (but mere inadvertence or negligence
shall not be substantial excuse), failed to
pay 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 any of chap-
ters 7, 11, or 13, or any other reason to
conclude that the later case will be con-
cluded, if a chapter 7 case, with a dis-
charge, and if a chapter 11 or 13 case, a
confirmed plan which will be fully per-
formed;
‘‘(B) as to any creditor which commenced
an action under subsection (d) hereof in a pre-
vious case in which the individual was a debtor
if, as of the date of dismissal of that case, that
action was still pending or had been resolved by
terminating, conditioning, or limiting the stay
as to actions of that creditor.
‘‘(4) If a request is made for relief from the
stay under subsection (a) with respect to real or per-
sonal property of any kind, and such request is
granted in whole or in part, the court may in addi-
tion order that the relief so granted shall be in rem
either for a definite period not less than 1 year or
indefinitely. After such an order, the stay under sub-
section (a) shall not apply to any property subject
to such an in rem order in any case of the debtor.
If such an order so provides, such stay shall also not
apply in any case of any entity under this title if the
entity had reason to know of the order at the time
it obtained any interest in the property affected, or
if an entity was notified of the commencement of the
proceeding for relief from the stay at a time at
which no case in which it was a debtor was pending.
‘‘(5) For the purposes of this section, a case is
pending from the time of the order for relief until
the case is closed.’’.
SEC. 110. 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 al-
lowed claim to the extent attributable in whole or in
part to the purchase price of personal property ac-
quired by the debtor within 180 days of the filing of
the petition, except for the purpose of applying para-
graph (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
purchase 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 secu-
rity 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 prin-
cipal balance of the purchase price of the personal
property acquired and unpaid interest and charges
at the contract rate; and
‘‘(4) in any subsequent case under this title
which is filed by or against the individual debtor
within two years of the date of filing of 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 sub-
paragraphs (2) and (3), as applicable.’’.
SEC. 111. 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 property securing an al-
lowed claim shall be determined based on the replacement
value of such property as of the date of filing the petition
without deduction for costs of sale or marketing. With re-
spect to property acquired for personal, family or house-
hold purpose, replacement value shall mean retail value.’’.
SEC. 112. 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;
(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 chapter 7 case, not retain
possession of personal property as to which a credi-
tor has an allowed claim for the purchase price se-
cured in whole or in part by an interest in that per-
sonal property unless, in the case of an individual
debtor, the debtor takes one of the following actions
within 60 days after the filing of the petition or the
order for relief, whichever is later—
‘‘(A) enters into a reaffirmation agreement
with the creditor pursuant to section 524(c) of
this title with respect to the claim secured by
such property; 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 60-day pe-
riod, the personal property affected shall no longer
be property of the estate, and the creditor may take
whatever action as to such property as is permitted
by applicable nonbankruptcy law.’’; and
(2) in section 722 by inserting ‘‘in full at the
time of redemption’’ before the period at the end.
SEC. 113. BANKRUPTCY EXEMPTION STUDY COMMISSION.
(a) ESTABLISHMENT.—There is established the
Bankruptcy Exemption Study Commission (in this section
referred to as the ‘‘Commission’’).
(b) DUTIES.—The duties of the Commission are to
investigate, study, solicit divergent views of all parties in-
terested in the bankruptcy system and report on issues
and problems and any proposals of the Commission relat-
ing to exemptions under section 522, title 11, United
States Code, including whether exemptions under that sec-
tion should be uniform nationally, and the size of exemp-
tions appropriate in individual cases under title 11.
(c) MEMBERSHIP.—The Commission shall be com-
posed of 8 members as follows:
(1) Two members shall be appointed by the
President, 1 of whom shall be designated chairman
by the President.
(2) Three members shall be appointed by the
majority leader of the Senate.
(3) Three members shall be appointed by the
Speaker of the House of Representatives.
Members of Congress, and officers and employees of the
executive branch, shall be ineligible for appointment to the
Commission. Members of the Commission shall be ap-
pointed for the life of the Commission.
(d) QUORUM.—Three members of the Commission
shall constitute a quorum, but a lesser number may con-
duct meetings.
(e) FIRST APPOINTMENTS.—The first appointments
made under paragraph (3) shall be made within 60 days
after the date of enactment of this Act.
(f) FIRST MEETING.—The first meeting of the Com-
mission shall be called by the chairman and shall be held
within 100 days after the date of the enactment of this
Act.
(g) VACANCIES.—A vacancy on the Commission re-
sulting from the death or resignation of a member shall
not affect its powers and shall be filled in the same man-
ner in which the original appointment was made.
(h) CONTINUATION OF SERVICE.—If any member of
the Commission who was appointed to the Commission as
an officer or employee of a government leaves the office,
or if any member of the Commission who was not ap-
pointed in such a capacity becomes an officer or employee
of a government, the member may continue as a member
of the Commission for not longer than a 90-day period
beginning on the date the member leaves that office or
becomes such an officer or employee, as the case may be.
(i) COMPENSATION.—A member of the Commission
who is an officer or employee of the United States shall
serve without additional compensation.
(j) EXPENSES OF MEMBERS.—Members of the Com-
mission shall be reimbursed for travel, subsistence, and
other necessary expenses incurred by them in the perform-
ance of their duties.
(k) PERSONNEL.—The chairman of the Commission
may, without regard to the civil service laws and regula-
tions, appoint, and terminate such personnel as are nec-
essary to enable the Commission to perform its duties. The
chairman of the Commission may fix the compensation of
the personnel without regard to the provisions of chapter
51 and subchapter II of chapter 53 of title 5, United
States Code, relating to classification of positions and
General Schedule pay rates, except that the rate of pay
for the executive director and other personnel may not ex-
ceed the rate payable for level V of the Executive Schedule
under section 5316 of that title.
(l) EXPERTS AND CONSULTANTS.—The Commission
may procure temporary and intermittent services of ex-
perts and consultants under section 3109(b) of title 5,
United States Code.
(m) HEARINGS.—The Commission or, on authoriza-
tion of the Commission, a member of the Commission,
may hold such hearings, sit and act at such time and
places, take such testimony, and receive such evidence, as
the Commission considers appropriate. The Commission
or a member of the Commission may administer others
or affirmations to witnesses appearing before it.
(n) OBTAINING
INFORMATION.—The Commission
may secure directly from any Federal department, agency,
or court information necessary to enable it to carry out
this section. Upon request of a Federal department or
agency, or a chief judge of a Federal court shall furnish
such information, consistent with law, to the Commission.
(o) FACILITIES AND SUPPORT SERVICES.—The Ad-
ministrator of General Services shall provide to the Com-
mission on a reimbursable basis such facilities and support
services as the Commission may request. Upon request of
the Commission, the head of a Federal department or
agency may make any of the facilities or services of the
agency available to the Commission to assist the Commis-
sion in carrying out its duties under this section.
(p) EXPENDITURES AND CONTRACTS.—The Commis-
sion or, on authorization of the Commission, a member
of the Commission, may make expenditures and enter into
contracts for the procurement of such supplies, services,
and property as the Commission or member considers ap-
propriate for the purposes of carrying out the duties of
the Commission. Such expenditures and contracts may be
made only to such extent or in such amounts as are pro-
vided in appropriation action.
(q) USE OF MAILS.—The Commission may use the
United States mails in the same manner and under the
same conditions as other Federal departments and agen-
cies of the United States.
(r) DONATIONS.—The Commission may accept, use,
and dispose of gifts or donations of services or property.
(s) REPORT.—The Commission shall submit to the
Congress, the Chief Justice of the United States, and the
President a report not later than 1 year after the date
of enactment of this Act. The report shall contain a de-
tailed statement of the findings and conclusions of the
Commission, together with its recommendations for such
legislative or administrative action as it considers appro-
priate.
(t) TERMINATION.—The Commission shall cease to
exist on the date that is 30 days after the date on which
it submits its report.
(u) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated $500,000 to carry out this
section.
SEC. 114. TIMELY FILING AND CONFIRMATION OF PLANS IN
CHAPTER 13.
Title 11, United States Code, is amended—
(1) by inserting in section 1321 after ‘‘plan’’
the following:
‘‘on or before 90 days after the filing of the petition unless
the court, after notice and hearing, orders otherwise.’’;
and
(2) in section 1324 by adding at the end the
following:
‘‘Such hearing shall be held within forty-five days of the
filing of the plan, unless the court, after notice and hear-
ing, orders otherwise.’’.
SEC. 115. DEFINITION OF SUBSTANTIAL ABUSE.
Section 707(b) of title 11, United States Code, is
amended to read as follows:
‘‘(b)(1) After notice and a hearing, the court, on its
own motion or on motion by the United States trustee or
any party in interest shall dismiss a case filed by an indi-
vidual debtor under this chapter if it finds that the grant-
ing of relief would be a substantial abuse of the provisions
of this chapter.
‘‘(2) The court shall determine that substantial abuse
exists if either—
‘‘(A) the debtor is excluded from this chapter
pursuant to section 109 of this title; or
‘‘(B) the totality of the circumstances of the
debtor’s financial situation demonstrate substantial
abuse.
‘‘(3) In the case of a motion brought by a party in
interest other than the trustee or United States Trustee
under paragraph (1) which is denied by the court and
found to be based on unsubstantiated allegations, the
court may award against the moving party reasonable at-
torney’s fees and costs which the debtor incurred in de-
fending the motion.’’.
SEC. 116. 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
terminated.
‘‘(2) In the case of an individual under chapter 7,
the debtor may notify the creditor in writing that the debt-
or desires to assume the lease. Upon being so notified,
the creditor may, at its option, notify the debtor that it
is willing to have the lease assumed by the debtor and
may condition such assumption on cure of any outstanding
default on terms set by the lessor. If within 30 days of
such notice 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)(2) of this title shall not be violated by noti-
fication of the debtor and negotiation of cure under this
subsection.
‘‘(3) In a chapter 11 case in which the debtor is an
individual and in a chapter 13 case, 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 sec-
tion 362 of this title and any stay under section 1301 is
automatically terminated with respect to the property sub-
ject to the lease.’’.
SEC. 117. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION
IN CERTAIN CASES.
Title 11, United States Code, is amended—
and by striking ‘‘five years’’ and inserting
‘‘maximum duration period’’; and
(B) by inserting at the end of subsection
(c) the following:
‘‘The maximum duration period shall be 5 years if the
debtor’s total current monthly income is $2,000 or more
as of the date of modification and shall be three years
if the debtor’s total current monthly income is less than
$2,000 or less as of the date of modification.’’
SEC. 118. APPLYING THE CO-DEBTOR STAY ONLY WHEN IT
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) When the debtor did not receive the consider-
ation for the claim held by a creditor, the stay provided
by subsection (a) does not apply to such creditor, notwith-
standing subsection (c), to the extent the creditor proceeds
against the individual which received such consideration
or against property not in the possession of the debtor
which secures such claim.
‘‘(3) When the debtor’s plan provides that the debt-
or’s interest in personal property subject to a lease as to
which the debtor is the lessee will be surrendered or aban-
doned or no payments will be made under the plan on ac-
count of the debtor’s obligations under the lease, the stay
provided by subsection (a) shall terminate as of the date
of confirmation of the plan notwithstanding subsection
(c).’’.
SEC. 119. DEFINITION OF HOUSEHOLD GOODS.
Section 522(f) of title 11, United States Code, is
amended by adding at the end the following:
‘‘(4) As used in this paragraph, ‘household goods’
shall have the meaning given in the Trade Regulation Rule
on Credit Practices promulgated by the Federal Trade
Commission, 16 C.F.R. 444.1(i) as in existence on the
date of enactment.’’.
SEC. 120. PROTECTION OF HOLDERS OF CLAIMS SECURED
BY DEBTOR’S PRINCIPAL RESIDENCE.
Title 11, United States Code, is amended—
(1) in section 101 by inserting after paragraph
(13) the following:
‘‘(13A) ‘debtor’s principal residence’ means a
residential structure including incidental property
when the structure contains one to four units,
whether or not that structure is attached to real
property, and includes, without limitation, an indi-
vidual condominium or cooperative unit or mobile or
manufactured home or trailer;
‘‘(13B) ‘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 lo-
cated in the residence, and easements, appur-
tenances, fixtures, rents, royalties, mineral rights, oil
and gas rights, escrow funds and insurance pro-
ceeds.’’;
(A) in paragraph (17) by striking ‘‘or’’ at
the end thereof;
(B) in paragraph (18) by striking the pe-
riod at the end; and
(C) in section 362(b) by inserting after
paragraph (18) the following:
‘‘(19) under subsection (a), until a prepetition
default is cured fully in a chapter 13 of this title
case by actual payment of all arrears as required by
the plan, of the postponement, continuation or other
similar delay of a prepetition foreclosure proceeding
or sale in accordance with applicable nonbankruptcy
law, but nothing herein shall imply that such post-
ponement, continuation or other similar delay is a
violation of the stay under subsection (a).’’;
(2) by amending section 1322(b)(2) to read as
follows:
‘‘(2) modify the rights of holders of secured
claims, other than a claim secured only by a security
interest in property used as the debtor’s principal
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;’’.
SEC. 121. EXTEND PERIOD BETWEEN BANKRUPTCY DIS-
CHARGES.
Title 11, United States Code, is amended—
(1) in section 727(a)(8) by striking ‘‘six’’ and
inserting ‘‘10’’; and
(2) in section 1328 by adding at the end the
following:
‘‘(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 debtor has received a discharge in any case filed
under this title within 5 years of the order for relief under
this chapter.’’.
TITLE II—IMPROVED
BANKRUPTCY ADMINISTRATION
SEC. 201. IMPROVED BANKRUPTCY STATISTICS.
(a) AMENDMENT.—Title 28, United States Code, is
amended by adding after section 158 the following new
section:
‘‘§ 159. Bankruptcy statistics
‘‘The clerk of each district shall compile statistics re-
garding individual debtors with primarily consumer debts
seeking relief under chapters 7, 11, and 13 of title 11,
United States Code. Such statistics shall be in a form pre-
scribed by the Administrative Office of the United States
Courts. The Office shall compile such statistics, and make
them public, and report annually to the Congress on the
information collected, and on its analysis thereof, no later
than October 31 of each year. Such compilation shall be
itemized by chapter of title 11 of the United States Code,
shall be presented in the aggregate and for each district,
and shall include the following:
‘‘(1) Total assets and total liabilities of such
debtors, and in each category of assets and liabil-
ities, as reported in the schedules prescribed pursu-
ant to 28 U.S.C. 2075 and filed by such debtors.
‘‘(2) The current total monthly income, pro-
jected monthly net income, and average income and
average expenses of such debtors as reported on the
schedules and statements the debtor has filed under
sections 111, 521 and 1322 of this title.
‘‘(3) The aggregate amount of debt discharged
in the reporting period, determined as the difference
between the total amount of debt and obligations of
a debtor reported on the schedules and the amount
of such debt reported in categories which are pre-
dominantly non-dischargeable.
‘‘(4) The average time between the filing of the
petition and the closing of the case.
‘‘(5) The number of cases in the reporting pe-
riod in which a reaffirmation was filed and the total
number of reaffirmations filed in that period, and of
those cases in which a reaffirmation was filed, the
number in which the debtor was not represented by
an attorney, and of those the number of cases in
which the reaffirmation was approved by the court.
‘‘(6) With respect to cases filed under chapter
13 of title 11—
‘‘(A) the number of cases in which a final
order was entered determining the value of
property securing a claim less than the claim,
and the total number of such orders in the re-
porting period; and
‘‘(B) the number of cases dismissed for
failure to make payments under the plan.
‘‘(7) The number of cases in which the debtor
filed another case within the 6 years previous to the
filing.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect 18 months after the date
of the enactment of this Act.
SEC. 202. AUDIT PROCEDURES.
(a) AMENDMENT.—Section 586 of title 28, United
States Code, is amended—
(1) by amending paragraph (6) to read as fol-
lows:
‘‘(6) make such reports as the Attorney General
directs, including the results of audits performed
under subsection (f).’’;
(2) by inserting at the end the following:
‘‘(f)(1) The Attorney General shall establish proce-
dures for the auditing of the accuracy and completeness
of petitions, schedules and other information which the
debtor is required to provide under sections 521 and 1322,
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 accountants.
Such procedures shall—
‘‘(A) establish a method of selecting appropriate
qualified persons to contract with the United States
Trustee to perform such audits;
‘‘(B) establish a method of randomly selecting
cases to be audited according to generally accepted
audit standards, provided that no less than one out
of every fifty cases in each Federal judicial district
shall be selected for audit;
‘‘(C) require audits for schedules of income and
expenses which reflect higher than average variances
from the statistical norm of the district in which the
schedules were filed;
‘‘(D) establish procedures for reporting the re-
sults of such audits and any material misstatement
of income, expenditures or assets of a debtor to the
Attorney General, the United States Attorney and
the court, as appropriate, and for providing public
information no less than annually on the aggregate
results of such audits including the percentage of
cases, by district, in which a material misstatement
of income or expenditures is reported; and
‘‘(E) establish procedures for fully funding such
audits, including procedures requiring each debtor
with sufficient available income or assets to contrib-
ute to the payment for such audits, either as an ad-
ministrative expense or otherwise.
‘‘(2) The United States trustee for each district is
authorized to contract with auditors to perform audits in
cases designated by the United States trustee according
to the procedures established under paragraph (1) of this
subsection.
‘‘(3) According to procedures established under para-
graph (1), upon request of a duly appointed auditor, the
debtor shall cause the accounts, papers, documents, finan-
cial records, files and all other papers, things or property
belonging to the debtor as the auditor requests and which
are reasonably necessary to facilitate audit to be made
available for inspection and copying.
‘‘(4) The report of each such audit shall be filed with
the court, the Attorney General, and the United States
Attorney, as required under procedures established by the
Attorney General under paragraph (1). If a material
misstatement of income or expenditures or of assets is re-
ported, a statement specifying such misstatement shall be
filed with the court and the United States trustee shall
give notice thereof to the creditors in the case and, in an
appropriate case, in the opinion of the United States trust-
ee, requires investigation with respect to possible criminal
violations, the United States Attorney for the district.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect 18 months after the date of
the enactment of this Act.
SEC. 203. NATIONWIDE DOCKET OF CASES UNDER TITLE 11.
(a) AMENDMENT.—Section 586 of title 28, United
States Code, as amended by section 202, is amended by
adding at the end the following:
‘‘(g)(1) The Administrative Office of the United
States Courts shall establish a nationwide docket of the
name, address, bankruptcy case number, and district of
filing of the debtors who file after that date for relief
under title 11, chapter 7, 11, 12, and 13, to be established
and maintained by the Administrative Office of the United
States Courts. The docket may include any other informa-
tion disclosed on the petition or otherwise which the Ad-
ministrative Office of the United States Courts determines
is necessary to assure the accuracy and integrity of the
identification of the debtor and the debtor’s case in the
docket. The Administrative Office of the United States
Courts is authorized to prescribe regulations, forms, and
procedures for the prompt entry and maintenance in such
central docket by the district court of the required infor-
mation. Such docket shall be subject to nationwide search
by users alphabetically by last name, numerically by the
surname of the debtor, and in a joint case, the surname
of the debtor’s spouse, or by street address, or by any
other category of identification information contained
therein.
‘‘(2) The Administrative Office of the United States
Courts shall prescribe standards and procedures with re-
spect to access to the docket created under paragraph (1),
except that the United States trustees, any trustee ap-
pointed and duly serving in a case pending under chapter
7, 11, 12, or 13 of title 11, and any creditor in such a
case shall have access pursuant to such procedures, but
such procedures may impose limitations and controls on
such access and on the use of information obtained reason-
ably related to protecting the privacy of those registered.
‘‘(3) The Administrative Office of the United States
Courts may prescribe a reasonable access fee to defray the
cost of creating and maintaining the docket created under
paragraph (1), provided that such fee shall be charged
every user of the docket including the United States trust-
ee and any trustee, and provided that such fee shall not
exceed $5 per search of any combination of information
with respect to any one debtor.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect 18 months after the date
of the enactment of this Act.
SEC. 204. ADEQUATE PREPARATION TIME FOR CREDITORS
BEFORE THE FIRST MEETING OF CREDITORS
IN INDIVIDUAL CASES.
Section 341(a) of title 11, United States Code, is
amended by inserting after the first sentence the follow-
ing:
‘‘If the debtor is an individual in a voluntary case under
chapter 7, 11, or 13, the first meeting of creditors shall
not be convened earlier than 60 days (or later than 90
days) after the date of the order for relief, unless the
court, after notice and hearing, determines unusual cir-
cumstances justify an earlier meeting.’’.
SEC. 205. 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 follow-
ing:
‘‘Notwithstanding any local court rule, provision of a State
constitution, any other State or Federal nonbankruptcy
law, or other requirement that representation at the meet-
ing of creditors under subsection (a) be by an attorney,
a creditor holding a consumer debt or its representatives
(which representatives may include an entity or an em-
ployee of an entity and may be a representative for more
than one creditor) shall be permitted to appear at and par-
ticipate 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 con-
strued to require any creditor to be represented by an at-
torney at any meeting of creditors.’’.
SEC. 206. GIVING CREDITORS FAIR NOTICE IN CHAPTER 7
AND 13 CASES.
Section 342 of title 11, United States Code, is
amended—
(1) in subsection (c)—
(A) by striking ‘‘, but the failure of such
notice to contain such information shall not in-
validate the legal effect of such notice’’; and
(B) by adding the following at the end:
‘‘If the credit agreement between the debtor and the credi-
tor or the last communication before the filing of the peti-
tion 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 debtor shall include such account number in any notice
to the creditor required to be given under this title. If the
shall be to that address unless specific notice is given
under subsection (d) with respect to a particular case.
‘‘(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 receiving notices concerning bankruptcy cases and has
established reasonable procedures so that bankruptcy no-
tices received by the creditor will be delivered to such de-
partment or person, notice will not be brought to the at-
tention of the creditor until received by such person or
department. No sanction under section 362(h) of this title
or any other sanction which a court may impose on ac-
count 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 sec-
tion.’’.
SEC. 207. PROMPT RELIEF FROM STAY IN INDIVIDUAL
CASES.
Section 362(e) of title 11, United States Code, is
amended by inserting at the end the following:
‘‘Notwithstanding the foregoing, in the case of an individ-
ual filing under chapter 7, 11, or 13, the stay under sub-
section (a) of this section shall terminate 60 days after
a request under subsection (d) of this section, unless—
‘‘(1) a final decision is rendered by the court
within such 60-day period; or
‘‘(2) such 60-day period is extended either by
agreement of all parties in interest or by the court
for a specific time which the court finds is required
by compelling circumstances.’’.
SEC. 208. RELIEF FROM STAY WHEN THE DEBTOR DOES
NOT COMPLETE INTENDED SURRENDER OF
CONSUMER DEBT COLLATERAL.
Title 11, United States Code, is amended as fol-
lows—
(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 property of the estate securing in whole
or in part a claim, or subject to an unexpired lease, if
the debtor fails within 30 days after the expiration of the
applicable time set by section 521(2) of this title—
‘‘(1) to file timely any statement of intention
required under section 521(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 pur-
suant to section 722 of this title, reaffirm the debt
it secures pursuant to section 524(c) of this title, or
assume 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 con-
tract terms.’’;
(2) in section 521—
(A) 
in 
subsection 
(2) 
by 
striking
‘‘consumer’’;
(B) in paragraph (2)(B)—
(i) by striking ‘‘forty-five’’ each place
it appears and inserting ‘‘ninety’’; and
(ii) by striking ‘‘the filing of a notice
of intent under this section’’ and inserting
‘‘order for relief’’; and
(C) in paragraph (2)(C) by inserting ‘‘ex-
cept as provided in section 362(h)’’ before the
semicolon.
SEC. 209. FILING PROOFS OF CLAIM.
Section 501 of title 11, United States Code, is
amended by adding at the end the following:
‘‘(e) In a case under chapter 7 or 13, a proof of claim
or interest is deemed filed under this section for any claim
or interest that appears in the schedules filed under sec-
tion 521(1) of this title, except a claim or interest that
is scheduled as disputed, contingent, or unliquidated.’’.
SEC. 210. DEBTOR TO PROVIDE TAX RETURNS AND OTHER
INFORMATION.
Section 521 of title 11, United States Code, is
amended—
(1) by inserting ‘‘(a)’’ before ‘‘The’’;
(2) by amending paragraph (1) to read as fol-
lows:
‘‘(1) file—
‘‘(A) a list of creditors, and
‘‘(B) unless the court orders otherwise—
‘‘(i) a schedule of assets and liabil-
ities;
‘‘(ii) a schedule of current income and
current expenditures;
‘‘(iii) a statement of the debtor’s fi-
nancial affairs;
‘‘(iv) copies of any federal tax returns,
including any schedules or attachments,
filed by the debtor for the 3 years preced-
ing 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
filing of the petition;
‘‘(vi) a statement of the amount of
projected monthly net income, itemized to
show how calculated;
‘‘(vii) if applicable, any statement
under paragraphs (3) and (4) of section
109(h); and
‘‘(viii) a statement disclosing any rea-
sonably anticipated increase in income or
expenditures over the next 12 months;’’;
and
(3) by adding at the end the following:
‘‘(b) At any time, a creditor in a case of an individual
under chapters 7 or 13 may file with the court and serve
on the debtor notice that the creditor requests the petition,
schedules and statement of affairs filed by the debtor in
the case. At any time, a creditor in a case under chapter
13 may file with the court and serve on the debtor notice
that the creditor requests the plan filed by the debtor in
the case. Within 10 days of the first such request in a
case under this subsection for the petition, schedules and
statement of affairs and the first such request for the plan
under this subsection, the debtor shall serve on that credi-
tor a conformed copy of the requested documents or plan
and any amendments thereto as of that date, and shall
thereafter promptly serve on that creditor at the time filed
with the court—
‘‘(1) any requested document or plan which is
not filed with the court at the time requested; and
‘‘(2) any amendment to any requested docu-
ment or plan.
‘‘(c) 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 com-
mencement 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 section 521(1) were filed
with respect to the period three years before the
order for relief;
‘‘(3) any amendments to any of the tax returns,
including schedules or attachments, described in
paragraph (1) or (2); and
‘‘(4) in a case under chapter 13, from a time
which is the later of ninety days after the close of
the debtor’s tax year or one year after the order for
relief unless a plan has then been confirmed, and
thereafter on or before 45 days before each anniver-
sary of the confirmation of the plan until the case
is closed, a statement subject to the penalties of per-
jury by the debtor of the debtor’s income and ex-
penditures in the preceding tax year and monthly
net income, showing how calculated. Such statement
shall disclose the amount and sources of income of
the debtor, the identity of any persons responsible
with the debtor for the support of any dependents of
the debtor, and any persons who contributed and the
amount contributed to the household in which the
debtor resides. Such tax returns, amendments and
statement of income and expenditures shall be avail-
able to the United States Trustee, any bankruptcy
administrator, any trustee and any party in interest
for inspection and copying.’’.
SEC. 211. DISMISSAL FOR FAILURE TO FILE SCHEDULES
TIMELY OR PROVIDE REQUIRED INFORMA-
TION.
Section 707 of title 11, United States Code, is
amended by adding at the end the following:
‘‘(c) Notwithstanding subsection (a), if an individual
debtor in a voluntary case under chapters 7 or 13 fails
to file all of the information required under section 521(1)
of this title within 45 days after the filing of the petition,
the case shall be automatically dismissed effective on the
16th day after the filing of the petition without the need
for any order of court, but any party in interest may re-
quest the court to enter an order dismissing the case and
the court shall, if so requested, enter an order of dismissal
within 5 days of such request. Upon request of the debtor
made within 45 days after the filing of the petition, the
court may allow the debtor up to an additional 15 days
to file the information required under section 521(1) of
this title if the court finds compelling justification for
doing so.
‘‘(d) If an individual debtor in a case under chapters
7 or 13 fails to perform any of the duties imposed by para-
graph (7) or (8) of section 521 of this title, any party
in interest may request that the court order the debtor
to comply. Within 10 days of such request the court shall
order that the debtor do so within a period of time set
by the court no longer than 30 days. If the debtor does
not comply with that order within the period of time set
by the court, the court shall, on request of any party in
interest certifying that the debtor has not so complied,
enter an order dismissing the case within 5 days of such
request.’’.
SEC. 212. ADEQUATE PROTECTION OF LESSORS AND PUR-
CHASE MONEY SECURED CREDITORS.
Title 11, United States Code, is amended by adding
after section 1306 the following:
‘‘§ 1307A. Adequate protection in chapter 13 cases
‘‘(a)(1) On or before 30 days after the filing of a case
under this chapter, the debtor shall make cash payments
in the amount described below to any lessor of personal
property and to any creditor holding a claim secured by
personal property to the extent such claim is attributable
to the purchase of such property by the debtor. The debtor
or the plan shall continue such payments until the earlier
of—
‘‘(A) the time at which the creditor begins to
receive actual payments under the plan; or
‘‘(B) the debtor relinquishes possession of such
property to the lessor or creditor, or to any third
party acting under claim of right, as applicable.
‘‘(2) Such cash payments shall be in the amount of
any weekly, biweekly, monthly or other periodic payment
scheduled as payable under the contract between the debt-
or and creditor; shall be paid at the times at which such
payments are scheduled to be made; and shall not include
any arrearages, penalties, or default or delinquency
charges. Such payments shall be deemed to be adequate
protection payments under section 362 of this title.
‘‘(b) The court may, after notice and hearing, change
the amount and timing of the adequate protection pay-
ment under subsection (a), but in no event shall it be pay-
able less frequently than monthly or in an amount less
than the reasonable depreciation of such property month
to month.
‘‘(c) Notwithstanding section 1326(b) of this title, if
a confirmed plan provides for payments to a creditor or
lessor described in subsection (a) and provides that pay-
ments to such creditor or lessor under the plan will be
deferred until payment of amounts described in section
1326(b) of this title, the payments required hereunder
shall nonetheless be continued in addition to plan pay-
ments until actual payments to the creditor begin under
the plan.
‘‘(d) Notwithstanding sections 362, 542, and 543 of
this title, a lessor or creditor described in subsection (a)
may retain possession of property described in subsection
(a) which was obtained rightfully prior to the date of filing
of the petition until the first such adequate protection pay-
ment is received by the lessor or creditor. Such retention
of possession and any acts reasonably related thereto shall
not violate the stay imposed under section 362(a) of this
title, nor any obligations imposed under section 542 or
543 of this title.
‘‘(e) On or before 60 days after the filing of a case
under this chapter, a debtor retaining possession of per-
sonal property subject to a lease or securing a claim attrib-
utable in whole or in part to the purchase price of that
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 continue to do so for so long as the debtor
retains possession of such property.’’.
SEC. 213. ADEQUATE TIME TO PREPARE FOR HEARING ON
CONFIRMATION OF THE PLAN.
Section 1324 of title 11, United States Code, is
amended—
(1) by striking ‘‘After’’ and inserting the follow-
ing:
‘‘(a) Except as provided in subsection (b) and after’’;
and
(2) by adding at the end the following:
‘‘(b) If a creditor objects not later than 5 days after
receiving notice of a hearing on confirmation of the plan,
the hearing on confirmation of the plan may be held no
earlier than twenty days after the first meeting of credi-
tors under section 341(a) of this title.’’.
Æ