SEC. 202. PRIORITY.
Section 507(a) of title 11, United States Code, is
amended—
(1) in paragraph (8) by striking ‘‘(8) Eighth’’
and inserting ‘‘(9) Ninth’’,
(2) in paragraph (7) by striking ‘‘(7) Seventh’’
and inserting ‘‘(8) Eighth’’, and
(3) by inserting after paragraph (6) the fol-
lowing:
‘‘(7) Seventh, allowed claims of the kind speci-
fied in section 523(a)(5) of this title.’’.
SEC. 203. EXEMPTIONS.
Section 522(f) of title 11, United States Code, is
amended—
(1) in paragraph (2)(C) by striking the period
at the end and inserting a semicolon, and
(2) by adding at the end the following:
‘‘and does not secure a claim for a debt of a kind specified
in section 523(a)(5) of this title.’’.
SEC. 204. EXCEPTION TO DISCHARGE.
Section 523(a)(5) of title 11, United States Code, is
amended to read as follows:
‘‘(5) to a spouse, former spouse, or child of the
debtor—
‘‘(A) for alimony to, maintenance for, or
support of such spouse or child, in connection
with a separation agreement, divorce decree or
other order of a court of record, determination
made in accordance with State or territorial law
by a governmental unit, or property settlement
agreement, but not the extent that such debt
includes a liability designated as alimony, main-
tenance, or support, unless such liability is ac-
tually in the nature of alimony, maintenance, or
support; or
‘‘(B) for any liability under the terms of a
property settlement agreement entered into in
connection with a separation agreement or di-
vorce decree;
except to the extent such debt is assigned to another
entity, voluntarily, by operation of law, or otherwise
(other than debts assigned pursuant to section
402(a)(26) of the Social Security Act, or any such
debt which has been assigned to the Federal Govern-
ment or to a State or any political subdivision of
such State).’’.
SEC. 205. PREFERENCES.
Section 547(c) of title 11, United States Code,
is amended—
(1) in paragraph (6) by striking ‘‘or’’ at
the end,
(2) by redesignating paragraph (7) as
paragraph (8), and
(3) by inserting after paragraph (6) the
following:
‘‘(7) to the extent such transfer was a bona fide
payment of a debt of a kind specified in section
523(a)(5) of this title; or’’.
SEC. 206. PROPERTY OF THE ESTATE.
(a) PROPERTY UNDER CHAPTER 12.—Paragraphs
(1) and (2) of section 1207(a) of title 11, United States
Code, are amended by striking ‘‘but’’ and all that follows
through ‘‘first’’, and inserting the following:
‘‘until the plan is confirmed, except that such prop-
erty as is necessary to fund the plan and is specified
in the plan or order confirming the plan shall re-
main property of the estate’’.
(b) PROPERTY UNDER CHAPTER 13.—Paragraphs
(1) and (2) of section 1306(a) of title 11, United States
Code, are amended by striking ‘‘but’’ and all that follows
through ‘‘first’’, and inserting the following:
‘‘until the plan is confirmed, except that such prop-
erty as is necessary to fund the plan and is specified
in the plan or order confirming the plan shall re-
main property of the estate’’.
SEC. 207. CONFIRMATION OF PLAN.
(a) CONFIRMATION UNDER CHAPTER 12.—Section
1225(a) of title 11, United States Code, is amended—
(1) in paragraph (5) by striking ‘‘and’’ at the
end,
(2) by redesignating paragraph (6) as para-
graph (7), and
(3) by inserting after paragraph (5) the follow-
ing:
‘‘(6) the debtor has paid all allowable claims
arising after the order for relief for debts of the
kinds specified in section 523(a)(5) of this title;
and’’.
(b) CONFIRMATION UNDER CHAPTER 13.—Section
1325(a) of title 11, United States Code, is amended—
(1) in paragraph (5)(C) by striking ‘‘and’’ at
the end,
(2) by redesignating paragraph (6) as para-
graph (7), and
(3) by inserting after paragraph (5) the follow-
ing:
‘‘(6) the debtor has paid all allowable claims
arising after the order for relief for debts of the
kinds specified in section 523(a)(5) of this title;
and’’.
SEC. 208. EXEMPTION.
Representatives of child support creditors shall be
permitted to appear and intervene without charge, and
without meeting any special local court rule requirement
for attorney appearances, in any bankruptcy proceeding
in any bankruptcy court or district court of the United
States if such representatives file a form in such court
that contains information detailing the child support debt,
its status, and other characteristics.
SEC. 209. EFFECTIVE DATE; APPLICATION OF AMEND-
MENTS.
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this title and the amendments made by this
title shall take effect on the date of the enactment of this
Act.
(b) APPLICATION OF AMENDMENTS.—The amend-
ments made by this title shall not apply with respect to
cases commenced under title 11 of the United States Code
before the date of the enactment of this Act.
Æ
HR 915 IH——2
HR 915 IH——3
HR 915 IH——4