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 the current monthly total in-
come of the debtor less—
‘‘(A) the expense allowances under the ap-
plicable National Standards, Local Standards
and Other Necessary Expenses allowance (ex-
cluding payments for debts) for the debtor, the
debtor’s dependents, and, in a joint case, the
debtor’s spouse if not otherwise a dependent, in
the area in which the debtor resides as deter-
mined under the Internal Revenue Service fi-
nancial analysis for expenses in effect as of the
date it is being determined;
‘‘(B) the average monthly payment on ac-
count of secured creditors, which shall be cal-
culated as of the date of determination as the
total of all amounts then remaining to be paid
on account of secured claims pursuant to the
plan less any of such amounts to be paid from
sources other than the debtor’s income, divided
by the total months remaining of the plan; and
‘‘(C) the average monthly payment on ac-
count of priority creditors, which shall be cal-
culated as the total of all amounts then remain-
ing to be paid on account of priority claims pur-
suant to the plan less any of such amounts to
be paid from sources other than the debtor’s in-
come, divided by the total months remaining of
the plan.’’;
(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. The court may award
to the party that prevails with respect to such objec-
tion a reasonable attorney’s fee and costs incurred
by the prevailing party in connection with such ob-
jection if the court finds that the position of the
nonprevailing party was not substantially justified,
but the court shall not award such fee or such costs
if special circumstances make the award unjust.