‘‘(C) in the case of any successful action
under subparagraphs (A) or (B),
shall be awarded the costs of the action and
reasonable attorney fees as determined by the
court.
‘‘(D) the United States District Court for
any district located in the State shall have con-
current jurisdiction of any action under sub-
paragraphs (A) or (B).
‘‘(c) RELATION TO STATE LAW.—This section and
sections 526 and 527 shall not annul, alter, affect or ex-
empt any person subject to those sections from complying
with any law of any State except to the extent that such
law is inconsistent with those sections, and then only to
the extent of the inconsistency.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tion for chapter 5 of title 11, United States Code, as
amended by sections 114 and 115, is amended by inserting
after the item relating to section 527, the following:
‘‘528. Debt relief counselling agency enforcement.’’.
Subtitle C—Adequate Protections
for Secured Lenders
SEC. 121. 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 1-year period 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 property securing such debt or with respect
to any lease will terminate with respect to the debtor
on the 30th day after the filing of the later case. 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 filed
not in good faith (but such presumption may be re-
butted by clear and convincing evidence to the con-
trary)—
‘‘(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
such 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
such 1-year period, after the debtor failed
to file or amend the petition or other docu-
ments as required by this title or the court
without substantial excuse (but mere inad-
vertence or negligence shall not be sub-
stantial excuse unless the dismissal was
caused by the negligence of the debtor’s at-
torney), failed to provide adequate protec-
tion 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) in a previous
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 termi-
nating, 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 order in
addition 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. 122. DEFINITIONS OF HOUSEHOLD GOODS AND AN-
TIQUES.
Section 101 of title 11, United States Code, is
amended by inserting after paragraph (27) the following:
‘‘(27A) ‘household goods’ has the meaning
given such term in the Trade Regulation Rule on
Credit Practices promulgated by the Federal Trade
Commission (16 C.F.R.444.1(i)), as in effect on the
effective date of this paragraph;’’.
SEC. 123. 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 30 days after the first meeting of creditors
under section 341(a)—
‘‘(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 30-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. 124. 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(a)(2) of this title—
‘‘(1) to file timely any statement of intention
required under section 521(a)(2) of this title with
respect to that property or to indicate therein that
the debtor will either surrender the property or re-
tain it and, if retaining it, either redeem the prop-
erty pursuant 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 sec-
tion 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 paragraph (2) by striking ‘‘con-
sumer’’;
(B) in paragraph (2)(B)—
(i) by striking ‘‘forty-five days after
the filing of a notice of intent under this
section’’ and inserting ‘‘30 days after the
first meeting of creditors under section
341(a)’’; and
(ii) by striking ‘‘forty-five-day’’ the
second place it appears and inserting ‘‘30-
day’’;
(C) in paragraph (2)(C) by inserting ‘‘ex-
cept as provided in section 362(h)’’ before the
semicolon; and
(D) by adding at the end the following:
‘‘(g) If the debtor fails timely to take the action speci-
fied in subsection (a)(6) of this section, or in paragraphs
(1) and (2) of section 362(h) of this title, with respect
to property which a lessor or bailor owns and has leased,
rented, or bailed to the debtor or as to which a creditor
holds a security interest not otherwise voidable under sec-
tion 522(f), 544, 545, 547, 548, 549, or 553, nothing in
this title shall prevent or limit the operation of a provision
in the underlying lease or agreement which has the effect
of placing the debtor in default under such lease or agree-
ment by reason of the occurrence, pendency, or existence
of a proceeding under this title or the insolvency of the
debtor. Nothing in this subsection shall be deemed to jus-
tify limiting such a provision in any other circumstance.’’.
SEC. 125. GIVING SECURED CREDITORS FAIR TREATMENT
IN CHAPTER 13.
Section 1325(a)(5)(B)(i) of title 11, United States
Code, is amended to read as follows:
‘‘(i) the plan provides that the holder of
such claim retain the lien securing such claim
until the earlier of payment of the underlying
debt determined under nonbankruptcy law or
discharge under section 1328, and that if the
chapter 13 proceeding is dismissed or converted
without completion of the plan, such lien shall
also be retained by such holder to the extent
recognized by applicable nonbankruptcy law;
and’’.
SEC. 126. 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) 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. 127. 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 nonbankruptcy
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. Unless a
prebankruptcy default has been fully cured pursuant
to the plan at the time of conversion, in any pro-
ceeding under this title or otherwise, the default
shall have the effect given under applicable nonbank-
ruptcy law.’’.
SEC. 128. 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
that is filed by or against the debtor in the 2-year
period beginning on the date the petition is filed in
the original case, the value of the personal property
and the amount of the allowed secured claim shall
be deemed to be not less than the amount provided
under subparagraphs (2) and (3).’’.
SEC. 129. 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 the price a
retail merchant would charge for property of that kind
considering the age and condition of the property at the
time value is determined.’’.
SEC. 130. 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.’’;
(2) in section 362(b)—
(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) 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).’’; and
(3) by amending section 1322(b)(2) to read as
follows:
‘‘(2) modify the rights of holders of secured
claims, other than a claim secured primarily by a se-
curity interest in property used as the debtor’s prin-
cipal residence at any time during 180 days prior to
the filing of the petition, or of holders of unsecured
claims, or leave unaffected the rights of holders of
any class of claims;’’.
Subtitle D—Adequate Protections
for Unsecured Lenders
SEC. 141. 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. 142. 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. 143. FRAUDULENT DEBTS ARE NONDISCHARGEABLE
IN CHAPTER 13 CASES.
Section 1328(a)(2) of title 11, United States Code,
is amended—
(1) by inserting ‘‘(2), (4),’’ after ‘‘paragraph’’; and
(2) by inserting ‘‘(6),’’ after ‘‘(5),’’.
SEC. 144. APPLYING THE CODEBTOR 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. 145. CREDIT EXTENSIONS WITHOUT A REASONABLE
EXPECTATION OF REPAYMENT MADE NON-
DISCHARGEABLE.
Section 523(a)(2) of title 11, United States Code, is
amended—
(1) in subparagraph (A) by striking ‘‘or actual
fraud,’’ and inserting ‘‘actual fraud, or use of a
credit card or other device to access a credit line
without a reasonable expectation or ability to
repay,’’, and
(2) in subparagraph (B)(iv) by striking ‘‘with
intent to deceive’’ and inserting ‘‘without taking rea-
sonable steps to ensure the accuracy of the state-
ment’’.
Subtitle E—Adequate Protections
for Lessors
SEC. 161. 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. 162. 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. 163. ADEQUATE PROTECTION FOR LESSORS.
Section 362(b)(10) of title 11, United States Code,
is amended by striking ‘‘nonresidential’’.
Subtitle F—Bankruptcy Relief Less
Frequently Available for Repeat
Filers
SEC. 171. 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.’’.
Subtitle G—Exemptions
SEC. 181. EXEMPTIONS.
Section 522(b)(2)(A) of title 11, United States Code,
is amended—
(1) by striking ‘‘180’’ and inserting ‘‘365’’; and
(2) by striking ‘‘180-day’’ and inserting ‘‘365-
day’’.
TITLE II—BUSINESS
BANKRUPTCY PROVISIONS
Subtitle A—General Provisions
SEC. 201. LIMITATION RELATING TO THE USE OF FEE EX-
AMINERS.
Section 330 of title 11, United States Code, is
amended by adding at the end the following:
‘‘(e) The court may not appoint any person to exam-
ine any request for compensation or reimbursement pay-
able under this section.’’.
SEC. 202. SHARING OF COMPENSATION.
Section 504 of title 11, United States Code, is
amended by adding at the end the following:
‘‘(c) This section shall not apply with respect to shar-
ing, or agreeing to share, compensation with a bona fide
public service attorney referral program that operates in
accordance with non-Federal law regulating attorney re-
ferral services and with rules of professional responsibility
applicable to attorney acceptance of referrals.’’.
SEC. 203. CHAPTER 12 MADE PERMANENT LAW.
Section 302(f) of the Bankruptcy Judges, United
States Trustees, and Family Farmer Bankruptcy Act of
1986 (11 U.S.C. 1201 note) is repealed.
SEC. 204. 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, for cause may
order that the United States trustee not convene a meet-
ing of creditors or equity security holders if the debtor
has filed a plan as to which the debtor solicited accept-
ances prior to the commencement of the case.’’.
SEC. 205. CREDITORS’ AND EQUITY SECURITY HOLDERS’
COMMITTEES.
Section 1102(b) of title 11, United States Code, is
amended by adding at the end the following:
‘‘(3) The court on its own motion or on request of
a party in interest, and after notice and a hearing, may
order a change in membership of a committee appointed
under subsection (a) if necessary to ensure adequate rep-
resentation of creditors or of equity security holders. On
the request of a party in interest and after notice and a
hearing, the court may order a change in the membership
of a committee appointed under subsection (a) if necessary
to ensure adequate representation of creditors or of equity
security holders.’’.
SEC. 206. 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.’’.
SEC. 207. PREFERENCES.
Section 547(c) of title 11, United States Code, is
amended—
(1) by amending paragraph (2) to read as fol-
lows:
‘‘(2) to the extent that such transfer was in
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 (7) by striking ‘‘or’’ at the
end;
(3) in paragraph (8) by striking the period at
the end and inserting ‘‘; or’’; and
(4) by adding at the end the following:
‘‘(9) if, in a case filed by a debtor whose debts
are not primarily consumer debts, the aggregate
value of all property that constitutes or is affected
by such transfer is less than $5000.’’.
SEC. 208. VENUE OF CERTAIN PROCEEDINGS.
Section 1409 of title 28, United States Code, is
amended by inserting ‘‘, or a nonconsumer debt against
a noninsider of less than $10,000,’’ after ‘‘$5,000’’.
SEC. 209. SETTING A DATE CERTAIN FOR TRUSTEES TO AC-
CEPT OR REJECT UNEXPIRED LEASES ON
NONRESIDENTIAL REAL PROPERTY.
Section 365(d)(4) of title 11, United States Code, is
amended—
(1) by striking ‘‘Notwithstanding’’ and insert-
ing ‘‘(A) Subject to subparagraph (B) and notwith-
standing’’;
(2) by striking ‘‘60’’ each place it appears and
inserting ‘‘120’’; and
(3) by adding at the end the following:
‘‘(B) The court may not extend the period to assume
or reject a lease of nonresidential property beyond the date
the plan is confirmed.’’.
Subtitle B—Specific Provisions
CHAPTER 1—SMALL BUSINESS
BANKRUPTCY
SEC. 231. 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’ means—
‘‘(A) a person (including affiliates of such
person) that has aggregate noncontingent, liq-
uidated secured and unsecured debts as of the
date of the petition or the order for relief of
$5,000,000 or less (excluding debts owed to 1
or more affiliates or insiders); or
‘‘(B) a debtor of the kind described in
paragraph (51B) but without regard to the
amount of such debtor’s debts, except that if a
group of affiliated debtors has aggregate non-
contingent liquidated secured and unsecured
debts greater than $5,000,000 (excluding debt
owed to 1 or more affiliates or insiders), then
no member of such group is a small business
debtor;
(b) CONFORMING AMENDMENT.—Section 1102(a)(3)
is amended by inserting ‘‘debtor’’ after ‘‘small business’’.
SEC. 232. FLEXIBLE RULES FOR DISCLOSURE STATEMENT
AND PLAN.
Section 1125(f) of title 11, United States Code, is
amended to read as follows:
‘‘(f) Notwithstanding subsection (b), in a small busi-
ness case—
‘‘(1) in determining whether a disclosure state-
ment provides adequate information, the court shall
consider the complexity of the case, the benefit of
additional information to creditors and other parties
in interest, and the cost of providing additional in-
formation;
‘‘(2) the court may determine that the plan
itself provides adequate information and that a sepa-
rate disclosure statement is not necessary;
‘‘(3) the court may approve a disclosure state-
ment submitted on standard forms approved by the
court or adopted pursuant to section 2075 of title
28;
‘‘(4)(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 less than 20 days be-
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. 233. STANDARD FORM DISCLOSURE STATEMENTS AND
PLANS.
The Advisory Committee on Bankruptcy Rules of the
Judicial Conference of the United States shall, within a
reasonable period of time after the date of the enactment
of this Act, propose for adoption standard form disclosure
statements and plans of reorganization for small business
debtors (as defined in section 101) of title 11, United
States Code, as amended by this Act), designed to achieve
a practical balance between—
(1) the reasonable needs of the courts, the
United States trustee or bankruptcy administrator,
creditors, and other parties in interest for reason-
ably complete information; and
(2) economy and simplicity for debtors.
SEC. 234. UNIFORM NATIONAL REPORTING REQUIRE-
MENTS.
(a) REPORTING REQUIRED.—(1) Title 11 of the
United States Code is amended by inserting after section
307 the following:
‘‘§ 308. Debtor reporting requirements
‘‘A small business debtor shall file periodic financial
and other reports containing information including—
‘‘(1) the debtor’s profitability, that is, approxi-
mately how much money the debtor has been earn-
ing or losing during current and recent fiscal peri-
ods;
‘‘(2) reasonable approximations of the debtor’s
projected cash receipts and cash disbursements over
a reasonable period;
‘‘(3) comparisons of actual cash receipts and
disbursements with projections in prior reports;
‘‘(4) whether the debtor is—
‘‘(A) in compliance in all material respects
with postpetition requirements imposed by this
title and the Federal Rules of Bankruptcy Pro-
cedure; and
‘‘(B) timely filing tax returns and paying
taxes and other administrative claims when due,
and, if not, what the failures are and how, at
what cost, and when the debtor intends to rem-
edy such failures; and
‘‘(5) such other matters as are in the best inter-
ests of the debtor and creditors, and in the public
interest in fair and efficient procedures under chap-
ter 11 of this title.’’.
(2) The table of sections of chapter 3 of title 11,
United States Code, is amended by inserting after the
item relating to section 307 the following:
‘‘308. Debtor reporting requirements.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect 60 days after the date on
which rules are prescribed pursuant to section 2075, title
28, United States Code to establish forms to be used to
comply with section 308 of title 11, United States Code,
as added by subsection (a).
SEC. 235. UNIFORM REPORTING RULES AND FORMS.
The Advisory Committee on Bankruptcy Rules of the
Judicial Conference of the United States shall propose for
adoption amended Federal Rules of Bankruptcy Proce-
dure and Official Bankruptcy Forms to be used by small
business debtors to comply with section 308 of title 11,
United States Code, as added by section 234 of this Act
to achieve a practical balance between—
(1) the reasonable needs of the courts, the
United States trustee or bankruptcy administrator,
creditors, and other parties in interest for reason-
ably complete information; and
(2) economy and simplicity for debtors in cases
under such title.
SEC. 236. DUTIES IN SMALL BUSINESS CASES.
(a) DUTIES IN CHAPTER 11 CASES.—Title 11 of the
United States Code is amended by inserting after section
1114 the following:
‘‘§ 1115. Duties of trustee or debtor in possession in
small business cases
‘‘In a small business case, a trustee or the debtor in
possession, in addition to the duties provided in this title
and as otherwise required by law, shall—
‘‘(1) append to the voluntary petition or, in an
involuntary case, file within 3 days after the date of
the order for relief—
‘‘(A) its most recent balance sheet, state-
ment of operations, cash-flow statement, Fed-
eral income tax return; or
‘‘(B) a statement made under penalty of
perjury that no balance sheet, statement of op-
erations, or cash-flow statement has been pre-
pared and no Federal tax return has been filed;
‘‘(2) attend, through its senior management
personnel and counsel, meetings scheduled by the
court or the United States trustee, including initial
debtor interviews, scheduling conferences, and meet-
ings of creditors convened under section 341 of this
title;
‘‘(3) timely file all schedules and statements of
financial affairs, unless the court, after notice and a
hearing, grants an extension, which shall not extend
such time period to a date later than 30 days after
the date of the order for relief, absent extraordinary
and compelling circumstances;
‘‘(4) file all postpetition financial and other re-
ports required by the Federal Rules of Bankruptcy
Procedure or by local rule of the district court;
‘‘(5) maintain insurance customary and appro-
priate to the industry;
‘‘(6)(A) timely file tax returns;
‘‘(B) timely pay all administrative expense tax
claims, except those being contested by appropriate
proceedings being diligently prosecuted; and
‘‘(C) establish 1 or more separate deposit ac-
counts not later than 10 business days after the date
of order for relief (or as soon thereafter as possible
if all banks contacted decline the business) and de-
posit therein, not later than 1 business day after re-
ceipt thereof, all taxes collected or withheld by it for
governmental units; and
‘‘(7) allow the United States trustee or bank-
ruptcy administrator, or its designated representa-
tive, to inspect the debtor’s business premises,
books, and records at reasonable times, after reason-
able prior written notice, unless notice is waived by
the debtor.’’.
(b) TECHNICAL AMENDMENT.—The table of sections
of chapter 11, United States Code, is amended by insert-
ing after the item relating to section 1114 the following:
‘‘1115. Duties of trustee or debtor in possession in small business cases.’’.
SEC. 237. PLAN FILING AND CONFIRMATION DEADLINES.
Section 1121(e) of title 11, United States Code, is
amended to read as follows:
‘‘(e) In a small business case—
‘‘(1) only the debtor may file a plan until after
90 days after the date of the order for relief, unless
on request of a party in interest made during the
90-day period, or unless extended as provided by
this subsection, after notice and hearing the court,
for cause, orders otherwise;
‘‘(2) the plan, and any necessary disclosure
statement, shall be filed not later than 90 days after
the date of the order for relief; and
‘‘(3) the time periods specified in paragraphs
(1) and (2), and the time fixed in section 1129(e)
of this title, within which the plan shall be confirmed
may be extended only if—
‘‘(A) the debtor, after providing notice to
parties in interest (including the United States
trustee), demonstrates by a preponderance of
the evidence that it is more likely than not that
the court will confirm a plan within a reason-
able time;
‘‘(B) a new deadline is imposed at the time
the extension is granted; and
‘‘(C) the order extending time is signed be-
fore the existing deadline has expired.’’.
SEC. 238. PLAN CONFIRMATION DEADLINE.
Section 1129 of title 11, United States Code, is
amended by adding at the end the following:
‘‘(e) In a small business case, the plan shall be con-
firmed not later than 150 days after the date of the order
for relief unless such 150-day period is extended as pro-
vided in section 1121(e)(3) of this title.’’.
SEC. 239. PROHIBITION AGAINST EXTENSION OF TIME.
Section 105(d) of title 11, United States Code, is
amended—
(1) in subparagraph (B) by striking the period
at the end and inserting ‘‘; and’’; and
(2) by adding at the end the following:
‘‘(3) in a small business case, not extend the
time periods specified in sections 1121(e) and
1129(e) of this title except as provided in section
1121(e)(3) of this title.’’.
‘‘(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 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;
‘‘(v) a statement of the amount of
projected monthly net income, itemized to
show how calculated;
‘‘(vi) if applicable, any statement
under paragraphs (3) and (4) of section
109(h);
‘‘(vii) a statement disclosing any rea-
sonably anticipated increase in income or
expenditures over the next 12 months; and
‘‘(viii) a certificate, if applicable—
‘‘(I) of an attorney whose name
is on the petition as the attorney for
the debtor, or of any bankruptcy peti-
tion preparer who signed the petition