Union Calendar No. 307
105TH CONGRESS
2D SESSION
H. R. 3150
[Report No. 105–540]
To amend title 11 of the United States Code, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 3, 1998
Mr. GEKAS (for himself, Mr. MCCOLLUM, Mr. BOUCHER, and Mr. MORAN of
Virginia) introduced the following bill; which was referred to the Commit-
tee on the Judiciary
MAY 18, 1998
Additional sponsors: Mrs. FOWLER, Mr. GOODLATTE, Mr. BOEHNER, Mr.
FROST, Mr. CUNNINGHAM, Mr. FAZIO of California, Mrs. MYRICK, Mr.
PEASE, Mr. HILLEARY, Mr. CALVERT, Mr. BLUNT, Mr. ENSIGN, Mr.
JENKINS, Mr. CHRISTENSEN, Mr. BOEHLERT, Mr. ADAM SMITH of
Washington, Mr. CLEMENT, Mr. METCALF, Mr. SESSIONS, Ms. FURSE,
Mr. GOODE, Mrs. KELLY, Mr. GRAHAM, Mr. KING, Mr. EHRLICH, Mr.
DEAL
of Georgia, Mr. COOK, Mr. GOODLING, Mr. SHAYS, Mr.
BLUMENAUER, Mr. BARR of Georgia, Mr. COOKSEY, Mr. LIVINGSTON,
Mr. HUTCHINSON, Mr. HALL of Texas, Mr. CAMP, Mr. BLILEY, Mr.
STUMP, Mr. FOLEY, Mr. HILL, Mrs. TAUSCHER, Mr. WELDON of Flor-
ida, Mr. SENSENBRENNER, Mr. CLYBURN, Mrs. ROUKEMA, Mr. BURTON
of Indiana, Mr. ROYCE, Mr. CANADY of Florida, Mr. WYNN, Mr. COL-
LINS, Mr. SMITH of Michigan, Mr. EVERETT, Mr. RIGGS, Mr. PETRI, Mr.
LATOURETTE, Mr. BARTON of Texas, Mr. BALLENGER, Ms. GRANGER,
Mr. HEFLEY, Ms. PRYCE of Ohio, Mr. KLECZKA, Mr. ANDREWS, Mr.
BRADY, Mrs. NORTHUP, Mr. SPENCE, Mr. TALENT, Mr. BOYD, Mr.
PICKETT, Mr. DOOLEY of California, Mr. CASTLE, Mr. SISISKY, and Mr.
JOHN
MAY 18, 1998
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 3, 1998]
A BILL
To amend title 11 of the United States Code, and for other
purposes.
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
‘‘Bankruptcy Reform Act of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—CONSUMER BANKRUPTCY PROVISIONS
Subtitle A—Needs-Based Bankruptcy
Sec. 101. Needs-based bankruptcy.
Sec. 102. Adequate income shall be committed to a plan that pays unsecured
creditors.
Sec. 103. Definition of inappropriate use.
Sec. 104. Debtor participation in credit counseling program.
Subtitle B—Adequate Protections for Consumers
Sec. 111. Notice of alternatives.
Sec. 112. Debtor financial management training test program.
Sec. 113. Definitions.
Sec. 114. Disclosures.
Sec. 115. Debtor’s bill of rights.
Sec. 116. Enforcement.
Sec. 117. Sense of the Congress.
Sec. 118. Charitable contributions.
Sec. 119. Reinforce the fresh start.
Sec. 119A. Chapter 11 discharge of debts arising from tobacco-related debts.
Subtitle C—Adequate Protections for Secured Creditors
Sec. 121. Discouraging bad faith repeat filings.
Sec. 122. Definition of household goods.
Sec. 123. Debtor retention of personal property security.
Sec. 124. Relief from stay when the debtor does not complete intended surrender
of consumer debt collateral.
Sec. 125. Giving secured creditors fair treatment in chapter 13.
Sec. 126. Prompt relief from stay in individual cases.
Sec. 127. Stopping abusive conversions from chapter 13.
Sec. 128. Restraining abusive purchases on secured credit.
Sec. 129. Fair valuation of collateral.
Sec. 130. Protection of holders of claims secured by debtor’s principal residence.
Sec. 131. Aircraft equipment and vessels.
Subtitle D—Adequate Protections for Unsecured Creditors
Sec. 141. Debts incurred to pay nondischargeable debts.
Sec. 142. Credit extensions on the eve of bankruptcy presumed nondischargeable.
Sec. 143. Fraudulent debts are nondischargeable in chapter 13 cases.
Sec. 144. Applying the codebtor stay only when it protects the debtor.
Sec. 145. Credit extensions without a reasonable expectation of repayment made
nondischargeable.
Sec. 146. Debts for alimony, maintenance, and support.
Sec. 147. Nondischargeability of certain debts for alimony, maintenance, and
support.
Sec. 148. Other exceptions to discharge.
Sec. 149. Fees arising from certain ownership interests.
Sec. 150. Protection of child support and alimony.
Sec. 151. Adequate protection for investors.
Subtitle E—Adequate Protections for Lessors
Sec. 161. Giving debtors the ability to keep leased personal property by assump-
tion.
Sec. 162. Adequate protection of lessors and purchase money secured creditors.
Sec. 163. Adequate protection for lessors.
Subtitle F—Bankruptcy Relief Less Frequently Available for Repeat Filers
Sec. 171. Extend period between bankruptcy discharges.
Subtitle G—Exemptions
Sec. 181. Exemptions.
Sec. 182. Limitation.
TITLE II—BUSINESS BANKRUPTCY PROVISIONS
Subtitle A—General Provisions
Sec. 201. Limitation relating to the use of fee examiners.
Sec. 202. Sharing of compensation.
Sec. 203. Chapter 12 made permanent law.
Sec. 204. Meetings of creditors and equity security holders.
Sec. 205. Creditors’ and equity security holders’ committees.
Sec. 206. Postpetition disclosure and solicitation.
Sec. 207. Preferences.
Sec. 208. Venue of certain proceedings.
Sec. 209. Period for filing plan under chapter 11.
Sec. 210. Period for filing plan under chapter 12.
Sec. 211. Cases ancillary to foreign proceedings involving foreign insurance com-
panies that are engaged in the business of insurance or reinsur-
ance in the United States.
Sec. 212. Rejection of executory contracts affecting intellectual property rights to
recordings of artistic performance.
Sec. 213. Unexpired leases of nonresidential real property.
Sec. 214. Definition of disinterested person.
Subtitle B—Specific Provisions
CHAPTER 1—SMALL BUSINESS BANKRUPTCY
Sec. 231. Definitions.
Sec. 232. Flexible rules for disclosure statement and plan.
Sec. 233. Standard form disclosure statements and plans.
Sec. 234. Uniform national reporting requirements.
Sec. 235. Uniform reporting rules and forms.
Sec. 236. Duties in small business cases.
Sec. 237. Plan filing and confirmation deadlines.
Sec. 238. Plan confirmation deadline.
Sec. 239. Prohibition against extension of time.
Sec. 240. Duties of the United States trustee and bankruptcy administrator.
Sec. 241. Scheduling conferences.
Sec. 242. Serial filer provisions.
Sec. 243. Expanded grounds for dismissal or conversion and appointment of
trustee.
CHAPTER 2—SINGLE ASSET REAL ESTATE
Sec. 251. Single asset real estate defined.
Sec. 252. Payment of interest.
TITLE III—MUNICIPAL BANKRUPTCY PROVISIONS
Sec. 301. Petition and proceedings related to petition.
TITLE IV—BANKRUPTCY ADMINISTRATION
Subtitle A—General Provisions
Sec. 401. Adequate preparation time for creditors before the meeting of creditors
in individual cases.
Sec. 402. Creditor representation at first meeting of creditors.
Sec. 403. Filing proofs of claim.
Sec. 404. Audit procedures.
Sec. 405. Giving creditors fair notice in chapter 7 and 13 cases.
Sec. 406. Debtor to provide tax returns and other information.
Sec. 407. Dismissal for failure to file schedules timely or provide required infor-
mation.
Sec. 408. Adequate time to prepare for hearing on confirmation of the plan.
Sec. 409. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 410. Sense of the Congress regarding expansion of rule 9011 of the Federal
Rules of Bankruptcy Procedure.
Sec. 411. Jurisdiction of courts of appeals.
Sec. 412. Establishment of official forms.
Sec. 413. Elimination of certain fees payable in chapter 11 bankruptcy cases.
Subtitle B—Data Provisions
Sec. 441. Improved bankruptcy statistics.
Sec. 442. Bankruptcy data.
Sec. 443. Sense of the Congress regarding availability of bankruptcy data.
TITLE V—TAX PROVISIONS
Sec. 501. Treatment of certain liens.
Sec. 502. Enforcement of child and spousal support.
Sec. 503. Effective notice to Government.
Sec. 504. Notice of request for a determination of taxes.
Sec. 505. Rate of interest on tax claims.
Sec. 506. Tolling of priority of tax claim time periods.
Sec. 507. Assessment defined.
Sec. 508. Chapter 13 discharge of fraudulent and other taxes.
Sec. 509. Chapter 11 discharge of fraudulent taxes.
Sec. 510. The stay of tax proceedings.
Sec. 511. Periodic payment of taxes in chapter 11 cases.
Sec. 512. The avoidance of statutory tax liens prohibited.
Sec. 513. Payment of taxes in the conduct of business.
Sec. 514. Tardily filed priority tax claims.
Sec. 515. Income tax returns prepared by tax authorities.
Sec. 516. The discharge of the estate’s liability for unpaid taxes.
Sec. 517. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 518. Standards for tax disclosure.
Sec. 519. Setoff of tax refunds.
TITLE VI—ANCILLARY AND OTHER CROSS-BORDER CASES
Sec. 601. Amendment to add a chapter 6 to title 11, United States Code.
Sec. 602. Amendments to other chapters in title 11, United States Code.
TITLE VII—MISCELLANEOUS
Sec. 701. Technical amendments.
Sec. 702. Application of amendments.
TITLE I—CONSUMER
BANKRUPTCY PROVISIONS
Subtitle A—Needs-Based
Bankruptcy
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 whether
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 1 earner’ shall
mean during any calendar year, the national median
family income and the national median household in-
come for 1 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 section
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 income
available to pay creditors as determined under sub-
section (h).’’;
(4) by adding at the end of section 109 the fol-
lowing:
‘‘(h)(1) An individual or, in a joint case, an individ-
ual and such individual’s spouse, have income available to
pay creditors if the individual, or, in a joint case, the indi-
vidual and the individual’s spouse combined, as of the date
of the order for relief, have—
‘‘(A) current monthly total income of not less
than the highest national median family income re-
ported for a family of equal or lesser size or, in the
case of a household of 1 person, of not less than the
national median household income for 1 earner, 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 nonprior-
ity 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 scheduled
as payable to unsecured nonpriority creditors.
‘‘(3) ‘Projected monthly net income’ means current
monthly total income less—
‘‘(A) the expense allowances under the applicable
National Standards, Local Standards and Other Nec-
essary 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 de-
termined under the Internal Revenue Service finan-
cial 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 debt-
or, 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 petition,
and dividing that total by 60 months.
‘‘(4) In the event that the debtor establishes extraor-
dinary circumstances that require allowance for additional
expenses or adjustment of current monthly income, pro-
jected monthly net income for purposes of this section shall
be the amount calculated under paragraph (3) less such ad-
ditional expenses or income adjustment 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) if adjustment of current monthly in-
come is claimed, an explanation of what income
has been lost in the 6 months preceding the date
of determination and any replacement income
that has been offered or secured, or is expected,
and an itemization of such lost and replacement
income;
‘‘(iii) if allowance for additional expenses is
claimed, a list itemizing each additional expense
which exceeds the expenses allowances provided
under paragraph (3)(A);
‘‘(iv) a detailed description of the extraor-
dinary circumstances that explain why each loss
of income described under clause (ii) will not be
replaced or each additional expense itemized
under clause (iii) requires allowance; and
‘‘(v) a sworn statement signed by the debtor
and, if the debtor is represented by counsel, by
the debtor’s attorney, that the information re-
quired 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 objection
is filed with the court within 60 days after the debtor
has provided all the information required under sub-
sections (a)(1) and (c)(1)(A) of section 521, the court,
after notice and hearing, shall determine whether such
extraordinary 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 provided by the debtor under sub-
sections (a)(1) and (c)(1) of section 521, investigate
and verify the debtor’s projected monthly net income
and within 30 days after such materials are so pro-
vided—
‘‘(A) file a report with the court as to
whether the debtor qualifies for relief under this
chapter under section 109(b)(4); and
‘‘(B) if the trustee determines that the debt-
or does not qualify for such relief, the trustee
shall provide a copy of such report to the parties
in interest.’’;
(6) in section 1302(b)—
(A) in paragraph (4) by striking ‘‘and’’ at
the end;
(B) in paragraph (5) by striking the period
and inserting a semicolon; and
(C) 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 sections 521 and 1322, and pursu-
ant to section 111, if applicable; and
‘‘(7) file annual reports with the court, with cop-
ies 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 (exclud-
ing payments for debts) for the debtor, the debt-
or’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 determined under
the Internal Revenue Service financial 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 income,
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, monthly
net income shall be determined by subtracting therefrom
such loss of income or additional expenses as the debtor’s
extraordinary circumstances require as determined under
this section. This section shall not apply unless—
‘‘(1) the debtor files with the court and, in a case
in which a trustee has been appointed, with the trust-
ee at the times required in subsection (b) a statement
of extraordinary circumstances as follows—
‘‘(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 preceding
the date of determination and any replacement
income which has been secured or is expected,
and an itemization of such lost and replacement
income;
‘‘(C) if applicable, a list itemizing each ad-
ditional expense which exceeds the expense allow-
ance provided in determining monthly net in-
come 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 pursuant to this
subsection and that the information 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 ap-
plied 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 pur-
poses of the debtor’s plan. If an objection is filed with
the court within the times provided in subsection (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 expense allowance, if
any. The burden of proving such extraordinary cir-
cumstances 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 objection a reasonable
attorney’s fee and costs incurred by the prevailing
party in connection with such objection 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.
‘‘(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 statement is timely
filed with the trustee, the trustee shall give notice to credi-
tors 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 ‘‘; and’’; 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 be
paid per month to unsecured nonpriority 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 nonprior-
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 pe-
riod’ shall be not less than 5 years if the debtor’s
total current monthly income is not less than the
highest national median family income reported
for a family of equal or lesser size or, in the case
of a household of 1 person, is not less than the
national median household income for 1 earner,
as of the date of confirmation of the plan and
shall be not less than 3 years if the debtor’s total
current monthly income is less than the highest
national median family income reported for a
family of equal or lesser size or, in the case of
a household of 1 person, is less than the national
median household income for 1 earner, as of the
date of confirmation of the plan;
‘‘(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 month-
ly net income during the plan increases or de-
creases as reasonably determined by the trustee,
subject to section 111 of this title, no less fre-
quently than as of each anniversary of the con-
firmation of the plan based on monthly net in-
come as of 45 days before such anniversary; and
‘‘(iv) nothing in subparagraph (i) or (ii)
shall prevent the payment of obligations de-
scribed in section 507(a)(7) at the times pro-
vided for in the plan, and the plan shall specify
how payments to other creditors under subpara-
graph (ii) will be accordingly adjusted.’’; and
(6) by striking section 1325(b)(2).
SEC. 103. DEFINITION OF INAPPROPRIATE USE.
Section 707(b) of title 11, United States Code, is
amended to read as follows:
‘‘(b)(1) After notice and a hearing, the court—
‘‘(A) on its own motion or on the motion of the
United States trustee or any party in interest, shall
dismiss a case filed by an individual debtor under
this chapter; or
‘‘(B) with the debtor’s consent, convert the case
to a case under chapter 13 of this title;
if the court finds that the granting of relief would be an
inappropriate use of the provisions of this chapter.
‘‘(2) The court shall determine that inappropriate use
of the provisions of this chapter exists if—
‘‘(A) the debtor is excluded from this chapter
pursuant to section 109 of this title; or
‘‘(B) the totality of the circumstances of the debt-
or’s financial situation demonstrates such inappro-
priate use.
‘‘(3) In the case of a motion filed by a party in interest
other than the trustee or United States trustee under para-
graph (1) that is denied by the court, the court shall award
against the moving party a reasonable attorney’s fee and
costs that the debtor incurred in opposing the motion if the
court finds that the position of the moving party was not
substantially justified, but the court shall not award such
fee and costs if special circumstances would make the award
unjust.
‘‘(4)(A) If a trustee appointed under this title or the
United States Trustee files a motion under this subsection
and the case is subsequently dismissed or converted to an-
other chapter, the court shall award to such party in inter-
est a reasonable attorney’s fee and costs incurred in connec-
tion with such motion, payable by the debtor, unless the
court finds that awarding such fee and costs would impose
an unreasonable hardship on the debtor, considering the
debtor’s conduct.
‘‘(B) The signature of the debtor’s attorney on any pe-
tition, pleading, motion, or other paper filed with the court
in the case of the debtor shall constitute a certificate that
the attorney has—
‘‘(i) performed a reasonable investigation into
the circumstances that gave rise to the petition and
its schedules and statement of financial affairs or the
pleading, as applicable; and
‘‘(ii) determined that the petition and its sched-
ules and statement of financial affairs or the plead-
ing, as applicable, including the choice of this chap-
ter—
‘‘(I) is well grounded in fact; and
‘‘(II) is warranted by existing law or a
good-faith argument for the extension, modifica-
tion, or reversal of existing law and does not
constitute an inappropriate use of the provisions
of this chapter.
‘‘(C) If the court finds that the attorney for the debtor
signed a paper in violation of subparagraph (B), at a mini-
mum, the court shall order—
‘‘(i) the assessment of an appropriate civil pen-
alty against the attorney for the debtor; and
‘‘(ii) the payment of the civil penalty to the
trustee or the United States Trustee.’’.
SEC. 104. DEBTOR PARTICIPATION IN CREDIT COUNSELING
PROGRAM.
(a) WHO MAY BE A DEBTOR.—Section 109 of title 11,
United States Code, as amended by section 102, is amended
by adding at the end the following:
‘‘(i)(1) Subject to paragraph (2) and notwithstanding
any other provision of this section, an individual may not
be a debtor under this title unless such individual has, dur-
ing the 90-day period preceding the date of filing of the
petition, made a good-faith attempt to create a debt repay-
ment plan outside the judicial system for bankruptcy law
(commonly referred to as the ‘bankruptcy system’), through
a credit counseling program offered through credit counsel-
ing services described in section 342(b)(2) that has been ap-
proved by—
‘‘(A) the United States trustee; or
‘‘(B) the bankruptcy administrator for the dis-
trict in which the petition is filed.
‘‘(2) The United States trustee or bankruptcy adminis-
trator may not approve a program for inclusion on the list
under paragraph (1) unless the counseling service offering
the program offers the program without charge, or at an
appropriately reduced charge, if payment of the regular
charge would impose a hardship on the debtor or the debt-
or’s dependents.
‘‘(3) The United States trustee or bankruptcy adminis-
trator shall designate any geographical areas in the United
States trustee region or judicial district, as the case may
be, as to which the United States trustee or bankruptcy ad-
ministrator has determined that credit counseling services
needed to comply with this subsection are not available or
are too geographically remote for debtors residing within
the designated geographical areas. The clerk of the bank-
ruptcy court for each judicial district shall maintain a list
of the designated areas within the district.
‘‘(4) The clerk shall exclude a particular counseling
service from the list maintained under section 342(b)(2) of
this title if the United States trustee or bankruptcy admin-
istrator orders that the counseling service not be included
in the list.
‘‘(5) The court may waive the requirement specified
in paragraph (1) if—
‘‘(A) no credit counseling services are available
as designated under paragraphs (2) and (3);
‘‘(B) the providers of credit counseling services
available in the district are unable or unwilling to
provide such services to the debtor in a timely man-
ner; or
‘‘(C) foreclosure, garnishment, attachment, evic-
tion, levy of execution, or similar claim enforcement
procedure that would have deprived the individual of
property had commenced before the debtor could com-
plete a good-faith attempt to create such a repayment
plan.
‘‘(6) A debtor who is subject to the exemption under
paragraph (5)(C) shall be required to make a good-faith at-
tempt to create a debt repayment plan outside the judicial
system in the manner prescribed in paragraph (1) during
the 30-day period beginning on the date of filing of the peti-
tion of that debtor.
‘‘(7) A debtor shall be exempted from the bad faith pre-
sumption for repeat filing under section 362(c) of title 11
if the case is dismissed due to the creation of a debt repay-
ment plan.
‘‘(8) Only the United States trustee may make a mo-
tion for dismissal on the ground that the debtor did not
comply with this subsection.’’.
(b) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, as amended by sections 406 and 407,
is amended by adding at the end the following:
‘‘(g)(1) In addition to the requirements under sub-
section (a), an individual debtor shall file with the court—
‘‘(A) a certificate from the credit counseling serv-
ices that provided the debtor services under section
109(i), or a verified statement as to why such attempt
was not required under section 109(i) or other sub-
stantial evidence of a good-faith attempt to create a
debt repayment plan outside the bankruptcy system
in the manner prescribed in section 109(i); and
‘‘(B) a copy of the debt repayment plan, if any,
developed under section 109(i) through the credit
counseling service referred to in paragraph (1).
‘‘(2) Only the United States trustee may make a mo-
tion for dismissal on the ground that the debtor did not
comply with this subsection.’’.
Subtitle B—Adequate Protections
for Consumers
SEC. 111. NOTICE OF ALTERNATIVES.
(a) Section 342(b) of title 11, United States Code, is
amended to read as follows:
‘‘(b)(1) Before 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 under section 521(a)(1)(B)(viii)) a written
notice that is prescribed by the United States trustee for
the district in which the petition is filed pursuant to section
586 of title 28 and that contains the following:
‘‘(A) 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 such chapters.
‘‘(B) A brief description of services that may be
available to the individual from an independent non-
profit debt counselling service.
‘‘(C) The name, address, and telephone number
of each nonprofit debt counselling service (if any)—
‘‘(i) with an office located in the district in
which the petition is filed; or
‘‘(ii) that offers toll-free telephone commu-
nication to debtors in such district.
‘‘(2) Any such nonprofit debt counselling service that
registers 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
notice to the debt counselling service and the United States
trustee and opportunity for a hearing, for good cause, orders
that such debt counselling service shall not be so listed.
‘‘(3) The clerk shall make such notice available to indi-
viduals whose debts are primarily consumer debts.’’.
(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 re-
quest the notice described in section 342(b)(1) of title
11 for each district included in the region.’’.
SEC. 112. DEBTOR FINANCIAL MANAGEMENT TRAINING
TEST PROGRAM.
(a) DEVELOPMENT OF FINANCIAL MANAGEMENT AND
TRAINING CURRICULUM AND MATERIALS.—The Director of
the Executive Office for United States Trustees (in this sec-
tion referred to as the ‘‘Director’’) shall consult with a wide
range of individuals who are experts in the field of debtor
education, including trustees who are appointed under
chapter 13 of title 11 of the United States Code and who
operate financial management education programs for debt-
ors, and shall develop a financial management training
curriculum and materials that can be used to educate indi-
vidual debtors on how to better manage their finances.
(b) TEST—(1) The Director shall select 3 judicial dis-
tricts of the United States in which to test the effectiveness
of the financial management training curriculum and ma-
terials developed under subsection (a).
(2) For a 1-year period beginning not later than 60
days after the date of the enactment of this Act, such cur-
riculum and materials shall be made available by the Direc-
tor, directly or indirectly, on request to individual debtors
in cases filed in such 1-year period under chapter 7 or 13
of title 11 of the United States Code.
(3) The bankruptcy courts in each of such districts
may require individual debtors in such cases to undergo
such financial management training as a condition to re-
ceiving a discharge in such case.
(c) EVALUATION.—(1) During the 1-year period re-
ferred to in subsection (b), the Director shall evaluate the
effectiveness of—
(A) the financial management training curricu-
lum and materials developed under subsection (a);
and
(B) a sample of existing consumer education
programs such as those described in the Report of the
National Bankruptcy Review Commission (October
20, 1997) that are representative of consumer edu-
cation programs carried out by the credit industry,
by trustees serving under chapter 13 of title 11 of the
United States Code, and by consumer counselling
groups.
(2) Not later than 3 months after concluding such eval-
uation, the Director shall submit a report to the Speaker
of the House of Representatives and the President pro tem-
pore of the Senate, for referral to the appropriate commit-
tees of the Congress, containing the findings of the Director
regarding the effectiveness of such curriculum, such mate-
rials, and such programs.
SEC. 113. DEFINITIONS.
(a) DEFINITIONS.—Section 101 of title 11, United
States Code, is amended—
(1) by inserting after paragraph (3) the follow-
ing:
‘‘(3A) ‘assisted person’ means any person whose
debts consist primarily of consumer debts and whose
non-exempt assets are less than $150,000;’’;
(2) by inserting after paragraph (4) the follow-
ing:
‘‘(4A) ‘bankruptcy assistance’ means any goods
or services sold or otherwise provided to an assisted
person with the express or implied purpose of provid-
ing information, advice, counsel, document prepara-
tion or filing, or attendance at a creditors’ meeting
or appearing in a proceeding on behalf of another or
providing legal representation with respect to a pro-
ceeding under this title;’’; and
(3) by inserting after paragraph (12A) the fol-
lowing:
‘‘(12B) ‘debt relief counselling agency’ means
any person who provides any bankruptcy assistance
to an assisted person in return for the payment of
money or other valuable consideration, or who is a
bankruptcy petition preparer pursuant to section 110
of this title, but does not include any person that is
any of the following or an officer, director, employee
or agent thereof—
‘‘(A) any nonprofit organization which is
exempt from taxation under section 501(c)(3) of
the Internal Revenue Code of 1986;
‘‘(B) any creditor of the person to the extent
the creditor is assisting the person to restructure
any debt owed by the person to the creditor; or
‘‘(C) any depository institution (as defined
in section 3 of the Federal Deposit Insurance
Act) or any Federal credit union or State credit
union (as those terms are defined in section 101
of the Federal Credit Union Act), or any affiliate
or subsidiary of such a depository institution or
credit union;’’.
(b) CONFORMING AMENDMENT.—In section 104(b)(1)
by inserting ‘‘101(3),’’ after ‘‘sections’’.
SEC. 114. DISCLOSURES.
(a) DISCLOSURES.—Subchapter II of chapter 5 of title
11, United States Code, is amended by adding at the end
the following:
‘‘§ 526. Disclosures
‘‘(a) A debt relief counselling agency providing bank-
ruptcy assistance to an assisted person shall provide the
following notices to the assisted person:
‘‘(1) the written notice required under section
342(b)(1) of this title; and
‘‘(2) to the extent not covered in the written no-
tice described in paragraph (1) of this section and no
later than three business days after the first date on
which a debt relief counselling agency first offers to
provide any bankruptcy assistance services to an as-
sisted person, a clear and conspicuous written notice
advising assisted persons of the following—
‘‘(A) all information the assisted person is
required to provide with a petition and there-
after during a case under this title must be com-
plete, accurate and truthful;
‘‘(B) all assets and all liabilities must be
completely and accurately disclosed in the docu-
ments filed to commence the case, and the re-
placement value of each asset as defined in sec-
tion 506 of this title must be stated in those doc-
uments where requested after reasonable inquiry
to establish such value;
‘‘(C) current monthly total income, pro-
jected monthly net income and, in a chapter 13
case, monthly net income must be stated after
reasonable inquiry; and
‘‘(D) that information an assisted person
provides during their case may be audited pur-
suant to this title and that failure to provide
such information may result in dismissal of the
proceeding under this title or other sanction in-
cluding, in some instances, criminal sanctions.
‘‘(b) A debt relief counselling agency providing bank-
ruptcy assistance to an assisted person shall provide each
assisted person at the same time as the notices required
under subsection (a)(1) with the following statement, to the
extent applicable, or one substantially similar. The state-
ment shall be clear and conspicuous and shall be in a single
document separate from other documents or notices pro-
vided to the assisted person:
‘‘ ‘IMPORTANT INFORMATION ABOUT BANK-
RUPTCY ASSISTANCE SERVICES FROM AN ATTOR-
NEY OR BANKRUPTCY PETITION PREPARER
‘‘ ‘If you decide to seek bankruptcy relief, you can rep-
resent yourself, you can hire an attorney to represent you,
or you can get help in some localities from a bankruptcy
petition preparer who is not an attorney. THE LAW RE-
QUIRES AN ATTORNEY OR BANKRUPTCY PETI-
TION PREPARER TO GIVE YOU A WRITTEN CON-
TRACT SPECIFYING WHAT THE ATTORNEY OR
BANKRUPTCY PETITION PREPARER WILL DO FOR
YOU AND HOW MUCH IT WILL COST. Ask to see the
contract before you hire anyone.
‘‘ ‘The following information helps you understand
what must be done in a routine bankruptcy case to help
you evaluate how much service you need. Although bank-
ruptcy can be complex, many cases are routine.
‘‘ ‘Before filing a bankruptcy case, either you or your
attorney should analyze your eligibility for different forms
of debt relief made available by the Bankruptcy Code and
which form of relief is most likely to be beneficial for you.
Be sure you understand the relief you can obtain and its
limitations. To file a bankruptcy case, documents called a
Petition, Schedules and Statement of Financial Affairs, as
well as in some cases a Statement of Intention need to be
prepared correctly and filed with the bankruptcy court. You
will have to pay a filing fee to the bankruptcy court. Once
your case starts, you will have to attend the required first
meeting of creditors where you may be questioned by a court
official called a ‘‘trustee’’ and by creditors.
‘‘ ‘If you select a chapter 7 proceeding, you may be
asked by a creditor to reaffirm a debt. You may want help
deciding whether to do so.
‘‘ ‘If you select a chapter 13 proceeding in which you
repay your creditors what you can afford over three to seven
years, you may also want help with preparing your chapter
13 plan and with the confirmation hearing on your plan
which will be before a bankruptcy judge.’
‘‘ ‘If you select another type of proceeding under the
Bankruptcy Code other than chapter 7 or chapter 13, you
will want to find out what needs to be done from someone
familiar with that type of proceeding.
‘‘ ‘Your bankruptcy proceeding may also involve litiga-
tion. You are generally permitted to represent yourself in
litigation in bankruptcy court, but only attorneys, not
bankruptcy petition preparers, can represent you in litiga-
tion.’.
‘‘(c) Except to the extent the debt relief counselling
agency provides the required information itself after reason-
ably diligent inquiry of the assisted person or others so as
to obtain such information reasonably accurately for inclu-
sion on the petition, schedules or statement of financial af-
fairs, a debt relief counselling agency providing bankruptcy
assistance to an assisted person shall provide each assisted
person at the time required for the notice required under
subsection (a)(1) reasonably sufficient information (which
may be provided orally or in a clear and conspicuous writ-
ing) to the assisted person on how to provide all the infor-
mation the assisted person is required to provide under this
title pursuant to section 521, including—
‘‘(1) how to value assets at replacement value,
determine current monthly total income, projected
monthly income and, in a chapter 13 case, net
monthly income, and related calculations;
‘‘(2) how to complete the list of creditors, includ-
ing how to determine what amount is owed and what
address for the creditor should be shown; and
‘‘(3) how to determine what property is exempt
and how to value exempt property at replacement
value as defined in section 506 of this title.
‘‘(d) A debt relief counselling agency shall maintain
a copy of the notices required under subsection (a) of this
section for two years after the later of the date on which
the notice is given the assisted person.’’.
(b) CONFORMING AMENDMENT.—The table of section
for chapter 5 of title 11, United States Code, is amended
by inserting after the item relating to section 525 the follow-
ing:
‘‘526. Disclosures.’’.
SEC. 115. DEBTOR’S BILL OF RIGHTS.
(a) DEBTOR’S BILL OF RIGHTS.—Subchapter II of
chapter 5 of title 11, United States Code, as amended by
section 114, is amended by adding at the end the following:
‘‘§ 527. Debtor’s bill of rights
‘‘(a) A debt relief counselling agency shall—
‘‘(1) no later than three business days after the
first date on which a debt relief counselling agency
provides any bankruptcy assistance services to an as-
sisted person, execute a written contract with the as-
sisted person specifying clearly and conspicuously the
services the agency will provide the assisted person
and the basis on which fees or charges will be made
for such services and the terms of payment, and give
the assisted person a copy of the fully executed and
completed contract in a form the person can keep;
‘‘(2) disclose in any advertisement of bankruptcy
assistance services or of the benefits of bankruptcy di-
rected to the general public (whether in general
media, seminars or specific mailings, telephonic or
electronic messages or otherwise) that the services or
benefits are with respect to proceedings under this
title, clearly and conspicuously using the following
statement: ‘We are a debt relief counselling agency.
We help people file Bankruptcy petitions to obtain re-
lief under the Bankruptcy Code.’ or a substantially
similar statement. An advertisement shall be of bank-
ruptcy assistance services if it describes or offers
bankruptcy assistance with a chapter 13 plan, re-
gardless of whether chapter 13 is specifically men-
tioned, including such statements as ‘federally super-
vised repayment plan’ or ‘Federal debt restructuring
help’ or other similar statements which would lead a
reasonable consumer to believe that help with debts
was being offered when in fact in most cases the help
available is bankruptcy assistance with a chapter 13
plan; and
‘‘(3) if an advertisement directed to the general
public indicates that the debt relief counselling agency
provides assistance with respect to credit defaults,
mortgage foreclosures, lease eviction proceedings, ex-
cessive debt, debt collection pressure, or inability to
pay any consumer debt, disclose conspicuously in that
advertisement that the assistance is with respect to or
may involve proceedings under this title, using the
following statement: ‘‘We are a debt relief counselling
agency. We help people file Bankruptcy petitions to
obtain relief under the Bankruptcy Code.’’ or a sub-
stantially similar statement.
‘‘(b) A debt relief counselling agency shall not—
‘‘(1) fail to perform any service which the debt
relief counseling agency has told the assisted person or
prospective assisted person the agency would provide
that person in connection with the preparation for or
activities during a proceeding under this title;
‘‘(2) make any statement, or counsel or advise
any assisted person to make any statement in any
document filed in a proceeding under this title, which
is untrue or misleading or which upon the exercise of
reasonable care, should be known by the debt relief
counselling agency to be untrue or misleading;
‘‘(3) misrepresent to any assisted person or pro-
spective assisted person, directly or indirectly, affirm-
atively or by material omission, what services the
debt relief counselling agency can reasonably expect to
provide that person, or the benefits an assisted person
may obtain or the difficulties the person may experi-
ence if the person seeks relief in a proceeding pursu-
ant to this title; or
‘‘(4) advise an assisted person or prospective as-
sisted person to incur more debt in contemplation of
that person filing a proceeding under this title or in
order to pay an attorney or bankruptcy petition pre-
parer fee or charge for services performed as part of
preparing for or representing a debtor in a proceed-
ing under this title.’’.
(b) CONFORMING AMENDMENT.—The table of section
for chapter 5 of title 11, United States Code, as amended
by section 114, is amended by inserting after the item relat-
ing to section 526, the following:
‘‘527. Debtor’s bill of rights.’’.
SEC. 116. ENFORCEMENT.
(a) ENFORCEMENT.—Subchapter II of chapter 5 of
title 11, United States Code, as amended by sections 114
and 115, is amended by adding at the end the following:
‘‘§ 528. Debt relief counselling agency enforcement
‘‘(a) ASSISTED
PERSON
WAIVERS
INVALID.—Any
waiver by any assisted person of any protection or right
provided by or under section 526 or 527 of this title shall
be void and may not be enforced by any Federal or State
court or any other person.
‘‘(b) NONCOMPLIANCE.—
‘‘(1) Any contract between a debt relief counsel-
ling agency and an assisted person for bankruptcy as-
sistance which does not comply with the requirements
of section 526 or 527 of this title shall be treated as
void and may not be enforced by any Federal or State
court or by any other person.
‘‘(2) Any debt relief counselling agency which
has been found, after notice and hearing, to have—
‘‘(A) failed to comply with any provision of
section 526 or 527 with respect to a bankruptcy
case or related proceeding of an assisted person;
‘‘(B) provided bankruptcy assistance to an
assisted person in a case or related proceeding
which is dismissed or converted in lieu of dismis-
sal under section 707 of this title or because of
a failure to file bankruptcy papers, including
papers specified in section 521 of this title; or
‘‘(C) 
negligently 
or 
intentionally 
dis-
regarded the requirements of this title or the Fed-
eral Rules of Bankruptcy Procedure applicable
to such debt relief counselling agency shall be lia-
ble to the assisted person in the amount of any
fees and charges in connection with providing
bankruptcy assistance to such person which the
debt relief counselling agency has already been
paid on account of that proceeding and if the
case has not been closed, the court may in addi-
tion require the debt relief counselling agency to
continue to provide bankruptcy assistance serv-
ices in the pending case to the assisted person
without further fee or charge or upon such other
terms as the court may order.
‘‘(3) In addition to such other remedies as are
provided under State law, whenever the chief law en-
forcement officer of a State, or an official or agency
designated by a State, has reason to believe that any
person has violated or is violating section 526 or 527
of this title, the State—
‘‘(A) may bring an action to enjoin such
violation;
‘‘(B) may bring an action on behalf of its
residents to recover the actual damages of as-
sisted persons arising from such violation, in-
cluding any liability under paragraph (2); and
‘‘(C) in the case of any successful action
under subparagraph (A) or (B), shall be award-
ed the costs of the action and reasonable attorney
fees as determined by the court.
‘‘(4) The United States District Court for any
district located in the State shall have concurrent ju-
risdiction of any action under subparagraph (A) or
(B) of paragraph (3).
‘‘(c) RELATION TO STATE LAW.—This section and sec-
tions 526 and 527 shall not annul, alter, affect or exempt
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 ex-
tent of the inconsistency.’’.
(b) CONFORMING AMENDMENT.—The table of section
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.’’.
SEC. 117. SENSE OF THE CONGRESS.
It is the sense of the Congress that States should de-
velop curricula relating to the subject of personal finance,
designed for use in elementary and secondary schools.
SEC. 118. CHARITABLE CONTRIBUTIONS.
(a) DEFINITIONS.—Section 548(d) of title 11, United
States Code, is amended by adding at the end the following:
‘‘(3) In this section, the term ‘charitable contribution’
means a charitable contribution as defined in section 170(c)
of the Internal Revenue Code of 1986, if such contribution—
‘‘(A) is made by a natural person; and
‘‘(B) consists of—
‘‘(i) a financial instrument (as defined in
section 731(c)(2)(C) of the Internal Revenue
Code of 1986); or
‘‘(ii) cash.
‘‘(4) In this section, the term ‘qualified religious or
charitable entity or organization’ means—
‘‘(A) an entity described in section 170(c)(1) of
the Internal Revenue Code of 1986; or
‘‘(B) an entity or organization described in sec-
tion 170(c)(2) of the Internal Revenue Code of 1986.’’.
(b) TREATMENT OF PREPETITION QUALIFIED CHARI-
TABLE CONTRIBUTIONS.
(1) IN
GENERAL.—Section 548(a) of title 11,
United States Code, is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(B) by striking ‘‘(1) made’’ and inserting
‘‘(A) made’’;
(C) by striking ‘‘(2)(A)’’ and inserting
‘‘(B)(i)’’;
(D) by striking ‘‘(B)(i)’’ and inserting
‘‘(ii)(I)’’;
(E) by striking ‘‘(ii) was’’ and inserting
‘‘(II) was’’;
(F) by striking ‘‘(iii)’’ and inserting
‘‘(III)’’; and
(G) by adding at the end the following:
‘‘(2) A transfer of a charitable contribution to a quali-
fied religious or charitable entity or organization shall not
be considered to be a transfer covered under paragraph
(1)(B) in any case in which—
‘‘(A) the amount of such contribution does not
exceed 15 percent of the gross annual income of the
debtor for the year in which the transfer of the con-
tribution is made; or
‘‘(B) the contribution made by a debtor exceeded
the percentage amount of gross annual income speci-
fied in subparagraph (A), if the transfer was consist-
ent with the practices of the debtor in making chari-
table contributions.’’.