‘‘(27A) ‘household goods’ includes tangible per-
sonal property normally found in or around a home,
but does not include motorized vehicles used for
transportation purposes;’’.
(d) TREATMENT OF LEASES IN CHAPTER 7 CASES.—
Section 365 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(p) If a chapter 7 trustee does not assume a lease
of personal property or of residential property under which
an individual debtor is the lessee, the lease shall be deemed
abandoned to the debtor. Except to the extent provided
by section 525, the effect of the abandonment shall be the
following:
‘‘(1) The debtor shall have the right to contin-
ued possession of the leased property, subject to any
grounds for termination of the lease under applica-
ble nonbankruptcy law, including nonpayment of
prepetition rent, other than a provision in the lease
purporting to modify, condition, or terminate the
contract because of bankruptcy, insolvency, the debt-
or’s financial condition, the commencement of a case
or the grant of a discharge under this title, or the
appointment of a receiver or custodian under non-
bankruptcy law.
‘‘(2) The lessor may be granted relief from the
stay of section 362(a) if the lessor has grounds for
termination of the lease as provided in paragraph
(1).
‘‘(3) Any right of the debtor under nonbank-
ruptcy to cure a default on the lease or to renew the
lease shall not be affected by the filing of the case
under this title.
‘‘(4) The estate shall be relieved of any liability
for breach of the lease occurring after abandon-
ment.’’.
(e) CLARIFYING THE ABILITY TO AVOID CERTAIN
LIENS.—Section 522(f)(2)(C) is amended by inserting ‘‘to
the extent such judgment is a lien on property subject to
the mortgage’’ before the period at the end.
(f) CLARIFYING ISSUE PRECLUSION AND VICARIOUS
LIABILITY FOR NONDISCHARGEABILITY CASES.—Section
523 of title 11, United States Code, is amended by adding
at the end the following:
‘‘(f) The issue preclusive effect in a proceeding aris-
ing under this section of a prior judgment shall be deter-
mined according to Federal law. A prior default judgment
shall not have issue-preclusive effect under this section.
‘‘(g) A debt shall not be nondischargeable under this
section based upon the conduct of an individual other than
the debtor.’’.
(h) LIEN AVOIDANCE.—Section 522(f)(1) of title 11,
United States Code, is amended by striking ‘‘the fixing
of’’.
(i) CHAPTER 13 PLAN CONFIRMATION CURES DE-
FAULTS.—Section 362(a)(1) of title 11, United States
Code, is amended by inserting ‘‘, rescheduling,’’ after
‘‘commencement’’.
(j) ATTORNEYS FEES REVIEW
AND APPROVAL.—
Section 330(a) of title 11, United States Code, is amended
by inserting ‘‘, or to the debtor’s attorney’’ after ‘‘1103’’.
(k) 
RETIREMENT
LOAN
REPAYMENT.—Section
1325(b)(2) of title 11, United States Code, is amended
by striking ‘‘For’’ and all that follows through ‘‘ex-
pended—’’, and inserting the following: ‘‘For purposes of
this subsection, ‘disposable income’ means income which
is received by the debtor (not including income that is
withheld from the debtor’s wages for the repayment of
loans from Internal Revenue Code-qualified retirement ac-
counts) and which is not reasonably necessary to be ex-
pended—’’.
(l) PROCEDURE FOR CLAIMING EXEMPTIONS.—The
last sentence of section 522(l) is amended to read as fol-
lows:
‘‘The debtor’s entire interest in each item of property
claimed as exempt on such list is exempt unless—
‘‘(1) the list specifies that there is nonexempt
equity in the property; or
‘‘(2) a party in interest objects.’’.
(m) EXEMPTION RIGHTS.—Section 522(b)(2) of title
11, United States Code, is amended by adding at the end
the following:
‘‘(C) To the extent that nonbankruptcy law
providing for an exemption requires that such
exemption is available only if there is a pending
execution on property, such exemption may be
claimed under this section regardless of whether
there is a money judgment against the debtor
or whether a money judgment is being enforced
by execution sale or any other procedure.’’.
SEC. 15. APPLICABILITY OF AMENDMENTS.
The amendments made by this Act shall not apply
with respect to cases commenced under title 11 of the
United States Code before the date of the enactment of
this Act.
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