‘‘(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 state-
ment is timely filed with the trustee, the trustee shall give
notice to creditors 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 a semicolon; 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 period’ shall be 5 years if the debt-
or’s total current monthly income is 75 percent
of the national median family income for a fam-
ily of equal size or, in the case of a household
of one person, 75 percent of the national me-
dian household income for one earner, or more
as of the date of confirmation of the plan and
shall be 3 years if the debtor’s total current
monthly income is less than 75 percent of the
national median family income for a family of
equal size or, in the case of a household of one
person, and less than 75 percent of the national
median household income for one earner, as of
the date of confirmation of the plan; and
‘‘(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
monthly net income during the plan increases
or decreases as reasonably determined by the
trustee, subject to section 111 of this title, no
less frequently than as of each anniversary of
the confirmation of the plan based on monthly
net income as of 45 days before such anniver-
sary.’’; 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
debtor’s financial situation demonstrates such inap-
propriate use.
‘‘(3) In the case of a motion filed by a party in inter-
est other than the trustee or United States trustee under
paragraph (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 mo-
tion 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.’’.
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 con-
sumer 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 pursu-
ant to section 586 of title 28 and that contains the follow-
ing:
‘‘(A) A brief description of chapters 7, 11, 12
and 13 of this title and the general purpose, bene-
fits, 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)
with an office located in the district in which the pe-
tition is filed.
‘‘(2) Any such nonprofit debt counselling service that
registers with the clerk of the bankruptcy court on or be-
fore December 10 of the preceding year shall be included
in such list unless the chief bankruptcy judge of the dis-
trict, 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.’’.
(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 request 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 Di-
rector of the Executive Office for United States Trustees
(in this section referred to as the ‘‘Director’’) shall, in con-
sultation with trustees who are appointed under chapter
13 of title 11 of the United States Code and who operate
financial management education programs for debtors, de-
velop a financial management training curriculum and
materials that can be used to educate individual 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 effective-