457
‘‘(A) by prorating such amount over the
remaining duration of the plan; and
‘‘(B) by monthly payments not to exceed
the greater of—
‘‘(i) $25; or
‘‘(ii) the amount payable to unsecured
nonpriority creditors, as provided by the
plan, multiplied by 5 percent, and the re-
sult divided by the number of months in
the plan.’’; and
(2) by adding at the end the following:
‘‘(d) Notwithstanding any other provision of this
title—
‘‘(1) compensation referred to in subsection
(b)(3) is payable and may be collected by the trustee
under that paragraph, even if such amount has been
discharged in a prior case under this title; and
‘‘(2) such compensation is payable in a case
under this chapter only to the extent permitted by
subsection (b)(3).’’.
SEC. 1225. AMENDMENT TO SECTION 362 OF TITLE 11,
UNITED STATES CODE.
Section 362(b)(18) of title 11, United States Code,
is amended to read as follows:
458
‘‘(18) under subsection (a) of the creation or
perfection of a statutory lien for an ad valorem
property tax, or a special tax or special assessment
on real property whether or not ad valorem, imposed
by a governmental unit, if such tax or assessment
comes due after the date of the filing of the peti-
tion;’’.
SEC. 1226. JUDICIAL EDUCATION.
The Director of the Federal Judicial Center, in con-
sultation with the Director of the Executive Office for
United States Trustees, shall develop materials and con-
duct such training as may be useful to courts in imple-
menting this Act and the amendments made by this Act,
including the requirements relating to the means test
under section 707(b), and reaffirmation agreements under
section 524, of title 11 of the United States Code, as
amended by this Act.
SEC. 1227. RECLAMATION.
(a) RIGHTS AND POWERS OF THE TRUSTEE.—Sec-
tion 546(c) of title 11, United States Code, is amended
to read as follows:
‘‘(c)(1) Except as provided in subsection (d) of this
section and in section 507(c), and subject to the prior
rights of a holder of a security interest in such goods or
the proceeds thereof, the rights and powers of the trustee
459
under sections 544(a), 545, 547, and 549 are subject to
the right of a seller of goods that has sold goods to the
debtor, in the ordinary course of such seller’s business,
to reclaim such goods if the debtor has received such goods
while insolvent, within 45 days before the date of the com-
mencement of a case under this title, but such seller may
not reclaim such goods unless such seller demands in writ-
ing reclamation of such goods—
‘‘(A) not later than 45 days after the date of
receipt of such goods by the debtor; or
‘‘(B) not later than 20 days after the date of
commencement of the case, if the 45-day period ex-
pires after the commencement of the case.
‘‘(2) If a seller of goods fails to provide notice in the
manner described in paragraph (1), the seller still may
assert the rights contained in section 503(b)(9).’’.
(b) ADMINISTRATIVE EXPENSES.—Section 503(b) of
title 11, United States Code, as amended by sections 445
and 1103, is amended by adding at the end the following:
‘‘(9) the value of any goods received by the
debtor within 20 days before the date of commence-
ment of a case under this title in which the goods
have been sold to the debtor in the ordinary course
of such debtor’s business.’’.
460
SEC. 1228. PROVIDING REQUESTED TAX DOCUMENTS TO
THE COURT.
(a) CHAPTER 7 CASES.—The court shall not grant
a discharge in the case of an individual who is a debtor
in a case under chapter 7 of title 11, United States Code,
unless requested tax documents have been provided to the
court.
(b) CHAPTER 11 AND CHAPTER 13 CASES.—The
court shall not confirm a plan of reorganization in the case
of an individual under chapter 11 or 13 of title 11, United
States Code, unless requested tax documents have been
filed with the court.
(c) DOCUMENT RETENTION.—The court shall de-
stroy documents submitted in support of a bankruptcy
claim not sooner than 3 years after the date of the conclu-
sion of a case filed by an individual under chapter 7, 11,
or 13 of title 11, United States Code. In the event of a
pending audit or enforcement action, the court may extend
the time for destruction of such requested tax documents.
SEC. 1229. ENCOURAGING CREDITWORTHINESS.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that—
(1) certain lenders may sometimes offer credit
to consumers indiscriminately, without taking steps
to ensure that consumers are capable of repaying
the resulting debt, and in a manner which may en-
461
courage certain consumers to accumulate additional
debt; and
(2) resulting consumer debt may increasingly be
a major contributing factor to consumer insolvency.
(b) STUDY REQUIRED.—The Board of Governors of
the Federal Reserve System (hereafter in this section re-
ferred to as the ‘‘Board’’) shall conduct a study of—
(1) consumer credit industry practices of solic-
iting and extending credit—
(A) indiscriminately;
(B) without taking steps to ensure that
consumers are capable of repaying the resulting
debt; and
(C) in a manner that encourages con-
sumers to accumulate additional debt; and
(2) the effects of such practices on consumer
debt and insolvency.
(c) REPORT AND REGULATIONS.—Not later than 12
months after the date of enactment of this Act, the
Board—
(1) shall make public a report on its findings
with respect to the indiscriminate solicitation and
extension of credit by the credit industry;
(2) may issue regulations that would require
additional disclosures to consumers; and
462
(3) may take any other actions, consistent with
its existing statutory authority, that the Board finds
necessary to ensure responsible industrywide prac-
tices and to prevent resulting consumer debt and in-
solvency.
SEC. 1230. PROPERTY NO LONGER SUBJECT TO REDEMP-
TION.
Section 541(b) of title 11, United States Code, as
amended by sections 225 and 323, is amended by adding
after paragraph (7), as added by section 323, the fol-
lowing:
‘‘(8) subject to subchapter III of chapter 5, any
interest of the debtor in property where the debtor
pledged or sold tangible personal property (other
than securities or written or printed evidences of in-
debtedness or title) as collateral for a loan or ad-
vance of money given by a person licensed under law
to make such loans or advances, where—
‘‘(A) the tangible personal property is in
the possession of the pledgee or transferee;
‘‘(B) the debtor has no obligation to repay
the money, redeem the collateral, or buy back
the property at a stipulated price; and
‘‘(C) neither the debtor nor the trustee
have exercised any right to redeem provided
463
under the contract or State law, in a timely
manner as provided under State law and sec-
tion 108(b); or’’.
SEC. 1231. TRUSTEES.
(a) SUSPENSION
AND
TERMINATION
OF
PANEL
TRUSTEES AND STANDING TRUSTEES.—Section 586(d) of
title 28, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(2) by adding at the end the following:
‘‘(2) A trustee whose appointment under subsection
(a)(1) or under subsection (b) is terminated or who ceases
to be assigned to cases filed under title 11, United States
Code, may obtain judicial review of the final agency deci-
sion by commencing an action in the district court of the
United States for the district for which the panel to which
the trustee is appointed under subsection (a)(1), or in the
district court of the United States for the district in which
the trustee is appointed under subsection (b) resides, after
first exhausting all available administrative remedies,
which if the trustee so elects, shall also include an admin-
istrative hearing on the record. Unless the trustee elects
to have an administrative hearing on the record, the trust-
ee shall be deemed to have exhausted all administrative
remedies for purposes of this paragraph if the agency fails
to make a final agency decision within 90 days after the
464
trustee requests administrative remedies. The Attorney
General shall prescribe procedures to implement this para-
graph. The decision of the agency shall be affirmed by
the district court unless it is unreasonable and without
cause based on the administrative record before the agen-
cy.’’.
(b) EXPENSES OF STANDING TRUSTEES.—Section
586(e) of title 28, United States Code, is amended by add-
ing at the end the following:
‘‘(3) After first exhausting all available administra-
tive remedies, an individual appointed under subsection
(b) may obtain judicial review of final agency action to
deny a claim of actual, necessary expenses under this sub-
section by commencing an action in the district court of
the United States for the district where the individual re-
sides. The decision of the agency shall be affirmed by the
district court unless it is unreasonable and without cause
based upon the administrative record before the agency.
‘‘(4) The Attorney General shall prescribe procedures
to implement this subsection.’’.
SEC. 1232. BANKRUPTCY FORMS.
Section 2075 of title 28, United States Code, is
amended by adding at the end the following:
‘‘The bankruptcy rules promulgated under this sec-
tion shall prescribe a form for the statement required
465
under section 707(b)(2)(C) of title 11 and may provide
general rules on the content of such statement.’’.
SEC. 1233. DIRECT APPEALS OF BANKRUPTCY MATTERS TO
COURTS OF APPEALS.
(a) APPEALS.—Section 158 of title 28, United States
Code, is amended—
(1) in subsection (c)(1), by striking ‘‘Subject to
subsection (b),’’ and inserting ‘‘Subject to sub-
sections (b) and (d)(2),’’; and
(2) in subsection (d)—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(B) by adding at the end the following:
‘‘(2)(A) The appropriate court of appeals shall have
jurisdiction of appeals described in the first sentence of
subsection (a) if the bankruptcy court, the district court,
or the bankruptcy appellate panel involved, acting on its
own motion or on the request of a party to the judgment,
order, or decree described in such first sentence, or all the
appellants and appellees (if any) acting jointly, certify
that—
‘‘(i) the judgment, order, or decree involves a
question of law as to which there is no controlling
decision of the court of appeals for the circuit or of
the Supreme Court of the United States, or involves
a matter of public importance;
466
‘‘(ii) the judgment, order, or decree involves a
question of law requiring resolution of conflicting de-
cisions; or
‘‘(iii) an immediate appeal from the judgment,
order, or decree may materially advance the progress
of the case or proceeding in which the appeal is
taken;
and if the court of appeals authorizes the direct appeal
of the judgment, order, or decree.
‘‘(B) If the bankruptcy court, the district court, or
the bankruptcy appellate panel—
‘‘(i) on its own motion or on the request of a
party, determines that a circumstance specified in
clause (i), (ii), or (iii) of subparagraph (A) exists; or
‘‘(ii) receives a request made by a majority of
the appellants and a majority of appellees (if any)
to make the certification described in subparagraph
(A);
then the bankruptcy court, the district court, or the bank-
ruptcy appellate panel shall make the certification de-
scribed in subparagraph (A).
‘‘(C) The parties may supplement the certification
with a short statement of the basis for the certification.
‘‘(D) An appeal under this paragraph does not stay
any proceeding of the bankruptcy court, the district court,
467
or the bankruptcy appellate panel from which the appeal
is taken, unless the respective bankruptcy court, district
court, or bankruptcy appellate panel, or the court of ap-
peals in which the appeal in pending, issues a stay of such
proceeding pending the appeal.
‘‘(E) Any request under subparagraph (B) for certifi-
cation shall be made not later than 60 days after the entry
of the judgment, order, or decree.’’.
(b) PROCEDURAL RULES.—
(1) TEMPORARY APPLICATION.—A provision of
this subsection shall apply to appeals under section
158(d)(2) of title 28, United States Code, until a
rule of practice and procedure relating to such provi-
sion and such appeals is promulgated or amended
under chapter 131 of such title.
(2) CERTIFICATION.—A district court, a bank-
ruptcy court, or a bankruptcy appellate panel may
make a certification under section 158(d)(2) of title
28, United States Code, only with respect to matters
pending in the respective bankruptcy court, district
court, or bankruptcy appellate panel.
(3) PROCEDURE.—Subject to any other provi-
sion of this subsection, an appeal authorized by the
court of appeals under section 158(d)(2)(A) of title
28, United States Code, shall be taken in the man-
468
ner prescribed in subdivisions (a)(1), (b), (c), and
(d) of rule 5 of the Federal Rules of Appellate Pro-
cedure. For purposes of subdivision (a)(1) of rule
5—
(A) a reference in such subdivision to a
district court shall be deemed to include a ref-
erence to a bankruptcy court and a bankruptcy
appellate panel, as appropriate; and
(B) a reference in such subdivision to the
parties requesting permission to appeal to be
served with the petition shall be deemed to in-
clude a reference to the parties to the judg-
ment, order, or decree from which the appeal is
taken.
(4) FILING OF PETITION WITH ATTACHMENT.—
A petition requesting permission to appeal, that is
based on a certification made under subparagraph
(A) or (B) of section 158(d)(2) shall—
(A) be filed with the circuit clerk not later
than 10 days after the certification is entered
on the docket of the bankruptcy court, the dis-
trict court, or the bankruptcy appellate panel
from which the appeal is taken; and
(B) have attached a copy of such certifi-
cation.
469
(5) REFERENCES IN RULE 5.—For purposes of
rule 
of 
the 
Federal 
Rules 
of 
Appellate
Procedure—
(A) a reference in such rule to a district
court shall be deemed to include a reference to
a bankruptcy court and to a bankruptcy appel-
late panel; and
(B) a reference in such rule to a district
clerk shall be deemed to include a reference to
a clerk of a bankruptcy court and to a clerk of
a bankruptcy appellate panel.
(6) APPLICATION
OF
RULES.—The Federal
Rules of Appellate Procedure shall apply in the
courts of appeals with respect to appeals authorized
under section 158(d)(2)(A), to the extent relevant
and as if such appeals were taken from final judg-
ments, orders, or decrees of the district courts or
bankruptcy appellate panels exercising appellate ju-
risdiction under subsection (a) or (b) of section 158
of title 28, United States Code.
SEC. 1234. INVOLUNTARY CASES.
(a) AMENDMENTS.—Section 303 of title 11, United
States Code, is amended—
(1) in subsection (b)(1), by—
470
(A) inserting ‘‘as to liability or amount’’
after ‘‘bona fide dispute’’; and
(B) striking ‘‘if such claims’’ and inserting
‘‘if such noncontingent, undisputed claims’’;
and
(2) in subsection (h)(1), by inserting ‘‘as to li-
ability or amount’’ before the semicolon at the end.
(b) EFFECTIVE DATE; APPLICATION
OF AMEND-
MENTS.—This section and the amendments made by this
section shall take effect on the date of the enactment of
this Act and shall apply with respect to cases commenced
under title 11 of the United States Code before, on, and
after such date.
SEC. 1235. FEDERAL ELECTION LAW FINES AND PENALTIES
AS NONDISCHARGEABLE DEBT.
Section 523(a) of title 11, United States Code, as
amended by section 314, is amended by inserting after
paragraph (14A) the following:
‘‘(14B) incurred to pay fines or penalties im-
posed under Federal election law;’’.
471
TITLE XIII—CONSUMER CREDIT
DISCLOSURE
SEC. 1301. ENHANCED DISCLOSURES UNDER AN OPEN END
CREDIT PLAN.
(a) MINIMUM
PAYMENT
DISCLOSURES.—Section
127(b) of the Truth in Lending Act (15 U.S.C. 1637(b))
is amended by adding at the end the following:
‘‘(11)(A) In the case of an open end credit plan
that requires a minimum monthly payment of not
more than 4 percent of the balance on which finance
charges are accruing, the following statement, lo-
cated on the front of the billing statement, disclosed
clearly and conspicuously: ‘Minimum Payment
Warning: Making only the minimum payment will
increase the interest you pay and the time it takes
to repay your balance. For example, making only the
typical 2% minimum monthly payment on a balance
of $1,000 at an interest rate of 17% would take 88
months to repay the balance in full. For an estimate
of the time it would take to repay your balance,
making only minimum payments, call this toll-free
number: llllll.’ (the blank space to be
filled in by the creditor).
‘‘(B) In the case of an open end credit plan
that requires a minimum monthly payment of more
472
than 4 percent of the balance on which finance
charges are accruing, the following statement, in a
prominent location on the front of the billing state-
ment, disclosed clearly and conspicuously: ‘Minimum
Payment Warning: Making only the required min-
imum payment will increase the interest you pay and
the time it takes to repay your balance. Making a
typical 5% minimum monthly payment on a balance
of $300 at an interest rate of 17% would take 24
months to repay the balance in full. For an estimate
of the time it would take to repay your balance,
making only minimum monthly payments, call this
toll-free number: llllll.’ (the blank space to
be filled in by the creditor).
‘‘(C) Notwithstanding subparagraphs (A) and
(B), in the case of a creditor with respect to which
compliance with this title is enforced by the Federal
Trade Commission, the following statement, in a
prominent location on the front of the billing state-
ment, disclosed clearly and conspicuously: ‘Minimum
Payment Warning: Making only the required min-
imum payment will increase the interest you pay and
the time it takes to repay your balance. For exam-
ple, making only the typical 5% minimum monthly
payment on a balance of $300 at an interest rate of
473
17% would take 24 months to repay the balance in
full. For an estimate of the time it would take to
repay your balance, making only minimum monthly
payments, call the Federal Trade Commission at
this toll-free number: llllll.’ (the blank
space to be filled in by the creditor). A creditor who
is subject to this subparagraph shall not be subject
to subparagraph (A) or (B).
‘‘(D) Notwithstanding subparagraph (A), (B),
or (C), in complying with any such subparagraph, a
creditor may substitute an example based on an in-
terest rate that is greater than 17 percent. Any
creditor that is subject to subparagraph (B) may
elect to provide the disclosure required under sub-
paragraph (A) in lieu of the disclosure required
under subparagraph (B).
‘‘(E) The Board shall, by rule, periodically re-
calculate, as necessary, the interest rate and repay-
ment period under subparagraphs (A), (B), and (C).
‘‘(F)(i) The toll-free telephone number disclosed
by a creditor or the Federal Trade Commission
under subparagraph (A), (B), or (G), as appro-
priate, may be a toll-free telephone number estab-
lished and maintained by the creditor or the Federal
Trade Commission, as appropriate, or may be a toll-
474
free telephone number established and maintained
by a third party for use by the creditor or multiple
creditors or the Federal Trade Commission, as ap-
propriate. The toll-free telephone number may con-
nect consumers to an automated device through
which consumers may obtain information described
in subparagraph (A), (B), or (C), by inputting infor-
mation using a touch-tone telephone or similar de-
vice, if consumers whose telephones are not equipped
to use such automated device are provided the op-
portunity to be connected to an individual from
whom the information described in subparagraph
(A), (B), or (C), as applicable, may be obtained. A
person that receives a request for information de-
scribed in subparagraph (A), (B), or (C) from an ob-
ligor through the toll-free telephone number dis-
closed under subparagraph (A), (B), or (C), as ap-
plicable, shall disclose in response to such request
only the information set forth in the table promul-
gated by the Board under subparagraph (H)(i).
‘‘(ii)(I) The Board shall establish and maintain
for a period not to exceed 24 months following the
effective date of the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2003, a toll-free
telephone number, or provide a toll-free telephone
475
number established and maintained by a third party,
for use by creditors that are depository institutions
(as defined in section 3 of the Federal Deposit In-
surance Act), including a Federal credit union or
State credit union (as defined in section 101 of the
Federal Credit Union Act), with total assets not ex-
ceeding $250,000,000. The toll-free telephone num-
ber may connect consumers to an automated device
through which consumers may obtain information
described in subparagraph (A) or (B), as applicable,
by inputting information using a touch-tone tele-
phone or similar device, if consumers whose tele-
phones are not equipped to use such automated de-
vice are provided the opportunity to be connected to
an individual from whom the information described
in subparagraph (A) or (B), as applicable, may be
obtained. A person that receives a request for infor-
mation described in subparagraph (A) or (B) from
an obligor through the toll-free telephone number
disclosed under subparagraph (A) or (B), as applica-
ble, shall disclose in response to such request only
the information set forth in the table promulgated
by the Board under subparagraph (H)(i). The dollar
amount contained in this subclause shall be adjusted
476
according to an indexing mechanism established by
the Board.
‘‘(II) Not later than 6 months prior to the expi-
ration of the 24-month period referenced in sub-
clause (I), the Board shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committee on Financial Services of the
House of Representatives a report on the program
described in subclause (I).
‘‘(G) The Federal Trade Commission shall es-
tablish and maintain a toll-free number for the pur-
pose of providing to consumers the information re-
quired to be disclosed under subparagraph (C).
‘‘(H) The Board shall—
‘‘(i) establish a detailed table illustrating
the approximate number of months that it
would take to repay an outstanding balance if
a consumer pays only the required minimum
monthly payments and if no other advances are
made, which table shall clearly present stand-
ardized information to be used to disclose the
information required to be disclosed under sub-
paragraph (A), (B), or (C), as applicable;
‘‘(ii) establish the table required under
clause (i) by assuming—