In the Senate of the United States,
February 2, 2000.
Resolved, That the bill from the House of Representa-
tives (H.R. 833) entitled ‘‘An Act to amend title 11 of the
United States Code, and for other purposes.’’, do pass with
the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Bankruptcy Reform Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—NEEDS-BASED BANKRUPTCY
Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Findings and study.
Sec. 104. Notice of alternatives.
Sec. 105. Debtor financial management training test program.
Sec. 106. Credit counseling.
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TITLE II—ENHANCED CONSUMER PROTECTION
Subtitle A—Penalties for Abusive Creditor Practices
Sec. 201. Promotion of alternative dispute resolution.
Sec. 202. Effect of discharge.
Sec. 203. Discouraging abuse of reaffirmation practices.
Subtitle B—Priority Child Support
Sec. 211. Definition of domestic support obligation.
Sec. 212. Priorities for claims for domestic support obligations.
Sec. 213. Requirements to obtain confirmation and discharge in cases involving
domestic support obligations.
Sec. 214. Exceptions to automatic stay in domestic support obligation pro-
ceedings.
Sec. 215. Nondischargeability of certain debts for alimony, maintenance, and
support.
Sec. 216. Continued liability of property.
Sec. 217. Protection of domestic support claims against preferential transfer mo-
tions.
Sec. 218. Disposable income defined.
Sec. 219. Collection of child support.
Sec. 220. Nondischargeability of certain educational benefits and loans.
Subtitle C—Other Consumer Protections
Sec. 221. Amendments to discourage abusive bankruptcy filings.
Sec. 222. Sense of Congress.
Sec. 223. Additional amendments to title 11, United States Code.
Sec. 224. Protection of retirement savings in bankruptcy.
Sec. 225. Protection of education savings.
TITLE III—DISCOURAGING BANKRUPTCY ABUSE
Sec. 301. Reinforcement of the fresh start.
Sec. 302. Discouraging bad faith repeat filings.
Sec. 303. Curbing abusive filings.
Sec. 304. Debtor retention of personal property security.
Sec. 305. Relief from the automatic stay when the debtor does not complete in-
tended surrender of consumer debt collateral.
Sec. 306. Giving secured creditors fair treatment in chapter 13.
Sec. 307. Exemptions.
Sec. 308. Residency requirement for homestead exemption.
Sec. 309. Protecting secured creditors in chapter 13 cases.
Sec. 310. Limitation on luxury goods.
Sec. 311. Automatic stay.
Sec. 312. Extension of period between bankruptcy discharges.
Sec. 313. Definition of household goods and antiques.
Sec. 314. Debt incurred to pay nondischargeable debts.
Sec. 315. Giving creditors fair notice in chapters 7 and 13 cases.
Sec. 316. Dismissal for failure to timely file schedules or provide required infor-
mation.
Sec. 317. Adequate time to prepare for hearing on confirmation of the plan.
Sec. 318. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 319. Sense of the Congress regarding expansion of rule 9011 of the Federal
Rules of Bankruptcy Procedure.
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Sec. 320. Prompt relief from stay in individual cases.
Sec. 321. Chapter 11 cases filed by individuals.
Sec. 322. Excluding employee benefit plan participant contributions and other
property from the estate.
Sec. 323. Clarification of postpetition wages and benefits.
Sec. 324. Limitation.
Sec. 325. Exclusive jurisdiction in matters involving bankruptcy professionals.
Sec. 326. United States trustee program filing fee increase.
Sec. 327. Compensation of trustees in certain cases under chapter 7 of title 11,
United States Code.
Sec. 328. Nondischargeability of debts incurred through the commission of vio-
lence at clinics.
TITLE IV—GENERAL AND SMALL BUSINESS BANKRUPTCY
PROVISIONS
Subtitle A—General Business Bankruptcy Provisions
Sec. 401. Rolling stock equipment.
Sec. 402. Adequate protection for investors.
Sec. 403. Meetings of creditors and equity security holders.
Sec. 404. Protection of refinance of security interest.
Sec. 405. Executory contracts and unexpired leases.
Sec. 406. Creditors and equity security holders committees.
Sec. 407. Amendment to section 546 of title 11, United States Code.
Sec. 408. Limitation.
Sec. 409. Amendment to section 330(a) of title 11, United States Code.
Sec. 410. Postpetition disclosure and solicitation.
Sec. 411. Preferences.
Sec. 412. Venue of certain proceedings.
Sec. 413. Period for filing plan under chapter 11.
Sec. 414. Fees arising from certain ownership interests.
Sec. 415. Creditor representation at first meeting of creditors.
Sec. 416. Definition of disinterested person.
Sec. 417. Factors for compensation of professional persons.
Sec. 418. Appointment of elected trustee.
Sec. 419. Utility service.
Sec. 420. Bankruptcy fees.
Sec. 421. More complete information regarding assets of the estate.
Subtitle B—Small Business Bankruptcy Provisions
Sec. 431. Flexible rules for disclosure statement and plan.
Sec. 432. Definitions; effect of discharge.
Sec. 433. Standard form disclosure statement and plan.
Sec. 434. Uniform national reporting requirements.
Sec. 435. Uniform reporting rules and forms for small business cases.
Sec. 436. Duties in small business cases.
Sec. 437. Plan filing and confirmation deadlines.
Sec. 438. Plan confirmation deadline.
Sec. 439. Duties of the United States trustee.
Sec. 440. Scheduling conferences.
Sec. 441. Serial filer provisions.
Sec. 442. Expanded grounds for dismissal or conversion and appointment of
trustee.
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Sec. 443. Study of operation of title 11, United States Code, with respect to small
businesses.
Sec. 444. Payment of interest.
Sec. 445. Technical correction.
TITLE V—MUNICIPAL BANKRUPTCY PROVISIONS
Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.
TITLE VI—IMPROVED BANKRUPTCY STATISTICS AND DATA
Sec. 601. Audit procedures.
Sec. 602. Improved bankruptcy statistics.
Sec. 603. Uniform rules for the collection of bankruptcy data.
Sec. 604. Sense of Congress regarding availability of bankruptcy data.
TITLE VII—BANKRUPTCY TAX PROVISIONS
Sec. 701. Treatment of certain liens.
Sec. 702. Treatment of fuel tax claims.
Sec. 703. Notice of request for a determination of taxes.
Sec. 704. Rate of interest on tax claims.
Sec. 705. Priority of tax claims.
Sec. 706. Priority property taxes incurred.
Sec. 707. No discharge of fraudulent taxes in chapter 13.
Sec. 708. No discharge of fraudulent taxes in chapter 11.
Sec. 709. Stay of tax proceedings limited to prepetition taxes.
Sec. 710. Periodic payment of taxes in chapter 11 cases.
Sec. 711. Avoidance of statutory tax liens prohibited.
Sec. 712. Payment of taxes in the conduct of business.
Sec. 713. Tardily filed priority tax claims.
Sec. 714. Income tax returns prepared by tax authorities.
Sec. 715. Discharge of the estate’s liability for unpaid taxes.
Sec. 716. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 717. Standards for tax disclosure.
Sec. 718. Setoff of tax refunds.
Sec. 719. Special provisions related to the treatment of State and local taxes.
Sec. 720. Dismissal for failure to timely file tax returns.
TITLE VIII—ANCILLARY AND OTHER CROSS-BORDER CASES
Sec. 801. Amendment to add chapter 15 to title 11, United States Code.
Sec. 802. Amendments to other chapters in title 11, United States Code.
Sec. 803. Claims relating to insurance deposits in cases ancillary to foreign pro-
ceedings.
TITLE IX—FINANCIAL CONTRACT PROVISIONS
Sec. 901. Bankruptcy Code amendments.
Sec. 902. Damage measure.
Sec. 903. Asset-backed securitizations.
Sec. 904. Effective date; application of amendments.
TITLE X—PROTECTION OF FAMILY FARMERS AND FAMILY
FISHERMEN
Sec. 1001. Reenactment of chapter 12.
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Sec. 1002. Debt limit increase.
Sec. 1003. Elimination of requirement that family farmer and spouse receive over
50 percent of income from farming operation in year prior to
bankruptcy.
Sec. 1004. Certain claims owed to governmental units.
Sec. 1005. Prohibition of retroactive assessment of disposable income.
Sec. 1006. Family fishermen.
TITLE XI—HEALTH CARE AND EMPLOYEE BENEFITS
Sec. 1101. Definitions.
Sec. 1102. Disposal of patient records.
Sec. 1103. Administrative expense claim for costs of closing a health care busi-
ness.
Sec. 1104. Appointment of ombudsman to act as patient advocate.
Sec. 1105. Debtor in possession; duty of trustee to transfer patients.
Sec. 1106. Establishment of policy and protocols relating to bankruptcies of
health care businesses.
Sec. 1107. Exclusion from program participation not subject to automatic stay.
TITLE XII—AMENDMENTS TO FAIR LABOR STANDARDS ACT OF 1938
Sec. 1201. Minimum wage.
Sec. 1202. Regular rate for overtime purposes.
TITLE XIII—TAX RELIEF
Sec. 1300. Amendment of 1986 code.
Subtitle A—Small Business Tax Relief
Sec. 1301. Increase in expensing limitation to $30,000.
Sec. 1302. Repeal of temporary unemployment tax.
Sec. 1303. Full deduction of health insurance costs for self-employed individuals.
Sec. 1304. Permanent extension of work opportunity tax credit.
Sec. 1305. Small businesses allowed increased deduction for meal and entertain-
ment expenses.
Subtitle B—Deduction for Health and Long-Term Care Insurance
Sec. 1311. Deduction for health and long-term care insurance costs of individuals
not participating in employer-subsidized health plans.
Subtitle C—Pension Tax Relief
PART I—EXPANDING COVERAGE
Sec. 1321. Increase in benefit and contribution limits.
Sec. 1322. Plan loans for subchapter s owners, partners, and sole proprietors.
Sec. 1323. Modification of top-heavy rules.
Sec. 1324. Elective deferrals not taken into account for purposes of deduction lim-
its.
Sec. 1325. Repeal of coordination requirements for deferred compensation plans
of State and local governments and tax-exempt organizations.
Sec. 1326. Elimination of user fee for requests to IRS regarding pension plans.
Sec. 1327. Deduction limits.
Sec. 1328. Option to treat elective deferrals as after-tax contributions.
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PART II—ENHANCING FAIRNESS FOR WOMEN
Sec. 1331. Catchup contributions for individuals age 50 or over.
Sec. 1332. Equitable treatment for contributions of employees to defined contribu-
tion plans.
Sec. 1333. Faster vesting of certain employer matching contributions.
Sec. 1334. Simplify and update the minimum distribution rules.
Sec. 1335. Clarification of tax treatment of division of section 457 plan benefits
upon divorce.
Sec. 1336. Modification of safe harbor relief for hardship withdrawals from cash
or deferred arrangements.
PART III—INCREASING PORTABILITY FOR PARTICIPANTS
Sec. 1341. Rollovers allowed among various types of plans.
Sec. 1342. Rollovers of IRAs into workplace retirement plans.
Sec. 1343. Rollovers of after-tax contributions.
Sec. 1344. Hardship exception to 60-day rule.
Sec. 1345. Treatment of forms of distribution.
Sec. 1346. Rationalization of restrictions on distributions.
Sec. 1347. Purchase of service credit in governmental defined benefit plans.
Sec. 1348. Employers may disregard rollovers for purposes of cash-out amounts.
Sec. 1349. Minimum distribution and inclusion requirements for section 457
plans.
PART IV—STRENGTHENING PENSION SECURITY AND ENFORCEMENT
Sec. 1351. Repeal of 150 percent of current liability funding limit.
Sec. 1352. Maximum contribution deduction rules modified and applied to all de-
fined benefit plans.
Sec. 1353. Excise tax relief for sound pension funding.
Sec. 1354. Excise tax on failure to provide notice by defined benefit plans signifi-
cantly reducing future benefit accruals.
Sec. 1355. Protection of investment of employee contributions to 401(K) plans.
Sec. 1356. Treatment of multiemployer plans under section 415.
PART V—REDUCING REGULATORY BURDENS
Sec. 1361. Modification of timing of plan valuations.
Sec. 1362. ESOP dividends may be reinvested without loss of dividend deduction.
Sec. 1363. Repeal of transition rule relating to certain highly compensated em-
ployees.
Sec. 1364. Employees of tax-exempt entities.
Sec. 1365. Clarification of treatment of employer-provided retirement advice.
Sec. 1366. Reporting simplification.
Sec. 1367. Improvement of employee plans compliance resolution system.
Sec. 1368. Modification of exclusion for employer-provided transit passes.
Sec. 1369. Repeal of the multiple use test.
Sec. 1370. Flexibility in nondiscrimination, coverage, and line of business rules.
Sec. 1371. Extension to international organizations of moratorium on applica-
tion of certain nondiscrimination rules applicable to State and
local plans.
PART VI—PLAN AMENDMENTS
Sec. 1381. Provisions relating to plan amendments.
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Subtitle D—Revenue Provisions
Sec. 1391. Modification of installment method and repeal of installment method
for accrual method taxpayers.
Sec. 1392. Modification of estimated tax rules for closely held real estate invest-
ment trusts.
TITLE XIV—TECHNICAL AMENDMENTS
Sec. 1401. Definitions.
Sec. 1402. Adjustment of dollar amounts.
Sec. 1403. Extension of time.
Sec. 1404. Technical amendments.
Sec. 1405. Penalty for persons who negligently or fraudulently prepare bank-
ruptcy petitions.
Sec. 1406. Limitation on compensation of professional persons.
Sec. 1407. Effect of conversion.
Sec. 1408. Allowance of administrative expenses.
Sec. 1409. Exceptions to discharge.
Sec. 1410. Effect of discharge.
Sec. 1411. Protection against discriminatory treatment.
Sec. 1412. Property of the estate.
Sec. 1413. Preferences.
Sec. 1414. Postpetition transactions.
Sec. 1415. Disposition of property of the estate.
Sec. 1416. General provisions.
Sec. 1417. Abandonment of railroad line.
Sec. 1418. Contents of plan.
Sec. 1419. Discharge under chapter 12.
Sec. 1420. Bankruptcy cases and proceedings.
Sec. 1421. Knowing disregard of bankruptcy law or rule.
Sec. 1422. Transfers made by nonprofit charitable corporations.
Sec. 1423. Protection of valid purchase money security interests.
Sec. 1424. Extensions.
Sec. 1425. Bankruptcy judgeships.
Sec. 1426. Family fishermen.
Sec. 1427. Compensating trustees.
Sec. 1428. Amendment to section 362 of title 11, United States Code.
Sec. 1429. Provision of electronic FTC pamphlet with electronic credit card ap-
plications and solicitations.
Sec. 1430. No bankruptcy for insolvent political committees.
Sec. 1431. Federal election law fines and penalties as nondischargeable debt.
Sec. 1432. Prohibition on certain retroactive finance charges.
Sec. 1433. Sense of Senate concerning credit worthiness.
Sec. 1434. Judicial education.
Sec. 1435. United States trustee program filing fee increase.
Sec. 1436. Providing requested tax documents to the court.
Sec. 1437. Definition of family farmer.
Sec. 1438. Encouraging creditworthiness.
Sec. 1439. Property no longer subject to redemption.
Sec. 1440. Availability of toll-free access to information.
TITLE XV—GENERAL EFFECTIVE DATE; APPLICATION OF
AMENDMENTS
Sec. 1501. Effective date; application of amendments.
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TITLE XVI—FINANCIAL INSTITUTIONS INSOLVENCY IMPROVEMENT
Sec. 1601. Short title.
Sec. 1602. Treatment of certain agreements by conservators or receivers of insured
depository institutions.
Sec. 1603. Authority of the corporation with respect to failed and failing institu-
tions.
Sec. 1604. Amendments relating to transfers of qualified financial contracts.
Sec. 1605. Amendments relating to disaffirmance or repudiation of qualified fi-
nancial contracts.
Sec. 1606. Clarifying amendment relating to master agreements.
Sec. 1607. Federal Deposit Insurance Corporation Improvement Act of 1991.
Sec. 1608. Recordkeeping requirements.
Sec. 1609. Exemptions from contemporaneous execution requirement.
Sec. 1610. SIPC stay.
Sec. 1611. Federal Reserve collateral requirements.
Sec. 1612. Effective date; application of amendments.
TITLE XVII—METHAMPHETAMINE AND OTHER CONTROLLED
SUBSTANCES
Sec. 1701. Short title.
Subtitle A—Methamphetamine Production, Trafficking, and Abuse
CHAPTER 1—CRIMINAL PENALTIES
Sec. 1711. Enhanced punishment of amphetamine laboratory operations.
Sec. 1712. Enhanced punishment of amphetamine or methamphetamine labora-
tory operators.
Sec. 1713. Mandatory restitution for violations of Controlled Substances Act and
Controlled Substances Import and Export Act relating to am-
phetamine and methamphetamine.
Sec. 1714. Methamphetamine paraphernalia.
CHAPTER 2—ENHANCED LAW ENFORCEMENT
Sec. 1721. Environmental hazards associated with illegal manufacture of amphet-
amine and methamphetamine.
Sec. 1722. Reduction in retail sales transaction threshold for non-safe harbor
products containing pseudoephedrine or phenlypropanolamine.
Sec. 1723. Training for Drug Enforcement Administration and State and local
law enforcement personnel relating to clandestine laboratories.
Sec. 1724. Combating methamphetamine and amphetamine in high intensity
drug trafficking areas.
Sec. 1725. Combating amphetamine and methamphetamine manufacturing and
trafficking.
CHAPTER 3—ABUSE PREVENTION AND TREATMENT
Sec. 1731. Expansion of methamphetamine research.
Sec. 1732. Methamphetamine and amphetamine treatment initiative by Center
for Substance Abuse Treatment.
Sec. 1733. Expansion of methamphetamine abuse prevention efforts.
Sec. 1734. Study of methamphetamine treatment.
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CHAPTER 4—REPORTS
Sec. 1741. Reports on consumption of methamphetamine and other illicit drugs
in rural areas, metropolitan areas, and consolidated metropoli-
tan areas.
Sec. 1742. Report on diversion of ordinary over-the-counter pseudoephedrine and
phenylpropanolamine products.
Subtitle B—Controlled Substances Generally
CHAPTER 1—CRIMINAL MATTERS
Sec. 1751. Enhanced punishment for trafficking in list I chemicals.
Sec. 1752. Mail order requirements.
Sec. 1753. Increased penalties for distributing drugs to minors.
Sec. 1754. Increased penalty for drug trafficking in or near a school or other pro-
tected location.
Sec. 1755. Advertisments for drug paraphernalia and schedule I controlled sub-
stances.
Sec. 1756. Theft and transportation of anhydrous ammonia for purposes of illicit
production of controlled substances.
Sec. 1757. Criminal prohibition on distribution of certain information relating
to the manufacture of controlled substances.
CHAPTER 2—OTHER MATTERS
Sec. 1761. Waiver authority for physicians who dispense or prescribe certain nar-
cotic drugs for maintenance treatment or detoxification treat-
ment.
Subtitle C—Cocaine Powder
Sec. 1771. Short title.
Sec. 1772. Sentencing for violations involving cocaine powder.
Subtitle D—Education Matters
Sec. 1781. Safe schools.
Sec. 1782. Student safety and family school choice.
Sec. 1783. Transfer of revenues.
Subtitle E—Miscellaneous
Sec. 1791. Notice; clarification.
Sec. 1792. Domestic terrorism assessment and recovery.
Sec. 1793. Antidrug messages on Federal Government Internet websites.
Sec. 1794. State schools.
Sec. 1795. Student safety and family school choice.
Sec. 1796. Transfer of revenues.
Sec. 1797. Increased penalties for distributing drugs to minors.
Sec. 1798. Increased penalty for drug trafficking in or near a school or other pro-
tected location.
Sec. 1799. Severability.
TITLE XVIII—PROTECTION FROM THE IMPACT OF BANKRUPTCY OF
CERTAIN ELECTRIC UTILITIES
Sec. 1801. Short title.
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Sec. 1802. Findings and purposes.
Sec. 1803. Unlawful contract and amended contract.
Sec. 1804. Exclusive enforcement.
TITLE XIX—CONSUMER CREDIT DISCLOSURE
Sec. 1901. Enhanced disclosures under an open end credit plan.
Sec. 1902. Enhanced disclosure for credit extensions secured by a dwelling.
Sec. 1903. Disclosures related to ‘‘introductory rates’’.
Sec. 1904. Internet-based credit card solicitations.
Sec. 1905. Disclosures related to late payment deadlines and penalties.
Sec. 1906. Prohibition on certain actions for failure to incur finance charges.
Sec. 1907. Dual use debit card.
Sec. 1908. Study of bankruptcy impact of credit extended to dependent students.
TITLE I—NEEDS-BASED
BANKRUPTCY
SEC. 101. CONVERSION.
Section 706(c) of title 11, United States Code, is
amended by inserting ‘‘or consents to’’ after ‘‘requests’’.
SEC. 102. DISMISSAL OR CONVERSION.
(a) IN GENERAL.—Section 707 of title 11, United
States Code, is amended—
(1) by striking the section heading and inserting
the following:
‘‘§ 707. Dismissal of a case or conversion to a case
under chapter 11 or 13’’;
and
(2) in subsection (b)—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(B) in paragraph (1), as redesignated by
subparagraph (A) of this paragraph—
(i) in the first sentence—
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(I) by striking ‘‘but not at the re-
quest or suggestion’’ and inserting ‘‘,
panel trustee or’’;
(II) by inserting ‘‘, or, with the
debtor’s consent, convert such a case to
a case under chapter 11 or 13 of this
title,’’ after ‘‘consumer debts’’; and
(III) 
by 
striking 
‘‘substantial
abuse’’ and inserting ‘‘abuse’’; and
(ii) by striking the next to last sen-
tence; and
(C) by adding at the end the following:
‘‘(2)(A)(i) In considering under paragraph (1) whether
the granting of relief would be an abuse of the provisions
of this chapter, the court shall presume abuse exists if the
debtor’s current monthly income reduced by the amounts
determined under clauses (ii), (iii), and (iv), and multi-
plied by 60 is not less than the lesser of—
‘‘(I) 25 percent of the debtor’s nonpriority unse-
cured claims in the case; or
‘‘(II) $15,000.
‘‘(ii)(I) The debtor’s monthly expenses shall be the ap-
plicable monthly (excluding payments for debts) expenses
under standards issued by the Internal Revenue Service for
the area in which the debtor resides, as in effect on the date
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of the entry of the order for relief, for the debtor, the depend-
ents of the debtor, and the spouse of the debtor in a joint
case, if the spouse is not otherwise a dependent. In addition,
the debtor’s monthly expenses shall include the debtor’s rea-
sonably necessary expenses incurred to maintain the safety
of the debtor and the family of the debtor from family vio-
lence as identified under section 309 of the Family Violence
Prevention and Services Act (42 U.S.C. 10408), or other
applicable Federal law. The expenses included in the debt-
or’s monthly expenses described in the preceding sentence
shall be kept confidential by the court.
‘‘(II) In addition, the debtor’s monthly expenses may
include, if applicable, the continuation of actual expenses
paid by the debtor that are reasonable and necessary for
care and support of an elderly, chronically ill, or disabled
household member or member of the debtor’s immediate
family (including parents, grandparents, and siblings of the
debtor, the dependents of the debtor, and the spouse of the
debtor in a joint case) who is not a dependent and who
is unable to pay for such reasonable and necessary expenses.
‘‘(iii) The debtor’s average monthly payments on ac-
count of secured debts shall be calculated as—
‘‘(I) the sum of—
‘‘(aa) the total of all amounts scheduled as
contractually due to secured creditors in each
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‘‘(II) provide—
‘‘(aa) documentation for such expenses; and
‘‘(bb) a detailed explanation of the special
circumstances that make such expenses necessary
and reasonable.
‘‘(ii) The debtor, and the attorney for the debtor if the
debtor has an attorney, shall attest under oath to the accu-
racy of any information provided to demonstrate that addi-
tional expenses or adjustments to income are required.
‘‘(iii) The presumption of abuse may be rebutted if the
additional expenses or adjustments to income referred to in
clause (i) cause the product of the debtor’s current monthly
income reduced by the amounts determined under clauses
(ii), (iii), and (iv) of subparagraph (A) multiplied by 60
to be less than the lesser of—
‘‘(I) 25 percent of the debtor’s nonpriority unse-
cured claims; or
‘‘(II) $15,000.
‘‘(C)(i) As part of the schedule of current income and
expenditures required under section 521, the debtor shall in-
clude a statement of the debtor’s current monthly income,
and the calculations that determine whether a presumption
arises under subparagraph (A)(i), that shows how each such
amount is calculated.
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‘‘(ii) The Supreme Court shall promulgate rules under
section 2075 of title 28, that prescribe a form for a state-
ment under clause (i) and may provide general rules on
the content of the statement.
‘‘(3) In considering under paragraph (1) whether the
granting of relief would be an abuse of the provisions of
this chapter in a case in which the presumption in subpara-
graph (A)(i) of such paragraph does not apply or has been
rebutted, the court shall consider—
‘‘(A) whether the debtor filed the petition in bad
faith; or
‘‘(B) the totality of the circumstances (including
whether the debtor seeks to reject a personal services
contract and the financial need for such rejection as
sought by the debtor) of the debtor’s financial situa-
tion demonstrates abuse.’’.
(b) DEFINITION.—Title 11, United States Code, is
amended—
(1) in section 101, by inserting after paragraph
(10) the following:
‘‘(10A) ‘current monthly income’—
‘‘(A) means the average monthly income
from all sources which the debtor, or in a joint
case, the debtor and the debtor’s spouse, receive
without regard to whether the income is taxable
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income, derived during the 180-day period pre-
ceding the date of determination; and
‘‘(B) includes any amount paid by any en-
tity 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), but
excludes benefits received under the Social Secu-
rity Act;’’; and
(2) in section 704—
(A) by inserting ‘‘(a)’’ before ‘‘The trustee
shall—’’; and
(B) by adding at the end the following:
‘‘(b)(1) With respect to an individual debtor under this
chapter—
‘‘(A) the United States trustee or bankruptcy ad-
ministrator shall review all materials filed by the
debtor and, not later than 10 days before the first
meeting of creditors, file with the court a statement
as to whether the debtor’s case would be presumed to
be an abuse under section 707(b); and
‘‘(B) not later than 5 days after receiving a
statement under subparagraph (A), the court shall
provide a copy of the statement to all creditors.
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‘‘(2) The United States trustee or bankruptcy adminis-
trator shall not later than 30 days after receiving a state-
ment filed under paragraph (1) file a motion to dismiss
or convert under section 707(b), or file a statement setting
forth the reasons the United States trustee or bankruptcy
administrator does not believe that such a motion would
be appropriate, if based on the filing of such statement with
the court, the United States trustee or bankruptcy adminis-
trator determines that the debtor’s case should be presumed
to be an abuse under section 707(b) and the product of the
debtor’s current monthly income, multiplied by 12 is not
less than—
‘‘(A) the highest national or applicable State me-
dian family income reported for a family of equal or
lesser size, whichever is greater; or
‘‘(B) in the case of a household of 1 person, the
national or applicable State median household income
for 1 earner, whichever is greater.
‘‘(3) In any case in which a motion to dismiss or con-
vert, or a statement is required to be filed by this subsection,
the United States trustee or bankruptcy administrator may
decline to file a motion to dismiss or convert pursuant to
section 704(b)(2) or if the product of the debtor’s current
monthly income multiplied by 12—
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‘‘(A)(i) exceeds 100 percent, but does not exceed
150 percent of the national or applicable State me-
dian household income reported for a household of
equal size, whichever is greater; or
‘‘(ii) in the case of a household of 1 person, ex-
ceeds 100 percent but does not exceed 150 percent of
the national or applicable State median household in-
come reported for 1 earner, whichever is greater; and
‘‘(B) the product of the debtor’s current monthly
income (reduced by the amounts determined under
section 707(b)(2)(A)(ii)) (except for the amount cal-
culated under the other necessary expenses standard
issued by the Internal Revenue Service and section
707(b)(2)(A) (iii) and (iv)) multiplied by 60 is less
than the greater of—
‘‘(i) 25 percent of the debtor’s nonpriority
unsecured claims in the case; or
‘‘(ii) $15,000.
‘‘(4)(A) The court shall order the counsel for the debtor
to reimburse the panel trustee for all reasonable costs in
prosecuting a motion brought under section 707(b), includ-
ing reasonable attorneys’ fees, if—
‘‘(i) a panel trustee appointed under section
586(a)(1) of title 28 brings a motion for dismissal or
conversion under this subsection; and
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‘‘(ii) the court—
‘‘(I) grants that motion; and
‘‘(II) finds that the action of the counsel for
the debtor in filing under this chapter was frivo-
lous.
‘‘(B) If the court finds that the attorney for the debtor
violated Rule 9011, at a minimum, the court shall order—
‘‘(i) the assessment of an appropriate civil pen-
alty against the counsel for the debtor; and
‘‘(ii) the payment of the civil penalty to the
panel trustee or the United States trustee.
‘‘(C) In the case of a petition referred to in subpara-
graph (B), the signature of an attorney shall constitute a
certificate that the attorney has—
‘‘(i) performed a reasonable investigation into
the circumstances that gave rise to the petition; and
‘‘(ii) determined that the petition—
‘‘(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 abuse under paragraph (1).
‘‘(5)(A) Except as provided in subparagraph (B) and
subject to paragraph (6), the court may award a debtor all
reasonable costs in contesting a motion brought by a party
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in interest (other than a panel trustee or United States
trustee) under this subsection (including reasonable attor-
neys’ fees) if—
‘‘(i) the court does not grant the motion; and
‘‘(ii) the court finds that—
‘‘(I) the position of the party that brought
the motion was not substantially justified; or
‘‘(II) the party brought the motion solely for
the purpose of coercing a debtor into waiving a
right guaranteed to the debtor under this title.
‘‘(B) A party in interest that has a claim of an aggre-
gate amount less than $1,000 shall not be subject to sub-
paragraph (A).
‘‘(6)(A) Only the judge, United States trustee, bank-
ruptcy administrator, or panel trustee may bring a motion
under section 707(b), if the current monthly income of the
debtor, or in a joint case, the debtor and the debtor’s spouse,
as of the date of the order for relief, when multiplied by
12, is equal to or less than—
‘‘(i) the national or applicable State median
family income reported for a family of equal or lesser
size, whichever is greater; or
‘‘(ii) in the case of a household of 1 person, the
national or applicable State median household income
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last reported by the Bureau of the Census for 1 earn-
er, whichever is greater.
‘‘(B) Notwithstanding subparagraph (A), the national
or applicable State median family income for a family of
more than 4 individuals shall be the national or applicable
State median family income last reported by the Bureau
of the Census for a family of 4 individuals, whichever is
greater, plus $583 for each additional member of that fam-
ily.’’.
(c) NONLIMITATION
OF INFORMATION.—Nothing in
this title shall limit the ability of a creditor to provide in-
formation to a judge, United States trustee, bankruptcy ad-
ministrator or panel trustee.
(d) DISMISSAL FOR CERTAIN CRIMES.—Section 707 of
title 11, United States Code, as amended by subsection (a)
of this section, is amended by adding at the end the fol-
lowing:
‘‘(c)(1) In this subsection—
‘‘(A) the term ‘crime of violence’ has the meaning
given that term in section 16 of title 18; and
‘‘(B) the term ‘drug trafficking crime’ has the
meaning given that term in section 924(c)(2) of title
18.
‘‘(2) Except as provided in paragraph (3), after notice
and a hearing, the court, on a motion by the victim of a
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crime of violence or a drug trafficking crime, or at the re-
quest of a party in interest, shall dismiss a voluntary case
filed by an individual debtor under this chapter if that in-
dividual was convicted of that crime.
‘‘(3) The court may not dismiss a case under para-
graph (2) if the debtor establishes by a preponderance of
the evidence that the filing of a case under this chapter is
necessary to satisfy a claim for a domestic support obliga-
tion.’’.
(e) CLERICAL AMENDMENT.—The table of sections for
chapter 7 of title 11, United States Code, is amended by
striking the item relating to section 707 and inserting the
following:
‘‘707. Dismissal of a case or conversion to a case under chapter 11 or 13.’’.
SEC. 103. FINDINGS AND STUDY.
(a) FINDINGS.—Congress finds that the Secretary of
the Treasury has the inherent authority to alter the Internal
Revenue Service standards established to set guidelines for
repayment plans as needed to accommodate their use under
section 707(b) of title 11, United States Code.
(b) STUDY.—
(1) IN GENERAL.—Not later than 3 years after
the date of enactment of this Act, the Secretary of the
Treasury, in consultation with the Director of the Ex-
ecutive Office of United States Trustees, shall submit
a report to the Committee on the Judiciary of the
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Senate and the Committee on the Judiciary of the
House of Representatives containing the findings of
the Secretary concerning the utilization of Internal
Revenue Service standards for determining—
(A) the current monthly expenses of a debtor
under section 707(b) of title 11, United States
Code; and
(B) the impact that the application of those
standards has had on debtors and on the bank-
ruptcy courts.
(2) RECOMMENDATION.—The report under para-
graph (1) may include recommendations for amend-
ments to title 11, United States Code, that are con-
sistent with the findings of the Secretary of the Treas-
ury under paragraph (1).
SEC. 104. NOTICE OF ALTERNATIVES.
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, that individual shall be given or obtain (as required
in section 521(a)(1), as part of the certification process
under subchapter I of chapter 5) a written notice prescribed
by the United States trustee for the district in which the
petition is filed under section 586 of title 28.
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‘‘(2) The notice shall contain the following:
‘‘(A) A brief description of chapters 7, 11, 12,
and 13 and the general purpose, benefits, and costs of
proceeding under each of those chapters.
‘‘(B) A brief description of services that may be
available to that individual from a nonprofit budget
and credit counseling agency that is approved by the
United States trustee for that district.’’.
SEC. 105. 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—
(1) 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, United States Code, and who operate financial
management education programs for debtors; and
(2) develop a financial management training
curriculum and materials that may be used to edu-
cate individual debtors concerning how to better man-
age their finances.
(b) TEST.—
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(1) IN GENERAL.—The Director shall select 3 ju-
dicial districts of the United States in which to test
the effectiveness of the financial management training
curriculum and materials developed under subsection
(a).
(2) AVAILABILITY OF CURRICULUM AND MATE-
RIALS.—For a 1-year period beginning not later than
270 days after the date of enactment of this Act, the
curriculum and materials referred to in paragraph
(1) shall be made available by the Director, directly
or indirectly, on request to individual debtors in cases
filed during that 1-year period under chapter 7 or 13
of title 11, United States Code.
(c) EVALUATION.—
(1) IN GENERAL.—During the 1-year period re-
ferred to in subsection (b), the Director shall evaluate
the effectiveness of—
(A) the financial management training cur-
riculum and materials developed under sub-
section (a); and
(B) a sample of existing consumer edu-
cation programs such as those described in the
report of the National Bankruptcy Review Com-
mission issued on October 20, 1997, that are rep-
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resentative of consumer education programs car-
ried out by—
(i) the credit industry;
(ii) trustees serving under chapter 13
of title 11, United States Code; and
(iii) consumer counseling groups.
(2) REPORT.—Not later than 3 months after con-
cluding the evaluation under paragraph (1), the Di-
rector 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
committees of Congress, containing the findings of the
Director regarding the effectiveness of such cur-
riculum, such materials, and such programs.
SEC. 106. CREDIT COUNSELING.
(a) WHO MAY BE A DEBTOR.—Section 109 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(h)(1) Subject to paragraphs (2) and (3), and not-
withstanding any other provision of this section, an indi-
vidual may not be a debtor under this title unless that indi-
vidual has, during the 180-day period preceding the date
of filing of the petition of that individual, received from
an approved nonprofit budget and credit counseling agency
described in section 111(a) an individual or group briefing
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(including a briefing conducted by telephone or on the
Internet) that outlined the opportunities for available credit
counseling and assisted that individual in performing a re-
lated budget analysis.
‘‘(2)(A) Paragraph (1) shall not apply with respect to
a debtor who resides in a district for which the United
States trustee or bankruptcy administrator of the bank-
ruptcy court of that district determines that the approved
nonprofit budget and credit counseling agency for that dis-
trict is not reasonably able to provide adequate services to
the additional individuals who would otherwise seek credit
counseling from that agency by reason of the requirements
of paragraph (1).
‘‘(B) Each United States trustee or bankruptcy admin-
istrator that makes a determination described in subpara-
graph (A) shall review that determination not later than
1 year after the date of that determination, and not less
frequently than every year thereafter. Notwithstanding the
preceding sentence, a nonprofit budget and credit coun-
seling service may be disapproved by the United States
trustee or bankruptcy administrator at any time.
‘‘(3)(A) Subject to subparagraph (B), the requirements
of paragraph (1) shall not apply with respect to a debtor
who submits to the court a certification that—
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‘‘(i) describes exigent circumstances that merit a
waiver of the requirements of paragraph (1);
‘‘(ii) states that the debtor requested credit coun-
seling services from an approved nonprofit budget
and credit counseling agency, but was unable to ob-
tain the services referred to in paragraph (1) during
the 5-day period beginning on the date on which the
debtor made that request; and
‘‘(iii) is satisfactory to the court.
‘‘(B) With respect to a debtor, an exemption under sub-
paragraph (A) shall cease to apply to that debtor on the
date on which the debtor meets the requirements of para-
graph (1), but in no case may the exemption apply to that
debtor after the date that is 30 days after the debtor files
a petition, except that the court, for cause, may order an
additional 15 days.’’.
(b) CHAPTER 7 DISCHARGE.—Section 727(a) of title
11, United States Code, is amended—
(1) in paragraph (9), by striking ‘‘or’’ at the
end;
(2) in paragraph (10), by striking the period
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(11) after the filing of the petition, the debtor
failed to complete an instructional course concerning
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personal financial management described in section
111.’’.
(c) CHAPTER 13 DISCHARGE.—Section 1328 of title
11, United States Code, is amended by adding at the end
the following:
‘‘(g) The court shall not grant a discharge under this
section to a debtor, unless after filing a petition the debtor
has completed an instructional course concerning personal
financial management described in section 111.
‘‘(h) Subsection (g) shall not apply with respect to a
debtor who resides in a district for which the United States
trustee or bankruptcy administrator of the bankruptcy
court of that district determines that the approved instruc-
tional courses are not adequate to service the additional in-
dividuals who would be required to complete the instruc-
tional course by reason of the requirements of this section.
‘‘(i) Each United States trustee or bankruptcy admin-
istrator that makes a determination described in subsection
(h) shall review that determination not later than 1 year
after the date of that determination, and not less frequently
than every year thereafter.’’.
(d) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, is amended—
(1) by inserting ‘‘(a)’’ before ‘‘The debtor shall—
’’; and
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(2) by adding at the end the following:
‘‘(b) In addition to the requirements under subsection
(a), an individual debtor shall file with the court—
‘‘(1) a certificate from the approved nonprofit
budget and credit counseling agency that provided the
debtor services under section 109(h); and
‘‘(2) a copy of the debt repayment plan, if any,
developed under section 109(h) through the approved
nonprofit budget and credit counseling agency re-
ferred to in paragraph (1).’’.
(e) GENERAL PROVISIONS.—
(1) IN GENERAL.—Chapter 1 of title 11, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 111. Nonprofit budget and credit counseling agen-
cies; financial management instructional
courses
‘‘(a) The clerk of each district shall maintain a list
of nonprofit budget and credit counseling ageancies that
provide 1 or more programs described in section 109(h) and
a list of instructional courses concerning personal financial
management that have been approved by—
‘‘(1) the United States trustee; or
‘‘(2) the bankruptcy administrator for the dis-
trict.
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‘‘(b) For inclusion on the approved list under sub-
section (a), the United States trustee or bankruptcy admin-
istrator shall require the credit counseling service, at a
minimum—
‘‘(1) to be a nonprofit budget and credit coun-
seling agency, the majority of the board of directors
of which—
‘‘(A) are not employed by the agency; and
‘‘(B) will not directly or indirectly benefit
financially from the outcome of a credit coun-
seling session;
‘‘(2) if a fee is charged for counseling services, to
charge a reasonable fee, and to provide services with-
out regard to ability to pay the fee;
‘‘(3) to provide for safekeeping and payment of
client funds, including an annual audit of the trust
accounts and appropriate employee bonding;
‘‘(4) to provide full disclosures to clients, includ-
ing funding sources, counselor qualifications, and pos-
sible impact on credit reports;
‘‘(5) to provide adequate counseling with respect
to client credit problems that includes an analysis of
their current situation, what brought them to that fi-
nancial status, and how they can develop a plan to
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handle the problem without incurring negative amor-
tization of their debts; and
‘‘(6) to provide trained counselors who receive no
commissions or bonuses based on the counseling ses-
sion outcome.
‘‘(c)(1) No credit counseling service may provide to a
credit reporting agency information concerning whether an
individual debtor has received or sought instruction con-
cerning personal financial management from the credit
counseling service.
‘‘(2) A credit counseling service that willfully or neg-
ligently fails to comply with any requirement under this
title with respect to a debtor shall be liable for damages
in an amount equal to the sum of—
‘‘(A) any actual damages sustained by the debtor
as a result of the violation; and
‘‘(B) any court costs or reasonable attorneys’ fees
(as determined by the court) incurred in an action to
recover those damages.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 1 of title 11, United States Code, is
amended by adding at the end the following:
‘‘111. Nonprofit budget and credit counseling agencies; financial management in-
structional courses.’’.
(f) LIMITATION.—Section 362 of title 11, United States
Code, is amended by adding at the end the following:
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‘‘(i) If a case commenced under chapter 7, 11, or 13
is dismissed due to the creation of a debt repayment plan,
for purposes of subsection (c)(3), any subsequent case com-
menced by the debtor under any such chapter shall not be
presumed to be filed not in good faith.’’.
TITLE II—ENHANCED
CONSUMER PROTECTION
Subtitle A—Penalties for Abusive
Creditor Practices
SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLU-
TION.
(a) REDUCTION OF CLAIM.—Section 502 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(k)(1) The court, on the motion of the debtor and after
a hearing, may reduce a claim filed under this section based
in whole on unsecured consumer debts by not more than
20 percent of the claim, if—
‘‘(A) the claim was filed by a creditor who un-
reasonably refused to negotiate a reasonable alter-
native repayment schedule proposed by an approved
credit counseling agency acting on behalf of the debt-
or;
‘‘(B) the offer of the debtor under subparagraph
(A)—
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‘‘(i) was made at least 60 days before the
filing of the petition; and
‘‘(ii) provided for payment of at least 60
percent of the amount of the debt over a period
not to exceed the repayment period of the loan,
or a reasonable extension thereof; and
‘‘(C) no part of the debt under the alternative re-
payment schedule is nondischargeable.
‘‘(2) The debtor shall have the burden of proving, by
clear and convincing evidence, that—
‘‘(A) the creditor unreasonably refused to con-
sider the debtor’s proposal; and
‘‘(B) the proposed alternative repayment sched-
ule was made in the 60-day period specified in para-
graph (1)(B)(i).’’.
(b) LIMITATION ON AVOIDABILITY.—Section 547 of
title 11, United States Code, is amended by adding at the
end the following:
‘‘(h) The trustee may not avoid a transfer if such
transfer was made as a part of an alternative repayment
plan between the debtor and any creditor of the debtor cre-
ated by an approved credit counseling agency.’’.
SEC. 202. EFFECT OF DISCHARGE.
Section 524 of title 11, United States Code, is amended
by adding at the end the following:
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‘‘(i) The willful failure of a creditor to credit payments
received under a plan confirmed under this title (including
a plan of reorganization confirmed under chapter 11 of this
title) in the manner required by the plan (including cred-
iting the amounts required under the plan) shall constitute
a violation of an injunction under subsection (a)(2).’’.
SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION PRAC-
TICES.
(a) IN GENERAL.—Section 524 of title 11, United
States Code, as amended by section 202 of this Act, is
amended—
(1) in subsection (c) by striking paragraph (2)
and inserting the following:
‘‘(2) the debtor received the disclosures described
in subsection (i) at or before the time the debtor
signed the agreement.’’;
(2) by inserting at the end of the section the fol-
lowing:
‘‘(i)(1) The disclosures required under subsection (c)
paragraph (2) of this section shall consist of the disclosure
statement described in paragraph (3), completed as required
in that paragraph, together with the agreement, statement,
declaration, motion and order described, respectively, in
paragraphs (4) through (8) of this subsection, and shall be
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the only disclosures required in connection with the reaffir-
mation.
‘‘(2) Disclosures made under this paragraph shall be
made clearly and conspicuously and in writing. The terms
‘Amount Reaffirmed’ and ‘Annual Percentage Rate’ shall
be disclosed more conspicuously than other terms, data or
information provided in connection with this disclosure, ex-
cept that the phrases ‘Before agreeing to reaffirm a debt,
review these important disclosures’ and ‘Summary of Reaf-
firmation Agreement’ may be equally conspicuous. Disclo-
sures may be made in a different order and may use termi-
nology different from that set forth in paragraphs (2)
through (8), except that the terms ‘Amount Reaffirmed’ and
‘Annual Percentage Rate’ must be used where indicated.
‘‘(3) The disclosure statement required under this
paragraph shall consist of the following:
‘‘(A) The statement: ‘Part A: Before agreeing to
reaffirm a debt, review these important disclosures:’;
‘‘(B) Under the heading ‘Summary of Reaffir-
mation Agreement’, the statement: ‘This Summary is
made pursuant to the requirements of the Bankruptcy
Code’;
‘‘(C) The ‘Amount Reaffirmed’, using that term,
which shall be—
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‘‘(i) the total amount which the debtor
agrees to reaffirm, and
‘‘(ii) the total of any other fees or cost ac-
crued as of the date of the disclosure statement.
‘‘(D) In conjunction with the disclosure of the
‘Amount Reaffirmed’, the statements—
‘‘(i) ‘The amount of debt you have agreed to
reaffirm’; and
‘‘(ii) ‘Your credit agreement may obligate
you to pay additional amounts which may come
due after the date of this disclosure. Consult your
credit agreement.’.
‘‘(E) The ‘Annual Percentage Rate’, using that
term, which shall be disclosed as—
‘‘(i) if, at the time the petition is filed, the
debt is open end credit as defined pursuant to
the Truth in Lending Act, title 15, United States
Code, section 1601 et. seq., then—
‘‘(I) the annual percentage rate deter-
mined pursuant to title 15, United States
Code, section 1637(b) (5) and (6), as appli-
cable, as disclosed to the debtor in the most
recent periodic statement prior to the agree-
ment or, if no such periodic statement has
been provided the debtor during the prior
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six months, the annual percentage rate as it
would have been so disclosed at the time the
disclosure statement is given the debtor, or
to the extent this annual percentage rate is
not readily available or not applicable, then
‘‘(II) the simple interest rate applica-
ble to the amount reaffirmed as of the date
the disclosure statement is given to the debt-
or, or if different simple interest rates apply
to different balances, the simple interest rate
applicable to each such balance, identifying
the amount of each such balance included in
the amount reaffirmed, or
‘‘(III) if the entity making the disclo-
sure elects, to disclose the annual percentage
rate under (I) and the simple interest rate
under (II);
‘‘(ii) if, at the time the petition is filed, the
debt is closed end credit as defined pursuant to
the Truth in Lending Act, title 15, United States
Code, section 1601 et seq., then—
‘‘(I) the annual percentage rate pursu-
ant to title 15, United States Code, section
1638(a)(4) as disclosed to the debtor in the
most recent disclosure statement given the
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debtor prior to the reaffirmation agreement
with respect to the debt, or, if no such dis-
closure statement was provided the debtor,
the annual percentage rate as it would have
been so disclosed at the time the disclosure
statement is given the debtor, or to the ex-
tent this annual percentage rate is not read-
ily available or not applicable, then
‘‘(II) the simple interest rate applica-
ble to the amount reaffirmed as of the date
the disclosure statement is given the debtor,
or if different simple interest rates apply to
different balances, the simple interest rate
applicable to each such balance, identifying
the amount of such balance included in the
amount reaffirmed, or
‘‘(III) if the entity making the disclo-
sure elects, to disclose the annual percentage
rate under (I) and the simple interest rate
under (II).
‘‘(F) If the underlying debt transaction was dis-
closed as a variable rate transaction on the most re-
cent disclosure given pursuant to the Truth in Lend-
ing Act, title 15, United States Code, section 1601 et
seq., by stating ‘The interest rate on your loan may
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be a variable interest rate which changes from time
to time, so that the annual percentage rate disclosed
here may be higher or lower.’.
‘‘(G) If the debt is secured by a security interest
which has not been waived in whole or in part or de-
termined to be void by a final order of the court at
the time of the disclosure, by disclosing that a secu-
rity interest or lien in goods or property is asserted
over some or all of the obligations you are reaffirming
and listing the items and their original purchase
price that are subject to the asserted security interest,
or if not a purchase-money security interest then list-
ing by items or types and the original amount of the
loan.
‘‘(H) At the election of the creditor, a statement
of the repayment schedule using one or a combination
of the following—
‘‘(i) by making the statement: ‘Your first
payment in the amount $lll is due on
lll but the future payment amount may be
different. Consult your reaffirmation or credit
agreement, as applicable.’, and stating the
amount of the first payment and the due date of
that payment in the places provided;
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‘‘(ii) by making the statement: ‘Your pay-
ment schedule will be:’, and describing the repay-
ment schedule with the number, amount and due
dates or period of payments scheduled to repay
the obligations reaffirmed to the extent then
known by the disclosing party; or
‘‘(iii) by describing the debtor’s repayment
obligations with reasonable specificity to the ex-
tent then known by the disclosing party.
‘‘(I) The following statement: ‘Note: When this
disclosure talks about what a creditor ‘‘may’’ do, it
does not use the word ‘‘may’’ to give the creditor spe-
cific permission. The word ‘‘may’’ is used to tell you
what might occur if the law permits the creditor to
take the action. If you have questions about your reaf-
firmation or what the law requires, talk to the attor-
ney who helped you negotiate this agreement. If you
don’t have an attorney helping you, the judge will ex-
plain the effect of your reaffirmation when the reaffir-
mation hearing is held.’.
‘‘(J) The following additional statements:
‘‘ ‘Reaffirming a debt is a serious financial decision.
The law requires you to take certain steps to make sure
the decision is in your best interest. If these steps are not
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completed, the reaffirmation agreement is not effective, even
though you have signed it.
‘‘ ‘1. Read the disclosures in this Part A care-
fully. Consider the decision to reaffirm carefully.
Then, if you want to reaffirm, sign the reaffirmation
agreement in Part B (or you may use a separate
agreement you and your creditor agree on).
‘‘ ‘2. Complete and sign Part D and be sure you
can afford to make the payments you are agreeing to
make and have received a copy of the disclosure state-
ment and a completed and signed reaffirmation
agreement.
‘‘ ‘3. If you were represented by an attorney dur-
ing the negotiation of the reaffirmation agreement,
the attorney must have signed the certification in
Part C.
‘‘ ‘4. If you were not represented by an attorney
during the negotiation of the reaffirmation agreement,
you must have completed and signed Part E.
‘‘ ‘5. The original of this disclosure must be filed
with the court by you or your creditor. If a separate
reaffirmation agreement (other than the one in Part
B) has been signed, it must be attached.
‘‘ ‘6. If you were represented by an attorney dur-
ing the negotiation of the reaffirmation agreement,
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your reaffirmation agreement becomes effective upon
filing with the court unless the reaffirmation is pre-
sumed to be an undue hardship as explained in Part
D.
‘‘ ‘7. If you were not represented by an attorney
during the negotiation of the reaffirmation agreement,
it will not be effective unless the court approves it.
The court will notify you of the hearing on your reaf-
firmation agreement. You must attend this hearing in
bankruptcy court where the judge will review your
agreement. The bankruptcy court must approve the
agreement as consistent with your best interests, ex-
cept that no court approval is required if the agree-
ment is for a consumer debt secured by a mortgage,
deed of trust, security deed or other lien on your real
property, like your home.
‘‘ ‘Your right to rescind a reaffirmation. You may re-
scind (cancel) your reaffirmation at any time before the
bankruptcy court enters a discharge order or within 60 days
after the agreement is filed with the court, whichever is
longer. To rescind or cancel, you must notify the creditor
that the agreement is canceled.
‘‘ ‘What are your obligations if you reaffirm the debt?
A reaffirmed debt remains your personal legal obligation.
It is not discharged in your bankruptcy. That means that
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if you default on your reaffirmed debt after your bank-
ruptcy is over, your creditor may be able to take your prop-
erty or your wages. Otherwise, your obligations will be de-
termined by the reaffirmation agreement which may have
changed the terms of the original agreement. For example,
if you are reaffirming an open end credit agreement, the
creditor may be permitted by that agreement and/or appli-
cable law to change the terms of the agreement in the future
under certain conditions.
‘‘ ‘Are you required to enter into a reaffirmation agree-
ment by any law? No, you are not required to reaffirm a
debt by any law. Only agree to reaffirm a debt if it is in
your best interest. Be sure you can afford the payments you
agree to make.
‘‘ ‘What if your creditor has a security interest or lien?
Your bankruptcy discharge does not eliminate any lien on
your property. A ‘‘lien’’ is often referred to as a security
interest, deed of trust, mortgage or security deed. Even if
you do not reaffirm and your personal liability on the debt
is discharged, because of the lien your creditor may still
have the right to take the security property if you do not
pay the debt or default on it. If the lien is on an item of
personal property that is exempt under your State’s law
or that the trustee has abandoned, you may be able to re-
deem the item rather than reaffirm the debt. To redeem,
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you make a single payment to the creditor equal to the cur-
rent value of the security property, as agreed by the parties
or determined by the court.’.
‘‘(4) The form of reaffirmation agreement required
under this paragraph shall consist of the following:
‘‘ ‘Part B: Reaffirmation Agreement. I/we agree to re-
affirm the obligations arising under the credit agreement
described below.
‘‘ ‘Brief description of credit agreement:
‘‘ ‘Description of any changes to the credit agreement
made as part of this reaffirmation agreement:
‘‘ ‘Signature:
Date:
‘‘ ‘Borrower:
‘‘ ‘Co-borrower, if also reaffirming:
‘‘ ‘Accepted by creditor:
‘‘ ‘Date of creditor acceptance:’.
‘‘(5)(A) The declaration shall consist of the following:
‘‘ ‘Part C: Certification by Debtor’s Attorney (If Any).
‘‘ ‘I hereby certify that (1) this agreement represents
a fully informed and voluntary agreement by the debtor(s);
(2) this agreement does not impose an undue hardship on
the debtor or any dependent of the debtor; and (3) I have
fully advised the debtor of the legal effect and consequences
of this agreement and any default under this agreement.
‘‘ ‘Signature of Debtor’s Attorney:
Date:’.
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‘‘(B) In the case of reaffirmations in which a presump-
tion of undue hardship has been established, the certifi-
cation shall state that in the opinion of the attorney, the
debtor is able to make the payment.
‘‘(6) The statement in support of reaffirmation agree-
ment, which the debtor shall sign and date prior to filing
with the court, shall consist of the following:
‘‘ ‘Part D: Debtor’s Statement in Support of Reaffir-
mation Agreement.
‘‘ ‘1. I believe this agreement will not impose an undue
hardship on my dependents or me. I can afford to make
the payments on the reaffirmed debt because my monthly
income (take home pay plus any other income received) is
$lll, and my actual current monthly expenses includ-
ing monthly payments on post-bankruptcy debt and other
reaffirmation agreements total $lll, leaving $lll
to make the required payments on this reaffirmed debt. I
understand that if my income less my monthly expenses
does not leave enough to make the payments, this reaffirma-
tion agreement is presumed to be an undue hardship on
me and must be reviewed by the court. However, this pre-
sumption may be overcome if I explain to the satisfaction
of the court how I can afford to make the payments here:
lll.
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‘‘ ‘2. I received a copy of the Reaffirmation Disclosure
Statement in Part A and a completed and signed reaffirma-
tion agreement.’.
‘‘(7) The motion, which may be used if approval of
the agreement by the court is required in order for it to
be effective and shall be signed and dated by the moving
party, shall consist of the following:
‘‘ ‘Part E: Motion for Court Approval (To be completed
only where debtor is not represented by an attorney.). I
(we), the debtor, affirm the following to be true and correct:
‘‘ ‘I am not represented by an attorney in connection
with this reaffirmation agreement.
‘‘ ‘I believe this agreement is in my best interest based
on the income and expenses I have disclosed in my State-
ment in Support of this reaffirmation agreement above, and
because (provide any additional relevant reasons the court
should consider):
‘‘ ‘Therefore, I ask the court for an order approving this
reaffirmation agreement.’.
‘‘(8) The court order, which may be used to approve
a reaffirmation, shall consist of the following:
‘‘ ‘Court Order: The court grants the debtor’s motion
and approves the reaffirmation agreement described above.’.
‘‘(j) Notwithstanding any other provision of this title:
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‘‘(1) A creditor may accept payments from a
debtor before and after the filing of a reaffirmation
agreement with the court.
‘‘(2) A creditor may accept payments from a
debtor under a reaffirmation agreement which the
creditor believes in good faith to be effective.
‘‘(3) The requirements of subsections (c)(2) and
(i) shall be satisfied if disclosures required under
those subsections are given in good faith.
‘‘(k) Until 60 days after a reaffirmation agreement is
filed with the court (or such additional period as the court,
after notice and hearing and for cause, orders before the
expiration of such period), it shall be presumed that the
reaffirmation agreement is an undue hardship on the debtor
if the debtor’s monthly income less the debtor’s monthly ex-
penses as shown on the debtor’s completed and signed state-
ment in support of the reaffirmation agreement required
under subsection (i)(6) of this section is less than the sched-
uled payments on the reaffirmed debt. This presumption
must be reviewed by the court. The presumption may be
rebutted in writing by the debtor if the statement includes
an explanation which identifies additional sources of funds
to make the payments as agreed upon under the terms of
the reaffirmation agreement. If the presumption is not re-
butted to the satisfaction of the court, the court may dis-
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approve the agreement. However, no agreement shall be dis-
approved without notice and hearing to the debtor and cred-
itor and such hearing must be concluded before the entry
of the debtor’s discharge.’’.
(b) LAW ENFORCEMENT.—
(1) IN GENERAL.—Chapter 9 of title 18, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 158. Designation of United States attorneys and
agents of the Federal Bureau of Investiga-
tion to address abusive reaffirmations of
debt and materially fraudulent state-
ments in bankruptcy schedules
‘‘(a) IN GENERAL.—The Attorney General of the
United States shall designate the individuals described in
subsection (b) to have primary responsibility in carrying
out enforcement activities in addressing violations of sec-
tion 152 or 157 relating to abusive reaffirmations of debt.
In addition to addressing the violations referred to in the
preceding sentence, the individuals described under sub-
section (b) shall address violations of section 152 or 157
relating to materially fraudulent statements in bankruptcy
schedules that are intentionally false or intentionally mis-
leading.
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‘‘(b) UNITED STATES DISTRICT ATTORNEYS
AND
AGENTS OF THE FEDERAL BUREAU OF INVESTIGATION—
The individuals referred to in subsection (a) are—
‘‘(1) a United States attorney for each judicial
district of the United States; and
‘‘(2) an agent of the Federal Bureau of Inves-
tigation (within the meaning of section 3107) for each
field office of the Federal Bureau of Investigation.
‘‘(c) BANKRUPTCY
INVESTIGATIONS.—Each United
States attorney designated under this section shall have pri-
mary responsibility for carrying out the duties of a United
States attorney under section 3057.
‘‘(d) BANKRUPTCY PROCEDURES.—The bankruptcy
courts shall establish procedures for referring any case
which may contain a materially fraudulent statement in
a bankruptcy schedule to the individuals designated under
this section.’’.
(2) CLERICAL
AMENDMENT.—The analysis for
chapter 9 of title 18, United States Code, is amended
by adding at the end the following:
‘‘158. Designation of United States attorneys and agents of the Federal Bureau
of Investigation to address abusive reaffirmations of debt and
materially fraudulent statements in bankruptcy schedules.’’.
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Subtitle B—Priority Child Support
SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGA-
TION.
Section 101 of title 11, United States Code, is
amended—
(1) by striking paragraph (12A); and
(2) by inserting after paragraph (14) the fol-
lowing:
‘‘(14A) ‘domestic support obligation’ means a
debt that accrues before or after the entry of an order
for relief under this title, including interest that ac-
crues on that debt as provided under applicable non-
bankruptcy law notwithstanding any other provision
of this title, that is—
‘‘(A) owed to or recoverable by—
‘‘(i) a spouse, former spouse, or child of
the debtor or such child’s parent, legal
guardian, or responsible relative; or
‘‘(ii) a governmental unit;
‘‘(B) in the nature of alimony, mainte-
nance, or support (including assistance provided
by a governmental unit) of such spouse, former
spouse, or child of the debtor or such child’s par-
ent, without regard to whether such debt is ex-
pressly so designated;
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‘‘(C) established or subject to establishment
before or after entry of an order for relief under
this title, by reason of applicable provisions of—
‘‘(i) a separation agreement, divorce
decree, or property settlement agreement;
‘‘(ii) an order of a court of record; or
‘‘(iii) a determination made in accord-
ance with applicable nonbankruptcy law by
a governmental unit; and
‘‘(D) not assigned to a nongovernmental en-
tity, unless that obligation is assigned volun-
tarily by the spouse, former spouse, child, or par-
ent, legal guardian, or responsible relative of the
child for the purpose of collecting the debt.’’.
SEC. 212. PRIORITIES FOR CLAIMS FOR DOMESTIC SUP-
PORT OBLIGATIONS.
Section 507(a) of title 11, United States Code, is
amended—
(1) by striking paragraph (7);
(2) by redesignating paragraphs (1) through (6)
as paragraphs (2) through (7), respectively;
(3) in paragraph (2), as redesignated, by strik-
ing ‘‘First’’ and inserting ‘‘Second’’;
(4) in paragraph (3), as redesignated, by strik-
ing ‘‘Second’’ and inserting ‘‘Third’’;
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(5) in paragraph (4), as redesignated, by strik-
ing ‘‘Third’’ and inserting ‘‘Fourth’’;
(6) in paragraph (5), as redesignated, by strik-
ing ‘‘Fourth’’ and inserting ‘‘Fifth’’;
(7) in paragraph (6), as redesignated, by strik-
ing ‘‘Fifth’’ and inserting ‘‘Sixth’’;
(8) in paragraph (7), as redesignated, by strik-
ing ‘‘Sixth’’ and inserting ‘‘Seventh’’; and
(9) by inserting before paragraph (2), as redesig-
nated, the following:
‘‘(1) First:
‘‘(A) Allowed unsecured claims for domestic
support obligations that, as of the date of the fil-
ing of the petition, are owed to or recoverable by
a spouse, former spouse, or child of the debtor, or
the parent, legal guardian, or responsible relative
of such child, without regard to whether the
claim is filed by such person or is filed by a gov-
ernmental unit on behalf of that person, on the
condition that funds received under this para-
graph by a governmental unit under this title
after the date of filing of the petition shall be ap-
plied and distributed in accordance with appli-
cable nonbankruptcy law.
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‘‘(B) Subject to claims under subparagraph
(A), allowed unsecured claims for domestic sup-
port obligations that, as of the date the petition
was filed are assigned by a spouse, former
spouse, child of the debtor, or such child’s parent,
legal guardian, or responsible relative to a gov-
ernmental unit (unless such obligation is as-
signed voluntarily by the spouse, former spouse,
child, parent, legal guardian, or responsible rel-
ative of the child for the purpose of collecting the
debt) or are owed directly to or recoverable by a
government unit under applicable nonbank-
ruptcy law, on the condition that funds received
under this paragraph by a governmental unit
under this title after the date of filing of the peti-
tion be applied and distributed in accordance
with applicable nonbankruptcy law.’’.
SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMATION AND
DISCHARGE IN CASES INVOLVING DOMESTIC
SUPPORT OBLIGATIONS.
Title 11, United States Code, is amended—
(1) in section 1129(a), by adding at the end the
following:
‘‘(14) If the debtor is required by a judicial or
administrative order or statute to pay a domestic
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support obligation, the debtor has paid all amounts
payable under such order or statute for such obliga-
tion that first become payable after the date on which
the petition is filed.’’;
(2) in section 1208(c)—
(A) in paragraph (8), by striking ‘‘or’’ at
the end;
(B) in paragraph (9), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(10) failure of the debtor to pay any domestic
support obligation that first becomes payable after the
date on which the petition is filed.’’;
(3) in section 1222(a)—
(A) in paragraph (2), by striking ‘‘and’’ at
the end;
(B) in paragraph (3), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(4) notwithstanding any other provision of this
section, a plan may provide for less than full pay-
ment of all amounts owed for a claim entitled to pri-
ority under section 507(a)(1)(B) only if the plan pro-
vides that all of the debtor’s projected disposable in-
come for a 5-year period, beginning on the date that
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the first payment is due under the plan, will be ap-
plied to make payments under the plan.’’;
(4) in section 1222(b)—
(A) by redesignating paragraph (10) as
paragraph (11); and
(B) by inserting after paragraph (9) the fol-
lowing:
‘‘(10) provide for the payment of interest accru-
ing after the date of the filing of the petition on unse-
cured claims that are nondischargeable under section
1328(a), except that such interest may be paid only
to the extent that the debtor has disposable income
available to pay such interest after making provision
for full payment of all allowed claims;’’;
(5) in section 1225(a)—
(A) in paragraph (5), by striking ‘‘and’’ at
the end;
(B) in paragraph (6), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(7) if the debtor is required by a judicial or ad-
ministrative order or statute to pay a domestic sup-
port obligation, the debtor has paid all amounts pay-
able under such order for such obligation that first be-
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come payable after the date on which the petition is
filed.’’;
(6) in section 1228(a), in the matter preceding
paragraph (1), by inserting ‘‘, and in the case of a
debtor who is required by a judicial or administrative
order to pay a domestic support obligation, after such
debtor certifies that all amounts payable under such
order or statute that are due on or before the date of
the certification (including amounts due before the pe-
tition was filed, but only to the extent provided for
in the plan) have been paid’’ after ‘‘completion by the
debtor of all payments under the plan’’;
(7) in section 1307(c)—
(A) in paragraph (9), by striking ‘‘or’’ at
the end;
(B) in paragraph (10), by striking the pe-
riod at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(11) failure of the debtor to pay any domestic
support obligation that first becomes payable after the
date on which the petition is filed.’’;
(8) in section 1322(a)—
(A) in paragraph (2), by striking ‘‘and’’ at
the end;
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(B) in paragraph (3), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding in the end the following:
‘‘(4) notwithstanding any other provision of this
section, a plan may provide for less than full pay-
ment of all amounts owed for a claim entitled to pri-
ority under section 507(a)(1)(B) only if the plan pro-
vides that all of the debtor’s projected disposable in-
come for a 5-year period beginning on the date that
the first payment is due under the plan will be ap-
plied to make payments under the plan.’’;
(9) in section 1322(b)—
(A) in paragraph (9), by striking ‘‘; and’’
and inserting a semicolon;
(B) by redesignating paragraph (10) as
paragraph (11); and
(C) inserting after paragraph (9) the fol-
lowing:
‘‘(10) provide for the payment of interest accru-
ing after the date of the filing of the petition on unse-
cured claims that are nondischargeable under section
1328(a), except that such interest may be paid only
to the extent that the debtor has disposable income
available to pay such interest after making provision
for full payment of all allowed claims; and’’;
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(10) in section 1325(a)—
(A) in paragraph (5), by striking ‘‘and’’ at
the end;
(B) in paragraph (6), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(7) if the debtor is required by a judicial or ad-
ministrative order or statute to pay a domestic sup-
port obligation, the debtor has paid amounts payable
after the date on which the petition is filed.’’; and
(11) in section 1328(a), in the matter preceding
paragraph (1), by inserting ‘‘, and in the case of a
debtor who is required by a judicial or administrative
order to pay a domestic support obligation, after such
debtor certifies that all amounts payable under such
order or statute that are due on or before the date of
the certification (including amounts due before the pe-
tition was filed, but only to the extent provided for
in the plan) have been paid’’ after ‘‘completion by the
debtor of all payments under the plan’’.
SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC
SUPPORT OBLIGATION PROCEEDINGS.
Section 362(b) of title 11, United States Code, is
amended by striking paragraph (2) and inserting the fol-
lowing:
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‘‘(2) under subsection (a)—
‘‘(A) of the commencement or continuation
of a civil action or proceeding—
‘‘(i) for the establishment of paternity;
‘‘(ii) for the establishment or modifica-
tion of an order for domestic support obli-
gations;
‘‘(iii) concerning child custody or visi-
tation;
‘‘(iv) for the dissolution of a marriage
except to the extent that such a proceeding
seeks to determine the division of property
which is property of the estate; or
‘‘(v) regarding domestic violence;
‘‘(B) the collection of a domestic support ob-
ligation from property that is not property of the
estate;
‘‘(C) with respect to the withholding of in-
come that is property of the estate or property of
the debtor for payment of a domestic support ob-
ligation pursuant to a judicial or administrative
order;
‘‘(D) the withholding, suspension, or restric-
tion of drivers’ licenses, professional and occupa-
tional licenses, and recreational licenses under
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State law, as specified in section 466(a)(16) of
the Social Security Act (42 U.S.C. 666(a)(16));
‘‘(E) the reporting of overdue support owed
by a parent to any consumer reporting agency
as specified in section 466(a)(7) of the Social Se-
curity Act (42 U.S.C. 666(a)(7));
‘‘(F) the interception of tax refunds, as
specified in sections 464 and 466(a)(3) of the So-
cial Security Act (42 U.S.C. 664 and 666(a)(3))
or under an analogous State law; or
‘‘(G) the enforcement of medical obligations
as specified under title IV of the Social Security
Act (42 U.S.C. 601 et seq.).’’;
SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR
ALIMONY, MAINTENANCE, AND SUPPORT.
Section 523 of title 11, United States Code, is
amended—
(1) in subsection (a)—
(A) by striking paragraph (5) and inserting
the following:
‘‘(5) for a domestic support obligation;’’;
(B) in paragraph (15)—
(i) by inserting ‘‘to a spouse, former
spouse, or child of the debtor and’’ before
‘‘not of the kind’’;
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(ii) by inserting ‘‘or’’ after ‘‘court of
record’’; and
(iii) by striking ‘‘unless—’’ and all
that follows through the end of the para-
graph and inserting a semicolon; and
(C) by striking paragraph (18); and
(2) in subsection (c), by striking ‘‘(6), or (15)’’
and inserting ‘‘or (6)’’.
SEC. 216. CONTINUED LIABILITY OF PROPERTY.
Section 522 of title 11, United States Code, is
amended—
(1) in subsection (c), by striking paragraph (1)
and inserting the following:
‘‘(1) a debt of a kind specified in paragraph (1)
or (4) of section 523(a) (in which case, notwith-
standing any provision of applicable nonbankruptcy
law to the contrary, such property shall be liable for
a debt of a kind specified in section 523(a)(4));’’; and
(2) in subsection (f)(1)(A), by striking the dash
and all that follows through the end of the subpara-
graph and inserting ‘‘of a kind that is specified in
section 523(a)(4); or’’.
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SEC. 217. PROTECTION OF DOMESTIC SUPPORT CLAIMS
AGAINST 
PREFERENTIAL 
TRANSFER 
MO-
TIONS.
Section 547(c)(7) of title 11, United States Code, is
amended to read as follows:
‘‘(7) to the extent such transfer was a bona fide
payment of a debt for a domestic support obligation;
or’’.
SEC. 218. DISPOSABLE INCOME DEFINED.
(a) CONFIRMATION OF PLAN UNDER CHAPTER 12.—
Section 1225(b)(2)(A) of title 11, United States Code, is
amended by inserting ‘‘or for a domestic support obligation
that first becomes payable after the date on which the peti-
tion is filed’’ after ‘‘dependent of the debtor’’.
(b) CONFIRMATION OF PLAN UNDER CHAPTER 13.—
Section 1325(b)(2)(A) of title 11, United States Code, is
amended by inserting ‘‘or for a domestic support obligation
that first becomes payable after the date on which the peti-
tion is filed’’ after ‘‘dependent of the debtor’’.
SEC. 219. COLLECTION OF CHILD SUPPORT.
(a) DUTIES OF TRUSTEE UNDER CHAPTER 7.—Sec-
tion 704 of title 11, United States Code, as amended by
section 102(b) of this Act, is amended—
(1) in subsection (a)—
(A) in paragraph (8), by striking ‘‘and’’ at
the end;
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(B) in paragraph (9), by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(10) if, with respect to an individual debtor,
there is a claim for a domestic support obligation,
provide the applicable notification specified in sub-
section (c).’’; and
(2) by adding at the end the following:
‘‘(c)(1) In any case described in subsection (a)(10), the
trustee shall—
‘‘(A)(i) notify in writing the holder of the claim
of the right of that holder to use the services of a State
child support enforcement agency established under
sections 464 and 466 of the Social Security Act (42
U.S.C. 664 and 666, respectively) for the State in
which the holder resides for assistance in collecting
child support during and after the bankruptcy proce-
dures;
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child support
enforcement agency; and
‘‘(iii) include in the notice an explanation of the
rights of the holder of the claim to payment of the
claim under this chapter; and
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‘‘(B)(i) notify in writing the State child support
agency of the State in which the holder of the claim
resides of the claim;
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the holder
of the claim; and
‘‘(iii) at such time as the debtor is granted a dis-
charge under section 727, notify the holder of that
claim and the State child support agency of the State
in which that holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor;
‘‘(III) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(IV) with respect to the debtor’s case, the
name of each creditor that holds a claim that—
‘‘(aa) is not discharged under para-
graph (2), (4), or (14A) of section 523(a);
or
‘‘(bb) was reaffirmed by the debtor
under section 524(c).
‘‘(2)(A) A holder of a claim or a State child support
agency may request from a creditor described in paragraph
(1)(B)(iii)(IV) the last known address of the debtor.
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‘‘(B) Notwithstanding any other provision of law, a
creditor that makes a disclosure of a last known address
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable to the debtor or any other
person by reason of making that disclosure.’’.
(b) DUTIES OF TRUSTEE UNDER CHAPTER 11.—Sec-
tion 1106 of title 11, United States Code, is amended—
(1) in subsection (a)—
(A) in paragraph (6), by striking ‘‘and’’ at
the end;
(B) in paragraph (7), by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(8) if, with respect to an individual debtor,
there is a claim for a domestic support obligation,
provide the applicable notification specified in sub-
section (c).’’; and
(2) by adding at the end the following:
‘‘(c)(1) In any case described in subsection (a)(7), the
trustee shall—
‘‘(A)(i) notify in writing the holder of the claim
of the right of that holder to use the services of a State
child support enforcement agency established under
sections 464 and 466 of the Social Security Act (42
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U.S.C. 664 and 666) for the State in which the holder
resides; and
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child support
enforcement agency; and
‘‘(B)(i) notify, in writing, the State child sup-
port agency (of the State in which the holder of the
claim resides) of the claim;
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the holder
of the claim; and
‘‘(iii) at such time as the debtor is granted a dis-
charge under section 1141, notify the holder of the
claim and the State child support agency of the State
in which that holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor;
‘‘(III) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(IV) with respect to the debtor’s case, the
name of each creditor that holds a claim that—
‘‘(aa) is not discharged under para-
graph (2), (3), or (14) of section 523(a); or
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‘‘(bb) was reaffirmed by the debtor
under section 524(c).
‘‘(2)(A) A holder of a claim or a State child support
agency may request from a creditor described in paragraph
(1)(B)(iii)(IV) the last known address of the debtor.
‘‘(B) Notwithstanding any other provision of law, a
creditor that makes a disclosure of a last known address
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable to the debtor or any other
person by reason of making that disclosure.’’.
(c) DUTIES OF TRUSTEE UNDER CHAPTER 12.—Sec-
tion 1202 of title 11, United States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at
the end;
(B) in paragraph (5), by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(6) if, with respect to an individual debtor,
there is a claim for a domestic support obligation,
provide the applicable notification specified in sub-
section (c).’’; and
(2) by adding at the end the following:
‘‘(c)(1) In any case described in subsection (b)(6), the
trustee shall—
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‘‘(A)(i) notify in writing the holder of the claim
of the right of that holder to use the services of a State
child support enforcement agency established under
sections 464 and 466 of the Social Security Act (42
U.S.C. 664 and 666) for the State in which the holder
resides; and
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child support
enforcement agency; and
‘‘(B)(i) notify, in writing, the State child sup-
port agency (of the State in which the holder of the
claim resides) of the claim;
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the holder
of the claim; and
‘‘(iii) at such time as the debtor is granted a dis-
charge under section 1228, notify the holder of the
claim and the State child support agency of the State
in which that holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor;
‘‘(III) the last recent known name and ad-
dress of the debtor’s employer; and
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‘‘(IV) with respect to the debtor’s case, the
name of each creditor that holds a claim that—
‘‘(aa) is not discharged under para-
graph (2), (3), or (14) of section 523(a); or
‘‘(bb) was reaffirmed by the debtor
under section 524(c).
‘‘(2)(A) A holder of a claim or a State child support
agency may request from a creditor described in paragraph
(1)(B)(iii)(IV) the last known address of the debtor.
‘‘(B) Notwithstanding any other provision of law, a
creditor that makes a disclosure of a last known address
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable to the debtor or any other
person by reason of making that disclosure.’’.
(d) DUTIES OF TRUSTEE UNDER CHAPTER 13.—Sec-
tion 1302 of title 11, United States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at
the end;
(B) in paragraph (5), by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(6) if, with respect to an individual debtor,
there is a claim for a domestic support obligation,
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provide the applicable notification specified in sub-
section (d); and
‘‘(7) provide information relating to the admin-
istration of cases that is practical to any not-for-prof-
it entity which shall provide information to parties
in interest in a timely and convenient manner, in-
cluding telephonic and Internet access, at no cost or
a nominal cost.
An entity described in paragraph (7) shall provide
parties in interest with reasonable information about
each case on behalf of the trustee of that case, includ-
ing the status of the debtor’s payments to the plan,
the unpaid balance payable to each creditor treated
by the plan, and the amount and date of payments
made under the plan. The trustee shall have no duty
to provide information under paragraph (7) if no
such entity has been established.’’; and
(2) by adding at the end the following:
‘‘(d)(1) In any case described in subsection (b)(6), the
trustee shall—
‘‘(A)(i) notify in writing the holder of the claim
of the right of that holder to use the services of a State
child support enforcement agency established under
sections 464 and 466 of the Social Security Act (42
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U.S.C. 664 and 666, respectively) for the State in
which the holder resides; and
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child support
enforcement agency; and
‘‘(B)(i) notify in writing the State child support
agency of the State in which the holder of the claim
resides of the claim;
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the holder
of the claim; and
‘‘(iii) at such time as the debtor is granted a dis-
charge under section 1328, notify the holder of the
claim and the State child support agency of the State
in which that holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor;
‘‘(III) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(IV) with respect to the debtor’s case, the
name of each creditor that holds a claim that—
‘‘(aa) is not discharged under para-
graph (2), (3), or (14) of section 523(a); or
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‘‘(bb) was reaffirmed by the debtor
under section 524(c).
‘‘(2)(A) A holder of a claim or a State child support
agency may request from a creditor described in paragraph
(1)(B)(iii)(IV) the last known address of the debtor.
‘‘(B) Notwithstanding any other provision of law, a
creditor that makes a disclosure of a last known address
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable to the debtor or any other
person by reason of making that disclosure.’’.
SEC. 
220. 
NONDISCHARGEABILITY 
OF 
CERTAIN 
EDU-
CATIONAL BENEFITS AND LOANS.
Section 523(a) of title 11, United States Code, is
amended by striking paragraph (8) and inserting the fol-
lowing:
‘‘(8) unless excepting such debt from discharge
under this paragraph would impose an undue hard-
ship on the debtor and the debtor’s dependents, for—
‘‘(A)(i) an educational benefit overpayment
or loan made, insured, or guaranteed by a gov-
ernmental unit, or made under any program
funded in whole or in part by a governmental
unit or nonprofit institution; or
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‘‘(ii) an obligation to repay funds received
as an educational benefit, scholarship, or sti-
pend; or
‘‘(B) any other educational loan that is a
qualified education loan, as that term is defined
in section 221(e)(1) of the Internal Revenue Code
of 1986, incurred by an individual debtor;’’.
Subtitle C—Other Consumer
Protections
SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANK-
RUPTCY FILINGS.
Section 110 of title 11, United States Code, is
amended—
(1) in subsection (a)(1), by inserting ‘‘, under
the direct supervision of an attorney,’’ after ‘‘who’’;
(2) in subsection (b)—
(A) in paragraph (1), by adding at the end
the following: ‘‘If a bankruptcy petition preparer
is not an individual, then an officer, principal,
responsible person, or partner of the preparer
shall be required to—
‘‘(A) sign the document for filing; and
‘‘(B) print on the document the name and ad-
dress of that officer, principal, responsible person or
partner.’’;
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(B) by striking paragraph (2) and inserting
the following:
‘‘(2)(A) Before preparing any document for filing or
accepting any fees from a debtor, the bankruptcy petition
preparer shall provide to the debtor a written notice to debt-
ors concerning bankruptcy petition preparers, which shall
be on an official form issued by the Judicial Conference
of the United States.
‘‘(B) The notice under subparagraph (A)—
‘‘(i) shall inform the debtor in simple language
that a bankruptcy petition preparer is not an attor-
ney and may not practice law or give legal advice;
‘‘(ii) may contain a description of examples of
legal advice that a bankruptcy petition preparer is
not authorized to give, in addition to any advice that
the preparer may not give by reason of subsection
(e)(2); and
‘‘(iii) shall—
‘‘(I) be signed by—
‘‘(aa) the debtor; and
‘‘(bb) the bankruptcy petition preparer,
under penalty of perjury; and
‘‘(II) be filed with any document for fil-
ing.’’;
(3) in subsection (c)—
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(A) in paragraph (2)—
(i) by striking ‘‘(2) For purposes’’ and
inserting ‘‘(2)(A) Subject to subparagraph
(B), for purposes’’; and
(ii) by adding at the end the following:
‘‘(B) If a bankruptcy petition preparer is not an indi-
vidual, the identifying number of the bankruptcy petition
preparer shall be the Social Security account number of the
officer, principal, responsible person, or partner of the pre-
parer.’’; and
(B) by striking paragraph (3);
(4) in subsection (d)—
(A) by striking ‘‘(d)(1)’’ and inserting
‘‘(d)’’; and
(B) by striking paragraph (2);
(5) in subsection (e)—
(A) by striking paragraph (2); and
(B) by adding at the end the following:
‘‘(2)(A) A bankruptcy petition preparer may not offer
a potential bankruptcy debtor any legal advice, including
any legal advice described in subparagraph (B).
‘‘(B) The legal advice referred to in subparagraph (A)
includes advising the debtor—
‘‘(i) whether—
‘‘(I) to file a petition under this title; or
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‘‘(II) commencing a case under chapter 7,
11, 12, or 13 is appropriate;
‘‘(ii) whether the debtor’s debts will be eliminated
or discharged in a case under this title;
‘‘(iii) whether the debtor will be able to retain
the debtor’s home, car, or other property after com-
mencing a case under this title;
‘‘(iv) concerning—
‘‘(I) the tax consequences of a case brought
under this title; or
‘‘(II) the dischargeability of tax claims;
‘‘(v) whether the debtor may or should promise
to repay debts to a creditor or enter into a reaffirma-
tion agreement with a creditor to reaffirm a debt;
‘‘(vi) concerning how to characterize the nature
of the debtor’s interests in property or the debtor’s
debts; or
‘‘(vii) concerning bankruptcy procedures and
rights.’’;
(6) in subsection (f)—
(A) by striking ‘‘(f)(1)’’ and inserting ‘‘(f)’’;
and
(B) by striking paragraph (2);
(7) in subsection (g)—
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(A) by striking ‘‘(g)(1)’’ and inserting
‘‘(g)’’; and
(B) by striking paragraph (2);
(8) in subsection (h)—
(A) 
by 
redesignating 
paragraphs 
(1)
through (4) as paragraphs (2) through (5), re-
spectively;
(B) by inserting before paragraph (2), as so
redesignated, the following:
‘‘(h)(1) The Supreme Court may promulgate rules
under section 2075 of title 28, or the Judicial Conference
of the United States may prescribe guidelines, for setting
a maximum allowable fee chargeable by a bankruptcy peti-
tion preparer. A bankruptcy petition preparer shall notify
the debtor of any such maximum amount before preparing
any document for filing for a debtor or accepting any fee
from the debtor.’’;
(C) in paragraph (2), as redesignated by
subparagraph (A) of this paragraph—
(i) by striking ‘‘Within 10 days after
the date of filing a petition, a bankruptcy
petition preparer shall file a’’ and inserting
‘‘A’’;
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(ii) by inserting ‘‘by the bankruptcy
petition preparer shall be filed together with
the petition,’’ after ‘‘perjury’’; and
(iii) by adding at the end the fol-
lowing: ‘‘If rules or guidelines setting a
maximum fee for services have been promul-
gated or prescribed under paragraph (1),
the declaration under this paragraph shall
include a certification that the bankruptcy
petition preparer complied with the notifi-
cation requirement under paragraph (1).’’;
(D) by striking paragraph (3), as redesig-
nated by subparagraph (A) of this paragraph,
and inserting the following:
‘‘(3)(A) The court shall disallow and order the
immediate turnover to the bankruptcy trustee any fee
referred to in paragraph (2) found to be in excess of
the value of any services—
‘‘(i) rendered by the preparer during the 12-
month period immediately preceding the date of
filing of the petition; or
‘‘(ii) found to be in violation of any rule or
guideline promulgated or prescribed under para-
graph (1).
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‘‘(B) All fees charged by a bankruptcy petition
preparer may be forfeited in any case in which the
bankruptcy petition preparer fails to comply with
this subsection or subsection (b), (c), (d), (e), (f), or
(g).
‘‘(C) An individual may exempt any funds re-
covered under this paragraph under section 522(b).’’;
and
(E) in paragraph (4), as redesignated by
subparagraph (A) of this paragraph, by striking
‘‘or the United States trustee’’ and inserting ‘‘the
United States trustee, or the court, on the initia-
tive of the court,’’;
(9) in subsection (i)(1), by striking the matter
preceding subparagraph (A) and inserting the fol-
lowing:
‘‘(i) If a bankruptcy petition preparer violates this sec-
tion or commits any act that the court finds to be fraudu-
lent, unfair, or deceptive, on motion of the debtor, trustee,
or United States trustee, and after the court holds a hearing
with respect to that violation or act, the court shall order
the bankruptcy petition preparer to pay to the debtor—’’;
(10) in subsection (j)—
(A) in paragraph (2)—
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(i) in subparagraph (A)(i)(I), by strik-
ing ‘‘a violation of which subjects a person
to criminal penalty’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘or has not paid a
penalty’’ and inserting ‘‘has not paid
a penalty’’; and
(II) by inserting ‘‘or failed to dis-
gorge all fees ordered by the court’’
after ‘‘a penalty imposed under this
section,’’;
(B) by redesignating paragraph (3) as
paragraph (4); and
(C) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) The court, as part of its contempt power, may
enjoin a bankruptcy petition preparer that has failed to
comply with a previous order issued under this section. The
injunction under this paragraph may be issued upon mo-
tion of the court, the trustee, or the United States trustee.’’;
and
(11) by adding at the end the following:
‘‘(l)(1) A bankruptcy petition preparer who fails to
comply with any provision of subsection (b), (c), (d), (e),
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(f), (g), or (h) may be fined not more than $500 for each
such failure.
‘‘(2) The court shall triple the amount of a fine as-
sessed under paragraph (1) in any case in which the court
finds that a bankruptcy petition preparer—
‘‘(A) advised the debtor to exclude assets or in-
come that should have been included on applicable
schedules;
‘‘(B) advised the debtor to use a false Social Se-
curity account number;
‘‘(C) failed to inform the debtor that the debtor
was filing for relief under this title; or
‘‘(D) prepared a document for filing in a man-
ner that failed to disclose the identity of the preparer.
‘‘(3) The debtor, the trustee, a creditor, or the United
States trustee may file a motion for an order imposing a
fine on the bankruptcy petition preparer for each violation
of this section.
‘‘(4) All fines imposed under this section shall be paid
to the United States trustee, who shall deposit an amount
equal to such fines in a special account of the United States
Trustee System Fund referred to in section 586(e)(2) of title
28. Amounts deposited under this paragraph shall be avail-
able to fund the enforcement of this section on a national
basis.’’.
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SEC. 222. SENSE OF CONGRESS.
It is the sense of Congress that States should develop
curricula relating to the subject of personal finance, de-
signed for use in elementary and secondary schools.
SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED
STATES CODE.
(a) IN GENERAL.—Section 507(a) of title 11, United
States Code, as amended by section 212 of this Act, is
amended by inserting after paragraph (9) the following:
‘‘(10) Tenth, allowed claims for death or per-
sonal injuries resulting from the operation of a motor
vehicle or vessel if such operation was unlawful be-
cause the debtor was intoxicated from using alcohol,
a drug, or another substance.’’.
(b) VESSELS.—Section 523(a)(8) of title 11, United
States Code, is amended by inserting ‘‘or vessel’’ after ‘‘vehi-
cle’’.
SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANK-
RUPTCY.
(a) IN GENERAL.—Section 522 of title 11, United
States Code, as amended by section 215 of this Act, is
amended—
(1) in subsection (b)—
(A) in paragraph (2)—
(i) by striking ‘‘(2)(A) any property’’
and inserting:
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‘‘(3) Property listed in this paragraph is—
‘‘(A) any property’’;
(ii) in subparagraph (A), by striking
‘‘and’’ at the end;
(iii) in subparagraph (B), by striking
the period at the end and inserting ‘‘; and’’;
and
(iv) by adding at the end the following:
‘‘(C) retirement funds to the extent that those
funds are in a fund or account that is exempt from
taxation under section 401, 403, 408, 408A, 414, 457,
or 501(a) of the Internal Revenue Code of 1986.’’;
(B) by striking paragraph (1) and insert-
ing:
‘‘(2) Property listed in this paragraph is property that
is specified under subsection (d), unless the State law that
is applicable to the debtor under paragraph (3)(A) specifi-
cally does not so authorize.’’;
(C) in the matter preceding paragraph
(2)—
(i) by striking ‘‘(b)’’ and inserting
‘‘(b)(1)’’;
(ii) by striking ‘‘paragraph (2)’’ both
places it appears and inserting ‘‘paragraph
(3)’’;
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(iii) by striking ‘‘paragraph (1)’’ each
place it appears and inserting ‘‘paragraph
(2)’’; and
(iv) by striking ‘‘Such property is—’’;
and
(D) by adding at the end of the subsection
the following:
‘‘(4) For purposes of paragraph (3)(C) and subsection
(d)(12), the following shall apply:
‘‘(A) If the retirement funds are in a retirement
fund that has received a favorable determination pur-
suant to section 7805 of the Internal Revenue Code of
1986, and that determination is in effect as of the
date of the commencement of the case under section
301, 302, or 303 of this title, those funds shall be pre-
sumed to be exempt from the estate.
‘‘(B) If the retirement funds are in a retirement
fund that has not received a favorable determination
pursuant to such section 7805, those funds are exempt
from the estate if the debtor demonstrates that—
‘‘(i) no prior determination to the contrary
has been made by a court or the Internal Rev-
enue Service; and
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‘‘(ii)(I) the retirement fund is in substan-
tial compliance with the applicable requirements
of the Internal Revenue Code of 1986; or
‘‘(II) the retirement fund fails to be in sub-
stantial compliance with the applicable require-
ments of the Internal Revenue Code of 1986 and
the debtor is not materially responsible for that
failure.
‘‘(C) A direct transfer of retirement funds from
1 fund or account that is exempt from taxation under
section 401, 403, 408, 408A, 414, 457, or 501(a) of
the Internal Revenue Code of 1986, pursuant to sec-
tion 401(a)(31) of the Internal Revenue Code of 1986,
or otherwise, shall not cease to qualify for exemption
under paragraph (3)(C) or subsection (d)(12) by rea-
son of that direct transfer.
‘‘(D)(i) Any distribution that qualifies as an eli-
gible rollover distribution within the meaning of sec-
tion 402(c) of the Internal Revenue Code of 1986 or
that is described in clause (ii) shall not cease to qual-
ify for exemption under paragraph (3)(C) or sub-
section (d)(12) by reason of that distribution.
‘‘(ii) A distribution described in this clause is an
amount that—
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‘‘(I) has been distributed from a fund or ac-
count that is exempt from taxation under section
401, 403, 408, 408A, 414, 457, or 501(a) of the
Internal Revenue Code of 1986; and
‘‘(II) to the extent allowed by law, is depos-
ited in such a fund or account not later than 60
days after the distribution of that amount.’’; and
(2) in subsection (d)—
(A) in the matter preceding paragraph (1),
by striking ‘‘subsection (b)(1)’’ and inserting
‘‘subsection (b)(2)’’; and
(B) by adding at the end the following:
‘‘(12) Retirement funds to the extent that those funds
are in a fund or account that is exempt from taxation under
section 401, 403, 408, 408A, 414, 457, or 501(a) of the In-
ternal Revenue Code of 1986.’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, as amended by section 214 of this Act,
is amended—
(1) in paragraph (18), by striking ‘‘or’’ at the
end;
(2) in paragraph (19), by striking the period
and inserting ‘‘; or’’;
(3) by inserting after paragraph (19) the fol-
lowing:
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‘‘(20) under subsection (a), of withholding of in-
come from a debtor’s wages and collection of amounts
withheld, pursuant to the debtor’s agreement author-
izing that withholding and collection for the benefit of
a pension, profit-sharing, stock bonus, or other plan
established under section 401, 403, 408, 408A, 414,
457, or 501(a) of the Internal Revenue Code of 1986
that is sponsored by the employer of the debtor, or an
affiliate, successor, or predecessor of such employer—
‘‘(A) to the extent that the amounts withheld
and collected are used solely for payments relat-
ing to a loan from a plan that satisfies the re-
quirements of section 408(b)(1) of the Employee
Retirement Income Security Act of 1974 or is
subject to section 72(p) of the Internal Revenue
Code of 1986; or
‘‘(B) in the case of a loan from a thrift sav-
ings plan described in subchapter III of title 5,
that satisfies the requirements of section 8433(g)
of such title;’’; and
(4) by adding at the end of the flush material at
the end of the subsection, the following: ‘‘Nothing in
paragraph (20) may be construed to provide that any
loan made under a governmental plan under section
414(d), or a contract or account under section 403(b),
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of the Internal Revenue Code of 1986 constitutes a
claim or a debt under this title.’’.
(c) EXCEPTIONS TO DISCHARGE.—Section 523(a) of
title 11, United States Code, is amended by adding at the
end the following:
‘‘(18) owed to a pension, profit-sharing, stock
bonus, or other plan established under section 401,
403, 408, 408A, 414, 457, or 501(c) of the Internal
Revenue Code of 1986, pursuant to—
‘‘(A) a loan permitted under section
408(b)(1) of the Employee Retirement Income
Security Act of 1974, or subject to section 72(p)
of the Internal Revenue Code of 1986; or
‘‘(B) a loan from the thrift savings plan de-
scribed in subchapter III of title 5, that satisfies
the requirements of section 8433(g) of such title.
Nothing in paragraph (19) may be construed to pro-
vide that any loan made under a governmental plan
under section 414(d), or a contract or account under
section 403(b), of the Internal Revenue Code of 1986
constitutes a claim or a debt under this title.’’
(d) PLAN CONTENTS.—Section 1322 of title 11, United
States Code, is amended by adding at the end the following:
‘‘(f) A plan may not materially alter the terms of a
loan described in section 362(b)(20).’’.
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SEC. 225. PROTECTION OF EDUCATION SAVINGS.
(a) EXCLUSIONS.—Section 541 of title 11, United
States Code, as amended by section 903, is amended—
(1) in subsection (b)—
(A) by redesignating paragraph (6) as
paragraph (8); and
(B) by inserting after paragraph (5) the fol-
lowing:
‘‘(6) funds placed in an education individual re-
tirement account (as defined in section 530(b)(1) of
the Internal Revenue Code of 1986) not later than
365 days before the date of filing of the petition,
but—
‘‘(A) only if the designated beneficiary of
such account was a son, daughter, stepson, step-
daughter, grandchild, or step-grandchild of the
debtor for the taxable year for which funds were
placed in such account;
‘‘(B) only to the extent that such funds—
‘‘(i) are not pledged or promised to
any entity in connection with any extension
of credit; and
‘‘(ii) are not excess contributions (as
described in section 4973(e) of the Internal
Revenue Code of 1986); and
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petition by the annual increase or decrease
(rounded to the nearest tenth of 1 percent) in the
education expenditure category of the Consumer
Price Index prepared by the Department of
Labor; and
‘‘(C) in the case of funds paid or contrib-
uted to such program having the same designated
beneficiary not earlier than 720 days nor later
than 365 days before such date, only so much of
such funds as does not exceed $5,000; or’’; and
(2) by adding at the end the following:
‘‘(g) In determining whether any of the relationships
specified in paragraph (6)(A) or (7)(A) of subsection (b)
exists, a legally adopted child of an individual (and a child
who is a member of an individual’s household, if placed
with such individual by an authorized placement agency
for legal adoption by such individual), or a foster child of
an individual (if such child has as the child’s principal
place of abode the home of the debtor and is a member of
the debtor’s household) shall be treated as a child of such
individual by blood.’’.
(b) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, as amended by sections 105(d),
304(c)(1), 305(2), 315(b), and 316 of this Act, is amended
by adding at the end the following:
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‘‘(k) In addition to meeting the requirements under
subsection (a), a debtor shall file with the court a record
of any interest that a debtor has in an education individual
retirement account (as defined in section 530(b)(1) of the
Internal Revenue Code of 1986) or under a qualified State
tuition program (as defined in section 529(b)(1) of such
Code).’’.
TITLE III—DISCOURAGING
BANKRUPTCY ABUSE
SEC. 301. REINFORCEMENT OF THE FRESH START.
Section 523(a)(17) of title 11, United States Code, is
amended—
(1) by striking ‘‘by a court’’ and inserting ‘‘on
a prisoner by any court’’,
(2) by striking ‘‘section 1915(b) or (f)’’ and in-
serting ‘‘subsection (b) or (f)(2) of section 1915’’, and
(3) by inserting ‘‘(or a similar non-Federal
law)’’ after ‘‘title 28’’ each place it appears.
SEC. 302. 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 a semicolon; and
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(3) by adding at the end the following:
‘‘(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 the debtor was
pending within the preceding 1-year period but was
dismissed, other than a case refiled under a chapter
other than chapter 7 after dismissal under section
707(b)—
‘‘(A) the stay under subsection (a) with re-
spect 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 debt-
or on the 30th day after the filing of the later
case;
‘‘(B) upon motion by a party in interest for
continuation of the automatic stay and upon no-
tice and a hearing, 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 hear-
ing 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; and
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‘‘(C) for purposes of subparagraph (B), a
case is presumptively filed not in good faith (but
such presumption may be rebutted by clear and
convincing evidence to the contrary)—
‘‘(i) as to all creditors, if—
‘‘(I) more than 1 previous case
under any of chapter 7, 11, or 13 in
which the individual was a debtor was
pending within the preceding 1-year
period;
‘‘(II) a previous case under any of
chapter 7, 11, or 13 in which the indi-
vidual was a debtor was dismissed
within such 1-year period, after the
debtor failed to—
‘‘(aa) file or amend the peti-
tion or other documents as re-
quired by this title or the court
without substantial excuse (but
mere inadvertence or negligence
shall not be a substantial excuse
unless the dismissal was caused
by the negligence of the debtor’s
attorney);
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‘‘(bb) provide adequate pro-
tection as ordered by the court; or
‘‘(cc) perform the terms of a
plan confirmed by the court; or
‘‘(III) there has not been a sub-
stantial change in the financial or per-
sonal affairs of the debtor since the dis-
missal of the next most previous case
under chapter 7, 11, or 13 or any other
reason to conclude that the later case
will be concluded—
‘‘(aa) if a case under chapter
7, with a discharge; or
‘‘(bb) if a case under chapter
11 or 13, with a confirmed plan
which will be fully performed; and
‘‘(ii) as to any creditor that com-
menced an action under subsection (d) in a
previous case in which the individual was
a debtor if, as of the date of dismissal of
such case, that action was still pending or
had been resolved by terminating, condi-
tioning, or limiting the stay as to actions of
such creditor; and
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‘‘(4)(A)(i) if a single or joint case is filed by or
against an individual debtor under this title, and if
2 or more single or joint cases of the debtor were
pending within the previous year but were dismissed,
other than a case refiled under section 707(b), the
stay under subsection (a) shall not go into effect upon
the filing of the later case; and
‘‘(ii) on request of a party in interest, the court
shall promptly enter an order confirming that no stay
is in effect;
‘‘(B) if, within 30 days after the filing of the
later case, a party in interest requests the court may
order the stay to take effect in the case as to any or
all creditors (subject to such conditions or limitations
as the court may impose), after notice and hearing,
only if the party in interest demonstrates that the fil-
ing of the later case is in good faith as to the creditors
to be stayed;
‘‘(C) a stay imposed under subparagraph (B)
shall be effective on the date of entry of the order al-
lowing the stay to go into effect; and
‘‘(D) for purposes of subparagraph (B), a case is
presumptively not filed in good faith (but such pre-
sumption may be rebutted by clear and convincing
evidence to the contrary)—
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chapter 11 or 13, with a confirmed plan
that will be fully performed; or
‘‘(ii) as to any creditor that 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 such case, such action was
still pending or had been resolved by termi-
nating, conditioning, or limiting the stay as to
action of such creditor.’’.
SEC. 303. CURBING ABUSIVE FILINGS.
(a) IN GENERAL.—Section 362(d) of title 11, United
States Code, is amended—
(1) in paragraph (2), by striking ‘‘or’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(4) with respect to a stay of an act against real
property under subsection (a), by a creditor whose
claim is secured by an interest in such real estate, if
the court finds that the filing of the bankruptcy peti-
tion was part of a scheme to delay, hinder, and de-
fraud creditors that involved either—
‘‘(A) transfer of all or part ownership of, or
other interest in, the real property without the
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consent of the secured creditor or court approval;
or
‘‘(B) multiple bankruptcy filings affecting
the real property.
If recorded in compliance with applicable State laws gov-
erning notices of interests or liens in real property, an order
entered under this subsection shall be binding in any other
case under this title purporting to affect the real property
filed not later than 2 years after that recording, except that
a debtor in a subsequent case may move for relief from such
order based upon changed circumstances or for good cause
shown, after notice and a hearing.’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, as amended by section 224 of this Act,
is amended—
(1) in paragraph (19), by striking ‘‘or’’ at the
end;
(2) in paragraph (20), by striking the period at
the end; and
(3) by inserting after paragraph (20) the fol-
lowing:
‘‘(21) under subsection (a), of any act to enforce
any lien against or security interest in real property
following the entry of an order under section
362(d)(4) as to that property in any prior bank-
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ruptcy case for a period of 2 years after entry of such
an order, except that the debtor, in a subsequent case,
may move the court for relief from such order based
upon changed circumstances or for other good cause
shown, after notice and a hearing; or
‘‘(22) under subsection (a), of any act to enforce
any lien against or security interest in real
property—
‘‘(A) if the debtor is ineligible under section
109(g) to be a debtor in a bankruptcy case; or
‘‘(B) if the bankruptcy case was filed in
violation of a bankruptcy court order in a prior
bankruptcy case prohibiting the debtor from
being a debtor in another bankruptcy case.’’.
(c) MODIFICATION OF A RESTRICTION RELATING TO
WAIVERS.—Section 522(e) of title 11, United States Code,
is amended—
(1) in the first sentence, by striking ‘‘subsection
(b) of this section’’ and inserting ‘‘subsection (b),
other than under paragraph (3)(C) of that sub-
section’’; and
(2) in the second sentence—
(A) by inserting ‘‘(other than property de-
scribed in subsection (b)(3)(C))’’ after ‘‘property’’
each place it appears; and
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(B) by inserting ‘‘(other than a transfer of
property described in subsection (b)(3)(C))’’ after
‘‘transfer’’ each place it appears.
SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY
SECURITY.
Title 11, United States Code, is amended—
(1) in section 521(a), as so redesignated by sec-
tion 106(d) of this Act—
(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 case under chapter 7, not
retain possession of personal property as to which a
creditor has an allowed claim for the purchase price
secured in whole or in part by an interest in that
personal property unless, in the case of an individual
debtor, the debtor within 45 days after the first meet-
ing of creditors under section 341(a)—
‘‘(A) enters into an agreement with the
creditor under section 524(c) with respect to the
claim secured by such property; or
‘‘(B) redeems such property from the secu-
rity interest under section 722.’’; and
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(D) by adding at the end the following:
‘‘(c) For purposes of subsection (a)(6), if the debtor
fails to so act within the 45-day period specified in sub-
section (a)(6), the personal property affected shall no longer
be property of the estate, and the creditor may take what-
ever action as to such property as is permitted by applica-
ble nonbankruptcy law, unless the court determines on the
motion of the trustee, and after notice and a hearing, that
such property is of consequential value or benefit to the es-
tate.’’; and
(2) in section 722, by inserting ‘‘in full at the
time of redemption’’ before the period at the end.
SEC. 305. RELIEF FROM THE AUTOMATIC STAY WHEN THE
DEBTOR DOES NOT COMPLETE INTENDED
SURRENDER OF CONSUMER DEBT COLLAT-
ERAL.
Title 11, United States Code, is amended—
(1) in section 362—
(A) in subsection (c), by striking ‘‘(e), and
(f)’’ and inserting ‘‘(e), (f), and (h)’’; and
(B) by redesignating subsection (h), as
amended by section 227 of this Act, as subsection
(j) and by inserting after subsection (g) the fol-
lowing:
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‘‘(h)(1) Subject to paragraph (2), in an individual
case under chapter 7, 11, or 13 the stay provided by sub-
section (a) is terminated with respect to property of the es-
tate securing in whole or in part a claim, or subject to an
unexpired lease, if the debtor fails within the applicable pe-
riod of time set by section 521(a)(2) to—
‘‘(A) file timely any statement of intention re-
quired under section 521(a)(2) with respect to that
property or to indicate therein that the debtor—
‘‘(i) will either surrender the property or re-
tain the property; and
‘‘(ii) if retaining the property, will, as
applicable—
‘‘(I) redeem the property under section
722;
‘‘(II) reaffirm the debt the property se-
cures under section 524(c); or
‘‘(III) assume the unexpired lease
under section 365(p) if the trustee does not
do so; or
‘‘(B) take timely the action specified in that
statement of intention, as the statement may be
amended before expiration of the period for taking ac-
tion, unless the statement of intention specifies reaf-
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firmation and the creditor refuses to reaffirm on the
original contract terms.
‘‘(2) Paragraph (1) shall not apply if the court deter-
mines on the motion of the trustee, and after notice and
a hearing, that such property is of consequential value or
benefit to the estate.’’; and
(2) in section 521, as amended by section 304 of
this Act—
(A) in subsection (a)(2), as redesignated by
section 106(d) of this Act—
(i) by striking ‘‘consumer’’;
(ii) in subparagraph (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 date set for the
meeting of creditors under section
341(a)’’; and
(II) by striking ‘‘forty-five day
period’’ and inserting ‘‘30-day period’’;
and
(iii) in subparagraph (C), by inserting
‘‘except as provided in section 362(h)’’ be-
fore the semicolon; and
(B) by adding at the end the following:
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‘‘(d) If the debtor fails timely to take the action speci-
fied in subsection (a)(6), or in paragraph (1) or (2) of sec-
tion 362(h), with respect to property which a lessor or bail-
or owns and has leased, rented, or bailed to the debtor or
as to which a creditor holds a security interest not otherwise
voidable under section 522(f), 544, 545, 547, 548, or 549,
nothing in this title shall prevent or limit the operation
of a provision in the underlying lease or agreement that
has the effect of placing the debtor in default under that
lease or agreement by reason of the occurrence, pendency,
or existence of a proceeding under this title or the insol-
vency of the debtor. Nothing in this subsection shall be
deemed to justify limiting such a provision in any other
circumstance.’’.
SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT
IN CHAPTER 13.
(a) IN GENERAL.—Section 1325(a)(5)(B)(i) of title 11,
United States Code, is amended to read as follows:
‘‘(i) the plan provides that—
‘‘(I) the holder of such claim retain the
lien securing such claim until the earlier
of—
‘‘(aa) the payment of the under-
lying debt determined under nonbank-
ruptcy law; or
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‘‘(bb) 
discharge 
under 
section
1328; and
‘‘(II) if the case under this chapter 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’’.
(b) RESTORING
THE FOUNDATION
FOR SECURED
CREDIT.—Section 1325(a) of title 11, United States Code,
is amended by adding at the end the following flush sen-
tence:
‘‘For purposes of paragraph (5), section 506 shall not apply
to a claim described in that paragraph if the debt that is
the subject of the claim was incurred within the 5-year pe-
riod preceding the filing of the petition and the collateral
for that debt consists of a motor vehicle (as defined in sec-
tion 30102 of title 49) acquired for the personal use of the
debtor, or if collateral for that debt consists of any other
thing of value, if the debt was incurred during the 6-month
period preceding that filing.’’.
(c) DEFINITIONS.—Section 101 of title 11, United
States Code, as amended by section 211 of this Act, is
amended—
(1) by inserting after paragraph (13) the fol-
lowing:
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‘‘(13A) ‘debtor’s principal residence’—
‘‘(A) means a residential structure, includ-
ing incidental property, without regard to
whether that structure is attached to real prop-
erty; and
‘‘(B) includes an individual condominium
or cooperative unit;’’; and
(2) by inserting after paragraph (27), the fol-
lowing:
‘‘(27A) ‘incidental property’ means, with respect
to a debtor’s principal residence—
‘‘(A) property commonly conveyed with a
principal residence in the area where the real es-
tate is located;
‘‘(B) all easements, rights, appurtenances,
fixtures, rents, royalties, mineral rights, oil or
gas rights or profits, water rights, escrow funds,
or insurance proceeds; and
‘‘(C) all replacements or additions;’’.
SEC. 307. EXEMPTIONS.
Section 522(b)(3)(A) of title 11, United States Code,
as so designated by section 224 of this Act, is amended—
(1) by striking ‘‘180’’ and inserting ‘‘730’’; and
(2) by striking ‘‘, or for a longer portion of such
180-day period than in any other place’’.
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SEC. 308. RESIDENCY REQUIREMENT FOR HOMESTEAD EX-
EMPTION.
Section 522 of title 11, United States Code, as amend-
ed by section 307 of this Act, is amended—
(1) in subsection (b)(3)(A), by inserting ‘‘subject
to subsection (n),’’ before ‘‘any property’’; and
(2) by adding at the end the following:
‘‘(n) For purposes of subsection (b)(3)(A), and not-
withstanding subsection (a), the value of an interest in—
‘‘(1) real or personal property that the debtor or
a dependent of the debtor uses as a residence;
‘‘(2) a cooperative that owns property that the
debtor or a dependent of the debtor uses as a resi-
dence; or
‘‘(3) a burial plot for the debtor or a dependent
of the debtor;
shall be reduced to the extent such value is attributable to
any portion of any property that the debtor disposed of in
the 730-day period ending on the date of the filing of the
petition, with the intent to hinder, delay, or defraud a cred-
itor and that the debtor could not exempt, or that portion
that the debtor could not exempt, under subsection (b) if
on such date the debtor had held the property so disposed
of.’’.
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SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER
13 CASES.
(a) STOPPING ABUSIVE CONVERSIONS FROM CHAPTER
13.—Section 348(f)(1) of title 11, United States Code, is
amended—
(1) in subparagraph (A), by striking ‘‘and’’ at
the end;
(2) in subparagraph (B)—
(A) by striking ‘‘in the converted case, with
allowed secured claims’’ and inserting ‘‘only in
a case converted to chapter 11 or 12 but not in
a case converted to chapter 7, with allowed se-
cured claims in cases under chapters 11 and
12’’; and
(B) by striking the period and inserting ‘‘;
and’’; and
(3) by adding at the end the following:
‘‘(C) with respect to cases converted from chapter
13—
‘‘(i) the claim of any creditor holding secu-
rity as of the date of the petition shall continue
to be secured by that security unless the full
amount of such claim determined under applica-
ble nonbankruptcy law has been paid in full as
of the date of conversion, notwithstanding any
valuation or determination of the amount of an
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allowed secured claim made for the purposes of
the chapter 13 proceeding; and
‘‘(ii) unless a prebankruptcy default has
been fully cured under the plan at the time of
conversion, in any proceeding under this title or
otherwise, the default shall have the effect given
under applicable nonbankruptcy law.’’.
(b) 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) is automatically terminated.
‘‘(2)(A) In the case of an individual under chapter 7,
the debtor may notify the creditor in writing that the debtor
desires to assume the lease. Upon being so notified, the cred-
itor 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 contract.
‘‘(B) If within 30 days after notice is provided under
subparagraph (A), the debtor notifies the lessor in writing
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that the lease is assumed, the liability under the lease will
be assumed by the debtor and not by the estate.
‘‘(C) The stay under section 362 and the injunction
under section 524(a)(2) shall not be violated by notification
of the debtor and negotiation of cure under this subsection.
‘‘(3) In a case under chapter 11 in which the debtor
is an individual and in a case under chapter 13, 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 hear-
ing on confirmation. If the lease is rejected, the stay under
section 362 and any stay under section 1301 is automati-
cally terminated with respect to the property subject to the
lease.’’.
(c) ADEQUATE PROTECTION OF LESSORS AND PUR-
CHASE MONEY SECURED CREDITORS.—
(1) 
CONFIRMATION
OF
PLAN.—Section
1325(a)(5)(B) of title 11, United States Code, is
amended—
(A) in clause (i), by striking ‘‘and’’ at the
end;
(B) in clause (ii), by striking ‘‘or’’ at the
end and inserting ‘‘and’’; and
(C) by adding at the end the following:
‘‘(iii) if—
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‘‘(I) property to be distributed
pursuant to this subsection is in the
form of periodic payments, such pay-
ments shall be in equal monthly
amounts; and
‘‘(II) the holder of the claim is se-
cured by personal property the amount
of such payments shall not be less than
an amount sufficient to provide to the
holder of such claim adequate protec-
tion during the period of the plan; or’’.
(2) PAYMENTS.—Section 1326(a) of title 11,
United States Code, is amended to read as follows:
‘‘(a)(1) Unless the court orders otherwise, the debtor
shall—
‘‘(A) commence making the payments proposed
by a plan within 30 days after the plan is filed; or
‘‘(B) if no plan is filed then as specified in the
proof of claim, within 30 days after the order for re-
lief or within 15 days after the plan is filed, which-
ever is earlier.
‘‘(2) A payment made under this section shall be re-
tained by the trustee until confirmation, denial of con-
firmation, or paid by the trustee as adequate protection
payments in accordance with paragraph (3). If a plan is
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confirmed, the trustee shall distribute any such payment in
accordance with the plan as soon as is practicable. If a plan
is not confirmed, the trustee shall return any such payments
not previously paid and not yet due and owing to creditors
pursuant to paragraph (3) to the debtor, after deducting
any unpaid claim allowed under section 503(b).
‘‘(3)(A) As soon as is practicable, and not later than
40 days after the filing of the case, the trustee shall—
‘‘(i) pay from payments made under this section
the adequate protection payments proposed in the
plan; or
‘‘(ii) if no plan is filed then, according to the
terms of the proof of claim.
‘‘(B) The court may, upon notice and a hearing, mod-
ify, increase, or reduce the payments required under this
paragraph pending confirmation of a plan.’’.
SEC. 310. LIMITATION ON LUXURY GOODS.
Section 523(a)(2)(C) of title 11, United States Code,
is amended to read as follows:
‘‘(C)(i) for purposes of subparagraph (A)—
‘‘(I) consumer debts owed to a single cred-
itor and aggregating more than $250 for luxury
goods or services incurred by an individual debt-
or on or within 90 days before the order for relief
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under this title are presumed to be nondischarge-
able; and
‘‘(II) cash advances aggregating more than
$750 that are extensions of consumer credit
under an open end credit plan obtained by an
individual debtor on or within 70 days before the
order for relief under this title, are presumed to
be nondischargeable; and
‘‘(ii) for purposes of this subparagraph—
‘‘(I) the term ‘extension of credit under an
open end credit plan’ means an extension of
credit under an open end credit plan, within the
meaning of the Consumer Credit Protection Act
(15 U.S.C. 1601 et seq.);
‘‘(II) the term ‘open end credit plan’ has the
meaning given that term under section 103 of
Consumer Credit Protection Act (15 U.S.C.
1602); and
‘‘(III) the term ‘luxury goods or services’
does not include goods or services reasonably nec-
essary for the support or maintenance of the
debtor or a dependent of the debtor.’’.
SEC. 311. AUTOMATIC STAY.
Section 362(b) of title 11, United States Code, as
amended by section 303(b) of this Act, is amended—
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(1) in paragraph (21), by striking ‘‘or’’ at the
end;
(2) in paragraph (22), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (22) the fol-
lowing:
‘‘(23) under subsection (a)(3), of the continu-
ation of any eviction, unlawful detainer action, or
similar proceeding by a lessor against a debtor in-
volving residential real property in which the debtor
resides as a tenant under a rental agreement;
‘‘(24) under subsection (a)(3), of the commence-
ment of any eviction, unlawful detainer action, or
similar proceeding by a lessor against a debtor in-
volving residential real property in which the debtor
resides as a tenant under a rental agreement that has
terminated under the lease agreement or applicable
State law; or
‘‘(25) under subsection (a)(3), of eviction actions
based on endangerment to property or person or the
use of illegal drugs.’’.
SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY
DISCHARGES.
Title 11, United States Code, is amended—
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(1) in section 727(a)(8), by striking ‘‘six’’ and
inserting ‘‘8’’; and
(2) in section 1328, by inserting after subsection
(e) 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 if the debtor has re-
ceived a discharge in any case filed under this title within
5 years before the order for relief under this chapter.’’.
SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND AN-
TIQUES.
Section 522(f) of title 11, United States Code, is
amended by adding at the end the following:
‘‘(4)(A) Subject to subparagraph (B), for pur-
poses of paragraph (1)(B), the term ‘household goods’
means—
‘‘(i) clothing;
‘‘(ii) furniture;
‘‘(iii) appliances;
‘‘(iv) 1 radio;
‘‘(v) 1 television;
‘‘(vi) 1 VCR;
‘‘(vii) linens;
‘‘(viii) china;
‘‘(ix) crockery;
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‘‘(x) kitchenware;
‘‘(xi) educational materials and educational
equipment primarily for the use of minor de-
pendent children of the debtor, but only 1 per-
sonal computer only if used primarily for the
education or entertainment of such minor chil-
dren;
‘‘(xii) medical equipment and supplies;
‘‘(xiii) furniture exclusively for the use of
minor children, or elderly or disabled dependents
of the debtor; and
‘‘(xiv) personal effects (including wedding
rings and the toys and hobby equipment of
minor dependent children) of the debtor and the
dependents of the debtor.
‘‘(B) The term ‘household goods’ does not
include—
‘‘(i) works of art (unless by or of the debtor
or the dependents of the debtor);
‘‘(ii) electronic entertainment equipment
(except 1 television, 1 radio, and 1 VCR);
‘‘(iii) items acquired as antiques;
‘‘(iv) jewelry (except wedding rings); and
‘‘(v) a computer (except as otherwise pro-
vided for in this section), motor vehicle (includ-
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ing a tractor or lawn tractor), boat, or a motor-
ized recreational device, conveyance, vehicle,
watercraft, or aircraft.’’.
SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE
DEBTS.
(a) IN GENERAL.—Section 523(a) of title 11, United
States Code, is amended by inserting after paragraph (14)
the following:
‘‘(14A)(A) incurred to pay a debt that is non-
dischargeable by reason of section 727, 1141, 1228(a),
1228(b), or 1328(b), or any other provision of this
subsection, if the debtor incurred the debt to pay such
a nondischargeable debt with the intent to discharge
in bankruptcy the newly created debt; except that
‘‘(B) all debts incurred to pay nondischargeable
debts shall be presumed to be nondischargeable debts
if incurred within 70 days before the filing of the pe-
tition (except that, in any case in which there is an
allowed claim under section 502 for child support or
spousal support entitled to priority under section
507(a)(1) and that was filed in a timely manner,
debts that would otherwise be presumed to be non-
dischargeable debts by reason of this subparagraph
shall be treated as dischargeable debts);’’.
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(b) 
DISCHARGE
UNDER
CHAPTER
13.—Section
1328(a) of title 11, United States Code, is amended by strik-
ing paragraphs (1) through (3) and inserting the following:
‘‘(1) provided for under section 1322(b)(5);
‘‘(2) of the kind specified in paragraph (2), (3),
(4), (7), or (8), of section 523(a);
‘‘(3) for restitution, or a criminal fine, included
in a sentence on the debtor’s conviction of a crime; or
‘‘(4) for restitution, or damages, awarded in a
civil action against the debtor as a result of willful
or malicious injury by the debtor that caused per-
sonal injury to an individual or the death of an indi-
vidual.’’.
SEC. 315. GIVING CREDITORS FAIR NOTICE IN CHAPTERS 7
AND 13 CASES.
(a) NOTICE.—Section 342 of title 11, United States
Code, is amended—
(1) in subsection (c)—
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(B) by striking ‘‘, but the failure of such no-
tice to contain such information shall not invali-
date the legal effect of such notice’’; and
(2) by adding at the end the following:
‘‘(d) At any time, a creditor, in a case of an individual
debtor under chapter 7 or 13, may file with the court and
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serve on the debtor a notice of the address to be used to
notify the creditor in that case. Five days after receipt of
such notice, if the court or the debtor is required to give
the creditor notice, such notice shall be given at that ad-
dress.
‘‘(e) An entity may file with the court a notice stating
its address for notice in cases under chapters 7 and 13.
After 30 days following the filing of such notice, any notice
in any case filed under chapter 7 or 13 given by the court
shall be to that address unless specific notice is given under
subsection (d) with respect to a particular case.
‘‘(f)(1) Notice given to a creditor other than as pro-
vided in this section shall not be effective notice until that
notice has been brought to the attention of the creditor. If
the creditor designates a person or department to be respon-
sible for receiving notices concerning bankruptcy cases and
establishes reasonable procedures so that bankruptcy notices
received by the creditor are to be delivered to such depart-
ment or person, notice shall not be considered to have been
brought to the attention of the creditor until received by
such person or department.
‘‘(2) No sanction under section 362(h) or any other
sanction that a court may impose on account of violations
of the stay under section 362(a) or failure to comply with
section 542 or 543 may be imposed on any action of the
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creditor unless the action takes place after the creditor has
received notice of the commencement of the case effective
under this section.’’.
(b) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, as amended by section 305 of this Act,
is amended—
(1) in subsection (a), by striking paragraph (1)
and inserting the following:
‘‘(1) file—
‘‘(A) a list of creditors; and
‘‘(B) unless the court orders otherwise—
‘‘(i) a schedule of assets and liabilities;
‘‘(ii) a schedule of current income and
current expenditures;
‘‘(iii) a statement of the debtor’s finan-
cial 
affairs 
and, 
if 
applicable, 
a
certificate—
‘‘(I) of an attorney whose name is
on the petition as the attorney for the
debtor or any bankruptcy petition pre-
parer signing the petition under sec-
tion 110(b)(1) indicating that such at-
torney or bankruptcy petition preparer
delivered to the debtor any notice re-
quired by section 342(b); or
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‘‘(II) if no attorney for the debtor
is indicated and no bankruptcy peti-
tion preparer signed the petition, of the
debtor that such notice was obtained
and read by the debtor;
‘‘(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 before the fil-
ing of the petition;
‘‘(v) a statement of the amount of pro-
jected monthly net income, itemized to show
how the amount is calculated; and
‘‘(vi) a statement disclosing any rea-
sonably anticipated increase in income or
expenditures over the 12-month period fol-
lowing the date of filing’’; and
(2) by adding at the end the following:
‘‘(e)(1) At any time, a creditor, in the case of an indi-
vidual under chapter 7 or 13, may file with the court notice
that the creditor requests the petition, schedules, and a
statement of affairs filed by the debtor in the case and the
court shall make those documents available to the creditor
who request those documents.
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‘‘(2)(A) At any time, a creditor in a case under chap-
ter 13 may file with the court notice that the creditor re-
quests the plan filed by the debtor in the case.
‘‘(B) The court shall make such plan available to the
creditor who request such plan—
‘‘(i) at a reasonable cost; and
‘‘(ii) not later than 5 days after such request.
‘‘(f) An individual debtor in a case under chapter 7,
11, or 13 shall file with the court at the request of any
party in interest—
‘‘(1) at the time filed with the taxing authority,
all tax returns required under applicable law, includ-
ing any schedules or attachments, with respect to the
period from the commencement of the case until such
time as the case is closed;
‘‘(2) at the time filed with the taxing authority,
all tax returns required under applicable law, includ-
ing any schedules or attachments, that were not filed
with the taxing authority when the schedules under
subsection (a)(1) were filed with respect to the period
that is 3 years before the order of relief;
‘‘(3) any amendments to any of the tax returns,
including schedules or attachments, described in para-
graph (1) or (2); and
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‘‘(4) in a case under chapter 13, a statement
subject to the penalties of perjury by the debtor of the
debtor’s income and expenditures in the preceding tax
year and monthly income, that shows how the
amounts are calculated—
‘‘(A) beginning on the date that is the later
of 90 days after the close of the debtor’s tax year
or 1 year after the order for relief, unless a plan
has been confirmed; and
‘‘(B) thereafter, on or before the date that is
45 days before each anniversary of the confirma-
tion of the plan until the case is closed.
‘‘(g)(1) A statement referred to in subsection (f)(4)
shall disclose—
‘‘(A) the amount and sources of income of the
debtor;
‘‘(B) the identity of any person responsible with
the debtor for the support of any dependent of the
debtor; and
‘‘(C) the identity of any person who contributed,
and the amount contributed, to the household in
which the debtor resides.
‘‘(2) The tax returns, amendments, and statement of
income and expenditures described in paragraph (1) shall
be available to the United States trustee, any bankruptcy
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administrator, any trustee, and any party in interest for
inspection and copying, subject to the requirements of sub-
section (h).
‘‘(h)(1) Not later than 30 days after the date of enact-
ment of the Bankruptcy Reform Act of 2000, the Director
of the Administrative Office of the United States Courts
shall establish procedures for safeguarding the confiden-
tiality of any tax information required to be provided
under this section.
‘‘(2) The procedures under paragraph (1) shall include
restrictions on creditor access to tax information that is re-
quired to be provided under this section.
‘‘(3) Not later than 1 year after the date of enactment
of the Bankruptcy Reform Act of 2000, the Director of the
Administrative Office of the United States Courts shall pre-
pare and submit to Congress a report that—
‘‘(A) assesses the effectiveness of the procedures
under paragraph (1); and
‘‘(B) if appropriate, includes proposed legisla-
tion to—
‘‘(i) further protect the confidentiality of tax
information; and
‘‘(ii) provide penalties for the improper use
by any person of the tax information required to
be provided under this section.
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‘‘(i) If requested by the United States trustee or a
trustee serving in the case, the debtor shall provide—
‘‘(1) a document that establishes the identity of
the debtor, including a driver’s license, passport, or
other document that contains a photograph of the
debtor; and
‘‘(2) such other personal identifying information
relating to the debtor that establishes the identity of
the debtor.’’.
SEC. 316. DISMISSAL FOR FAILURE TO TIMELY FILE SCHED-
ULES OR PROVIDE REQUIRED INFORMATION.
Section 521 of title 11, United States Code, as amend-
ed by section 315 of this Act, is amended by adding at the
end the following:
‘‘(j)(1) Notwithstanding section 707(a), and subject to
paragraph (2), if an individual debtor in a voluntary case
under chapter 7 or 13 fails to file all of the information
required under subsection (a)(1) within 45 days after the
filing of the petition commencing the case, the case shall
be automatically dismissed effective on the 46th day after
the filing of the petition.
‘‘(2) With respect to a case described in paragraph (1),
any party in interest may request the court to enter an
order dismissing the case. If requested, the court shall enter
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an order of dismissal not later than 5 days after such re-
quest.
‘‘(3) Upon request of the debtor made within 45 days
after the filing of the petition commencing a case described
in paragraph (1), the court may allow the debtor an addi-
tional period of not to exceed 45 days to file the information
required under subsection (a)(1) if the court finds justifica-
tion for extending the period for the filing.’’.
SEC. 317. ADEQUATE TIME TO PREPARE FOR HEARING ON
CONFIRMATION OF THE PLAN.
(a) HEARING.—Section 1324 of title 11, United States
Code, is amended—
(1) by striking ‘‘After’’ and inserting the fol-
lowing:
‘‘(a) Except as provided in subsection (b) and after’’;
and
(2) by adding at the end the following:
‘‘(b) The hearing on confirmation of the plan may be
held not later than 45 days after the meeting of creditors
under section 341(a).’’.
(b) FILING OF PLAN.—Section 1321 of title 11, United
States Code, is amended to read as follows:
‘‘§ 1321. Filing of plan
‘‘Not later than 90 days after the order for relief under
this chapter, the debtor shall file a plan, except that the
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court may extend such period if the need for an extension
is attributable to circumstances for which the debtor should
not justly be held accountable.’’.
SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION
IN CERTAIN CASES.
Section 1322(d) of title 11, United States Code, is
amended to read as follows:
‘‘(d)(1) Except as provided in paragraph (2), the plan
may not provide for payments over a period that is longer
than 3 years.
‘‘(2) The plan may provide for payments over a period
that is longer than 3 years if—
‘‘(A) the plan is for a case that was converted to
a case under this chapter from a case under chapter
7, or the plan is for a debtor who has been dismissed
from chapter 7 by reason of section 707(b), in which
case the plan shall provide for payments over a pe-
riod of 5 years; or
‘‘(B) the plan is for a case that is not described
in subparagraph (A), and the court, for cause, ap-
proves a period longer than 3 years, but not to exceed
5 years.’’.
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SEC. 319. SENSE OF THE CONGRESS REGARDING EXPAN-
SION OF RULE 9011 OF THE FEDERAL RULES
OF BANKRUPTCY PROCEDURE.
It is the sense of Congress that Rule 9011 of the Federal
Rules of Bankruptcy Procedure (11 U.S.C. App.) should be
modified to include a requirement that all documents (in-
cluding schedules), signed and unsigned, submitted to the
court or to a trustee by debtors who represent themselves
and debtors who are represented by an attorney be sub-
mitted only after the debtor or the debtor’s attorney has
made reasonable inquiry to verify that the information con-
tained in such documents is—
(1) well grounded in fact; and
(2) warranted by existing law or a good-faith ar-
gument for the extension, modification, or reversal of
existing law.
SEC. 320. PROMPT RELIEF FROM STAY IN INDIVIDUAL
CASES.
Section 362(e) of title 11, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(e)’’; and
(2) by adding at the end the following:
‘‘(2) Notwithstanding paragraph (1), in the case of an
individual filing under chapter 7, 11, or 13, the stay under
subsection (a) shall terminate on the date that is 60 days
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after a request is made by a party in interest under sub-
section (d), unless—
‘‘(A) a final decision is rendered by the court
during the 60-day period beginning on the date of the
request; or
‘‘(B) that 60-day period is extended—
‘‘(i) by agreement of all parties in interest;
or
‘‘(ii) by the court for such specific period of
time as the court finds is required for good
cause, as described in findings made by the
court.’’.
SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.
(a) PROPERTY OF THE ESTATE.—
(1) IN GENERAL.—Subchapter I of chapter 11 of
title 11, United States Code, is amended by adding
at the end the following:
‘‘§ 1115. Property of the estate
‘‘In a case concerning an individual, property of the
estate includes, in addition to the property specified in sec-
tion 541—
‘‘(1) all property of the kind specified in section
541 that the debtor acquires after the commencement
of the case but before the case is closed, dismissed, or
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converted to a case under chapter 7, 12, or 13, which-
ever occurs first; and
‘‘(2) earnings from services performed by the
debtor after the commencement of the case but before
the case is closed, dismissed, or converted to a case
under chapter 7, 12, or 13, whichever occurs first.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 11 of title 11, United States Code,
is amended by adding at the end of the matter relat-
ing to subchapter I the following:
‘‘1115. Property of the estate.’’.
(b) CONTENTS OF PLAN.—Section 1123(a) of title 11,
United States Code, is amended—
(1) in paragraph (6), by striking ‘‘and’’ at the
end;
(2) in paragraph (7), by striking the period and
inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(8) in a case concerning an individual, provide
for the payment to creditors through the plan of all
or such portion of earnings from personal services
performed by the debtor after the commencement of
the case or other future income of the debtor as is nec-
essary for the execution of the plan.’’.
(c) CONFIRMATION OF PLAN.—
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(1) REQUIREMENTS
RELATING
TO
VALUE
OF
PROPERTY.—Section 1129(a) of title 11, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘(14) In a case concerning an individual in
which the holder of an allowed unsecured claim ob-
jects to the confirmation of the plan—
‘‘(A) the value of the property to be distrib-
uted under the plan on account of such claim is,
as of the effective date of the plan, not less than
the amount of such claim; or
‘‘(B) the value of the property to be distrib-
uted under the plan is not less than the debtor’s
projected disposable income (as that term is de-
fined in section 1325(b)(2)) to be received during
the 3-year period beginning on the date that the
first payment is due under the plan, or during
the term of the plan, whichever is longer.’’.
(2) REQUIREMENT RELATING TO INTERESTS IN
PROPERTY.—Section 1129(b)(2)(B)(ii) of title 11,
United States Code, is amended by inserting before
the period at the end the following: ‘‘, except that in
a case concerning an individual, the debtor may re-
tain property included in the estate under section
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1115, subject to the requirements of subsection
(a)(14)’’.
(d) EFFECT OF CONFIRMATION—Section 1141(d) of
title 11, United States Code, is amended—
(1) in paragraph (2), by striking ‘‘The confirma-
tion of a plan does not discharge an individual debt-
or’’ and inserting ‘‘A discharge under this chapter
does not discharge a debtor’’; and
(2) by adding at the end the following:
‘‘(5) In a case concerning an individual—
‘‘(A) except as otherwise ordered for cause shown,
the discharge is not effective until completion of all
payment under the plan; and
‘‘(B) at any time after the confirmation of the
plan and after notice and a hearing, the court may
grant a discharge to a debtor that has not completed
payments under the plan only if—
‘‘(i) for each allowed unsecured claim, the
value as of the effective date of the plan, of prop-
erty actually distributed under the plan on ac-
count of that claim is not less than the amount
that would have been paid on such claim if the
estate of the debtor had been liquidated under
chapter 7 of this title on such date; and
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‘‘(ii) modification of the plan under 1127 of
this title is not practicable.’’.
(e) MODIFICATION OF PLAN.—Section 1127 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(e) In a case concerning an individual, the plan may
be modified at any time after confirmation of the plan but
before the completion of payments under the plan, whether
or not the plan has been substantially consummated, upon
request of the debtor, the trustee, the United States trustee,
or the holder of an allowed unsecured claim, to—
‘‘(1) increase or reduce the amount of payments
on claims of a particular class provided for by the
plan;
‘‘(2) extend or reduce the time period for such
payments; or
‘‘(3) alter the amount of the distribution to a
creditor whose claim is provided for by the plan to
the extent necessary to take account of any payment
of such claim made other than under the plan.
‘‘(f)(1) Sections 1121 through 1128 of this title and
the requirements of section 1129 of this title apply to any
modification under subsection (a).
‘‘(2) The plan, as modified, shall become the plan only
after there has been disclosure under section 1125, as the
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court may direct, notice and a hearing, and such modifica-
tion is approved.’’.
SEC. 322. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICI-
PANT CONTRIBUTIONS AND OTHER PROP-
ERTY FROM THE ESTATE.
(a) IN GENERAL.—Section 541(b) of title 11, United
States Code, as amended by section 903 of this Act, is
amended—
(1) by striking ‘‘or’’ at the end of paragraph (5);
(2) by redesignating paragraph (6) as para-
graph (7); and
(3) by inserting after paragraph (5) the fol-
lowing:
‘‘(6) any amount—
‘‘(A) withheld by an employer from the
wages of employees for payment as contributions
to—
‘‘(i) an employee benefit plan subject to
title I of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1001 et
seq.); or
‘‘(ii) a health insurance plan regulated
by State law whether or not subject to such
title; or
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‘‘(B) received by the employer from employ-
ees for payment as contributions to—
‘‘(i) an employee benefit plan subject to
title I of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1001 et
seq.); or
‘‘(ii) a health insurance plan regulated
by State law whether or not subject to such
title;’’.
(b) APPLICATION OF AMENDMENT.—The amendment
made by this section shall not apply to cases commenced
under title 11, United States Code, before the expiration
of the 180-day period beginning on the date of the enact-
ment of this Act.
SEC. 323. CLARIFICATION OF POSTPETITION WAGES AND
BENEFITS.
Section 503(b)(1)(A) of title 11, United States Code,
is amended to read as follows:
‘‘(A) the actual, necessary costs and expenses of
preserving the estate, including wages, salaries, or
commissions for services rendered after the commence-
ment of the case, and wages and benefits awarded as
back pay attributable to any period of time after com-
mencement of the case as a result of the debtor’s viola-
tion of Federal or State law, without regard to when
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the original unlawful act occurred or to whether any
services were rendered;’’.
SEC. 324. LIMITATION.
(a) EXEMPTIONS.—Section 522 of title 11, United
States Code, as amended by sections 224 and 307 of this
Act, is amended—
(1) in subsection (b)(3)(A), by inserting ‘‘subject
to subsection (n),’’ before ‘‘any property’’; and
(2) by adding at the end the following:
‘‘(n)(1) Except as provided in paragraph (2), as a re-
sult of electing under subsection (b)(3)(A) to exempt prop-
erty under State or local law, a debtor may not exempt
any amount of interest that exceeds in the aggregate
$100,000 in value in—
‘‘(A) real or personal property that the debtor or
a dependent of the debtor uses as a residence;
‘‘(B) a cooperative that owns property that the
debtor or a dependent of the debtor uses as a resi-
dence; or
‘‘(C) a burial plot for the debtor or a dependent
of the debtor.
‘‘(2) The limitation under paragraph (1) shall not
apply to an exemption claimed under subsection (b)(3)(A)
by a family farmer for the principal residence of that farm-
er.’’.
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(b) ADJUSTMENT
OF DOLLAR AMOUNTS.—Section
104(b) of title 11, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘522(d),’’ and
inserting ‘‘522 (d) or (n),’’; and
(2) in paragraph (3), by striking ‘‘522(d),’’ and
inserting ‘‘522 (d) or (n),’’.
SEC. 325. EXCLUSIVE JURISDICTION IN MATTERS INVOLV-
ING BANKRUPTCY PROFESSIONALS.
Section 1334 of title 28, United States Code, is
amended—
(1) in subsection (b) by striking ‘‘Notwith-
standing’’ and inserting ‘‘Except as provided in sub-
section (e)(2), and notwithstanding’’; and
(2) amending subsection (e) to read as follows:
‘‘(e) The district court in which a case under title 11
is commenced or is pending shall have exclusive
jurisdiction—
‘‘(1) of all the property, wherever located, of the
debtor as of the commencement of such case, and of
property of the estate; and
‘‘(2) over all claims or causes of action that in-
volve construction of section 327 of title 11, United
States Code, or rules relating to disclosure require-
ments under section 327.’’.
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SEC. 326. UNITED STATES TRUSTEE PROGRAM FILING FEE
INCREASE.
(a) ACTIONS UNDER CHAPTER 7 OR 13 OF TITLE 11,
UNITED STATES CODE.—Section 1930(a) of title 28,
United States Code, is amended by striking paragraph (1)
and inserting the following:
‘‘(1) For a case commenced—
‘‘(A) under chapter 7 of title 11, $160; or
‘‘(B) under chapter 13 of title 11, $150.’’.
(b) UNITED STATES TRUSTEE SYSTEM FUND.—Sec-
tion 589a(b) of title 28, United States Code, is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1)(A) 40.63 percent of the fees collected under
section 1930(a)(1)(A) of this title in cases commenced
under chapter 7 of title 11; and
‘‘(B) 70.00 percent of the fees collected under sec-
tion 1930(a)(1)(B) of this title in cases commenced
under chapter 13 of title 11;’’;
(2) in paragraph (2) by striking ‘‘one-half’’ and
inserting ‘‘three-fourths’’; and
(3) in paragraph (4) by striking ‘‘one-half’’ and
inserting ‘‘100 percent’’.
(c) COLLECTION AND DEPOSIT OF MISCELLANEOUS
BANKRUPTCY FEES.—Section 406(b) of the Judiciary Ap-
propriations Act, 1990 (28 U.S.C. 1931 note) is amended
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by striking ‘‘pursuant to 28 U.S.C. section 1930(b) and
30.76 per centum of the fees hereafter collected under 28
U.S.C. section 1930(a)(1) and 25 percent of the fees here-
after collected under 28 U.S.C. section 1930(a)(3) shall be
deposited as offsetting receipts to the fund established under
28 U.S.C. section 1931’’ and inserting ‘‘under section
1930(b) of title 28, United States Code, and 31.25 percent
of the fees collected under section 1930(a)(1)(A) of that title,
30.00 
percent 
of 
the 
fees 
collected 
under 
section
1930(a)(1)(B) of that title, and 25 percent of the fees col-
lected under section 1930(a)(3) of that title shall be depos-
ited as offsetting receipts to the fund established under sec-
tion 1931 of that title’’.
SEC. 327. COMPENSATION OF TRUSTEES IN CERTAIN CASES
UNDER CHAPTER 7 OF TITLE 11, UNITED
STATES CODE.
Section 326 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(e) In a case that has been converted under section
706, or after a case has been converted or dismissed under
section 707 or the debtor has been denied a discharge under
section 727—
‘‘(1) the court may allow reasonable compensa-
tion under section 330 for the trustee’s services ren-
dered, payable after the trustee renders services; and
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‘‘(2) any allowance made by a court under para-
graph (1) shall not be subject to the limitations under
subsection (a).’’.
SEC. 328. NONDISCHARGEABILITY OF DEBTS INCURRED
THROUGH THE COMMISSION OF VIOLENCE AT
CLINICS.
Section 523(a) of title 11, United States Code, as
amended by section 224 of this Act, is amended—
(1) in paragraph (18), by striking ‘‘or’’ at the
end;
(2) in paragraph (19)(B), by striking the period
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(20) that results from any judgment, order, con-
sent order, or decree entered in any Federal or State
court, or contained in any settlement agreement en-
tered into by the debtor, including any damages, fine,
penalty, citation, or attorney fee or cost owed by the
debtor, arising from—
‘‘(A) an actual or potential action under
section 248 of title 18;
‘‘(B) an actual or potential action under
any Federal, State, or local law, the purpose of
which is to protect—
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‘‘(i) access to a health care facility, in-
cluding a facility providing reproductive
health services, as defined in section 248(e)
of title 18 (referred to in this paragraph as
a ‘health care facility’); or
‘‘(ii) the provision of health services,
including reproductive health services (re-
ferred to in this paragraph as ‘health serv-
ices’);
‘‘(C) an actual or potential action alleging
the violation of any Federal, State, or local stat-
utory or common law, including chapter 96 of
title 18 and the Federal civil rights laws (includ-
ing sections 1977 through 1980 of the Revised
Statutes) that results from the debtor’s actual,
attempted, or alleged—
‘‘(i) harassment of, intimidation of, in-
terference with, obstruction of, injury to,
threat to, or violence against any person—
‘‘(I) because that person provides
or has provided health services;
‘‘(II) because that person is or has
been obtaining health services; or
‘‘(III) to deter that person, any
other person, or a class of persons from
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obtaining or providing health services;
or
‘‘(ii) damage or destruction of property
of a health care facility; or
‘‘(D) an actual or alleged violation of a
court order or injunction that protects access to
a health care facility or the provision of health
services.’’.
TITLE IV—GENERAL AND SMALL
BUSINESS BANKRUPTCY PRO-
VISIONS
Subtitle A—General Business
Bankruptcy Provisions
SEC. 401. ROLLING STOCK EQUIPMENT.
(a) IN GENERAL.—Section 1168 of title 11, United
States Code, is amended to read as follows:
‘‘§ 1168. Rolling stock equipment
‘‘(a)(1) The right of a secured party with a security
interest in or of a lessor or conditional vendor of equipment
described in paragraph (2) to take possession of such equip-
ment in compliance with an equipment security agreement,
lease, or conditional sale contract, and to enforce any of
its other rights or remedies under such security agreement,
lease, or conditional sale contract, to sell, lease, or otherwise
retain or dispose of such equipment, is not limited or other-
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wise affected by any other provision of this title or by any
power of the court, except that the right to take possession
and enforce those other rights and remedies shall be subject
to section 362, if—
‘‘(A) before the date that is 60 days after the
date of commencement of a case under this chapter,
the trustee, subject to the court’s approval, agrees to
perform all obligations of the debtor under such secu-
rity agreement, lease, or conditional sale contract;
and
‘‘(B) any default, other than a default of a kind
described in section 365(b)(2), under such security
agreement, lease, or conditional sale contract that—
‘‘(i) occurs before the date of commencement
of the case and is an event of default therewith
is cured before the expiration of such 60-day pe-
riod;
‘‘(ii) occurs or becomes an event of default
after the date of commencement of the case and
before the expiration of such 60-day period is
cured before the later of—
‘‘(I) the date that is 30 days after the
date of the default or event of the default; or
‘‘(II) the expiration of such 60-day pe-
riod; and
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‘‘(iii) occurs on or after the expiration of
such 60-day period is cured in accordance with
the terms of such security agreement, lease, or
conditional sale contract, if cure is permitted
under that agreement, lease, or conditional sale
contract.
‘‘(2) The equipment described in this paragraph—
‘‘(A) is rolling stock equipment or accessories
used on rolling stock equipment, including super-
structures or racks, that is subject to a security inter-
est granted by, leased to, or conditionally sold to a
debtor; and
‘‘(B) includes all records and documents relating
to such equipment that are required, under the terms
of the security agreement, lease, or conditional sale
contract, to be surrendered or returned by the debtor
in connection with the surrender or return of such
equipment.
‘‘(3) Paragraph (1) applies to a secured party, lessor,
or conditional vendor acting in its own behalf or acting
as trustee or otherwise in behalf of another party.
‘‘(b) The trustee and the secured party, lessor, or condi-
tional vendor whose right to take possession is protected
under subsection (a) may agree, subject to the court’s ap-
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proval, to extend the 60-day period specified in subsection
(a)(1).
‘‘(c)(1) In any case under this chapter, the trustee shall
immediately surrender and return to a secured party, les-
sor, or conditional vendor, described in subsection (a)(1),
equipment described in subsection (a)(2), if at any time
after the date of commencement of the case under this chap-
ter such secured party, lessor, or conditional vendor is enti-
tled under subsection (a)(1) to take possession of such equip-
ment and makes a written demand for such possession of
the trustee.
‘‘(2) At such time as the trustee is required under
paragraph (1) to surrender and return equipment described
in subsection (a)(2), any lease of such equipment, and any
security agreement or conditional sale contract relating to
such equipment, if such security agreement or conditional
sale contract is an executory contract, shall be deemed re-
jected.
‘‘(d) With respect to equipment first placed in service
on or before October 22, 1994, for purposes of this section—
‘‘(1) the term ‘lease’ includes any written agree-
ment with respect to which the lessor and the debtor,
as lessee, have expressed in the agreement or in a sub-
stantially contemporaneous writing that the agree-
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ment is to be treated as a lease for Federal income
tax purposes; and
‘‘(2) the term ‘security interest’ means a pur-
chase-money equipment security interest.
‘‘(e) With respect to equipment first placed in service
after October 22, 1994, for purposes of this section, the term
‘rolling stock equipment’ includes rolling stock equipment
that is substantially rebuilt and accessories used on such
equipment.’’.
(b) AIRCRAFT EQUIPMENT
AND VESSELS.—Section
1110 of title 11, United States Code, is amended to read
as follows:
‘‘§ 1110. Aircraft equipment and vessels
‘‘(a)(1) Except as provided in paragraph (2) and sub-
ject to subsection (b), the right of a secured party with a
security interest in equipment described in paragraph (3),
or of a lessor or conditional vendor of such equipment, to
take possession of such equipment in compliance with a se-
curity agreement, lease, or conditional sale contract, and
to enforce any of its other rights or remedies, under such
security agreement, lease, or conditional sale contract, to
sell, lease, or otherwise retain or dispose of such equipment,
is not limited or otherwise affected by any other provision
of this title or by any power of the court.
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‘‘(2) The right to take possession and to enforce the
other rights and remedies described in paragraph (1) shall
be subject to section 362 if—
‘‘(A) before the date that is 60 days after the
date of the order for relief under this chapter, the
trustee, subject to the approval of the court, agrees to
perform all obligations of the debtor under such secu-
rity agreement, lease, or conditional sale contract;
and
‘‘(B) any default, other than a default of a kind
specified in section 365(b)(2), under such security
agreement, lease, or conditional sale contract that
occurs—
‘‘(i) before the date of the order is cured be-
fore the expiration of such 60-day period;
‘‘(ii) after the date of the order and before
the expiration of such 60-day period is cured be-
fore the later of—
‘‘(I) the date that is 30 days after the
date of the default; or
‘‘(II) the expiration of such 60-day pe-
riod; and
‘‘(iii) on or after the expiration of such 60-
day period is cured in compliance with the terms
of such security agreement, lease, or conditional
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sale contract, if a cure is permitted under that
agreement, lease, or contract.
‘‘(3) The equipment described in this paragraph—
‘‘(A) is—
‘‘(i) an aircraft, aircraft engine, propeller,
appliance, or spare part (as defined in section
40102 of title 49) that is subject to a security in-
terest granted by, leased to, or conditionally sold
to a debtor that, at the time such transaction is
entered into, holds an air carrier operating cer-
tificate issued under chapter 447 of title 49 for
aircraft capable of carrying 10 or more individ-
uals or 6,000 pounds or more of cargo; or
‘‘(ii) a documented vessel (as defined in sec-
tion 30101(1) of title 46) that is subject to a se-
curity interest granted by, leased to, or condi-
tionally sold to a debtor that is a water carrier
that, at the time such transaction is entered into,
holds a certificate of public convenience and ne-
cessity or permit issued by the Department of
Transportation; and
‘‘(B) includes all records and documents relating
to such equipment that are required, under the terms
of the security agreement, lease, or conditional sale
contract, to be surrendered or returned by the debtor
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‘‘(d) With respect to equipment first placed in service
on or before October 22, 1994, for purposes of this section—
‘‘(1) the term ‘lease’ includes any written agree-
ment with respect to which the lessor and the debtor,
as lessee, have expressed in the agreement or in a sub-
stantially contemporaneous writing that the agree-
ment is to be treated as a lease for Federal income
tax purposes; and
‘‘(2) the term ‘security interest’ means a pur-
chase-money equipment security interest.’’.
SEC. 402. ADEQUATE PROTECTION FOR INVESTORS.
(a) DEFINITION.—Section 101 of title 11, United
States Code, as amended by section 306(c) of this Act, is
amended by inserting after paragraph (48) the following:
‘‘(48A) ‘securities self regulatory organization’
means either a securities association registered with
the Securities and Exchange Commission under sec-
tion 15A of the Securities Exchange Act of 1934 (15
U.S.C. 78o–3) or a national securities exchange reg-
istered with the Securities and Exchange Commission
under section 6 of the Securities Exchange Act of
1934 (15 U.S.C. 78f);’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, as amended by section 311 of this Act,
is amended—
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(1) in paragraph (24), by striking ‘‘or’’ at the
end;
(2) in paragraph (25), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by inserting after paragraph (25) the fol-
lowing:
‘‘(26) under subsection (a), of—
‘‘(A) the commencement or continuation of
an investigation or action by a securities self
regulatory organization to enforce such organiza-
tion’s regulatory power;
‘‘(B) the enforcement of an order or deci-
sion, other than for monetary sanctions, obtained
in an action by the securities self regulatory or-
ganization to enforce such organization’s regu-
latory power; or
‘‘(C) any act taken by the securities self reg-
ulatory organization to delist, delete, or refuse to
permit quotation of any stock that does not meet
applicable regulatory requirements.’’.
SEC. 403. MEETINGS OF CREDITORS AND EQUITY SECURITY
HOLDERS.
Section 341 of title 11, United States Code, is amended
by adding at the end the following:
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‘‘(e) Notwithstanding subsections (a) and (b), the
court, on the request of a party in interest and after notice
and a hearing, for cause may order that the United States
trustee not convene a meeting of creditors or equity security
holders if the debtor has filed a plan as to which the debtor
solicited acceptances prior to the commencement of the
case.’’.
SEC. 404. PROTECTION OF REFINANCE OF SECURITY INTER-
EST.
Subparagraphs (A), (B), and (C) of section 547(e)(2)
of title 11, United States Code, are each amended by strik-
ing ‘‘10’’ each place it appears and inserting ‘‘30’’.
SEC. 
405. 
EXECUTORY 
CONTRACTS 
AND 
UNEXPIRED
LEASES.
Section 365(d)(4) of title 11, United States Code, is
amended to read as follows:
‘‘(4)(A) Subject to subparagraph (B), in any case
under any chapter of this title, an unexpired lease of non-
residential real property under which the debtor is the lessee
shall be deemed rejected and the trustee shall immediately
surrender that nonresidential real property to the lessor if
the trustee does not assume or reject the unexpired lease by
the earlier of—
‘‘(i) the date that is 120 days after the date of
the order for relief; or
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‘‘(ii) the date of the entry of an order confirming
a plan.
‘‘(B) The court may extend the period determined
under subparagraph (A) only upon a motion of the lessor.’’.
SEC. 406. CREDITORS AND EQUITY SECURITY HOLDERS
COMMITTEES.
(a) APPOINTMENT.—Section 1102(a)(2) of title 11,
United States Code, is amended by inserting before the first
sentence the following: ‘‘On its own motion or on request
of a party in interest, and after notice and hearing, the
court may order a change in the membership of a committee
appointed under this subsection, if the court determines that
the change is necessary to ensure adequate representation
of creditors or equity security holders. The court may in-
crease the number of members of a committee to include
a creditor that is a small business concern (as described
in section 3(a)(1) of the Small Business Act (15 U.S.C.
632(a)(1))), if the court determines that the creditor holds
claims (of the kind represented by the committee) the aggre-
gate amount of which, in comparison to the annual gross
revenue of that creditor, is disproportionately large.’’.
(b) INFORMATION.—Section 1102(b) of title 11, United
States Code, is amended by adding at the end the following:
‘‘(3) A committee appointed under subsection (a)
shall—
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‘‘(A) provide access to information for creditors
who—
‘‘(i) hold claims of the kind represented by
that committee; and
‘‘(ii) are not appointed to the committee;
‘‘(B) solicit and receive comments from the credi-
tors described in subparagraph (A); and
‘‘(C) be subject to a court order that compels any
additional report or disclosure to be made to the
creditors described in subparagraph (A).’’.
SEC. 407. AMENDMENT TO SECTION 546 OF TITLE 11,
UNITED STATES CODE.
Section 546 of title 11, United States Code, is
amended—
(1) by redesignating the second subsection des-
ignated as subsection (g) (as added by section 222(a)
of Public Law 103–394) as subsection (i); and
(2) by adding at the end the following:
‘‘(j)(1) Notwithstanding section 545 (2) and (3), the
trustee may not avoid a warehouseman’s lien for storage,
transportation or other costs incidental to the storage and
handling of goods.
‘‘(2) The prohibition under paragraph (1) shall be ap-
plied in a manner consistent with any applicable State
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statute that is similar to section 7–209 of the Uniform Com-
mercial Code.’’.
SEC. 408. LIMITATION.
Section 546(c)(1)(B) of title 11, United States Code,
is amended by striking ‘‘20’’ and inserting ‘‘45’’.
SEC. 409. AMENDMENT TO SECTION 330(a) OF TITLE 11,
UNITED STATES CODE.
Section 330(a)(3) of title 11, United States Code, is
amended—
(1) by striking ‘‘(A) the; and inserting ‘‘(i) the’’;
(2) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’;
(3) by striking ‘‘(C)’’ and inserting ‘‘(iii)’’;
(4) by striking ‘‘(D)’’ and inserting ‘‘(iv)’’;
(5) by striking ‘‘(E)’’ and inserting ‘‘(v)’’;
(6) in subparagraph (A), by inserting ‘‘to an ex-
aminer, trustee under chapter 11, or professional per-
son’’ after ‘‘awarded’’; and
(7) by adding at the end the following:
‘‘(B) In determining the amount of reasonable com-
pensation to be awarded a trustee, the court shall treat such
compensation as a commission based on the results
achieved.’’.
SEC. 410. POSTPETITION DISCLOSURE AND SOLICITATION.
Section 1125 of title 11, United States Code, is amend-
ed by adding at the end the following:
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‘‘(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 applica-
ble nonbankruptcy law and if such holder was solicited be-
fore the commencement of the case in a manner complying
with applicable nonbankruptcy law.’’.
SEC. 411. PREFERENCES.
Section 547(c) of title 11, United States Code, is
amended—
(1) by striking paragraph (2) and inserting the
following:
‘‘(2) to the extent that such transfer was in pay-
ment of a debt incurred by the debtor in the ordinary
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:
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‘‘(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 $5,000.’’.
SEC. 412. VENUE OF CERTAIN PROCEEDINGS.
Section 1409(b) 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. 413. PERIOD FOR FILING PLAN UNDER CHAPTER 11.
Section 1121(d) of title 11, United States Code, is
amended—
(1) by striking ‘‘On’’ and inserting ‘‘(1) Subject
to paragraph (1), on’’; and
(2) by adding at the end the following:
‘‘(2)(A) The 120-day period specified in paragraph (1)
may not be extended beyond a date that is 18 months after
the date of the order for relief under this chapter.
‘‘(B) The 180-day period specified in paragraph (1)
may not be extended beyond a date that is 20 months after
the date of the order for relief under this chapter.’’.
SEC. 414. FEES ARISING FROM CERTAIN OWNERSHIP INTER-
ESTS.
Section 523(a)(16) of title 11, United States Code, is
amended—
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(1) by striking ‘‘dwelling’’ the first place it ap-
pears;
(2) by striking ‘‘ownership or’’ and inserting
‘‘ownership,’’;
(3) by striking ‘‘housing’’ the first place it ap-
pears; and
(4) by striking ‘‘but only’’ and all that follows
through ‘‘but nothing in this paragraph’’ and insert-
ing ‘‘or a lot in a homeowners association, for as long
as the debtor or the trustee has a legal, equitable, or
possessory ownership interest in such unit, such cor-
poration, or such lot, and until such time as the debt-
or or trustee has surrendered any legal, equitable or
possessory interest in such unit, such corporation, or
such lot, but nothing in this paragraph’’.
SEC. 415. CREDITOR REPRESENTATION AT FIRST MEETING
OF CREDITORS.
Section 341(c) of title 11, United States Code, is
amended by inserting after the first sentence the following:
‘‘Notwithstanding any local court rule, provision of a State
constitution, any other Federal or State law that is not a
bankruptcy law, or other requirement that representation
at the meeting of creditors under subsection (a) be by an
attorney, a creditor holding a consumer debt or any rep-
resentative of the creditor (which may include an entity or
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an employee of an entity and may be a representative for
more than 1 creditor) shall be permitted to appear at and
participate in the meeting of creditors in a case under chap-
ter 7 or 13, either alone or in conjunction with an attorney
for the creditor. Nothing in this subsection shall be con-
strued to require any creditor to be represented by an attor-
ney at any meeting of creditors.’’.
SEC. 416. DEFINITION OF DISINTERESTED PERSON.
Section 101(14) of title 11, United States Code, is
amended to read as follows:
‘‘(14) ‘disinterested person’ means a person
that—
‘‘(A) is not a creditor, an equity security
holder, or an insider;
‘‘(B) is not and was not, within 2 years be-
fore the date of the filing of the petition, a direc-
tor, officer, or employee of the debtor; and
‘‘(C) does not have an interest materially
adverse to the interest of the estate or of any
class of creditors or equity security holders, by
reason of any direct or indirect relationship to,
connection with, or interest in, the debtor, or for
any other reason;’’.
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SEC. 417. FACTORS FOR COMPENSATION OF PROFESSIONAL
PERSONS.
Section 330(a)(3)(A) of title 11, United States Code,
as amended by section 409 of this Act, is amended—
(1) in clause (i), by striking ‘‘and’’ at the end;
(2) by redesignating clause (v) as clause (vi);
and
(3) by inserting after clause (iv) the following:
‘‘(v) with respect to a professional person, wheth-
er the person is board certified or otherwise has dem-
onstrated skill and experience in the bankruptcy
field;’’.
SEC. 418. APPOINTMENT OF ELECTED TRUSTEE.
Section 1104(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)(A) If an eligible, disinterested trustee is elected
at a meeting of creditors under paragraph (1), the United
States trustee shall file a report certifying that election.
‘‘(B) Upon the filing of a report under subparagraph
(A)—
‘‘(i) the trustee elected under paragraph (1) shall
be considered to have been selected and appointed for
purposes of this section; and
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‘‘(ii) the service of any trustee appointed under
subsection (d) shall terminate.
‘‘(C) In the case of any dispute arising out of an elec-
tion described in subparagraph (A), the court shall resolve
the dispute.’’.
SEC. 419. UTILITY SERVICE.
Section 366 of title 11, United States Code, is
amended—
(1) in subsection (a), by striking ‘‘subsection (b)’’
and inserting ‘‘subsections (b) and (c)’’; and
(2) by adding at the end the following:
‘‘(c)(1)(A) For purposes of this subsection, the term
‘assurance of payment’ means—
‘‘(i) a cash deposit;
‘‘(ii) a letter of credit;
‘‘(iii) a certificate of deposit;
‘‘(iv) a surety bond;
‘‘(v) a prepayment of utility consumption; or
‘‘(vi) another form of security that is mutually
agreed on between the utility and the debtor or the
trustee.
‘‘(B) For purposes of this subsection an administrative
expense priority shall not constitute an assurance of pay-
ment.
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‘‘(2) Subject to paragraphs (3) through (5), with re-
spect to a case filed under chapter 11, a utility referred
to in subsection (a) may alter, refuse, or discontinue utility
service, if during the 20-day period beginning on the date
of filing of the petition, the utility does not receive from
the debtor or the trustee adequate assurance of payment for
utility service that is satisfactory to the utility.
‘‘(3)(A) On request of a party in interest and after
notice and a hearing, the court may order modification of
the amount of an assurance of payment under paragraph
(2).
‘‘(B) In making a determination under this paragraph
whether an assurance of payment is adequate, the court
may not consider—
‘‘(i) the absence of security before the date of fil-
ing of the petition;
‘‘(ii) the payment by the debtor of charges for
utility service in a timely manner before the date of
filing of the petition; or
‘‘(iii) the availability of an administrative ex-
pense priority.
‘‘(4) Notwithstanding any other provision of law, with
respect to a case subject to this subsection, a utility may
recover or set off against a security deposit provided to the
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utility by the debtor before the date of filing of the petition
without notice or order of the court.’’.
SEC. 420. BANKRUPTCY FEES.
Section 1930 of title 28, United States Code, is
amended—
(1) in subsection (a), by striking ‘‘Notwith-
standing section 1915 of this title, the parties’’ and
inserting ‘‘Subject to subsection (f), the parties’’; and
(2) by adding at the end the following:
‘‘(f)(1) The Judicial Conference of the United States
shall prescribe procedures for waiving fees under this sub-
section.
‘‘(2) Under the procedures described in paragraph (1),
the district court or the bankruptcy court may waive a fil-
ing fee described in paragraph (3) for a case commenced
under chapter 7 of title 11 if the court determines that an
individual debtor whose income is less than 125 percent of
the income official poverty line (as defined by the Office
of Management and Budget, and revised annually in ac-
cordance with section 673(2) of the Omnibus Budget Rec-
onciliation Act of 1981) applicable to a family of the size
involved is unable to pay that fee in installments.
‘‘(3) A filing fee referred to in paragraph (2) is—
‘‘(A) a filing fee under subsection (a)(1); or
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‘‘(B) any other fee prescribed by the Judicial
Conference of the United States under subsection (b)
that is payable to the clerk of the district court or the
clerk of the bankruptcy court upon the commencement
of a case under chapter 7 of title 11.
‘‘(4) In addition to waiving a fee under paragraph
(2), the district court or the bankruptcy court may waive
any other fee prescribed under subsection (b) or (c) if the
court determines that the individual with an income at a
level described in paragraph (2) is unable to pay that fee
in installments.’’.
SEC. 421. MORE COMPLETE INFORMATION REGARDING AS-
SETS OF THE ESTATE.
(a) IN GENERAL.—
(1) DISCLOSURE.—The Advisory Committee on
Bankruptcy Rules of the Judicial Conference of the
United States, after consideration of the views of the
Director of the Executive Office for the United States
Trustees, shall propose for adoption amended Federal
Rules of Bankruptcy Procedure and Official Bank-
ruptcy Forms directing debtors under chapter 11 of
title 11, United States Code, to disclose the informa-
tion described in paragraph (2) by filing and serving
periodic financial and other reports designed to pro-
vide such information.
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(2) INFORMATION.—The information referred to
in paragraph (1) is the value, operations, and profit-
ability of any closely held corporation, partnership,
or of any other entity in which the debtor holds a sub-
stantial or controlling interest.
(b) PURPOSE.—The purpose of the rules and reports
under subsection (a) shall be to assist parties in interest
taking steps to ensure that the debtor’s interest in any enti-
ty referred to in subsection (a)(2) is used for the payment
of allowed claims against debtor.
Subtitle B—Small Business
Bankruptcy Provisions
SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT
AND PLAN.
Section 1125 of title 11, United States Code, is amend-
ed by striking subsection (f) and inserting the following:
‘‘(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 ad-
ditional information to creditors and other parties in
interest, and the cost of providing additional infor-
mation;
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‘‘(2) the court may determine that the plan itself
provides adequate information and that a separate
disclosure statement is not necessary;
‘‘(3) the court may approve a disclosure state-
ment submitted on standard forms approved by the
court or adopted under section 2075 of title 28; and
‘‘(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 disclosure
statement if the debtor provides adequate information
to each holder of a claim or interest that is solicited,
but a conditionally approved disclosure statement
shall be mailed not later than 20 days before 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. 432. DEFINITIONS; EFFECT OF DISCHARGE.
(a) DEFINITIONS.—Section 101 of title 11, United
States Code, as amended by section 402 of this Act, is
amended by striking paragraph (51C) and inserting the fol-
lowing:
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‘‘(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’—
‘‘(A) subject to subparagraph (B), means a
person (including any affiliate of such person
that is also a debtor under this title and exclud-
ing a person whose primary activity is the busi-
ness of owning and operating real property and
activities incidental thereto) that has aggregate
noncontingent, liquidated secured and unsecured
debts as of the date of the petition or the order
for relief in an amount not more than
$3,000,000 (excluding debts owed to 1 or more
affiliates or insiders) for a case in which the
United States trustee has appointed under sec-
tion 1102(a)(1) a committee of unsecured credi-
tors that the court has determined is sufficiently
active and representative to provide effective
oversight of the debtor; and
‘‘(B) does not include any member of a
group of affiliated debtors that has aggregate
noncontingent liquidated secured and unsecured
debts in an amount greater than $4,000,000 (ex-
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cluding debt owed to 1 or more affiliates or in-
siders);’’.
(b) CONFORMING AMENDMENT.—Section 1102(a)(3) of
title 11, United States Code, is amended by inserting ‘‘debt-
or’’ after ‘‘small business’’.
SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND
PLAN.
Within a reasonable period of time after the date of
the enactment of this Act, the Advisory Committee on Bank-
ruptcy Rules of the Judicial Conference of the United States
shall propose for adoption standard form disclosure state-
ments and plans of reorganization for small business debt-
ors (as defined in section 101 of title 11, United States
Code, as amended by this Act), designed to achieve a prac-
tical balance between—
(1) the reasonable needs of the courts, the United
States trustee, creditors, and other parties in interest
for reasonably complete information; and
(2) economy and simplicity for debtors.
SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.
(a) REPORTING REQUIRED.—
(1) IN GENERAL.—Chapter 3 of title 11, United
States Code, is amended by inserting after section 307
the following:
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‘‘§ 308. Debtor reporting requirements
‘‘(1) For purposes of this section, the term ‘profit-
ability’ means, with respect to a debtor, the amount of
money that the debtor has earned or lost during current
and recent fiscal periods.
‘‘(2) A small business debtor shall file periodic finan-
cial and other reports containing information including—
‘‘(A) the debtor’s profitability;
‘‘(B) reasonable approximations of the debtor’s
projected cash receipts and cash disbursements over a
reasonable period;
‘‘(C) comparisons of actual cash receipts and
disbursements with projections in prior reports;
‘‘(D)(i) whether the debtor is—
‘‘(I) in compliance in all material respects
with postpetition requirements imposed by this
title and the Federal Rules of Bankruptcy Proce-
dure; and
‘‘(II) timely filing tax returns and other re-
quired government filings and paying taxes and
other administrative claims when due; and
‘‘(ii) if the debtor is not in compliance with the
requirements referred to in clause (i)(I) or filing tax
returns and other required government filings and
making the payments referred to in clause (i)(II),
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what the failures are and how, at what cost, and
when the debtor intends to remedy such failures; and
‘‘(iii) such other matters as are in the best inter-
ests of the debtor and creditors, and in the public in-
terest in fair and efficient procedures under chapter
11 of this title.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 3 of title 11, United States Code, is
amended by inserting after the item relating to sec-
tion 307 the following:
‘‘308. Debtor reporting requirements.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect 60 days after the date on which
rules are prescribed under section 2075 of 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. 435. UNIFORM REPORTING RULES AND FORMS FOR
SMALL BUSINESS CASES.
(a) PROPOSAL OF 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 Procedure and Official Bank-
ruptcy Forms to be used by small business debtors to file
periodic financial and other reports containing informa-
tion, including information relating to—
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(1) the debtor’s profitability;
(2) the debtor’s cash receipts and disbursements;
and
(3) whether the debtor is timely filing tax re-
turns and paying taxes and other administrative
claims when due.
(b) PURPOSE.—The rules and forms proposed under
subsection (a) shall be designed to achieve a practical bal-
ance among—
(1) the reasonable needs of the bankruptcy court,
the United States trustee, creditors, and other parties
in interest for reasonably complete information;
(2) the small business debtor’s interest that re-
quired reports be easy and inexpensive to complete;
and
(3) the interest of all parties that the required re-
ports help the small business debtor to understand the
small business debtor’s financial condition and plan
the small business debtor’s future.
SEC. 436. DUTIES IN SMALL BUSINESS CASES.
(a) DUTIES IN CHAPTER 11 CASES.—Subchapter I of
title 11, United States Code, as amended by section 321
of this Act, is amended by adding at the end the following:
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‘‘§ 1116. 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 7 days after the date of
the order for relief—
‘‘(A) its most recent balance sheet, statement
of operations, cash-flow statement, Federal in-
come tax return; or
‘‘(B) a statement made under penalty of
perjury that no balance sheet, statement of oper-
ations, or cash-flow statement has been prepared
and no Federal tax return has been filed;
‘‘(2) attend, through its senior management per-
sonnel and counsel, meetings scheduled by the court or
the United States trustee, including initial debtor
interviews, scheduling conferences, and meetings of
creditors convened under section 341 unless the court
waives that requirement after notice and hearing,
upon a finding of extraordinary and compelling cir-
cumstances;
‘‘(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
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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) subject to section 363(c)(2), maintain insur-
ance customary and appropriate to the industry;
‘‘(6)(A) timely file tax returns and other re-
quired government filings; and
‘‘(B) subject to section 363(c)(2), timely pay all
administrative expense tax claims, except those being
contested by appropriate proceedings being diligently
prosecuted; and
‘‘(7) allow the United States trustee, or a des-
ignated representative of the United States trustee, to
inspect the debtor’s business premises, books, and
records at reasonable times, after reasonable prior
written notice, unless notice is waived by the debtor.’’.
(b) CLERICAL AMENDMENT.—The table of sections for
chapter 11 of title 11, United States Code, is amended by
adding at the end of the matter relating to subchapter I
the following:
‘‘1116. Duties of trustee or debtor in possession in small business cases.’’.
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SEC. 437. PLAN FILING AND CONFIRMATION DEADLINES.
Section 1121 of title 11, United States Code, is amend-
ed by striking subsection (e) and inserting the following:
‘‘(e) In a small business case—
‘‘(1) only the debtor may file a plan until after
180 days after the date of the order for relief, unless
that period is—
‘‘(A) extended as provided by this sub-
section, after notice and hearing; or
‘‘(B) the court, for cause, orders otherwise;
‘‘(2) the plan, and any necessary disclosure
statement, shall be filed not later than 300 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), 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 reasonable
period of time;
‘‘(B) a new deadline is imposed at the time
the extension is granted; and
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‘‘(C) the order extending time is signed be-
fore the existing deadline has expired.’’.
SEC. 438. PLAN CONFIRMATION DEADLINE.
Section 1129 of title 11, United States Code, is amend-
ed by adding at the end the following:
‘‘(e) In a small business case, the plan shall be con-
firmed not later than 175 days after the date of the order
for relief, unless such 175-day period is extended as pro-
vided in section 1121(e)(3).’’.
SEC. 439. DUTIES OF THE UNITED STATES TRUSTEE.
Section 586(a) of title 28, United States Code, is
amended—
(1) in paragraph (3)—
(A) in subparagraph (G), by striking ‘‘and’’
at the end;
(B) by redesignating subparagraph (H) as
subparagraph (I); and
(C) by inserting after subparagraph (G) the
following:
‘‘(H) in small business cases (as defined in
section 101 of title 11), performing the addi-
tional duties specified in title 11 pertaining to
such cases;’’;
(2) in paragraph (5), by striking ‘‘and’’ at the
end;