104
(1) in paragraph (17), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (18), by striking the period 
and inserting a semicolon; and 
(3) by inserting after paragraph (18) the fol-
lowing: 
‘‘(19) under subsection (a), of withholding of 
income from a debtor’s wages and collection of 
amounts withheld, under the debtor’s agreement au-
thorizing that withholding and collection for the ben-
efit of 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, 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 with-
held and collected are used solely for payments 
relating to a loan from a plan that satisfies the 
requirements of section 408(b)(1) of the Em-
ployee 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 
savings plan described in subchapter III of
105
chapter 84 of title 5, that satisfies the require-
ments of section 8433(g) of such title; 
but this paragraph may not 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) 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, as amended by section 215, 
is amended by adding at the end the following: 
‘‘(19) 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, under—
‘‘(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 
described in subchapter III of chapter 84 of 
title 5, that satisfies the requirements of section 
8433(g) of such title; 
but nothing in this paragraph may be construed to 
provide that any loan made under a governmental 
plan under section 414(d), or a contract or account
106
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)(19) and any amounts re-
quired to repay such loan shall not constitute ‘disposable 
income’ under section 1325.’’. 
(e) ASSET LIMITATION.—
(1) LIMITATION.—Section 522 of title 11, 
United States Code, is amended by adding at the 
end the following: 
‘‘(n) For assets in individual retirement accounts de-
scribed in section 408 or 408A of the Internal Revenue 
Code of 1986, other than a simplified employee pension 
under section 408(k) of that Code or a simple retirement 
account under section 408(p) of that Code, the aggregate 
value of such assets exempted under this section, without 
regard to amounts attributable to rollover contributions 
under section 402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 
403(b)(8) of the Internal Revenue Code of 1986, and 
earnings thereon, shall not exceed $1,000,000 in a case 
filed by a debtor who is an individual, except that such
107
amount may be increased if the interests of justice so re-
quire.’’. 
(2) ADJUSTMENT
OF
DOLLAR
AMOUNTS.—
Paragraphs (1) and (2) of section 104(b) of title 11, 
United States Code, are amended by inserting 
‘‘522(n),’’ after ‘‘522(d),’’. 
SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANK-
RUPTCY. 
(a) EXCLUSIONS.—Section 541 of title 11, United 
States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘or’’ at 
the end; 
(B) by redesignating paragraph (5) as 
paragraph (9); and 
(C) by inserting after paragraph (4) the 
following: 
‘‘(5) 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, 
stepdaughter, grandchild, or step-grandchild of
108
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 
‘‘(C) in the case of funds placed in all such 
accounts having the same designated bene-
ficiary 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; 
‘‘(6) funds used to purchase a tuition credit or 
certificate or contributed to an account in accord-
ance with section 529(b)(1)(A) of the Internal Rev-
enue Code of 1986 under a qualified State tuition 
program (as defined in section 529(b)(1) of such 
Code) not later than 365 days before the date of fil-
ing of the petition, but—
‘‘(A) only if the designated beneficiary of 
the amounts paid or contributed to such tuition 
program was a son, daughter, stepson, step-
daughter, grandchild, or step-grandchild of the
109
debtor for the taxable year for which funds 
were paid or contributed; 
‘‘(B) with respect to the aggregate amount 
paid or contributed to such program having the 
same designated beneficiary, only so much of 
such amount as does not exceed the total con-
tributions permitted under section 529(b)(7) of 
such Code with respect to such beneficiary, as 
adjusted beginning on the date of the filing of 
the petition by the annual increase or decrease 
(rounded to the nearest tenth of 1 percent) in 
the education expenditure category of the Con-
sumer 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 des-
ignated 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;’’; and 
(2) by adding at the end the following: 
‘‘(e) In determining whether any of the relationships 
specified in paragraph (5)(A) or (6)(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
110
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 section 106, is amend-
ed by adding at the end the following: 
‘‘(c) 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).’’. 
SEC. 226. DEFINITIONS. 
(a) DEFINITIONS.—Section 101 of title 11, United 
States Code, is amended—
(1) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) ‘assisted person’ means any person whose 
debts consist primarily of consumer debts and the 
value of whose nonexempt property is less than 
$150,000;’’;
111
(2) by inserting after paragraph (4) the fol-
lowing: 
‘‘(4A) ‘bankruptcy assistance’ means any goods 
or services sold or otherwise provided to an assisted 
person with the express or implied purpose of pro-
viding information, advice, counsel, document prepa-
ration, or filing, or attendance at a creditors’ meet-
ing or appearing in a proceeding on behalf of an-
other or providing legal representation with respect 
to a case or proceeding under this title;’’; and 
(3) by inserting after paragraph (12) the fol-
lowing: 
‘‘(12A) ‘debt relief agency’ means any person 
who provides any bankruptcy assistance to an as-
sisted person in return for the payment of money or 
other valuable consideration, or who is a bankruptcy 
petition preparer under section 110, but does not in-
clude—
‘‘(A) any person that is an officer, director, 
employee, or agent of a person who provides 
such assistance or of such preparer; 
‘‘(B) a nonprofit organization which is ex-
empt from taxation under section 501(c)(3) of 
the Internal Revenue Code of 1986;
112
‘‘(C) a creditor of such assisted person, to 
the extent that the creditor is assisting such as-
sisted person to restructure any debt owed by 
such assisted person to the creditor; 
‘‘(D) a depository institution (as defined in 
section 3 of the Federal Deposit Insurance Act) 
or any Federal credit union or State credit 
union (as those terms are defined in section 
101 of the Federal Credit Union Act), or any 
affiliate or subsidiary of such depository institu-
tion or credit union; or 
‘‘(E) an author, publisher, distributor, or 
seller of works subject to copyright protection 
under title 17, when acting in such capacity.’’. 
(b) CONFORMING AMENDMENT.—Section 104(b) of 
title 11, United States Code, is amended by inserting 
‘‘101(3),’’ after ‘‘sections’’ each place it appears. 
SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES. 
(a) ENFORCEMENT.—Subchapter II of chapter 5 of 
title 11, United States Code, is amended by adding at the 
end the following: 
‘‘§ 526. Restrictions on debt relief agencies 
‘‘(a) A debt relief agency shall not—
‘‘(1) fail to perform any service that such agen-
cy informed an assisted person or prospective as-
113
sisted person it would provide in connection with a 
case or proceeding under this title; 
‘‘(2) make any statement, or counsel or advise 
any assisted person or prospective assisted person to 
make a statement in a document filed in a case or 
proceeding under this title, that is untrue and mis-
leading, or that upon the exercise of reasonable care, 
should have been known by such agency to be untrue 
or misleading; 
‘‘(3) misrepresent to any assisted person or pro-
spective assisted person, directly or indirectly, af-
firmatively or by material omission, with respect 
to—
‘‘(i) the services that such agency will pro-
vide to such person; or 
‘‘(ii) the benefits and risks that may result 
if such person becomes a debtor in a case under 
this title; or 
‘‘(4) advise an assisted person or prospective 
assisted person to incur more debt in contemplation 
of such person filing a case under this title or to pay 
an attorney or bankruptcy petition preparer fee or 
charge for services performed as part of preparing 
for or representing a debtor in a case under this 
title.
114
‘‘(b) Any waiver by any assisted person of any protec-
tion or right provided under this section shall not be en-
forceable against the debtor by any Federal or State court 
or any other person, but may be enforced against a debt 
relief agency. 
‘‘(c)(1) Any contract for bankruptcy assistance be-
tween a debt relief agency and an assisted person that 
does not comply with the material requirements of this 
section, section 527, or section 528 shall be void and may 
not be enforced by any Federal or State court or by any 
other person, other than such assisted person. 
‘‘(2) Any debt relief agency shall be liable to an as-
sisted person in the amount of any fees or charges in con-
nection with providing bankruptcy assistance to such per-
son that such debt relief agency has received, for actual 
damages, and for reasonable attorneys’ fees and costs if 
such agency is found, after notice and a hearing, to have—
‘‘(A) intentionally or negligently failed to com-
ply with any provision of this section, section 527, 
or section 528 with respect to a case or proceeding 
under this title for such assisted person; 
‘‘(B) provided bankruptcy assistance to an as-
sisted person in a case or proceeding under this title 
that is dismissed or converted to a case under an-
other chapter of this title because of such agency’s
115
intentional or negligent failure to file any required 
document including those specified in section 521; or 
‘‘(C) intentionally or negligently disregarded the 
material requirements of this title or the Federal 
Rules of Bankruptcy Procedure applicable to such 
agency. 
‘‘(3) In addition to such other remedies as are pro-
vided under State law, whenever the chief law enforcement 
officer of a State, or an official or agency designated by 
a State, has reason to believe that any person has violated 
or is violating this section, the State—
‘‘(A) may bring an action to enjoin such viola-
tion; 
‘‘(B) may bring an action on behalf of its resi-
dents to recover the actual damages of assisted per-
sons arising from such violation, including any liabil-
ity under paragraph (2); and 
‘‘(C) in the case of any successful action under 
subparagraph (A) or (B), shall be awarded the costs 
of the action and reasonable attorney fees as deter-
mined by the court. 
‘‘(4) The district court of the United States for any 
district located in the State shall have concurrent jurisdic-
tion of any action under subparagraph (A) or (B) of para-
graph (3).
116
‘‘(5) Notwithstanding any other provision of Federal 
law and in addition to any other remedy provided under 
Federal or State law, if the court, on its own motion or 
on the motion of the United States trustee or the debtor, 
finds that a person intentionally violated this section, or 
engaged in a clear and consistent pattern or practice of 
violating this section, the court may—
‘‘(A) enjoin the violation of such section; or 
‘‘(B) impose an appropriate civil penalty 
against such person. 
‘‘(d) No provision of this section, section 527, or sec-
tion 528 shall— 
‘‘(1) annul, alter, affect, or exempt any person 
subject to such sections from complying with any 
law of any State except to the extent that such law 
is inconsistent with those sections, and then only to 
the extent of the inconsistency; or 
‘‘(2) be deemed to limit or curtail the authority 
or ability—
‘‘(A) of a State or subdivision or instru-
mentality thereof, to determine and enforce 
qualifications for the practice of law under the 
laws of that State; or
117
‘‘(B) of a Federal court to determine and 
enforce the qualifications for the practice of law 
before that court.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 5 of title 11, United States Code, is 
amended by inserting after the item relating to section 
525, the following:
‘‘526. Restrictions on debt relief agencies.’’.
SEC. 228. DISCLOSURES. 
(a) DISCLOSURES.—Subchapter II of chapter 5 of 
title 11, United States Code, as amended by section 227, 
is amended by adding at the end the following: 
‘‘§ 527. Disclosures 
‘‘(a) A debt relief agency providing bankruptcy assist-
ance to an assisted person shall provide—
‘‘(1) the written notice required under section 
342(b)(1) of this title; and 
‘‘(2) to the extent not covered in the written no-
tice described in paragraph (1), and not later than 
3 business days after the first date on which a debt 
relief agency first offers to provide any bankruptcy 
assistance services to an assisted person, a clear and 
conspicuous written notice advising assisted persons 
that—
‘‘(A) all information that the assisted per-
son is required to provide with a petition and
119
applicable, or one substantially similar. The statement 
shall be clear and conspicuous and shall be in a single 
document separate from other documents or notices pro-
vided to the assisted person: 
‘‘ ‘IMPORTANT INFORMATION ABOUT BANK-
RUPTCY ASSISTANCE SERVICES FROM AN AT-
TORNEY 
OR 
BANKRUPTCY 
PETITION 
PRE-
PARER. 
‘‘ ‘If you decide to seek bankruptcy relief, you can 
represent yourself, you can hire an attorney to represent 
you, or you can get help in some localities from a bank-
ruptcy petition preparer who is not an attorney. THE 
LAW REQUIRES AN ATTORNEY OR BANKRUPTCY 
PETITION PREPARER TO GIVE YOU A WRITTEN 
CONTRACT SPECIFYING WHAT THE ATTORNEY 
OR BANKRUPTCY PETITION PREPARER WILL DO 
FOR YOU AND HOW MUCH IT WILL COST. Ask to 
see the contract before you hire anyone. 
‘‘ ‘The following information helps you understand 
what must be done in a routine bankruptcy case to help 
you evaluate how much service you need. Although bank-
ruptcy can be complex, many cases are routine. 
‘‘ ‘Before filing a bankruptcy case, either you or your 
attorney should analyze your eligibility for different forms 
of debt relief made available by the Bankruptcy Code and
120
which form of relief is most likely to be beneficial for you. 
Be sure you understand the relief you can obtain and its 
limitations. To file a bankruptcy case, documents called 
a Petition, Schedules and Statement of Financial Affairs, 
as well as in some cases a Statement of Intention need 
to be prepared correctly and filed with the bankruptcy 
court. You will have to pay a filing fee to the bankruptcy 
court. Once your case starts, you will have to attend the 
required first meeting of creditors where you may be ques-
tioned by a court official called a ‘trustee’ and by credi-
tors. 
‘‘ ‘If you choose to file a chapter 7 case, you may 
be asked by a creditor to reaffirm a debt. You may want 
help deciding whether to do so and a creditor is not per-
mitted to coerce you into reaffirming your debts. 
‘‘ ‘If you choose to file a chapter 13 case in which 
you repay your creditors what you can afford over 3 to 
5 years, you may also want help with preparing your chap-
ter 13 plan and with the confirmation hearing on your 
plan which will be before a bankruptcy judge. 
‘‘ ‘If you select another type of relief under the Bank-
ruptcy Code other than chapter 7 or chapter 13, you will 
want to find out what needs to be done from someone fa-
miliar with that type of relief.
121
‘‘ ‘Your bankruptcy case may also involve litigation. 
You are generally permitted to represent yourself in litiga-
tion in bankruptcy court, but only attorneys, not bank-
ruptcy petition preparers, can give you legal advice.’. 
‘‘(c) Except to the extent the debt relief agency pro-
vides the required information itself after reasonably dili-
gent inquiry of the assisted person or others so as to ob-
tain such information reasonably accurately for inclusion 
on the petition, schedules or statement of financial affairs, 
a debt relief agency providing bankruptcy assistance to an 
assisted person, to the extent permitted by nonbankruptcy 
law, shall provide each assisted person at the time re-
quired for the notice required under subsection (a)(1) rea-
sonably sufficient information (which shall be provided in 
a clear and conspicuous writing) to the assisted person 
on how to provide all the information the assisted person 
is required to provide under this title pursuant to section 
521, including—
‘‘(1) how to value assets at replacement value, 
determine current monthly income, the amounts 
specified in section 707(b)(2) and, in a chapter 13 
case, how to determine disposable income in accord-
ance with section 707(b)(2) and related calculations;
122
‘‘(2) how to complete the list of creditors, in-
cluding how to determine what amount is owed and 
what address for the creditor should be shown; and 
‘‘(3) how to determine what property is exempt 
and how to value exempt property at replacement 
value as defined in section 506 of this title. 
‘‘(d) A debt relief agency shall maintain a copy of 
the notices required under subsection (a) of this section 
for 2 years after the date on which the notice is given 
the assisted person.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 5 of title 11, United States Code, as 
amended by section 227, is amended by inserting after the 
item relating to section 526 the following:
‘‘527. Disclosures.’’.
SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES. 
(a) ENFORCEMENT.—Subchapter II of chapter 5 of 
title 11, United States Code, as amended by sections 227 
and 228, is amended by adding at the end the following: 
‘‘§ 528. Requirements for debt relief agencies 
‘‘(a) A debt relief agency shall—
‘‘(1) not later than 5 business days after the 
first date on which such agency provides any bank-
ruptcy assistance services to an assisted person, but 
prior to such assisted person’s petition under this 
title being filed, execute a written contract with such
123
assisted person that explains clearly and conspicu-
ously—
‘‘(A) the services such agency will provide 
to such assisted person; and 
‘‘(B) the fees or charges for such services, 
and the terms of payment; 
‘‘(2) provide the assisted person with a copy of 
the fully executed and completed contract; 
‘‘(3) clearly and conspicuously disclose in any 
advertisement of bankruptcy assistance services or of 
the benefits of bankruptcy directed to the general 
public (whether in general media, seminars or spe-
cific mailings, telephonic or electronic messages, or 
otherwise) that the services or benefits are with re-
spect to bankruptcy relief under this title; and 
‘‘(4) clearly and conspicuously use the following 
statement in such advertisement: ‘We are a debt re-
lief agency. We help people file for bankruptcy relief 
under the Bankruptcy Code.’ or a substantially simi-
lar statement. 
‘‘(b)(1) An advertisement of bankruptcy assistance 
services or of the benefits of bankruptcy directed to the 
general public includes—
‘‘(A) descriptions of bankruptcy assistance in 
connection with a chapter 13 plan whether or not
124
chapter 13 is specifically mentioned in such adver-
tisement; and 
‘‘(B) statements such as ‘federally supervised 
repayment plan’ or ‘Federal debt restructuring help’ 
or other similar statements that could lead a reason-
able consumer to believe that debt counseling was 
being offered when in fact the services were directed 
to providing bankruptcy assistance with a chapter 
13 plan or other form of bankruptcy relief under 
this title. 
‘‘(2) An advertisement, directed to the general public, 
indicating that the debt relief agency provides assistance 
with respect to credit defaults, mortgage foreclosures, evic-
tion proceedings, excessive debt, debt collection pressure, 
or inability to pay any consumer debt shall— 
‘‘(A) disclose clearly and conspicuously in such 
advertisement that the assistance may involve bank-
ruptcy relief under this title; and 
‘‘(B) include the following statement: ‘We are a 
debt relief agency. We help people file for bank-
ruptcy relief under the Bankruptcy Code.’ or a sub-
stantially similar statement.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 5 of title 11, United States Code, as
125
amended by section 227 and 228, is amended by inserting 
after the item relating to section 527, the following:
‘‘528. Requirements for debt relief agencies.’’.
SEC. 230. GAO STUDY. 
(a) STUDY.—Not later than 270 days after the date 
of enactment of this Act, the Comptroller General of the 
United States shall conduct a study of the feasibility, ef-
fectiveness, and cost of requiring trustees appointed under 
title 11, United States Code, or the bankruptcy courts, 
to provide to the Office of Child Support Enforcement 
promptly after the commencement of cases by debtors who 
are individuals under such title, the names and social secu-
rity numbers of such debtors for the purposes of allowing 
such Office to determine whether such debtors have out-
standing obligations for child support (as determined on 
the basis of information in the Federal Case Registry or 
other national database). 
(b) REPORT.—Not later than 300 days after the date 
of enactment of this Act, the Comptroller General shall 
submit to the President pro tempore of the Senate and 
the Speaker of the House of Representatives a report con-
taining the results of the study required by subsection (a).
126
SEC. 231. PROTECTION OF PERSONALLY IDENTIFIABLE IN-
FORMATION. 
(a) LIMITATION.—Section 363(b)(1) of title 11, 
United States Code, is amended by striking the period at 
the end and inserting the following: 
‘‘, except that if the debtor in connection with offering 
a product or a service discloses to an individual a policy 
prohibiting the transfer of personally identifiable informa-
tion about individuals to persons that are not affiliated 
with the debtor and if such policy is in effect on the date 
of the commencement of the case, then the trustee may 
not sell or lease personally identifiable information to any 
person unless—
‘‘(A) such sale or such lease is consistent with 
such policy; or 
‘‘(B) after appointment of a consumer privacy 
ombudsman in accordance with section 332, and 
after notice and a hearing, the court approves such 
sale or such lease—
‘‘(i) giving due consideration to the facts, 
circumstances, and conditions of such sale or 
such lease; and 
‘‘(ii) finding that no showing was made 
that such sale or such lease would violate appli-
cable nonbankruptcy law.’’.
127
(b) DEFINITION.—Section 101 of title 11, United 
States Code, is amended by inserting after paragraph (41) 
the following: 
‘‘(41A) ‘personally identifiable information’ 
means—
‘‘(A) if provided by an individual to the 
debtor in connection with obtaining a product 
or a service from the debtor primarily for per-
sonal, family, or household purposes—
‘‘(i) the first name (or initial) and last 
name of such individual, whether given at 
birth or time of adoption, or resulting from 
a lawful change of name; 
‘‘(ii) the geographical address of a 
physical place of residence of such indi-
vidual; 
‘‘(iii) an electronic address (including 
an e-mail address) of such individual; 
‘‘(iv) a telephone number dedicated to 
contacting such individual at such physical 
place of residence; 
‘‘(v) a social security account number 
issued to such individual; or 
‘‘(vi) the account number of a credit 
card issued to such individual; or
128
‘‘(B) if identified in connection with 1 or 
more of the items of information specified in 
subparagraph (A)—
‘‘(i) a birth date, the number of a cer-
tificate of birth or adoption, or a place of 
birth; or 
‘‘(ii) any other information concerning 
an identified individual that, if disclosed, 
will result in contacting or identifying such 
individual physically or electronically;’’.
SEC. 232. CONSUMER PRIVACY OMBUDSMAN. 
(a) CONSUMER PRIVACY OMBUDSMAN.—Title 11 of 
the United States Code is amended by inserting after sec-
tion 331 the following: 
‘‘§ 332. Consumer privacy ombudsman 
‘‘(a) If a hearing is required under section 
363(b)(1)(B) of this title, the court shall order the United 
States trustee to appoint, not later than 5 days before the 
commencement of the hearing, 1 disinterested person 
(other than the United States trustee) to serve as the con-
sumer privacy ombudsman in the case and shall require 
that notice of such hearing be timely given to such om-
budsman. 
‘‘(b) The consumer privacy ombudsman may appear 
and be heard at such hearing and shall provide to the
129
court information to assist the court in its consideration 
of the facts, circumstances, and conditions of the proposed 
sale or lease of personally identifiable information under 
section 363(b)(1)(B) of this title. Such information may 
include presentation of—
‘‘(1) the debtor’s privacy policy; 
‘‘(2) the potential losses or gains of privacy to 
consumers if such sale or such lease is approved by 
the court; 
‘‘(3) the potential costs or benefits to con-
sumers if such sale or such lease is approved by the 
court; and 
‘‘(4) the potential alternatives that would miti-
gate potential privacy losses or potential costs to 
consumers. 
‘‘(c) A consumer privacy ombudsman shall not dis-
close any personally identifiable information obtained by 
the ombudsman under this title.’’. 
(b) COMPENSATION
OF CONSUMER PRIVACY OM-
BUDSMAN.—Section 330(a)(1) of title 11, United States 
Code, is amended in the matter preceding subparagraph 
(A), by inserting ‘‘a consumer privacy ombudsman ap-
pointed under section 332,’’ before ‘‘an examiner’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subchapter II of chapter 3 of title 11, United
130
States Code, is amended by adding at the end the fol-
lowing:
‘‘332. Consumer privacy ombudsman.’’.
SEC. 233. PROHIBITION ON DISCLOSURE OF NAME OF 
MINOR CHILDREN. 
(a) PROHIBITION.—Title 11 of the United States 
Code, as amended by section 106, is amended by inserting 
after section 111 the following: 
‘‘§ 112. Prohibition on disclosure of name of minor 
children 
‘‘The debtor may be required to provide information 
regarding a minor child involved in matters under this title 
but may not be required to disclose in the public records 
in the case the name of such minor child. The debtor may 
be required to disclose the name of such minor child in 
a nonpublic record that is maintained by the court and 
made available by the court for examination by the United 
States trustee, the trustee, and the auditor (if any) ap-
pointed under section 586(f) of title 28, in the case. The 
court, the United States trustee, the trustee, and such 
auditor shall not disclose the name of such minor child 
maintained in such nonpublic record.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 1 of title 11, United States Code, as amended
131
by section 106, is amended by inserting after the item re-
lating to section 111 the following:
‘‘112. Prohibition on disclosure of name of minor children.’’.
(c) CONFORMING AMENDMENT.—Section 107(a) of 
title 11, United States Code, is amended by inserting ‘‘and 
subject to section 112 of this title’’ after ‘‘section’’. 
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 
(3) by adding at the end the following:
133
(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 chapters 7, 11, and 13 
in which the individual was a debtor 
was pending within the preceding 1-
year period; 
‘‘(II) a previous case under any 
of chapters 7, 11, and 13 in which the 
individual 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); 
‘‘(bb) provide adequate pro-
tection as ordered by the court; 
or
134
‘‘(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 
dismissal 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 chap-
ter 7, with a discharge; or 
‘‘(bb) if a case under chap-
ter 11 or 13, with a confirmed 
plan that 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 
‘‘(4)(A)(i) if a single or joint case is filed by or 
against a debtor who is an individual under this
135
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 sec-
tion 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 limita-
tions as the court may impose), after notice and a 
hearing, 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; 
‘‘(C) a stay imposed under subparagraph (B) 
shall be effective on the date of entry of the order 
allowing the stay to go into effect; and 
‘‘(D) for purposes of subparagraph (B), a case 
is presumptively not filed in good faith (but such 
presumption may be rebutted by clear and con-
vincing evidence to the contrary)—
‘‘(i) as to all creditors if—
136
‘‘(I) 2 or more previous cases under 
this title in which the individual was a 
debtor were pending within the 1-year pe-
riod; 
‘‘(II) a previous case under this title 
in which the individual was a debtor was 
dismissed within the time period stated in 
this paragraph after the debtor failed to 
file or amend the petition or other docu-
ments as required by this title or the court 
without substantial excuse (but mere inad-
vertence or negligence shall not be sub-
stantial excuse unless the dismissal was 
caused by the negligence of the debtor’s at-
torney), failed to provide adequate protec-
tion as ordered by the court, or failed to 
perform the terms of a plan confirmed by 
the court; or 
‘‘(III) there has not been a substan-
tial change in the financial or personal af-
fairs of the debtor since the dismissal of 
the next most previous case under this 
title, or any other reason to conclude that 
the later case will not be concluded, if a 
case under chapter 7, with a discharge,
137
and if a case under chapter 11 or 13, with 
a confirmed plan that will be fully per-
formed; 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 bank-
ruptcy petition was part of a scheme to delay, 
hinder, and defraud creditors that involved either—
138
‘‘(A) transfer of all or part ownership of, 
or other interest in, the real property without 
the consent of the secured creditor or court ap-
proval; 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 the date of entry 
of such order by the court, except that a debtor in a subse-
quent case may move for relief from such order based 
upon changed circumstances or for good cause shown, 
after notice and a hearing. Any Federal, State, or local 
governmental unit that accepts notices of interests or liens 
in real property shall accept any certified copy of an order 
described in this subsection for indexing and recording.’’. 
(b) AUTOMATIC STAY.—Section 362(b) of title 11, 
United States Code, as amended by section 224, is amend-
ed by inserting after paragraph (19), the following: 
‘‘(20) under subsection (a), of any act to en-
force any lien against or security interest in real 
property following the entry of an order under sec-
tion 362(d)(4) as to that property in any prior bank-
139
ruptcy case for a period of 2 years after entry of 
such an order, except that the debtor, in a subse-
quent 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; 
‘‘(21) under subsection (a), of any act to en-
force any lien against or security interest in real 
property—
‘‘(A) if the debtor is ineligible under sec-
tion 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;’’. 
SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY 
SECURITY. 
Title 11, United States Code, is amended—
(1) in section 521(a), as so designated by sec-
tion 106—
(A) in paragraph (4), by striking ‘‘, and’’ 
at the end and inserting a semicolon; 
(B) in paragraph (5), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following:
140
‘‘(6) in a case under chapter 7 of this title in 
which the debtor is an individual, not retain posses-
sion 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 the debtor, not later than 45 days 
after the first meeting of creditors under section 
341(a), either—
‘‘(A) enters into an agreement with the 
creditor pursuant to section 524(c) of this title 
with respect to the claim secured by such prop-
erty; or 
‘‘(B) redeems such property from the secu-
rity interest pursuant to section 722 of this 
title. 
If the debtor fails to so act within the 45-day period re-
ferred to in paragraph (6), the stay under section 362(a) 
of this title is terminated with respect to the personal 
property of the estate or of the debtor which is affected, 
such property shall no longer be property of the estate, 
and the creditor may take whatever action as to such prop-
erty as is permitted by applicable nonbankruptcy law, un-
less the court determines on the motion of the trustee 
filedbefore the expiration of such 45-day period, and after 
notice and a hearing, that such property is of consequen-
141
tial value or benefit to the estate, orders appropriate ade-
quate protection of the creditor’s interest, and orders the 
debtor to deliver any collateral in the debtor’s possession 
to the trustee.’’; 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, as amended by section 
106—
(A) in subsection (c), by striking ‘‘(e), and 
(f)’’ and inserting ‘‘(e), (f), and (h)’’; 
(B) by redesignating subsection (h) as sub-
section (k) and transferring such subsection so 
as to insert it after subjection (j) as added by 
section 106; and 
(C) by inserting after subsection (g) the 
following: 
‘‘(h)(1) In a case in which the debtor is an individual, 
the stay provided by subsection (a) is terminated with re-
spect to personal property of the estate or of the debtor 
securing in whole or in part a claim, or subject to an unex-
142
pired lease, and such personal property shall no longer be 
property of the estate if the debtor fails within the applica-
ble time set by section 521(a)(2) of this title—
‘‘(A) to file timely any statement of intention 
required under section 521(a)(2) of this title with 
respect to that property or to indicate in that state-
ment that the debtor will either surrender the prop-
erty or retain it and, if retaining it, either redeem 
the property pursuant to section 722 of this title, re-
affirm the debt it secures pursuant to section 524(c) 
of this title, or assume the unexpired lease pursuant 
to section 365(p) of this title if the trustee does not 
do so, as applicable; and 
‘‘(B) to take timely the action specified in that 
statement of intention, as it may be amended before 
expiration of the period for taking action, unless the 
statement of intention specifies reaffirmation and 
the creditor refuses to reaffirm on the original con-
tract terms. 
‘‘(2) Paragraph (1) does not apply if the court deter-
mines, on the motion of the trustee filed before the expira-
tion of the applicable time set by section 521(a)(2), after 
notice and a hearing, that such property is of consequen-
tial value or benefit to the estate, and orders appropriate 
adequate protection of the creditor’s interest, and orders
143
the debtor to deliver any collateral in the debtor’s posses-
sion to the trustee. If the court does not so determine, 
the stay provided by subsection (a) shall terminate upon 
the conclusion of the proceeding on the motion.’’; and 
(2) in section 521, as amended by sections 106 
and 225—
(A) in subsection (a)(2) by striking ‘‘con-
sumer’’; 
(B) in subsection (a)(2)(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) of this title’’; and 
(ii) by striking ‘‘forty-five day’’ and 
inserting ‘‘30-day’’; 
(C) in subsection (a)(2)(C) by inserting ‘‘, 
except as provided in section 362(h) of this 
title’’ before the semicolon; and 
(D) by adding at the end the following: 
‘‘(d) If the debtor fails timely to take the action speci-
fied in subsection (a)(6) of this section, or in paragraphs 
(1) and (2) of section 362(h) of this title, with respect 
to property which a lessor or bailor owns and has leased, 
rented, or bailed to the debtor or as to which a creditor
144
holds a security interest not otherwise voidable under sec-
tion 522(f), 544, 545, 547, 548, or 549 of this title, noth-
ing in this title shall prevent or limit the operation of a 
provision in the underlying lease or agreement which has 
the effect of placing the debtor in default under such lease 
or agreement by reason of the occurrence, pendency, or 
existence of a proceeding under this title or the insolvency 
of the debtor. Nothing in this subsection shall be deemed 
to justify limiting such a provision in any other cir-
cumstance.’’. 
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 ear-
lier of—
‘‘(aa) the payment of the under-
lying debt determined under nonbank-
ruptcy law; or 
‘‘(bb) discharge under section 
1328; and 
‘‘(II) if the case under this chapter is 
dismissed or converted without completion
145
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: 
‘‘For purposes of paragraph (5), section 506 shall not 
apply to a claim described in that paragraph if the creditor 
has a purchase money security interest securing the debt 
that is the subject of the claim, the debt was incurred 
within the 910-day preceding the filing of the petition, and 
the collateral for that debt consists of a motor vehicle (as 
defined in section 30102 of title 49) acquired for the per-
sonal use of the debtor, or if collateral for that debt con-
sists of any other thing of value, if the debt was incurred 
during the 1-year period preceding that filing.’’. 
(c) DEFINITIONS.—Section 101 of title 11, United 
States Code, is amended—
(1) by inserting after paragraph (13) the fol-
lowing: 
‘‘(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
146
‘‘(B) includes an individual condominium 
or cooperative unit, a mobile or manufactured 
home, or trailer;’’; and 
(2) by inserting after paragraph (27), the fol-
lowing: 
‘‘(27A) ‘incidental property’ means, with re-
spect to a debtor’s principal residence—
‘‘(A) property commonly conveyed with a 
principal residence in the area where the real 
estate 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. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS. 
Section 522(b)(3) of title 11, United States Code, as 
so designated by section 106, is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘180 days’’ and inserting 
‘‘730 days’’; and 
(B) by striking ‘‘, or for a longer portion 
of such 180-day period than in any other place’’ 
and inserting ‘‘or if the debtor’s domicile has 
not been located at a single State for such 730-
147
day period, the place in which the debtor’s 
domicile was located for 180 days immediately 
preceding the 730-day period or for a longer 
portion of such 180-day period than in any 
other place’’; and 
(2) by adding at the end the following: 
‘‘If the effect of the domiciliary requirement under sub-
paragraph (A) is to render the debtor ineligible for any 
exemption, the debtor may elect to exempt property that 
is specified under subsection (d).’’.
SEC. 308. REDUCTION OF HOMESTEAD EXEMPTION FOR 
FRAUD. 
Section 522 of title 11, United States Code, as 
amended by section 224, is amended—
(1) in subsection (b)(3)(A), as so designated by 
this Act, by inserting ‘‘subject to subsections (o) and 
(p),’’ before ‘‘any property’’; and 
(2) by adding at the end the following: 
‘‘(o) 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;
148
‘‘(3) a burial plot for the debtor or a dependent 
of the debtor; or 
‘‘(4) real or personal property that the debtor 
or a dependent of the debtor claims as a homestead; 
shall be reduced to the extent that such value is attrib-
utable to any portion of any property that the debtor dis-
posed of in the 10-year period ending on the date of the 
filing of the petition with the intent to hinder, delay, or 
defraud a creditor 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.’’. 
SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER 
13 CASES. 
(a) STOPPING ABUSIVE CONVERSIONS FROM CHAP-
TER 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 a case under chap-
ter 11 or 12, but not in a case converted to a
149
case under chapter 7, with allowed secured 
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 chap-
ter 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 appli-
cable nonbankruptcy law has been paid in full 
as of the date of conversion, notwithstanding 
any valuation or determination of the amount 
of an allowed secured claim made for the pur-
poses of the case under chapter 13; 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:
150
‘‘(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) If the debtor in a case under chapter 7 is 
an individual, the debtor may notify the creditor in writing 
that the debtor desires to assume the lease. Upon being 
so notified, the creditor may, at its option, notify the debt-
or that it is willing to have the lease assumed by the debt-
or and may condition such assumption on cure of any out-
standing default on terms set by the contract. 
‘‘(B) If, not later than 30 days after notice is pro-
vided under subparagraph (A), the debtor notifies the les-
sor in writing 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 notifica-
tion of the debtor and negotiation of cure under this sub-
section. 
‘‘(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
151
of the hearing on confirmation. If the lease is rejected, 
the stay under section 362 and any stay under section 
1301 is automatically terminated with respect to the prop-
erty 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, as 
amended by section 306, 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—
‘‘(I) property to be distributed pursu-
ant to this subsection is in the form of 
periodic payments, such payments 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 protection during 
the period of the plan; or’’.
152
(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 commence making payments not later than 30 days 
after the date of the filing of the plan or the order for 
relief, whichever is earlier, in the amount—
‘‘(A) proposed by the plan to the trustee; 
‘‘(B) scheduled in a lease of personal property 
directly to the lessor for that portion of the obliga-
tion that becomes due after the order for relief, re-
ducing the payments under subparagraph (A) by the 
amount so paid and providing the trustee with evi-
dence of such payment, including the amount and 
date of payment; and 
‘‘(C) that provides adequate protection directly 
to a creditor holding an allowed claim secured by 
personal property to the extent the claim is attrib-
utable to the purchase of such property by the debt-
or for that portion of the obligation that becomes 
due after the order for relief, reducing the payments 
under subparagraph (A) by the amount so paid and 
providing the trustee with evidence of such payment, 
including the amount and date of payment. 
‘‘(2) A payment made under paragraph (1)(A) shall 
be retained by the trustee until confirmation or denial of
153
confirmation. If a plan is confirmed, the trustee shall dis-
tribute any such payment in accordance with the plan as 
soon as is practicable. If a plan is not confirmed, the trust-
ee 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 al-
lowed under section 503(b). 
‘‘(3) Subject to section 363, the court may, upon no-
tice and a hearing, modify, increase, or reduce the pay-
ments required under this subsection pending confirma-
tion of a plan. 
‘‘(4) Not later than 60 days after the date of filing 
of a case under this chapter, a debtor retaining possession 
of personal property subject to a lease or securing a claim 
attributable in whole or in part to the purchase price of 
such property shall provide the lessor or secured creditor 
reasonable evidence of the maintenance of any required 
insurance coverage with respect to the use or ownership 
of such property and continue to do so for so long as the 
debtor retains possession of such property.’’.
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)—
154
‘‘(I) consumer debts owed to a single 
creditor and aggregating more than $500 
for luxury goods or services incurred by an 
individual debtor on or within 90 days be-
fore the order for relief under this title are 
presumed to be nondischargeable; and 
‘‘(II) cash advances aggregating more 
than $750 that are extensions of consumer 
credit under an open end credit plan ob-
tained by an individual debtor on or within 
70 days before the order for relief under 
this title, are presumed to be non-
dischargeable; and 
‘‘(ii) for purposes of this subparagraph—
‘‘(I) the terms ‘consumer’, ‘credit’, 
and ‘open end credit plan’ have the same 
meanings as in section 103 of the Truth in 
Lending Act; and 
‘‘(II) the term ‘luxury goods or serv-
ices’ does not include goods or services rea-
sonably necessary for the support or main-
tenance of the debtor or a dependent of the 
debtor.’’.
155
SEC. 311. AUTOMATIC STAY. 
(a) IN GENERAL.—Section 362(b) of title 11, United 
States Code, as amended by sections 224 and 303, is 
amended by inserting after paragraph (21), the following: 
‘‘(22) subject to subsection (n), under sub-
section (a)(3), of the continuation of any eviction, 
unlawful detainer action, or similar proceeding by a 
lessor against a debtor involving residential property 
in which the debtor resides as a tenant under a lease 
or rental agreement and with respect to which the 
lessor has obtained before the date of the filing of 
the bankruptcy petition, a judgment for possession 
of such property against the debtor; 
‘‘(23) subject to subsection (o), under sub-
section (a)(3), of an eviction action that seeks pos-
session of the residential property in which the debt-
or resides as a tenant under a lease or rental agree-
ment based on endangerment of such property or 
the illegal use of controlled substances on such prop-
erty, but only if the lessor files with the court, and 
serves upon the debtor, a certification under penalty 
of perjury that such an eviction action has been 
filed, or that the debtor, during the 30-day period 
preceding the date of the filing of the certification, 
has endangered property or illegally used or allowed 
to be used a controlled substance on the property;
156
‘‘(24) under subsection (a), of any transfer that 
is not avoidable under section 544 and that is not 
avoidable under section 549;’’. 
(b) LIMITATIONS.—Section 362 of title 11, United 
States Code, as amended by sections 106 and 305, is 
amended by adding at the end the following: 
‘‘(n)(1) Except as otherwise provided in this sub-
section, subsection (b)(22) shall apply on the date that 
is 30 days after the date on which the bankruptcy petition 
is filed, if the debtor files with the petition and serves upon 
the lessor a certification under penalty of perjury that—
‘‘(A) under nonbankruptcy law applicable in the 
jurisdiction, there are circumstances under which the 
debtor would be permitted to cure the entire mone-
tary default that gave rise to the judgment for pos-
session, after that judgment for possession was en-
tered; and 
‘‘(B) the debtor (or an adult dependent of the 
debtor) has deposited with the clerk of the court, 
any rent that would become due during the 30-day 
period after the filing of the bankruptcy petition. 
‘‘(2) If, within the 30-day period after the filing of 
the bankruptcy petition, the debtor (or an adult dependent 
of the debtor) complies with paragraph (1) and files with 
the court and serves upon the lessor a further certification
157
under penalty of perjury that the debtor (or an adult de-
pendent of the debtor) has cured, under nonbankrupcty 
law applicable in the jurisdiction, the entire monetary de-
fault that gave rise to the judgment under which posses-
sion is sought by the lessor, subsection (b)(22) shall not 
apply, unless ordered to apply by the court under para-
graph (3). 
‘‘(3)(A) If the lessor files an objection to any certifi-
cation filed by the debtor under paragraph (1) or (2), and 
serves such objection upon the debtor, the court shall hold 
a hearing within 10 days after the filing and service of 
such objection to determine if the certification filed by the 
debtor under paragraph (1) or (2) is true. 
‘‘(B) If the court upholds the objection of the lessor 
filed under subparagraph (A)—
‘‘(i) subsection (b)(22) shall apply immediately 
and relief from the stay provided under subsection 
(a)(3) shall not be required to enable the lessor to 
complete the process to recover full possession of the 
property; and 
‘‘(ii) the clerk of the court shall immediately 
serve upon the lessor and the debtor a certified copy 
of the court’s order upholding the lessor’s objection. 
‘‘(4) If a debtor, in accordance with paragraph (5), 
indicates on the petition that there was a judgment for
158
possession of the residential rental property in which the 
debtor resides and does not file a certification under para-
graph (1) or (2)—
‘‘(A) subsection (b)(22) shall apply immediately 
upon failure to file such certification, and relief from 
the stay provided under subsection (a)(3) shall not 
be required to enable the lessor to complete the 
process to recover full possession of the property; 
and 
‘‘(B) the clerk of the court shall immediately 
serve upon the lessor and the debtor a certified copy 
of the docket indicating the absence of a filed certifi-
cation and the applicability of the exception to the 
stay under subsection (b)(22). 
‘‘(5)(A) Where a judgment for possession of residen-
tial property in which the debtor resides as a tenant under 
a lease or rental agreement has been obtained by the les-
sor, the debtor shall so indicate on the bankruptcy petition 
and shall provide the name and address of the lessor that 
obtained that pre-petition judgment on the petition and 
on any certification filed under this subsection. 
‘‘(B) The form of certification filed with the petition, 
as specified in this subsection, shall provide for the debtor 
to certify, and the debtor shall certify—
159
‘‘(i) whether a judgment for possession of resi-
dential rental housing in which the debtor resides 
has been obtained against the debtor before the fil-
ing of the petition; and 
‘‘(ii) whether the debtor is claiming under para-
graph (1) that under nonbankruptcy law applicable 
in the jurisdiction, there are circumstances under 
which the debtor would be permitted to cure the en-
tire monetary default that gave rise to the judgment 
for possession, after that judgment of possession was 
entered, and has made the appropriate deposit with 
the court. 
‘‘(C) The standard forms (electronic and otherwise) 
used in a bankruptcy proceeding shall be amended to re-
flect the requirements of this subsection. 
‘‘(D) The clerk of the court shall arrange for the 
prompt transmittal of the rent deposited in accordance 
with paragraph (1)(B) to the lessor. 
‘‘(o)(1) Except as otherwise provided in this sub-
section, subsection (b)(23) shall apply on the date that 
is 15 days after the date on which the lessor files and 
serves a certification described in subsection (b)(23). 
‘‘(2)(A) If the debtor files with the court an objection 
to the truth or legal sufficiency of the certification de-
scribed in subsection (b)(23) and serves such objection
160
upon the lessor, subsection (b)(23) shall not apply, unless 
ordered to apply by the court under this subsection. 
‘‘(B) If the debtor files and serves the objection under 
subparagraph (A), the court shall hold a hearing within 
10 days after the filing and service of such objection to 
determine if the situation giving rise to the lessor’s certifi-
cation under paragraph (1) existed or has been remedied. 
‘‘(C) If the debtor can demonstrate to the satisfaction 
of the court that the situation giving rise to the lessor’s 
certification under paragraph (1) did not exist or has been 
remedied, the stay provided under subsection (a)(3) shall 
remain in effect until the termination of the stay under 
this section. 
‘‘(D) If the debtor cannot demonstrate to the satis-
faction of the court that the situation giving rise to the 
lessor’s certification under paragraph (1) did not exist or 
has been remedied—
‘‘(i) relief from the stay provided under sub-
section (a)(3) shall not be required to enable the les-
sor to proceed with the eviction; and 
‘‘(ii) the clerk of the court shall immediately 
serve upon the lessor and the debtor a certified copy 
of the court’s order upholding the lessor’s certifi-
cation.
161
‘‘(3) If the debtor fails to file, within 15 days, an 
objection under paragraph (2)(A)—
‘‘(A) subsection (b)(23) shall apply immediately 
upon such failure and relief from the stay provided 
under subsection (a)(3) shall not be required to en-
able the lessor to complete the process to recover full 
possession of the property; and 
‘‘(B) the clerk of the court shall immediately 
serve upon the lessor and the debtor a certified copy 
of the docket indicating such failure.’’. 
SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY 
DISCHARGES. 
Title 11, United States Code, is amended—
(1) in section 727(a)(8), by striking ‘‘six’’ and 
inserting ‘‘8’’; and 
(2) in section 1328, by inserting after sub-
section (e) the following: 
‘‘(f) Notwithstanding subsections (a) and (b), the 
court shall not grant a discharge of all debts provided for 
in the plan or disallowed under section 502, if the debtor 
has received a discharge—
‘‘(1) in a case filed under chapter 7, 11, or 12 
of this title during the 4-year period preceding the 
date of the order for relief under this chapter, or
162
‘‘(2) in a case filed under chapter 13 of this 
title during the 2-year period preceding the date of 
such order.’’. 
SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND AN-
TIQUES. 
(a) DEFINITION.—Section 522(f) of title 11, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(4)(A) Subject to subparagraph (B), for purposes 
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; 
‘‘(x) kitchenware; 
‘‘(xi) educational materials and educational 
equipment primarily for the use of minor dependent 
children of the debtor; 
‘‘(xii) medical equipment and supplies;
163
‘‘(xiii) furniture exclusively for the use of minor 
children, or elderly or disabled dependents of the 
debtor; 
‘‘(xiv) personal effects (including the toys and 
hobby equipment of minor dependent children and 
wedding rings) of the debtor and the dependents of 
the debtor; and 
‘‘(xv) 1 personal computer and related equip-
ment. 
‘‘(B) The term ‘household goods’ does not include—
‘‘(i) works of art (unless by or of the debtor, or 
any relative of the debtor); 
‘‘(ii) electronic entertainment equipment with a 
fair market value of more than $500 in the aggre-
gate (except 1 television, 1 radio, and 1 VCR); 
‘‘(iii) items acquired as antiques with a fair 
market value of more than $500 in the aggregate; 
‘‘(iv) jewelry with a fair market value of more 
than $500 in the aggregate (except wedding rings); 
and 
‘‘(v) a computer (except as otherwise provided 
for in this section), motor vehicle (including a trac-
tor or lawn tractor), boat, or a motorized rec-
reational device, conveyance, vehicle, watercraft, or 
aircraft.’’.
164
(b) STUDY.—Not later than 2 years after the date 
of enactment of this Act, the Director of the Executive 
Office for United States Trustees shall submit a report 
to the Committee on the Judiciary of the Senate and the 
Committee on the Judiciary of the House of Representa-
tives containing its findings regarding utilization of the 
definition of household goods, as defined in section 
522(f)(4) of title 11, United States Code, as added by this 
section, with respect to the avoidance of nonpossessory, 
nonpurchase money security interests in household goods 
under section 522(f)(1)(B) of title 11, United States Code, 
and the impact that section 522(f)(4) of that title, as 
added by this section, has had on debtors and on the bank-
ruptcy courts. Such report may include recommendations 
for amendments to section 522(f)(4) of title 11, United 
States Code, consistent with the Director’s findings.
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) incurred to pay a tax to a governmental 
unit, other than the United States, that would be 
nondischargeable under paragraph (1);’’.
165
(b) DISCHARGE
UNDER
CHAPTER
13.—Section 
1328(a) of title 11, United States Code, is amended by 
striking paragraphs (1) through (3) and inserting the fol-
lowing: 
‘‘(1) provided for under section 1322(b)(5); 
‘‘(2) of the kind specified in paragraph (2), (3), 
(4), (5), (8), or (9) 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, as amended by section 102, is amended—
(1) in subsection (c)—
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’; 
(B) by striking ‘‘, but the failure of such 
notice to contain such information shall not in-
validate the legal effect of such notice’’; and 
(C) by adding at the end the following:
166
‘‘(2)(A) If, within the 90 days before the commence-
ment of a voluntary case, a creditor supplies the debtor 
in at least 2 communications sent to the debtor with the 
current account number of the debtor and the address at 
which such creditor requests to receive correspondence, 
then any notice required by this title to be sent by the 
debtor to such creditor shall be sent to such address and 
shall include such account number. 
(B) If a creditor would be in violation of applicable 
nonbankruptcy law by sending any such communication 
within such 90-day period and if such creditor supplies 
the debtor in the last 2 communications with the current 
account number of the debtor and the address at which 
such creditor requests to receive correspondence, then any 
notice required by this title to be sent by the debtor to 
such creditor shall be sent to such address and shall in-
clude such account number; and 
(2) by adding at the end the following: 
‘‘(e)(1) In a case under chapter 7 or 13 of this title 
of a debtor who is an individual, a creditor at any time 
may both file with the court and serve on the debtor a 
notice of address to be used to provide notice in such case 
to such creditor. 
‘‘(2) Any notice in such case required to be provided 
to such creditor by the debtor or the court later than 5
167
days after the court and the debtor receive such creditor’s 
notice of address, shall be provided to such address.
‘‘(f)(1) An entity may file with any bankruptcy court 
a notice of address to be used by all the bankruptcy courts 
or by particular bankruptcy courts, as so specified by such 
entity at the time such notice is filed, to provide notice 
to such entity in all cases under chapters 7 and 13 pend-
ing in the courts with respect to which such notice is filed, 
in which such entity is a creditor. 
‘‘(2) In any case filed under chapter 7 or 13, any 
notice required to be provided by a court with respect to 
which a notice is filed under paragraph (1), to such entity 
later than 30 days after the filing of such notice under 
paragraph (1) shall be provided to such address unless 
with respect to a particular case a different address is 
specified in a notice filed and served in accordance with 
subsection (e). 
‘‘(3) A notice filed under paragraph (1) may be with-
drawn by such entity. 
‘‘(g)(1) Notice provided to a creditor by the debtor 
or the court other than in accordance with this section 
(excluding this subsection) shall not be effective notice 
until such notice is brought to the attention of such cred-
itor. If such creditor designates a person or an organiza-
tional subdivision of such creditor to be responsible for
168
receiving notices under this title and establishes reason-
able procedures so that such notices receivable by such 
creditor are to be delivered to such person or such subdivi-
sion, then a notice provided to such creditor other than 
in accordance with this section (excluding this subsection) 
shall not be considered to have been brought to the atten-
tion of such creditor until such notice is received by such 
person or such subdivision. 
‘‘(2) A monetary penalty may not be imposed on a 
creditor for a violation of a stay in effect under section 
362(a) of this title (including a monetary penalty imposed 
under section 362(k) of this title) or for failure to comply 
with section 542 or 543 unless the conduct that is the 
basis of such violation or of such failure occurs after such 
creditor receives notice effective under this section of the 
order for relief.’’. 
(b) DEBTOR’S DUTIES.—Section 521 of title 11, 
United States Code, as amended by sections 106, 225, and 
305, is amended—
(1) in subsection (a), as so designated by sec-
tion 106, by amending paragraph (1) to read as fol-
lows: 
‘‘(1) file—
‘‘(A) a list of creditors; and 
‘‘(B) unless the court orders otherwise—
169
‘‘(i) a schedule of assets and liabil-
ities; 
‘‘(ii) a schedule of current income and 
current expenditures; 
‘‘(iii) a statement of the debtor’s fi-
nancial affairs and, if section 342(b) ap-
plies, a certificate—
‘‘(I) of an attorney whose name 
is indicated on the petition as the at-
torney for the debtor, or any bank-
ruptcy petition preparer signing the 
petition under section 110(b)(1), indi-
cating that such attorney or such 
bankruptcy petition preparer delivered 
to the debtor the notice required by 
section 342(b); or 
‘‘(II) if no attorney is so indi-
cated, and no bankruptcy petition pre-
parer signed the petition, of the debt-
or that such notice was received and 
read by the debtor; 
‘‘(iv) copies of all payment advices or 
other evidence of payment received within 
60 days before the filing of the petition, by
170
the debtor from any employer of the debt-
or; 
‘‘(v) a statement of the amount of 
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 the filing of the peti-
tion;’’; and 
(2) by adding at the end the following: 
‘‘(e)(1) If the debtor in a case under chapter 7 or 
13 is an individual and if a creditor files with the court 
at any time a request to receive a copy of the petition, 
schedules, and statement of financial affairs filed by the 
debtor, then the court shall make such petition, such 
schedules, and such statement available to such creditor.
‘‘(2)(A) The debtor shall provide—
‘‘(i) not later than 7 days before the date first 
set for the first meeting of creditors, to the trustee 
a copy of the Federal income tax return required 
under applicable law (or at the election of the debt-
or, a transcript of such return) for the most recent 
tax year ending immediately before the commence-
171
ment of the case and for which a Federal income tax 
return was filed; and 
‘‘(ii) at the same time the debtor complies with 
clause (i), a copy of such return (or if elected under 
clause (i), such transcript) to any creditor that time-
ly requests such copy. 
‘‘(B) If the debtor fails to comply with clause (i) or 
(ii) of subparagraph (A), the court shall dismiss the case 
unless the debtor demonstrates that the failure to so com-
ply is due to circumstances beyond the control of the debt-
or. 
‘‘(C) If a creditor requests a copy of such tax return 
or such transcript and if the debtor fails to provide a copy 
of such tax return or such transcript to such creditor at 
the time the debtor provides such tax return or such tran-
script to the trustee, then the court shall dismiss the case 
unless the debtor demonstrates that the failure to provide 
a copy of such tax return or such transcript is due to cir-
cumstances beyond the control of the debtor. 
‘‘(3) If a creditor in a case under chapter 13 files 
with the court at any time a request to receive a copy 
of the plan filed by the debtor, then the court shall make 
available to such creditor a copy of such plan—
‘‘(A) at a reasonable cost; and
172
‘‘(B) not later than 5 days after such request 
is filed. 
‘‘(f) At the request of the court, the United States 
trustee, or any party in interest in a case under chapter 
7, 11, or 13, a debtor who is an individual shall file with 
the court— 
‘‘(1) at the same time filed with the taxing au-
thority, a copy of each Federal income tax return re-
quired under applicable law (or at the election of the 
debtor, a transcript of such tax return) with respect 
to each tax year of the debtor ending while the case 
is pending under such chapter; 
‘‘(2) at the same time filed with the taxing au-
thority, each Federal income tax return required 
under applicable law (or at the election of the debt-
or, a transcript of such tax return) that had not 
been filed with such authority as of the date of the 
commencement of the case and that was subse-
quently filed for any tax year of the debtor ending 
in the 3-year period ending on the date of the com-
mencement of the case; 
‘‘(3) a copy of each amendment to any Federal 
income tax return or transcript filed with the court 
under paragraph (1) or (2); and 
‘‘(4) in a case under chapter 13—
173
‘‘(A) on the date that is either 90 days 
after the end of such tax year or 1 year after 
the date of the commencement of the case, 
whichever is later, if a plan is not confirmed be-
fore such later date; and 
‘‘(B) annually after the plan is confirmed 
and until the case is closed, not later than the 
date that is 45 days before the anniversary of 
the confirmation of such plan; 
a statement, under penalty of perjury, of the income 
and expenditures of the debtor during the tax year 
of the debtor most recently concluded before such 
statement is filed under this paragraph, and of the 
monthly income of the debtor, that shows how in-
come, expenditures, and monthly income are cal-
culated. 
‘‘(g)(1) A statement referred to in subsection (f)(4) 
shall disclose—
‘‘(A) the amount and sources of the income of 
the debtor; 
‘‘(B) the identity of any person responsible with 
the debtor for the support of any dependent of the 
debtor; and
174
‘‘(C) the identity of any person who contrib-
uted, 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 subsections 
(e)(2)(A) and (f) shall be available to the United States 
trustee (or the bankruptcy administrator, if any), the 
trustee, and any party in interest for inspection and copy-
ing, subject to the requirements of subsection (h). 
‘‘(h)(1) Not later than 180 days after the date of the 
enactment of the Bankruptcy Abuse Prevention and Con-
sumer Protection Act of 2003, the Director of the Admin-
istrative Office of the United States Courts shall establish 
procedures for safeguarding the confidentiality of any tax 
information required to be provided under this section. 
‘‘(2) The procedures under paragraph (1) shall in-
clude restrictions on creditor access to tax information 
that is required to be provided under this section. 
‘‘(3) Not later than 540 days after the date of enact-
ment of the Bankruptcy Abuse Prevention and Consumer 
Protection Act of 2003, the Director of the Administrative 
Office of the United States Courts shall prepare and sub-
mit to the President pro tempore of the Senate and the 
Speaker of the House of Representatives a report that—
175
‘‘(A) assesses the effectiveness of the proce-
dures established 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. 
‘‘(i) If requested by the United States trustee or by 
the trustee, 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; or 
‘‘(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 
amended by sections 106, 225, 305, and 315, is amended 
by adding at the end the following: 
‘‘(j)(1) Subject to paragraphs (2) and (4) and not-
withstanding section 707(a), if an individual debtor in a
176
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) Subject to paragraph (4) and 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 an order of dis-
missal not later than 5 days after such request. 
‘‘(3) Subject to paragraph (4) and upon request of 
the debtor made within 45 days after the filing of the peti-
tion commencing a case described in paragraph (1), the 
court may allow the debtor an additional period of not to 
exceed 45 days to file the information required under sub-
section (a)(1) if the court finds justification for extending 
the period for the filing. 
‘‘(4) Notwithstanding any other provision of this sub-
section, on the motion of the trustee filed before the expi-
ration of the applicable period of time specified in para-
graph (1), (2), or (3), and after notice and a hearing, the 
court may decline to dismiss the case if the court finds 
that the debtor attempted in good faith to file all the infor-
mation required by subsection (a)(1)(B)(iv) and that the
177
best interests of creditors would be served by administra-
tion of the case.’’.
SEC. 317. ADEQUATE TIME TO PREPARE FOR HEARING ON 
CONFIRMATION OF THE PLAN. 
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 earlier than 20 days and not later than 45 
days after the date of the meeting of creditors under sec-
tion 341(a), unless the court determines that it would be 
in the best interests of the creditors and the estate to hold 
such hearing at an earlier date and there is no objection 
to such earlier date.’’. 
SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION 
IN CERTAIN CASES. 
Title 11, United States Code, is amended—
(1) by amending section 1322(d) to read as fol-
lows:
178
‘‘(d)(1) If the current monthly income of the debtor 
and the debtor’s spouse combined, when multiplied by 12, 
is not less than—
‘‘(A) in the case of a debtor in a household of 
1 person, the median family income of the applicable 
State for 1 earner; 
‘‘(B) in the case of a debtor in a household of 
2, 3, or 4 individuals, the highest median family in-
come of the applicable State for a family of the same 
number or fewer individuals; or 
‘‘(C) in the case of a debtor in a household ex-
ceeding 4 individuals, the highest median family in-
come of the applicable State for a family of 4 or 
fewer individuals, plus $525 per month for each in-
dividual in excess of 4, 
the plan may not provide for payments over a period that 
is longer than 5 years. 
‘‘(2) If the current monthly income of the debtor and 
the debtor’s spouse combined, when multiplied by 12, is 
less than—
‘‘(A) in the case of a debtor in a household of 
1 person, the median family income of the applicable 
State for 1 earner last; 
‘‘(B) in the case of a debtor in a household of 
2, 3, or 4 individuals, the highest median family in-
179
come of the applicable State for a family of the same 
number or fewer individuals; or 
‘‘(C) in the case of a debtor in a household ex-
ceeding 4 individuals, the highest median family in-
come of the applicable State for a family of 4 or 
fewer individuals , plus $525 per month for each in-
dividual in excess of 4, 
the plan may not provide for payments over a period that 
is longer than 3 years, unless the court, for cause, ap-
proves a longer period, but the court may not approve a 
period that is longer than 5 years.’’; 
(2) in section 1325(b)(1)(B), by striking 
‘‘three-year period’’ and inserting ‘‘applicable com-
mitment period’’; and 
(3) in section 1325(b), as amended by section 
102, by adding at the end the following: 
‘‘(4) For purposes of this subsection, the ‘applicable 
commitment period’—
‘‘(A) subject to subparagraph (B), shall be—
‘‘(i) 3 years; or 
‘‘(ii) not less than 5 years, if the current 
monthly income of the debtor and the debtor’s 
spouse combined, when multiplied by 12, is not 
less than—
180
‘‘(I) in the case of a debtor in a 
household of 1 person, the median family 
income of the applicable State for 1 earn-
er; 
‘‘(II) in the case of a debtor in a 
household of 2, 3, or 4 individuals, the 
highest median family income of the appli-
cable State for a family of the same num-
ber or fewer individuals; or 
‘‘(III) in the case of a debtor in a 
household exceeding 4 individuals, the 
highest median family income of the appli-
cable State for a family of 4 or fewer indi-
viduals , plus $525 per month for each in-
dividual in excess of 4; and 
‘‘(B) may be less than 3 or 5 years, whichever 
is applicable under subparagraph (A), but only if the 
plan provides for payment in full of all allowed unse-
cured claims over a shorter period.’’; and 
(4) in section 1329(c), by striking ‘‘three 
years’’ and inserting ‘‘the applicable commitment pe-
riod under section 1325(b)(1)(B)’’.
181
SEC. 319. SENSE OF CONGRESS REGARDING EXPANSION OF 
RULE 9011 OF THE FEDERAL RULES OF BANK-
RUPTCY PROCEDURE. 
It is the sense of Congress that rule 9011 of the Fed-
eral Rules of Bankruptcy Procedure (11 U.S.C. App.) 
should be modified to include a requirement that all docu-
ments (including schedules), signed and unsigned, sub-
mitted to the court or to a trustee by debtors who rep-
resent themselves and debtors who are represented by at-
torneys be submitted only after the debtors or the debtors’ 
attorneys have made reasonable inquiry to verify that the 
information contained in such documents is—
(1) well grounded in fact; and 
(2) warranted by existing law or a good faith 
argument 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 a case under 
chapter 7, 11, or 13 in which the debtor is an individual, 
the stay under subsection (a) shall terminate on the date
182
that is 60 days after a request is made by a party in inter-
est under subsection (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 add-
ing at the end the following: 
‘‘§ 1115. Property of the estate 
‘‘(a) In a case concerning a debtor who is an indi-
vidual, property of the estate includes, in addition to the 
property specified in section 541—
‘‘(1) all property of the kind specified in section 
541 that the debtor acquires after the commence-
ment of the case but before the case is closed, dis-
183
missed, or converted to a case under chapter 7, 12, 
or 13, whichever occurs first; and 
‘‘(2) earnings from services performed by the 
debtor after the commencement of the case but be-
fore the case is closed, dismissed, or converted to a 
case under chapter 7, 12, or 13, whichever occurs 
first.’’. 
‘‘(b) Except as provided in section 1104 or a con-
firmed plan or order confirming a plan, the debtor shall 
remain in possession of all property of the estate.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for 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.’’.
(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 in which the debtor is an indi-
vidual, provide for the payment to creditors under 
the plan of all or such portion of earnings from per-
sonal services performed by the debtor after the
184
commencement of the case or other future income of 
the debtor as is necessary for the execution of the 
plan.’’. 
(c) CONFIRMATION OF PLAN.—
(1) REQUIREMENTS RELATING TO VALUE OF 
PROPERTY.—Section 1129(a) of title 11, United 
States Code, as amended by section 213, is amended 
by adding at the end the following: 
‘‘(15) In a case in which the debtor is an indi-
vidual and in which the holder of an allowed unse-
cured claim objects to the confirmation of the plan—
‘‘(A) the value, as of the effective date of 
the plan, of the property to be distributed 
under the plan on account of such claim is not 
less than the amount of such claim; or 
‘‘(B) the value of the property to be dis-
tributed under the plan is not less than the pro-
jected disposable income of the debtor (as de-
fined in section 1325(b)(2)) to be received dur-
ing the 5-year period beginning on the date that 
the first payment is due under the plan, or dur-
ing the period for which the plan provides pay-
ments, whichever is longer.’’.
(2) REQUIREMENT RELATING TO INTERESTS IN 
PROPERTY.—Section 1129(b)(2)(B)(ii) of title 11,
185
United States Code, is amended by inserting before 
the period at the end the following: ‘‘, except that 
in a case in which the debtor is an individual, the 
debtor may retain property included in the estate 
under section 1115, subject to the requirements of 
subsection (a)(14) of this section.’’.
(d) EFFECT OF CONFIRMATION.—Section 1141(d) of 
title 11, United States Code, is amended—
(1) in paragraph (2), by striking ‘‘The con-
firmation of a plan does not discharge an individual 
debtor’’ and inserting ‘‘A discharge under this chap-
ter does not discharge a debtor who is an indi-
vidual’’; and 
(2) by adding at the end the following: 
‘‘(5) In a case in which the debtor is an individual—
‘‘(A) unless after notice and a hearing the court 
orders otherwise for cause, confirmation of the plan 
does not discharge any debt provided for in the plan 
until the court grants a discharge on completion of 
all payments under the plan; 
‘‘(B) at any time after the confirmation of the 
plan, and after notice and a hearing, the court may 
not grant a discharge to the debtor who has not 
completed payments under the plan unless—
186
‘‘(i) for each allowed unsecured claim, the 
value, as of the effective date of the plan, of 
property actually distributed under the plan on 
account 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 liq-
uidated under chapter 7 of this title on such 
date; and 
‘‘(ii) modification of the plan under section 
1127 of this title is not practicable; and’’. 
(e) MODIFICATION OF PLAN.—Section 1127 of title 
11, United States Code, is amended by adding at the end 
the following: 
‘‘(e) If the debtor is 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 trust-
ee, 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
187
‘‘(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 court may direct, notice and a hearing, and such 
modification is approved.’’.
SEC. 322. LIMITATIONS ON HOMESTEAD EXEMPTION. 
(a) EXEMPTIONS.—Section 522 of title 11, United 
States Code, as amended by sections 224 and 308, is 
amended by adding at the end the following: 
‘‘(p)(1)Except as provided in paragraph (2) of this 
subsection and sections 544 and 548 of this title, as a 
result of electing under subsection (b)(3)(A) to exempt 
property under State or local law, a debtor may not ex-
empt any amount of interest that was acquired by the 
debtor during the 1215-day period preceding the filing of 
the petition which exceeds in the aggregate $125,000 in 
value in—
‘‘(A) real or personal property that the debtor 
or a dependent of the debtor uses as a residence;
188
‘‘(B) a cooperative that owns property that the 
debtor or a dependent of the debtor uses as a resi-
dence; 
‘‘(C) a burial plot for the debtor or a dependent 
of the debtor; or 
‘‘(D) real or personal property that the debtor 
or dependent of the debtor claims as a homestead. 
‘‘(2)(A) 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 
farmer. 
‘‘(B) For purposes of paragraph (1), any amount of 
such interest does not include any interest transferred 
from a debtor’s previous principal residence (which was 
acquired prior to the beginning of such 1215-day period) 
into the debtor’s current principal residence, if the debt-
or’s previous and current residences are located in the 
same State. 
‘‘(q)(1) As a result of electing under subsection 
(b)(3)(A) to exempt property under State or local law, a 
debtor may not exempt any amount of an interest in prop-
erty described in subparagraphs (A), (B), and (C) of sub-
section (p) which exceeds in the aggregate $125,000 if—
‘‘(A) the court determines, after notice and a 
hearing, that the debtor has been convicted of a fel-
189
ony (as defined in section 3156 of title 18), which 
under the circumstances, demonstrates that the fil-
ing of the case was an abuse of the provisions of this 
title; or 
‘‘(B) the debtor owes a debt arising from—
‘‘(i) any violation of the Federal securities 
laws (as defined in section 3(a)(47) of the Secu-
rities Exchange Act of 1934), any State securi-
ties laws, or any regulation or order issued 
under Federal securities laws or State securities 
laws; 
‘‘(ii) fraud, deceit, or manipulation in a fi-
duciary capacity or in connection with the pur-
chase or sale of any security registered under 
section 12 or 15(d) of the Securities Exchange 
Act of 1934 or under section 6 of the Securities 
Act of 1933; 
‘‘(iii) any civil remedy under section 1964 
of title 18, United States Code; or 
‘‘(iv) any criminal act, intentional tort, or 
willful or reckless misconduct that caused seri-
ous physical injury or death to another indi-
vidual in the preceding 5 years. 
‘‘(2) Paragraph (1) shall not apply to the extent the 
amount of an interest in property described in subpara-
190
graphs (A), (B), and (C) of subsection (p) is reasonably 
necessary for the support of the debtor and any dependent 
of the debtor.’’. 
(b) ADJUSTMENT
OF DOLLAR AMOUNTS.—Para-
graphs (1) and (2) of section 104(b) of title 11, United 
States Code, as amended by section 224, are amended by 
inserting ‘‘522(p), 522(q),’’ after ‘‘522(n),’’.
SEC. 323. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICI-
PANT CONTRIBUTIONS AND OTHER PROP-
ERTY FROM THE ESTATE. 
Section 541(b) of title 11, United States Code, as 
amended by section 225, is amended by adding at the end 
the following: 
‘‘(7) any amount—
‘‘(A) withheld by an employer from the 
wages of employees for payment as contribu-
tions to— 
‘‘(i) an employee benefit plan subject 
to title I of the Employee Retirement In-
come Security Act of 1974 or under an 
employee benefit plan which is a govern-
mental plan under section 414(d) of the 
Internal Revenue Code of 1986, a deferred 
compensation plan under section 457 of 
the Internal Revenue Code of 1986, or a
191
tax-deferred annuity under section 403(b) 
of the Internal Revenue Code of 1986, ex-
cept that such amount under this clause 
shall not constitute disposable income, as 
defined in section 1325(b)(2) of this title; 
or 
‘‘(ii) a health insurance plan regulated 
by State law whether or not subject to 
such title; or 
‘‘(B) received by the employer from em-
ployees for payment as contributions to— 
‘‘(i) an employee benefit plan subject 
to title I of the Employee Retirement In-
come Security Act of 1974 or under an 
employee benefit plan which is a govern-
mental plan under section 414(d) of the 
Internal Revenue Code of 1986, a deferred 
compensation plan under section 457 of 
the Internal Revenue Code of 1986, or a 
tax-deferred annuity under section 403(b) 
of the Internal Revenue Code of 1986, ex-
cept that such amount under this clause 
shall not constitute disposable income, as 
defined in section 1325(b)(2) of this title; 
or
192
‘‘(ii) a health insurance plan regulated 
by State law whether or not subject to 
such title;’’. 
SEC. 324. EXCLUSIVE JURISDICTION IN MATTERS INVOLV-
ING BANKRUPTCY PROFESSIONALS. 
(a) IN GENERAL.—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) by striking subsection (e) and inserting the 
following: 
‘‘(e) The district court in which a case under title 
11 is commenced or is pending shall have exclusive juris-
diction—
‘‘(1) of all the property, wherever located, of the 
debtor as of the date of 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.’’. 
(b) APPLICABILITY.—This section shall only apply to 
cases filed after the date of enactment of this Act.
193
SEC. 325. 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 
section 1930(a)(1)(B) of this title in cases com-
menced 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
194
by striking ‘‘pursuant to 28 U.S.C. section 1930(b) and 
33.87 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 sec-
tion 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 sec-
tion 1930(a)(1)(B) of that title, and 25 percent of the fees 
collected under section 1930(a)(3) of that title shall be 
deposited as offsetting receipts to the fund established 
under section 1931 of that title’’. 
SEC. 326. SHARING OF COMPENSATION. 
Section 504 of title 11, United States Code, is 
amended by adding at the end the following: 
‘‘(c) This section shall not apply with respect to shar-
ing, or agreeing to share, compensation with a bona fide 
public service attorney referral program that operates in 
accordance with non-Federal law regulating attorney re-
ferral services and with rules of professional responsibility 
applicable to attorney acceptance of referrals.’’. 
SEC. 327. FAIR VALUATION OF COLLATERAL. 
Section 506(a) of title 11, United States Code, is 
amended by—
195
(1) inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(2) by adding at the end the following: 
‘‘(2) If the debtor is an individual in a case under 
chapter 7 or 13, such value with respect to personal prop-
erty securing an allowed claim shall be determined based 
on the replacement value of such property as of the date 
of filing the petition without deduction for costs of sale 
or marketing. With respect to property acquired for per-
sonal, family, or household purposes, replacement value 
shall mean the price a retail merchant would charge for 
property of that kind considering the age and condition 
of the property at the time value is determined.’’. 
SEC. 328. DEFAULTS BASED ON NONMONETARY OBLIGA-
TIONS. 
(a) EXECUTORY
CONTRACTS
AND
UNEXPIRED 
LEASES.—Section 365 of title 11, United States Code, is 
amended—
(1) in subsection (b)—
(A) in paragraph (1)(A), by striking the 
semicolon at the end and inserting the fol-
lowing: ‘‘other than a default that is a breach 
of a provision relating to the satisfaction of any 
provision (other than a penalty rate or penalty 
provision) relating to a default arising from any 
failure to perform nonmonetary obligations
196
under an unexpired lease of real property, if it 
is impossible for the trustee to cure such de-
fault by performing nonmonetary acts at and 
after the time of assumption, except that if 
such default arises from a failure to operate in 
accordance with a nonresidential real property 
lease, then such default shall be cured by per-
formance at and after the time of assumption 
in accordance with such lease, and pecuniary 
losses resulting from such default shall be com-
pensated in accordance with the provisions of 
this paragraph;’’; and 
(B) in paragraph (2)(D), by striking ‘‘pen-
alty rate or provision’’ and inserting ‘‘penalty 
rate or penalty provision’’; 
(2) in subsection (c)—
(A) in paragraph (2), by inserting ‘‘or’’ at 
the end; 
(B) in paragraph (3), by striking ‘‘; or’’ at 
the end and inserting a period; and 
(C) by striking paragraph (4); 
(3) in subsection (d)—
(A) by striking paragraphs (5) through 
(9); and
197
(B) by redesignating paragraph (10) as 
paragraph (5); and 
(4) in subsection (f)(1) by striking ‘‘; except 
that’’ and all that follows through the end of the 
paragraph and inserting a period. 
(b) IMPAIRMENT OF CLAIMS OR INTERESTS.—Sec-
tion 1124(2) of title 11, United States Code, is amend-
ed—
(1) in subparagraph (A), by inserting ‘‘or of a 
kind that section 365(b)(2) of this title expressly 
does not require to be cured’’ before the semicolon 
at the end; 
(2) in subparagraph (C), by striking ‘‘and’’ at 
the end; 
(3) by redesignating subparagraph (D) as sub-
paragraph (E); and 
(4) by inserting after subparagraph (C) the fol-
lowing: 
‘‘(D) if such claim or such interest arises 
from any failure to perform a nonmonetary ob-
ligation, other than a default arising from fail-
ure to operate a nonresidential real property 
lease subject to section 365(b)(1)(A), com-
pensates the holder of such claim or such inter-
est (other than the debtor or an insider) for any
198
actual pecuniary loss incurred by such holder as 
a result of such failure; and’’.
SEC. 329. 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 pre-
serving the estate including—
‘‘(i) wages, salaries, or commissions for services 
rendered after the commencement of the case; and 
‘‘(ii) wages and benefits awarded pursuant to a 
judicial proceeding or a proceeding of the National 
Labor Relations Board as back pay attributable to 
any period of time occurring after commencement of 
the case under this title, as a result of a violation 
of Federal or State law by the debtor, without re-
gard to the time of the occurrence of unlawful con-
duct on which such award is based or to whether 
any services were rendered, if the court determines 
that payment of wages and benefits by reason of the 
operation of this clause will not substantially in-
crease the probability of layoff or termination of cur-
rent employees, or of nonpayment of domestic sup-
port obligations, during the case under this title;’’.
199
SEC. 330. DELAY OF DISCHARGE DURING PENDENCY OF 
CERTAIN PROCEEDINGS. 
(a) CHAPTER 7.—Section 727(a) of title 11, United 
States Code, as amended by section 106, is amended—
(1) in paragraph (10), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (11) by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by inserting after paragraph (11) the fol-
lowing: 
‘‘(12) the court after notice and a hearing held 
not more than 10 days before the date of entry of 
the order granting the discharge finds that there is 
reasonable cause to believe that—
‘‘(A) section 522(q)(1) may be applicable 
to the debtor; and 
‘‘(B) there is pending any proceeding in 
which the debtor may be found guilty of a fel-
ony 
of 
the 
kind 
described 
in 
section 
522(q)(1)(A) or liable for a debt of the kind de-
scribed in section 522(q)(1)(B); or’’. 
(b) CHAPTER 11.—Section 1141(d) of title 11, 
United States Code, as amended by section 321, is amend-
ed by adding at the end the following: 
‘‘(C) unless after notice and a hearing held 
not more than 10 days before the date of entry
200
of the order granting the discharge, the court 
finds that there is no reasonable cause to be-
lieve that—
‘‘(i) section 522(q)(1) may be applica-
ble to the debtor; and 
‘‘(ii) there is pending any proceeding 
in which the debtor may be found guilty of 
a felony of the kind described in section 
522(q)(1)(A) or liable for a debt of the 
kind described in section 522(q)(1)(B).’’. 
(c) CHAPTER 12.—Section 1228 of title 11, United 
States Code, is amended—
(1) in subsection (a) by striking ‘‘As’’ and in-
serting ‘‘Subject to subsection (d), as’’, 
(2) in subsection (b) by striking ‘‘At’’ and in-
serting ‘‘Subject to subsection (d), at’’, and 
(3) by adding at the end the following: 
‘‘(f) The court may not grant a discharge under this 
chapter unless the court after notice and a hearing held 
not more than 10 days before the date of entry of the 
order granting the discharge finds that there is no reason-
able cause to believe that—
‘‘(1) section 522(q)(1) may be applicable to the 
debtor; and
201
‘‘(2) there is pending any proceeding in which 
the debtor may be found guilty of a felony of the 
kind described in section 522(q)(1)(A) or liable for 
a 
debt 
of 
the 
kind 
described 
in 
section 
522(q)(1)(B).’’. 
(d) CHAPTER 13.—Section 1328 of title 11, United 
States Code, as amended by section 106, is amended—
(1) in subsection (a) by striking ‘‘As’’ and in-
serting ‘‘Subject to subsection (d), as’’, 
(2) in subsection (b) by striking ‘‘At’’ and in-
serting ‘‘Subject to subsection (d), at’’, and 
(3) by adding at the end the following: 
‘‘(h) The court may not grant a discharge under this 
chapter unless the court after notice and a hearing held 
not more than 10 days before the date of entry of the 
order granting the discharge finds that there is no reason-
able cause to believe that—
‘‘(1) section 522(q)(1) may be applicable to the 
debtor; and 
‘‘(2) there is pending any proceeding in which 
the debtor may be found guilty of a felony of the 
kind described in section 522(q)(1)(A) or liable for 
a 
debt 
of 
the 
kind 
described 
in 
section 
522(q)(1)(B).’’.
202
TITLE IV—GENERAL AND SMALL 
BUSINESS BANKRUPTCY PRO-
VISIONS 
Subtitle A—General Business 
Bankruptcy Provisions 
SEC. 401. ADEQUATE PROTECTION FOR INVESTORS. 
(a) DEFINITION.—Section 101 of title 11, United 
States Code, 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 or 
a national securities exchange registered with the 
Securities and Exchange Commission under section 
6 of the Securities Exchange Act of 1934;’’. 
(b) AUTOMATIC STAY.—Section 362(b) of title 11, 
United States Code, as amended by sections 224, 303, and 
311, is amended by inserting after paragraph (24) the fol-
lowing: 
‘‘(25) under subsection (a), of—
‘‘(A) the commencement or continuation of 
an investigation or action by a securities self 
regulatory organization to enforce such organi-
zation’s regulatory power;
203
‘‘(B) the enforcement of an order or deci-
sion, other than for monetary sanctions, ob-
tained in an action by the securities self regu-
latory organization to enforce such organiza-
tion’s regulatory power; or 
‘‘(C) any act taken by the securities self 
regulatory organization to delist, delete, or 
refuse to permit quotation of any stock that 
does not meet applicable regulatory require-
ments;’’. 
SEC. 402. MEETINGS OF CREDITORS AND EQUITY SECURITY 
HOLDERS. 
Section 341 of title 11, United States Code, is 
amended by adding at the end the following: 
‘‘(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 secu-
rity holders if the debtor has filed a plan as to which the 
debtor solicited acceptances prior to the commencement 
of the case.’’.
204
SEC. 403. PROTECTION OF REFINANCE OF SECURITY IN-
TEREST. 
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. 
404. 
EXECUTORY 
CONTRACTS 
AND 
UNEXPIRED 
LEASES. 
(a) IN GENERAL.—Section 365(d)(4) of title 11, 
United States Code, is amended to read as follows: 
‘‘(4)(A) Subject to subparagraph (B), an unexpired 
lease of nonresidential real property under which the debt-
or is the lessee shall be deemed rejected, and the trustee 
shall immediately surrender that nonresidential real prop-
erty 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 
‘‘(ii) the date of the entry of an order con-
firming a plan. 
‘‘(B)(i) The court may extend the period determined 
under subparagraph (A), prior to the expiration of the 
120-day period, for 90 days on the motion of the trustee 
or lessor for cause. 
‘‘(ii) If the court grants an extension under clause 
(i), the court may grant a subsequent extension only upon 
prior written consent of the lessor in each instance.’’.
205
(b) EXCEPTION.—Section 365(f)(1) of title 11, 
United States Code, is amended by striking ‘‘subsection’’ 
the first place it appears and inserting ‘‘subsections (b) 
and’’. 
SEC. 405. CREDITORS AND EQUITY SECURITY HOLDERS 
COMMITTEES. 
(a) APPOINTMENT.—Section 1102(a) of title 11, 
United States Code, is amended by adding at the end the 
following: 
‘‘(4) On request of a party in interest and after notice 
and a hearing, the court may order the United States 
trustee to change the membership of a committee ap-
pointed 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 
order the United States trustee to increase 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 , if the court determines that 
the creditor holds claims (of the kind represented by the 
committee) the aggregate amount of which, in comparison 
to the annual gross revenue of that creditor, is dispropor-
tionately large.’’.
206
(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—
‘‘(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 
creditors 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. 406. 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 (g) 
(as added by section 222(a) of Public Law 103–394) 
as subsection (i); 
(2) in subsection (i), as so redesignated, by in-
serting ‘‘and subject to the prior rights of holders of
207
security interests in such goods or the proceeds of 
such goods’’ after ‘‘consent of a creditor’’; and 
(3) by adding at the end the following: 
‘‘(j)(1) Notwithstanding paragraphs (2) and (3) of 
section 545, 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 State statute appli-
cable to such lien that is similar to section 7–209 of the 
Uniform Commercial Code, as in effect on the date of en-
actment of the Bankruptcy Abuse Prevention and Con-
sumer Protection Act of 2003, or any successor to such 
section 7–209.’’. 
SEC. 407. AMENDMENTS TO SECTION 330(a) OF TITLE 11, 
UNITED STATES CODE. 
Section 330(a) of title 11, United States Code, is 
amended—
(1) in paragraph (3)—
(A) by striking ‘‘(A) In’’ and inserting 
‘‘In’’; and 
(B) by inserting ‘‘to an examiner, trustee 
under chapter 11, or professional person’’ after 
‘‘awarded’’; and 
(2) by adding at the end the following:
208
‘‘(7) In determining the amount of reasonable com-
pensation to be awarded to a trustee, the court shall treat 
such compensation as a commission, based on section 326 
of this title.’’. 
SEC. 408. POSTPETITION DISCLOSURE AND SOLICITATION. 
Section 1125 of title 11, United States Code, is 
amended by adding at the end the following: 
‘‘(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 ap-
plicable nonbankruptcy law and if such holder was solic-
ited before the commencement of the case in a manner 
complying with applicable nonbankruptcy law.’’. 
SEC. 409. 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 
payment of a debt incurred by the debtor in the or-
dinary 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
209
‘‘(B) made according to ordinary business 
terms;’’; 
(2) in paragraph (8), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(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. 410. 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. 411. 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 (2), 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.’’.
210
SEC. 412. FEES ARISING FROM CERTAIN OWNERSHIP IN-
TERESTS. 
Section 523(a)(16) of title 11, United States Code, 
is amended—
(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 ‘‘such period,’’ and inserting ‘‘or a lot in a 
homeowners association, for as long as the debtor or 
the trustee has a legal, equitable, or possessory own-
ership interest in such unit, such corporation, or 
such lot,’’. 
SEC. 413. CREDITOR REPRESENTATION AT FIRST MEETING 
OF CREDITORS. 
Section 341(c) of title 11, United States Code, is 
amended by inserting at the end the following: ‘‘Notwith-
standing any local court rule, provision of a State constitu-
tion, any other Federal or State law that is not a bank-
ruptcy law, or other requirement that representation at 
the meeting of creditors under subsection (a) be by an at-
torney, a creditor holding a consumer debt or any rep-
resentative of the creditor (which may include an entity
211
or 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 
chapter 7 or 13, either alone or in conjunction with an 
attorney for the creditor. Nothing in this subsection shall 
be construed to require any creditor to be represented by 
an attorney at any meeting of creditors.’’. 
SEC. 414. 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 di-
rector, 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;’’.
212
SEC. 415. FACTORS FOR COMPENSATION OF PROFES-
SIONAL PERSONS. 
Section 330(a)(3) of title 11, United States Code, is 
amended—
(1) in subparagraph (D), by striking ‘‘and’’ at 
the end; 
(2) by redesignating subparagraph (E) as sub-
paragraph (F); and 
(3) by inserting after subparagraph (D) the fol-
lowing: 
‘‘(E) with respect to a professional person, 
whether the person is board certified or otherwise 
has demonstrated skill and experience in the bank-
ruptcy field; and’’. 
SEC. 416. 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)—
213
‘‘(i) the trustee elected under paragraph (1) 
shall be considered to have been selected and ap-
pointed for purposes of this section; and 
‘‘(ii) the service of any trustee appointed under 
subsection (d) shall terminate. 
‘‘(C) The court shall resolve any dispute arising out 
of an election described in subparagraph (A).’’. 
SEC. 417. 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.
214
‘‘(B) For purposes of this subsection an administrative ex-
pense priority shall not constitute an assurance of pay-
ment. 
‘‘(2) Subject to paragraphs (3) and (4), with respect 
to a case filed under chapter 11, a utility referred to in 
subsection (a) may alter, refuse, or discontinue utility 
service, if during the 30-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 para-
graph (2). 
‘‘(B) In making a determination under this para-
graph whether an assurance of payment is adequate, the 
court may not consider—
‘‘(i) the absence of security before the date of 
filing 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.
215
‘‘(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 utility by the debtor before the date of filing of the 
petition without notice or order of the court.’’. 
SEC. 418. 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’’ and insert-
ing ‘‘The’’; and 
(2) by adding at the end the following: 
‘‘(f)(1) Under the procedures prescribed by the Judi-
cial Conference of the United States, the district court or 
the bankruptcy court may waive the filing fee in a case 
under chapter 7 of title 11 for an individual if the court 
determines that such individual has income less than 150 
percent of the income official poverty line (as defined by 
the Office of Management and Budget, and revised annu-
ally in accordance with section 673(2) of the Omnibus 
Budget Reconciliation Act of 1981) applicable to a family 
of the size involved and is unable to pay that fee in install-
ments. For purposes of this paragraph, the term ‘filing 
fee’ means the filing required by subsection (a), or any 
other fee prescribed by the Judicial Conference under sub-
216
sections (b) and (c) that is payable to the clerk upon the 
commencement of a case under chapter 7. 
‘‘(2) The district court or the bankruptcy court may 
waive for such debtors other fees prescribed under sub-
sections (b) and (c). 
‘‘(3) This subsection does not restrict the district 
court or the bankruptcy court from waiving, in accordance 
with Judicial Conference policy, fees prescribed under this 
section for other debtors and creditors.’’. 
SEC. 419. 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 United States 
Trustees, shall propose for adoption amended Fed-
eral Rules of Bankruptcy Procedure and Official 
Bankruptcy Forms directing debtors under chapter 
11 of title 11, United States Code, to disclose the 
information described in paragraph (2) by filing and 
serving periodic financial and other reports designed 
to provide such information. 
(2) INFORMATION.—The information referred 
to in paragraph (1) is the value, operations, and
217
profitability of any closely held corporation, partner-
ship, or of any other entity in which the debtor holds 
a substantial 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 
entity referred to in subsection (a)(2) is used for the pay-
ment 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 
amended—
(1) in subsection (a)(1), by inserting before the 
semicolon ‘‘and in determining whether a disclosure 
statement provides adequate information, the court 
shall consider the complexity of the case, the benefit 
of additional information to creditors and other par-
ties in interest, and the cost of providing additional 
information’’; and 
(2) by striking subsection (f), and inserting the 
following: 
‘‘(f) Notwithstanding subsection (b), in a small busi-
ness case—
218
‘‘(1) the court may determine that the plan 
itself provides adequate information and that a sepa-
rate disclosure statement is not necessary; 
‘‘(2) 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 
‘‘(3)(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 disclo-
sure statement if the debtor provides adequate infor-
mation 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 be-
fore 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. 
(a) DEFINITIONS.—Section 101 of title 11, United 
States Code, is amended by striking paragraph (51C) and 
inserting the following:
219
‘‘(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 engaged in commercial or business ac-
tivities (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 or operating real property or ac-
tivities incidental thereto) that has aggregate 
noncontingent, liquidated secured and unse-
cured debts as of the date of the petition or the 
order for relief in an amount not more than 
$2,000,000 (excluding debts owed to 1 or more 
affiliates or insiders) for a case in which the 
United States trustee has not appointed under 
section 1102(a)(1) a committee of unsecured 
creditors or where the court has determined 
that the committee of unsecured creditors is not 
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
220
debts in an amount greater than $2,000,000 
(excluding debt owed to 1 or more affiliates or 
insiders);’’. 
(b) CONFORMING AMENDMENT.—Section 1102(a)(3) 
of title 11, United States Code, is amended by inserting 
‘‘debtor’’ after ‘‘small business’’. 
(c) ADJUSTMENT OF DOLLAR AMOUNTS.—Section 
104(b) of title 11, United States Code, as amended by 
section 226, is amended by inserting ‘‘101(51D),’’ after 
‘‘101(3),’’ each place it appears. 
SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND 
PLAN. 
Within a reasonable period of time after the date of 
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 
statements and plans of reorganization for small business 
debtors (as defined in section 101 of title 11, United 
States Code, as amended by this Act), designed to achieve 
a practical 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.
221
SEC. 434. UNIFORM NATIONAL REPORTING REQUIRE-
MENTS. 
(a) REPORTING REQUIRED.—
(1) IN GENERAL.—Chapter 3 of title 11, United 
States Code, is amended by inserting after section 
307 the following: 
‘‘§ 308. Debtor reporting requirements 
‘‘(a) 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. 
‘‘(b) A small business debtor shall file periodic finan-
cial and other reports containing information including—
‘‘(1) the debtor’s profitability; 
‘‘(2) reasonable approximations of the debtor’s 
projected cash receipts and cash disbursements over 
a reasonable period; 
‘‘(3) comparisons of actual cash receipts and 
disbursements with projections in prior reports; 
‘‘(4)(A) whether the debtor is—
‘‘(i) in compliance in all material respects 
with postpetition requirements imposed by this 
title and the Federal Rules of Bankruptcy Pro-
cedure; and
222
‘‘(ii) timely filing tax returns and other re-
quired government filings and paying taxes and 
other administrative expenses when due; 
‘‘(B) if the debtor is not in compliance with the 
requirements referred to in subparagraph (A)(i) or 
filing tax returns and other required government fil-
ings and making the payments referred to in sub-
paragraph (A)(ii), what the failures are and how, at 
what cost, and when the debtor intends to remedy 
such failures; and 
‘‘(C) such other matters as are in the best in-
terests of the debtor and creditors, and in the public 
interest in fair and efficient procedures under chap-
ter 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 
section 307 the following:
‘‘308. Debtor reporting requirements.’’.
(b) EFFECTIVE DATE.—The amendments made by 
subsection (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 com-
ply with section 308 of title 11, United States Code, as 
added by subsection (a).
223
SEC. 435. UNIFORM REPORTING RULES AND FORMS FOR 
SMALL BUSINESS CASES. 
(a) PROPOSAL OF RULES AND FORMS.—The Advi-
sory Committee on Bankruptcy Rules of the Judicial Con-
ference of the United States shall propose for adoption 
amended Federal Rules of Bankruptcy Procedure and Of-
ficial Bankruptcy Forms to be used by small business 
debtors to file periodic financial and other reports con-
taining information, including information relating to—
(1) the debtor’s profitability; 
(2) the debtor’s cash receipts and disburse-
ments; and 
(3) whether the debtor is timely filing tax re-
turns and paying taxes and other administrative ex-
penses 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 informa-
tion; 
(2) the small business debtor’s interest that re-
quired reports be easy and inexpensive to complete; 
and
224
(3) the interest of all parties that the required 
reports 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 chapter 11 of title 11, United States Code, as amended 
by section 321, is amended by adding at the end the fol-
lowing: 
‘‘§ 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 not later than 7 days after the 
date of the order for relief—
‘‘(A) its most recent balance sheet, state-
ment of operations, cash-flow statement, Fed-
eral income tax return; or 
‘‘(B) a statement made under penalty of 
perjury that no balance sheet, statement of op-
erations, or cash-flow statement has been pre-
pared and no Federal tax return has been filed;
225
‘‘(2) attend, through its senior management 
personnel and counsel, meetings scheduled by the 
court or the United States trustee, including initial 
debtor interviews, scheduling conferences, and meet-
ings of creditors convened under section 341 unless 
the court waives that requirement after notice and 
a hearing, upon a finding of extraordinary and com-
pelling circumstances; 
‘‘(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 
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 in-
surance 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 
taxes entitled to administrative expense priority ex-
cept those being contested by appropriate pro-
ceedings being diligently prosecuted; and
226
‘‘(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 debt-
or.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 11 of title 11, United States Code, as amended 
by section 321, is amended by inserting after the item re-
lating to section 1115 the following:
‘‘1116. Duties of trustee or debtor in possession in small business cases.’’.
SEC. 437. PLAN FILING AND CONFIRMATION DEADLINES. 
Section 1121 of title 11, United States Code, is 
amended by striking subsection (e) and inserting the fol-
lowing: 
‘‘(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 a 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
227
‘‘(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 ex-
tended 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 reason-
able period of time; 
‘‘(B) a new deadline is imposed at the time 
the extension is granted; and 
‘‘(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 
amended by adding at the end the following: 
‘‘(e) In a small business case, the court shall confirm 
a plan that complies with the applicable provisions of this 
title and that is filed in accordance with section 1121(e) 
not later than 45 days after such plan is filed unless the 
time for confirmation is extended in accordance with sec-
tion 1121(e)(3).’’.
228
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; and’’; 
(2) in paragraph (5), by striking ‘‘and’’ at the 
end; 
(3) in paragraph (6), by striking the period at 
the end and inserting a semicolon; and 
(4) by adding at the end the following: 
‘‘(7) in each of such small business cases—
‘‘(A) conduct an initial debtor interview as 
soon as practicable after the entry of order for 
relief but before the first meeting scheduled 
under section 341(a) of title 11, at which time 
the United States trustee shall—
229
‘‘(i) begin to investigate the debtor’s 
viability; 
‘‘(ii) inquire about the debtor’s busi-
ness plan; 
‘‘(iii) explain the debtor’s obligations 
to file monthly operating reports and other 
required reports; 
‘‘(iv) attempt to develop an agreed 
scheduling order; and 
‘‘(v) inform the debtor of other obliga-
tions; 
‘‘(B) if determined to be appropriate and 
advisable, visit the appropriate business prem-
ises of the debtor and ascertain the state of the 
debtor’s books and records and verify that the 
debtor has filed its tax returns; and 
‘‘(C) review and monitor diligently the 
debtor’s activities, to identify as promptly as 
possible whether the debtor will be unable to 
confirm a plan; and 
‘‘(8) in any case in which the United States 
trustee finds material grounds for any relief under 
section 1112 of title 11, the United States trustee 
shall apply promptly after making that finding to 
the court for relief.’’.
230
SEC. 440. SCHEDULING CONFERENCES. 
Section 105(d) of title 11, United States Code, is 
amended—
(1) in the matter preceding paragraph (1), by 
striking ‘‘, may’’; and 
(2) by striking paragraph (1) and inserting the 
following: 
‘‘(1) shall hold such status conferences as are 
necessary to further the expeditious and economical 
resolution of the case; and’’.
SEC. 441. SERIAL FILER PROVISIONS. 
Section 362 of title 11, United States Code, as 
amended by sections 106, 305, and 311, is amended—
(1) in subsection (k), as so redesignated by sec-
tion 305—
(A) by striking ‘‘An’’ and inserting ‘‘(1) 
Except as provided in paragraph (2), an’’; and 
(B) by adding at the end the following: 
‘‘(2) If such violation is based on an action taken by 
an entity in the good faith belief that subsection (h) ap-
plies to the debtor, the recovery under paragraph (1) of 
this subsection against such entity shall be limited to ac-
tual damages.’’; and 
(2) by adding at the end the following: 
‘‘(n)(1) Except as provided in paragraph (2), sub-
section (a) does not apply in a case in which the debtor—
231
‘‘(A) is a debtor in a small business case pend-
ing at the time the petition is filed; 
‘‘(B) was a debtor in a small business case that 
was dismissed for any reason by an order that be-
came final in the 2-year period ending on the date 
of the order for relief entered with respect to the pe-
tition; 
‘‘(C) was a debtor in a small business case in 
which a plan was confirmed in the 2-year period 
ending on the date of the order for relief entered 
with respect to the petition; or 
‘‘(D) is an entity that has acquired substan-
tially all of the assets or business of a small business 
debtor described in subparagraph (A), (B), or (C), 
unless such entity establishes by a preponderance of 
the evidence that such entity acquired substantially 
all of the assets or business of such small business 
debtor in good faith and not for the purpose of evad-
ing this paragraph. 
‘‘(2) Paragraph (1) does not apply—
‘‘(A) to an involuntary case involving no collu-
sion by the debtor with creditors; or 
‘‘(B) to the filing of a petition if—
‘‘(i) the debtor proves by a preponderance 
of the evidence that the filing of that petition
273
tion 1308 of title 11, United States Code, shall be 
filed until such return has been filed as required. 
SEC. 717. STANDARDS FOR TAX DISCLOSURE. 
Section 1125(a)(1) of title 11, United States Code, 
is amended—
(1) by inserting ‘‘including a discussion of the 
potential material Federal tax consequences of the 
plan to the debtor, any successor to the debtor, and 
a hypothetical investor typical of the holders of 
claims or interests in the case,’’ after ‘‘records’’; and 
(2) by striking ‘‘a hypothetical reasonable inves-
tor typical of holders of claims or interests’’ and in-
serting ‘‘such a hypothetical investor’’. 
SEC. 718. SETOFF OF TAX REFUNDS. 
Section 362(b) of title 11, United States Code, as 
amended by sections 224, 303, 311, and 401, is amended 
by inserting after paragraph (25) the following: 
‘‘(26) under subsection (a), of the setoff under 
applicable nonbankruptcy law of an income tax re-
fund, by a governmental unit, with respect to a tax-
able period that ended before the order for relief 
against an income tax liability for a taxable period 
that also ended before the order for relief, except 
that in any case in which the setoff of an income tax 
refund is not permitted under applicable nonbank-