commenced by the debtor under any such chapter shall 
not be presumed to be filed not in good faith. 
‘‘(j) On request of a party in interest, the court shall 
issue an order under subsection (c) confirming that the 
automatic stay has been terminated.’’. 
SEC. 107. SCHEDULES OF REASONABLE AND NECESSARY 
EXPENSES. 
For purposes of section 707(b) of title 11, United 
States Code, as amended by this Act, the Director of the 
Executive Office for United States Trustees shall, not 
later than 180 days after the date of enactment of this 
Act, issue schedules of reasonable and necessary adminis-
trative expenses of administering a chapter 13 plan for 
each judicial district of the United States. 
TITLE II—ENHANCED 
CONSUMER PROTECTION 
Subtitle A—Penalties for Abusive 
Creditor Practices 
SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLU-
TION. 
(a) REDUCTION OF CLAIM.—Section 502 of title 11, 
United States Code, is amended by adding at the end the 
following: 
‘‘(k)(1) The court, on the motion of the debtor and 
after a hearing, may reduce a claim filed under this sec-
tion based in whole on an unsecured consumer debt by 
not more than 20 percent of the claim, if—
‘‘(A) the claim was filed by a creditor who un-
reasonably refused to negotiate a reasonable alter-
native repayment schedule proposed by an approved 
credit counseling agency described in section 111 
acting on behalf of the debtor; 
‘‘(B) the offer of the debtor under subpara-
graph (A)—
‘‘(i) was made at least 60 days before the 
filing of the petition; and 
‘‘(ii) provided for payment of at least 60 
percent of the amount of the debt over a period 
not to exceed the repayment period of the loan, 
or a reasonable extension thereof; and 
‘‘(C) no part of the debt under the alternative 
repayment schedule is nondischargeable. 
‘‘(2) The debtor shall have the burden of proving, by 
clear and convincing evidence, that—
‘‘(A) the creditor unreasonably refused to con-
sider the debtor’s proposal; and 
‘‘(B) the proposed alternative repayment sched-
ule was made prior to expiration of the 60-day pe-
riod specified in paragraph (1)(B)(i).’’.
(b) LIMITATION ON AVOIDABILITY.—Section 547 of 
title 11, United States Code, is amended by adding at the 
end the following: 
‘‘(h) The trustee may not avoid a transfer if such 
transfer was made as a part of an alternative repayment 
plan between the debtor and any creditor of the debtor 
created by an approved credit counseling agency.’’. 
SEC. 202. EFFECT OF DISCHARGE. 
Section 524 of title 11, United States Code, is 
amended by adding at the end the following: 
‘‘(i) The willful failure of a creditor to credit pay-
ments received under a plan confirmed under this title, 
unless the order confirming the plan is revoked, the plan 
is in default, or the creditor has not received payments 
required to be made under the plan in the manner re-
quired by the plan (including crediting the amounts re-
quired under the plan), shall constitute a violation of an 
injunction under subsection (a)(2) if the act of the creditor 
to collect and failure to credit payments in the manner 
required by the plan caused material injury to the debtor. 
‘‘(j) Subsection (a)(2) does not operate as an injunc-
tion against an act by a creditor that is the holder of a 
secured claim, if—
‘‘(1) such creditor retains a security interest in 
real property that is the principal residence of the 
debtor; 
‘‘(2) such act is in the ordinary course of busi-
ness between the creditor and the debtor; and 
‘‘(3) such act is limited to seeking or obtaining 
periodic payments associated with a valid security 
interest in lieu of pursuit of in rem relief to enforce 
the lien.’’. 
SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION 
PRACTICES. 
(a) IN GENERAL.—Section 524 of title 11, United 
States Code, as amended section 202, is amended—
(1) in subsection (c), by striking paragraph (2) 
and inserting the following: 
‘‘(2) the debtor received the disclosures de-
scribed in subsection (k) at or before the time at 
which the debtor signed the agreement;’’; and 
(2) by adding at the end the following: 
‘‘(k)(1) The disclosures required under subsection 
(c)(2) shall consist of the disclosure statement described 
in paragraph (3), completed as required in that para-
graph, together with the agreement, statement, declara-
tion, motion and order described, respectively, in para-
graphs (4) through (8), and shall be the only disclosures 
required in connection with the reaffirmation. 
‘‘(2) Disclosures made under paragraph (1) shall be 
made clearly and conspicuously and in writing. The terms 
‘Amount Reaffirmed’ and ‘Annual Percentage Rate’ shall 
be disclosed more conspicuously than other terms, data or 
information provided in connection with this disclosure, 
except that the phrases ‘Before agreeing to reaffirm a 
debt, review these important disclosures’ and ‘Summary 
of Reaffirmation Agreement’ may be equally conspicuous. 
Disclosures may be made in a different order and may 
use terminology different from that set forth in para-
graphs (2) through (8), except that the terms ‘Amount 
Reaffirmed’ and ‘Annual Percentage Rate’ must be used 
where indicated. 
‘‘(3) The disclosure statement required under this 
paragraph shall consist of the following: 
‘‘(A) The statement: ‘Part A: Before agreeing 
to reaffirm a debt, review these important disclo-
sures:’; 
‘‘(B) Under the heading ‘Summary of Reaffir-
mation Agreement’, the statement: ‘This Summary 
is made pursuant to the requirements of the Bank-
ruptcy Code’;
‘‘(C) The ‘Amount Reaffirmed’, using that 
term, which shall be—
‘‘(i) the total amount which the debtor 
agrees to reaffirm, and 
‘‘(ii) the total of any other fees or cost ac-
crued as of the date of the disclosure statement. 
‘‘(D) In conjunction with the disclosure of the 
‘Amount Reaffirmed’, the statements—
‘‘(i) ‘The amount of debt you have agreed 
to reaffirm’; and 
‘‘(ii) ‘Your credit agreement may obligate 
you to pay additional amounts which may come 
due after the date of this disclosure. Consult 
your credit agreement.’. 
‘‘(E) The ‘Annual Percentage Rate’, using that 
term, which shall be disclosed as—
‘‘(i) if, at the time the petition is filed, the 
debt is an extension of credit under an open 
end credit plan, as the terms ‘credit’ and ‘open 
end credit plan’ are defined in section 103 of 
the Truth in Lending Act, then—
‘‘(I) the annual percentage rate deter-
mined under paragraphs (5) and (6) of 
section 127(b) of the Truth in Lending 
Act, as applicable, as disclosed to the debt-
or in the most recent periodic statement 
prior to the agreement or, if no such peri-
odic statement has been given to the debt-
or during the prior 6 months, the annual 
percentage rate as it would have been so 
disclosed at the time the disclosure state-
ment is given to the debtor, or to the ex-
tent this annual percentage rate is not 
readily available or not applicable, then 
‘‘(II) the simple interest rate applica-
ble to the amount reaffirmed as of the date 
the disclosure statement is given to the 
debtor, or if different simple interest rates 
apply to different balances, the simple in-
terest rate applicable to each such balance, 
identifying the amount of each such bal-
ance included in the amount reaffirmed, or 
‘‘(III) if the entity making the disclo-
sure elects, to disclose the annual percent-
age rate under subclause (I) and the sim-
ple interest rate under subclause (II); 
‘‘(ii) if, at the time the petition is filed, the 
debt is an extension of credit other than under 
an open end credit plan, as the terms ‘credit’
and ‘open end credit plan’ are defined in section 
103 of the Truth in Lending Act, then—
‘‘(I) the annual percentage rate under 
section 128(a)(4) of the Truth in Lending 
Act, as disclosed to the debtor in the most 
recent disclosure statement given to the 
debtor prior to the reaffirmation agree-
ment with respect to the debt, or, if no 
such disclosure statement was given to the 
debtor, the annual percentage rate as it 
would have been so disclosed at the time 
the disclosure statement is given to the 
debtor, or to the extent this annual per-
centage rate is not readily available or not 
applicable, then 
‘‘(II) the simple interest rate applica-
ble to the amount reaffirmed as of the date 
the disclosure statement is given to the 
debtor, or if different simple interest rates 
apply to different balances, the simple in-
terest rate applicable to each such balance, 
identifying the amount of such balance in-
cluded in the amount reaffirmed, or 
‘‘(III) if the entity making the disclo-
sure elects, to disclose the annual percent-
age rate under (I) and the simple interest 
rate under (II). 
‘‘(F) If the underlying debt transaction was dis-
closed as a variable rate transaction on the most re-
cent disclosure given under the Truth in Lending 
Act, by stating ‘The interest rate on your loan may 
be a variable interest rate which changes from time 
to time, so that the annual percentage rate disclosed 
here may be higher or lower.’. 
‘‘(G) If the debt is secured by a security inter-
est which has not been waived in whole or in part 
or determined to be void by a final order of the 
court at the time of the disclosure, by disclosing that 
a security interest or lien in goods or property is as-
serted over some or all of the obligations the debtor 
is reaffirming and listing the items and their origi-
nal purchase price that are subject to the asserted 
security interest, or if not a purchase-money security 
interest then listing by items or types and the origi-
nal amount of the loan. 
‘‘(H) At the election of the creditor, a state-
ment of the repayment schedule using 1 or a com-
bination of the following—
‘‘(i) by making the statement: ‘Your first 
payment in the amount of $lll is due on
lll but the future payment amount may be 
different. Consult your reaffirmation or credit 
agreement, as applicable.’, and stating the 
amount of the first payment and the due date 
of that payment in the places provided; 
‘‘(ii) by making the statement: ‘Your pay-
ment schedule will be:’, and describing the re-
payment schedule with the number, amount and 
due dates or period of payments scheduled to 
repay the obligations reaffirmed to the extent 
then known by the disclosing party; or 
‘‘(iii) by describing the debtor’s repayment 
obligations with reasonable specificity to the ex-
tent then known by the disclosing party. 
‘‘(I) The following statement: ‘Note: When this 
disclosure refers to what a creditor ‘‘may’’ do, it 
does not use the word ‘‘may’’ to give the creditor 
specific permission. The word ‘‘may’’ is used to tell 
you what might occur if the law permits the creditor 
to take the action. If you have questions about your 
reaffirmation or what the law requires, talk to the 
attorney who helped you negotiate this agreement. If 
you don’t have an attorney helping you, the judge 
will explain the effect of your reaffirmation when the 
reaffirmation hearing is held.’.
‘‘(J)(i) The following additional statements: 
‘‘ ‘Reaffirming a debt is a serious financial decision. 
The law requires you to take certain steps to make sure 
the decision is in your best interest. If these steps are not 
completed, the reaffirmation agreement is not effective, 
even though you have signed it. 
‘‘ ‘1. Read the disclosures in this Part A care-
fully. Consider the decision to reaffirm carefully. 
Then, if you want to reaffirm, sign the reaffirmation 
agreement in Part B (or you may use a separate 
agreement you and your creditor agree on). 
‘‘ ‘2. Complete and sign Part D and be sure you 
can afford to make the payments you are agreeing 
to make and have received a copy of the disclosure 
statement and a completed and signed reaffirmation 
agreement. 
‘‘ ‘3. If you were represented by an attorney 
during the negotiation of the reaffirmation agree-
ment, the attorney must have signed the certification 
in Part C. 
‘‘ ‘4. If you were not represented by an attorney 
during the negotiation of the reaffirmation agree-
ment, you must have completed and signed Part E. 
‘‘ ‘5. The original of this disclosure must be 
filed with the court by you or your creditor. If a sep-
arate reaffirmation agreement (other than the one in 
Part B) has been signed, it must be attached. 
‘‘ ‘6. If you were represented by an attorney 
during the negotiation of the reaffirmation agree-
ment, your reaffirmation agreement becomes effec-
tive upon filing with the court unless the reaffirma-
tion is presumed to be an undue hardship as ex-
plained in Part D. 
‘‘ ‘7. If you were not represented by an attorney 
during the negotiation of the reaffirmation agree-
ment, it will not be effective unless the court ap-
proves it. The court will notify you of the hearing on 
your reaffirmation agreement. You must attend this 
hearing in bankruptcy court where the judge will re-
view your agreement. The bankruptcy court must 
approve the agreement as consistent with your best 
interests, except that no court approval is required 
if the agreement is for a consumer debt secured by 
a mortgage, deed of trust, security deed or other lien 
on your real property, like your home. 
‘‘ ‘Your right to rescind a reaffirmation. You may re-
scind (cancel) your reaffirmation at any time before the 
bankruptcy court enters a discharge order or within 60 
days after the agreement is filed with the court, whichever
is longer. To rescind or cancel, you must notify the cred-
itor that the agreement is canceled. 
‘‘ ‘What are your obligations if you reaffirm the debt? 
A reaffirmed debt remains your personal legal obligation. 
It is not discharged in your bankruptcy. That means that 
if you default on your reaffirmed debt after your bank-
ruptcy is over, your creditor may be able to take your 
property or your wages. Otherwise, your obligations will 
be determined by the reaffirmation agreement which may 
have changed the terms of the original agreement. For ex-
ample, if you are reaffirming an open end credit agree-
ment, the creditor may be permitted by that agreement 
or applicable law to change the terms of the agreement 
in the future under certain conditions. 
‘‘ ‘Are you required to enter into a reaffirmation 
agreement by any law? No, you are not required to reaf-
firm a debt by any law. Only agree to reaffirm a debt if 
it is in your best interest. Be sure you can afford the pay-
ments you agree to make. 
‘‘ ‘What if your creditor has a security interest or 
lien? Your bankruptcy discharge does not eliminate any 
lien on your property. A ‘‘lien’’ is often referred to as a 
security interest, deed of trust, mortgage or security deed. 
Even if you do not reaffirm and your personal liability 
on the debt is discharged, because of the lien your creditor
may still have the right to take the security property if 
you do not pay the debt or default on it. If the lien is 
on an item of personal property that is exempt under your 
State’s law or that the trustee has abandoned, you may 
be able to redeem the item rather than reaffirm the debt. 
To redeem, you make a single payment to the creditor 
equal to the current value of the security property, as 
agreed by the parties or determined by the court.’. 
‘‘(ii) In the case of a reaffirmation under sub-
section (m)(2), numbered paragraph 6 in the disclo-
sures required by clause (i) of this subparagraph 
shall read as follows: 
‘‘ ‘6. If you were represented by an attorney 
during the negotiation of the reaffirmation agree-
ment, your reaffirmation agreement becomes effec-
tive upon filing with the court.’. 
‘‘(4) The form of reaffirmation agreement required 
under this paragraph shall consist of the following: 
‘‘ ‘Part B: Reaffirmation Agreement. I/we agree to re-
affirm the obligations arising under the credit agreement 
described below. 
‘‘ ‘Brief description of credit agreement: 
‘‘ ‘Description of any changes to the credit agreement 
made as part of this reaffirmation agreement: 
‘‘ ‘Signature:
Date:
‘‘ ‘Borrower: 
‘‘ ‘Co-borrower, if also reaffirming: 
‘‘ ‘Accepted by creditor: 
‘‘ ‘Date of creditor acceptance:’. 
‘‘(5)(A) The declaration shall consist of the following: 
‘‘ ‘Part C: Certification by Debtor’s Attorney (If 
Any). 
‘‘ ‘I hereby certify that (1) this agreement represents 
a fully informed and voluntary agreement by the debtor(s); 
(2) this agreement does not impose an undue hardship on 
the debtor or any dependent of the debtor; and (3) I have 
fully advised the debtor of the legal effect and con-
sequences of this agreement and any default under this 
agreement. 
‘‘ ‘Signature of Debtor’s Attorney:
Date:’. 
‘‘(B) In the case of reaffirmations in which a pre-
sumption of undue hardship has been established, the cer-
tification shall state that in the opinion of the attorney, 
the debtor is able to make the payment. 
‘‘(C) In the case of a reaffirmation agreement under 
subsection (m)(2), subparagraph (B) is not applicable. 
‘‘(6)(A) The statement in support of reaffirmation 
agreement, which the debtor shall sign and date prior to 
filing with the court, shall consist of the following:
‘‘ ‘Part D: Debtor’s Statement in Support of Reaffir-
mation Agreement. 
‘‘ ‘1. I believe this agreement will not impose an 
undue hardship on my dependents or me. I can afford to 
make the payments on the reaffirmed debt because my 
monthly income (take home pay plus any other income re-
ceived) is $lll, and my actual current monthly ex-
penses including monthly payments on post-bankruptcy 
debt and other reaffirmation agreements total $lll, 
leaving $lll to make the required payments on this 
reaffirmed debt. I understand that if my income less my 
monthly expenses does not leave enough to make the pay-
ments, this reaffirmation agreement is presumed to be an 
undue hardship on me and must be reviewed by the court. 
However, this presumption may be overcome if I explain 
to the satisfaction of the court how I can afford to make 
the payments here: lll. 
‘‘ ‘2. I received a copy of the Reaffirmation Disclosure 
Statement in Part A and a completed and signed reaffir-
mation agreement.’. 
‘‘(B) Where the debtor is represented by an attorney 
and is reaffirming a debt owed to a creditor defined in 
section 19(b)(1)(A)(iv) of the Federal Reserve Act, the 
statement of support of the reaffirmation agreement,
which the debtor shall sign and date prior to filing with 
the court, shall consist of the following: 
‘‘ ‘I believe this agreement is in my financial interest. 
I can afford to make the payments on the reaffirmed debt. 
I received a copy of the Reaffirmation Disclosure State-
ment in Part A and a completed and signed reaffirmation 
agreement.’. 
‘‘(7) The motion, which may be used if approval of 
the agreement by the court is required in order for it to 
be effective and shall be signed and dated by the moving 
party, shall consist of the following: 
‘‘ ‘Part E: Motion for Court Approval (To be com-
pleted only where debtor is not represented by an attor-
ney.). I (we), the debtor, affirm the following to be true 
and correct: 
‘‘ ‘I am not represented by an attorney in connection 
with this reaffirmation agreement. 
‘‘ ‘I believe this agreement is in my best interest 
based on the income and expenses I have disclosed in my 
Statement in Support of this reaffirmation agreement 
above, and because (provide any additional relevant rea-
sons the court should consider): 
‘‘ ‘Therefore, I ask the court for an order approving 
this reaffirmation agreement.’.
‘‘(8) The court order, which may be used to approve 
a reaffirmation, shall consist of the following: 
‘‘ ‘Court Order: The court grants the debtor’s motion 
and approves the reaffirmation agreement described 
above.’.
‘‘(l) Notwithstanding any other provision of this title 
the following shall apply: 
‘‘(1) A creditor may accept payments from a 
debtor before and after the filing of a reaffirmation 
agreement with the court. 
‘‘(2) A creditor may accept payments from a 
debtor under a reaffirmation agreement which the 
creditor believes in good faith to be effective. 
‘‘(3) The requirements of subsections (c)(2) and 
(k) shall be satisfied if disclosures required under 
those subsections are given in good faith. 
‘‘(m)(1) Until 60 days after a reaffirmation agree-
ment is filed with the court (or such additional period as 
the court, after notice and a hearing and for cause, orders 
before the expiration of such period), it shall be presumed 
that the reaffirmation agreement is an undue hardship on 
the debtor if the debtor’s monthly income less the debtor’s 
monthly expenses as shown on the debtor’s completed and 
signed statement in support of the reaffirmation agree-
ment required under subsection (k)(6)(A) is less than the
scheduled payments on the reaffirmed debt. This pre-
sumption shall be reviewed by the court. The presumption 
may be rebutted in writing by the debtor if the statement 
includes an explanation which identifies additional sources 
of funds to make the payments as agreed upon under the 
terms of the reaffirmation agreement. If the presumption 
is not rebutted to the satisfaction of the court, the court 
may disapprove the agreement. No agreement shall be dis-
approved without notice and a hearing to the debtor and 
creditor and such hearing shall be concluded before the 
entry of the debtor’s discharge. 
‘‘(2) This subsection does not apply to reaffirmation 
agreements where the creditor is a credit union, as defined 
in section 19(b)(1)(A)(iv) of the Federal Reserve Act.’’. 
(b) LAW ENFORCEMENT.—
(1) IN GENERAL.—Chapter 9 of title 18, United 
States Code, is amended by adding at the end the 
following: 
‘‘§ 158. Designation of United States attorneys and 
agents of the Federal Bureau of Inves-
tigation to address abusive reaffirma-
tions of debt and materially fraudulent 
statements in bankruptcy schedules 
‘‘(a) IN GENERAL.—The Attorney General of the 
United States shall designate the individuals described in
subsection (b) to have primary responsibility in carrying 
out enforcement activities in addressing violations of sec-
tion 152 or 157 relating to abusive reaffirmations of debt. 
In addition to addressing the violations referred to in the 
preceding sentence, the individuals described under sub-
section (b) shall address violations of section 152 or 157 
relating to materially fraudulent statements in bankruptcy 
schedules that are intentionally false or intentionally mis-
leading. 
‘‘(b) UNITED STATES DISTRICT ATTORNEYS
AND 
AGENTS
OF
THE FEDERAL BUREAU
OF INVESTIGA-
TION.—The individuals referred to in subsection (a) are—
‘‘(1) a United States attorney for each judicial 
district of the United States; and 
‘‘(2) an agent of the Federal Bureau of Inves-
tigation (within the meaning of section 3107) for 
each field office of the Federal Bureau of Investiga-
tion. 
‘‘(c) BANKRUPTCY INVESTIGATIONS.—Each United 
States attorney designated under this section shall, in ad-
dition to any other responsibilities, have primary responsi-
bility for carrying out the duties of a United States attor-
ney under section 3057. 
‘‘(d) BANKRUPTCY PROCEDURES.—The bankruptcy 
courts shall establish procedures for referring any case
which may contain a materially fraudulent statement in 
a bankruptcy schedule to the individuals designated under 
this section.’’. 
(2) CLERICAL AMENDMENT.—The analysis for 
chapter 9 of title 18, United States Code, is amend-
ed by adding at the end the following:
‘‘158. Designation of United States attorneys and agents of the Federal Bureau 
of Investigation to address abusive reaffirmations of debt and 
materially fraudulent statements in bankruptcy schedules.’’.
SEC. 204. PRESERVATION OF CLAIMS AND DEFENSES UPON 
SALE OF PREDATORY LOANS. 
Section 363 of title 11, United States Code, is 
amended—
(1) by redesignating subsection (o) as sub-
section (p), and 
(2) by inserting after subsection (n) the fol-
lowing: 
‘‘(o) Notwithstanding subsection (f), if a person pur-
chases any interest in a consumer credit transaction that 
is subject to the Truth in Lending Act or any interest in 
a consumer credit contract (as defined in section 433.1 
of title 16 of the Code of Federal Regulations (January 
1, 2001), as amended from time to time), and if such in-
terest is purchased through a sale under this section, then 
such person shall remain subject to all claims and defenses 
that are related to such consumer credit transaction or 
such consumer credit contract, to the same extent as such
person would be subject to such claims and defenses of 
the consumer had such interest been purchased at a sale 
not under this section.’’.
SEC. 205. GAO STUDY AND REPORT ON REAFFIRMATION 
PROCESS. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of the reaffirmation process 
that occurs under title 11 of the United States Code, to 
determine the overall treatment of consumers within the 
context of such process, and shall include in such study 
consideration of—
(1) the policies and activities of creditors with 
respect to reaffirmation; and 
(2) whether consumers are fully, fairly, and 
consistently informed of their rights pursuant to 
such title. 
(b) REPORT TO THE CONGRESS.—Not later than 18 
months after the date of enactment of this Act, the Comp-
troller General shall submit to the President pro tempore 
of the Senate and the Speaker of the House of Represent-
atives a report on the results of the study conducted under 
subsection (a), together with recommendations for legisla-
tion (if any) to address any abusive or coercive tactics 
found in connection with the reaffirmation process that 
occurs under title 11 of the United States Code.
Subtitle B—Priority Child Support 
SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGA-
TION. 
Section 101 of title 11, United States Code, is 
amended—
(1) by striking paragraph (12A); and 
(2) by inserting after paragraph (14) the fol-
lowing: 
‘‘(14A) ‘domestic support obligation’ means a 
debt that accrues before or after the entry of an 
order for relief under this title, including interest 
that accrues on that debt as provided under applica-
ble nonbankruptcy law notwithstanding any other 
provision of this title, that is—
‘‘(A) owed to or recoverable by—
‘‘(i) a spouse, former spouse, or child 
of the debtor or such child’s parent, legal 
guardian, or responsible relative; or 
‘‘(ii) a governmental unit; 
‘‘(B) in the nature of alimony, mainte-
nance, or support (including assistance provided 
by a governmental unit) of such spouse, former 
spouse, or child of the debtor or such child’s 
parent, without regard to whether such debt is 
expressly so designated;
‘‘(C) established or subject to establish-
ment before or after entry of an order for relief 
under this title, by reason of applicable provi-
sions of—
‘‘(i) a separation agreement, divorce 
decree, or property settlement agreement; 
‘‘(ii) an order of a court of record; or 
‘‘(iii) a determination made in accord-
ance with applicable nonbankruptcy law by 
a governmental unit; and 
‘‘(D) not assigned to a nongovernmental 
entity, unless that obligation is assigned volun-
tarily by the spouse, former spouse, child, or 
parent, legal guardian, or responsible relative of 
the child for the purpose of collecting the 
debt;’’.
SEC. 212. PRIORITIES FOR CLAIMS FOR DOMESTIC SUP-
PORT OBLIGATIONS. 
Section 507(a) of title 11, United States Code, is 
amended—
(1) by striking paragraph (7); 
(2) by redesignating paragraphs (1) through 
(6) as paragraphs (2) through (7), respectively; 
(3) in paragraph (2), as so redesignated, by 
striking ‘‘First’’ and inserting ‘‘Second’’;
(4) in paragraph (3), as so redesignated, by 
striking ‘‘Second’’ and inserting ‘‘Third’’; 
(5) in paragraph (4), as so redesignated—
(A) by striking ‘‘Third’’ and inserting 
‘‘Fourth’’; and 
(B) by striking the semicolon at the end 
and inserting a period; 
(6) in paragraph (5), as so redesignated, by 
striking ‘‘Fourth’’ and inserting ‘‘Fifth’’; 
(7) in paragraph (6), as so redesignated, by 
striking ‘‘Fifth’’ and inserting ‘‘Sixth’’; 
(8) in paragraph (7), as so redesignated, by 
striking ‘‘Sixth’’ and inserting ‘‘Seventh’’; and 
(9) by inserting before paragraph (2), as so re-
designated, the following: 
‘‘(1) First: 
‘‘(A) Allowed unsecured claims for domes-
tic support obligations that, as of the date of 
the filing of the petition, are owed to or recover-
able by a spouse, former spouse, or child of the 
debtor, or the parent, legal guardian, or respon-
sible relative of such child, without regard to 
whether the claim is filed by such person or is 
filed by a governmental unit on behalf of that 
person, on the condition that funds received
allowed under paragraphs (1)(A), (2), and (6) 
of section 503(b) shall be paid before payment 
of claims under subparagraphs (A) and (B), to 
the extent that the trustee administers assets 
that are otherwise available for the payment of 
such claims.’’. 
SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMATION AND 
DISCHARGE IN CASES INVOLVING DOMESTIC 
SUPPORT OBLIGATIONS. 
Title 11, United States Code, is amended—
(1) in section 1129(a), by adding at the end the 
following: 
‘‘(14) If the debtor is required by a judicial or 
administrative order or statute to pay a domestic 
support obligation, the debtor has paid all amounts 
payable under such order or statute for such obliga-
tion that first become payable after the date on 
which the petition is filed.’’; 
(2) in section 1208(c)—
(A) in paragraph (8), by striking ‘‘or’’ at 
the end; 
(B) in paragraph (9), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following:
‘‘(10) failure of the debtor to pay any domestic 
support obligation that first becomes payable after 
the date on which the petition is filed.’’; 
(3) in section 1222(a)—
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) notwithstanding any other provision of this 
section, a plan may provide for less than full pay-
ment of all amounts owed for a claim entitled to pri-
ority under section 507(a)(1)(B) only if the plan 
provides that all of the debtor’s projected disposable 
income for a 5-year period, beginning on the date 
that the first payment is due under the plan, will be 
applied to make payments under the plan.’’; 
(4) in section 1222(b)—
(A) by redesignating paragraph (11) as 
paragraph (12); and 
(B) by inserting after paragraph (10) the 
following: 
‘‘(11) provide for the payment of interest accru-
ing after the date of the filing of the petition on un-
secured claims that are nondischargeable under sec-
tion 1228(a), except that such interest may be paid 
only to the extent that the debtor has disposable in-
come available to pay such interest after making 
provision for full payment of all allowed claims;’’; 
(5) in section 1225(a)—
(A) in paragraph (5), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (6), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(7) if the debtor is required by a judicial or 
administrative order or statute to pay a domestic 
support obligation, the debtor has paid all amounts 
payable under such order for such obligation that 
first become payable after the date on which the pe-
tition is filed.’’; 
(6) in section 1228(a), in the matter preceding 
paragraph (1), by inserting ‘‘, and in the case of a 
debtor who is required by a judicial or administra-
tive order to pay a domestic support obligation, after 
such debtor certifies that all amounts payable under 
such order or statute that are due on or before the 
date of the certification (including amounts due be-
fore the petition was filed, but only to the extent 
provided for by the plan) have been paid’’ after
‘‘completion by the debtor of all payments under the 
plan’’; 
(7) in section 1307(c)—
(A) in paragraph (9), by striking ‘‘or’’ at 
the end; 
(B) in paragraph (10), by striking the pe-
riod at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(11) failure of the debtor to pay any domestic 
support obligation that first becomes payable after 
the date on which the petition is filed.’’; 
(8) in section 1322(a)—
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) notwithstanding any other provision of this 
section, a plan may provide for less than full pay-
ment of all amounts owed for a claim entitled to pri-
ority under section 507(a)(1)(B) only if the plan 
provides that all of the debtor’s projected disposable 
income for a 5-year period beginning on the date 
that the first payment is due under the plan will be 
applied to make payments under the plan.’’;
(9) in section 1322(b)—
(A) in paragraph (9), by striking ‘‘; and’’ 
and inserting a semicolon; 
(B) by redesignating paragraph (10) as 
paragraph (11); and 
(C) inserting after paragraph (9) the fol-
lowing: 
‘‘(10) provide for the payment of interest accru-
ing after the date of the filing of the petition on un-
secured claims that are nondischargeable under sec-
tion 1328(a), except that such interest may be paid 
only to the extent that the debtor has disposable in-
come available to pay such interest after making 
provision for full payment of all allowed claims; 
and’’; 
(10) in section 1325(a), as amended by section 
102, by inserting after paragraph (7) the following: 
‘‘(8) the debtor is required by a judicial or ad-
ministrative order or statute to pay a domestic sup-
port obligation, the debtor has paid all amounts pay-
able under such order or statute for such obligation 
that first becomes payable after the date on which 
the petition is filed; and’’; 
(11) in section 1328(a), in the matter preceding 
paragraph (1), by inserting ‘‘, and in the case of a
debtor who is required by a judicial or administra-
tive order to pay a domestic support obligation, after 
such debtor certifies that all amounts payable under 
such order or statute that are due on or before the 
date of the certification (including amounts due be-
fore the petition was filed, but only to the extent 
provided for by the plan) have been paid’’ after 
‘‘completion by the debtor of all payments under the 
plan’’. 
SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC 
SUPPORT OBLIGATION PROCEEDINGS. 
Section 362(b) of title 11, United States Code, is 
amended by striking paragraph (2) and inserting the fol-
lowing: 
‘‘(2) under subsection (a)—
‘‘(A) of the commencement or continuation 
of a civil action or proceeding—
‘‘(i) for the establishment of paternity; 
‘‘(ii) for the establishment or modi-
fication of an order for domestic support 
obligations; 
‘‘(iii) concerning child custody or visi-
tation; 
‘‘(iv) for the dissolution of a marriage, 
except to the extent that such proceeding
seeks to determine the division of property 
that is property of the estate; or 
‘‘(v) regarding domestic violence; 
‘‘(B) of the collection of a domestic sup-
port obligation from property that is not prop-
erty of the estate; 
‘‘(C) with respect to the withholding of in-
come that is property of the estate or property 
of the debtor for payment of a domestic support 
obligation under a judicial or administrative 
order; 
‘‘(D) of the withholding, suspension, or re-
striction of drivers’ licenses, professional and 
occupational licenses, and recreational licenses 
under State law, as specified in section 
466(a)(16) of the Social Security Act; 
‘‘(E) of the reporting of overdue support 
owed by a parent to any consumer reporting 
agency as specified in section 466(a)(7) of the 
Social Security Act; 
‘‘(F) of the interception of tax refunds, as 
specified in sections 464 and 466(a)(3) of the 
Social Security Act or under an analogous State 
law; or
‘‘(G) of the enforcement of medical obliga-
tions as specified under title IV of the Social 
Security Act;’’. 
SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR 
ALIMONY, MAINTENANCE, AND SUPPORT. 
Section 523 of title 11, United States Code, is 
amended—
(1) in subsection (a)—
(A) by striking paragraph (5) and insert-
ing the following: 
‘‘(5) for a domestic support obligation;’’; and 
(B) by striking paragraph (18); 
(2) in subsection (c), by striking ‘‘(6), or (15)’’ 
each place it appears and inserting ‘‘or (6)’’; and 
(3) in paragraph (15), as added by Public Law 
103–394 (108 Stat. 4133)—
(A) by inserting ‘‘to a spouse, former 
spouse, or child of the debtor and’’ before ‘‘not 
of the kind’’; 
(B) by inserting ‘‘or’’ after ‘‘court of 
record,’’; and 
(C) by striking ‘‘unless—’’ and all that fol-
lows through the end of the paragraph and in-
serting a semicolon.
SEC. 216. CONTINUED LIABILITY OF PROPERTY. 
Section 522 of title 11, United States Code, is 
amended—
(1) in subsection (c), by striking paragraph (1) 
and inserting the following: 
‘‘(1) a debt of a kind specified in paragraph (1) 
or (5) of section 523(a) (in which case, notwith-
standing any provision of applicable nonbankruptcy 
law to the contrary, such property shall be liable for 
a debt of a kind specified in section 523(a)(5));’’; 
(2) in subsection (f)(1)(A), by striking the dash 
and all that follows through the end of the subpara-
graph and inserting ‘‘of a kind that is specified in 
section 523(a)(5); or’’; and 
(3) in subsection (g)(2), by striking ‘‘subsection 
(f)(2)’’ and inserting ‘‘subsection (f)(1)(B)’’. 
SEC. 217. PROTECTION OF DOMESTIC SUPPORT CLAIMS 
AGAINST 
PREFERENTIAL 
TRANSFER 
MO-
TIONS. 
Section 547(c)(7) of title 11, United States Code, is 
amended to read as follows: 
‘‘(7) to the extent such transfer was a bona fide 
payment of a debt for a domestic support obliga-
tion;’’.
SEC. 218. DISPOSABLE INCOME DEFINED. 
Section 1225(b)(2)(A) of title 11, United States 
Code, is amended by inserting ‘‘or for a domestic support 
obligation that first becomes payable after the date on 
which the petition is filed’’ after ‘‘dependent of the debt-
or’’.
SEC. 219. COLLECTION OF CHILD SUPPORT. 
(a) DUTIES OF TRUSTEE UNDER CHAPTER 7.—Sec-
tion 704 of title 11, United States Code, as amended by 
section 102, is amended—
(1) in subsection (a)—
(A) in paragraph (8), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (9), by striking the pe-
riod and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(10) if with respect to the debtor there is a 
claim for a domestic support obligation, provide the 
applicable notice specified in subsection (c); and’’; 
and 
(2) by adding at the end the following: 
‘‘(c)(1) In a case described in subsection (a)(10) to 
which subsection (a)(10) applies, the trustee shall—
‘‘(A)(i) provide written notice to the holder of 
the claim described in subsection (a)(10) of such 
claim and of the right of such holder to use the serv-
ices of the State child support enforcement agency 
established under sections 464 and 466 of the Social 
Security Act for the State in which such holder re-
sides, for assistance in collecting child support dur-
ing and after the case under this title; 
‘‘(ii) include in the notice provided under clause 
(i) the address and telephone number of such State 
child support enforcement agency; and 
‘‘(iii) include in the notice provided under 
clause (i) an explanation of the rights of such holder 
to payment of such claim under this chapter; 
‘‘(B)(i) provide written notice to such State 
child support enforcement agency of such claim; and 
‘‘(ii) include in the notice provided under clause 
(i) the name, address, and telephone number of such 
holder; and 
‘‘(C) at such time as the debtor is granted a 
discharge under section 727, provide written notice 
to such holder and to such State child support en-
forcement agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(iv) the name of each creditor that holds 
a claim that—
‘‘(I) is not discharged under para-
graph (2), (4), or (14A) of section 523(a); 
or 
‘‘(II) was reaffirmed by the debtor 
under section 524 (c). 
‘‘(2)(A) The holder of a claim described in subsection 
(a)(10) or the State child support enforcement agency of 
the State in which such holder resides may request from 
a creditor described in paragraph (1)(C)(iv) the last 
known address of the debtor. 
‘‘(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address 
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable by reason of making such 
disclosure.’’. 
(b) DUTIES OF TRUSTEE UNDER CHAPTER 11.—
Section 1106 of title 11, United States Code, is amend-
ed—
(1) in subsection (a)—
(A) in paragraph (6), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (7), by striking the pe-
riod and inserting ‘‘; and’’; and
to such holder of such claim and to such State child 
support enforcement agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and 
‘‘(iv) the name of each creditor that holds 
a claim that—
‘‘(I) is not discharged under para-
graph (2), (3), or (14A) of section 523(a); 
or 
‘‘(II) was reaffirmed by the debtor 
under section 524(c). 
‘‘(2)(A) The holder of a claim described in subsection 
(a)(8) or the State child enforcement support agency of 
the State in which such holder resides may request from 
a creditor described in paragraph (1)(C)(iv) the last 
known address of the debtor. 
‘‘(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address 
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable by reason of making such 
disclosure.’’.
(c) DUTIES OF TRUSTEE UNDER CHAPTER 12.—
Section 1202 of title 11, United States Code, is amend-
ed—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (5), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(6) if with respect to the debtor there is a 
claim for a domestic support obligation, provide the 
applicable notice specified in subsection (c).’’; and 
(2) by adding at the end the following: 
‘‘(c)(1) In a case described in subsection (b)(6) to 
which subsection (b)(6) applies, the trustee shall—
‘‘(A)(i) provide written notice to the holder of 
the claim described in subsection (b)(6) of such 
claim and of the right of such holder to use the serv-
ices of the State child support enforcement agency 
established under sections 464 and 466 of the Social 
Security Act for the State in which such holder re-
sides, for assistance in collecting child support dur-
ing and after the case under this title; and
‘‘(ii) include in the notice provided under clause 
(i) the address and telephone number of such State 
child support enforcement agency; 
‘‘(B)(i) provide written notice to such State 
child support enforcement agency of such claim; and 
‘‘(ii) include in the notice provided under clause 
(i) the name, address, and telephone number of such 
holder; and 
‘‘(C) at such time as the debtor is granted a 
discharge under section 1228, provide written notice 
to such holder and to such State child support en-
forcement agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and 
‘‘(iv) the name of each creditor that holds 
a claim that—
‘‘(I) is not discharged under para-
graph (2), (4), or (14A) of section 523(a); 
or 
‘‘(II) was reaffirmed by the debtor 
under section 524(c).
‘‘(2)(A) The holder of a claim described in subsection 
(b)(6) or the State child support enforcement agency of 
the State in which such holder resides may request from 
a creditor described in paragraph (1)(C)(iv) the last 
known address of the debtor. 
‘‘(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address 
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable by reason of making that 
disclosure.’’. 
(d) DUTIES OF TRUSTEE UNDER CHAPTER 13.—
Section 1302 of title 11, United States Code, is amend-
ed—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (5), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(6) if with respect to the debtor there is a 
claim for a domestic support obligation, provide the 
applicable notice specified in subsection (d).’’; and 
(2) by adding at the end the following: 
‘‘(d)(1) In a case described in subsection (b)(6) to 
which subsection (b)(6) applies, the trustee shall—
‘‘(A)(i) provide written notice to the holder of 
the claim described in subsection (b)(6) of such 
claim and of the right of such holder to use the serv-
ices of the State child support enforcement agency 
established under sections 464 and 466 of the Social 
Security Act for the State in which such holder re-
sides, for assistance in collecting child support dur-
ing and after the case under this title; and 
‘‘(ii) include in the notice provided under clause 
(i) the address and telephone number of such State 
child support enforcement agency; 
‘‘(B)(i) provide written notice to such State 
child support enforcement agency of such claim; and 
‘‘(ii) include in the notice provided under clause 
(i) the name, address, and telephone number of such 
holder; and 
‘‘(C) at such time as the debtor is granted a 
discharge under section 1328, provide written notice 
to such holder and to such State child support en-
forcement agency of—
‘‘(i) the granting of the discharge; 
‘‘(ii) the last recent known address of the 
debtor; 
‘‘(iii) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(iv) the name of each creditor that holds 
a claim that—
‘‘(I) is not discharged under para-
graph (2) or (4) of section 523(a); or 
‘‘(II) was reaffirmed by the debtor 
under section 524(c). 
‘‘(2)(A) The holder of a claim described in subsection 
(b)(6) or the State child support enforcement agency of 
the State in which such holder resides may request from 
a creditor described in paragraph (1)(C)(iv) the last 
known address of the debtor. 
‘‘(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address 
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable by reason of making that 
disclosure.’’. 
SEC. 
220. 
NONDISCHARGEABILITY 
OF 
CERTAIN 
EDU-
CATIONAL BENEFITS AND LOANS. 
Section 523(a) of title 11, United States Code, is 
amended by striking paragraph (8) and inserting the fol-
lowing: 
‘‘(8) unless excepting such debt from discharge 
under this paragraph would impose an undue hard-
ship on the debtor and the debtor’s dependents, 
for—
‘‘(A)(i) an educational benefit overpayment 
or loan made, insured, or guaranteed by a gov-
ernmental unit, or made under any program 
funded in whole or in part by a governmental 
unit or nonprofit institution; or 
‘‘(ii) an obligation to repay funds received 
as an educational benefit, scholarship, or sti-
pend; or 
‘‘(B) any other educational loan that is a 
qualified education loan, as defined in section 
221(d)(1) of the Internal Revenue Code of 
1986, incurred by a debtor who is an indi-
vidual;’’. 
Subtitle C—Other Consumer 
Protections 
SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANK-
RUPTCY FILINGS. 
Section 110 of title 11, United States Code, is 
amended—
(1) in subsection (a)(1), by striking ‘‘or an em-
ployee of an attorney’’ and inserting ‘‘for the debtor 
or an employee of such attorney under the direct su-
pervision of such attorney’’; 
(2) in subsection (b)—
(A) in paragraph (1), by adding at the end 
the following: ‘‘If a bankruptcy petition pre-
parer is not an individual, then an officer, prin-
cipal, responsible person, or partner of the pre-
parer shall be required to—
‘‘(A) sign the document for filing; and 
‘‘(B) print on the document the name and ad-
dress of that officer, principal, responsible person or 
partner.’’; and 
(B) by striking paragraph (2) and insert-
ing the following: 
‘‘(2)(A) Before preparing any document for filing or 
accepting any fees from a debtor, the bankruptcy petition 
preparer shall provide to the debtor a written notice to 
debtors concerning bankruptcy petition preparers, which 
shall be on an official form issued by the Judicial Con-
ference of the United States. 
‘‘(B) The notice under subparagraph (A)—
‘‘(i) shall inform the debtor in simple language 
that a bankruptcy petition preparer is not an attor-
ney and may not practice law or give legal advice; 
‘‘(ii) may contain a description of examples of 
legal advice that a bankruptcy petition preparer is 
not authorized to give, in addition to any advice that
the preparer may not give by reason of subsection 
(e)(2); and
‘‘(iii) shall—
‘‘(I) be signed by the debtor and, under 
penalty of perjury, by the bankruptcy petition 
preparer; and 
‘‘(II) be filed with any document for fil-
ing.’’; 
(3) in subsection (c)—
(A) in paragraph (2)—
(i) by striking ‘‘(2) For purposes’’ and 
inserting ‘‘(2)(A) Subject to subparagraph 
(B), for purposes’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) If a bankruptcy petition preparer is not an indi-
vidual, the identifying number of the bankruptcy petition 
preparer shall be the Social Security account number of 
the officer, principal, responsible person, or partner of the 
preparer.’’; and 
(B) by striking paragraph (3); 
(4) in subsection (d)—
(A) by striking ‘‘(d)(1)’’ and inserting 
‘‘(d)’’; and 
(B) by striking paragraph (2);
(5) in subsection (e)—
(A) by striking paragraph (2); and 
(B) by adding at the end the following: 
‘‘(2)(A) A bankruptcy petition preparer may not offer 
a potential bankruptcy debtor any legal advice, including 
any legal advice described in subparagraph (B). 
‘‘(B) The legal advice referred to in subparagraph 
(A) includes advising the debtor—
‘‘(i) whether—
‘‘(I) to file a petition under this title; or 
‘‘(II) commencing a case under chapter 7, 
11, 12, or 13 is appropriate; 
‘‘(ii) whether the debtor’s debts will be elimi-
nated or discharged in a case under this title; 
‘‘(iii) whether the debtor will be able to retain 
the debtor’s home, car, or other property after com-
mencing a case under this title; 
‘‘(iv) concerning—
‘‘(I) the tax consequences of a case 
brought under this title; or 
‘‘(II) the dischargeability of tax claims; 
‘‘(v) whether the debtor may or should promise 
to repay debts to a creditor or enter into a reaffir-
mation agreement with a creditor to reaffirm a debt;
‘‘(vi) concerning how to characterize the nature 
of the debtor’s interests in property or the debtor’s 
debts; or 
‘‘(vii) concerning bankruptcy procedures and 
rights.’’; 
(6) in subsection (f)—
(A) by striking ‘‘(f)(1)’’ and inserting 
‘‘(f)’’; and 
(B) by striking paragraph (2); 
(7) in subsection (g)—
(A) by striking ‘‘(g)(1)’’ and inserting 
‘‘(g)’’; and 
(B) by striking paragraph (2); 
(8) in subsection (h)—
(A) 
by 
redesignating 
paragraphs 
(1) 
through (4) as paragraphs (2) through (5), re-
spectively; 
(B) by inserting before paragraph (2), as 
so redesignated, the following: 
‘‘(1) The Supreme Court may promulgate rules under 
section 2075 of title 28, or the Judicial Conference of the 
United States may prescribe guidelines, for setting a max-
imum allowable fee chargeable by a bankruptcy petition 
preparer. A bankruptcy petition preparer shall notify the 
debtor of any such maximum amount before preparing any
document for filing for a debtor or accepting any fee from 
the debtor.’’; 
(C) in paragraph (2), as so redesignated— 
(i) by striking ‘‘Within 10 days after 
the date of filing a petition, a bankruptcy 
petition preparer shall file a’’ and inserting 
‘‘A’’; 
(ii) by inserting ‘‘by the bankruptcy 
petition preparer shall be filed together 
with the petition,’’ after ‘‘perjury’’; and 
(iii) by adding at the end the fol-
lowing: ‘‘If rules or guidelines setting a 
maximum fee for services have been pro-
mulgated or prescribed under paragraph 
(1), the declaration under this paragraph 
shall include a certification that the bank-
ruptcy petition preparer complied with the 
notification requirement under paragraph 
(1).’’; 
(D) by striking paragraph (3), as so redes-
ignated, and inserting the following: 
‘‘(3)(A) The court shall disallow and order the imme-
diate turnover to the bankruptcy trustee any fee referred 
to in paragraph (2) found to be in excess of the value 
of any services—
‘‘(i) rendered by the preparer during the 12-
month period immediately preceding the date of fil-
ing of the petition; or 
‘‘(ii) found to be in violation of any rule or 
guideline promulgated or prescribed under para-
graph (1). 
‘‘(B) All fees charged by a bankruptcy petition pre-
parer may be forfeited in any case in which the bankruptcy 
petition preparer fails to comply with this subsection or 
subsection (b), (c), (d), (e), (f), or (g). 
‘‘(C) An individual may exempt any funds recovered 
under this paragraph under section 522(b).’’; and 
(E) in paragraph (4), as so redesignated, 
by striking ‘‘or the United States trustee’’ and 
inserting ‘‘the United States trustee, the bank-
ruptcy administrator, or the court, on the ini-
tiative of the court,’’; 
(9) in subsection (i)(1), by striking the matter 
preceding subparagraph (A) and inserting the fol-
lowing: 
‘‘(i)(1) If a bankruptcy petition preparer violates this 
section or commits any act that the court finds to be 
fraudulent, unfair, or deceptive, on the motion of the debt-
or, trustee, United States trustee, or bankruptcy adminis-
trator, and after the court holds a hearing with respect
to that violation or act, the court shall order the bank-
ruptcy petition preparer to pay to the debtor—’’; 
(10) in subsection (j)—
(A) in paragraph (2)—
(i) in subparagraph (A)(i)(I), by strik-
ing ‘‘a violation of which subjects a person 
to criminal penalty’’; 
(ii) in subparagraph (B)—
(I) by striking ‘‘or has not paid 
a penalty’’ and inserting ‘‘has not 
paid a penalty’’; and 
(II) by inserting ‘‘or failed to dis-
gorge all fees ordered by the court’’ 
after ‘‘a penalty imposed under this 
section,’’; 
(B) by redesignating paragraph (3) as 
paragraph (4); and 
(C) by inserting after paragraph (2) the 
following: 
‘‘(3) The court, as part of its contempt power, may 
enjoin a bankruptcy petition preparer that has failed to 
comply with a previous order issued under this section. 
The injunction under this paragraph may be issued on the 
motion of the court, the trustee, the United States trustee, 
or the bankruptcy administrator.’’; and
(11) by adding at the end the following: 
‘‘(l)(1) A bankruptcy petition preparer who fails to 
comply with any provision of subsection (b), (c), (d), (e), 
(f), (g), or (h) may be fined not more than $500 for each 
such failure. 
‘‘(2) The court shall triple the amount of a fine as-
sessed under paragraph (1) in any case in which the court 
finds that a bankruptcy petition preparer—
‘‘(A) advised the debtor to exclude assets or in-
come that should have been included on applicable 
schedules; 
‘‘(B) advised the debtor to use a false Social 
Security account number; 
‘‘(C) failed to inform the debtor that the debtor 
was filing for relief under this title; or 
‘‘(D) prepared a document for filing in a man-
ner that failed to disclose the identity of the pre-
parer. 
‘‘(3) The debtor, the trustee, a creditor, the United 
States trustee, or the bankruptcy administrator may file 
a motion for an order imposing a fine on the bankruptcy 
petition preparer for each violation of this section. 
‘‘(4)(A) Fines imposed under this subsection in judi-
cial districts served by United States trustees shall be paid 
to the United States trustee, who shall deposit an amount
equal to such fines in a special account of the United 
States Trustee System Fund referred to in section 
586(e)(2) of title 28. Amounts deposited under this sub-
paragraph shall be available to fund the enforcement of 
this section on a national basis. 
‘‘(B) Fines imposed under this subsection in judicial 
districts served by bankruptcy administrators shall be de-
posited as offsetting receipts to the fund established under 
section 1931 of title 28, and shall remain available until 
expended to reimburse any appropriation for the amount 
paid out of such appropriation for expenses of the oper-
ation and maintenance of the courts of the United 
States.’’. 
SEC. 222. SENSE OF CONGRESS. 
It is the sense of Congress that States should develop 
curricula relating to the subject of personal finance, de-
signed for use in elementary and secondary schools. 
SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED 
STATES CODE. 
Section 507(a) of title 11, United States Code, is 
amended by inserting after paragraph (9) the following: 
‘‘(10) Tenth, allowed claims for death or per-
sonal injuries resulting from the operation of a 
motor vehicle or vessel if such operation was unlaw-
100
ful because the debtor was intoxicated from using al-
cohol, a drug, or another substance.’’. 
SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANK-
RUPTCY. 
(a) IN GENERAL.—Section 522 of title 11, United 
States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (2)—
(i) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; 
and’’; 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) retirement funds to the extent that those 
funds are in a fund or account that is exempt from 
taxation under section 401, 403, 408, 408A, 414, 
457, or 501(a) of the Internal Revenue Code of 
1986.’’; and 
(iv) by striking ‘‘(2)(A) any property’’ 
and inserting: 
‘‘(3) Property listed in this paragraph is—
‘‘(A) any property’’;
101
(B) by striking paragraph (1) and insert-
ing: 
‘‘(2) Property listed in this paragraph is property 
that is specified under subsection (d), unless the State law 
that is applicable to the debtor under paragraph (3)(A) 
specifically does not so authorize.’’; 
(C) by striking ‘‘(b) Notwithstanding’’ and 
inserting ‘‘(b)(1) Notwithstanding’’; 
(D) by striking ‘‘paragraph (2)’’ each place 
it appears and inserting ‘‘paragraph (3)’’; 
(E) by striking ‘‘paragraph (1)’’ each place 
it appears and inserting ‘‘paragraph (2)’’; 
(F) by striking ‘‘Such property is—’’; and 
(G) by adding at the end the following: 
‘‘(4) For purposes of paragraph (3)(C) and sub-
section (d)(12), the following shall apply: 
‘‘(A) If the retirement funds are in a retirement 
fund that has received a favorable determination 
under section 7805 of the Internal Revenue Code of 
1986, and that determination is in effect as of the 
date of the commencement of the case under section 
301, 302, or 303 of this title, those funds shall be 
presumed to be exempt from the estate. 
‘‘(B) If the retirement funds are in a retirement 
fund that has not received a favorable determination
102
under such section 7805, those funds are exempt 
from the estate if the debtor demonstrates that—
‘‘(i) no prior determination to the contrary 
has been made by a court or the Internal Rev-
enue Service; and 
‘‘(ii)(I) the retirement fund is in substan-
tial compliance with the applicable requirements 
of the Internal Revenue Code of 1986; or 
‘‘(II) the retirement fund fails to be in 
substantial compliance with the applicable re-
quirements of the Internal Revenue Code of 
1986 and the debtor is not materially respon-
sible for that failure. 
‘‘(C) A direct transfer of retirement funds from 
1 fund or account that is exempt from taxation 
under section 401, 403, 408, 408A, 414, 457, or 
501(a) of the Internal Revenue Code of 1986, under 
section 401(a)(31) of the Internal Revenue Code of 
1986, or otherwise, shall not cease to qualify for ex-
emption under paragraph (3)(C) or subsection 
(d)(12) by reason of that direct transfer. 
‘‘(D)(i) Any distribution that qualifies as an eli-
gible rollover distribution within the meaning of sec-
tion 402(c) of the Internal Revenue Code of 1986 or 
that is described in clause (ii) shall not cease to
103
qualify for exemption under paragraph (3)(C) or 
subsection (d)(12) by reason of that distribution. 
‘‘(ii) A distribution described in this clause is 
an amount that—
‘‘(I) has been distributed from a fund or 
account that is exempt from taxation under sec-
tion 401, 403, 408, 408A, 414, 457, or 501(a) 
of the Internal Revenue Code of 1986; and 
‘‘(II) to the extent allowed by law, is de-
posited in such a fund or account not later than 
60 days after the distribution of that amount.’’; 
and 
(2) in subsection (d)—
(A) in the matter preceding paragraph (1), 
by striking ‘‘subsection (b)(1)’’ and inserting 
‘‘subsection (b)(2)’’; and 
(B) by adding at the end the following: 
‘‘(12) Retirement funds to the extent that those 
funds are in a fund or account that is exempt from 
taxation under section 401, 403, 408, 408A, 414, 
457, or 501(a) of the Internal Revenue Code of 
1986.’’. 
(b) AUTOMATIC STAY.—Section 362(b) of title 11, 
United States Code, is amended—
118
thereafter during a case under this title is re-
quired to be complete, accurate, and truthful; 
‘‘(B) all assets and all liabilities are re-
quired to be completely and accurately disclosed 
in the documents filed to commence the case, 
and the replacement value of each asset as de-
fined in section 506 of this title must be stated 
in those documents where requested after rea-
sonable inquiry to establish such value; 
‘‘(C) current monthly income, the amounts 
specified in section 707(b)(2), and, in a case 
under chapter 13, disposable income (deter-
mined in accordance with section 707(b)(2), are 
required to be stated after reasonable inquiry; 
and 
‘‘(D) information that an assisted person 
provides during their case may be audited pur-
suant to this title, and that failure to provide 
such information may result in dismissal of the 
case under this title or other sanction including, 
in some instances, criminal sanctions. 
‘‘(b) A debt relief agency providing bankruptcy assist-
ance to an assisted person shall provide each assisted per-
son at the same time as the notices required under sub-
section (a)(1) with the following statement, to the extent
132
‘‘(3) if a single or joint case is filed by or 
against debtor who is an individual in a case under 
chapter 7, 11, or 13, and if a single or joint case 
of the debtor was pending within the preceding 1-
year period but was dismissed, other than a case 
refiled under a chapter other than chapter 7 after 
dismissal under section 707(b)—
‘‘(A) the stay under subsection (a) with re-
spect to any action taken with respect to a debt 
or property securing such debt or with respect 
to any lease shall terminate with respect to the 
debtor on the 30th day after the filing of the 
later case; 
‘‘(B) on the motion of a party in interest 
for continuation of the automatic stay and upon 
notice and a hearing, the court may extend the 
stay in particular cases as to any or all credi-
tors (subject to such conditions or limitations 
as the court may then impose) after notice and 
a hearing completed before the expiration of the 
30-day period only if the party in interest dem-
onstrates that the filing of the later case is in 
good faith as to the creditors to be stayed; and 
‘‘(C) for purposes of subparagraph (B), a 
case is presumptively filed not in good faith