166
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);’’.
(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.’’.
167
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:
‘‘(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
168
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
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
169
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
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) (including a monetary penalty imposed under sec-
tion 362(k)) 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.’’.
170
(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—
‘‘(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 a bankruptcy
petition preparer signing the petition
under section 110(b)(1), indicating
that such attorney or the bankruptcy
petition preparer delivered to the
debtor the notice required by section
342(b); or
171
‘‘(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 date of the filing of the
petition, by the debtor from any employer
of the debtor;
‘‘(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.
172
‘‘(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-
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
173
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 the plan—
‘‘(A) at a reasonable cost; and
‘‘(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-
174
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—
‘‘(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 the 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—
175
‘‘(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
‘‘(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 section 315(c) of the
Bankruptcy Abuse Prevention and Consumer Protection
Act of 2003.
‘‘(h) 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.’’.
176
(c)(1) Not later than 180 days after the date of the
enactment of this Act, the Director of the Administrative
Office of the United States Courts shall establish proce-
dures for safeguarding the confidentiality of any tax infor-
mation required to be provided under this section.
(2) The procedures under paragraph (1) shall include
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 this Act, the Director of the Administrative Office
of the United States Courts shall prepare and submit to
the President pro tempore of the Senate and the Speaker
of the House of Representatives a report that—
(A) assesses the effectiveness of the procedures
established under paragraph (1); and
(B) if appropriate, includes proposed legislation
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.
177
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:
‘‘(i)(1) Subject to paragraphs (2) and (4) and not-
withstanding section 707(a), if an individual debtor in a
voluntary case under chapter 7 or 13 fails to file all of
the information required under subsection (a)(1) within
45 days after the date of the filing of the petition, the
case shall be automatically dismissed effective on the 46th
day after the date of 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 date of the filing
of the petition 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 subsection
(a)(1) if the court finds justification for extending the pe-
riod for the filing.
‘‘(4) Notwithstanding any other provision of this sub-
section, on the motion of the trustee filed before the expi-
178
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
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.’’.
179
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:
‘‘(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—
180
‘‘(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 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
181
‘‘(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—
‘‘(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 indi-
vidual 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
182
(4) in section 1329(c), by striking ‘‘three
years’’ and inserting ‘‘the applicable commitment pe-
riod under section 1325(b)(1)(B)’’.
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:
183
‘‘(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
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) such 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 in which the debtor is an individual,
property of the estate includes, in addition to the property
specified in section 541—
184
‘‘(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-
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:
185
‘‘(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
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-
186
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,
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;
187
‘‘(B) at any time after the confirmation of the
plan, and after notice and a hearing, the court may
grant a discharge to the debtor who has not com-
pleted payments under the plan if—
‘‘(i) the value, as of the effective date of
the plan, of property actually distributed under
the plan on account of each allowed unsecured
claim is not less than the amount that would
have been paid on such claim if the estate of
the debtor had been liquidated under chapter 7
on such date; and
‘‘(ii) modification of the plan under section
1127 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;
188
‘‘(2) extend or reduce the time period for such
payments; or
‘‘(3) alter the amount of the distribution to a
creditor whose claim is provided for by the plan to
the extent necessary to take account of any payment
of such claim made other than under the plan.
‘‘(f)(1) Sections 1121 through 1128 and the require-
ments of section 1129 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, as a result of elect-
ing under subsection (b)(3)(A) to exempt property under
State or local law, a debtor may not exempt any amount
of interest that was acquired by the debtor during the
1215-day period preceding the date of the filing of the
petition that exceeds in the aggregate $125,000 in value
in—
189
‘‘(A) real or personal property that the debtor
or a dependent of the debtor uses as a residence;
‘‘(B) a cooperative that owns property that the
debtor or a dependent of the debtor uses as a resi-
dence;
‘‘(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 such
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), (C), and (D)
190
of subsection (p)(1) 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-
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; or
‘‘(iv) any criminal act, intentional tort, or
willful or reckless misconduct that caused seri-
191
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-
graphs (A), (B), (C), and (D) of subsection (p)(1) is rea-
sonably 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 after para-
graph (6), as added by section 225(a)(1)(C), the following:
‘‘(7) any amount—
‘‘(A) withheld by an employer from the
wages 
of 
employees 
for 
payment 
as
contributions—
‘‘(i) to—
‘‘(I) an employee benefit plan
that is subject to title I of the Em-
ployee Retirement Income Security
192
Act of 1974 or under an employee
benefit plan which is a governmental
plan under section 414(d) of the In-
ternal Revenue Code of 1986;
‘‘(II) a deferred compensation
plan under section 457 of the Internal
Revenue Code of 1986; or
‘‘(III) a tax-deferred annuity
under section 403(b) of the Internal
Revenue Code of 1986;
except that such amount under this sub-
paragraph shall not constitute disposable
income as defined in section 1325(b)(2); or
‘‘(ii) to a health insurance plan regu-
lated by State law whether or not subject
to such title; or
‘‘(B) received by an employer from employ-
ees for payment as contributions—
‘‘(i) to—
‘‘(I) an employee benefit plan
that is subject to title I of the Em-
ployee Retirement Income Security
Act of 1974 or under an employee
benefit plan which is a governmental
193
plan under section 414(d) of the In-
ternal Revenue Code of 1986;
‘‘(II) a deferred compensation
plan under section 457 of the Internal
Revenue Code of 1986; or
‘‘(III) a tax-deferred annuity
under section 403(b) of the Internal
Revenue Code of 1986;
except that such amount under this sub-
paragraph shall not constitute disposable
income, as defined in section 1325(b)(2);
or
‘‘(ii) to a health insurance plan regu-
lated 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:
194
‘‘(e) The district court in which a case under title
11 is commenced or is pending shall have exclusive
jurisdiction—
‘‘(1) of all the property, wherever located, of the
debtor as of the commencement of such case, and of
property of the estate; and
‘‘(2) over all claims or causes of action that in-
volve construction of section 327 of title 11, United
States Code, or rules relating to disclosure require-
ments under section 327.’’.
(b) APPLICABILITY.—This section shall only apply to
cases filed after the date of enactment of this Act.
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:
195
‘‘(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
by striking ‘‘pursuant to 28 U.S.C. section 1930(b)’’ and
all that follows through ‘‘28 U.S.C. section 1931’’ and in-
serting ‘‘under section 1930(b) of title 28, United States
Code, and 31.25 percent of the fees collected under section
1930(a)(1)(A) of that title, 30.00 percent of the fees col-
lected under section 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:
196
‘‘(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—
(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 the filing of the petition without deduction for costs
of sale or marketing. With respect to property acquired
for personal, 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.’’.
197
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
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
198
(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
(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
amended—
(1) in subparagraph (A), by inserting ‘‘or of a
kind that section 365(b)(2) expressly does not re-
quire to be cured’’ before the semicolon at the end;
(2) in subparagraph (C), by striking ‘‘and’’ at
the end;
199
(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
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, and 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