I 
108TH CONGRESS 
1ST SESSION 
H. R. 975
To amend title 11 of the United States Code, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 27, 2003
Mr. SENSENBRENNER (for himself, Mr. BOUCHER, Mr. CANNON, Mr. AN-
DREWS, Mr. BACHUS, Mr. CASTLE, Mr. CHABOT, Mr. COBLE, Mr. 
CRAMER, Mr. CROWLEY, Mr. DOOLEY of California, Mr. DREIER, Mr. 
ENGLISH, Mr. FEENEY, Mr. FLAKE, Mr. FOLEY, Mr. GOODLATTE, Ms. 
HART, Mr. ISSA, Mr. KELLER, Mr. KENNEDY of Minnesota, Mr. KING 
of Iowa, Mr. LUCAS of Kentucky, Mr. MENENDEZ, Mrs. MYRICK, Mr. 
NEY, Mr. OXLEY, Mr. PENCE, Mr. PITTS, Ms. PRYCE of Ohio, Mr. 
ROTHMAN, Mr. ROYCE, Mr. RYUN of Kansas, Mr. SESSIONS, Mr. SMITH 
of Washington, Mr. SMITH of Michigan, Mr. TAUZIN, Mr. TERRY, Mr. 
TIBERI, Mr. TOOMEY, Mr. FROST, Mrs. BIGGERT, Mr. REYNOLDS, Mrs. 
NORTHUP, Mr. LATOURETTE, Mrs. TAUSCHER, Ms. EDDIE BERNICE 
JOHNSON of Texas, Mr. GIBBONS, Mr. BLUNT, Mr. SIMPSON, and Mr. 
KINGSTON) introduced the following bill; which was referred to the Com-
mittee on the Judiciary, and in addition to the Committee on Financial 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend title 11 of the United States Code, and for other 
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CON-
TENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Bankruptcy Abuse Prevention and Consumer Protection 
Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; references; table of contents. 
TITLE I—NEEDS-BASED BANKRUPTCY 
Sec. 101. Conversion. 
Sec. 102. Dismissal or conversion. 
Sec. 103. Sense of Congress and study. 
Sec. 104. Notice of alternatives. 
Sec. 105. Debtor financial management training test program. 
Sec. 106. Credit counseling. 
Sec. 107. Schedules of reasonable and necessary expenses. 
TITLE II—ENHANCED CONSUMER PROTECTION 
Subtitle A—Penalties for Abusive Creditor Practices 
Sec. 201. Promotion of alternative dispute resolution. 
Sec. 202. Effect of discharge. 
Sec. 203. Discouraging abuse of reaffirmation practices. 
Sec. 204. Preservation of claims and defenses upon sale of predatory loans. 
Sec. 205. GAO study and report on reaffirmation process. 
Subtitle B—Priority Child Support 
Sec. 211. Definition of domestic support obligation. 
Sec. 212. Priorities for claims for domestic support obligations. 
Sec. 213. Requirements to obtain confirmation and discharge in cases involving 
domestic support obligations. 
Sec. 214. Exceptions to automatic stay in domestic support obligation pro-
ceedings. 
Sec. 215. Nondischargeability of certain debts for alimony, maintenance, and 
support. 
Sec. 216. Continued liability of property. 
Sec. 217. Protection of domestic support claims against preferential transfer 
motions. 
Sec. 218. Disposable income defined. 
Sec. 219. Collection of child support. 
Sec. 220. Nondischargeability of certain educational benefits and loans. 
Subtitle C—Other Consumer Protections 
Sec. 221. Amendments to discourage abusive bankruptcy filings. 
Sec. 222. Sense of Congress.
Sec. 223. Additional amendments to title 11, United States Code. 
Sec. 224. Protection of retirement savings in bankruptcy. 
Sec. 225. Protection of education savings in bankruptcy. 
Sec. 226. Definitions. 
Sec. 227. Restrictions on debt relief agencies. 
Sec. 228. Disclosures. 
Sec. 229. Requirements for debt relief agencies. 
Sec. 230. GAO study. 
Sec. 231. Protection of personally identifiable information. 
Sec. 232. Consumer privacy ombudsman. 
Sec. 233. Prohibition on disclosure of name of minor children. 
TITLE III—DISCOURAGING BANKRUPTCY ABUSE 
Sec. 301. Reinforcement of the fresh start. 
Sec. 302. Discouraging bad faith repeat filings. 
Sec. 303. Curbing abusive filings. 
Sec. 304. Debtor retention of personal property security. 
Sec. 305. Relief from the automatic stay when the debtor does not complete in-
tended surrender of consumer debt collateral. 
Sec. 306. Giving secured creditors fair treatment in chapter 13. 
Sec. 307. Domiciliary requirements for exemptions. 
Sec. 308. Reduction of homestead exemption for fraud. 
Sec. 309. Protecting secured creditors in chapter 13 cases. 
Sec. 310. Limitation on luxury goods. 
Sec. 311. Automatic stay. 
Sec. 312. Extension of period between bankruptcy discharges. 
Sec. 313. Definition of household goods and antiques. 
Sec. 314. Debt incurred to pay nondischargeable debts. 
Sec. 315. Giving creditors fair notice in chapters 7 and 13 cases. 
Sec. 316. Dismissal for failure to timely file schedules or provide required infor-
mation. 
Sec. 317. Adequate time to prepare for hearing on confirmation of the plan. 
Sec. 318. Chapter 13 plans to have a 5-year duration in certain cases. 
Sec. 319. Sense of Congress regarding expansion of rule 9011 of the Federal 
Rules of Bankruptcy Procedure. 
Sec. 320. Prompt relief from stay in individual cases. 
Sec. 321. Chapter 11 cases filed by individuals. 
Sec. 322. Limitations on homestead exemption. 
Sec. 323. Excluding employee benefit plan participant contributions and other 
property from the estate. 
Sec. 324. Exclusive jurisdiction in matters involving bankruptcy professionals. 
Sec. 325. United States trustee program filing fee increase. 
Sec. 326. Sharing of compensation. 
Sec. 327. Fair valuation of collateral. 
Sec. 328. Defaults based on nonmonetary obligations. 
Sec. 329. Clarification of postpetition wages and benefits. 
Sec. 330 Delay of discharge during pendency of certain proceedings. 
TITLE IV—GENERAL AND SMALL BUSINESS BANKRUPTCY 
PROVISIONS 
Subtitle A—General Business Bankruptcy Provisions 
Sec. 401. Adequate protection for investors. 
Sec. 402. Meetings of creditors and equity security holders.
Sec. 403. Protection of refinance of security interest. 
Sec. 404. Executory contracts and unexpired leases. 
Sec. 405. Creditors and equity security holders committees. 
Sec. 406. Amendment to section 546 of title 11, United States Code. 
Sec. 407. Amendments to section 330(a) of title 11, United States Code. 
Sec. 408. Postpetition disclosure and solicitation. 
Sec. 409. Preferences. 
Sec. 410. Venue of certain proceedings. 
Sec. 411. Period for filing plan under chapter 11. 
Sec. 412. Fees arising from certain ownership interests. 
Sec. 413. Creditor representation at first meeting of creditors. 
Sec. 414. Definition of disinterested person. 
Sec. 415. Factors for compensation of professional persons. 
Sec. 416. Appointment of elected trustee. 
Sec. 417. Utility service. 
Sec. 418. Bankruptcy fees. 
Sec. 419. More complete information regarding assets of the estate. 
Subtitle B—Small Business Bankruptcy Provisions 
Sec. 431. Flexible rules for disclosure statement and plan. 
Sec. 432. Definitions. 
Sec. 433. Standard form disclosure statement and plan. 
Sec. 434. Uniform national reporting requirements. 
Sec. 435. Uniform reporting rules and forms for small business cases. 
Sec. 436. Duties in small business cases. 
Sec. 437. Plan filing and confirmation deadlines. 
Sec. 438. Plan confirmation deadline. 
Sec. 439. Duties of the United States trustee. 
Sec. 440. Scheduling conferences. 
Sec. 441. Serial filer provisions. 
Sec. 442. Expanded grounds for dismissal or conversion and appointment of 
trustee. 
Sec. 443. Study of operation of title 11, United States Code, with respect to 
small businesses. 
Sec. 444. Payment of interest. 
Sec. 445. Priority for administrative expenses. 
Sec. 446. Duties with respect to a debtor who is a plan administrator of an em-
ployee benefit plan. 
Sec. 447. Appointment of committee of retired employees. 
TITLE V—MUNICIPAL BANKRUPTCY PROVISIONS 
Sec. 501. Petition and proceedings related to petition. 
Sec. 502. Applicability of other sections to chapter 9. 
TITLE VI—BANKRUPTCY DATA 
Sec. 601. Improved bankruptcy statistics. 
Sec. 602. Uniform rules for the collection of bankruptcy data. 
Sec. 603. Audit procedures. 
Sec. 604. Sense of Congress regarding availability of bankruptcy data. 
TITLE VII—BANKRUPTCY TAX PROVISIONS 
Sec. 701. Treatment of certain liens. 
Sec. 702. Treatment of fuel tax claims.
Sec. 703. Notice of request for a determination of taxes. 
Sec. 704. Rate of interest on tax claims. 
Sec. 705. Priority of tax claims. 
Sec. 706. Priority property taxes incurred. 
Sec. 707. No discharge of fraudulent taxes in chapter 13. 
Sec. 708. No discharge of fraudulent taxes in chapter 11. 
Sec. 709. Stay of tax proceedings limited to prepetition taxes. 
Sec. 710. Periodic payment of taxes in chapter 11 cases. 
Sec. 711. Avoidance of statutory tax liens prohibited. 
Sec. 712. Payment of taxes in the conduct of business. 
Sec. 713. Tardily filed priority tax claims. 
Sec. 714. Income tax returns prepared by tax authorities. 
Sec. 715. Discharge of the estate’s liability for unpaid taxes. 
Sec. 716. Requirement to file tax returns to confirm chapter 13 plans. 
Sec. 717. Standards for tax disclosure. 
Sec. 718. Setoff of tax refunds. 
Sec. 719. Special provisions related to the treatment of State and local taxes. 
Sec. 720. Dismissal for failure to timely file tax returns. 
TITLE VIII—ANCILLARY AND OTHER CROSS-BORDER CASES 
Sec. 801. Amendment to add chapter 15 to title 11, United States Code. 
Sec. 802. Other amendments to titles 11 and 28, United States Code. 
TITLE IX—FINANCIAL CONTRACT PROVISIONS 
Sec. 901. Treatment of certain agreements by conservators or receivers of in-
sured depository institutions. 
Sec. 902. Authority of the corporation with respect to failed and failing institu-
tions. 
Sec. 903. Amendments relating to transfers of qualified financial contracts. 
Sec. 904. Amendments relating to disaffirmance or repudiation of qualified fi-
nancial contracts. 
Sec. 905. Clarifying amendment relating to master agreements. 
Sec. 906. Federal Deposit Insurance Corporation Improvement Act of 1991. 
Sec. 907. Bankruptcy law amendments. 
Sec. 908. Recordkeeping requirements. 
Sec. 909. Exemptions from contemporaneous execution requirement. 
Sec. 910. Damage measure. 
Sec. 911. SIPC stay. 
TITLE X—PROTECTION OF FAMILY FARMERS AND FAMILY 
FISHERMEN 
Sec. 1001. Permanent reenactment of chapter 12. 
Sec. 1002. Debt limit increase. 
Sec. 1003. Certain claims owed to governmental units. 
Sec. 1004. Definition of family farmer. 
Sec. 1005. Elimination of requirement that family farmer and spouse receive 
over 50 percent of income from farming operation in year prior 
to bankruptcy. 
Sec. 1006. Prohibition of retroactive assessment of disposable income. 
Sec. 1007. Family fishermen. 
TITLE XI—HEALTH CARE AND EMPLOYEE BENEFITS 
Sec. 1101. Definitions.
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) For purposes of this subsection, the term 
‘disposable income’ means current monthly income 
received by the debtor (other than child support pay-
ments, foster care payments, or disability payments 
for a dependent child made in accordance with appli-
cable nonbankruptcy law to the extent reasonably 
necessary to be expended for such child) less 
amounts reasonably necessary to be expended—
‘‘(A) for the maintenance or support of the 
debtor or a dependent of the debtor or for a do-
mestic support obligation that first becomes 
payable after the date the petition is filed and 
for charitable contributions (that meet the defi-
nition of ‘charitable contribution’ under section 
548(d)(3) to a qualified religious or charitable 
entity or organization (as defined in section 
548(d)(4)) in an amount not to exceed 15 per-
cent of gross income of the debtor for the year 
in which the contributions are made; and 
‘‘(B) if the debtor is engaged in business, 
for the payment of expenditures necessary for 
the continuation, preservation, and operation of 
such business.