‘‘(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 (in-
cluding a plan of reorganization confirmed under chapter
11 of this title), unless the plan is dismissed, in default,
or the creditor has not received payments required to be
made under the plan in the manner required by the plan
(including crediting the amounts required under the plan),
shall constitute a violation of an injunction under sub-
section (a)(2) if the act of the creditor to collect and fail-
ure 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 by this Act, 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;’’;
(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 open end credit as defined under 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 provided 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 the debtor, or to the extent
this annual percentage rate is not readily
available or not applicable, then
‘‘(II) the simple interest rate applica-
ble to the amount reaffirmed as of the date
the disclosure statement is given to the
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
balance 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 closed end credit as defined under 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 the debt-
or prior to the reaffirmation agreement
with respect to the debt, or, if no such dis-
closure statement was provided the debtor,
the annual percentage rate as it would
have been so disclosed at the time the dis-
closure statement is given the debtor, or to
the extent this annual percentage rate is
not readily available or not applicable, then
‘‘(II) the simple interest rate applica-
ble to the amount reaffirmed as of the date
the disclosure statement is given the debt-
or, 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 you are re-
affirming and listing the items and their original
purchase price that are subject to the asserted secu-
rity interest, or if not a purchase-money security in-
terest then listing by items or types and the original
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 counsel 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 debt-
or 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.’.
‘‘(9) 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—
‘‘(A) such creditor retains a security interest in
real property that is the debtor’s principal residence;
‘‘(B) such act is in the ordinary course of busi-
ness between the creditor and the debtor; and
‘‘(C) 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.
‘‘(l) Notwithstanding any other provision of this title:
‘‘(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 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 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 (12
U.S.C. 461(b)(1)(A)(iv)).’’.
(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.’’.
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 redesignated, by strik-
ing ‘‘First’’ and inserting ‘‘Second’’;
(4) in paragraph (3), as redesignated, by strik-
ing ‘‘Second’’ and inserting ‘‘Third’’;
(5) in paragraph (4), as 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 redesignated, by strik-
ing ‘‘Fourth’’ and inserting ‘‘Fifth’’;
(7) in paragraph (6), as redesignated, by strik-
ing ‘‘Fifth’’ and inserting ‘‘Sixth’’;
(8) in paragraph (7), as redesignated, by strik-
ing ‘‘Sixth’’ and inserting ‘‘Seventh’’; and
(9) by inserting before paragraph (2), as redes-
ignated, 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
under this paragraph by a governmental unit
under this title after the date of filing of the pe-
tition shall be applied and distributed in accord-
ance with applicable nonbankruptcy law.
‘‘(B) Subject to claims under subpara-
graph (A), allowed unsecured claims for domes-
tic support obligations that, as of the date the
petition was filed are assigned by a spouse,
former spouse, child of the debtor, or such
child’s parent, legal guardian, or responsible
relative to a governmental unit (unless such ob-
ligation is assigned voluntarily by the spouse,
former spouse, child, parent, legal guardian, or
responsible relative of the child for the purpose
of collecting the debt) or are owed directly to or
recoverable by a government unit under applica-
ble nonbankruptcy law, on the condition that
funds received under this paragraph by a gov-
ernmental unit under this title after the date of
filing of the petition be applied and distributed
in accordance with applicable nonbankruptcy
law.’’.
SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMATION AND
DISCHARGE IN CASES INVOLVING DOMESTIC
SUPPORT OBLIGATIONS.
Title 11, United States Code, is amended—
(1) in section 1129(a), by adding at the end the
following:
‘‘(14) If the debtor is required by a judicial or
administrative order or statute to pay a domestic
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 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;’’;
(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 in the plan) have been paid’’ after
‘‘completion by the debtor of all payments under the
plan’’;
(7) in section 1307(c)—
(A) in paragraph (9), by striking ‘‘or’’ at
the end;
(B) in paragraph (10), by striking the pe-
riod at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(11) failure of the debtor to pay any domestic
support obligation that first becomes payable after
the date on which the petition is filed.’’;
(8) in section 1322(a)—
(A) in paragraph (2), by striking ‘‘and’’ at
the end;
(B) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding in the end the following:
‘‘(4) notwithstanding any other provision of this
section, a plan may provide for less than full pay-
ment of all amounts owed for a claim entitled to pri-
ority under section 507(a)(1)(B) only if the plan
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 this
Act), by adding at the end 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 in the plan) have been paid’’ after
‘‘completion by the debtor of all payments under the
plan’’.
SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC
SUPPORT OBLIGATION PROCEEDINGS.
Section 362(b) of title 11, United States Code, is
amended by striking paragraph (2) and inserting the fol-
lowing:
‘‘(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) the collection of a domestic support
obligation from property that is not property of
the estate;
‘‘(C) with respect to the withholding of in-
come that is property of the estate or property
of the debtor for payment of a domestic support
obligation under a judicial or administrative
order;
‘‘(D) 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) 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) 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) 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
this Act, 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 an individual debtor,
there is a claim for a domestic support obligation,
provide the applicable notification specified in sub-
section (c); and’’; and
(2) by adding at the end the following:
‘‘(c)(1) In any case described in subsection (a)(10),
the trustee shall—
‘‘(A)(i) notify in writing the holder of the claim
of the right of that holder to use the services of a
State child support enforcement agency established
under sections 464 and 466 of the Social Security
Act for the State in which the holder resides for as-
sistance in collecting child support during and after
the bankruptcy procedures;
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child sup-
port enforcement agency; and
‘‘(iii) include in the notice an explanation of the
rights of the holder of the claim to payment of the
claim under this chapter; and
‘‘(B)(i) notify in writing the State child support
agency of the State in which the holder of the claim
resides of the claim;
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the
holder of the claim; and
‘‘(iii) at such time as the debtor is granted a
discharge under section 727, notify the holder of
that claim and the State child support agency of the
State in which that holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor;
‘‘(III) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(IV) with respect to the debtor’s case, the
name of each creditor that holds a claim that—
‘‘(aa) is not discharged under para-
graph (2), (4), or (14A) of section 523(a);
or
‘‘(bb) was reaffirmed by the debtor
under section 524(c).
‘‘(2)(A) A holder of a claim or a State child support
agency may request from a creditor described in para-
graph (1)(B)(iii)(IV) the last known address of the debtor.
‘‘(B) Notwithstanding any other provision of law, a
creditor that makes a disclosure of a last known address
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable to the debtor or any
other person by reason of making that disclosure.’’.
(b) DUTIES OF TRUSTEE UNDER CHAPTER 11.—
Section 1106 of title 11, United States Code, is
amended—
(1) in subsection (a)—
(A) in paragraph (6), by striking ‘‘and’’ at
the end;
(B) in paragraph (7), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(8) if, with respect to an individual debtor,
there is a claim for a domestic support obligation,
provide the applicable notification specified in sub-
section (c).’’; and
(2) by adding at the end the following:
‘‘(c)(1) In any case described in subsection (a)(7), the
trustee shall—
‘‘(A)(i) notify in writing the holder of the claim
of the right of that holder to use the services of a
State child support enforcement agency established
under sections 464 and 466 of the Social Security
Act for the State in which the holder resides; and
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child sup-
port enforcement agency; and
‘‘(B)(i) notify, in writing, the State child sup-
port agency (of the State in which the holder of the
claim resides) of the claim;
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the
holder of the claim; and
‘‘(iii) at such time as the debtor is granted a
discharge under section 1141, notify the holder of
the claim and the State child support agency of the
State in which that holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor;
‘‘(III) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(IV) with respect to the debtor’s case, the
name of each creditor that holds a claim that—
‘‘(aa) is not discharged under para-
graph (2), (3), or (14) of section 523(a);
or
‘‘(bb) was reaffirmed by the debtor
under section 524(c).
‘‘(2)(A) A holder of a claim or a State child support
agency may request from a creditor described in para-
graph (1)(B)(iii)(IV) the last known address of the debtor.
‘‘(B) Notwithstanding any other provision of law, a
creditor that makes a disclosure of a last known address
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable to the debtor or any
other person by reason of making that disclosure.’’.
(c) DUTIES OF TRUSTEE UNDER CHAPTER 12.—
Section 1202 of title 11, United States Code, is
amended—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at
the end;
(B) in paragraph (5), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(6) if, with respect to an individual debtor,
there is a claim for a domestic support obligation,
provide the applicable notification specified in sub-
section (c).’’; and
(2) by adding at the end the following:
‘‘(c)(1) In any case described in subsection (b)(6), the
trustee shall—
‘‘(A)(i) notify in writing the holder of the claim
of the right of that holder to use the services of a
State child support enforcement agency established
under sections 464 and 466 of the Social Security
Act for the State in which the holder resides; and
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child sup-
port enforcement agency; and
‘‘(B)(i) notify, in writing, the State child sup-
port agency (of the State in which the holder of the
claim resides) of the claim;
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the
holder of the claim; and
‘‘(iii) at such time as the debtor is granted a
discharge under section 1228, notify the holder of
the claim and the State child support agency of the
State in which that holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor;
‘‘(III) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(IV) with respect to the debtor’s case, the
name of each creditor that holds a claim that—
‘‘(aa) is not discharged under para-
graph (2), (4), or (14) of section 523(a);
or
‘‘(bb) was reaffirmed by the debtor
under section 524(c).
‘‘(2)(A) A holder of a claim or a State child support
agency may request from a creditor described in para-
graph (1)(B)(iii)(IV) the last known address of the debtor.
‘‘(B) Notwithstanding any other provision of law, a
creditor that makes a disclosure of a last known address
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable to the debtor or any
other person by reason of making that disclosure.’’.
(d) DUTIES OF TRUSTEE UNDER CHAPTER 13.—
Section 1302 of title 11, United States Code, is
amended—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘and’’ at
the end;
(B) in paragraph (5), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(6) if, with respect to an individual debtor,
there is a claim for a domestic support obligation,
provide the applicable notification specified in sub-
section (d).’’; and
(2) by adding at the end the following:
‘‘(d)(1) In any case described in subsection (b)(6),
the trustee shall—
‘‘(A)(i) notify in writing the holder of the claim
of the right of that holder to use the services of a
State child support enforcement agency established
under sections 464 and 466 of the Social Security
Act (42 U.S.C. 664, 666) for the State in which the
holder resides; and
‘‘(ii) include in the notice under this paragraph
the address and telephone number of the child sup-
port enforcement agency; and
‘‘(B)(i) notify in writing the State child support
agency of the State in which the holder of the claim
resides of the claim;
‘‘(ii) include in the notice under this paragraph
the name, address, and telephone number of the
holder of the claim; and
‘‘(iii) at such time as the debtor is granted a
discharge under section 1328, notify the holder of
the claim and the State child support agency of the
State in which that holder resides of—
‘‘(I) the granting of the discharge;
‘‘(II) the last recent known address of the
debtor;
‘‘(III) the last recent known name and ad-
dress of the debtor’s employer; and
‘‘(IV) with respect to the debtor’s case, the
name of each creditor that holds a claim that—
‘‘(aa) is not discharged under para-
graph (2), (4), or (14) of section 523(a);
or
‘‘(bb) was reaffirmed by the debtor
under section 524(c).
‘‘(2)(A) A holder of a claim or a State child support
agency may request from a creditor described in para-
graph (1)(B)(iii)(IV) the last known address of the debtor.
‘‘(B) Notwithstanding any other provision of law, a
creditor that makes a disclosure of a last known address
of a debtor in connection with a request made under sub-
paragraph (A) shall not be liable to the debtor or any
other person by reason of making that disclosure.’’.
SEC. 
220. 
NONDISCHARGEABILITY 
OF 
CERTAIN 
EDU-
CATIONAL BENEFITS AND LOANS.
Section 523(a) of title 11, United States Code, is
amended by striking paragraph (8) and inserting the fol-
lowing:
‘‘(8) unless excepting such debt from discharge
under this paragraph would impose an undue hard-
ship on the debtor and the debtor’s dependents,
for—
‘‘(A)(i) an educational benefit overpayment
or loan made, insured, or guaranteed by a gov-
ernmental unit, or made under any program
funded in whole or in part by a governmental
unit or nonprofit institution; or
‘‘(ii) an obligation to repay funds received
as an educational benefit, scholarship, or sti-
pend; or
‘‘(B) any other educational loan that is a
qualified education loan, as that term is defined
in section 221(e)(1) of the Internal Revenue
Code of 1986, incurred by an individual debt-
or;’’.
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 ‘‘a person,
other than an attorney or an employee of an attor-
ney’’ and inserting ‘‘a person other than the attor-
ney for the debtor or an employee of such attorney
under the direct supervision 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—
‘‘(aa) the debtor; and
‘‘(bb) the bankruptcy petition pre-
parer, under penalty of perjury; 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
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 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 redesig-
nated, and inserting the following:
‘‘(3)(A) The court shall disallow and order the
immediate turnover to the bankruptcy trustee any
fee referred to in paragraph (2) found to be in ex-
cess of the value of any services—
‘‘(i) rendered by the preparer during the
12-month period immediately preceding the
date of filing of the petition; or
‘‘(ii) found to be in violation of any rule or
guideline promulgated or prescribed under
paragraph (1).
‘‘(B) All fees charged by a bankruptcy petition
preparer may be forfeited in any case in which the
bankruptcy petition preparer fails to comply with
this subsection or subsection (b), (c), (d), (e), (f), or
(g).
‘‘(C) An individual may exempt any funds re-
covered 
under 
this 
paragraph 
under 
section
522(b).’’; and
(E) in paragraph (4), as redesignated, by
striking ‘‘or the United States trustee’’ and in-
serting ‘‘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 motion of the debtor,
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 upon
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-
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’’;
(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
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
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—
(1) in paragraph (17), by striking ‘‘or’’ at the
end;
(2) in paragraph (18), by striking the period
and inserting a semicolon;
(3) by inserting after paragraph (18) the fol-
lowing:
‘‘(19) under subsection (a), of withholding of
income from a debtor’s wages and collection of
amounts withheld, under the debtor’s agreement au-
thorizing that withholding and collection for the ben-
efit of a pension, profit-sharing, stock bonus, or
other plan established under section 401, 403, 408,
408A, 414, 457, or 501(a) of the Internal Revenue
Code of 1986, that is sponsored by the employer of
the debtor, or an affiliate, successor, or predecessor
of such employer—
‘‘(A) to the extent that the amounts with-
held and collected are used solely for payments
relating to a loan from a plan that satisfies the
requirements of section 408(b)(1) of the Em-
ployee Retirement Income Security Act of 1974
or is subject to section 72(p) of the Internal
Revenue Code of 1986; or
‘‘(B) in the case of a loan from a thrift
savings plan described in subchapter III of
chapter 84 of title 5, that satisfies the require-
ments of section 8433(g) of such title;’’; and
(4) by adding at the end of the flush material
at the end of the subsection, the following: ‘‘Nothing
100
in paragraph (19) may be construed to provide that
any loan made under a governmental plan under
section 414(d), or a contract or account under sec-
tion 403(b) of the Internal Revenue Code of 1986
constitutes a claim or a debt under this title.’’.
(c) EXCEPTIONS TO DISCHARGE.—Section 523(a) of
title 11, United States Code, as amended by this Act, is
amended by adding at the end the following:
‘‘(18) owed to a pension, profit-sharing, stock
bonus, or other plan established under section 401,
403, 408, 408A, 414, 457, or 501(c) of the Internal
Revenue Code of 1986, under—
‘‘(A) a loan permitted under section
408(b)(1) of the Employee Retirement Income
Security Act of 1974, or subject to section
72(p) of the Internal Revenue Code of 1986; or
‘‘(B) a loan from the thrift savings plan
described in subchapter III of chapter 84 of
title 5, that satisfies the requirements of section
8433(g) of such title,
but nothing in this paragraph may be construed to
provide that any loan made under a governmental
plan under section 414(d), or a contract or account
under section 403(b), of the Internal Revenue Code
101
of 1986 constitutes a claim or a debt under this
title.’’.
(d) PLAN CONTENTS.—Section 1322 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(f) A plan may not materially alter the terms of a
loan described in section 362(b)(19) and any amounts re-
quired to repay such loan shall not constitute ‘disposable
income’ under section 1325.’’.
(e) ASSET LIMITATION.—Section 522 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(n) For assets in individual retirement accounts de-
scribed in section 408 or 408A of the Internal Revenue
Code of 1986, other than a simplified employee pension
under section 408(k) of that Code or a simple retirement
account under section 408(p) of that Code, the aggregate
value of such assets exempted under this section, without
regard to amounts attributable to rollover contributions
under section 402(c), 402(e)(6), 403(a)(4), 403(a)(5), and
403(b)(8) of the Internal Revenue Code of 1986, and
earnings thereon, shall not exceed $1,000,000 (which
amount shall be adjusted as provided in section 104 of
this title) in a case filed by an individual debtor, except
102
that such amount may be increased if the interests of jus-
tice so require.’’.
SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANK-
RUPTCY.
(a) EXCLUSIONS.—Section 541 of title 11, United
States Code, is amended—
(1) in subsection (b)—
(A) in paragraph (4), by striking ‘‘or’’ at
the end;
(B) by redesignating paragraph (5) as
paragraph (10); and
(C) by inserting after paragraph (4) the
following:
‘‘(5) funds placed in an education individual re-
tirement account (as defined in section 530(b)(1) of
the Internal Revenue Code of 1986) not later than
365 days before the date of filing of the petition,
but—
‘‘(A) only if the designated beneficiary of
such account was a son, daughter, stepson,
stepdaughter, grandchild, or step-grandchild of
the debtor for the taxable year for which funds
were placed in such account;
‘‘(B) only to the extent that such funds—
103
‘‘(i) are not pledged or promised to
any entity in connection with any extension
of credit; and
‘‘(ii) are not excess contributions (as
described in section 4973(e) of the Internal
Revenue Code of 1986); and
‘‘(C) in the case of funds placed in all such
accounts having the same designated bene-
ficiary not earlier than 720 days nor later than
365 days before such date, only so much of
such funds as does not exceed $5,000;
‘‘(6) funds used to purchase a tuition credit or
certificate or contributed to an account in accord-
ance with section 529(b)(1)(A) of the Internal Rev-
enue Code of 1986 under a qualified State tuition
program (as defined in section 529(b)(1) of such
Code) not later than 365 days before the date of fil-
ing of the petition, but—
‘‘(A) only if the designated beneficiary of
the amounts paid or contributed to such tuition
program was a son, daughter, stepson, step-
daughter, grandchild, or step-grandchild of the
debtor for the taxable year for which funds
were paid or contributed;
104
‘‘(B) with respect to the aggregate amount
paid or contributed to such program having the
same designated beneficiary, only so much of
such amount as does not exceed the total con-
tributions permitted under section 529(b)(7) of
such Code with respect to such beneficiary, as
adjusted beginning on the date of the filing of
the petition by the annual increase or decrease
(rounded to the nearest tenth of 1 percent) in
the education expenditure category of the Con-
sumer Price Index prepared by the Department
of Labor; and
‘‘(C) in the case of funds paid or contrib-
uted to such program having the same des-
ignated beneficiary not earlier than 720 days
nor later than 365 days before such date, only
so much of such funds as does not exceed
$5,000;’’; and
(2) by adding at the end the following:
‘‘(e) In determining whether any of the relationships
specified in paragraph (5)(A) or (6)(A) of subsection (b)
exists, a legally adopted child of an individual (and a child
who is a member of an individual’s household, if placed
with such individual by an authorized placement agency
for legal adoption by such individual), or a foster child
105
of an individual (if such child has as the child’s principal
place of abode the home of the debtor and is a member
of the debtor’s household) shall be treated as a child of
such individual by blood.’’.
(b) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, as amended by this Act, is amended
by adding at the end the following:
‘‘(c) In addition to meeting the requirements under
subsection (a), a debtor shall file with the court a record
of any interest that a debtor has in an education individual
retirement account (as defined in section 530(b)(1) of the
Internal Revenue Code of 1986) or under a qualified State
tuition program (as defined in section 529(b)(1) of such
Code).’’.
SEC. 226. DEFINITIONS.
(a) DEFINITIONS.—Section 101 of title 11, United
States Code, is amended—
(1) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) ‘assisted person’ means any person whose
debts consist primarily of consumer debts and whose
non-exempt assets are less than $150,000;’’;
(2) by inserting after paragraph (4) the fol-
lowing:
106
‘‘(4A) ‘bankruptcy assistance’ means any goods
or services sold or otherwise provided to an assisted
person with the express or implied purpose of pro-
viding information, advice, counsel, document prepa-
ration, or filing, or attendance at a creditors’ meet-
ing or appearing in a proceeding on behalf of an-
other or providing legal representation with respect
to a case or proceeding under this title;’’; and
(3) by inserting after paragraph (12) the fol-
lowing:
‘‘(12A) ‘debt relief agency’ means any person
who provides any bankruptcy assistance to an as-
sisted person in return for the payment of money or
other valuable consideration, or who is a bankruptcy
petition preparer under section 110, but does not
include—
‘‘(A) any person that is an officer, director,
employee or agent of a person who provides
such assistance or of such preparer;
‘‘(B) a nonprofit organization which is ex-
empt from taxation under section 501(c)(3) of
the Internal Revenue Code of 1986;
‘‘(C) a creditor of such assisted person, to
the extent that the creditor is assisting such as-
107
sisted person to restructure any debt owed by
such assisted person to the creditor;
‘‘(D) a depository institution (as defined in
section 3 of the Federal Deposit Insurance Act)
or any Federal credit union or State credit
union (as those terms are defined in section
101 of the Federal Credit Union Act), or any
affiliate or subsidiary of such a depository insti-
tution or credit union; or
‘‘(E) an author, publisher, distributor, or
seller of works subject to copyright protection
under title 17, when acting in such capacity.’’.
(b) CONFORMING AMENDMENT.—Section 104(b)(1)
of title 11, United States Code, is amended by inserting
‘‘101(3),’’ after ‘‘sections’’.
SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES.
(a) ENFORCEMENT.—Subchapter II of chapter 5 of
title 11, United States Code, is amended by adding at the
end the following:
‘‘§ 526. Restrictions on debt relief agencies
‘‘(a) A debt relief agency shall not—
‘‘(1) fail to perform any service that such agen-
cy informed an assisted person or prospective as-
sisted person it would provide in connection with a
case or proceeding under this title;
108
‘‘(2) make any statement, or counsel or advise
any assisted person or prospective assisted person to
make a statement in a document filed in a case or
proceeding under this title, that is untrue and mis-
leading, or that upon the exercise of reasonable care,
should have been known by such agency to be untrue
or misleading;
‘‘(3) misrepresent to any assisted person or pro-
spective assisted person, directly or indirectly, af-
firmatively or by material omission, with respect
to—
‘‘(i) the services that such agency will pro-
vide to such person; or
‘‘(ii) the benefits and risks that may result
if such person becomes a debtor in a case under
this title; or
‘‘(4) advise an assisted person or prospective
assisted person to incur more debt in contemplation
of such person filing a case under this title or to pay
an attorney or bankruptcy petition preparer fee or
charge for services performed as part of preparing
for or representing a debtor in a case under this
title.
‘‘(b) Any waiver by any assisted person of any protec-
tion or right provided under this section shall not be en-
109
forceable against the debtor by any Federal or State court
or any other person, but may be enforced against a debt
relief agency.
‘‘(c)(1) Any contract for bankruptcy assistance be-
tween a debt relief agency and an assisted person that
does not comply with the material requirements of this
section, section 527, or section 528 shall be void and may
not be enforced by any Federal or State court or by any
other person, other than such assisted person.
‘‘(2) Any debt relief agency shall be liable to an as-
sisted person in the amount of any fees or charges in con-
nection with providing bankruptcy assistance to such per-
son that such debt relief agency has received, for actual
damages, and for reasonable attorneys’ fees and costs if
such agency is found, after notice and hearing, to have—
‘‘(A) intentionally or negligently failed to com-
ply with any provision of this section, section 527,
or section 528 with respect to a case or proceeding
under this title for such assisted person;
‘‘(B) provided bankruptcy assistance to an as-
sisted person in a case or proceeding under this title
that is dismissed or converted to a case under an-
other chapter of this title because of such agency’s
intentional or negligent failure to file any required
document including those specified in section 521; or
110
‘‘(C) intentionally or negligently disregarded the
material requirements of this title or the Federal
Rules of Bankruptcy Procedure applicable to such
agency.
‘‘(3) In addition to such other remedies as are pro-
vided under State law, whenever the chief law enforcement
officer of a State, or an official or agency designated by
a State, has reason to believe that any person has violated
or is violating this section, the State—
‘‘(A) may bring an action to enjoin such viola-
tion;
‘‘(B) may bring an action on behalf of its resi-
dents to recover the actual damages of assisted per-
sons arising from such violation, including any liabil-
ity under paragraph (2); and
‘‘(C) in the case of any successful action under
subparagraph (A) or (B), shall be awarded the costs
of the action and reasonable attorney fees as deter-
mined by the court.
‘‘(4) The United States District Court for any district
located in the State shall have concurrent jurisdiction of
any action under subparagraph (A) or (B) of paragraph
(3).
‘‘(5) Notwithstanding any other provision of Federal
law and in addition to any other remedy provided under
111
Federal or State law, if the court, on its own motion or
on motion of the United States trustee or the debtor, finds
that a person intentionally violated this section, or en-
gaged in a clear and consistent pattern or practice of vio-
lating this section, the court may—
‘‘(A) enjoin the violation of such section; or
‘‘(B) impose an appropriate civil penalty
against such person.’’.
‘‘(d) No provision of this section, section 527, or sec-
tion 528 shall—
‘‘(1) annul, alter, affect, or exempt any person
subject to such sections from complying with any
law of any State except to the extent that such law
is inconsistent with those sections, and then only to
the extent of the inconsistency; or
‘‘(2) be deemed to limit or curtail the authority
or ability—
‘‘(A) of a State or subdivision or instru-
mentality thereof, to determine and enforce
qualifications for the practice of law under the
laws of that State; or
‘‘(B) of a Federal court to determine and
enforce the qualifications for the practice of law
before that court.’’.
112
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 5 of title 11, United States Code, is
amended by inserting before the item relating to section
527, the following:
‘‘526. Restrictions on debt relief agencies.’’.
SEC. 228. DISCLOSURES.
(a) DISCLOSURES.—Subchapter II of chapter 5 of
title 11, United States Code, as amended by this Act, is
amended by adding at the end the following:
‘‘§ 527. Disclosures
‘‘(a) A debt relief agency providing bankruptcy assist-
ance to an assisted person shall provide—
‘‘(1) the written notice required under section
342(b)(1) of this title; and
‘‘(2) to the extent not covered in the written no-
tice described in paragraph (1), and not later than
3 business days after the first date on which a debt
relief agency first offers to provide any bankruptcy
assistance services to an assisted person, a clear and
conspicuous written notice advising assisted persons
that—
‘‘(A) all information that the assisted per-
son is required to provide with a petition and
thereafter during a case under this title is re-
quired to be complete, accurate, and truthful;
113
‘‘(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 in-
quiry; 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
applicable, or one substantially similar. The statement
shall be clear and conspicuous and shall be in a single
114
document separate from other documents or notices pro-
vided to the assisted person:
‘‘ ‘IMPORTANT INFORMATION ABOUT BANK-
RUPTCY ASSISTANCE SERVICES FROM AN AT-
TORNEY 
OR 
BANKRUPTCY 
PETITION 
PRE-
PARER.
‘‘ ‘If you decide to seek bankruptcy relief, you can
represent yourself, you can hire an attorney to represent
you, or you can get help in some localities from a bank-
ruptcy petition preparer who is not an attorney. THE
LAW REQUIRES AN ATTORNEY OR BANKRUPTCY
PETITION PREPARER TO GIVE YOU A WRITTEN
CONTRACT SPECIFYING WHAT THE ATTORNEY
OR BANKRUPTCY PETITION PREPARER WILL DO
FOR YOU AND HOW MUCH IT WILL COST. Ask to
see the contract before you hire anyone.
‘‘ ‘The following information helps you understand
what must be done in a routine bankruptcy case to help
you evaluate how much service you need. Although bank-
ruptcy can be complex, many cases are routine.
‘‘ ‘Before filing a bankruptcy case, either you or your
attorney should analyze your eligibility for different forms
of debt relief made available by the Bankruptcy Code and
which form of relief is most likely to be beneficial for you.
Be sure you understand the relief you can obtain and its
115
limitations. To file a bankruptcy case, documents called
a Petition, Schedules and Statement of Financial Affairs,
as well as in some cases a Statement of Intention need
to be prepared correctly and filed with the bankruptcy
court. You will have to pay a filing fee to the bankruptcy
court. Once your case starts, you will have to attend the
required first meeting of creditors where you may be ques-
tioned by a court official called a ‘trustee’ and by credi-
tors.
‘‘ ‘If you choose to file a chapter 7 case, you may
be asked by a creditor to reaffirm a debt. You may want
help deciding whether to do so and a creditor is not per-
mitted to coerce you into reaffirming your debts.
‘‘ ‘If you choose to file a chapter 13 case in which
you repay your creditors what you can afford over 3 to
5 years, you may also want help with preparing your chap-
ter 13 plan and with the confirmation hearing on your
plan which will be before a bankruptcy judge.
‘‘ ‘If you select another type of relief under the Bank-
ruptcy Code other than chapter 7 or chapter 13, you will
want to find out what needs to be done from someone fa-
miliar with that type of relief.
‘‘ ‘Your bankruptcy case may also involve litigation.
You are generally permitted to represent yourself in litiga-
116
tion in bankruptcy court, but only attorneys, not bank-
ruptcy petition preparers, can give you legal advice.’.
‘‘(c) Except to the extent the debt relief agency pro-
vides the required information itself after reasonably dili-
gent inquiry of the assisted person or others so as to ob-
tain such information reasonably accurately for inclusion
on the petition, schedules or statement of financial affairs,
a debt relief agency providing bankruptcy assistance to an
assisted person, to the extent permitted by nonbankruptcy
law, shall provide each assisted person at the time re-
quired for the notice required under subsection (a)(1) rea-
sonably sufficient information (which shall be provided in
a clear and conspicuous writing) to the assisted person
on how to provide all the information the assisted person
is required to provide under this title pursuant to section
521, including—
‘‘(1) how to value assets at replacement value,
determine current monthly income, the amounts
specified in section 707(b)(2)) and, in a chapter 13
case, how to determine disposable income in accord-
ance with section 707(b)(2) and related calculations;
‘‘(2) how to complete the list of creditors, in-
cluding how to determine what amount is owed and
what address for the creditor should be shown; and
117
‘‘(3) how to determine what property is exempt
and how to value exempt property at replacement
value as defined in section 506 of this title.
‘‘(d) A debt relief agency shall maintain a copy of
the notices required under subsection (a) of this section
for 2 years after the date on which the notice is given
the assisted person.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 5 of title 11, United States Code, as
amended by this Act, is amended by inserting after the
item relating to section 526 the following:
‘‘527. Disclosures.’’.
SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES.
(a) ENFORCEMENT.—Subchapter II of chapter 5 of
title 11, United States Code, as amended by this Act, is
amended by adding at the end the following:
‘‘§ 528. Requirements for debt relief agencies
‘‘(a) A debt relief agency shall—
‘‘(1) not later than 5 business days after the
first date such agency provides any bankruptcy as-
sistance services to an assisted person, but prior to
such assisted person’s petition under this title being
filed, execute a written contract with such assisted
person that explains clearly and conspicuously—
‘‘(A) the services such agency will provide
to such assisted person; and
118
‘‘(B) the fees or charges for such services,
and the terms of payment;
‘‘(2) provide the assisted person with a copy of
the fully executed and completed contract;
‘‘(3) clearly and conspicuously disclose in any
advertisement of bankruptcy assistance services or of
the benefits of bankruptcy directed to the general
public (whether in general media, seminars or spe-
cific mailings, telephonic or electronic messages, or
otherwise) that the services or benefits are with re-
spect to bankruptcy relief under this title; and
‘‘(4) clearly and conspicuously using the fol-
lowing statement: ‘We are a debt relief agency. We
help people file for bankruptcy relief under the
Bankruptcy Code.’ or a substantially similar state-
ment.
‘‘(b)(1) An advertisement of bankruptcy assistance
services or of the benefits of bankruptcy directed to the
general public includes—
‘‘(A) descriptions of bankruptcy assistance in
connection with a chapter 13 plan whether or not
chapter 13 is specifically mentioned in such adver-
tisement; and
‘‘(B) statements such as ‘federally supervised
repayment plan’ or ‘Federal debt restructuring help’
119
or other similar statements that could lead a reason-
able consumer to believe that debt counseling was
being offered when in fact the services were directed
to providing bankruptcy assistance with a chapter
13 plan or other form of bankruptcy relief under
this title.
‘‘(2) An advertisement, directed to the general public,
indicating that the debt relief agency provides assistance
with respect to credit defaults, mortgage foreclosures, evic-
tion proceedings, excessive debt, debt collection pressure,
or inability to pay any consumer debt shall—
‘‘(A) disclose clearly and conspicuously in such
advertisement that the assistance may involve bank-
ruptcy relief under this title; and
‘‘(B) include the following statement: ‘We are a
debt relief agency. We help people file for bank-
ruptcy relief under the Bankruptcy Code,’ or a sub-
stantially similar statement.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 5 of title 11, United States Code, as
amended by this Act, is amended by inserting after the
item relating to section 527, the following:
‘‘528. Requirements for debt relief agencies.’’.
SEC. 230. GAO STUDY.
(a) STUDY.—Not later than 270 days after the date
of enactment of this Act, the Comptroller General of the
120
United States shall conduct a study of the feasibility, ef-
fectiveness, and cost of requiring trustees appointed under
title 11, United States Code, or the bankruptcy courts,
to provide to the Office of Child Support Enforcement
promptly after the commencement of cases by individual
debtors under such title, the names and social security
numbers of such debtors for the purposes of allowing such
Office to determine whether such debtors have out-
standing obligations for child support (as determined on
the basis of information in the Federal Case Registry or
other national database).
(b) REPORT.—Not later than 300 days after the date
of enactment of this Act, the Comptroller General shall
submit to the President pro tempore of the Senate and
the Speaker of the House of Representatives a report con-
taining the results of the study required by subsection (a).
SEC. 231. PROHIBITION ON DISCLOSURE OF IDENTITY OF
MINOR CHILDREN.
(a) PROHIBITION.—Title 11 of the United States
Code, as amended by section 106, is amended by inserting
after section 111 the following:
‘‘§ 112. Prohibition on disclosure of identity of minor
child
‘‘In a case under this title, the debtor may be re-
quired to provide information regarding a minor child in-
121
volved in matters under this title, but may not be required
to disclose in the public records in the case the name of
such minor child.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for chapter 1 of title 11, United States Code, is amended
by adding at the end the following:
‘‘112. Prohibition on disclosure of name of minor child.’’.
TITLE III—DISCOURAGING
BANKRUPTCY ABUSE
SEC. 301. REINFORCEMENT OF THE FRESH START.
Section 523(a)(17) of title 11, United States Code,
is amended—
(1) by striking ‘‘by a court’’ and inserting ‘‘on
a prisoner by any court’’;
(2) by striking ‘‘section 1915(b) or (f)’’ and in-
serting ‘‘subsection (b) or (f)(2) of section 1915’’;
and
(3) by inserting ‘‘(or a similar non-Federal
law)’’ after ‘‘title 28’’ each place it appears.
SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS.
Section 362(c) of title 11, United States Code, is
amended—
(1) in paragraph (1), by striking ‘‘and’’ at the
end;
(2) in paragraph (2), by striking the period at
the end and inserting a semicolon; and
122
(3) by adding at the end the following:
‘‘(3) if a single or joint case is filed by or
against an individual debtor under chapter 7, 11, or
13, and if a single or joint case of the debtor was
pending within the preceding 1-year period but was
dismissed, other than a case refiled under a chapter
other than chapter 7 after dismissal under section
707(b)—
‘‘(A) the stay under subsection (a) with re-
spect to any action taken with respect to a debt
or property securing such debt or with respect
to any lease shall terminate with respect to the
debtor on the 30th day after the filing of the
later case;
‘‘(B) upon motion by a party in interest
for continuation of the automatic stay and upon
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
123
‘‘(C) for purposes of subparagraph (B), a
case is presumptively filed not in good faith
(but such presumption may be rebutted by clear
and convincing evidence to the contrary)—
‘‘(i) as to all creditors, if—
‘‘(I) more than 1 previous case
under any of chapters 7, 11, and 13
in which the individual was a debtor
was pending within the preceding 1-
year period;
‘‘(II) a previous case under any
of chapters 7, 11, and 13 in which the
individual was a debtor was dismissed
within such 1-year period, after the
debtor failed to—
‘‘(aa) file or amend the peti-
tion or other documents as re-
quired by this title or the court
without substantial excuse (but
mere inadvertence or negligence
shall not be a substantial excuse
unless the dismissal was caused
by the negligence of the debtor’s
attorney);
124
‘‘(bb) provide adequate pro-
tection as ordered by the court;
or
‘‘(cc) perform the terms of a
plan confirmed by the court; or
‘‘(III) there has not been a sub-
stantial change in the financial or per-
sonal affairs of the debtor since the
dismissal of the next most previous
case under chapter 7, 11, or 13 or
any other reason to conclude that the
later case will be concluded—
‘‘(aa) if a case under chap-
ter 7, with a discharge; or
‘‘(bb) if a case under chap-
ter 11 or 13, with a confirmed
plan which will be fully per-
formed; and
‘‘(ii) as to any creditor that com-
menced an action under subsection (d) in
a previous case in which the individual was
a debtor if, as of the date of dismissal of
such case, that action was still pending or
had been resolved by terminating, condi-
125
tioning, or limiting the stay as to actions
of such creditor; and
‘‘(4)(A)(i) if a single or joint case is filed by or
against an individual debtor under this title, and if
2 or more single or joint cases of the debtor were
pending within the previous year but were dismissed,
other than a case refiled under section 707(b), the
stay under subsection (a) shall not go into effect
upon the filing of the later case; and
‘‘(ii) on request of a party in interest, the court
shall promptly enter an order confirming that no
stay is in effect;
‘‘(B) if, within 30 days after the filing of the
later case, a party in interest requests the court may
order the stay to take effect in the case as to any
or all creditors (subject to such conditions or limita-
tions as the court may impose), after notice and
hearing, only if the party in interest demonstrates
that the filing of the later case is in good faith as
to the creditors to be stayed;
‘‘(C) a stay imposed under subparagraph (B)
shall be effective on the date of entry of the order
allowing the stay to go into effect; and
‘‘(D) for purposes of subparagraph (B), a case
is presumptively not filed in good faith (but such
126
presumption may be rebutted by clear and con-
vincing evidence to the contrary)—
‘‘(i) as to all creditors if—
‘‘(I) 2 or more previous cases under
this title in which the individual was a
debtor were pending within the 1-year pe-
riod;
‘‘(II) a previous case under this title
in which the individual was a debtor was
dismissed within the time period stated in
this paragraph after the debtor failed to
file or amend the petition or other docu-
ments as required by this title or the court
without substantial excuse (but mere inad-
vertence or negligence shall not be sub-
stantial excuse unless the dismissal was
caused by the negligence of the debtor’s at-
torney), failed to pay adequate protection
as ordered by the court, or failed to per-
form the terms of a plan confirmed by the
court; or
‘‘(III) there has not been a substan-
tial change in the financial or personal af-
fairs of the debtor since the dismissal of
the next most previous case under this
127
title, or any other reason to conclude that
the later case will not be concluded, if a
case under chapter 7, with a discharge,
and if a case under chapter 11 or 13, with
a confirmed plan that will be fully per-
formed; or
‘‘(ii) as to any creditor that commenced an
action under subsection (d) in a previous case
in which the individual was a debtor if, as of
the date of dismissal of such case, such action
was still pending or had been resolved by termi-
nating, conditioning, or limiting the stay as to
action of such creditor.’’.
SEC. 303. CURBING ABUSIVE FILINGS.
(a) IN GENERAL.—Section 362(d) of title 11, United
States Code, is amended—
(1) in paragraph (2), by striking ‘‘or’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(4) with respect to a stay of an act against
real property under subsection (a), by a creditor
whose claim is secured by an interest in such real
estate, if the court finds that the filing of the bank-
128
ruptcy petition was part of a scheme to delay,
hinder, and defraud creditors that involved either—
‘‘(A) transfer of all or part ownership of,
or other interest in, the real property without
the consent of the secured creditor or court ap-
proval; or
‘‘(B) multiple bankruptcy filings affecting
the real property.
If recorded in compliance with applicable State laws gov-
erning notices of interests or liens in real property, an
order entered under this subsection shall be binding in any
other case under this title purporting to affect the real
property filed not later than 2 years after the date of entry
of such order by the court, except that a debtor in a subse-
quent case may move for relief from such order based
upon changed circumstances or for good cause shown,
after notice and a hearing. Any Federal, State, or local
governmental unit that accepts notices of interests or liens
in real property shall accept any certified copy of an order
described in this subsection for indexing and recording.’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, is amended by inserting after para-
graph (19), as added by this Act, the following:
‘‘(20) under subsection (a), of any act to en-
force any lien against or security interest in real
129
property following the entry of an order under sec-
tion 362(d)(4) as to that property in any prior bank-
ruptcy case for a period of 2 years after entry of
such an order, except that the debtor, in a subse-
quent case, may move the court for relief from such
order based upon changed circumstances or for
other good cause shown, after notice and a hearing;
‘‘(21) under subsection (a), of any act to en-
force any lien against or security interest in real
property—
‘‘(A) if the debtor is ineligible under sec-
tion 109(g) to be a debtor in a bankruptcy case;
or
‘‘(B) if the bankruptcy case was filed in
violation of a bankruptcy court order in a prior
bankruptcy case prohibiting the debtor from
being a debtor in another bankruptcy case;’’.
SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY
SECURITY.
Title 11, United States Code, is amended—
(1) in section 521(a) (as so designated by this
Act)—
(A) in paragraph (4), by striking ‘‘, and’’
at the end and inserting a semicolon;
130
(B) in paragraph (5), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(6) in a case under chapter 7 of this title in
which the debtor is an individual, not retain posses-
sion of personal property as to which a creditor has
an allowed claim for the purchase price secured in
whole or in part by an interest in that personal
property unless, in the case of an individual debtor,
the debtor, not later than 45 days after the first
meeting of creditors under section 341(a), either—
‘‘(A) enters into an agreement with the
creditor pursuant to section 524(c) of this title
with respect to the claim secured by such prop-
erty; or
‘‘(B) redeems such property from the secu-
rity interest pursuant to section 722 of this
title.
If the debtor fails to so act within the 45-day period re-
ferred to in paragraph (6), the stay under section 362(a)
of this title is terminated with respect to the personal
property of the estate or of the debtor which is affected,
such property shall no longer be property of the estate,
and the creditor may take whatever action as to such prop-
erty as is permitted by applicable nonbankruptcy law, un-
131
less the court determines on the motion of the trustee
brought before the expiration of such 45-day period, and
after notice and a hearing, that such property is of con-
sequential value or benefit to the estate, orders appro-
priate adequate protection of the creditor’s interest, and
orders the debtor to deliver any collateral in the debtor’s
possession to the trustee.’’; and
(2) in section 722, by inserting ‘‘in full at the
time of redemption’’ before the period at the end.
SEC. 305. RELIEF FROM THE AUTOMATIC STAY WHEN THE
DEBTOR DOES NOT COMPLETE INTENDED
SURRENDER OF CONSUMER DEBT COLLAT-
ERAL.
Title 11, United States Code, is amended—
(1) in section 362—
(A) in subsection (c), by striking ‘‘(e), and
(f)’’ inserting ‘‘(e), (f), and (h)’’;
(B) by redesignating subsection (h) as sub-
section (k); and
(C) by inserting after subsection (g) the
following:
‘‘(h)(1) In which the debtor is an individual, the stay
provided by subsection (a) is terminated with respect to
personal property of the estate or of the debtor securing
in whole or in part a claim, or subject to an unexpired
132
lease, and such personal property shall no longer be prop-
erty of the estate if the debtor fails within the applicable
time set by section 521(a)(2) of this title—
‘‘(A) to file timely any statement of intention
required under section 521(a)(2) of this title with
respect to that property or to indicate in that state-
ment that the debtor will either surrender the prop-
erty or retain it and, if retaining it, either redeem
the property pursuant to section 722 of this title, re-
affirm the debt it secures pursuant to section 524(c)
of this title, or assume the unexpired lease pursuant
to section 365(p) of this title if the trustee does not
do so, as applicable; and
‘‘(B) to take timely the action specified in that
statement of intention, as it may be amended before
expiration of the period for taking action, unless the
statement of intention specifies reaffirmation and
the creditor refuses to reaffirm on the original con-
tract terms.
‘‘(2) Paragraph (1) does not apply if the court deter-
mines, on the motion of the trustee filed before the expira-
tion of the applicable time set by section 521(a)(2), after
notice and a hearing, that such property is of consequen-
tial value or benefit to the estate, and orders appropriate
adequate protection of the creditor’s interest, and orders
133
the debtor to deliver any collateral in the debtor’s posses-
sion to the trustee. If the court does not so determine,
the stay provided by subsection (a) shall terminate upon
the conclusion of the proceeding on the motion.’’; and
(2) in section 521—
(A) in subsection (a)(2), as so designated
by this Act, by striking ‘‘consumer’’;
(B) in subsection (a)(2)(B), as so des-
ignated by this Act—
(i) by striking ‘‘forty-five days after
the filing of a notice of intent under this
section’’ and inserting ‘‘30 days after the
first date set for the meeting of creditors
under section 341(a) of this title’’; and
(ii) by striking ‘‘forty-five day’’ and
inserting ‘‘30-day’’;
(C) in subsection (a)(2)(C), as so des-
ignated by this Act, by inserting ‘‘, except as
provided in section 362(h) of this title’’ before
the semicolon; and
(D) by adding at the end the following:
‘‘(d) If the debtor fails timely to take the action speci-
fied in subsection (a)(6) of this section, or in paragraphs
(1) and (2) of section 362(h) of this title, with respect
to property which a lessor or bailor owns and has leased,
134
rented, or bailed to the debtor or as to which a creditor
holds a security interest not otherwise voidable under sec-
tion 522(f), 544, 545, 547, 548, or 549 of this title, noth-
ing in this title shall prevent or limit the operation of a
provision in the underlying lease or agreement which has
the effect of placing the debtor in default under such lease
or agreement by reason of the occurrence, pendency, or
existence of a proceeding under this title or the insolvency
of the debtor. Nothing in this subsection shall be deemed
to justify limiting such a provision in any other cir-
cumstance.’’.
SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT
IN CHAPTER 13.
(a) IN GENERAL.—Section 1325(a)(5)(B)(i) of title
11, United States Code, is amended to read as follows:
‘‘(i) the plan provides that—
‘‘(I) the holder of such claim retain
the lien securing such claim until the ear-
lier of—
‘‘(aa) the payment of the under-
lying debt determined under nonbank-
ruptcy law; or
‘‘(bb) discharge under section
1328; and
135
‘‘(II) if the case under this chapter is
dismissed or converted without completion
of the plan, such lien shall also be retained
by such holder to the extent recognized by
applicable nonbankruptcy law; and’’.
(b) RESTORING
THE FOUNDATION
FOR SECURED
CREDIT.—Section 1325(a) of title 11, United States Code,
is amended by adding at the end the following flush sen-
tence:
‘‘For purposes of paragraph (5), section 506 shall not
apply to a claim described in that paragraph if the creditor
has a purchase money security interest securing the debt
that is the subject of the claim, the debt was incurred
within the 5-year period preceding the filing of the peti-
tion, and the collateral for that debt consists of a motor
vehicle (as defined in section 30102 of title 49) acquired
for the personal use of the debtor, or if collateral for that
debt consists of any other thing of value, if the debt was
incurred during the 1-year period preceding that filing.’’.
(c) DEFINITIONS.—Section 101 of title 11, United
States Code, as amended by this Act, is amended—
(1) by inserting after paragraph (13) the fol-
lowing:
‘‘(13A) ‘debtor’s principal residence’—
136
‘‘(A) means a residential structure, includ-
ing incidental property, without regard to
whether that structure is attached to real prop-
erty; and
‘‘(B) includes an individual condominium
or cooperative unit, a mobile or manufactured
home, or trailer;’’; and
(2) by inserting after paragraph (27), the fol-
lowing:
‘‘(27A) ‘incidental property’ means, with re-
spect to a debtor’s principal residence—
‘‘(A) property commonly conveyed with a
principal residence in the area where the real
estate is located;
‘‘(B) all easements, rights, appurtenances,
fixtures, rents, royalties, mineral rights, oil or
gas rights or profits, water rights, escrow
funds, or insurance proceeds; and
‘‘(C) all replacements or additions;’’.
SEC. 307. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.
Section 522(b)(3)(A) of title 11, United States Code,
as so designated by this Act, is amended—
(1) by striking ‘‘180 days’’ and inserting ‘‘730
days’’; and
137
(2) by striking ‘‘, or for a longer portion of
such 180-day period than in any other place’’ and
inserting ‘‘or if the debtor’s domicile has not been
located at a single State for such 730-day period,
the place in which the debtor’s domicile was located
for 180 days immediately preceding the 730-day pe-
riod or for a longer portion of such 180-day period
than in any other place’’.
SEC. 308. RESIDENCY REQUIREMENT FOR HOMESTEAD EX-
EMPTION.
Section 522 of title 11, United States Code, is
amended—
(1) in subsection (b)(3)(A), as so designated by
this Act, by inserting ‘‘subject to subsections (o) and
(p),’’ before ‘‘any property’’; and
(2) by adding at the end the following:
‘‘(o) For purposes of subsection (b)(3)(A), and not-
withstanding subsection (a), the value of an interest in—
‘‘(1) real or personal property that the debtor
or a dependent of the debtor uses as a residence;
‘‘(2) a cooperative that owns property that the
debtor or a dependent of the debtor uses as a resi-
dence; or
‘‘(3) a burial plot for the debtor or a dependent
of the debtor,
138
shall be reduced to the extent that such value is attrib-
utable to any portion of any property that the debtor dis-
posed of in the 7-year period ending on the date of the
filing of the petition with the intent to hinder, delay, or
defraud a creditor and that the debtor could not exempt,
or that portion that the debtor could not exempt, under
subsection (b), if on such date the debtor had held the
property so disposed of.’’.
SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER
13 CASES.
(a) STOPPING ABUSIVE CONVERSIONS FROM CHAP-
TER 13.—Section 348(f)(1) of title 11, United States
Code, is amended—
(1) in subparagraph (A), by striking ‘‘and’’ at
the end;
(2) in subparagraph (B)—
(A) by striking ‘‘in the converted case,
with allowed secured claims’’ and inserting
‘‘only in a case converted to a case under chap-
ter 11 or 12, but not in a case converted to a
case under chapter 7, with allowed secured
claims in cases under chapters 11 and 12’’; and
(B) by striking the period and inserting ‘‘;
and’’; and
(3) by adding at the end the following:
139
‘‘(C) with respect to cases converted from chap-
ter 13—
‘‘(i) the claim of any creditor holding secu-
rity as of the date of the petition shall continue
to be secured by that security unless the full
amount of such claim determined under appli-
cable nonbankruptcy law has been paid in full
as of the date of conversion, notwithstanding
any valuation or determination of the amount
of an allowed secured claim made for the pur-
poses of the case under chapter 13; and
‘‘(ii) unless a prebankruptcy default has
been fully cured under the plan at the time of
conversion, in any proceeding under this title or
otherwise, the default shall have the effect given
under applicable nonbankruptcy law.’’.
(b) GIVING
DEBTORS
THE
ABILITY
TO
KEEP
LEASED PERSONAL PROPERTY BY ASSUMPTION.—Section
365 of title 11, United States Code, is amended by adding
at the end the following:
‘‘(p)(1) If a lease of personal property is rejected or
not timely assumed by the trustee under subsection (d),
the leased property is no longer property of the estate and
the stay under section 362(a) is automatically terminated.
140
‘‘(2)(A) In the case of an individual under chapter
7, the debtor may notify the creditor in writing that the
debtor desires to assume the lease. Upon being so notified,
the creditor may, at its option, notify the debtor that it
is willing to have the lease assumed by the debtor and
may condition such assumption on cure of any outstanding
default on terms set by the contract.
‘‘(B) If, not later than 30 days after notice is pro-
vided under subparagraph (A), the debtor notifies the les-
sor in writing that the lease is assumed, the liability under
the lease will be assumed by the debtor and not by the
estate.
‘‘(C) The stay under section 362 and the injunction
under section 524(a)(2) shall not be violated by notifica-
tion of the debtor and negotiation of cure under this sub-
section.
‘‘(3) In a case under chapter 11 in which the debtor
is an individual and in a case under chapter 13, if the
debtor is the lessee with respect to personal property and
the lease is not assumed in the plan confirmed by the
court, the lease is deemed rejected as of the conclusion
of the hearing on confirmation. If the lease is rejected,
the stay under section 362 and any stay under section
1301 is automatically terminated with respect to the prop-
erty subject to the lease.’’.
141
(c) ADEQUATE PROTECTION OF LESSORS AND PUR-
CHASE MONEY SECURED CREDITORS.—
(1) 
CONFIRMATION
OF
PLAN.—Section
1325(a)(5)(B) of title 11, United States Code, is
amended—
(A) in clause (i), by striking ‘‘and’’ at the
end;
(B) in clause (ii), by striking ‘‘or’’ at the
end and inserting ‘‘and’’; and
(C) by adding at the end the following:
‘‘(iii) if—
‘‘(I) property to be distributed pursu-
ant to this subsection is in the form of
periodic payments, such payments shall be
in equal monthly amounts; and
‘‘(II) the holder of the claim is se-
cured by personal property, the amount of
such payments shall not be less than an
amount sufficient to provide to the holder
of such claim adequate protection during
the period of the plan; or’’.
(2) PAYMENTS.—Section 1326(a) of title 11,
United States Code, is amended to read as follows:
‘‘(a)(1) Unless the court orders otherwise, the debtor
shall commence making payments not later than 30 days
142
after the date of the filing of the plan or the order for
relief, whichever is earlier, in the amount—
‘‘(A) proposed by the plan to the trustee;
‘‘(B) scheduled in a lease of personal property
directly to the lessor for that portion of the obliga-
tion that becomes due after the order for relief, re-
ducing the payments under subparagraph (A) by the
amount so paid and providing the trustee with evi-
dence of such payment, including the amount and
date of payment; and
‘‘(C) that provides adequate protection directly
to a creditor holding an allowed claim secured by
personal property to the extent the claim is attrib-
utable to the purchase of such property by the debt-
or for that portion of the obligation that becomes
due after the order for relief, reducing the payments
under subparagraph (A) by the amount so paid and
providing the trustee with evidence of such payment,
including the amount and date of payment.
‘‘(2) A payment made under paragraph (1)(A) shall
be retained by the trustee until confirmation or denial of
confirmation. If a plan is confirmed, the trustee shall dis-
tribute any such payment in accordance with the plan as
soon as is practicable. If a plan is not confirmed, the trust-
ee shall return any such payments not previously paid and
143
not yet due and owing to creditors pursuant to paragraph
(3) to the debtor, after deducting any unpaid claim al-
lowed under section 503(b).
‘‘(3) Subject to section 363, the court may, upon no-
tice and a hearing, modify, increase, or reduce the pay-
ments required under this subsection pending confirma-
tion of a plan.
‘‘(4) Not later than 60 days after the date of filing
of a case under this chapter, a debtor retaining possession
of personal property subject to a lease or securing a claim
attributable in whole or in part to the purchase price of
such property shall provide the lessor or secured creditor
reasonable evidence of the maintenance of any required
insurance coverage with respect to the use or ownership
of such property and continue to do so for so long as the
debtor retains possession of such property.’’.
SEC. 310. LIMITATION ON LUXURY GOODS.
Section 523(a)(2)(C) of title 11, United States Code,
is amended to read as follows:
‘‘(C)(i) for purposes of subparagraph
(A)—
‘‘(I) consumer debts owed to a single
creditor and aggregating more than $250
for luxury goods or services incurred by an
individual debtor on or within 90 days be-
144
fore the order for relief under this title are
presumed to be nondischargeable; and
‘‘(II) cash advances aggregating more
than $750 that are extensions of consumer
credit under an open end credit plan ob-
tained by an individual debtor on or within
70 days before the order for relief under
this title, are presumed to be non-
dischargeable; and
‘‘(ii) for purposes of this subparagraph—
‘‘(I) the term ‘extension of credit
under an open end credit plan’ means an
extension of credit under an open end
credit plan, within the meaning of the Con-
sumer Credit Protection Act (15 U.S.C.
1601 et seq.);
‘‘(II) the term ‘open end credit plan’
has the meaning given that term under
section 103 of Consumer Credit Protection
Act (15 U.S.C. 1602); and
‘‘(III) the term ‘luxury goods or serv-
ices’ does not include goods or services rea-
sonably necessary for the support or main-
tenance of the debtor or a dependent of the
debtor.’’.
146
(1) in section 727(a)(8), by striking ‘‘six’’ and
inserting ‘‘8’’; and
(2) in section 1328, by inserting after sub-
section (e) the following:
‘‘(f) Notwithstanding subsections (a) and (b), the
court shall not grant a discharge of all debts provided for
by the plan or disallowed under section 502 if the debtor
has received a discharge in any case filed under this title
within 5 years before the order for relief under this chap-
ter.’’.
SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND AN-
TIQUES.
(a) DEFINITION.—Section 522(f) of title 11, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘(4)(A) Subject to subparagraph (B), for purposes
of paragraph (1)(B), the term ‘household goods’ means—
‘‘(i) clothing;
‘‘(ii) furniture;
‘‘(iii) appliances;
‘‘(iv) 1 radio;
‘‘(v) 1 television;
‘‘(vi) 1 VCR;
‘‘(vii) linens;
‘‘(viii) china;
147
‘‘(ix) crockery;
‘‘(x) kitchenware;
‘‘(xi) educational materials and educational
equipment primarily for the use of minor dependent
children of the debtor, but only 1 personal computer
only if used primarily for the education or entertain-
ment of such minor children;
‘‘(xii) medical equipment and supplies;
‘‘(xiii) furniture exclusively for the use of minor
children, or elderly or disabled dependents of the
debtor; and
‘‘(xiv) personal effects (including the toys and
hobby equipment of minor dependent children and
wedding rings) of the debtor and the dependents of
the debtor.
‘‘(B) The term ‘household goods’ does not include—
‘‘(i) works of art (unless by or of the debtor or
the dependents of the debtor);
‘‘(ii) electronic entertainment equipment (except
1 television, 1 radio, and 1 VCR);
‘‘(iii) items acquired as antiques;
‘‘(iv) jewelry (except wedding rings); and
‘‘(v) a computer (except as otherwise provided
for in this section), motor vehicle (including a trac-
tor or lawn tractor), boat, or a motorized rec-
148
reational device, conveyance, vehicle, watercraft, or
aircraft.’’.
(b) STUDY.—Not later than 2 years after the date
of enactment of this Act, the Director of the Executive
Office for United States Trustees shall submit a report
to the Committee on the Judiciary of the Senate and the
Committee on the Judiciary of the House of Representa-
tives containing its findings regarding utilization of the
definition of household goods, as defined in section
522(f)(4) of title 11, United States Code, as added by this
section, with respect to the avoidance of nonpossessory,
nonpurchase money security interests in household goods
under section 522(f)(1)(B) of title 11, United States Code,
and the impact that section 522(f)(4) of that title, as
added by this section, has had on debtors and on the bank-
ruptcy courts. Such report may include recommendations
for amendments to section 522(f)(4) of title 11, United
States Code, consistent with the Director’s findings.
SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE
DEBTS.
(a) IN GENERAL.—Section 523(a) of title 11, United
States Code, is amended by inserting after paragraph (14)
the following:
149
‘‘(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.’’.
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 this Act, is amended—
(1) in subsection (c)—
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’;
150
(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) If, within the 90 days prior to the date of
the filing of a petition in a voluntary case, the cred-
itor supplied the debtor in at least 2 communications
sent to the debtor with the current account number
of the debtor and the address at which the creditor
wishes to receive correspondence, then the debtor
shall send any notice required under this title to the
address provided by the creditor and such notice
shall include the account number. In the event the
creditor would be in violation of applicable nonbank-
ruptcy law by sending any such communication with-
in such 90-day period and if the creditor supplied
the debtor in the last 2 communications with the
current account number of the debtor and the ad-
dress at which the creditor wishes to receive cor-
respondence, then the debtor shall send any notice
required under this title to the address provided by
the creditor and such notice shall include the ac-
count number.’’; and
(2) by adding at the end the following:
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‘‘(e) At any time, a creditor, in a case of an individual
debtor under chapter 7 or 13, may file with the court and
serve on the debtor a notice of the address to be used to
notify the creditor in that case. Five days after receipt
of such notice, if the court or the debtor is required to
give the creditor notice, such notice shall be given at that
address.
‘‘(f) An entity may file with the court a notice stating
its address for notice in cases under chapters 7 and 13.
After 30 days following the filing of such notice, any notice
in any case filed under chapter 7 or 13 given by the court
shall be to that address unless specific notice is given
under subsection (e) with respect to a particular case.
‘‘(g)(1) Notice given to a creditor other than as pro-
vided in this section shall not be effective notice until that
notice has been brought to the attention of the creditor.
If the creditor designates a person or department to be
responsible for receiving notices concerning bankruptcy
cases and establishes reasonable procedures so that bank-
ruptcy notices received by the creditor are to be delivered
to such department or person, notice shall not be consid-
ered to have been brought to the attention of the creditor
until received by such person or department.
‘‘(2) No sanction under section 362(k) or any other
sanction that a court may impose on account of violations
152
of the stay under section 362(a) or failure to comply with
section 542 or 543 may be imposed on any action of the
creditor unless the action takes place after the creditor
has received notice of the commencement of the case effec-
tive under this section.’’.
(b) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, as amended by this Act, is
amended—
(1) in subsection (a), as so designated by this
Act, by striking paragraph (1) and inserting the fol-
lowing:
‘‘(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 applicable, a
certificate—
‘‘(I) of an attorney whose name
is on the petition as the attorney for
the debtor or any bankruptcy petition
preparer signing the petition under
153
section 110(b)(1) indicating that such
attorney or bankruptcy petition pre-
parer delivered to the debtor any no-
tice required by section 342(b); or
‘‘(II) if no attorney for the debt-
or is indicated and no bankruptcy pe-
tition preparer signed the petition, of
the debtor that such notice was ob-
tained and read by the debtor;
‘‘(iv) copies of all payment advices or
other evidence of payment, if any, received
by the debtor from any employer of the
debtor in the period 60 days before the fil-
ing of the petition;
‘‘(v) a statement of the amount of
monthly net income, itemized to show how
the amount is calculated; and
‘‘(vi) a statement disclosing any rea-
sonably anticipated increase in income or
expenditures over the 12-month period fol-
lowing the date of filing;’’; and
(2) by adding at the end the following:
‘‘(e)(1) At any time, a creditor, in the case of an indi-
vidual under chapter 7 or 13, may file with the court no-
tice that the creditor requests the petition, schedules, and
154
a statement of affairs filed by the debtor in the case, and
the court shall make those documents available to the
creditor who requests those documents.
‘‘(2)(A) The debtor shall provide either a tax return
or transcript at the election of the debtor, for the latest
taxable period prior to filing for which a tax return has
been or should have been filed, to the trustee, not later
than 7 days before the date first set for the first meeting
of creditors, or the case shall be dismissed, unless the
debtor demonstrates that the failure to file a return as
required is due to circumstances beyond the control of the
debtor.
‘‘(B) If a creditor has requested a tax return or tran-
script referred to in subparagraph (A), the debtor shall
provide such tax return or transcript to the requesting
creditor at the time the debtor provides the tax return or
transcript to the trustee, or the case shall be dismissed,
unless the debtor demonstrates that the debtor is unable
to provide such information due to circumstances beyond
the control of the debtor.
‘‘(3)(A) At any time, a creditor in a case under chap-
ter 13 may file with the court notice that the creditor re-
quests the plan filed by the debtor in the case.
‘‘(B) The court shall make such plan available to the
creditor who request such plan—
155
‘‘(i) at a reasonable cost; and
‘‘(ii) not later than 5 days after such request.
‘‘(f) An individual debtor in a case under chapter 7,
11, or 13 shall file with the court at the request of any
party in interest—
‘‘(1) at the time filed with the taxing authority,
all tax returns required under applicable law, includ-
ing any schedules or attachments, with respect to
the period from the commencement of the case until
such time as the case is closed;
‘‘(2) at the time filed with the taxing authority,
all tax returns required under applicable law, includ-
ing any schedules or attachments, that were not
filed with the taxing authority when the schedules
under subsection (a)(1) were filed with respect to
the period that is 3 years before the order of relief;
‘‘(3) any amendments to any of the tax returns,
including schedules or attachments, described in
paragraph (1) or (2); and
‘‘(4) in a case under chapter 13, a statement
subject to the penalties of perjury by the debtor of
the debtor’s income and expenditures in the pre-
ceding tax year and monthly income, that shows how
the amounts are calculated—
156
‘‘(A) beginning on the date that is the
later of 90 days after the close of the debtor’s
tax year or 1 year after the order for relief, un-
less a plan has been confirmed; and
‘‘(B) thereafter, on or before the date that
is 45 days before each anniversary of the con-
firmation of the plan until the case is closed.
‘‘(g)(1) A statement referred to in subsection (f)(4)
shall disclose—
‘‘(A) the amount and sources of income of the
debtor;
‘‘(B) the identity of any person responsible with
the debtor for the support of any dependent of the
debtor; and
‘‘(C) the identity of any person who 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 subsection (e)(2)(A)
and subsection (f) shall be available to the United States
trustee, any bankruptcy administrator, any trustee, and
any party in interest for inspection and copying, subject
to the requirements of subsection (h).
‘‘(h)(1) Not later than 180 days after the date of en-
actment of the Bankruptcy Abuse Prevention and Con-
157
sumer Protection Act of 2001, the Director of the Admin-
istrative Office of the United States Courts shall establish
procedures for safeguarding the confidentiality of any tax
information required to be provided under this section.
‘‘(2) The procedures under paragraph (1) shall in-
clude restrictions on creditor access to tax information
that is required to be provided under this section.
‘‘(3) Not later than 1 year and 180 days after the
date of enactment of the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2001, the Director of the
Administrative Office of the United States Courts shall
prepare and submit to Congress a report that—
‘‘(A) assesses the effectiveness of the proce-
dures under paragraph (1); and
‘‘(B) if appropriate, includes proposed legisla-
tion to—
‘‘(i) further protect the confidentiality of
tax information; and
‘‘(ii) provide penalties for the improper use
by any person of the tax information required
to be provided under this section.
‘‘(i) If requested by the United States trustee or a
trustee serving in the case, the debtor shall provide—
‘‘(1) a document that establishes the identity of
the debtor, including a driver’s license, passport, or