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 (15 U.S.C. 1601 et seq.),
then—
‘‘(I) the annual percentage rate deter-
mined under paragraphs (5) and (6) of
section 127(b) of the Truth in Lending Act
(15 U.S.C. 1637(b)(5) and (6)), as appli-
cable, as disclosed to the debtor in the
most recent periodic statement prior to the
agreement or, if no such periodic state-
ment has been provided the debtor during
the prior 6 months, the annual percentage
rate as it would have been so disclosed at
the time the disclosure 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 to the
debtor, or if different simple interest rates
apply to different balances, the simple in-
terest rate applicable to each such balance,
identifying the amount of each such bal-
ance included in the amount reaffirmed, or
‘‘(III) if the entity making the disclo-
sure elects, to disclose the annual percent-
age rate under subclause (I) and the sim-
ple interest rate under subclause (II);
‘‘(ii) if, at the time the petition is filed, the
debt is closed end credit as defined under the
Truth in Lending Act (15 U.S.C. 1601 et seq.),
then—
‘‘(I) the annual percentage rate under
section 128(a)(4) of the Truth in Lending
Act (15 U.S.C. 1638(a)(4)), as disclosed to
the debtor in the most recent disclosure
statement given the debtor prior to the re-
affirmation agreement with respect to the
debt, or, if no such disclosure statement
was provided the debtor, the annual per-
centage rate as it would have been so dis-
closed at the time the disclosure statement
is given the debtor, or to the extent this
annual percentage rate is not readily avail-
able 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 (15 U.S.C. 1601 et seq.), by stating ‘The inter-
est 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
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 reaffir-
mation 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 re-
affirmation 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 (12 U.S.C.
461(b)(1)(A)(iv)), the statement of support of the reaffir-
mation agreement, which the debtor shall sign and date
prior to filing with the court, shall consist of the following:
‘‘ ‘I believe this agreement is in my financial interest.
I can afford to make the payments on the reaffirmed debt.
I received a copy of the Reaffirmation Disclosure State-
ment in Part A and a completed and signed reaffirmation
agreement.’
‘‘(7) The motion, which may be used if approval of
the agreement by the court is required in order for it to
be effective and shall be signed and dated by the moving
party, shall consist of the following:
‘‘ ‘Part E: Motion for Court Approval (To be com-
pleted only where debtor is not represented by an attor-
ney.). I (we), the debtor, affirm the following to be true
and correct:
‘‘ ‘I am not represented by an attorney in connection
with this reaffirmation agreement.
‘‘ ‘I believe this agreement is in my best interest
based on the income and expenses I have disclosed in my
Statement in Support of this reaffirmation agreement
above, and because (provide any additional relevant rea-
sons the court should consider):
‘‘ ‘Therefore, I ask the court for an order approving
this reaffirmation agreement.’.
‘‘(8) The court order, which may be used to approve
a reaffirmation, shall consist of the following:
‘‘ ‘Court Order: The court grants the debtor’s motion
and approves the reaffirmation agreement described
above.’.
‘‘(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 INVESTIGATION—
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 (42
U.S.C. 666(a)(16));
‘‘(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 (42 U.S.C. 666(a)(7));
‘‘(F) the interception of tax refunds, as
specified in sections 464 and 466(a)(3) of the
Social Security Act (42 U.S.C. 664 and
666(a)(3)) or under an analogous State law; or
‘‘(G) the enforcement of medical obliga-
tions as specified under title IV of the Social
Security Act (42 U.S.C. 601 et seq.);’’.
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;’’;
(B) in paragraph (15)—
(i) by inserting ‘‘to a spouse, former
spouse, or child of the debtor and’’ before
‘‘not of the kind’’;
(ii) by inserting ‘‘or’’ after ‘‘court of
record,’’; and
(iii) by striking ‘‘unless—’’ and all
that follows through the end of the para-
graph and inserting a semicolon; and
(C) by striking paragraph (18); and
(2) in subsection (c), by striking ‘‘(6), or (15)’’
each place it appears and inserting ‘‘or (6)’’.
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.
(a) CONFIRMATION OF PLAN UNDER CHAPTER 12.—
Section 1225(b)(2)(A) of title 11, United States Code, is
amended by inserting ‘‘or for a domestic support obliga-
tion that first becomes payable after the date on which
the petition is filed’’ after ‘‘dependent of the debtor’’.
(b) CONFIRMATION OF PLAN UNDER CHAPTER 13.—
Section 1325(b)(2)(A) of title 11, United States Code, is
amended by inserting ‘‘or for a domestic support obliga-
tion that first becomes payable after the date on which
the petition is filed’’ after ‘‘dependent of the debtor’’.
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 (42 U.S.C. 664, 666) for the State in which the
holder resides for assistance in collecting child sup-
port 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 (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 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 (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 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 ‘‘the attorney for the debtor or
an employee of such attorney under the direct super-
vision 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
‘‘(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’’;
102
section 403(b), of the Internal Revenue Code of
1986 constitutes a claim or a debt under this title.’’.
(d) PLAN CONTENTS.—Section 1322 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(f) A plan may not materially alter the terms of a
loan described in section 362(b)(19) and any amounts re-
quired to repay such loan shall not constitute ‘disposable
income’ under section 1325.’’.
(e) ASSET LIMITATION.—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