(2) TRUSTEE AS LIEN CREDITOR AND AS SUC-
CESSOR TO CERTAIN CREDITORS AND PURCHASERS.—
Section 544(b) of title 11, United States Code, is
amended—
(A) by striking ‘‘(b) The trustee’’ and in-
serting ‘‘(b)(1) Except as provided in paragraph
(2), the trustee’’; and
(B) by adding at the end the following:
‘‘(2) Paragraph (1) shall not apply to a transfer of
a charitable contribution (as defined in section 548(d)(3)
of this title) that is not covered under section 548(a)(1)(B)
of this title by reason of section 548(a)(2) of this title. Any
claim by any person to recover a transferred contribution
described in the preceding sentence under Federal or State
law in a Federal or State court shall be preempted by the
commencement of the case.’’.
(3) CONFORMING AMENDMENTS.—Section 546 of
title 11, United States Code, is amended—
(A)in subsection (e)—
(i) by striking ‘‘548(a)(2)’’ and insert-
ing ‘‘548(a)(1)(B)’’; and
(ii) by striking ‘‘548(a)(1)’’ and insert-
ing ‘‘548(a)(1)(A)’’;
(B) in subsection (f)—
(i) by striking ‘‘548(a)(2)’’ and insert-
ing ‘‘548(a)(1)(B)’’; and
(ii) by striking ‘‘548(a)(1)’’ and insert-
ing ‘‘548(a)(1)(A)’’; and
(C) in the first subsection (g)—
(i) by striking ‘‘section 548(a)(1)’’ and
inserting ‘‘section 548(a)(1)(A)’’; and
(ii) by striking ‘‘548(a)(2)’’ and insert-
ing ‘‘548(a)(1)(B)’’.
(c) TREATMENT OF POST-PETITION CHARITABLE CON-
TRIBUTIONS UNDER CHAPTER 7.—Section 707 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(c) In making a determination whether to dismiss a
case under this section, the court may not take into consid-
eration whether a debtor has made, or continues to make,
charitable contributions (that meet the definition of ‘chari-
table contribution’ under section 548(d)(3)) to any qualified
religious or charitable entity or organization (as defined
in section 548(d)(4)).’’.
(d) TREATMENT OF POST-PETITION CHARITABLE CON-
TRIBUTIONS UNDER CHAPTER 13.—Section 111 of title 11,
United States Code, as added by section 102, is amended
by adding at the end the following:
‘‘(c) For purposes of subsection (a), charitable con-
tributions (that meet the definition of ‘charitable contribu-
tion’ under section 548(d)(3)) to any qualified religious or
charitable entity or organization (defined in section
548(d)(4)), but not to exceed 15 percent of the debtor’s gross
income for the year in which such contributions are made,
shall be considered to be additional expenses of the debtor
required by extraordinary circumstances.’’.
(e) RULE OF CONSTRUCTION.—Nothing in the amend-
ments made by this section is intended to limit the applica-
bility of the Religious Freedom Restoration Act of 1993 (42
U.S.C. 2002bb et seq.).
SEC. 119. REINFORCE THE FRESH START.
(a) RESTORATION OF AN EFFECTIVE DISCHARGE.—
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.
(b) PROTECTION OF RETIREMENT FUNDS IN BANK-
RUPTCY.—Section 522 of title 11, United States Code, is
amended—
(1) in subsection (b)(2)—
(A) in subparagraph (A) by striking ‘‘and’’
at the end;
(B) in subparagraph (B) by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(C) retirement funds to the extent exempt from
taxation under section 401, 403, 408, 414, 457, or
501(a) of the Internal Revenue Code of 1986.’’; and
(2) in subsection (d) by adding at the end the
following:
‘‘(12) Retirement funds to the extent exempt
from taxation under 401, 403, 408, 414, 457, or
501(a) of the Internal Revenue Code of 1986.’’.
(c) EFFECTIVE PROTECTION FOR UTILITY SERVICE IN
THE WAKE OF DEREGULATION.—Section 366 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(c) For the purposes of this section, the term ‘utility’
includes any provider of gas, electric, telephone, tele-
communication, cable television, satellite communication,
water, or sewer service, whether or not such service is a reg-
ulated monopoly.’’.
SEC. 119A. CHAPTER 11 DISCHARGE OF DEBTS ARISING
FROM TOBACCO-RELATED DEBTS.
Section 1141(d) of title 11, United States Code, is
amended by adding at the end the following:
‘‘(5) The confirmation of a plan does not discharge a
debtor that is a corporation from any debt arising from
a judicial, administrative, or other action or proceeding
that is—
‘‘(A) related to the consumption or consumer
purchase of a tobacco product; and
‘‘(B) based in whole or in part on false pretenses,
a false representation, or actual fraud.’’.
Subtitle C—Adequate Protections
for Secured Creditors
SEC. 121. 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
(3) by adding at the end the following new para-
graphs:
‘‘(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 that debtor was
pending within the previous 1-year period but was
dismissed, other than a case refiled under a chapter
other than chapter 7 after dismissal under section
707(b) of this title, the stay under subsection (a) with
respect to any action taken with respect to a debt or
property securing such debt or with respect to any
lease will terminate with respect to the debtor on the
30th day after the filing of the later case. If a party
in interest requests, the court may extend the stay in
particular cases as to any or all creditors (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 demonstrates that the filing of the later
case is in good faith as to the creditors to be stayed.
A case is presumptively filed not in good faith (but
such presumption may be rebutted by clear and con-
vincing evidence to the contrary)—
‘‘(A) as to all creditors if—
‘‘(i) more than 1 previous case under
any of chapters 7, 11, or 13 in which the
individual was a debtor was pending with-
in such 1-year period;
‘‘(ii) a previous case under any of
chapters 7, 11, or 13 in which the individ-
ual was a debtor was dismissed within such
1-year period, after the debtor failed to file
or amend the petition or other documents as
required by this title or the court without
substantial excuse (but mere inadvertence or
negligence shall not be substantial excuse
unless the dismissal was caused by the neg-
ligence of the debtor’s attorney), failed to
provide adequate protection as ordered by
the court, or failed to perform the terms of
a plan confirmed by the court; or
‘‘(iii) there has not been a substantial
change in the financial or personal affairs
of the debtor since the dismissal of the next
most previous case under any of chapters 7,
11, or 13 of this title, or any other reason
to conclude that the later case will be con-
cluded, if a case under chapter 7 of this
title, with a discharge, and if a chapter 11
or 13 case, a confirmed plan which will be
fully performed;
‘‘(B) 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 that case, that action was
still pending or had been resolved by terminat-
ing, conditioning, or limiting the stay as to ac-
tions of that creditor.
‘‘(4) 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 that debtor were
pending within the previous year but were dismissed,
other than a case refiled under section 707(b) of this
title, the stay under subsection (a) will not go into ef-
fect upon the filing of the later case. On request of a
party in interest, the court shall promptly enter an
order confirming that no stay is in effect. If a party
in interest requests within 30 days of the filing of the
later case, the court may order the stay to take effect
in the case as to any or all creditors (subject to such
conditions or limitations 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. A stay im-
posed pursuant to the preceding sentence will be effec-
tive on the date of entry of the order allowing the stay
to go into effect. A case is presumptively not filed in
good faith (but such presumption may be rebutted by
clear and convincing evidence to the contrary)—
‘‘(A) 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 dis-
missed within the time period stated in this
paragraph after the debtor failed to file or
amend the petition or other documents as
required by this title or the court without
substantial excuse (but mere inadvertence or
negligence shall not be substantial excuse
unless the dismissal was caused by the neg-
ligence of the debtor’s attorney), failed to
pay adequate protection as ordered by the
court, or failed to perform the terms of a
plan confirmed by the court; or
‘‘(iii) there has not been a substantial
change in the financial or personal affairs
of the debtor since the dismissal of the next
most previous case under this title, or any
other reason to conclude that the later case
will not be concluded, if a case under chap-
ter 7, with a discharge, and if a case under
chapter 11 or 13, with a confirmed plan
that will be fully performed; or
‘‘(B) 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 that case, that action was
still pending or had been resolved by terminat-
ing, conditioning, or limiting the stay as to ac-
tion of that creditor.
‘‘(5)(A) If a request is made for relief from the
stay under subsection (a) with respect to real or per-
sonal property of any kind, and such request is grant-
ed in whole or in part, the court may order in addi-
tion that the relief so granted shall be in rem either
for a definite period not less than 1 year or indefi-
nitely. After the issuance of such an order, the stay
under subsection (a) shall not apply to any property
subject to such an in rem order in any case of the
debtor under this title. If such an order so provides,
such stay shall also not apply in any pending or
later-filed case of any entity under this title that
claims or has an interest in the subject property other
than those entities identified in the court’s order.
‘‘(B) The court shall cause any order entered
pursuant to this paragraph with respect to real prop-
erty to be recorded in the applicable real property
records, which recording shall constitute notice to all
parties having or claiming an interest in such real
property for purpose of this section.
‘‘(6) For the purposes of this section, a case is
pending from the time of the order for relief until the
case is closed.’’.
SEC. 122. DEFINITION OF HOUSEHOLD GOODS.
Section 101 of title 11, United States Code, is amended
by inserting after paragraph (27) the following:
‘‘(27A) ‘household goods’ has the meaning given
such term in the Trade Regulation Rule on Credit
Practices promulgated by the Federal Trade Commis-
sion (16 C.F.R. 444.1(i)), as in effect on the effective
date of this paragraph;’’.
SEC. 123. DEBTOR RETENTION OF PERSONAL PROPERTY
SECURITY.
Title 11, United States Code, is amended—
(1) in section 521—
(A) in paragraph (4) by striking ‘‘and’’ at
the end;
(B) in paragraph (5) by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(6) in an individual case under chapter 7 of
this title, not retain possession of personal property
as to which a creditor has an allowed claim for the
purchase price secured in whole or in part by an in-
terest in that personal property unless, in the case of
an individual debtor, the debtor takes 1 of the follow-
ing actions within 30 days after the first meeting of
creditors under section 341(a)—
‘‘(A) enters into a reaffirmation agreement
with the creditor pursuant to section 524(c) of
this title with respect to the claim secured by
such property; 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 30-day period,
the personal property affected shall no longer be prop-
erty of the estate, and the creditor may take whatever
action as to such property as is permitted by applica-
ble nonbankruptcy law, unless the court determines on
the motion of the trustee, and after notice and a hear-
ing, that such property is of consequential value or
benefit to the estate.’’; and
(2) in section 722 by inserting ‘‘in full at the
time of redemption’’ before the period at the end.
SEC. 124. RELIEF FROM STAY WHEN THE DEBTOR DOES
NOT COMPLETE INTENDED SURRENDER OF
CONSUMER DEBT COLLATERAL.
Title 11, United States Code, is amended as follows—
(1) in section 362—
(A) by striking ‘‘(e), and (f)’’ in subsection
(c) and inserting in lieu thereof ‘‘(e), (f), and
(h)’’; and
(B) by redesignating subsection (h) as sub-
section (i) and by inserting after subsection (g)
the following:
‘‘(h) In an individual case pursuant to chapter 7, 11,
or 13 the stay provided by subsection (a) is terminated with
respect to property of the estate securing in whole or in
part a claim, or subject to an unexpired lease, if the debtor
fails within the applicable time set by section 521(a)(2) of
this title—
‘‘(1) to file timely any statement of intention re-
quired under section 521(a)(2) of this title with re-
spect to that property or to indicate therein that the
debtor will either surrender the property or retain it
and, if retaining it, either redeem the property pursu-
ant to section 722 of this title, reaffirm the debt it se-
cures pursuant to section 524(c) of this title, or as-
sume the unexpired lease pursuant to section 365(p)
of this title if the trustee does not do so, as applicable;
or
‘‘(2) 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 contract
terms;
unless the court determines on the motion of the trustee,
and after notice and a hearing, that such property is of
consequential value or benefit to the estate.’’;
(2) in section 521, as amended by sections 104,
406, and 407—
(A) in paragraph (2) by striking ‘‘con-
sumer’’;
(B) in paragraph (2)(B)—
(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)’’; and
(ii) by striking ‘‘forty-five day’’ the
second place it appears and inserting ‘‘30-
day’’;
(C) in paragraph (2)(C) by inserting ‘‘ex-
cept as provided in section 362(h)’’ before the
semicolon; and
(D) by adding at the end the following:
‘‘(h) 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,
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, nothing in this title
shall prevent or limit the operation of a provision in the
underlying lease or agreement which has the effect of plac-
ing the debtor in default under such lease or agreement by
reason of the occurrence, pendency, or existence of a pro-
ceeding under this title or the insolvency of the debtor. Noth-
ing in this subsection shall be deemed to justify limiting
such a provision in any other circumstance.’’.
SEC. 125. GIVING SECURED CREDITORS FAIR TREATMENT
IN CHAPTER 13.
Section 1325(a)(5)(B)(i) of title 11, United States
Code, is amended to read as follows:
‘‘(i) the plan provides that the holder of
such claim retain the lien securing such claim
until the earlier of payment of the underlying
debt determined under nonbankruptcy law or
discharge under section 1328, and that 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 rec-
ognized by applicable nonbankruptcy law; and’’.
SEC. 126. PROMPT RELIEF FROM STAY IN INDIVIDUAL
CASES.
Section 362(e) of title 11, United States Code, is
amended by inserting at the end the following:
‘‘Notwithstanding the foregoing, in the case of an individual
filing under chapter 7, 11, or 13, the stay under subsection
(a) shall terminate 60 days after a request under subsection
(d) of this section, unless—
‘‘(1) a final decision is rendered by the court
within such 60-day period; or
‘‘(2) such 60-day period is extended either by
agreement of all parties in interest or by the court for
a specific time which the court finds is required by
compelling circumstances.’’.
SEC. 127. STOPPING ABUSIVE CONVERSIONS FROM CHAP-
TER 13.
Section 348(f)(1) of title 11, United States Code, is
amended—
(1) by striking in subparagraph (B) ‘‘in the con-
verted case, with allowed secured claims’’ and insert-
ing in lieu thereof ‘‘only in a case converted to chap-
ter 11 or 12 but not in one converted to chapter 7,
with allowed secured claims in cases under chapters
11 and 12’’; and
(2) in subparagraph (A) by striking ‘‘and’’ at
the end;
(3) in subparagraph (B) by striking the period
and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(C) with respect to cases converted from chapter
13, the claim of any creditor holding security as of
the date of the petition shall continue to be secured
by that security unless the full amount of that claim
determined under applicable nonbankruptcy law has
been paid in full as of the date of conversion, notwith-
standing any valuation or determination of the
amount of an allowed secured claim made for the
purposes of the case under chapter of this title. Unless
a prebankruptcy default has been fully cured pursu-
ant to the plan at the time of conversion, in any pro-
ceeding under this title or otherwise, the default shall
have the effect given under applicable nonbankruptcy
law.’’.
SEC. 128. RESTRAINING ABUSIVE PURCHASES ON SECURED
CREDIT.
Section 506 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(e) In an individual case under chapter 7, 11, 12,
or 13—
‘‘(1) subsection (a) shall not apply to an allowed
claim to the extent attributable in whole or in part
to the purchase price of personal property acquired by
the debtor within 180 days of the filing of the peti-
tion, except for the purpose of applying paragraph
(3) of this subsection;
‘‘(2) if such allowed claim attributable to the
purchase price is secured only by the personal prop-
erty so acquired, the value of the personal property
and the amount of the allowed secured claim shall be
the sum of the unpaid principal balance of the pur-
chase price and accrued and unpaid interest and
charges at the contract rate;
‘‘(3) if such allowed claim attributable to the
purchase price is secured by the personal property so
acquired and other property, the value of the security
may be determined under subsection (a), but the value
of the security and the amount of the allowed secured
claim shall be not less than the unpaid principal bal-
ance of the purchase price of the personal property
acquired and unpaid interest and charges at the con-
tract rate; and
‘‘(4) in any subsequent case under this title that
is filed by or against the debtor in the 2-year period
beginning on the date the petition is filed in the
original case, the value of the personal property and
the amount of the allowed secured claim shall be
deemed to be not less than the amount provided under
paragraphs (2) and (3).’’.
SEC. 129. FAIR VALUATION OF COLLATERAL.
Section 506(a) of title 11, United States Code, is
amended by adding at the end the following:
‘‘In the case of an individual debtor under chapters 7 and
13, such value with respect to personal property securing
an allowed claim shall be determined based on the replace-
ment value of such property as of the date of filing the peti-
tion without deduction for costs of sale or marketing. With
respect to property acquired for personal, family, or house-
hold purpose, replacement value shall mean the price a re-
tail merchant would charge for property of that kind con-
sidering the age and condition of the property at the time
value is determined.’’.
SEC. 130. PROTECTION OF HOLDERS OF CLAIMS SECURED
BY DEBTOR’S PRINCIPAL RESIDENCE.
Title 11, United States Code, is amended—
(1) in section 101 by inserting after paragraph
(13) the following:
‘‘(13A) ‘debtor’s principal residence’ means a
residential structure including incidental property
when the structure contains 1 to 4 units, whether or
not that structure is attached to real property, and
includes, without limitation, an individual con-
dominium or cooperative unit or mobile or manufac-
tured home or trailer;
‘‘(13B) ‘incidental property’ means property in-
cidental to such residence including, without limita-
tion, property commonly conveyed with a principal
residence where the real estate is located, window
treatments, carpets, appliances and equipment located
in the residence, and easements, appurtenances, fix-
tures, rents, royalties, mineral rights, oil and gas
rights, escrow funds and insurance proceeds;’’;
(2) in section 362(b)—
(A) in paragraph (17) by striking ‘‘or’’ at
the end thereof;
(B) in paragraph (18) by striking the pe-
riod at the end and inserting ‘‘; or’’; and
(C) by inserting after paragraph (18) the
following:
‘‘(19) under subsection (a), until a prepetition
default is cured fully in a case under chapter 13 of
this title case by actual payment of all arrears as re-
quired by the plan, of the postponement, continuation
or other similar delay of a prepetition foreclosure pro-
ceeding or sale in accordance with applicable non-
bankruptcy law, but nothing herein shall imply that
such postponement, continuation or other similar
delay is a violation of the stay under subsection (a).’’;
and
(3) by amending section 1322(b)(2) to read as
follows:
‘‘(2) modify the rights of holders of secured
claims, other than a claim secured primarily by a se-
curity interest in property used as the debtor’s prin-
cipal residence at any time during 180 days prior to
the filing of the petition, or of holders of unsecured
claims, or leave unaffected the rights of holders of any
class of claims;’’.
SEC. 131. AIRCRAFT EQUIPMENT AND VESSELS.
Section 1110(a)(1) of title 11, United States Code, is
amended—
(1) in subparagraph (A) by striking ‘‘that be-
come due on or after the date of the order’’;
(2) in subparagraph (B)—
(A) in clause (i) by striking ‘‘and’’ at the
end; and
(B) in clause (ii)—
(i) by inserting ‘‘and within such 60-
day period’’ after ‘‘order’’; and
(ii) in subclause (II) by striking the
period at the end and inserting ‘‘; and’’;
and
(3) by adding at the end the following:
‘‘(iii) that occurs after the date of the order
and such 60-day period is cured in accordance
with the terms of such security agreement, lease,
or conditional sale contract.’’.
Subtitle D—Adequate Protections
for Unsecured Creditors
SEC. 141. DEBTS INCURRED TO PAY NONDISCHARGEABLE
DEBTS.
(a) PRIORITY OF CLAIMS FOR DEBTS INCURRED TO
PAY NONDISCHARGEABLE DEBTS.—Section 507(a) of title
11, United States Code, is amended by adding at the end
the following:
‘‘(10) 
Tenth, 
remaining 
allowed 
unsecured
claims for debts that are nondischargeable under sec-
tion 523(a)(19), but which shall be payable under this
paragraph in the higher order of priority (if any) as
the respective claims paid by incurring such debts.’’.
(b) NONDISCHARGEABILITY OF DEBTS INCURRED TO
PAY NONDISCHARGEABLE DEBTS.—Section 523(a) 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 ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(19) incurred to pay a debt that is non-
dischargeable under any other paragraph of this sub-
section.’’.
SEC. 142. CREDIT EXTENSIONS ON THE EVE OF BANK-
RUPTCY PRESUMED NONDISCHARGEABLE.
Section 523(a)(2)(C) of title 11, United States Code,
is amended to read as follows:
‘‘(C) for purposes of subparagraph (A), con-
sumer debts owed to a single creditor incurred by
an individual debtor on or within 90 days before
the order for relief under this title are presumed
to be nondischargeable, except that such pre-
sumption shall not apply to consumer debts owed
to a single creditor which are incurred for nec-
essaries and aggregate $250 or less.’’.
SEC. 143. FRAUDULENT DEBTS ARE NONDISCHARGEABLE
IN CHAPTER 13 CASES.
Section 1328(a)(2) of title 11, United States Code, is
amended—
(1) by inserting ‘‘(2), (3)(B), (4),’’ after ‘‘para-
graph’’; and
(2) by inserting ‘‘(6),’’ after ‘‘(5),’’.
SEC. 144. APPLYING THE CODEBTOR STAY ONLY WHEN IT
PROTECTS THE DEBTOR.
Section 1301(b) of title 11, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following:
‘‘(2) When the debtor did not receive the consideration
for the claim held by a creditor, the stay provided by sub-
section (a) does not apply to such creditor, notwithstanding
subsection (c), to the extent the creditor proceeds against
the individual which received such consideration or against
property not in the possession of the debtor which secures
such claim, but this subsection shall not apply if the debtor
is primarily obligated to pay the creditor in whole or in
part with respect to the claim under a legally binding sepa-
ration agreement, or divorce or dissolution decree, with re-
spect to such individual or the person who has possession
of such property.
‘‘(3) When the debtor’s plan provides that the debtor’s
interest in personal property subject to a lease as to which
the debtor is the lessee will be surrendered or abandoned
or no payments will be made under the plan on account
of the debtor’s obligations under the lease, the stay provided
by subsection (a) shall terminate as of the date of confirma-
tion of the plan notwithstanding subsection (c).’’.
SEC. 145. CREDIT EXTENSIONS WITHOUT A REASONABLE
EXPECTATION OF REPAYMENT MADE NON-
DISCHARGEABLE.
Section 523(a)(2) of title 11, United States Code, is
amended—
(1) in subparagraph (A) by striking ‘‘or actual
fraud,’’ and inserting ‘‘actual fraud, or use of a credit
or charge card or other device to access a credit line
without a reasonable expectation or ability to repay
unless access to such credit, credit or charge card or
other device to access the credit line was extended
without an application therefor and reasonable eval-
uation of the debtor’s ability to repay,’’, and
(2) in subparagraph (B)(iv) by striking ‘‘with
intent to deceive’’ and inserting ‘‘without taking rea-
sonable steps to ensure the accuracy of the statement’’.
SEC. 146. DEBTS FOR ALIMONY, MAINTENANCE, AND SUP-
PORT.
(a) NONDISCHARGEABILITY.—Title 11, United States
Code, is amended—
(1) in section 523(a)(18)—
(A) by inserting ‘‘(including interest)’’ after
‘‘law’’; and
(B) in subparagraph (A) by striking ‘‘and’’
at the end and inserting ‘‘or’’; and
(2) in section 1328(a)(2) by striking ‘‘or (9)’’
and inserting ‘‘(9), or (18)’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, as amended by section 130, is amend-
ed—
(1) in paragraph (19) by striking ‘‘or’’ at the
end;
(2) in paragraph (19) by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(20) under subsection (a) with respect to the
withholding of income pursuant to an order as speci-
fied in section 466(b) of the Social Security Act; or
‘‘(21) under subsection (a) with respect to the
withholding, suspension, or restriction of drivers’ li-
censes, professional and occupational licenses, and
recreational licenses pursuant to State law as speci-
fied in section 466(a)(15) of the Social Security Act
or with respect to the reporting of overdue support
owed by an absent parent to any consumer reporting
agency as specified in section 466(a)(7) of the Social
Security Act.’’.
(c) CONTINUED LIABILITY
OF PROPERTY.—Section
522(c) of title 11, United States Code, is amended by strik-
ing ‘‘section 523(a)(1) or 523(a)(5)’’ and inserting ‘‘para-
graph (1), (5), or (18) of section 523(a)’’.
(d) PRIORITY OF CLAIMS.—Section 507(a) of title 11,
United States Code, as amended by section 141, is amend-
ed—
(1) in paragraph (10) by striking ‘‘(10) Tenth’’
and inserting ‘‘(11) Eleventh’’;
(2) in paragraph (9) by striking ‘‘(9) Ninth’’
and inserting ‘‘(10) Tenth’’;
(3) in paragraph (8) by striking ‘‘(8) Eighth ’’
and inserting ‘‘(9) Ninth’’; and
(4) by inserting after paragraph (7) the follow-
ing:
‘‘(8) Eighth, allowed unsecured claims for debts
that are nondischargeable under section 523(a)(18).’’.
(e) CONFIRMATION OF PLANS.—Title 11 of the 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 to pay alimony to, maintenance
for, or support of a spouse, former spouse, or child of
the debtor, the debtor has paid all amounts payable
under such order for alimony, maintenance, or sup-
port that are due after the date the petition is filed.’’;
(2) in section 1225(a)—
(A) in paragraph (5) by striking ‘‘and’’ at
the end;
(B) in paragraph (6) by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(7) the debtor is required by a judicial or ad-
ministrative order to pay alimony to, maintenance
for, or support of a spouse, former spouse, or child of
the debtor, the debtor has paid all amounts payable
under such order for alimony, maintenance, or sup-
port that are due after the date the petition is filed.’’;
and
(3) in section 1325(a)—
(A) in paragraph (5) by striking ‘‘and’’ at
the end;
(B) in paragraph (6) by striking the period
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 ad-
ministrative order to pay alimony to, maintenance
for, or support of a spouse, former spouse, or child of
the debtor, the debtor has paid all amounts payable
under such order for alimony, maintenance, or sup-
port that are due after the date the petition is filed.’’.
(f) DISCHARGE.—Title 11 United States Code is
amended—
(1) in section 1228(a) by inserting ‘‘and only
after a debtor who is required by a judicial or admin-
istrative order to pay alimony to, maintenance for, or
support of a spouse, former spouse, or child of the
debtor, certifies that all amounts payable under such
order for alimony, maintenance, or support that are
due after the date the petition is filed have been
paid,’’ after ‘‘this title,’’; and
(2) in section 1328(a) by inserting ‘‘and only
after a debtor who is required by a judicial or admin-
istrative order to pay alimony to, maintenance for, or
support of a spouse, former spouse, or child of the
debtor, certifies that all amounts payable under such
order for alimony, maintenance, or support that are
due after the date the petition is filed have been
paid,’’ after ‘‘plan,’’ the 1st place it appears.
(g) CONFORMING AMENDMENTS.—Section 456(b) of the
Social Security Act (42 U.S.C. 656(b)) is amended—
(1) by inserting ‘‘, including interest,’’ after
‘‘Code)’’;
(2) by striking ‘‘and’’ and inserting ‘‘or’’; and
(3) by striking ‘‘released by a discharge’’ and in-
serting ‘‘dischargeable’’.
SEC. 147. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR
ALIMONY, MAINTENANCE, AND SUPPORT.
Section 523(a)(5) of title 11, United States Code, is
amended to read as follows:
‘‘(5) to a spouse, former spouse, or child of the
debtor for alimony to, maintenance for, or support of
such spouse or child, or to a spouse, former spouse, or
child of the debtor, to the extent such debt is the result
of a property settlement agreement, a hold harmless
agreement, or any other type of debt that is not in
the nature of alimony, maintenance, or support in
connection with or incurred by the debtor in the
course of a separation agreement, divorce decree, any
modifications thereof, or other order of a court of
record, determination made in accordance with State
or territorial law by a governmental unit, but not to
the extent that such debt is assigned to another entity,
voluntarily, by operation of law, or otherwise (other
than debts assigned pursuant to section 408(a)(3) of
the Social Security Act, or such debt that has been as-
signed to the Federal government, or to a State or po-
litical subdivision of such State, or the creditor’s at-
torney);’’.
SEC. 148. OTHER EXCEPTIONS TO DISCHARGE.
Section 523 of title 11, United States Code, is amend-
ed—
(1) by striking subsection (a)(15), as added by
section 304(e)(1) of Public Law 103–394;
(2) in subsection (a)(7) by inserting ‘‘(including
property or funds required to be disgorged)’’ after
‘‘penalty’’; and
(3) in subsection (c)(1) by striking ‘‘(6), or (15)’’
and inserting ‘‘or (6)’’.
SEC. 149. FEES ARISING FROM CERTAIN OWNERSHIP INTER-
ESTS.
(a) EXCEPTION TO DISCHARGE.—Section 523(a)(16)
of title 11, United States Code, is amended—
(1) by striking ‘‘dwelling’’ the 1st place it ap-
pears;
(2) by striking ‘‘ownership or’’ and inserting
‘‘ownership,’’;
(3) by striking ‘‘housing’’ the 1st place it ap-
pears; and
(4) by striking ‘‘but only’’ and all that follows
through ‘‘such period,’’, and inserting ‘‘or a lot in a
homeowners association, for as long as the debtor or
the trustee has a legal, equitable, or possessory owner-
ship interest in such unit, such corporation, or such
lot,’’.
(b) EXECUTORY CONTRACTS.—Section 365 of title 11,
United States Code, as amended by section 161, is amended
by adding at the end the following:
‘‘(q) A debt of a kind described in section 523(a)(16)
of this title shall not be considered to be a debt arising from
an executory contract.’’
SEC. 150. PROTECTION OF CHILD SUPPORT AND ALIMONY.
(a) AMENDMENT.—Title 11 of the United States Code,
as amended by section 116, is amended by inserting after
section 528 the following:
‘‘§ 529. Protection of child support and alimony pay-
ments after the discharge
‘‘Notwithstanding the provisions of the constitution or
law of any State providing a different priority, any debts
of the individual who has received a discharge under this
title to a spouse, former spouse, or child for alimony to,
maintenance for, or support of such spouse or child, in con-
nection with a separation agreement, divorce decree, or
other order of a court of record, determination made in ac-
cordance with State or territorial law by a governmental
unit, or property settlement agreement, but not to the extent
that such debt—
‘‘(1) is assigned to another entity, voluntarily,
by operation of law, or otherwise; or
‘‘(2) includes a liability designated as alimony,
maintenance, or support, unless such liability is actu-
ally in the nature of alimony, maintenance, or sup-
port,
shall have priority in payment and collection over a credi-
tor’s claim which is not discharged in the individual’s case
pursuant to paragraph (2), (4), or (14) of section 523(a)
of this title, but such priority shall not affect the priority
of any consensual lien, mortgage, or security interest secur-
ing such creditor’s claim.’’.
(b) CONFORMING AMENDMENT.—The table of sections
of chapter 5 of title 11, United States Code, as amended
by section 116, is amended by inserting after the item relat-
ing to section 528 the following:
‘‘529. Protection of child support and alimony.’’.
SEC. 151. ADEQUATE PROTECTION FOR INVESTORS.
(a) DEFINITION.—Section 101 of title 11, United
States Code, is amended by inserting after paragraph (48)
the following:
‘‘(48A) ‘securities self regulatory organization’
means either a securities association registered with
the Securities and Exchange Commission pursuant to
section 15A of the Securities Exchange Act of 1934 or
a national securities exchange registered with the Se-
curities and Exchange Commission pursuant to sec-
tion 6 of the Securities Exchange Act of 1934;’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, as amended by sections 130 and 146,
is amended—
(1) in paragraph (20) by striking ‘‘or’’ at the
end;
(2) in paragraph (21) by striking the period at
the end and a inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(22) under subsection (a) of this section, of the
commencement or continuation of an investigation or
action by a securities self regulatory organization to
enforce such organization’s regulatory power; of the
enforcement of an order or decision, other than for
monetary sanctions, obtained in an action by the se-
curities self regulatory organization to enforce such
organization’s regulatory power; or of any act taken
by the securities self regulatory organization to delist,
delete, or refuse to permit quotation of any stock that
does not meet applicable regulatory requirements.’’.
Subtitle E—Adequate Protections
for Lessors
SEC. 161. 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) of this title is automatically ter-
minated.
‘‘(2) 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 cred-
itor 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 lessor. If within 30 days of such notice
the debtor notifies the lessor in writing that the lease is as-
sumed, the liability under the lease will be assumed by the
debtor and not by the estate. The stay under section 362
of this title and the injunction under section 524(a)(2) of
this title shall not be violated by notification of the debtor
and negotiation of cure under this subsection.
‘‘(3) In a case under chapter 11 of this title in which
the debtor is an individual and in a case under chapter
13 of this title, 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 of this title and any
stay under section 1301 is automatically terminated with
respect to the property subject to the lease.’’.
SEC. 162. ADEQUATE PROTECTION OF LESSORS AND PUR-
CHASE MONEY SECURED CREDITORS.
Title 11, United States Code, is amended by adding
after section 1307 the following:
‘‘§ 1307A. Adequate protection in chapter 13 cases
‘‘(a)(1) On or before 30 days after the filing of a case
under this chapter, the debtor shall make cash payments
in the amount described below to any lessor of personal
property and to any creditor holding a claim secured by
personal property to the extent such claim is attributable
to the purchase of such property by the debtor. The debtor
or the plan shall continue such payments until the earlier
of—
‘‘(A) the time at which the creditor begins to re-
ceive actual payments under the plan; or
‘‘(B) the debtor relinquishes possession of such
property to the lessor or creditor, or to any third
party acting under claim of right, as applicable.
‘‘(2) Such cash payments shall be in the amount of
any weekly, biweekly, monthly or other periodic payment
scheduled as payable under the contract between the debtor
and creditor; shall be paid at the times at which such pay-
ments are scheduled to be made; and shall not include any
arrearages, penalties, or default or delinquency charges.
Such payments shall be deemed to be adequate protection
payments under section 362 of this title.
‘‘(b) The court may, after notice and hearing, change
the amount and timing of the adequate protection payment
under subsection (a), but in no event shall it be payable
less frequently than monthly or in an amount less than the
reasonable depreciation of such property month to month.
‘‘(c) Notwithstanding section 1326(b) of this title, if
a confirmed plan provides for payments to a creditor or
lessor described in subsection (a) and provides that pay-
ments to such creditor or lessor under the plan will be de-
ferred until payment of amounts described in section
1326(b) of this title, the payments required hereunder shall
nonetheless be continued in addition to plan payments until
actual payments to the creditor begin under the plan.
‘‘(d) Notwithstanding sections 362, 542, and 543 of
this title, a lessor or creditor described in subsection (a)
may retain possession of property described in subsection
(a) which was obtained rightfully prior to the date of filing
of the petition until the first such adequate protection pay-
ment is received by the lessor or creditor. Such retention
of possession and any acts reasonably related thereto shall
not violate the stay imposed under section 362(a) of this
title, nor any obligations imposed under section 542 or 543
of this title.
‘‘(e) On or before 60 days after the 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 that property
shall provide each creditor or lessor reasonable evidence of
the maintenance of any required insurance coverage with
respect to the use or ownership of such property and con-
tinue to do so for so long as the debtor retains possession
of such property.’’.
SEC. 163. ADEQUATE PROTECTION FOR LESSORS.
Section 362(b)(10) of title 11, United States Code, is
amended by striking ‘‘nonresidential’’.
Subtitle F—Bankruptcy Relief Less
Frequently Available for Repeat
Filers
SEC. 171. EXTEND PERIOD BETWEEN BANKRUPTCY DIS-
CHARGES.
Title 11, United States Code, is amended—
(1) in section 727(a)(8) by striking ‘‘six’’ and
inserting ‘‘10’’; and
(2) in section 1328 by adding at the end the fol-
lowing:
‘‘(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 of this title if the debt-
or has received a discharge in any case filed under this title
within 5 years of the order for relief under this chapter.’’.
Subtitle G—Exemptions
SEC. 181. EXEMPTIONS.
Section 522(b)(2)(A) of title 11, United States Code,
is amended—
(1) by striking ‘‘180’’ and inserting ‘‘365’’; and
(2) by striking ‘‘, or for a longer portion of such
180-day period than in any other place’’.
SEC. 182. LIMITATION.
Section 522 of title 11, United States Code, is amend-
ed—
(1) in subsection (b)(2)(A) by inserting ‘‘subject
to subsection (n),’’ before ‘‘any property’’; and
(2) by adding at the end the following:
‘‘(n)(1) Except as provided in paragraph (2), as a re-
sult of electing under subsection (b)(2)(A) to exempt prop-
erty under State or local law, a debtor may not exempt
any interest to the extent that such interest exceeds $100,000
in value, in the aggregate, in—
‘‘(A) real or personal property that the debtor or
a dependent of the debtor uses as a residence;
‘‘(B) a cooperative that owns property that the
debtor or a dependent of the debtor uses as a resi-
dence; or
‘‘(C) a burial plot for the debtor or a dependent
of the debtor.
‘‘(2) The limitation under paragraph (1) shall not
apply to an exemption claimed under subsection (b)(2)(A)
by a family farmer for the principal residence of that farm-
er.’’.
TITLE II—BUSINESS
BANKRUPTCY PROVISIONS
Subtitle A—General Provisions
SEC. 201. LIMITATION RELATING TO THE USE OF FEE EXAM-
INERS.
Section 330 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(e) The court may not appoint any person to examine
any request for compensation or reimbursement payable
under this section.’’.
SEC. 202. SHARING OF COMPENSATION.
Section 504 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(c) This section shall not apply with respect to shar-
ing, or agreeing to share, compensation with a bona fide
public service attorney referral program that operates in
accordance with non-Federal law regulating attorney refer-
ral services and with rules of professional responsibility ap-
plicable to attorney acceptance of referrals.’’.
SEC. 203. CHAPTER 12 MADE PERMANENT LAW.
Section 302(f) of the Bankruptcy Judges, United
States Trustees, and Family Farmer Bankruptcy Act of
1986 (11 U.S.C. 1201 note) is repealed.
SEC. 204. MEETINGS OF CREDITORS AND EQUITY SECURITY
HOLDERS.
Section 341 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(e) Notwithstanding subsections (a) and (b), the
court, on the request of a party in interest and after notice
and a hearing, for cause may order that the United States
trustee not convene a meeting of creditors or equity security
holders if the debtor has filed a plan as to which the debtor
solicited acceptances prior to the commencement of the
case.’’.
SEC. 205. CREDITORS’ AND EQUITY SECURITY HOLDERS’
COMMITTEES.
Section 1102(b) of title 11, United States Code, is
amended by adding at the end the following:
‘‘(3) The court on its own motion or on request of a
party in interest, and after notice and a hearing, may order
a change in membership of a committee appointed under
subsection (a) if necessary to ensure adequate representation
of creditors or of equity security holders.’’.
SEC. 206. POSTPETITION DISCLOSURE AND SOLICITATION.
Section 1125 of title 11, United States Code, is amend-
ed by adding at the end the following:
‘‘(g) Notwithstanding subsection (b), an acceptance or
rejection of the plan may be solicited from a holder of a
claim or interest if such solicitation complies with applica-
ble nonbankruptcy law and if such holder was solicited be-
fore the commencement of the case in a manner complying
with applicable nonbankruptcy law.’’.
SEC. 207. PREFERENCES.
Section 547(c) of title 11, United States Code, is
amended—
(1) by amending paragraph (2) to read as fol-
lows:
‘‘(2) to the extent that such transfer was in pay-
ment of a debt incurred by the debtor in the ordinary
course of business or financial affairs of the debtor
and the transferee, and such transfer was—
‘‘(A) made in the ordinary course of busi-
ness or financial affairs of the debtor and the
transferee; or
‘‘(B) made according to ordinary business
terms;’’;
(2) in paragraph (7) by striking ‘‘or’’ at the end;
(3) in paragraph (8) by striking the period at
the end and inserting ‘‘; or’’; and
(4) by adding at the end the following:
‘‘(9) if, in a case filed by a debtor whose debts
are not primarily consumer debts, the aggregate value
of all property that constitutes or is affected by such
transfer is less than $5000.’’.
SEC. 208. VENUE OF CERTAIN PROCEEDINGS.
Section 1409(b) of title 28, United States Code, is
amended by inserting ‘‘, or a nonconsumer debt against a
noninsider of less than $10,000,’’ after ‘‘$5,000’’.
SEC. 209. PERIOD FOR FILING PLAN UNDER CHAPTER 11.
Section 1121(d) of title 11, United States Code, is
amended—
(1) by striking ‘‘On’’ and inserting ‘‘(1) Subject
to paragraph (1), on’’; and
(2) by adding at the end the following:
‘‘(2)(A) Such 120-day period may not be extended be-
yond a date that is 18 months after the date of the order
for relief under this chapter.
‘‘(B) Such 180-day period may not be extended beyond
a date that is 20 months after the date of the order for relief
under this chapter.’’.
SEC. 210. PERIOD FOR FILING PLAN UNDER CHAPTER 12.
(a) EXTENSION OF PERIOD.—Section 1221 of title 11,
United States Code, is amended by inserting ‘‘to any period
not later than 150 days after the order for relief’’ after ‘‘pe-
riod’’.
(b) RELIEF FROM THE STAY.—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
property under subsection (a) of a debtor in a case
under chapter 12, by a creditor whose claim is se-
cured by an interest in such property, unless the debt-
or has filed a plan in accordance with section 1221.’’.
(c) SPECIAL TREATMENT OF SECURED CLAIMS.—(1)
Chapter 12 of title 11, United States Code, is amended by
inserting after section 1231 the following:
‘‘§ 1232. Special treatment of secured claims
‘‘(a)(1) A claim secured by a lien on property of the
estate shall be allowed or disallowed under section 502 of
this title the same as if the holder of such claim had recourse
against the debtor on account of such claim, whether or not
such holder has such recourse, unless—
‘‘(A) subject to paragraph (2), the holder of such
claim elects to apply subsection (b); or
‘‘(B) such holder does not have such recourse,
and such property is sold under section 363 of this
title or is to be sold under the plan.
‘‘(2) A holder of a claim may not elect to apply sub-
section (b) if—
‘‘(A) such claim is of inconsequential value; or
‘‘(B) the holder of a claim has recourse against
the debtor on account of such claim, and such prop-
erty is sold under section 363 of this title or is to be
sold under the plan.
‘‘(b) If such an election is made to apply this sub-
section, then notwithstanding section 506(a) of this title,
such claim is a secured claim to the extent such claim is
allowed.’’.
(2) The table of sections of chapter 12 of title 11,
United States Code, is amended by inserting after the item
relating to section 1231 the following:
‘‘1232. Special treatment of secured claims.’’.
SEC. 211. CASES ANCILLARY TO FOREIGN PROCEEDINGS IN-
VOLVING FOREIGN INSURANCE COMPANIES
THAT ARE ENGAGED IN THE BUSINESS OF IN-
SURANCE OR REINSURANCE IN THE UNITED
STATES.
Section 304 of title 11, United States Code, is amend-
ed—
(1) in subsection (b) by striking ‘‘provisions of
subsection (c)’’ and inserting ‘‘subsections (c) and
(d)’’; and
(2) by adding at the end the following:
‘‘(d) The court may not grant to a foreign representa-
tive of the estate of an insurance company that is not orga-
nized under the law of a State and that is engaged in the
business of insurance, or reinsurance, in the United States
relief under subsection (b) with respect to property that is—
‘‘(1) a deposit required by a State law relating
to insurance or reinsurance;
‘‘(2) a multibeneficiary trust required by a State
law relating to insurance or reinsurance to protect
holders of insurance policies issued in the United
States or to protect holders or claimants against such
policies; or
‘‘(3) a multibeneficiary trust authorized by a
State law relating to insurance or reinsurance to
allow a person engaged in the business of insurance
in the United States—
‘‘(A) to cede reinsurance to such an insur-
ance company; and
‘‘(B) to treat so ceded reinsurance as an
asset, or deduction from liability, in financial
statements of such person.’’.
SEC. 212. REJECTION OF EXECUTORY CONTRACTS AFFECT-
ING INTELLECTUAL PROPERTY RIGHTS TO
RECORDINGS OF ARTISTIC PERFORMANCE.
Section 365(n) of title 11, United States Code, is
amended at the end the following:
‘‘(5) The rejection by the trustee of an executory con-
tract affecting the intellectual property rights to recordings
of artistic performance shall not in any way diminish or
impair any applicable nonbankruptcy law rights to enforce
noncompetition provision or provisions regarding the ren-
dering of exclusive services as a performing artist that may
be contained in such contracts, except that such enforcement
shall be subject to the nondebtor party providing to the debt-
or notice of an offer to perform the contract under all of
its original terms. The rights to enforce such noncompeti-
tion or exclusivity provision shall not be treated as claims
that can be discharged under this title.’’.
SEC. 213. UNEXPIRED LEASES OF NONRESIDENTIAL REAL
PROPERTY.
Section 365(d)(4) of title 11, United States Code, is
amended to read as follows:
‘‘(4) In a case under any chapter of this title, if the
trustee does not assume or reject an unexpired lease of non-
residential real property under which the debtor is the lessee
before the earlier of (A) 120 days after the date of the order
for relief, or (B) the entry of an order confirming a plan,
then such lease is deemed rejected, and the trustee shall im-
mediately surrender such nonresidential real property to
the lessor but in no event shall such time period exceed 120
days. Notwithstanding the immediately preceding sentence,
and provided no plan has been confirmed, upon debtor’s
motion, and after notice and a hearing, the court may with-
in such 120-day period extend the 120-day period by a pe-
riod not to exceed 150 days, contingent upon written con-
sent of the affected lessor or with the approval of the court,
and provided trustee has timely performed all post-petition
lease obligations, but in no circumstance shall such period
extend beyond the earlier of (i) 270 days from the date of
the order for relief or (ii) the entry of an order approving
a disclosure statement, without the consent of the lessor.’’.
SEC. 214. DEFINITION OF DISINTERESTED PERSON.
Section 101(14) of title 11, United States Code, is
amended to read as follows:
‘‘(14) ‘disinterested person’ means a person
that—
‘‘(A) is not a creditor, an equity security
holder, or an insider;
‘‘(B) is not and was not, within 2 years be-
fore the date of the filing of the petition, a direc-
tor, officer, or employee of the debtor; and
‘‘(C) does not have an interest materially
adverse to the interest of the estate or of any
class of creditors or equity security holders, by
reason of any direct or indirect relationship to,
connection with, or interest in, the debtor, or for
any other reason;’’.
Subtitle B—Specific Provisions
CHAPTER 1—SMALL BUSINESS
BANKRUPTCY
SEC. 231. DEFINITIONS.
(a) DEFINITIONS.—Section 101 of title 11, United
States Code, is amended by striking paragraph (51C) and
inserting the following:
‘‘(51C) ‘small business case’ means a case filed
under chapter 11 of this title in which the debtor is
a small business debtor;
‘‘(51D) ‘small business debtor’ means—
‘‘(A) a person (including affiliates of such
person that are also debtors under this title) that
has aggregate noncontingent, liquidated secured
and unsecured debts as of the date of the petition
or the order for relief in an amount not more
than $5,000,000 (excluding debts owed to 1 or
more affiliates or insiders); or
‘‘(B) a debtor of the kind described in para-
graph (51B) but without regard to the amount
of such debtor’s debts;
except that if a group of affiliated debtors has aggre-
gate noncontingent liquidated secured and unsecured
debts greater than $5,000,000 (excluding debt owed to
1 or more affiliates or insiders), then no member of
such group is a small business debtor;’’.
(b) CONFORMING AMENDMENT.—Section 1102(a)(3) of
title 11, United States Code, is amended by inserting ‘‘debt-
or’’ after ‘‘small business’’.
SEC. 232. FLEXIBLE RULES FOR DISCLOSURE STATEMENT
AND PLAN.
Section 1125(f) of title 11, United States Code, is
amended to read as follows:
‘‘(f) Notwithstanding subsection (b), in a small busi-
ness case—
‘‘(1) in determining whether a disclosure state-
ment provides adequate information, the court shall
consider the complexity of the case, the benefit of ad-
ditional information to creditors and other parties in
interest, and the cost of providing additional infor-
mation;
‘‘(2) the court may determine that the plan itself
provides adequate information and that a separate
disclosure statement is not necessary;
‘‘(3) the court may approve a disclosure state-
ment submitted on standard forms approved by the
court or adopted pursuant to section 2075 of title 28;
and
‘‘(4)(A) the court may conditionally approve a
disclosure statement subject to final approval after
notice and a hearing;
‘‘(B) acceptances and rejections of a plan may be
solicited based on a conditionally approved disclosure
statement if the debtor provides adequate information
to each holder of a claim or interest that is solicited,
but a conditionally approved disclosure statement
shall be mailed not less than 20 days before the date
of the hearing on confirmation of the plan; and
‘‘(C) the hearing on the disclosure statement may
be combined with the hearing on confirmation of a
plan.’’.
SEC. 233. STANDARD FORM DISCLOSURE STATEMENTS AND
PLANS.
The Advisory Committee on Bankruptcy Rules of the
Judicial Conference of the United States shall, within a rea-
sonable period of time after the date of the enactment of
this Act, propose for adoption standard form disclosure
statements and plans of reorganization for small business
debtors (as defined in section 101) of title 11, United States
Code, as amended by this Act), designed to achieve a prac-
tical balance between—
(1) the reasonable needs of the courts, the United
States trustee or bankruptcy administrator, creditors,
and other parties in interest for reasonably complete
information; and
(2) economy and simplicity for debtors.
SEC. 234. UNIFORM NATIONAL REPORTING REQUIREMENTS.
(a) REPORTING REQUIRED.—(1) Title 11 of the
United States Code is amended by inserting after section
307 the following:
‘‘§ 308. Debtor reporting requirements
‘‘A small business debtor shall file periodic financial
and other reports containing information including—
‘‘(1) the debtor’s profitability, that is, approxi-
mately how much money the debtor has been earning
or losing during current and recent fiscal periods;
‘‘(2) reasonable approximations of the debtor’s
projected cash receipts and cash disbursements over a
reasonable period;
‘‘(3) comparisons of actual cash receipts and dis-
bursements with projections in prior reports;
‘‘(4) whether the debtor is—
‘‘(A) in compliance in all material respects
with postpetition requirements imposed by this
title and the Federal Rules of Bankruptcy Proce-
dure; and
‘‘(B) timely filing tax returns and paying
taxes and other administrative claims when due,
and, if not, what the failures are and how, at
what cost, and when the debtor intends to rem-
edy such failures; and
‘‘(5) such other matters as are in the best inter-
ests of the debtor and creditors, and in the public in-
terest in fair and efficient procedures under chapter
11 of this title.’’.
(2) The table of sections of chapter 3 of title 11, United
States Code, is amended by inserting after the item relating
to section 307 the following:
‘‘308. Debtor reporting requirements.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect 60 days after the date on which
rules are prescribed pursuant to section 2075, title 28,
United States Code to establish forms to be used to comply
with section 308 of title 11, United States Code, as added
by subsection (a).
SEC. 235. UNIFORM REPORTING RULES AND FORMS.
After consultation with the Director of the Executive
for United States Trustees and with the Judicial Conference
of the United States, the Attorney General of the United
States shall propose for adoption amended Federal Rules
of Bankruptcy Procedure and Official Bankruptcy Forms
to be used by small business debtors to comply with section
308 of title 11, United States Code, as added by section
234 of this Act to achieve a practical balance between—
(1) the reasonable needs of the courts, the United
States trustee or bankruptcy administrator, creditors,
and other parties in interest for reasonably complete
information; and
(2) economy and simplicity for debtors in cases
under such title.
SEC. 236. DUTIES IN SMALL BUSINESS CASES.
(a) DUTIES IN CHAPTER 11 CASES.—Title 11 of the
United States Code is amended by inserting after section
1114 the following:
‘‘§ 1115. Duties of trustee or debtor in possession in
small business cases
‘‘In a small business case, a trustee or the debtor in
possession, in addition to the duties provided in this title
and as otherwise required by law, shall—
‘‘(1) append to the voluntary petition or, in an
involuntary case, file within 3 days after the date of
the order for relief—
‘‘(A) its most recent balance sheet, statement
of operations, cash-flow statement, Federal in-
come tax return; or
‘‘(B) a statement made under penalty of
perjury that no balance sheet, statement of oper-
ations, or cash-flow statement has been prepared
and no Federal tax return has been filed;
‘‘(2) attend, through its senior management per-
sonnel and counsel, meetings scheduled by the court or
the United States trustee, including initial debtor
interviews, scheduling conferences, and meetings of
creditors convened under section 341 of this title;
‘‘(3) timely file all schedules and statements of
financial affairs, unless the court, after notice and a
hearing, grants an extension, which shall not extend
such time period to a date later than 30 days after
the date of the order for relief, absent extraordinary
and compelling circumstances;
‘‘(4) file all postpetition financial and other re-
ports required by the Federal Rules of Bankruptcy
Procedure or by local rule of the district court;
‘‘(5) subject to section 363(c)(2), maintain insur-
ance customary and appropriate to the industry;
‘‘(6)(A) timely file tax returns;
‘‘(B) subject to section 363(c)(2), timely pay all
administrative expense tax claims, except those being
contested by appropriate proceedings being diligently
prosecuted; and
‘‘(C) subject to section 363(c)(2), establish 1 or
more separate deposit accounts not later than 10
business days after the date of order for relief (or as
soon thereafter as possible if all banks contacted de-
100
cline the business) and deposit therein, not later than
1 business day after receipt thereof, all taxes payable
for periods beginning after the date the case is com-
menced that are collected or withheld by the debtor for
governmental units; and
‘‘(7) allow the United States trustee or bank-
ruptcy administrator, or its designated representa-
tive, to inspect the debtor’s business premises, books,
and records at reasonable times, after reasonable
prior written notice, unless notice is waived by the
debtor.’’.
(b) TECHNICAL AMENDMENT.—The table of sections of
chapter 11, United States Code, is amended by inserting
after the item relating to section 1114 the following:
‘‘1115. Duties of trustee or debtor in possession in small business cases.’’.
SEC. 237. PLAN FILING AND CONFIRMATION DEADLINES.
Section 1121(e) of title 11, United States Code, is
amended to read as follows:
‘‘(e) In a small business case—
‘‘(1) only the debtor may file a plan until after
90 days after the date of the order for relief, unless
shortened on request of a party in interest made dur-
ing the 90-day period, or unless extended as provided
by this subsection, after notice and hearing the court,
for cause, orders otherwise;
101
‘‘(2) the plan, and any necessary disclosure
statement, shall be filed not later than 90 days after
the date of the order for relief; and
‘‘(3) the time periods specified in paragraphs (1)
and (2), and the time fixed in section 1129(e) of this
title, within which the plan shall be confirmed may
be extended only if—
‘‘(A) the debtor, after providing notice to
parties in interest (including the United States
trustee), demonstrates by a preponderance of the
evidence that it is more likely than not that the
court will confirm a plan within a reasonable
time;
‘‘(B) a new deadline is imposed at the time
the extension is granted; and
‘‘(C) the order extending time is signed be-
fore the existing deadline has expired.’’.
SEC. 238. PLAN CONFIRMATION DEADLINE.
Section 1129 of title 11, United States Code, is amend-
ed by adding at the end the following:
‘‘(e) In a small business case, the plan shall be con-
firmed not later than 150 days after the date of the order
for relief unless such 150-day period is extended as provided
in section 1121(e)(3) of this title.’’.
102
SEC. 239. PROHIBITION AGAINST EXTENSION OF TIME.
Section 105(d) of title 11, United States Code, is
amended—
(1) in paragraph (2)(B)(vi) by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(2) by adding at the end the following:
‘‘(3) in a small business case, not extend the time
periods specified in sections 1121(e) and 1129(e) of
this title except as provided in section 1121(e)(3) of
this title.’’.
SEC. 240. DUTIES OF THE UNITED STATES TRUSTEE AND
BANKRUPTCY ADMINISTRATOR.
(a) DUTIES OF THE UNITED STATES TRUSTEE.—Sec-
tion 586(a) of title 28, United States Code, as amended by
section 111, is amended—
(1) in paragraph (3)—
(A) in subparagraph (G) by striking ‘‘and’’
at the end;
(B) by redesignating subparagraph (H) as
subparagraph (I); and
(C) by inserting after subparagraph (G) the
following:
‘‘(H) in small business cases (as defined in
section 101 of title 11), performing the addi-
tional duties specified in title 11 pertaining to
such cases;’’,
103
(2) in paragraph (6) by striking ‘‘and’’ at the
end,
(3) in paragraph (7) by striking the period at
the end and inserting ‘‘; and’’, and
(4) by inserting after paragraph (7) the follow-
ing:
‘‘(8) in each of such small business cases—
‘‘(A) conduct an initial debtor interview as
soon as practicable after the entry of order for
relief but before the first meeting scheduled under
section 341(a) of title 11 at which time the
United States trustee shall begin to investigate
the debtor’s viability, inquire about the debtor’s
business plan, explain the debtor’s obligations to
file monthly operating reports and other required
reports, attempt to develop an agreed scheduling
order, and inform the debtor of other obligations;
‘‘(B) when determined to be appropriate
and advisable, visit the appropriate business
premises of the debtor and ascertain the state of
the debtor’s books and records and verify that the
debtor has filed its tax returns;
‘‘(C) review and monitor diligently the
debtor’s activities, to identify as promptly as
104
possible whether the debtor will be unable to con-
firm a plan; and
‘‘(D) in cases where the United States trust-
ee finds material grounds for any relief under
section 1112 of title 11 move the court promptly
for relief.’’.
(b) DUTIES OF THE BANKRUPTCY ADMINISTRATOR.—
In a small business case (as defined in section 101 of title
11 of the United States Code), the bankruptcy adminis-
trator shall perform the duties specified in section 586(a)(6)
of title 28 of the United States Code.
SEC. 241. SCHEDULING CONFERENCES.
Section 105(d) of title 11, United States Code, is
amended—
(1) in the matter preceding paragraph (1) by
striking ‘‘, may’’;
(2) by amending paragraph (1) to read as fol-
lows:
‘‘(1) shall hold such status conferences as are
necessary to further the expeditious and economical
resolution of the case; and’’; and
(3) in paragraph (2) by striking ‘‘unless incon-
sistent with another provision of this title or with ap-
plicable Federal Rules of Bankruptcy Procedure,’’ and
inserting ‘‘may’’.
105
SEC. 242. SERIAL FILER PROVISIONS.
Section 362 of title 11, United States Code, is amend-
ed—
(1) in subsection (i) as so redesignated by section
124—
(A) by striking ‘‘An’’ and inserting ‘‘(1)
Except as provided in paragraph (2), an’’; and
(B) by adding at the end the following:
‘‘(2) If such violation is based on an action taken by
an entity in the good-faith belief that subsection (h) applies
to the debtor, then recovery under paragraph (1) against
such entity shall be limited to actual damages.’’; and
(2) by inserting after subsection (i), as redesig-
nated by section 124, the following:
‘‘() The filing of a petition under chapter 11 of this
title operates as a stay of the acts described in subsection
(a) only in an involuntary case involving no collusion by
the debtor with creditors and in which the debtor—
‘‘(1) is a debtor in a small business case pending
at the time the petition is filed;
‘‘(2) was a debtor in a small business case which
was dismissed for any reason by an order that became
final in the 2-year period ending on the date of the
order for relief entered with respect to the petition;
‘‘(3) was a debtor in a small business case in
which a plan was confirmed in the 2-year period end-
106
ing on the date of the order for relief entered with re-
spect to the petition; or
‘‘(4) is an entity that has succeeded to substan-
tially all of the assets or business of a small business
debtor described in subparagraph (A), (B), or (C) un-
less the debtor proves, by a preponderance of the evi-
dence, that the filing of such petition resulted from
circumstances beyond the control of the debtor not
foreseeable at the time the case then pending was
filed; and that it is more likely than not that the
court will confirm a feasible plan, but not a liquidat-
ing plan, within a reasonable time.’’.
SEC. 243. EXPANDED GROUNDS FOR DISMISSAL OR CON-
VERSION AND APPOINTMENT OF TRUSTEE.
(a) EXPANDED GROUNDS FOR DISMISSAL OR CONVER-
SION.—Section 1112(b) of title 11, United States Code, is
amended to read as follows:
‘‘(b)(1) Except as provided in paragraph (2), in sub-
section (c), and in section 1104(a)(3) of this title, on request
of a party in interest, and after notice and a hearing, the
court shall convert a case under this chapter to a case under
chapter 7 of this title or dismiss a case under this chapter,
whichever is in the best interest of creditors and the estate,
if the movant establishes cause.
107
‘‘(2) The relief provided in paragraph (1) shall not be
granted if the debtor or another party in interest objects
and establishes, by a preponderance of the evidence that—
‘‘(A) it is more likely than not that a plan will
be confirmed within a time as fixed by this title or
by order of the court entered pursuant to section
1121(e)(3), or within a reasonable time if no time has
been fixed; and
‘‘(B) if the reason is an act or omission of the
debtor that—
‘‘(i) there exists a reasonable justification
for the act or omission; and
‘‘(ii) the act or omission will be cured with-
in a reasonable time fixed by the court not to ex-
ceed 30 days after the court decides the motion,
unless the movant expressly consents to a con-
tinuance for a specific period of time, or compel-
ling circumstances beyond the control of the debt-
or justify an extension.
‘‘(3) For purposes of this subsection, cause includes—
‘‘(A) substantial or continuing loss to or diminu-
tion of the estate;
‘‘(B) gross mismanagement of the estate;
‘‘(C) failure to maintain appropriate insurance;
108
‘‘(D) unauthorized use of cash collateral harmful
to 1 or more creditors;
‘‘(E) failure to comply with an order of the
court;
‘‘(F) failure timely to satisfy any filing or re-
porting requirement established by this title or by any
rule applicable to a case under this chapter;
‘‘(G) failure to attend the meeting of creditors
convened under section 341(a) of this title or an ex-
amination ordered under rule 2004 of the Federal
Rules of Bankruptcy Procedure;
‘‘(H) failure timely to provide information or at-
tend meetings reasonably requested by the United
States trustee;
‘‘(I) failure timely to pay taxes due after the
date of the order for relief or to file tax returns due
after the order for relief;
‘‘(J) failure to file a disclosure statement, or to
file or confirm a plan, within the time fixed by this
title or by order of the court;
‘‘(K) failure to pay any fees or charges required
under chapter 123 of title 28;
‘‘(L) revocation of an order of confirmation
under section 1144 of this title, and denial of con-
109
firmation of another plan or of a modified plan
under section 1129 of this title;
‘‘(M) inability to effectuate substantial con-
summation of a confirmed plan;
‘‘(N) material default by the debtor with respect
to a confirmed plan; and
‘‘(O) termination of a plan by reason of the oc-
currence of a condition specified in the plan.
‘‘(4) The court shall commence the hearing on any mo-
tion under this subsection not later than 30 days after filing
of the motion, and shall decide the motion within 15 days
after commencement of the hearing, unless the movant ex-
pressly consents to a continuance for a specific period of
time or compelling circumstances prevent the court from
meeting the time limits established by this paragraph.’’.
(b) ADDITIONAL GROUNDS
FOR APPOINTMENT
OF
TRUSTEE.—Section 1104(a) of title 11, United States Code,
is amended—
(1) in paragraph (1) by striking ‘‘or’’ at the end;
(2) in paragraph (2) by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(3) if grounds exist to convert or dismiss the
case under section 1112 of this title, but the court de-
110
termines that the appointment of a trustee is in the
best interests of creditors and the estate.’’.
CHAPTER 2—SINGLE ASSET REAL ESTATE
SEC. 251. SINGLE ASSET REAL ESTATE DEFINED.
Section 101(51B) of title 11, United States Code, is
amended to read as follows:
‘‘(51B) ‘single asset real estate’ means undevel-
oped real property or other real property constituting
a single property or project, other than residential
real property with fewer than 4 residential units, on
which is located a single development or project which
property or project generates substantially all of the
gross income of a debtor and on which no substantial
business is being conducted by a debtor, or by a com-
monly controlled group of entities all of which are
concurrently debtors in a case under chapter 11 of
this title, other than the business of operating the real
property and activities incidental thereto;’’.
SEC. 252. PAYMENT OF INTEREST.
Section 362(d)(3) of title 11, United States Code, is
amended—
(1) by inserting ‘‘or 30 days after the court de-
termines that the debtor is subject to this paragraph,
whichever is later’’ after ‘‘90-day period)’’; and
111
(2) by amending subparagraph (B) to read as
follows:
‘‘(B) the debtor has commenced monthly
payments (which payments may, in the debtor’s
sole discretion, notwithstanding section 363(c)(2)
of this title, be made from rents or other income
generated before or after the commencement of
the case by or from the property) to each creditor
whose claim is secured by such real estate (other
than a claim secured by a judgment lien or by
an unmatured statutory lien), which payments
are in an amount equal to interest at the then-
applicable nondefault contract rate of interest on
the value of the creditor’s interest in the real es-
tate; or’’.
TITLE III—MUNICIPAL
BANKRUPTCY PROVISIONS
SEC. 301. PETITION AND PROCEEDINGS RELATED TO PETI-
TION.
(a) TECHNICAL AMENDMENT RELATING TO MUNICI-
PALITIES.—Section 921(d) of title 11, United States Code,
is amended by inserting ‘‘notwithstanding section 301(b)’’
before the period at the end.
(b) CONFORMING AMENDMENT.—Section 301 of title
11, United States Code, is amended—
112
(1) by inserting ‘‘(a)’’ before ‘‘A voluntary’’; and
(2) by amending the last sentence to read as fol-
lows:
‘‘(b) The commencement of a voluntary case under a
chapter of this title constitutes an order for relief under such
chapter.’’.
TITLE IV—BANKRUPTCY
ADMINISTRATION
Subtitle A—General Provisions
SEC. 401. ADEQUATE PREPARATION TIME FOR CREDITORS
BEFORE THE MEETING OF CREDITORS IN IN-
DIVIDUAL CASES.
Section 341(a) of title 11, United States Code, is
amended by inserting after the first sentence the following:
‘‘If the debtor is an individual in a voluntary case under
chapter 7, 11, or 13, the meeting of creditors shall not be
convened earlier than 60 days (or later than 90 days) after
the date of the order for relief, unless the court, after notice
and hearing, determines unusual circumstances justify an
earlier meeting.’’.
SEC. 402. CREDITOR REPRESENTATION AT FIRST MEETING
OF CREDITORS.
Section 341(c) of title 11, United States Code, is
amended by inserting after the first sentence the following:
‘‘Notwithstanding any local court rule, provision of a State
113
constitution, any other State or Federal nonbankruptcy
law, or other requirement that representation at the meeting
of creditors under subsection (a) be by an attorney, a credi-
tor holding a consumer debt or its representatives (which
representatives may include an entity or an employee of
an entity and may be a representative for more than 1 cred-
itor) shall be permitted to appear at and participate in
the meeting of creditors in a case under chapter 7 or 13
either alone or in conjunction with an attorney for the cred-
itor. Nothing in this subsection shall be construed to require
any creditor to be represented by an attorney at any meet-
ing of creditors.’’.
SEC. 403. FILING PROOFS OF CLAIM.
Section 501 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(e) In a case under chapter 7 or 13, a proof of claim
or interest is deemed filed under this section for any claim
or interest that appears in the schedules filed under section
521(a)(1) of this title, except a claim or interest that is
scheduled as disputed, contingent, or unliquidated.’’.
SEC. 404. AUDIT PROCEDURES.
(a) AMENDMENT.—Section 586 of title 28, United
States Code, as amended by sections 111 and 240, is amend-
ed—
114
(1) by amending subsection (a)(6) to read as fol-
lows:
‘‘(6) make such reports as the Attorney General
directs, including the results of audits performed
under subsection (f),’’;
(2) by inserting at the end the following:
‘‘(f)(1) The Attorney General shall establish procedures
for the auditing of the accuracy and completeness of peti-
tions, schedules, and other information which the debtor is
required to provide under sections 521 and 1322, and, if
applicable, section 111, of title 11 in individual cases filed
under chapter 7 or 13 of such title. Such audits shall be
in accordance with generally accepted auditing standards
and performed by independent certified public accountants
or independent licensed public accountants. Such proce-
dures shall—
‘‘(A) establish a method of selecting appropriate
qualified persons to contract with the United States
trustee to perform such audits;
‘‘(B) establish a method of randomly selecting
cases to be audited according to generally accepted
audit standards, provided that no less than 1 out of
every 100 cases in each Federal judicial district shall
be selected for audit;
115
‘‘(C) require audits for schedules of income and
expenses which reflect higher than average variances
from the statistical norm of the district in which the
schedules were filed;
‘‘(D) establish procedures for reporting the re-
sults of such audits and any material misstatement of
income, expenditures or assets of a debtor to the At-
torney General, the United States Attorney and the
court, as appropriate, and for providing public infor-
mation no less than annually on the aggregate results
of such audits including the percentage of cases, by
district, in which a material misstatement of income
or expenditures is reported; and
‘‘(E) establish procedures for fully funding such
audits.
‘‘(2) The United States trustee for each district is au-
thorized to contract with auditors to perform audits in cases
designated by the United States trustee according to the
procedures established under paragraph (1) of this sub-
section.
‘‘(3) According to procedures established under para-
graph (1), upon request of a duly appointed auditor, the
debtor shall cause the accounts, papers, documents, finan-
cial records, files and all other papers, things or property
belonging to the debtor as the auditor requests and which
116
are reasonably necessary to facilitate an audit to be made
available for inspection and copying.
‘‘(4) The report of each such audit shall be filed with
the court, the Attorney General, and the United States At-
torney, as required under procedures established by the At-
torney General under paragraph (1). If a material
misstatement of income or expenditures or of assets is re-
ported, a statement specifying such misstatement shall be
filed with the court and the United States trustee shall give
notice thereof to the creditors in the case and, in an appro-
priate case, in the opinion of the United States trustee, re-
quires investigation with respect to possible criminal viola-
tions, the United States Attorney for the district.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect 18 months after the date of the en-
actment of this Act.
SEC. 405. GIVING CREDITORS FAIR NOTICE IN CHAPTER 7
AND 13 CASES.
Section 342 of title 11, United States Code, is amend-
ed—
(1) in subsection (c)—
(A) by striking ‘‘, but the failure of such no-
tice to contain such information shall not invali-
date the legal effect of such notice’’; and
(B) by adding the following at the end:
117
‘‘If the credit agreement between the debtor and the creditor
or the last communication before the filing of the petition
in a voluntary case from the creditor to a debtor who is
an individual states an account number of the debtor which
is the current account number of the debtor with respect
to any debt held by the creditor against the debtor, the debt-
or shall include such account number in any notice to the
creditor required to be given under this title. If the creditor
has specified to the debtor an address at which the creditor
wishes to receive correspondence regarding the debtor’s ac-
count, any notice to the creditor required to be given by
the debtor under this title shall be given at such address.
For the purposes of this section, ‘notice’ shall include, but
shall not be limited to, any correspondence from the debtor
to the creditor after the commencement of the case, any
statement of the debtor’s intention under section 521(a)(2)
of this title, notice of the commencement of any proceeding
in the case to which the creditor is a party, and any notice
of the hearing under section 1324.’’;
(2) by adding at the end the following:
‘‘(d) 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
118
the creditor notice, such notice shall be given at that ad-
dress.
‘‘(e) 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 (d) with respect to a particular case.
‘‘(f) Notice given to a creditor other than as provided
in this section shall not be effective notice until it has been
brought to the attention of the creditor. If the creditor has
designated a person or department to be responsible for re-
ceiving notices concerning bankruptcy cases and has estab-
lished reasonable procedures so that bankruptcy notices re-
ceived by the creditor will be delivered to such department
or person, notice will not be brought to the attention of the
creditor until received by such person or department. No
sanction under section 362(h) of this title or any other sanc-
tion which a court may impose on account of violations
of the stay under section 362(a) of this title or failure to
comply with section 542 or 543 of this title 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 effective under this section.’’.
119
SEC. 406. DEBTOR TO PROVIDE TAX RETURNS AND OTHER
INFORMATION.
Section 521 of title 11, United States Code, is amend-
ed—
(1) by inserting ‘‘(a)’’ before ‘‘The’’;
(2) by amending paragraph (1) to read as fol-
lows:
‘‘(1) file—
‘‘(A) a list of creditors, and
‘‘(B) unless the court orders otherwise—
‘‘(i) a schedule of assets and liabilities;
‘‘(ii) a schedule of current income and
current expenditures;
‘‘(iii) a statement of the debtor’s finan-
cial affairs;
‘‘(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 prior to the fil-
ing of the petition;
‘‘(v) a statement of the amount of pro-
jected monthly net income, itemized to show
how calculated;
‘‘(vi) if applicable, any statement
under paragraphs (3) and (4) of section
109(h);
120
‘‘(vii) a statement disclosing any rea-
sonably anticipated increase in income or
expenditures over the next 12 months; and
‘‘(viii) a certificate, if applicable—
‘‘(I) of an attorney whose name is
on the petition as the attorney for the
debtor, or of any bankruptcy petition
preparer who signed the petition pur-
suant to section 110(b)(1) of this title,
indicating that such attorney or bank-
ruptcy petition preparer delivered to
the debtor any notice required by sec-
tion 342(b)(1) of this title; or
‘‘(II) if no attorney for the debtor
is indicated and no bankruptcy peti-
tion preparer signed the petition of the
debtor, that such notice was obtained
and read by the debtor;’’; and
(3) by adding at the end the following:
‘‘(b) 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 notice that the creditor requests the peti-
tion, schedules, and statement of financial affairs filed by
the debtor in the case. At any time, a creditor in a case
under chapter 13 of this title may file with the court and
121
serve on the debtor notice that the creditor requests the plan
filed by the debtor in the case. Within 10 days of the first
such request in a case under this subsection for the petition,
schedules, and statement of financial affairs and the first
such request for the plan under this subsection, the debtor
shall serve on that creditor a conformed copy of the re-
quested documents or plan and any amendments thereto as
of that date, and shall thereafter promptly serve on that
creditor at the time filed with the court—
‘‘(1) any requested document or plan which is
not filed with the court at the time requested; and
‘‘(2) any amendment to any requested document
or plan.
‘‘(c)(1) An individual debtor in a case under chapter
7 or 13 shall provide to the United States trustee—
‘‘(A) copies of all Federal tax returns (including
any schedules and attachments) filed by the debtor for
the 3 most recent tax years preceding the order for re-
lief;
‘‘(B) at the time the debtor files them with the
Commissioner of Internal Revenue, all Federal tax re-
turns (including any schedules and attachments) for
the debtor’s tax years ending while such case is pend-
ing; and
122
‘‘(C) at the time the debtor files them with the
Commissioner of Internal Revenue, all amendments to
the tax returns (including schedules and attachments)
described in subparagraphs (A) and (B).
‘‘(2)(A) The United States trustee shall make such Fed-
eral tax returns (including schedules, attachments, and
amendments) available to any party in interest for inspec-
tion and copying not later than 10 days after receiving a
request by such party.
‘‘(B) If the United States trustee does not comply with
subparagraph (A), on the motion of such party, the court
shall issue an order compelling the United States trustee
to comply with subparagraph (A).
‘‘(d) A debtor in a case under chapter 13 of this title
shall file, from a time which is the later of 90 days after
the close of the debtor’s tax year or 1 year after the order
for relief unless a plan has then been confirmed, and there-
after on or before 45 days before each anniversary of the
confirmation of the plan until the case is closed, a statement
subject to the penalties of perjury by the debtor of the debt-
or’s income and expenditures in the preceding tax year and
monthly net income, showing how calculated. Such state-
ment shall disclose the amount and sources of income of
the debtor, the identity of any persons responsible with the
debtor for the support of any dependents of the debtor, and
123
any persons who contributed and the amount contributed
to the household in which the debtor resides. Such tax re-
turns, amendments and statement of income and expendi-
tures shall be available to the United States trustee, any
bankruptcy administrator, any trustee and any party in
interest for inspection and copying.’’.
SEC. 407. DISMISSAL FOR FAILURE TO FILE SCHEDULES
TIMELY OR PROVIDE REQUIRED INFORMA-
TION.
Section 521 of title 11, United States Code, as amend-
ed by section 406, is amended by adding at the end the
following:
‘‘(e) Notwithstanding section 707(a) of this title, if an
individual debtor in a voluntary case under chapter 7 or
13 fails to provide all of the information required under
subsections (a)(1) and (c)(1)(A) within 45 days after the
filing of the petition, the case shall be automatically dis-
missed effective on the 46th day after the filing of the peti-
tion without the need for any order of court, but any party
in interest may request the court to enter an order dismiss-
ing the case and the court shall, if so requested, enter an
order of dismissal within 5 days of such request. Upon re-
quest of the debtor made within 45 days after the filing
of the petition, the court may allow the debtor up to an
additional 15 days to provide the information required
124
under subsections (a)(1) and (c)(1)(A) if the court finds
compelling justification for doing so.
‘‘(f) If an individual debtor in a case under chapter
7 or 13 fails to perform any of the duties imposed by sub-
sections (b), (c)(1)(B), (c)(1)(C), and (d), any party in in-
terest may request that the court order the debtor to comply.
Within 10 days of such request the court shall order that
the debtor do so within a period of time set by the court
no longer than 30 days. If the debtor does not comply with
that order within the period of time set by the court, the
court shall, on request of any party in interest certifying
that the debtor has not so complied, enter an order dismiss-
ing the case within 5 days of such request.’’.
SEC. 408. ADEQUATE TIME TO PREPARE FOR HEARING ON
CONFIRMATION OF THE PLAN.
Section 1324 of title 11, United States Code, is amend-
ed—
(1) by striking ‘‘After’’ and inserting the follow-
ing:
‘‘(a) Except as provided in subsection (b) and after’’;
and
(2) by adding at the end the following:
‘‘(b) The hearing on confirmation of the plan may be
held not earlier than 20 days, and not later than 45 days,
125
after the meeting of creditors under section 341(a) of this
title.’’.
SEC. 409. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION
IN CERTAIN CASES.
Title 11, United States Code, is amended—
(1) by amending section 1322(d) to read as fol-
lows:
‘‘(d) If the total current monthly income of the debtor
and in a joint case, the debtor and the debtor’s spouse com-
bined, is not less than the highest national median family
income reported for a family of equal or lesser size or, in
the case of a household of 1 person, not less than the na-
tional median household income for 1 earner, the plan may
not provide for payments over a period that is longer than
5 years, unless the court, for cause, approves a longer pe-
riod, but the court may not approve a period that exceeds
7 years. If the total current monthly income of the debtor
or in a joint case, the debtor and the debtor’s spouse com-
bined, is less than the highest national median family in-
come reported for a family of equal or lesser size, or in the
case of a household of 1 person less than the national me-
dian household income for 1 earner, the plan may not pro-
vide for payments over a period that is longer than 3 years,
unless the court, for cause, approves a longer period, but
126
the court may not approve a period that is longer than 5
years.’’;
(2) in section 1329—
(A) by striking in subsection (c) ‘‘three
years’’ and inserting ‘‘the applicable commit-
ment period under section 1325(b)(1)(B)(ii)’’
and by striking ‘‘five years’’ and inserting
‘‘maximum duration period’’; and
(B) by inserting at the end of subsection (c)
the following:
‘‘The maximum duration period shall be 5 years if the total
current monthly income of the debtor, and in a joint case,
the debtor and the debtor’s spouse combined, is not less than
the highest national median family income reported for a
family of equal or lesser size or, in the case of a household
of 1 person, not less than the national median household
income for 1 earner, as of the date of the modification and
shall be 3 years if the total current monthly income is less
than the highest national median family income reported
for a family of equal or lesser size or, in the case of a house-
hold of 1 person, less than the national median household
income for 1 earner as of the date of the modification.’’.
127
SEC. 410. SENSE OF THE CONGRESS REGARDING EXPAN-
SION OF RULE 9011 OF THE FEDERAL RULES
OF BANKRUPTCY PROCEDURE.
It is the sense of the Congress that rule 9011 of the
Federal Rules of Bankruptcy Procedure (11 U.S.C. App)
should be modified to include a requirement that all docu-
ments (including schedules), signed and unsigned, submit-
ted to the court or to a trustee by debtors who represent
themselves and debtors who are represented by an attorney
be submitted only after the debtor or the debtor’s attorney
has made reasonable inquiry to verify that the information
contained in such documents is well grounded in fact, and
is warranted by existing law or a good-faith argument for
the extension, modification, or reversal of existing law.
SEC. 411. JURISDICTION OF COURTS OF APPEALS.
(a) JURISDICTION.—Title 28 of the United States Code
is amended—
(1) by striking section 158;
(2) by inserting after section 1292 the following:
‘‘§ 1293. Bankruptcy appeals
‘‘The courts of appeals (other the United States Court
of Appeals for the Federal Circuit) shall have jurisdiction
of appeals from the following:
‘‘(1) Final orders and judgments of bankruptcy
courts entered under—
128
‘‘(A) section 157(b) of this title in core pro-
ceedings arising under title 11, or arising in or
related to a case under title 11; or
‘‘(B) section 157(c)(2) of this title in pro-
ceedings referred to such courts.
‘‘(2) Final orders and judgments of district
courts entered under section 157 of this title in—
‘‘(A) core proceedings arising under title 11,
or arising in or related to a case under title 11;
or
‘‘(B) proceedings that are not core proceed-
ings, but that are otherwise related to a case
under title 11.
‘‘(3) Orders and judgments of bankruptcy courts
or district courts entered under section 105 of title 11,
or the refusal to enter an order or judgment under
such section.
‘‘(4) Orders of bankruptcy courts or district
courts entered under section 1104(a) or 1121(d) of
title 11, or the refusal to enter an order under such
section.
‘‘(5) An interlocutory order of a bankruptcy
court or district court entered in a case under title
11, in a proceeding arising under title 11, or in a
129
proceeding arising in or related to a case under title
11, if—
‘‘(A) such court is of the opinion that—
‘‘(i) such order involves a controlling
question of law as to which there is substan-
tial ground for difference of opinion; and
‘‘(ii) an immediate appeal from such
order may materially advance the ultimate
termination of such case or such proceeding;
or
‘‘(B) the court of appeals that would have
jurisdiction of an appeal of a final order entered
in such case or such proceeding permits, in its
discretion, appeal to be taken from such inter-
locutory order.’’; and
(3) in—
(A) the table of sections for chapter 6 by
striking the item relating to section 158; and
(B) the table of sections for chapter 83 by
inserting after the item relating to section 1292
the following:
‘‘1293. Bankruptcy appeals.’’.
(b) CONFORMING AMENDMENTS.—(1) Section 305(c) of
title 11, the United States Code, is amended by striking
130
‘‘158(d), 1291, or 1292’’ and inserting ‘‘1291, 1292, or
1293’’.
(2) Title 28, United States Code, is amended—
(A) in subsections (b)(1) and (c)(2) of section
157 by striking ‘‘section 158’’ and inserting ‘‘section
1293’’;
(B) in section 1334(d) by striking ‘‘158(d), 1291,
or 1292’’ and inserting ‘‘1291, 1292, or 1293’’; and
(C) in section 1452(b) by striking ‘‘158(d), 1291,
or 1292’’ and inserting ‘‘1291, 1292, or 1293’’.
SEC. 412. ESTABLISHMENT OF OFFICIAL FORMS.
The Judicial Conference of the United States shall es-
tablish official forms to facilitate compliance with the
amendments made by sections 101 and 102.
SEC. 413. ELIMINATION OF CERTAIN FEES PAYABLE IN
CHAPTER 11 BANKRUPTCY CASES.
(a) AMENDMENTS.—Section 1930(a)(6) of title 28,
United States Code, is amended—
(1) in the 1st sentence by striking ‘‘until the case
is converted or dismissed, whichever occurs first’’, and
(2) in the 2d sentence—
(A) by striking ‘‘The’’ and inserting ‘‘Until
the plan is confirmed or the case is converted
(whichever occurs first) the’’, and
131
(B) by striking ‘‘less than $300,000;’’ and
inserting ‘‘less than $300,000. Until the case is
converted or dismissed (whichever occurs first
and without regard to confirmation of the plan)
the fee shall be’’.
(b) DELAYED EFFECTIVE DATE.—The amendments
made by subsection (a) shall take effect on October 1, 1999.
Subtitle B—Data Provisions
SEC. 441. IMPROVED BANKRUPTCY STATISTICS.
(a) AMENDMENT.—Title 28, United States Code, is
amended by adding after section 158 the following new sec-
tion:
‘‘§ 159. Bankruptcy statistics
‘‘The Director of the Executive Office for United States
Trustees shall compile statistics regarding individual debt-
ors with primarily consumer debts seeking relief under
chapters 7, 11, and 13 of title 11. Such statistics shall be
in a form prescribed by the Administrative Office of the
United States Courts. The Office shall compile such statis-
tics, and make them public, and report annually to the Con-
gress on the information collected, and on its analysis there-
of, no later than October 31 of each year. Such compilation
shall be itemized by chapter of title 11, shall be presented
in the aggregate and for each district, and shall include
the following:
132
‘‘(1) Total assets and total liabilities of such
debtors, and in each category of assets and liabilities,
as reported in the schedules prescribed pursuant to
section 2075 of this title and filed by such debtors.
‘‘(2) The current total monthly income, projected
monthly net income, and average income and average
expenses of such debtors as reported on the schedules
and statements the debtor has filed under sections
111, 521, and 1322 of title 11.
‘‘(3) The aggregate amount of debt discharged in
the reporting period, determined as the difference be-
tween the total amount of debt and obligations of a
debtor reported on the schedules and the amount of
such debt reported in categories which are predomi-
nantly nondischargeable.
‘‘(4) The average time between the filing of the
petition and the closing of the case.
‘‘(5) The number of cases in the reporting period
in which a reaffirmation was filed and the total num-
ber of reaffirmations filed in that period, and of those
cases in which a reaffirmation was filed, the number
in which the debtor was not represented by an attor-
ney, and of those the number of cases in which the re-
affirmation was approved by the court.
133
‘‘(6) With respect to cases filed under chapter 13
of title 11—
‘‘(A) the number of cases in which a final
order was entered determining the value of prop-
erty securing a claim less than the claim, and
the total number of such orders in the reporting
period; and
‘‘(B) the number of cases dismissed for fail-
ure to make payments under the plan.
‘‘(7) The number of cases in which the debtor
filed another case within the 6 years previous to the
filing.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect 18 months after the date of the
enactment of this Act.
SEC. 442. BANKRUPTCY DATA.
(a) AMENDMENT.—Title 28 of the United States Code
is amended by inserting after section 589a the following:
‘‘§ 589b. Bankruptcy data
‘‘(a) RULES.—The Attorney General shall, within a
reasonable time after the effective date of this section, issue
rules requiring uniform forms for (and from time to time
thereafter to appropriately modify and approve)—
‘‘(1) final reports by trustees in cases under
chapters 7, 12, and 13 of title 11; and
134
‘‘(2) periodic reports by debtors in possession or
trustees, as the case may be, in cases under chapter
11 of title 11.
‘‘(b) REPORTS.—All reports referred to in subsection
(a) shall be designed (and the requirements as to place and
manner of filing shall be established) so as to facilitate com-
pilation of data and maximum possible access of the public,
both by physical inspection at 1 or more central filing loca-
tions, and by electronic access through the Internet or other
appropriate media.
‘‘(c) REQUIRED INFORMATION.—The information re-
quired to be filed in the reports referred to in subsection
(b) shall be that which is in the best interests of debtors
and creditors, and in the public interest in reasonable and
adequate information to evaluate the efficiency and practi-
cality of the Federal bankruptcy system. In issuing rules
proposing the forms referred to in subsection (a), the Attor-
ney General shall strike the best achievable practical bal-
ance between—
‘‘(1) the reasonable needs of the public for infor-
mation about the operational results of the Federal
bankruptcy system; and
‘‘(2) economy, simplicity, and lack of undue bur-
den on persons with a duty to file reports.
135
‘‘(d) FINAL REPORTS.—Final reports proposed for
adoption by trustees under chapters 7, 12, and 13 of title
11 shall, in addition to such other matters as are required
by law or as the Attorney General in the discretion of the
Attorney General, shall propose, include with respect to a
case under such title—
‘‘(1) information about the length of time the
case was pending;
‘‘(2) assets abandoned;
‘‘(3) assets exempted;
‘‘(4) receipts and disbursements of the estate;
‘‘(5) expenses of administration;
‘‘(6) claims asserted;
‘‘(7) claims allowed; and
‘‘(8) distributions to claimants and claims dis-
charged without payment;
in each case by appropriate category and, in cases under
chapters 12 and 13 of title 11, date of confirmation of the
plan, each modification thereto, and defaults by the debtor
in performance under the plan.
‘‘(e) PERIODIC REPORTS.—Periodic reports proposed
for adoption by trustees or debtors in possession under
chapter 11 of title 11 shall, in addition to such other mat-
ters as are required by law or as the Attorney General, in
136
the discretion of the Attorney General, shall propose, in-
clude—
‘‘(1) information about the standard industry
classification, published by the Department of Com-
merce, for the businesses conducted by the debtor;
‘‘(2) length of time the case has been pending;
‘‘(3) number of full-time employees as at the date
of the order for relief and at end of each reporting pe-
riod since the case was filed;
‘‘(4) cash receipts, cash disbursements and prof-
itability of the debtor for the most recent period and
cumulatively since the date of the order for relief;
‘‘(5) compliance with title 11, whether or not tax
returns and tax payments since the date of the order
for relief have been timely filed and made;
‘‘(6) all professional fees approved by the court
in the case for the most recent period and cumula-
tively since the date of the order for relief (separately
reported, in for the professional fees incurred by or on
behalf of the debtor, between those that would have
been incurred absent a bankruptcy case and those
not); and
‘‘(7) plans of reorganization filed and confirmed
and, with respect thereto, by class, the recoveries of
the holders, expressed in aggregate dollar values and,
137
in the case of claims, as a percentage of total claims
of the class allowed.’’.
(b) TECHNICAL AMENDMENT.—The table of sections of
chapter 39 of title 28, United States Code, is amended by
adding at the end the following:
‘‘589b. Bankruptcy data.’’.
SEC. 443. SENSE OF THE CONGRESS REGARDING AVAIL-
ABILITY OF BANKRUPTCY DATA.
It is the sense of the Congress that—
(1) the national policy of the United States
should be that all data held by bankruptcy clerks in
electronic form, to the extent such data reflects only
public records (as defined in section 107 of title 11
of the United States Code), should be released in a us-
able electronic form in bulk to the public subject to
such appropriate privacy concerns and safeguards as
the Judicial Conference of the United States may de-
termine; and
(2) there should be established a bankruptcy data
system in which—
(A) a single set of data definitions and
forms are used to collect data nationwide; and
(B) data for any particular bankruptcy
case are aggregated in the same electronic record.
138
TITLE V—TAX PROVISIONS
SEC. 501. TREATMENT OF CERTAIN LIENS.
(a) TREATMENT OF CERTAIN LIENS.—Section 724 of
title 11, United States Code, is amended—
(1) in subsection (b), in the matter preceding
paragraph (1), by inserting ‘‘(other than to the extent
that there is a properly perfected unavoidable tax lien
arising in connection with an ad valorem tax on real
or personal property of the estate)’’ after ‘‘under this
title’’;
(2) in subsection (b)(2), after ‘‘507(a)(1)’’, insert
‘‘(except that such expenses, other than claims for
wages, salaries, or commissions which arise after the
filing of a petition, shall be limited to expenses in-
curred under chapter 7 of this title and shall not in-
clude expenses incurred under chapter 11 of this
title)’’; and
(3) by adding at the end the following:
‘‘(e) Before subordinating a tax lien on real or per-
sonal property of the estate, the trustee shall—
‘‘(1) exhaust the unencumbered assets of the es-
tate; and
‘‘(2) in a manner consistent with section 506(c)
of this title, recover from property securing an al-
lowed secured claim the reasonable, necessary costs
185
‘‘(24) ‘foreign representative’ means a person or
body, including a person or body appointed on an in-
terim basis, authorized in a foreign proceeding to ad-
minister the reorganization or the liquidation of the
debtor’s assets or affairs or to act as a representative
of the foreign proceeding;’’.
(c) AMENDMENTS
TO TITLE 28, UNITED STATES
CODE.—
(1) PROCEDURES.—Section 157(b)(2) of title 28,
United States Code, is amended—
(A) in subparagraph (N), by striking ‘‘and’’
at the end;
(B) in subparagraph (O), by striking the
period at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(P) recognition of foreign proceedings and other
matters under chapter 6 of title 11.’’.
(2) BANKRUPTCY
CASES
AND
PROCEEDINGS.—
Section 1334(c)(1) of title 28, United States Code, is
amended by striking ‘‘Nothing in’’ and inserting ‘‘Ex-
cept with respect to a case under chapter 6 of title 11,
nothing in’’.
(3) DUTIES OF TRUSTEES.—Section 586(a)(3) of
title 28, United States Code, is amended by inserting
‘‘6,’’ after ‘‘chapter’’.