105TH CONGRESS
2D SESSION
H. R. 3150
AN ACT
To amend title 11 of the United States Code, and
for other purposes.
105TH CONGRESS
2D SESSION
H. R. 3150
AN ACT
To amend title 11 of the United States Code, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
Sec. 235. Uniform reporting rules and forms for small business cases.
Sec. 236. Duties in small business cases.
Sec. 237. Plan filing and confirmation deadlines.
Sec. 238. Plan confirmation deadline.
Sec. 239. Prohibition against extension of time.
Sec. 240. Duties of the United States trustee and bankruptcy administrator.
Sec. 241. Scheduling conferences.
Sec. 242. Serial filer provisions.
Sec. 243. Expanded grounds for dismissal or conversion and appointment of
trustee.
Sec. 244. Study of operation of title 11 of the United States Code with respect
to small businesses.
CHAPTER 2—SINGLE ASSET REAL ESTATE
Sec. 251. Single asset real estate defined.
Sec. 252. Payment of interest.
TITLE III—MUNICIPAL BANKRUPTCY PROVISIONS
Sec. 301. Petition and proceedings related to petition.
Sec. 302. Applicability of other sections to chapter 9.
TITLE IV—BANKRUPTCY ADMINISTRATION
Subtitle A—General Provisions
Sec. 401. Adequate preparation time for creditors before the meeting of credi-
tors in individual cases.
Sec. 402. Creditor representation at first meeting of creditors.
Sec. 403. Filing proofs of claim.
Sec. 404. Audit procedures.
Sec. 405. Giving creditors fair notice in chapter 7 and 13 cases.
Sec. 406. Debtor to provide tax returns and other information.
Sec. 407. Dismissal for failure to file schedules timely or provide required infor-
mation.
Sec. 408. Adequate time to prepare for hearing on confirmation of the plan.
Sec. 409. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 410. Sense of the Congress regarding expansion of rule 9011 of the Fed-
eral Rules of Bankruptcy Procedure.
Sec. 411. Jurisdiction of courts of appeals.
Sec. 412. Establishment of official forms.
Sec. 413. Elimination of certain fees payable in chapter 11 bankruptcy cases.
Sec. 414. Study of bankruptcy impact of credit extended to dependent students.
Subtitle B—Data Provisions
Sec. 441. Improved bankruptcy statistics.
Sec. 442. Uniform rules for the collection of bankruptcy data.
Sec. 443. Sense of the Congress regarding availability of bankruptcy data.
TITLE V—TAX PROVISIONS
Sec. 501. Treatment of certain liens.
Sec. 502. Enforcement of child and spousal support.
Sec. 503. Effective notice to Government.
Sec. 504. Notice of request for a determination of taxes.
Sec. 505. Rate of interest on tax claims.
Sec. 506. Tolling of priority of tax claim time periods.
Sec. 507. Assessment defined.
Sec. 508. Chapter 13 discharge of fraudulent and other taxes.
Sec. 509. Chapter 11 discharge of fraudulent taxes.
Sec. 510. Stay of tax proceedings.
Sec. 511. Periodic payment of taxes in chapter 11 cases.
Sec. 512. Avoidance of statutory tax liens prohibited.
Sec. 513. Payment of taxes in the conduct of business.
Sec. 514. Tardily filed priority tax claims.
Sec. 515. Income tax returns prepared by tax authorities.
Sec. 516. Discharge of the estate’s liability for unpaid taxes.
Sec. 517. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 518. Standards for tax disclosure.
Sec. 519. Setoff of tax refunds.
TITLE VI—ANCILLARY AND OTHER CROSS-BORDER CASES
Sec. 601. Amendment to add a chapter 6 to title 11, United States Code.
Sec. 602. Amendments to other chapters in title 11, United States Code.
TITLE VII—MISCELLANEOUS
Sec. 701. Technical amendments.
Sec. 702. Application of amendments.
TITLE I—CONSUMER
BANKRUPTCY PROVISIONS
Subtitle A—Needs-Based
Bankruptcy
SEC. 101. NEEDS-BASED BANKRUPTCY.
Title 11, United States Code, is amended—
(1) in section 101 as follows:
(A) by inserting after paragraph (10) the
following:
‘‘(10A) ‘current monthly total income’ means
the average monthly income from all sources derived
which the debtor, or in a joint case, the debtor and
the debtor’s spouse, receive without regard to wheth-
er it is taxable income, in the six months preceding
the date of determination, and includes any amount
paid by anyone other than the debtor or, in a joint
case, the debtor and the debtor’s spouse, on a regu-
lar basis to the household expenses of the debtor or
the debtor’s dependents and, in a joint case, the
debtor’s spouse if not otherwise a dependent;’’; and
(B) by inserting after paragraph (40) the
following:
‘‘(40A) ‘national median family income’ and
‘national median household income for 1 earner’
shall mean during any calendar year, the national
median family income and the national median
household income for 1 earner which the Bureau of
the Census has reported as of January 1 of such cal-
endar year for the most recent previous calendar
year;’’;
(2) in section 104(b)(1) by striking ‘‘109(e)’’
and inserting ‘‘subsections (b), (e), and (h) of sec-
tion 109’’;
(3) in section 109(b)—
(A) in paragraph (2) by striking ‘‘or’’ at
the end;
(B) in paragraph (3) by striking the period
and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(4) an individual or, in a joint case, an indi-
vidual and such individual’s spouse, who have in-
come available to pay creditors as determined under
subsection (h).’’;
(4) by adding at the end of section 109 the fol-
lowing:
‘‘(h)(1) An individual or, in a joint case, an individual
and such individual’s spouse, have income available to pay
creditors if the individual, or, in a joint case, the individual
and the individual’s spouse combined, as of the date of
the order for relief, have—
‘‘(A) current monthly total income of not less
than the highest national median family income re-
ported for a family of equal or lesser size or, in the
case of a household of 1 person, of not less than the
national median household income for 1 earner, as
of the date of the order for relief;
‘‘(B) projected monthly net income greater than
$50; and
‘‘(C) projected monthly net income sufficient to
repay twenty percent or more of unsecured nonprior-
ity claims during a five-year repayment plan.
‘‘(2) Projected monthly net income shall be sufficient
under paragraph (1)(C) if, when multiplied by 60 months,
it equals or exceeds 20 percent of the total amount sched-
uled as payable to unsecured nonpriority creditors.
‘‘(3) ‘Projected monthly net income’ means current
monthly total income less—
‘‘(A) the expense allowances under the applica-
ble National Standards, Local Standards and Other
Necessary Expenses allowance (excluding payments
for debts), issued by the Internal Revenue Service,
for the debtor, the debtor’s dependents, and, in a
joint case, the debtor’s spouse if not otherwise a de-
pendent, in the area in which the debtor resides as
determined by the Internal Revenue Service allow-
ance for such expenses in effect as of the date of the
order for relief;
‘‘(B) the average monthly payment on account
of secured creditors, which shall be calculated as the
total of all amounts scheduled as contractually pay-
able to secured creditors in each month of the 60
months following the date of the petition by the
debtor, or, in a joint case, by the debtor and the
debtor’s spouse combined, and dividing that total by
60 months; and
‘‘(C) the average monthly payment on account
of priority creditors, which shall be calculated as the
total amount of debts entitled to priority, reasonably
estimated by the debtor as of the date of the peti-
tion, and dividing that total by 60 months.
‘‘(4) In the event that the debtor establishes extraor-
dinary circumstances that require allowance for additional
expenses or adjustment of current monthly total income,
projected monthly net income for purposes of this section
shall be the amount calculated under paragraph (3) less
such additional expenses or income adjustment as such ex-
traordinary circumstances require.
‘‘(A) This paragraph shall not apply unless the
debtor files with the petition—
‘‘(i) a written statement that this para-
graph applies in determining the debtor’s eligi-
bility for relief under chapter 7 of this title;
‘‘(ii) if adjustment of current monthly total
income is claimed, an explanation of any income
that has been lost in the 6 months preceding
the date of determination and any replacement
income that has been offered or secured, or is
expected, and an itemization of such lost and
replacement income;
‘‘(iii) if allowance for additional expenses is
claimed, a list itemizing each additional expense
which exceeds the expenses allowances provided
under paragraph (3)(A);
‘‘(iv) a detailed description of the extraor-
dinary circumstances that explain why each loss
of income described under clause (ii) will not be
replaced or each additional expense itemized
under clause (iii) requires allowance; and
‘‘(v) a sworn statement signed by the debt-
or and, if the debtor is represented by counsel,
by the debtor’s attorney, that the information
required under this paragraph is true and cor-
rect.
‘‘(B) Until the trustee or any party in interest
objects to the debtor’s statement that this paragraph
applies and the court rejects or modifies the debtor’s
statement, the projected monthly net income in the
debtor’s statement shall be the projected monthly
net income for the purposes of this section. If an ob-
jection is filed with the court within 60 days after
the debtor has provided all the information required
under subsections (a)(1) and (c)(1)(A) of section
521, the court, after notice and hearing, shall deter-
mine whether such extraordinary circumstances exist
and shall establish the amount of the additional ex-
pense allowance, if any. The burden of proving such
extraordinary circumstances shall be on the debtor.’’;
(5) in section 704—
(A) by striking ‘‘and’’ at the end of para-
graph (8);
(B) by striking the period at the end of
paragraph (9) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(10) with respect to an individual debtor, re-
view all materials provided by the debtor under sub-
sections (a)(1) and (c)(1) of section 521, investigate
and verify the debtor’s projected monthly net income
and within 30 days after such materials are so pro-
vided—
‘‘(A) file a report with the court as to
whether the debtor qualifies for relief under this
chapter under section 109(b)(4); and
‘‘(B) if the trustee determines that the
debtor does not qualify for such relief, the
trustee shall provide a copy of such report to
the parties in interest.’’;
(6) in section 1302(b)—
(A) in paragraph (4) by striking ‘‘and’’ at
the end;
(B) in paragraph (5) by striking the period
and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(6) investigate and verify the debtor’s monthly
net income and other information provided by the
debtor pursuant to sections 521 and 1322, and pur-
suant to section 111, if applicable; and
‘‘(7) file annual reports with the court, with
copies to holders of claims under the plan, as to
whether a modification of the amount paid creditors
under the plan is appropriate because of changes in
the debtor’s monthly net income.’’.
SEC. 102. ADEQUATE INCOME SHALL BE COMMITTED TO A
CHAPTER 13 PLAN THAT PAYS UNSECURED
CREDITORS.
Title 11, United States Code, is amended—
(1) in section 101 by inserting after paragraph
(39) the following:
‘‘(39A) ‘monthly net income’ means the amount
determined by taking the current monthly total in-
come of the debtor less—
‘‘(A) the expense allowances under the ap-
plicable National Standards, Local Standards
and Other Necessary Expenses allowance (ex-
cluding payments for debts), issued by the In-
ternal Revenue Service, for the debtor, the
debtor’s dependents, and, in a joint case, the
debtor’s spouse if not otherwise a dependent, in
the area in which the debtor resides as deter-
mined by the Internal Revenue Service allow-
ance for such expenses in effect as of the date
it is being determined;
‘‘(B) the average monthly payment on ac-
count of secured creditors, which shall be cal-
culated as of the date of determination as the
total of all amounts then remaining to be paid
on account of secured claims pursuant to the
plan less any of such amounts to be paid from
sources other than the debtor’s income, divided
by the total months remaining under the plan;
and
‘‘(C) the average monthly payment on ac-
count of priority creditors, which shall be cal-
culated as the total of all amounts then remain-
ing to be paid on account of priority claims pur-
suant to the plan less any of such amounts to
be paid from sources other than the debtor’s in-
come, divided by the total months remaining
under the plan;’’;
(2) in section 104(b)(1) by striking ‘‘and
523(a)(2)(C)’’ and inserting ‘‘523(a)(2)(C), and
1325(b)(1)’’; and
(3) by adding after section 110 the following:
‘‘§ 111. Adjustment to monthly net income
‘‘(a) Monthly net income for purposes of a plan under
chapter 13 of this title shall be adjusted under this section
when the debtor’s extraordinary circumstances require ad-
justment as determined herein. Under this section, month-
ly net income shall be determined by subtracting there-
from such loss of income or additional expenses as the
debtor’s extraordinary circumstances require as deter-
mined under this section. This section shall not apply un-
less—
‘‘(1) the debtor files with the court and with the
trustee at the times required in subsection (b) a
statement of extraordinary circumstances as fol-
lows—
‘‘(A) a written statement that this section
applies in determining the debtor’s monthly net
income;
‘‘(B) if applicable, an explanation of any
income that has been lost in the six months
preceding the date of determination and any re-
placement income which has been secured or is
expected, and an itemization of such lost and
replacement income;
‘‘(C) if applicable, a list itemizing each ad-
ditional expense which exceeds the expense al-
lowance provided in determining monthly net
income under section 101(39A);
‘‘(D) if applicable, a detailed description of
the extraordinary circumstances which explains
why each of the additional expenses itemized
under paragraph (C) requires allowance; and
‘‘(E) a sworn statement signed by the
debtor and, if the debtor is represented by
counsel, by the debtor’s attorney, of the amount
of monthly net income that the debtor has pur-
suant to this subsection and that the informa-
tion provided under this subsection is true and
correct; and
‘‘(2) until the trustee or any party in interest
objects to the debtor’s request that this section be
applied and the court rejects or modifies the debtor’s
statement, the monthly net income in the debtor’s
statement shall be the monthly net income for the
purposes of the debtor’s plan. If an objection is filed
with the court within the times provided in sub-
section (b), the court, after notice and hearing, shall
determine whether such extraordinary circumstances
asserted by the debtor exist and establish the
amount of the loss of income and such additional ex-
pense allowance, if any. The burden of proving such
scribed in section 507(a)(7) at the times pro-
vided for in the plan, and the plan shall specify
how payments to other creditors under subpara-
graph (ii) will be accordingly adjusted.’’; and
(6) by striking section 1325(b)(2).
SEC. 103. DEFINITION OF INAPPROPRIATE USE.
Section 707(b) of title 11, United States Code, is
amended to read as follows:
‘‘(b)(1) After notice and a hearing, the court—
‘‘(A) on its own motion or on the motion of the
United States trustee or any party in interest, shall
dismiss a case filed by an individual debtor under
this chapter; or
‘‘(B) with the debtor’s consent, convert the case
to a case under chapter 13 of this title;
if the court finds that the granting of relief would be an
inappropriate use of the provisions of this chapter.
‘‘(2) The court shall determine that inappropriate use
of the provisions of this chapter exists if—
‘‘(A) the debtor is excluded from this chapter
pursuant to section 109 of this title; or
‘‘(B) the totality of the circumstances of the
debtor’s financial situation demonstrates such inap-
propriate use.
‘‘(3) In the case of a motion filed by a party in inter-
est other than the trustee or United States trustee under
paragraph (1) that is denied by the court, the court shall
award against the moving party a reasonable attorney’s
fee and costs that the debtor incurred in opposing the mo-
tion if the court finds that the position of the moving party
was not substantially justified, but the court shall not
award such fee and costs if special circumstances would
make the award unjust.
‘‘(4)(A) If a trustee appointed under this title or the
United States Trustee files a motion under this subsection
and the case is subsequently dismissed or converted to an-
other chapter, the court shall award to such party in inter-
est a reasonable attorney’s fee and costs incurred in con-
nection with such motion, payable by the debtor, unless
the court finds that awarding such fee and costs would
impose an unreasonable hardship on the debtor, consider-
ing the debtor’s conduct.
‘‘(B) The signature of the debtor’s attorney on any
petition, pleading, motion, or other paper filed with the
court in the case of the debtor shall constitute a certificate
that the attorney has—
‘‘(i) performed a reasonable investigation into
the circumstances that gave rise to the petition,
schedules, and statement of financial affairs or the
pleading, as applicable; and
‘‘(ii) determined that the petition schedules,
and statement of financial affairs or the pleading, as
applicable, including the choice of this chapter—
‘‘(I) is well grounded in fact; and
‘‘(II) is warranted by existing law or a
good-faith argument for the extension, modi-
fication, or reversal of existing law and does not
constitute an inappropriate use of the provi-
sions of this chapter.
‘‘(C) If the court finds that the attorney for the debt-
or signed a paper in violation of subparagraph (B), at a
minimum, the court shall order—
‘‘(i) the assessment of an appropriate civil pen-
alty against the attorney for the debtor; and
‘‘(ii) the payment of the civil penalty to the
trustee or the United States Trustee.’’.
SEC. 104. DEBTOR PARTICIPATION IN CREDIT COUNSELING
PROGRAM.
(a) WHO MAY BE A DEBTOR.—Section 109 of title
11, United States Code, as amended by section 102, is
amended by adding at the end the following:
‘‘(i)(1) Subject to paragraph (2) and notwithstanding
any other provision of this section, an individual may not
be a debtor under this title unless such individual has,
during the 90-day period preceding the date of filing of
the petition, made a good-faith attempt to create a debt
repayment plan, through a credit counseling program of-
fered through credit counseling services described in sec-
tion 342(b)(2) that has been approved by—
‘‘(A) the United States trustee; or
‘‘(B) the bankruptcy administrator for the dis-
trict in which the petition is filed.
‘‘(2) The United States trustee or bankruptcy admin-
istrator may not approve a program for inclusion on the
list under paragraph (1) unless the counseling service of-
fering the program offers the program without charge, or
at an appropriately reduced charge, if payment of the reg-
ular charge would impose a hardship on the debtor or the
debtor’s dependents.
‘‘(3) The United States trustee or bankruptcy admin-
istrator shall designate any geographical areas in the
United States trustee region or judicial district, as the
case may be, as to which the United States trustee or
bankruptcy administrator has determined that credit
counseling services needed to comply with this subsection
are not available or are too geographically remote for debt-
ors residing within the designated geographical areas. The
clerk of the bankruptcy court for each judicial district
shall maintain a list of the designated areas within the
district.
‘‘(4) The clerk shall exclude a particular counseling
service from the list maintained under section 342(b)(2)
of this title if the United States trustee or bankruptcy ad-
ministrator orders that the counseling service not be in-
cluded in the list.
‘‘(5) The court may waive the requirement specified
in paragraph (1) if—
‘‘(A) no credit counseling services are available
as designated under paragraphs (2) and (3);
‘‘(B) the providers of credit counseling services
available in the district are unable or unwilling to
provide such services to the debtor in a timely man-
ner; or
‘‘(C) foreclosure, garnishment, attachment,
eviction, levy of execution, or similar claim enforce-
ment procedure that would have deprived the indi-
vidual of property had commenced before the debtor
could complete a good-faith attempt to create such
a repayment plan.
‘‘(6) A debtor who is subject to the exemption under
paragraph (5)(C) shall be required to make a good-faith
attempt to create a debt repayment plan outside the judi-
cial system in the manner prescribed in paragraph (1)
during the 30-day period beginning on the date of filing
of the petition of that debtor.
‘‘(7) A debtor shall be exempted from the bad faith
presumption for repeat filing under section 362(c) of title
11 if the case is dismissed due to the creation of a debt
repayment plan.
‘‘(8) Only the United States trustee may make a mo-
tion for dismissal on the ground that the debtor did not
comply with this subsection.’’.
(b) DEBTOR’S DUTIES.—Section 521 of title 11,
United States Code, as amended by sections 406 and 407,
is amended by adding at the end the following:
‘‘(g)(1) In addition to the requirements under sub-
section (a), an individual debtor shall file with the court—
‘‘(A) a certificate from the credit counseling
services that provided the debtor services under sec-
tion 109(i), or a verified statement by the debtor as
to why such attempt was not required under section
109(i) or other substantial evidence of a good-faith
attempt to create a debt repayment plan outside the
bankruptcy system in the manner prescribed in sec-
tion 109(i); and
‘‘(B) a copy of the debt repayment plan, if any,
developed under section 109(i) through the credit
counseling service referred to in paragraph (1).
‘‘(2) Only the United States trustee may make a mo-
tion for dismissal on the ground that the debtor did not
comply with this subsection.’’.
SEC. 105. WHO MAY BE A DEBTOR UNDER CHAPTER 11.
Section 109(d) of title 11, United States Code, is
amended by inserting ‘‘, or a person described in sub-
section (b)(4)),’’ after ‘‘chapter 7’’.
Subtitle B—Adequate Protections
for Consumers
SEC. 111. NOTICE OF ALTERNATIVES.
(a) Section 342(b) of title 11, United States Code,
is amended to read as follows:
‘‘(b)(1) Before the commencement of a case under
this title by an individual whose debts are primarily con-
sumer debts, the individual shall be given or obtain (as
required to be certified under section 521(a)(1)(B)(viii))
a written notice that is prescribed by the United States
trustee for the district in which the petition is filed pursu-
ant to section 586 of title 28 and that contains the follow-
ing:
‘‘(A) A brief description of chapters 7, 11, 12,
and 13 of this title and the general purpose, bene-
fits, and costs of proceeding under each of such
chapters.
‘‘(B) A brief description of services that may be
available to the individual from an independent non-
profit debt counselling service.
‘‘(C) The name, address, and telephone number
of each nonprofit debt counselling service (if any)—
‘‘(i)(I) with an office located in the district
in which the petition is filed; or
‘‘(II) that offers toll-free telephone commu-
nication to debtors in such district; and
‘‘(ii) that offers its services to debtors
without charge, or at an appropriately reduced
charge if payment of any regular charge would
impose a hardship on the debtor or a dependent
of the debtor.
‘‘(2) Any such nonprofit debt counselling service that
registers with the clerk of the bankruptcy court on or be-
fore December 10 of the preceding year shall be included
in such list unless the chief bankruptcy judge of the dis-
trict or on the motion of the United States trustee and,
after notice to the debt counselling service and opportunity
for a hearing, for good cause, orders that such debt coun-
selling service shall not be so listed.
‘‘(3) The clerk shall make such notice available to in-
dividuals whose debts are primarily consumer debts.’’.
(b) Section 586(a) of title 28, United States Code,
is amended—
(1) in paragraph (5) by striking ‘‘and’’ at the
end;
(2) in paragraph (6) by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(7) on or before January 1 of each calendar
year, and also within 30 days of any change in the
nonprofit debt counselling services registered with
the bankruptcy court, prescribe and make available
on request the notice described in section 342(b)(1)
of title 11 for each district included in the region.’’.
SEC. 112. DEBTOR FINANCIAL MANAGEMENT TRAINING
TEST PROGRAM.
(a) DEVELOPMENT
OF FINANCIAL MANAGEMENT
AND TRAINING CURRICULUM AND MATERIALS.—The Di-
rector of the Executive Office for United States Trustees
(in this section referred to as the ‘‘Director’’) shall consult
with a wide range of individuals who are experts in the
field of debtor education, including trustees who are ap-
pointed under chapter 13 of title 11 of the United States
Code and who operate financial management education
programs for debtors, and shall develop a financial man-
agement training curriculum and materials that can be
used to educate individual debtors on how to better man-
age their finances.
(b) TEST—(1) The Director shall select 3 judicial dis-
tricts of the United States in which to test the effective-
ness of the financial management training curriculum and
materials developed under subsection (a).
(2) For a 1-year period beginning not later than 180
days after the date of the enactment of this Act, such cur-
riculum and materials shall be made available by the Di-
rector, directly or indirectly, on request to individual debt-
ors in cases filed in such 1-year period under chapter 7
or 13 of title 11 of the United States Code.
(3) The bankruptcy courts in each of such districts
may require individual debtors in such cases to undergo
such financial management training as a condition to re-
ceiving a discharge in such case.
(c) EVALUATION.—(1) During the 1-year period re-
ferred to in subsection (b), the Director shall evaluate the
effectiveness of—
(A) the financial management training curricu-
lum and materials developed under subsection (a);
and
(B) a sample of existing consumer education
programs such as those described in the Report of
the National Bankruptcy Review Commission (Octo-
ber 20, 1997) that are representative of consumer
education programs carried out by the credit indus-
try, by trustees serving under chapter 13 of title 11
of the United States Code, and by consumer coun-
selling groups.
(2) Not later than 3 months after concluding such
evaluation, the Director shall submit a report to the
Speaker of the House of Representatives and the Presi-
dent pro tempore of the Senate, for referral to the appro-
priate committees of the Congress, containing the findings
of the Director regarding the effectiveness of such curricu-
lum, such materials, and such programs.
SEC. 113. DEFINITIONS.
(a) DEFINITIONS.—Section 101 of title 11, United
States Code, is amended—
(1) by inserting after paragraph (3) the follow-
ing:
‘‘(3A) ‘assisted person’ means any person whose
debts consist primarily of consumer debts and whose
non-exempt assets are less than $150,000;’’;
(2) by inserting after paragraph (4) the follow-
ing:
‘‘(4A) ‘bankruptcy assistance’ means any goods
or services sold or otherwise provided to an assisted
person with the express or implied purpose of pro-
viding information, advice, counsel, document prepa-
ration or filing, or attendance at a creditors’ meeting
or appearing in a proceeding on behalf of another or
providing legal representation with respect to a pro-
ceeding under this title;’’; and
(3) by inserting after paragraph (12A) the fol-
lowing:
‘‘(12B) ‘debt relief counselling agency’ means
any person who provides any bankruptcy assistance
to an assisted person in return for the payment of
money or other valuable consideration, or who is a
bankruptcy petition preparer pursuant to section
110 of this title, but does not include any person
that is any of the following or an officer, director,
employee or agent thereof—
‘‘(A) any nonprofit organization which is
exempt from taxation under section 501(c)(3)
of the Internal Revenue Code of 1986;
‘‘(B) any creditor of the person to the ex-
tent the creditor is assisting the person to re-
structure any debt owed by the person to the
creditor; or
‘‘(C) any depository institution (as defined
in section 3 of the Federal Deposit Insurance
Act) or any Federal credit union or State credit
union (as those terms are defined in section
101 of the Federal Credit Union Act), or any
affiliate or subsidiary of such a depository insti-
tution or credit union;’’.
(b) 
CONFORMING
AMENDMENT.—In 
section
104(b)(1) by inserting ‘‘101(3),’’ after ‘‘sections’’.
SEC. 114. DISCLOSURES.
(a) DISCLOSURES.—Subchapter II of chapter 5 of
title 11, United States Code, is amended by adding at the
end the following:
‘‘§ 526. Disclosures
‘‘(a) A debt relief counselling agency providing bank-
ruptcy assistance to an assisted person shall provide the
following notices to the assisted person:
‘‘(1) the written notice required under section
342(b)(1) of this title; and
‘‘(2) to the extent not covered in the written no-
tice described in paragraph (1) of this section and
no later than three business days after the first date
on which a debt relief counselling agency first offers
to provide any bankruptcy assistance services to an
assisted person, a clear and conspicuous written no-
tice advising assisted persons of the following—
‘‘(A) all information the assisted person is
required to provide with a petition and there-
after during a case under this title must be
complete, accurate and truthful;
‘‘(B) all assets and all liabilities must be
completely and accurately disclosed in the docu-
ments filed to commence the case, and the re-
placement value of each asset as defined in sec-
tion 506 of this title must be stated in those
documents where requested after reasonable in-
quiry to establish such value;
‘‘(C) current monthly total income, pro-
jected monthly net income and, in a chapter 13
case, monthly net income must be stated after
reasonable inquiry; and
‘‘(D) that information an assisted person
provides during their case may be audited pur-
suant to this title and that failure to provide
such information may result in dismissal of the
proceeding under this title or other sanction in-
cluding, in some instances, criminal sanctions.
‘‘(b) A debt relief counselling agency providing bank-
ruptcy assistance to an assisted person shall provide each
assisted person at the same time as the notices required
under subsection (a)(1) with the following statement, to
the extent applicable, or one substantially similar. The
statement shall be clear and conspicuous and shall be in
a single document separate from other documents or no-
tices provided to the assisted person:
‘‘ ‘IMPORTANT INFORMATION ABOUT BANK-
RUPTCY ASSISTANCE SERVICES FROM AN AT-
TORNEY OR BANKRUPTCY PETITION PREPARER
‘‘ ‘If you decide to seek bankruptcy relief, you can
represent yourself, you can hire an attorney to represent
you, or you can get help in some localities from a bank-
ruptcy petition preparer who is not an attorney. THE
LAW REQUIRES AN ATTORNEY OR BANKRUPTCY
PETITION PREPARER TO GIVE YOU A WRITTEN
CONTRACT SPECIFYING WHAT THE ATTORNEY
OR BANKRUPTCY PETITION PREPARER WILL DO
FOR YOU AND HOW MUCH IT WILL COST. Ask to
see the contract before you hire anyone.
‘‘ ‘The following information helps you understand
what must be done in a routine bankruptcy case to help
you evaluate how much service you need. Although bank-
ruptcy can be complex, many cases are routine.
‘‘ ‘Before filing a bankruptcy case, either you or your
attorney should analyze your eligibility for different forms
of debt relief made available by the Bankruptcy Code and
which form of relief is most likely to be beneficial for you.
Be sure you understand the relief you can obtain and its
limitations. To file a bankruptcy case, documents called
a Petition, Schedules and Statement of Financial Affairs,
as well as in some cases a Statement of Intention need
to be prepared correctly and filed with the bankruptcy
court. You will have to pay a filing fee to the bankruptcy
court. Once your case starts, you will have to attend the
required first meeting of creditors where you may be ques-
tioned by a court official called a ‘‘trustee’’ and by credi-
tors.
‘‘ ‘If you choose to file a chapter 7 case, you may be
asked by a creditor to reaffirm a debt. You may want help
deciding whether to do so.
‘‘ ‘If you choose to file a chapter 13 case in which
you repay your creditors what you can afford over three
to seven years, you may also want help with preparing
your chapter 13 plan and with the confirmation hearing
on your plan which will be before a bankruptcy judge.
‘‘ ‘If you select another type of relief under the Bank-
ruptcy Code other than chapter 7 or chapter 13, you will
want to find out what needs to be done from someone fa-
miliar with that type of relief.
‘‘ ‘Your bankruptcy case may also involve litigation.
You are generally permitted to represent yourself in litiga-
tion in bankruptcy court, but only attorneys, not bank-
ruptcy petition preparers, can give you legal advice.’.
‘‘(c) Except to the extent the debt relief counselling
agency provides the required information itself after rea-
sonably diligent inquiry of the assisted person or others
so as to obtain such information reasonably accurately for
inclusion on the petition, schedules or statement of finan-
cial affairs, a debt relief counselling agency providing
bankruptcy assistance to an assisted person, to the extent
permitted by nonbankruptcy law, shall provide each as-
sisted person at the time required for the notice required
under subsection (a)(1) reasonably sufficient information
(which may be provided orally or in a clear and conspicu-
ous writing) to the assisted person on how to provide all
the information the assisted person is required to provide
under this title pursuant to section 521, including—
‘‘(1) how to value assets at replacement value,
determine current monthly total income, projected
monthly income and, in a chapter 13 case, net
monthly income, and related calculations;
‘‘(2) how to complete the list of creditors, in-
cluding how to determine what amount is owed and
what address for the creditor should be shown; and
‘‘(3) how to determine what property is exempt
and how to value exempt property at replacement
value as defined in section 506 of this title.
‘‘(d) A debt relief counselling agency shall maintain
a copy of the notices required under subsection (a) of this
section for two years after the later of the date on which
the notice is given the assisted person.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tion for chapter 5 of title 11, United States Code, is
amended by inserting after the item relating to section
525 the following:
‘‘526. Disclosures.’’.
SEC. 115. DEBTOR’S BILL OF RIGHTS.
(a) DEBTOR’S BILL OF RIGHTS.—Subchapter II of
chapter 5 of title 11, United States Code, as amended by
section 114, is amended by adding at the end the follow-
ing:
‘‘§ 527. Debtor’s bill of rights
‘‘(a) A debt relief counselling agency shall—
‘‘(1) no later than three business days after the
first date on which a debt relief counselling agency
provides any bankruptcy assistance services to an
assisted person, execute a written contract with the
assisted person specifying clearly and conspicuously
the services the agency will provide the assisted per-
son and the basis on which fees or charges will be
made for such services and the terms of payment,
and give the assisted person a copy of the fully exe-
cuted and completed contract in a form the person
can keep;
‘‘(2) disclose in any advertisement of bank-
ruptcy assistance services or of the benefits of bank-
ruptcy directed to the general public (whether in
general media, seminars or specific mailings, tele-
phonic or electronic messages or otherwise) that the
services or benefits are with respect to proceedings
under this title, clearly and conspicuously using the
following statement: ‘We are a debt relief counselling
agency. We help people file Bankruptcy petitions to
obtain relief under the Bankruptcy Code.’ or a sub-
stantially similar statement. An advertisement shall
be of bankruptcy assistance services if it describes or
offers bankruptcy assistance with a chapter 13 plan,
regardless of whether chapter 13 is specifically men-
tioned, including such statements as ‘federally super-
vised repayment plan’ or ‘Federal debt restructuring
help’ or other similar statements which would lead
a reasonable consumer to believe that help with
debts was being offered when in fact in most cases
the help available is bankruptcy assistance with a
chapter 13 plan; and
‘‘(3) if an advertisement directed to the general
public indicates that the debt relief counselling agen-
cy provides assistance with respect to credit defaults,
mortgage foreclosures, lease eviction proceedings, ex-
cessive debt, debt collection pressure, or inability to
pay any consumer debt, disclose conspicuously in
that advertisement that the assistance is with re-
spect to or may involve proceedings under this title,
using the following statement: ‘‘We are a debt relief
counselling agency. We help people file Bankruptcy
petitions to obtain relief under the Bankruptcy
Code.’’ or a substantially similar statement.
‘‘(b) A debt relief counselling agency shall not—
‘‘(1) fail to perform any service which the debt
relief counseling agency has told the assisted person
or prospective assisted person the agency would pro-
vide that person in connection with the preparation
for or activities during a proceeding under this title;
‘‘(2) make any statement, or counsel or advise
any assisted person to make any statement in any
document filed in a proceeding under this title,
which is untrue and misleading or which upon the
exercise of reasonable care, should be known by the
debt relief counselling agency to be untrue or mis-
leading;
‘‘(3) misrepresent to any assisted person or pro-
spective assisted person, directly or indirectly, af-
firmatively or by material omission, what services
the debt relief counselling agency can reasonably ex-
pect to provide that person, or the benefits an as-
sisted person may obtain or the difficulties the per-
son may experience if the person seeks relief in a
proceeding pursuant to this title; or
‘‘(4) advise an assisted person or prospective
assisted person to incur more debt in contemplation
of that person filing a proceeding under this title or
in order to pay an attorney or bankruptcy petition
preparer fee or charge for services performed as part
of preparing for or representing a debtor in a pro-
ceeding under this title.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tion for chapter 5 of title 11, United States Code, as
amended by section 114, is amended by inserting after the
item relating to section 526, the following:
‘‘527. Debtor’s bill of rights.’’.
SEC. 116. ENFORCEMENT.
(a) ENFORCEMENT.—Subchapter II of chapter 5 of
title 11, United States Code, as amended by sections 114
and 115, is amended by adding at the end the following:
‘‘§ 528. Debt relief counselling agency enforcement
‘‘(a) ASSISTED PERSON WAIVERS INVALID.—Any
waiver by any assisted person of any protection or right
provided by or under section 526 or 527 of this title shall
be void and may not be enforced by any Federal or State
court or any other person.
‘‘(b) NONCOMPLIANCE.—
‘‘(1) Any contract between a debt relief counsel-
ling agency and an assisted person for bankruptcy
assistance which does not comply with the require-
ments of section 526 or 527 of this title shall be
treated as void and may not be enforced by any Fed-
eral or State court or by any other person.
‘‘(2) Any debt relief counselling agency which
has been found, after notice and hearing, to have—
‘‘(A) failed to comply with any provision of
section 526 or 527 with respect to a bankruptcy
case or related proceeding of an assisted per-
son;
‘‘(B) provided bankruptcy assistance to an
assisted person in a case or related proceeding
which is dismissed or converted in lieu of dis-
missal under section 707 of this title or because
of a failure to file bankruptcy papers, including
papers specified in section 521 of this title; or
‘‘(C) 
negligently 
or 
intentionally 
dis-
regarded the requirements of this title or the
Federal Rules of Bankruptcy Procedure appli-
cable to such debt relief counselling agency
shall be liable to the assisted person in the
amount of any fees and charges in connection
with providing bankruptcy assistance to such
person which the debt relief counselling agency
has already been paid on account of that pro-
ceeding and if the case has not been closed, the
court may in addition require the debt relief
counselling agency to continue to provide bank-
ruptcy assistance services in the pending case to
the assisted person without further fee or
charge or upon such other terms as the court
may order.
‘‘(3) In addition to such other remedies as are
provided under State law, whenever the chief law en-
forcement officer of a State, or an official or agency
designated by a State, has reason to believe that any
person has violated or is violating section 526 or 527
of this title, the State—
‘‘(A) may bring an action to enjoin such
violation;
‘‘(B) may bring an action on behalf of its
residents to recover the actual damages of as-
sisted persons arising from such violation, in-
cluding any liability under paragraph (2); and
‘‘(C) in the case of any successful action
under subparagraph (A) or (B), shall be award-
ed the costs of the action and reasonable attor-
ney fees as determined by the court.
‘‘(4) The United States District Court for any
district located in the State shall have concurrent ju-
risdiction of any action under subparagraph (A) or
(B) of paragraph (3).
‘‘(5) Notwithstanding any other provision of
Federal law, if the court, on its own motion or on
the motion of the United States trustee, finds that
a person intentionally violated section 526 or 527 of
this title, or engaged in a clear and consistent pat-
tern or practice of violating section 526 or 527 of
this title, the court may—
‘‘(A) enjoin the violation of such section; or
‘‘(B) impose an appropriate civil penalty
against such person.
‘‘(c) RELATION TO STATE LAW.—This section and
sections 526 and 527 shall not annul, alter, affect or ex-
empt any person subject to those sections from complying
with any law of any State except to the extent that such
law is inconsistent with those sections, and then only to
the extent of the inconsistency.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tion for chapter 5 of title 11, United States Code, as
amended by sections 114 and 115, is amended by inserting
after the item relating to section 527, the following:
‘‘528. Debt relief counselling agency enforcement.’’.
SEC. 117. SENSE OF THE CONGRESS.
It is the sense of the Congress that States should de-
velop curricula relating to the subject of personal finance,
designed for use in elementary and secondary schools.
SEC. 118. CHARITABLE CONTRIBUTIONS.
(a) DEFINITIONS.—Section 548(d) of title 11, United
States Code, is amended by adding at the end the follow-
ing:
‘‘(3) In this section, the term ‘charitable contribution’
means a charitable contribution as defined in section
170(c) of the Internal Revenue Code of 1986, if such con-
tribution—
‘‘(A) is made by a natural person; and
‘‘(B) consists of—
‘‘(i) a financial instrument (as defined in
section 731(c)(2)(C) of the Internal Revenue
Code of 1986); or
‘‘(ii) cash.
‘‘(4) In this section, the term ‘qualified religious or
charitable entity or organization’ means—
‘‘(A) an entity described in section 170(c)(1) of
the Internal Revenue Code of 1986; or
‘‘(B) an entity or organization described in sec-
tion 170(c)(2) of the Internal Revenue Code of
1986.’’.
(b) TREATMENT OF PREPETITION QUALIFIED CHAR-
ITABLE CONTRIBUTIONS.—
(1) IN GENERAL.—Section 548(a) of title 11,
United States Code, is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(B) by striking ‘‘(1) made’’ and inserting
‘‘(A) made’’;
(C) by striking ‘‘(2)(A)’’ and inserting
‘‘(B)(i)’’;
(D) by striking ‘‘(B)(i)’’ and inserting
‘‘(ii)(I)’’;
(E) by striking ‘‘(ii) was’’ and inserting
‘‘(II) was’’;
(F) by striking ‘‘(iii)’’ and inserting
‘‘(III)’’; and
(G) by adding at the end the following:
‘‘(2) A transfer of a charitable contribution to a
qualified religious or charitable entity or organization shall
not be considered to be a transfer covered under para-
graph (1)(B) in any case in which—
‘‘(A) the amount of such contribution, together
with any other such contribution, does not exceed 15
percent of the gross annual income of the debtor for
the year in which the transfer of the contribution is
made; or
‘‘(B) the contribution made by a debtor exceed-
ed the percentage amount of gross annual income
specified in subparagraph (A), if the transfer was
consistent with the practices of the debtor in making
charitable contributions.’’.
(2) TRUSTEE AS LIEN CREDITOR AND AS SUC-
CESSOR
TO
CERTAIN
CREDITORS
AND
PUR-
CHASERS.—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 trans-
ferred 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 in-
serting ‘‘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 in-
serting ‘‘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 in-
serting ‘‘548(a)(1)(B)’’.
(c) TREATMENT
OF POST-PETITION CHARITABLE
CONTRIBUTIONS 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 con-
sideration whether a debtor has made, or continues to
make, charitable contributions (that meet the definition
of ‘charitable 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
CONTRIBUTIONS 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
amendments made by this section is intended to limit the
applicability of the Religious Freedom Restoration Act of
1993 (42 U.S.C. 2000bb 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
period 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 ‘util-
ity’ includes any provider of gas, electric, telephone, tele-
communication, cable television, satellite communication,
water, or sewer service, whether or not such service is a
regulated 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 pre-
tenses, 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
paragraphs:
‘‘(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.
Upon motion by a party in interest for continuation
of the automatic stay and upon notice and a hear-
ing, the court may extend the stay in particular
cases as to any or all creditors (subject to such con-
ditions or limitations as the court may then impose)
after notice and a hearing completed before the expi-
ration of the 30-day period only if the party in inter-
est 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 convinc-
ing 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 within
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 docu-
ments as required by this title or the court
without substantial excuse (but mere inad-
vertence or negligence shall not be sub-
stantial excuse unless the dismissal was
caused by the negligence of the debtor’s at-
torney), failed to provide adequate protec-
tion 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 chap-
ters 7, 11, or 13 of this title, or any other
reason to conclude that the later case will
be concluded, if a case under chapter 7 of
this title, with a discharge, and if a chap-
ter 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 termi-
nating, conditioning, or limiting the stay as to
actions 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
effect 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 fil-
ing 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 imposed pursuant to the preceding
sentence will be effective 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 pre-
sumption 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 docu-
ments as required by this title or the court
without substantial excuse (but mere inad-
vertence or negligence shall not be sub-
stantial excuse unless the dismissal was
caused by the negligence of the debtor’s at-
torney), failed to pay adequate protection
as ordered by the court, or failed to per-
form the terms of a plan confirmed by the
court; or
‘‘(iii) there has not been a 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
chapter 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 termi-
nating, conditioning, or limiting the stay as to
action 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
granted in whole or in part, the court may order in
addition that the relief so granted shall be in rem
either for a definite period not less than 1 year or
indefinitely. 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 pend-
ing 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
property to be recorded in the applicable real prop-
erty 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
Commission (16 C.F.R. 444.1(i)), as in effect on the
effective date of this paragraph, except that the term
shall also include any tangible personal property rea-
sonably necessary for the maintenance and support
of a dependent child;’’.
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 fol-
lowing actions within 30 days after the first meeting
of creditors under section 341(a)—
‘‘(A) enters into an agreement with the
creditor pursuant to section 524(c) of this title
with respect to the claim secured by such prop-
erty; or
‘‘(B) redeems such property from the secu-
rity interest pursuant to section 722 of this
title.
‘‘If the debtor fails to so act within the 30-day pe-
riod, the personal property affected shall no longer
be property of the estate, and the creditor may take
whatever action as to such property as is permitted
by applicable nonbankruptcy law, unless the court
determines on the motion of the trustee, and after
notice and a hearing, that such property is of con-
sequential 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 THE AUTOMATIC STAY WHEN THE
DEBTOR DOES NOT COMPLETE INTENDED
SURRENDER OF CONSUMER DEBT COLLAT-
ERAL.
Title 11, United States Code, is amended as fol-
lows—
(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
required under section 521(a)(2) of this title with
respect to that property or to indicate therein that
the debtor will either surrender the property or re-
tain it and, if retaining it, either redeem the prop-
erty pursuant to section 722 of this title, reaffirm
the debt it secures pursuant to section 524(c) of this
title, or assume the unexpired lease pursuant to sec-
tion 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 con-
tract 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
placing the debtor in default under such lease or agree-
ment by reason of the occurrence, pendency, or existence
of a proceeding under this title or the insolvency of the
debtor. Nothing in this subsection shall be deemed to jus-
tify 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 con-
verted without completion of the plan, such lien
shall also be retained by such holder to the ex-
tent recognized by applicable nonbankruptcy
law; and’’.
SEC. 126. PROMPT RELIEF FROM THE AUTOMATIC 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 individ-
ual filing under chapter 7, 11, or 13, the stay under sub-
section (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 as described in findings
made by the court.’’.
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
converted case, with allowed secured claims’’ and in-
serting in lieu thereof ‘‘only in a case converted to
chapter 11 or 12 but not in one converted to chapter
7, with allowed secured claims in cases under chap-
ters 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 a case converted from
chapter 13, the claim of any creditor holding secu-
rity as of the date of the petition shall continue to
be secured by that security unless the full amount
of that claim determined under applicable nonbank-
ruptcy law has been paid in full as of the date of
conversion, notwithstanding any valuation or deter-
mination 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 pursuant to the plan at the time of con-
version, in any proceeding under this title or other-
wise, 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 al-
lowed claim to the extent attributable in whole or in
part to the purchase price of personal property ac-
quired by the debtor within 180 days of the filing of
the petition, except for the purpose of applying para-
graph (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
purchase 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 secu-
rity 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 prin-
cipal balance of the purchase price of the personal
property acquired and unpaid interest and charges
at the contract 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
petition without deduction for costs of sale or marketing.
With respect to property acquired for personal, family, or
household purpose, replacement value shall mean the price
a retail merchant would charge for property of that kind
considering the age and condition of the property at the
time value is determined.’’.
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 condomin-
ium or cooperative unit or mobile or manufactured
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 lo-
cated in the residence, and easements, appur-
tenances, fixtures, rents, royalties, mineral rights, oil
and gas rights, escrow funds and insurance pro-
ceeds;’’;
(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 by actual payment of all arrears as re-
quired by the plan, of the postponement, continu-
ation or other similar delay of a prepetition fore-
closure proceeding or sale in accordance with appli-
cable nonbankruptcy law, but nothing herein shall
imply that such postponement, continuation or other
similar delay is a violation of the stay under sub-
section (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 ac-
cordance with the terms of such security agree-
ment, 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
section 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 by reason of any other provision of
this subsection or section 727, 1141, 1228(a),
1228(b), or 1328(b), except for any debt incurred to
pay such a nondischargeable debt in any case in
which—
‘‘(A)(i) the debtor who paid the non-
dischargeable debt is a single custodial parent
who has 1 or more dependent children at the
time of the order for relief; or
‘‘(ii) there is an allowed claim for alimony
to, maintenance for, or support of a spouse,
former spouse, or child of the debtor payable
under a judicial or administrative order to such
spouse or child (but not to any other person)
which was unpaid as of the date of the petition;
and
‘‘(B) the creditor is unable to demonstrate
that the debtor intentionally incurred the debt
to pay the debt which is nondischargeable;’’.
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),
consumer debts owed to a single creditor, ex-
cluding debts incurred for necessaries that do
not exceed $250 in the aggregate, incurred by
an individual debtor on or within 90 days be-
fore the order for relief under this title are pre-
sumed to be nondischargeable.’’.
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 consider-
ation for the claim held by a creditor, the stay provided
by subsection (a) does not apply to such creditor, notwith-
standing 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 credi-
tor in whole or in part with respect to the claim under
a legally binding separation agreement, divorce decree, or
other order of a court of record, with respect to such indi-
vidual or the person who has possession of such property.
‘‘(3) When the debtor’s plan provides that the debt-
or’s interest in personal property subject to a lease as to
which the debtor is the lessee will be surrendered or aban-
doned or no payments will be made under the plan on ac-
count of the debtor’s obligations under the lease, the stay
provided by subsection (a) shall terminate as of the date
of confirmation of the plan notwithstanding subsection
(c).’’.
SEC. 145. 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
striking ‘‘section 523(a)(1) or 523(a)(5)’’ and inserting
‘‘paragraph (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
amended—
(1) in the matter preceding paragraph (1) by
inserting before the colon the following:
‘‘, except that, notwithstanding any other provision of this
title, any expense or claim entitled to priority under para-
graph (3) shall have first priority over any other expense
or claim that has priority under any other provision of
this subsection’’;
(2) in paragraph (10) by striking ‘‘(10) Tenth’’
and inserting ‘‘(11) Eleventh’’;
(3) in paragraph (9) by striking ‘‘(9) Ninth’’
and inserting ‘‘(10) Tenth’’;
(4) in paragraph (8) by striking ‘‘(8) Eighth ’’
and inserting ‘‘(9) Ninth’’; and
(5) by inserting after paragraph (7) the follow-
ing:
‘‘(8) Eighth, allowed unsecured claims for debts
that 
are 
nondischargeable 
under 
section
523(a)(18).’’.
(e) CONTENTS OF PLANS.—Section 1322(b)(1) of
title 11, United States Code, is amended by striking the
semicolon at the end and inserting the following:
‘‘and provide for the payment of any claim entitled
to priority under section 507(a)(3) of this title be-
fore the payment of any other claim entitled to pri-
ority under section 507(a), notwithstanding the pri-
orities established under section 507(a);’’.
(f) 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 pay-
able under such order for alimony, maintenance, or
support 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 pay-
able under such order for alimony, maintenance, or
support 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
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 pay-
able under such order for alimony, maintenance, or
support that are due after the date the petition is
filed.’’.
(g) 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 ad-
ministrative 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 sup-
port 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 ad-
ministrative 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 sup-
port that are due after the date the petition is filed
have been paid,’’ after ‘‘plan,’’ the 1st place it ap-
pears.
(h) 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
inserting ‘‘dischargeable’’.
SEC. 146. 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 agree-
ment, a hold harmless agreement, or any other type
of debt that is not in the nature of alimony, mainte-
nance, 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 govern-
mental 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 pur-
suant to section 408(a)(3) of the Social Security
Act, or such debt that has been assigned to the Fed-
eral government, or to a State or political subdivi-
sion of such State, or the creditor’s attorney);’’.
SEC. 147. OTHER EXCEPTIONS TO DISCHARGE.
Section 523 of title 11, United States Code, is
amended—
(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 ‘‘an order
of disgorgement or restitution obtained by a govern-
mental unit,’’ after ‘‘such debt is for’’; and
(3) in subsection (c)(1) by striking ‘‘(6), or
(15)’’ and inserting ‘‘or (6)’’.
SEC. 148. FEES ARISING FROM CERTAIN OWNERSHIP IN-
TERESTS.
(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 own-
ership 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. 149. 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 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 connection with a separation agreement, divorce decree,
or other order of a court of record, determination made
in accordance with State or territorial law by a govern-
mental 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 ac-
tually 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 (19) of section 523(a)
of this title, but such priority shall not affect the priority
of any consensual lien, mortgage, or security interest se-
curing such creditor’s claim except with respect to any
property of the debtor acquired after the date of the filing
of the petition. A creditor that receives a payment, or col-
lects money or property, in satisfaction of all or part of
any debt excepted from discharge under paragraph (2),
(4), or (14) of section 523(a) of this title shall not later
than 20 days after receiving such payment or collecting
such money or property, distribute such payment, such
money, or such property ratably to individuals who then
hold debts entitled to priority under section 507(a)(3) of
this title. Not later than 2 years after receiving such pay-
ment or collecting such money or property, such creditor
shall make the distribution required by this section to all
individuals whose identity is known to such creditor at the
time of distribution.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions of chapter 5 of title 11, United States Code, as
amended by section 116, is amended by inserting after the
item relating to section 528 the following:
‘‘529. Protection of child support and alimony payments after discharge.’’.
SEC. 150. 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 Securities and Exchange Commission pur-
suant to section 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 investiga-
tion or action by a securities self regulatory organi-
zation 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 securities self regulatory organization
to enforce such organization’s regulatory power; or
of any act taken by the securities self regulatory or-
ganization to delist, delete, or refuse to permit
quotation of any stock that does not meet applicable
regulatory requirements.’’.
SEC. 151. HIGHER PRIORITY FOR DEBTS FOR ALIMONY,
MAINTENANCE, AND SUPPORT.
Section 507(a) of title 11, United States Code, is
amended—
(1) by striking paragraph (7);
(2) in paragraph (6) by striking ‘‘(6) Sixth’’
and inserting ‘‘(7) Seventh’’;
(3) in paragraph (5) by striking ‘‘(5) Fifth’’
and inserting ‘‘(6) Sixth’’;
(4) in paragraph (4) by striking ‘‘(4) Fourth’’
and inserting ‘‘(5) Fifth’’;
(5) in paragraph (3) by striking ‘‘(3) Third’’
and inserting ‘‘(4) Fourth’’; and
(6) by inserting after paragraph (2) the follow-
ing:
‘‘(3) Third, allowed claims for debts to a
spouse, former spouse, or child of the debtor for ali-
mony to, maintenance for, or support of such spouse
or child, in connection with a separation agreement,
divorce decree or other order of a court of record,
determination made in accordance with State or ter-
ritorial law by a governmental unit, or property set-
tlement agreement, but not to the extent that such
debt—
‘‘(A) is assigned to another entity, volun-
tarily, by operation of law, or otherwise; or
‘‘(B) includes a liability designed as ali-
mony, maintenance, or support, unless such li-
ability is actually in the nature of alimony,
maintenance, or support.’’.
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
terminated.
‘‘(2) In the case of an individual under chapter 7,
the debtor may notify the creditor in writing that the debt-
or desires to assume the lease. Upon being so notified,
the creditor may, at its option, notify the debtor that it
is willing to have the lease assumed by the debtor and
may condition such assumption on cure of any outstanding
default on terms set by the lessor. If within 30 days of
such notice the debtor notifies the lessor in writing that
the lease is assumed, 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 noti-
fication 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 termi-
nated 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
receive 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 debt-
or and creditor; shall be paid at the times at which such
payments 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 pay-
ment under subsection (a), but in no event shall it be pay-
able 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
deferred until payment of amounts described in section
1326(b) of this title, the payments required hereunder
shall nonetheless be continued in addition to plan pay-
ments 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 per-
sonal property subject to a lease or securing a claim attrib-
utable 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 continue 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
following:
‘‘(f) Notwithstanding subsections (a) and (b), the
court shall not grant a discharge of all debts provided for
by the plan or disallowed under section 502 of this title
if the debtor 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
amended—
(1) in subsection (b)(2)(A) by inserting ‘‘sub-
ject to subsection (n),’’ before ‘‘any property’’; and
(2) by adding at the end the following:
‘‘(n) For purposes of subsection (b)(2)(A) and not-
withstanding subsection (a), the value of an interest in—
‘‘(1) real or personal property that the debtor
or a dependent of the debtor uses as a residence;
‘‘(2) a cooperative that owns property that the
debtor or a dependent of the debtor uses as a resi-
dence; or
‘‘(3) a burial plot for the debtor or a dependent
of the debtor;
shall be reduced to the extent such value is attributable
to any portion of any property that the debtor disposed
of in the 365-day period ending of the date of the filing
of the petition, with the intent to hinder, delay, or defraud
a creditor and that the debtor could not exempt, or that
portion that the debtor could not exempt, under subsection
(b) if on such date the debtor had held the property so
disposed of.’’.
TITLE II—BUSINESS
BANKRUPTCY PROVISIONS
Subtitle A—General Provisions
SEC. 201. LIMITATION RELATING TO THE USE OF FEE
EXAMINERS.
Section 330 of title 11, United States Code, is
amended by adding at the end the following:
‘‘(e) A person appointed to examine a request for
compensation or reimbursement payable under this section
may not be paid on the basis of the amount of any reduc-
tion recommended by such person in the amount or rate
of such compensation or such reimbursement.’’.
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 re-
ferral services and with rules of professional responsibility
applicable 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 secu-
rity 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)(A) The court on its own motion or, subject to
subparagraph (B), on request of a party in interest, and
after notice and a hearing, may order a change in member-
ship of a committee appointed under subsection (a) if nec-
essary to ensure adequate representation of creditors or
of equity security holders.
‘‘(B) A request to change the membership of a com-
mittee appointed under subsection (a) may be made under
subparagraph (A) by a party in interest only after such
request is submitted to and denied by the United States
trustee.’’.
SEC. 206. POSTPETITION DISCLOSURE AND SOLICITATION.
Section 1125 of title 11, United States Code, is
amended 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 ap-
plicable nonbankruptcy law and if such holder was solic-
ited before 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
payment of a debt incurred by the debtor in the or-
dinary 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
beyond 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 be-
yond 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 ‘‘period’’.
(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
debtor 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 re-
course against the debtor on account of such claim, wheth-
er 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
INVOLVING FOREIGN INSURANCE COMPA-
NIES THAT ARE ENGAGED IN THE BUSINESS
OF INSURANCE OR REINSURANCE IN THE
UNITED STATES.
Section 304 of title 11, United States Code, is
amended—
(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 or-
ganized 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) Where the court finds that a personal serv-
ices contract is property of the estate, the trustee
may not reject an executory contract for personal
services in which advances are paid for the creation
of copyrighted sound recordings in the future if a
material purpose for commencing a case under this
title is to reject such contract, unless, absent such
rejection, economic rehabilitation of the debtor’s fi-
nances, 
including 
such 
contract, 
cannot 
be
achieved.’’.
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
nonresidential 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 con-
firming a plan, then such lease is deemed rejected, and
the trustee shall immediately surrender such nonresiden-
tial real property to the lessor but in no event shall such
time period exceed 120 days. Notwithstanding the imme-
diately preceding sentence, and provided no plan has been
confirmed, upon motion of the trustee, and after notice
and a hearing, the court may within such 120-day period
extend the 120-day period by a period not to exceed 150
days, contingent upon written consent of the affected les-
sor or with the approval of the court, and provided the
trustee has timely performed all post-petition lease obliga-
tions, but in no circumstance shall such period extend be-
yond the earlier of (i) 270 days from the date of the order
for relief or (ii) the entry of an order approving a disclo-
sure 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 di-
rector, 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;’’.
SEC. 215. DEFAULTS BASED ON NONMONETARY OBLIGA-
TIONS.
(a) EXECUTORY
CONTRACTS
AND
UNEXPIRED
LEASES.—Section 365 of title 11, United States Code, is
amended—
(1) in subsection (b)—
(A) in paragraph (1)(A) by striking the
semicolon at the end and inserting the follow-
ing:
‘‘other than a default that is a breach of a provision
relating to—
‘‘(i) the satisfaction of any provision (other
than a penalty rate or penalty provision) relat-
ing to a default arising from any failure to per-
form nonmonetary obligations under an unex-
pired lease of real property, if it is impossible
for the trustee to cure such default by perform-
ing nonmonetary acts at and after the time of
assumption; or
‘‘(ii) the satisfaction of any provision
(other than a penalty rate or penalty provision)
relating to a default arising from any failure to
perform nonmonetary obligations under an ex-
ecutory contract, if it is impossible for the
trustee to cure such default by performing non-
monetary acts at and after the time of assump-
tion and if the court determines, based on the
equities of the case, that this subparagraph
should not apply with respect to such default;’’;
and
(B) by amending paragraph (2)(D) to read
as follows:
‘‘(D) the satisfaction of any penalty rate or
penalty provision relating to a default arising from
100
a failure to perform nonmonetary obligations under
an executory contract or under an unexpired lease of
real or personal property.’’;
(2) in subsection (c)—
(A) in paragraph (2) by adding ‘‘or’’ at the
end;
(B) in paragraph (3) by striking ‘‘; or’’ at
the end and inserting a period; and
(C) by striking paragraph (4);
(3) in subsection (d)—
(A) by striking paragraphs (5) through
(9); and
(B) by redesignating paragraph (10) as
paragraph(5); and
(4) in subsection (f)(1) by striking ‘‘; except
that’’ and all that follows through the end of the
paragraph and inserting a period.
(b) IMPAIRMENT OF CLAIMS OR INTERESTS.—Sec-
tion 1124(2) of title 11, United States Code, is amend-
ed—
(1) in subparagraph (A) by inserting ‘‘or of a
kind that section 365(b)(1)(A) of this title expressly
does not require to be cured’’ before the semicolon
at the end;
101
(2) in subparagraph (C) by striking ‘‘and’’ at
the end;
(3) by redesignating subparagraph (D) as sub-
paragraph (E); and
(4) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) if such claim or such interest arises
from any failure to perform a nonmonetary ob-
ligation, compensates the holder of such claim
or such interest (other than the debtor or an in-
sider) for any actual pecuniary loss incurred by
such holder as a result of such failure; and’’.
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)
102
that has aggregate noncontingent, liquidated se-
cured 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
paragraph (51B) but without regard to the
amount of such debtor’s debts,
except that if a group of affiliated debtors has ag-
gregate noncontingent liquidated secured and unse-
cured 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
‘‘debtor’’ 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
103
additional information to creditors and other parties
in interest, and the cost of providing additional in-
formation;
‘‘(2) the court may determine that the plan
itself provides adequate information and that a sepa-
rate 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 disclo-
sure statement if the debtor provides adequate infor-
mation 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 be-
fore 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.’’.
104
SEC. 233. STANDARD FORM DISCLOSURE STATEMENT AND
PLAN.
The Advisory Committee on Bankruptcy Rules of the
Judicial Conference of the United States shall, within a
reasonable 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 practical balance between—
(1) the reasonable needs of the courts, the
United States trustee or bankruptcy administrator,
creditors, and other parties in interest for reason-
ably complete information; and
(2) economy and simplicity for debtors.
SEC. 234. UNIFORM NATIONAL REPORTING REQUIRE-
MENTS.
(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 earn-
105
ing or losing during current and recent fiscal peri-
ods;
‘‘(2) reasonable approximations of the debtor’s
projected cash receipts and cash disbursements over
a reasonable period;
‘‘(3) comparisons of actual cash receipts and
disbursements 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 Pro-
cedure; 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
interest in fair and efficient procedures under chap-
ter 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.’’.
106
(b) EFFECTIVE DATE.—The amendments made by
subsection (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 FOR
SMALL BUSINESS CASES.
(a) PROPOSAL OF RULES AND FORMS.—The Advi-
sory Committee on Bankruptcy Rules of the Judicial Con-
ference of the United States shall propose for adoption
amended Federal Rules of Bankruptcy Procedure and Of-
ficial Bankruptcy Forms to be used by small business
debtors to file periodic financial and other reports contain-
ing information, including information relating to—
(1) the debtor’s profitability;
(2) the debtor’s cash receipts and disburse-
ments; and
(3) whether the debtor is timely filing tax re-
turns and paying taxes and other administrative
claims when due.
(b) PURPOSE.—The rules and forms proposed under
subsection (a) shall be designed to achieve a practical bal-
ance between—
107
(1) the reasonable needs of the bankruptcy
court, the United States trustee or bankruptcy ad-
ministrator, creditors, and other parties in interest
for reasonably complete information;
(2) the small business debtor’s interest that re-
quired reports be easy and inexpensive to complete;
and
(3) the interest of all parties that the required
reports help the small business debtor to understand
its financial condition and plan its future.
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, state-
ment of operations, cash-flow statement, Fed-
eral income tax return; or
108
‘‘(B) a statement made under penalty of
perjury that no balance sheet, statement of op-
erations, or cash-flow statement has been pre-
pared and no Federal tax return has been filed;
‘‘(2) attend, through its senior management
personnel and counsel, meetings scheduled by the
court or the United States trustee, including initial
debtor interviews, scheduling conferences, and meet-
ings 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 in-
surance 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
109
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
decline 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 commenced 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 reason-
able 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 insert-
ing 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—
110
‘‘(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
during the 90-day period, or unless extended as pro-
vided by this subsection, after notice and hearing the
court, for cause, orders otherwise;
‘‘(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 reason-
able 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.’’.
111
SEC. 238. PLAN CONFIRMATION DEADLINE.
Section 1129 of title 11, United States Code, is
amended 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 pro-
vided in section 1121(e)(3) of this title.’’.
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.—
Section 586(a) of title 28, United States Code, as amend-
ed by section 111, is amended—
(1) in paragraph (3)—
(A) in subparagraph (G) by striking ‘‘and’’
at the end;
112
(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;’’;
(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 inves-
tigate the debtor’s viability, inquire about the
debtor’s business plan, explain the debtor’s obli-
gations to file monthly operating reports and
other required reports, attempt to develop an
113
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; and
‘‘(C) review and monitor diligently the
debtor’s activities, to identify as promptly as
possible whether the debtor will be unable to
confirm a plan; and
‘‘(9) in cases in which the United States trustee
finds material grounds for any relief under section
1112 of title 11, the United States trustee shall
apply promptly to the court for relief.’’.
(b) DUTIES
OF
THE
BANKRUPTCY
ADMINIS-
TRATOR.—In a small business case (as defined in section
101 of title 11 of the United States Code), the bankruptcy
administrator 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’’;
114
(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
applicable Federal Rules of Bankruptcy Procedure,’’
and inserting ‘‘may’’.
SEC. 242. SERIAL FILER PROVISIONS.
Section 362 of title 11, United States Code, is
amended—
(1) in subsection (i) as so redesignated by sec-
tion 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) ap-
plies 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:
115
‘‘(j) 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 pend-
ing 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 pe-
tition;
‘‘(3) was a debtor in a small business case in
which a plan was confirmed in the 2-year period
ending on the date of the order for relief entered
with respect 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);
unless the debtor proves, by a preponderance of the
evidence, 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 liq-
uidating plan, within a reasonable time.’’.
116
SEC. 243. EXPANDED GROUNDS FOR DISMISSAL OR CON-
VERSION AND APPOINTMENT OF TRUSTEE.
(a) EXPANDED GROUNDS FOR DISMISSAL OR CON-
VERSION.—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 re-
quest of a party in interest, and after notice and a hear-
ing, 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.
‘‘(2) The relief provided in paragraph (1) shall not
be granted if the debtor or another party in interest ob-
jects 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
117
‘‘(ii) the act or omission will be cured with-
in a reasonable time fixed by the court not to
exceed 30 days after the court decides the mo-
tion, unless the movant expressly consents to a
continuance for a specific period of time, or
compelling circumstances beyond the control of
the debtor justify an extension.
‘‘(3) For purposes of this subsection, cause in-
cludes—
‘‘(A) substantial or continuing loss to or dimi-
nution of the estate;
‘‘(B) gross mismanagement of the estate;
‘‘(C) failure to maintain appropriate insurance;
‘‘(D) unauthorized use of cash collateral harm-
ful 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;
118
‘‘(H) failure timely to provide information or
attend 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;
‘‘(M) inability to effectuate substantial con-
summation of a confirmed plan;
‘‘(N) material default by the debtor with re-
spect 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
motion 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 expressly consents to a continuance for a specific
period of time or compelling circumstances prevent the
119
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
determines that the appointment of a trustee is in
the best interests of creditors and the estate.’’.
SEC. 244. STUDY OF OPERATION OF TITLE 11 OF THE
UNITED STATES CODE WITH RESPECT TO
SMALL BUSINESSES.
Not later than 2 years after the date of the enact-
ment of this Act, the Small Business Administration, in
consultation with the Attorney General, the Director of
the Administrative Office of United States Trustees, and
the Director of the Administrative Office of the United
States Courts, shall—
(1) conduct a study to determine—
120
(A) the internal and external factors that
cause small businesses to become debtors in
cases under title 11 of the United States Code
and that cause certain small businesses to suc-
cessfully complete cases under chapter 11 of
such title; and
(B) how Federal laws relating to bank-
ruptcy can be made more effective and efficient
in assisting small businesses to remain viable;
and
(2) submit to the Speaker of the House of Rep-
resentatives and the President pro tempore of the
Senate a report summarizing such study.
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 constitut-
ing a single property or project, other than residen-
tial 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,
121
or by a commonly controlled group of entities all of
which are concurrently debtors in a case under chap-
ter 11 of this title, other than the business of oper-
ating 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 para-
graph, whichever is later’’ after ‘‘90-day period)’’;
and
(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 com-
mencement 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
122
contract rate of interest on the value of the
creditor’s interest in the real estate; or’’.
TITLE III—MUNICIPAL
BANKRUPTCY PROVISIONS
SEC. 301. PETITION AND PROCEEDINGS RELATED TO
PETITION.
(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—
(1) by inserting ‘‘(a)’’ before ‘‘A voluntary’’;
and
(2) by amending the last sentence to read as
follows:
‘‘(b) The commencement of a voluntary case under
a chapter of this title constitutes an order for relief under
such chapter.’’.
SEC. 
302. 
APPLICABILITY 
OF 
OTHER 
SECTIONS 
TO
CHAPTER 9.
Section 901 of title 11, United States Code, is
amended—
(1) by inserting ‘‘555, 556,’’ after ‘‘553,’’; and
(2) by inserting ‘‘559, 560,’’ after ‘‘557,’’.
123
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 follow-
ing: ‘‘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 cir-
cumstances 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 follow-
ing: ‘‘Notwithstanding any local court rule, provision of
a State constitution, any other State or Federal nonbank-
ruptcy law, or other requirement that representation at
the meeting of creditors under subsection (a) be by an at-
torney, a creditor holding a consumer debt or its rep-
resentatives (which representatives may include an entity
or an employee of an entity and may be a representative
124
for more than 1 creditor) 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 creditor. Nothing in this subsection shall
be construed to require any creditor to be represented by
an attorney at any meeting 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 sec-
tion 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
amended—
(1) by amending subsection (a)(6) to read as
follows:
‘‘(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:
125
‘‘(f)(1) The Attorney General shall establish proce-
dures for the auditing of the accuracy and completeness
of petitions, 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 procedures 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;
‘‘(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
126
Attorney General, the United States Attorney and
the court, as appropriate, and for providing public
information 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
authorized 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
subsection.
‘‘(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
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
Attorney, as required under procedures established by the
Attorney General under paragraph (1). If a material
misstatement of income or expenditures or of assets is re-
127
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
appropriate case, in the opinion of the United States trust-
ee, requires investigation with respect to possible criminal
violations, 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 enactment of this Act.
SEC. 405. GIVING CREDITORS FAIR NOTICE IN CHAPTER 7
AND 13 CASES.
Section 342 of title 11, United States Code, is
amended—
(1) in subsection (c)—
(A) by striking ‘‘, but the failure of such
notice to contain such information shall not in-
validate the legal effect of such notice’’; and
(B) by adding the following at the end:
‘‘If the credit agreement between the debtor and the credi-
tor or the last communication before the filing of the peti-
tion 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 debtor shall include such account number in any notice
128
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 account, 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 correspond-
ence from the debtor to the creditor after the commence-
ment of the case, any statement of the debtor’s intention
under section 521(a)(2) of this title, notice of the com-
mencement 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 the creditor notice, such notice shall be given at that
address.
‘‘(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
129
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 receiving notices concerning bankruptcy cases and has
established reasonable procedures so that bankruptcy no-
tices received by the creditor will be delivered to such de-
partment or person, notice will not be brought to the at-
tention of the creditor until received by such person or
department. No sanction under section 362(h) of this title
or any other sanction which a court may impose on ac-
count 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 sec-
tion.’’.
SEC. 406. DEBTOR TO PROVIDE TAX RETURNS AND OTHER
INFORMATION.
Section 521 of title 11, United States Code, is
amended—
(1) by inserting ‘‘(a)’’ before ‘‘The’’;
130
(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 liabil-
ities;
‘‘(ii) a schedule of current income and
current expenditures;
‘‘(iii) a statement of the debtor’s fi-
nancial 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
filing of the petition;
‘‘(v) a statement of the amount of
projected monthly net income, itemized to
show how calculated;
‘‘(vi) if applicable, any statement
under paragraphs (3) and (4) of section
109(h);
‘‘(vii) a statement disclosing any rea-
sonably anticipated increase in income or
expenditures over the next 12 months; and
131
‘‘(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 peti-
tion preparer who signed the petition
pursuant to section 110(b)(1) of this
title, indicating that such attorney or
bankruptcy petition preparer delivered
to the debtor any notice required by
section 342(b)(1) of this title; or
‘‘(II) if no attorney for the debt-
or is indicated and no bankruptcy pe-
tition preparer signed the petition of
the debtor, that such notice was ob-
tained and read by the debtor;’’; 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
petition, 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 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
132
for the petition, schedules, and statement of financial af-
fairs and the first such request for the plan under this
subsection, the debtor shall serve on that creditor a con-
formed copy of the requested 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 docu-
ment 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 relief;
‘‘(B) at the time the debtor files them with the
Commissioner of Internal Revenue, all Federal tax
returns (including any schedules and attachments)
for the debtor’s tax years ending while such case is
pending; and
‘‘(C) at the time the debtor files them with the
Commissioner of Internal Revenue, all amendments
133
to the tax returns (including schedules and attach-
ments) described in subparagraphs (A) and (B).
‘‘(2)(A) The United States trustee shall make such
Federal tax returns (including schedules, attachments,
and amendments) available to any party in interest for
inspection and copying not later than 10 days after receiv-
ing 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
thereafter 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 debt-
or of the debtor’s income and expenditures in the preced-
ing tax year and monthly net income, showing how cal-
culated. Such statement shall disclose the amount and
sources of income of the debtor, the identity of any per-
sons responsible with the debtor for the support of any
dependents of the debtor, and any persons who contrib-
uted and the amount contributed to the household in
134
which the debtor resides. Such tax returns, amendments
and statement of income and expenditures shall be avail-
able to the United States trustee, any bankruptcy admin-
istrator, any trustee and any party in interest for inspec-
tion 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
amended 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
petition without the need for any order of court, but any
party in interest may request the court to enter an order
dismissing the case and the court shall, if so requested,
enter an order of dismissal within 5 days of such request.
Upon request 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 re-
135
quired 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
interest 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 dismissing 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
amended—
(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
137
period, but 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 cur-
rent monthly total 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 re-
ported for a family of equal or lesser size or, in the case
of a household of 1 person, not less than the national me-
dian household income for 1 earner, as of the date of the
modification and shall be 3 years if the current monthly
total income is less than the highest national median fam-
ily income reported for a family of equal or lesser size or,
in the case of a household of 1 person, less than the na-
tional median household income for 1 earner as of the date
of the modification.’’.
138
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 attor-
ney be submitted only after the debtor or the debtor’s at-
torney has made reasonable inquiry to verify that the in-
formation 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 follow-
ing:
‘‘§ 1293. Bankruptcy appeals
‘‘The courts of appeals (other the United States
Court of Appeals for the Federal Circuit) shall have juris-
diction of appeals from the following:
139
‘‘(1) Final orders and judgments of bankruptcy
courts entered under—
‘‘(A) section 157(b) of this title in core
proceedings 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 pro-
ceedings, 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 judg-
ment 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
140
11, in a proceeding arising under title 11, or in a
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 sub-
stantial ground for difference of opinion;
and
‘‘(ii) an immediate appeal from such
order may materially advance the ultimate
termination of such case or such proceed-
ing; 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
141
‘‘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
establish 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—
142
(A) by striking ‘‘The’’ and inserting ‘‘Until
the plan is confirmed or the case is converted
(whichever occurs first) the’’; and
(B) by striking ‘‘less than $300,000;’’ and
inserting ‘‘less than $300,000. Until the case is
converted, dismissed, or closed (whichever oc-
curs 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.
SEC. 414. STUDY OF BANKRUPTCY IMPACT OF CREDIT EX-
TENDED TO DEPENDENT STUDENTS.
Not later than 1 year after the date of the enactment
of this Act, the Comptroller General of the United States
shall—
(1) conduct a study regarding the impact that
the extension of credit to individuals who are—
(A) claimed as dependents for purposes of
the Internal Revenue Code of 1986; and
(B) enrolled in post-secondary educational
institutions,
has on the rate of cases filed under title 11 of the
United States Code; and
143
(2) submit to the Speaker of the House of Rep-
resentatives and the President pro tempore of the
Senate a report summarizing such study.
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
section:
‘‘§ 159. Bankruptcy statistics
‘‘The Director of the Executive Office for United
States Trustees shall compile statistics regarding individ-
ual debtors with primarily consumer debts seeking relief
under chapters 7, 11, and 13 of title 11. The Executive
Office for United States Trustees shall compile such sta-
tistics, in such form as shall be determined by such Office,
in consultation with the Administrative Office of the
United States Courts, and make them public, and report
annually to the Congress on the information collected, and
on its analysis thereof, 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 dis-
trict, and shall include the following:
‘‘(1) Total assets and total liabilities of such
debtors, and in each category of assets and liabil-
ities, as reported in the schedules prescribed pursu-
144
ant to section 2075 of this title and filed by such
debtors.
‘‘(2) The current monthly total income, pro-
jected 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
between 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 pre-
dominantly 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 pe-
riod in which a reaffirmation was filed and the total
number 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 attorney, and of those the number of cases in
which the reaffirmation was approved by the court.
‘‘(6) With respect to cases filed under chapter
13 of title 11—
145
‘‘(A) the number of cases in which a final
order was entered determining the value of
property securing a claim less than the claim,
and the total number of such orders in the re-
porting period; and
‘‘(B) the number of cases dismissed for
failure 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
subsection (a) shall take effect 18 months after the date
of the enactment of this Act.
SEC. 442. UNIFORM RULES FOR THE COLLECTION OF BANK-
RUPTCY DATA.
(a) AMENDMENT.—Title 28 of the United States
Code is amended by inserting after section 589a the fol-
lowing:
‘‘§ 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
146
‘‘(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 facili-
tate compilation of data and maximum possible access of
the public, both by physical inspection at 1 or more central
filing locations, and by electronic access through the Inter-
net 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 At-
torney General shall strike the best achievable practical
balance between—
‘‘(1) the reasonable needs of the public for in-
formation about the operational results of the Fed-
eral bankruptcy system; and
‘‘(2) economy, simplicity, and lack of undue
burden on persons with a duty to file reports.
147
‘‘(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,
148
in the discretion of the Attorney General, shall propose,
include—
‘‘(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 re-
porting period since the case was filed;
‘‘(4) cash receipts, cash disbursements and
profitability of the debtor for the most recent period
and cumulatively since the date of the order for re-
lief;
‘‘(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 (sepa-
rately 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
149
the holders, expressed in aggregate dollar values
and, 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
usable electronic form in bulk to the public subject
to such appropriate privacy concerns and safeguards
as the Judicial Conference of the United States may
determine; 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.
150
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 ex-
tent 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)’’, in-
sert ‘‘(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
incurred under chapter 7 of this title and shall not
include 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
estate; 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
151
and expenses of preserving or disposing of that prop-
erty.
‘‘(f) Notwithstanding the exclusion of ad valorem tax
liens set forth in this section and subject to the require-
ments of subsection (e)—
‘‘(1) claims for wages, salaries, and commis-
sions that are entitled to priority under section
507(a)(3) of this title; or
‘‘(2) claims for contributions to an employee
benefit plan entitled to priority under section
507(a)(4) of this title,
may be paid from property of the estate which secures
a tax lien, or the proceeds of such property.’’.
(b) DETERMINATION OF TAX LIABILITY.—Section
505(a)(2) of title 11, United States Code, is amended—
(1) in subparagraph (A), by striking ‘‘or’’ at
the end;
(2) in subparagraph (B), by striking the period
at the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(C) the amount or legality of any amount aris-
ing in connection with an ad valorem tax on real or
personal property of the estate, if the applicable pe-
riod for contesting or redetermining that amount
152
under any law (other than a bankruptcy law) has ex-
pired.’’.
SEC. 502. ENFORCEMENT OF CHILD AND SPOUSAL SUP-
PORT.
Section 522(c)(1) of title 11, United States Code, is
amended to read as follows:
‘‘(1) a debt of a kind specified in paragraph (1)
or (5) of section 523(a) of this title, and such prop-
erty shall be liable for a debt of a kind specified in
such paragraph (5) notwithstanding any State law
to the contrary;’’.
SEC. 503. EFFECTIVE NOTICE TO GOVERNMENT.
(a) 
EFFECTIVE
NOTICE
TO
GOVERNMENTAL
UNITS.—Section 342 of title 11, United States Code, as
amended by section 405, is amended by adding at the end
the following:
‘‘(g) If a debtor lists a governmental unit as a credi-
tor in a list or schedule, any notice required to be given
by the debtor under this title, any rule, any applicable law,
or any order of the court, shall identify the department,
agency, or instrumentality through which the debtor is in-
debted. The debtor shall identify (with information such
as a taxpayer identification number, loan, account or con-
tract number, or real estate parcel number, where applica-
ble), and describe the underlying basis for the govern-