H.L.C.
date as the court may determine for cause by order
entered within that 90-day period)—
‘‘(A) the debtor has filed a plan of reorga-
nization that has a reasonable possibility of
being confirmed within a reasonable time; or
‘‘(B) the debtor has commenced monthly
payments to each creditor whose claim is secured
by such real estate (other than a claim secured
by a judgment lien or by an unmatured statu-
tory lien), which payments are in an amount
equal to interest at a current fair market rate on
the value of the creditor’s interest in the real es-
tate.’’.
SEC. 219. LEASES OF PERSONAL PROPERTY.
(a) ASSUMPTION.—Section 365(b)(2) of title 11, Unit-
ed States Code is amended—
(1) in subparagraph (B) by striking ‘‘or’’ at the
end,
(2) in subparagraph (C) by striking the period
and inserting ‘‘; or’’,
(3) by adding at the end the following:
‘‘(D) the satisfaction of any penalty rate or pro-
vision relating to a default arising from any failure
by the debtor to perform nonmonetary obligations
under the executory contract or unexpired lease.’’.
H.L.C.
(b) PERFORMANCE.—Section 365(d) of title 11, United
States Code is amended by adding at the end the following:
‘‘(10) The trustee shall timely perform all of the
obligations of the debtor, except those specified in sec-
tion 365(b)(2), first arising from or after 60 days
after the order for relief in a case under chapter 11
of this title under an unexpired lease of personal
property (other than personal property leased to an
individual primarily for personal, family, or house-
hold purposes), until such lease is assumed or rejected
notwithstanding section 503(b)(1) of this title, unless
the court, after notice and a hearing and based the
equities of the case, orders otherwise with respect to
the obligations or timely performance thereof. This
subsection shall not be deemed to affect the trustee’s
obligations under the provisions of subsection (b) or
(f). Acceptance of any such performance does not con-
stitute waiver or relinquishment of the lessor’s rights
under such lease or under this title.’’.
(c) LIMITATION.—Section 363(e) of title 11, United
States Code is amended by adding at the end the following:
‘‘This subsection also applies to property that is subject to
any unexpired lease of personal property (to the exclusion
of such property being subject to an order to grant relief
from the stay under section 362).’’.
H.L.C.
SEC. 220. EXEMPTION FOR SMALL BUSINESS INVESTMENT
COMPANIES.
Section 109(b)(2) of title 11, United States Code, is
amended by inserting after ‘‘homestead association,’’ the fol-
lowing: ‘‘a small business investment company licensed by
the Small Business Administration under subsection (c) or
(d) of section 301 of the Small Business Investment Act of
1958,’’.
SEC. 221. PAYMENT OF TAXES WITH BORROWED FUNDS.
Section 523(a) of title 11, United States Code is
amended—
(1) in paragraph (13) by striking the period at
the end and inserting a semicolon, and
(2) by adding at the end the following:
‘‘(14) incurred to pay a tax to the United States
that would be nondischargeable pursuant to para-
graph (1);’’.
SEC. 222. RETURN OF GOODS.
(a) LIMITATION ON AVOIDING POWERS.—Section 546
of title 11, United States Code, is amended by adding at
the end the following:
‘‘(g) Notwithstanding the rights and powers of a trust-
ee under sections 544(a), 545, 547, 549, and 553, if the
court determines on a motion by the trustee made not later
than 120 days after the date of the order for relief in a
case under chapter 11 of this title and after notice and a
H.L.C.
hearing, that a return is in the best interests of the estate,
the debtor, with the consent of a creditor, may return goods
shipped to the debtor by the creditor before the commence-
ment of the case, and the creditor may offset the purchase
price of such goods against any claim of the creditor against
the debtor that arose before the commencement of the case.’’.
(b) SETOFF.—Section 553(b)(1) is amended by insert-
ing ‘‘546(h),’’ after ‘‘365(h),’’.
SEC. 223. PROCEEDS OF MONEY ORDER AGREEMENTS.
Section 541(b) of title 11, United States Codeis amend-
ed—
(1) in paragraph (3) by striking ‘‘or’’ at the end
and inserting a semicolon,
(2) in paragraph (4) by striking the period at
the end and inserting ‘‘; or’’, and
(3) by inserting after paragraph (4) the follow-
ing:
‘‘(5) any interest in cash or cash equivalents that
constitute proceeds of a sale by the debtor of a money
order that is made—
‘‘(A) on or after the date that is 14 days
prior to the date on which the petition is filed;
and
‘‘(B) under an agreement with a money
order issuer that prohibits the commingling of
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such proceeds with property of the debtor (not-
withstanding that, contrary to the agreement, the
proceeds may have been commingled with prop-
erty of the debtor),
unless the money order issuer had not taken action,
prior to the filing of the petition, to require compli-
ance with the prohibition.’’.
SEC. 224. TRUSTEE DUTIES; PROFESSIONAL FEES.
(a) TRUSTEE’S DUTIES.—Section 586(a)(3)(A) of title
28, United States Code, is amended to read as follows:
‘‘(A)(i) reviewing, in accordance with proce-
dural guidelines adopted by the Executive Office
of the United States Trustee (which guidelines
shall be applied uniformly by the United States
trustee except when circumstances warrant dif-
ferent treatment), applications filed for com-
pensation and reimbursement under section 330
of title 11; and
‘‘(ii) filing with the court comments with
respect to such application and, if the United
States Trustee considers it to be appropriate, ob-
jections to such application.’’.
(b) PROFESSIONAL FEES.—Section 330(a) of title 11,
United States Code, is amended to read as follows:
H.L.C.
‘‘(a)(1) After notice to the parties in interest and the
United States trustee and a hearing, and subject to sections
326, 328, and 329, the court may award to a trustee, an
examiner, a professional person employed under section 327
or 1103—
‘‘(A) reasonable compensation for actual, nec-
essary services rendered by the trustee, examiner, pro-
fessional person, or attorney and by any paraprofes-
sional person employed by any such person; and
‘‘(B) reimbursement for actual, necessary ex-
penses.
‘‘(2) The court may, on its own motion or on the mo-
tion of the United States Trustee, the United States Trustee
for the District or Region, the trustee for the estate, or any
other party in interest, award compensation that is less
than the amount of compensation that is requested.
‘‘(3)(A) In determining the amount of reasonable com-
pensation to be awarded, the court shall consider the nature,
the extent, and the value of such services, taking into ac-
count all relevant factors, including—
‘‘(A) the time spent on such services;
‘‘(B) the rates charged for such services;
‘‘(C) whether the services were necessary to the
administration of, or beneficial at the time at which
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the service was rendered toward the completion of, a
case under this title;
‘‘(D) whether the services were performed within
a reasonable amount of time commensurate with the
complexity, importance, and nature of the problem,
issue, or task addressed; and
‘‘(E) whether the compensation is reasonable
based on the customary compensation charged by
comparably skilled practitioners in cases other than
cases under this title.
‘‘(4)(A) Except as provided in subparagraph (B), the
court shall not allow compensation for—
‘‘(i) unnecessary duplication of services; or
‘‘(ii) services that were not—
‘‘(I) reasonably likely to benefit the debtor’s
estate; or
‘‘(II) necessary to the administration of the
case.
‘‘(B) In a chapter 12 or chapter 13 case in which the
debtor is an individual, the court may allow reasonable
compensation to the debtor’s attorney for representing the
interests of the debtor in connection with the bankruptcy
case based on a consideration of the benefit and necessity
of such services to the debtor and the other factors set forth
in this section.
H.L.C.
(1) by redesignating subsection (c) as subsection
(d), and
(2) by inserting after subsection (b) the follow-
ing:
‘‘(c) Notwithstanding subsection (b)(2) and applicable
nonbankruptcy law—
‘‘(1) a default with respect to, or that gave rise
to, a lien on the debtor’s principal residence may be
cured under paragraph (3) or (5) of subsection (b)
until such residence is sold at a foreclosure sale that
is 
conducted 
in 
accordance 
with 
applicable
nonbankruptcy law; and
‘‘(2) in a case in which the last payment on the
original payment schedule for a claim secured only by
a security interest in real property that is the debtor’s
principal residence is due before the date on which the
final payment under the plan is due, the plan may
provide for the payment of the claim as modified pur-
suant to section 1325(a)(5) of this title.’’.
SEC. 302. NONDISCHARGEABILITY OF FINE UNDER CHAP-
TER 13.
Section 1328(a)(3) of title 11, United States Code, is
amended by inserting ‘‘, or a criminal fine,’’ after ‘‘restitu-
tion’’.
H.L.C.
SEC. 303. IMPAIRMENT OF EXEMPTIONS.
Section 522(f) of title 11, United States Code, is
amended—
(1) in paragraph (2)—
(A) by redesignating subparagraphs (A),
(B), and (C) as clauses (i), (ii), and (iii), respec-
tively, and
(B) by striking ‘‘(2)’’ and inserting ‘‘(B),
(2) by redesignating paragraph (1) as subpara-
graph (A),
(3) by inserting ‘‘(1)’’ before ‘‘Notwithstanding’’,
and
(4) by adding at the end the following:
‘‘(2)(A) For the purposes of this subsection, a lien shall
be considered to impair an exemption to the extent that the
sum of—
‘‘(i) the lien,
‘‘(ii) all other liens on the property; and
‘‘(iii) the amount of the exemption that the debt-
or could claim if there were no liens on the property;
exceeds the value that the debtor’s interest in the property
would have in the absence of any liens.
‘‘(B) In the case of a property subject to more than
1 lien, a lien that has been avoided shall not be considered
in making the calculation under subparagraph (A) with re-
spect to other liens.
H.L.C.
‘‘(C) This paragraph shall not apply with re-
spect to a judgment arising out of a mortgage fore-
closure.’’.
SEC. 304. PROTECTION OF CHILD SUPPORT AND ALIMONY.
(a) DEFINITION.—Section 101 of title 11, United
States Code, is amended by inserting after paragraph (12)
the following:
‘‘(12A) ‘debt for child support’ means a debt of
a kind specified in section 523(a)(5) of this title for
maintenance or support of a child of the debtor;’’.
(b) 
RELIEF
FROM
AUTOMATIC
STAY.—Section
362(b)(2) of title 11, United States Code, is amended to
read as follows:
‘‘(2) under subsection (a) of this section—
‘‘(A) of the commencement or continuation
of an action or proceeding for—
‘‘(i) the establishment of paternity; or
‘‘(ii) the establishment or modification
of an order for alimony, maintenance, or
support; or
‘‘(B) of the collection of alimony, mainte-
nance, or support from property that is not
property of the estate;’’.
(c) PRIORITY OF CLAIMS.—Section 507(a) of title 11,
United States Code, is amended—
H.L.C.
(1) in paragraph (8) by striking ‘‘(8) Eighth’’
and inserting ‘‘(9) Ninth’’,
(2) in paragraph (7) by striking ‘‘(7) Seventh’’
and inserting ‘‘(8) Eighth’’, and
(3) by inserting after paragraph (6) the follow-
ing:
‘‘(7) Seventh, 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, de-
termination made in accordance with State or terri-
torial law by a governmental unit, or property settle-
ment 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 designated as ali-
mony, maintenance, or support, unless such li-
ability is actually in the nature of alimony,
maintenance or support.’’.
(d) PROTECTION OF LIENS.—Section 522(f)(1)(A) of
title 11, United States Code, as amended by section 303,
is amended by inserting after ‘‘lien’’ the following:
‘‘, other than a judicial a lien that secures a debt—
H.L.C.
‘‘(i) to a spouse, former spouse, or child of
the debtor, 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 governmental unit, or property settlement
agreement; and
‘‘(ii) to the extent that such debt—
‘‘(I) is not assigned to another entity,
voluntarily, by operation of law, or other-
wise; and
‘‘(II) includes a liability designated as
alimony, maintenance, or support, unless
such liability is actually in the nature of
alimony, maintenance or support.’’.
(e) EXCEPTION TO DISCHARGE.—Section 523 of title
11, United States Code, as amended by section 221, is
amended by adding at the end the following:
‘‘(15) not of the kind described in paragraph (5)
that is incurred by the debtor in the course of a di-
vorce or separation or in connection with a separa-
tion agreement, divorce decree or other order of a
court of record, a determination made in accordance
H.L.C.
with State or territorial law by a governmental unit
unless—
‘‘(A) the debtor does not have the ability to
pay such debt from income or property of the
debtor not reasonably necessary to be expended
for the maintenance or support of the debtor or
a dependent of the debtor and, if the debtor is en-
gaged in a business, for the payment of expendi-
tures necessary for the continuation, preserva-
tion, and operation of such business; or
‘‘(B) discharging such debt would result in
a benefit to the debtor that outweighs the det-
rimental consequences to a spouse, former spouse,
or child of the debtor;’’, and
(2) in subsection (c)(1) by striking ‘‘or (6)’’ each
place it appears and inserting ‘‘(6), or (15)’’.
(f) PROTECTION AGAINST TRUSTEE AVOIDANCE.—Sec-
tion 547(c) of title 11, United States Code, is amended—
(1) in paragraph (6) by striking ‘‘or’’ at the
end,
(2) by redesignating paragraph (7) as para-
graph (8), and
(3) by inserting after paragraph (6) the fol-
lowing: