Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
PL 99-554 (H.R.5316), enacted 10/27/1986

100 STAT. 3088 
PUBLIC LAW 99-554—OCT. 27, 1986 
Public Law 99-554 
99th Congress 
• 
An Act 
To amend title 28 of the United States Code to provide for the appointment of 
Oct 27 1986 
additional bankruptcy judges, to provide for the appointment of United States 
— 
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trustees to serve in bankruptcy cases in judicial districts throughout the United 
LH.K. OtJloj 
States, to make certain changes with respect to the role of United States trustees in 
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such cases, and for other purposes. 
Bankruptcy 
Be it enacted by the Senate and House of Representatives of the 
Judges, 
United States of America in Congress assembled, That this Act may 
KllSees 
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be cited as the "Bankruptcy Judges, United States Trustees, and 
and Family 
Family Farmer Bankruptcy Act of 1986". 
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TITLE I—AMENDMENTS TO TITLE 28 OF 
28usc58inot^ 
THE UNITED STATES CODE 
Subtitle A—Appointment of Bankruptcy 
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. 
Judges ,, 
state listing. 
SEC. 101. ADDITIONAL BANKRUPTCY JUDGES. 
Section 152(a)(2) of title 28, United States Code, is amended— 
(1) in the item relating to the eastern district and the western 
district of Arkansas by striking out "2" and inserting in Heu 
thereof "3", 
(2) in the item relating to the northern district of California 
by striking out "7" and inserting in lieu thereof "9", 
(3) in the item relating to the eastern district of California by 
striking out "4" and inserting in lieu thereof "6", 
(4) in the item relating to the central district of California by 
striking out "12" and inserting in lieu thereof "19", 
(5) in the item relating to the southern district of California 
by striking out "3" and inserting in lieu thereof "4", 
(6) in the item relating to the middle district of Florida by 
striking out "2" and inserting in lieu thereof "4", 
(7) in the item relating to the northern district of Georgia by 
striking out "4" and inserting in lieu thereof "6", 
(8) in the item relating to the southern district of Georgia by 
striking out " 1 " and inserting in lieu thereof "2", 
(9) in the item relating to the district of Idaho by striking out 
" 1 " and inserting in lieu thereof "2", 
(10) in the item relating to the northern district of Illinois by 
striking out "8" and inserting in lieu thereof "10", 
(11) in the item relating to the central district of Illinois by 
striking out "2" and inserting in lieu thereof "3", 
(12) in the item relating to the northern district of Indiana by 
striking out "2" and inserting in lieu thereof "3", 
(13) in the item relating to the northern district of Iowa by 
striking out " 1 " and inserting in lieu thereof "2", 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3089 
(14) in the item relating to the southern district of Iowa by 
striking out " 1 " and inserting in Heu thereof "2", 
(15) in the item relating to the western district of Kentucky 
by striking out "2" and inserting in lieu thereof "3", 
(16) in the item relating to the western district of Louisiana 
by striking out "2" and inserting in lieu thereof "3", 
(17) in the item relating to the district of Maryland by strik-
ing out "2" and inserting in lieu thereof "3", 
(18) in the item relating to the western district of Michigan by 
striking out "2" and inserting in lieu thereof "3", 
(19) in the item relating to the district of Nebraska by striking 
out " 1 " and inserting in lieu thereof "2", 
(20) in the item relating to the district of Nevada by striking 
out "2" and inserting in lieu thereof "3", 
(21) in the item relating to the district of New Jersey by 
striking out "5" and inserting in lieu thereof "7", 
(22) in the item relating to the western district of North 
Carolina by striking out " 1 " and inserting in lieu thereof "2", 
(23) in the item relating to the northern district of Oklahoma 
by striking out " 1 " and inserting in lieu thereof "2", 
(24) in the item relating to the western district of Oklahoma 
by striking out "2" and inserting in lieu thereof "3", 
(25) in the item relating to the district of Oregon by striking 
out "4" and inserting in lieu thereof "5", 
(26) in the item relating to the western district of Pennsylva-
nia by striking out "3" and inserting in lieu thereof "4", 
(27) in the item relating to the district of South Carolina by 
striking out " 1 " and inserting in lieu thereof "2", 
' 
(28) in the item relating to the district of South Dakota by 
striking out " 1 " and inserting in lieu thereof "2". 
(29) in the item relating to the eastern district of Tennessee 
by striking out "2" and inserting in lieu thereof "3", 
(30) in the item relating to the western district of Tennessee 
by striking out "2" and inserting in lieu thereof "3", 
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(31) in the item relating to the northern district of Texas by 
striking out "4" and inserting in lieu thereof "5", 
(32) in the item relating to the southern district of Texas by 
striking out "3" and inserting in lieu thereof "6", 
(33) in the item relating to the western district of Texas by 
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striking out "2" and inserting in lieu thereof "3", 
(34) in the item relating to the district of Utah by striking out 
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"2" and inserting in lieu thereof "3", 
(35) in the item relating to the eastern district of Virginia by 
striking out "3" and inserting in lieu thereof "4", 
(36) in the item relating to the eastern district of Washington 
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by striking out " 1 " and inserting in lieu thereof "2", 
(37) in the item relating to the western district of Washington 
by striking out "4" and inserting in lieu thereof "5", and 
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(38) in the item relating to the eastern district of Wisconsin by 
: 
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striking out "3" and inserting in lieu thereof "4". 
SEC. 102. QUALIFICATIONS FOR APPOINTMENT OF BANKRUPTCY JUDGES. 
28 USC 152 note. 
Section 120(cX2) of the Bankruptcy Amendments and Federal 
Judgeship Act of 1984 (Public Law 98-353; 98 Stat. 345) is amended 
by striking out "or the District of Columbia bar," and inserting in 
lieu thereof "the District of Columbia bar, or the bar of the 
Commonwealth of Puerto Rico,". 
100 STAT. 3090 
PUBLIC LAW 99-554—OCT. 27, 1986 
SEC. 103. DIVISION OF BUSINESS AMONd BANKRUPTCY JUI)(JES. 
Section 156 of title 28, United States Code, is amended by adding 
at the end thereof the following: 
"(d) No office of the bajikruptcy clerk of court may be consolidated 
with the district clerk of court office without the prior approval of 
the Judicial Conference and the Congress.". 
Subtitle B—Appointment of United States 
Trustees and Related Matters 
State listing. 
SEC. 111. APPOINTMENT OF UNITED STATES TRUSTEES. 
(a) APPOINTMENT NATIONWIDE OF UNITED STATES TRUSTEES.—Sec-
tion 581(a) of title 28, United States Code, is amended to read as 
follows: 
"(a) The Attorney General shall appoint one United States trustee 
for each of the following regions composed of Federal judicial dis-
tricts (without regard to section 451): 
"(1) The judicial districts established for the States of Maine, 
: Massachusetts, New Hampshire, and Rhode Island. 
"(2) The judicial districts established for the States of 
,:.si. Connecticut, New York, and Vermont. 
"(3) The judicial districts established for the States of Dela-
-is • ware. New Jersey, and Pennsylvania. 
"(4) The judicial districts established for the States of Mary-
•<':i 
land, North Carolina, South Carolina, Virginia, and West Vir-
ginia and for the District of Columbia. 
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"(5) The judicial districts established for the States of Louisi-
ana and Mississippi. 
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"(6) The Northern District of Texas and the Eastern District 
of Texas. 
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"(7) The Southern District of Texas and the Western District 
of Texas. 
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"(8) The judicial districts established for the States of Ken-
tucky and Tennessee. 
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"(9) The judicial districts established for the States of Michi-
gan and Ohio. 
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"(10) The Central District of Illinois and the Southern District 
of Illinois; £ind the judicial districts established for the State of 
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Indiana. 
"(11) The Northern District of Illinois; and the judicial dis-
•d 
tricts established for the State of Wisconsin. 
"(12) The judicial districts established for the States of Min-
uet nesota, Iowa, North Dakota, and South Dakota. 
"(13) The judicial districts established for the States of Ar-
,u>! kansas, Nebraska, and Missouri. 
, . , - , < , • , . 
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"(14) The District of Arizona. 
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"(15) The Southern District of California; and the judicial 
districts established for the State of Hawaii, and for Guam and 
the Commonwealth of the Northern Mariana Islands. 
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"(16) The Central District of California. 
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"(17) The Eastern District of California and the Northern 
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District of California; and the judicial district established for 
the State of Nevada. 
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"(18) The judicial districts established for the States of 
Alaska, Idaho (exclusive of Yellowstone National Park), Mon-
Guam. 
Northern 
Mariana 
Islands. 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3091 
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tana (exclusive of Yellowstone National Park), Oregon, and 
Washington. 
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"(19) The judicial districts established for the States of Colo-
rado, Utah, and Wyoming (including those portions of Yellow-
stone National Park situated in the States of Montana and 
Idaho). 
' ' 
"(20) The judicial districts established for the States of 
Kansas, New Mexico, and Oklahoma. 
"(21) The judicial districts established for the States of Ala- 
Puerto Rico, 
bama, Florida, and Georgia and for the Commonwealth of 
Virgin Islands. 
Puerto Rico and the Virgin Islands of the United States.". 
(b) TERM OF OFFICE.—Section 581(b) of title 28, United States Code, 
is amended— 
(1) by striking out "seven years" and inserting in lieu thereof 
"five years", and 
(2) by striking out "Office" and inserting in lieu thereof 
"office". 
(c) REMOVAL OF UNITED STATES TRUSTEES.—Section 581(c) of title 
28, United States Code, is amended by striking out "for cause". 
(d) REMOVAL OF ASSISTANT UNITED STATES TRUSTEES.—Section 582 
of title 28, United States Code, is amended— 
(1) in subsection (a) by striking out "district" and inserting in 
lieu thereof "region", and 
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(2) in subsection (b) by striking out "for cause". 
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SEC. 112. VACANCIES IN OFFICE OF UNITED STATES TRUSTEE. 
Section 585 of title 28, United States Code, is amended to read as 
follows: 
"§ 585. Vacancies 
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"(a) The Attorney General may appoint an acting United States 
trustee for a region in which the office of the United States trustee 
is vacant. The individual so appointed may serve until the date on 
which the vacancy is filled by appointment under section 581 of this 
title or by designation under subsection (b) of this section. 
"(b) The Attorney General may designate a United States trustee 
to serve in not more than two regions for such time as the public 
interest requires.". 
SEC. 113. DUTIES OF UNITED STATES TRUSTEES. 
(a) SUPERVISION AND ADMINISTRATION.—Section 586(a) of title 28, 
United States Code, is amended— 
(1) by striking out "his district" and inserting in lieu thereof 
"the region for which such United States trustee is appointed", 
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(2) in paragraph (3)— 
(A) by striking out the semicolon and inserting in lieu 
"•'• 
thereof "by, whenever the United States trustee considers 
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it to be appropriate—", and 
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(B) by adding at the end of such paragraph the following: 
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"(A) monitoring applications for compensation and re-
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imbursement filed under section 330 of title 11 and, when-
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ever the United States trustee deems it to be appropriate, 
filing with the court comments with respect to any of such 
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applications; 
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"(B) monitoring plans and disclosure statements filed in 
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cases under chapter 11 of title 11 and filing with the court, 
11 USC llOl et 
in connection with hearings under sections 1125 and 1128 of 
««9-
100 STAT. 3092 
PUBLIC LAW 99-554—OCT. 27, 1986 
such title, comments with respect to such plans and disclo-
sure statements; 
"(C) monitoring plans filed under chapters 12 and 13 of 
Post, p . 3105; 
title 11 and filing with the court, in connection with hear-
11 use 1301 et 
ings under sections 1224, 1229, 1324, and 1329 of such title, 
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comments with respect to such plans; 
; 
"(D) taking such action as the United States trustee 
deems to be appropriate to ensure that all reports, sched-
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ules, and fees required to be filed under title 11 and this 
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'i-. title by the debtor are properly and timely filed; 
"(E) monitoring creditors' committees appointed under 
title 11; 
"(F) notifying the appropriate United States attorney of 
matters which relate to the occurrence of any action which 
may constitute a crime under the laws of the United States 
i • 
and, on the request of the United States attorney, assisting 
the United States attorney in carrying out prosecutions 
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based on such action; 
"(G) monitoring the progress of cases under title 11 and 
taking such actions as the United States trustee deems to 
be appropriate to prevent undue delay in such progress; and 
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"(H) monitoring applications filed under section 327 of 
title 11 and, whenever the United States trustee deems it to 
be appropriate, filing with the court comments with respect 
to the approval of such applications;", and 
(3) in paragraph (5) by inserting before the semicolon the 
following: "and this title, and such duties consistent with title 
11 and this title as the Attorney General may prescribe". 
(b) QuAUFiCATiONS OF TRUSTEES.—Section 586(b) of title 28, United 
States Code, is amended to read as follows: 
"(b) If the number of cases under chapter 12 or 13 of title 11 
commenced in a particular region so warrants, the United States 
trustee for such region may, subject to the approval of the Attorney 
General, appoint one or more individuals to serve as standing 
trustee, or designate One or more assistant United States trustees to 
serve in cases under such chapter. The United States trustee for 
such region shall supervise any such individual appointed £is stand-
ing trustee in the performance of the duties of standing trustee.". 
(c) APPOINTMENT AND COMPENSATION OF TRUSTEES.—Subsections 
(d) and (e) of section 586 of title 28, United States Code, are amended 
to read as follows: 
"(d) The Attorney General shall prescribe by rule qualifications 
for membership on the panels established by United States trustees 
under paragraph (a)(1) of this section, and qualifications for appoint-
ment under subsection (b) of this section to serve as standing trustee 
in C£ises under chapter 12 or 13 of title 11. The Attorney General 
may not require that an individual be an attorney in order to 
qualify for appointment under subsection (b) of this section to serve 
as standing trustee in cases under chapter 12 or 13 of title 11. 
"(eXD The Attorney General, after consultation with a United 
States trustee that has appointed an individual under subsection (b) 
of this section to serve as standing trustee in cases under chapter 12 
or 13 of title 11, shall fix— 
"(A) a maximum annual compensation for such individual, 
i 
not to exceed the annual rate of basic pay in effect for step 1 of 
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ity • 
j;? grade GS-16 of the General Schedule prescribed under section 
5332 of title 5; and 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3093 
"(B) a percentage fee not to exceed— 
"(i) in the case of a debtor who is not a family farmer, ten 
percent; or 
^, 
"(ii) in the case of a debtor who is a family farmer, the 
j^^^ [MUM 
sum of— 
"(I) not to exceed ten percent of the payments made 
under the plan of such debtor, with respect to pay- 
jmz feru «2 
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ments in an aggregate amount not to exceed $450,000; 
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and 
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"(II) three percent of payments made under the plan 
; 
of such debtor, with respect to payments made after the 
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aggregate amount of payments made under the plan 
^; 
exceeds $450,000; 
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based on such maximum annual compensation and the actual, 
necessary expenses incurred by such individual as standing 
trustee. 
"(2) Such individual shall collect such percentage fee from all 
payments received by such individual under plans in the cases 
under chapter 12 or 13 of title 11 for which such individual serves as 
Post, p. 3105; 
standing trustee. Such individual shall pay to the United States 
n USC 1301 et 
trustee, and the United States trustee shall deposit in the United 
*^^' 
States Trustee System Fund— 
"(A) any amount by which the actual compensation of such 
individual exceeds 5 per centum upon all payments received 
under plans in cases under chapter 12 or 13 of title 11 for which 
such individual serves as standing trustee; and 
"(B) any amount by which the percentage for all such cases 
* 
exceeds— 
^ 
"(i) such individual's actual compensation for such cases, 
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as adjusted under subparagraph (A) of paragraph (1); plus 
"(ii) the actual, necessary expenses incurred by such 
to i J 
individual as standing trustee in such cases. Subject to the 
approval of the Attorney General, any or all of the interest 
''^^% 
earned from the deposit of payments under plans by such 
8iili : 
individual may be utilized to pay actual, necessary expenses 
without regard to the percentage limitation contained in 
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subparagraph (d)(1)(B) of this section.". 
SEC. 114. SALARIES OF UNITED STATES TRUSTEES AND ASSISTANT 
UNITED STATES TRUSTEES. 
(a) FIXING OF SALARIES.—Section 587 of title 28, United States 
Code, is amended to read as follows: 
"§ 587. Salaries 
"Subject to sections 5315 through 5317 of title 5, the Attorney 
General shall fix the annual salaries of United States trustees and 
assistant United States trustees at rates of compensation not in 
excess of the rate of basic compensation provided for Executive 
Level IV of the Executive Schedule set forth in section 5315 of title 
5, United States Code.". 
(b) TEMPORARY SUSPENSION OF LIMITATION ON APPOINTMENTS.— 
28 use 589 note. 
During the period beginning on the effective date of this Act and 
ending on October 1, 1989, the provisions of title 5 of the United 
States Code governing appointments in the competitive service shall 
not apply with respect to appointments under section 589 of title 28, 
t? xr^j? 
United States Code. 
71-194 0 - 89 - 7 : QL. 3 PartA 
100 STAT. 3094 
PUBLIC LAW 99-554—OCT. 27, 1986 
SEC. 
1
1
5
. 
UNITED 
STATES 
TRUSTEE 
SYSTEM 
FUND. 
(^) AMENDMENT TO TITLE 28 OF THE UNITED STATES CODE.—Chap-
ter 39 of title 28, United States Code, as added by section 224 of the 
28 use 581. 
Act of November 6, 1978 (Public Law 95-598; 92 Stat. 2662), is 
amended by adding at the end thereof the following: 
28 use 589a. 
"§ 589a. United States Trustee System Fund 
"(a) There is hereby established in the Treasury of the United 
States a special fund to be known as the 'United States Trustee 
System Fund' (hereinafter in this section referred to as the 'Fund'). 
Monies in the Fund shall be available to the Attorney General 
without fiscal year limitation in such amounts as may be specified 
in appropriations Acts for the following purposes in connection with 
the operations of United States trustees— 
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"(1) salaries and related employee benefits; 
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"(2) travel and transportation; 
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"(3) rental of space; 
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"^^^ communication, utilities, and miscellaneous computer 
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charges; 
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"(5) security investigations and audits; 
"(6) supplies, books, and other materials for legal research; 
^^.. 
"(7) furniture and equipment; 
"(8) miscellaneous services, including those obtained by con-
tract; and 
"(9) printing. 
"(b) There shall be deposited in the Fund— 
"(1) one-third of the fees collected under section 1930(aXl) of 
., this title; 
"(2) three-fifths of the fees collected under section 1930(aX3) of 
this title; 
"(3) one-half of the fees collected under section 1930(aX4) of 
this title; 
"(4) one-half of the fees collected under section 1930(aX5); 
"(5) all of the fees collected under section 1930(aX6) of this 
title; 
"(6) three-fourths of the fees collected under the last sentence 
of section 1930(a) of this title; and 
TAi 
"(7) the compensation of trustees received under section 
330(d) of title 11 by the clerks of the bankruptcy courts. 
"(cXD Except as provided in paragraph (2), amounts in the Fund 
which are not currently needed for the purposes specified in subsec-
tion (a) shall be kept on deposit or invested in obligations of, or 
guaranteed by, the United States. 
"(2) On November 1, 1989, and on November 1 of each year 
thereafter, the Secretary of the Treasury shall transfer into the 
general fund of the Treasury the amount, if any, in the Fund that 
exceeds 110 percent o
f
— 
"(A) the amount appropriated for the entire current fiscal 
year for the purposes specified in subsection (a), or 
.ajo0 mi- DfeiJ 8S —. 
"(B) if no appropriation has been made for the entire current 
fiscal year, the annual equivalent of the aggregate amount 
appropriated to date for the current fiscal year for the purposes 
specified in subsection (a). 
Reports. 
"(dXD The Attorney General shall transmit to the Congress, not 
later than 120 days after the end of each fiscal year, a detailed 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3095 
report on the amounts deposited in the Fund and a description of 
r. 
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the expenditures made under this section. 
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"(2) If for each fiscal year in any period of 2 successive fiscal 
years— 
"(A) the aggregate amount deposited under subsection (b) in 
the Fund exceeds 110 percent of expenditures for the purposes 
specified in subsection (a), or 
"(B) the costs incurred for the purposes specified in subsection 
(a) exceed the aggregate amount deposited under subsection (b) 
in the Fund, 
then the Attorney General shall include in such report a rec-
ommendation regarding the manner in which the fees payable 
under section 1930(a) of title 28, United States Code, may be modi-
fied to cause the annual amount deposited in the Fund to more 
closely approximate the annual amount expended from the Fund. 
"(e) There are authorized to be appropriated to the Fund for any 
fiscal year such sums as may be necessary to supplement amounts 
deposited under subsection (b) for the purposes specified in subsec-
tion (a).". 
(b) TECHNICAL AMENDMENT.—The table of sections for chapter 39 
of title 28, United States Code, as added by section 224 of the Act of 
November 6, 1978 (Public Law 95-598; 92 Stat. 2662), is amended by 
28 use 591 et 
adding at the end thereof the following new item: 
seq. 
"589a. United States Trustee System Fund.". 
SEC. 116. PANEL OF TRUSTEES. 
Subsection (f) of section 604 of title 28, United States Code, as 
added by the Act of November 6, 1978 (Public Law 95-598; 92 Stat. 
2549), is repealed. 
SEC. 117. FEES. 
Section 1930(a) of title 28, United States Code, is amended— 
(1) in paragraph (1) by striking out "$60" and inserting in lieu 
thereof "$90", 
.., 
(2) in paragraph (3) by striking out "$200" and inserting in 
lieu thereof "$500", 
^. 
(3) in paragraph (4) by striking out "$500" and inserting in 
C, 
lieu thereof "$1,000", 
(4) by inserting after paragraph (4) the following: 
^ 
"(5) For a case commenced under chapter 12 of title 11, $200, 
Post, p. 3105. 
"(6) In addition to the filing fee paid to the clerk, a quarterly 
„ 
fee shall be paid to the United States trustee, for deposit in the 
jj 
Treasury, in each case under chapter 11 of title 11 for each 
11 USC llOl et 
quarter (including any fraction thereof) until a plan is con- seq. 
firmed or the case is converted or dismissed, whichever occurs 
j^ 
first. 
The fee shall be $150 for each quarter in which disburse-
jjl 
ments total less than $15,000; $300 for each quarter in which 
disbursements total $15,000 or more but less than $150,000; $750 
^ 
for each quarter in which disbursements total $150,000 or more 
but less than $300,000; $2,250 for each quarter in which 
disbursements total $300,000 or more but less than $3,000,000; 
$3,000 for each quarter in which disbursements total $3,000,000 
, ^ 
or more. The fee shall be payable on the last day of the calendar 
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month following the calendar quarter for which the fee is 
,^,j^ 
owed.", and 
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(5) by adding at the end thereof the following: "For convert-
ing, on request of the debtor, a case under chapter 7, or 13 of 
100 STAT. 3096 
PUBLIC LAW 99-554—OCT. 27, 1986 
11 use 701 
title 11, to a case under chapter 11 of title 11, the debtor shall 
et s«9' 
pay to the clerk of the court a fee of $400.". 
imietseq., 1101 
Subtitle C—Miscellaneous Amendments and 
Technical Corrections to Title 28 
SEC. 141. COURT IN LAWRENCE, KANSAS. 
' 
Section 96 of title 28, United States Code, is amended by inserting 
"Lawrence," after "Kansas City,". 
SEC. 
1
4
2
. CUSTODY OF 
BANKRUPTCY COURT 
RECORDS 
AND 
DOCKETS. 
Section 156 of title 28, United States Code, as amended by section 
103 of this Act, is amended by adding at the end thereof the 
following: 
"(e) In a judicial district where a bankruptcy clerk has been 
appointed pursuant to subsection Qo), the bankruptcy clerk shall be 
the official custodian of the records and dockets of the bankruptcy 
court.". 
SEC. 143. CONFORMING AMENDMENT. 
^'^' ;? 
Section 157(b)(2)(B) of title 28, United States Code, is amended by 
inserting ", 12," after "chapter 11". 
SEC. 144. TECHNICAL CORRECTIONS. 
(a) Section 156 of title 28, United States Code, as amended by 
sections 103 and 142 of this Act, is amended by adding at the end 
thereof the following: 
"(f) For purposes of financial accountability in a district where a 
bankruptcy clerk has been certified, such clerk shall be accountable 
for and pay into the Treasury all fees, costs, and other monies 
collected by such clerk except uncollected fees not required by an 
Act of Congress to be prepaid. Such clerk shall make returns thereof 
to the Director of the Administrative Office of the United States 
Courts and the Director of the Executive Office For United States 
Trustees, under regulations prescribed by such Directors.". 
(b)(1) Section 157(b)(2)(B) of title 28, United States Code, is 
amended by striking out "interest" and inserting in lieu thereof 
"interests". 
"Oig /; ,
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o
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(2) Section 157(b)(2)(G) of title 28, United States Code, is amended 
by inserting a comma after "annul". 
(c) Section 526 of title 28, United States Code, is amended— 
(1) in the heading by striking out "trustee" and inserting in 
ptfc 
..fri Y\Qyj^ thereof "trustees", 
(2) in subsection (a)— 
(A) by striking out "and trustees" and inserting in lieu 
thereof ", trustees, including trustees in cases under title 
' " 
11" in paragraph (1), and 
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(B) by striking out "courts of the Canal Zone and the 
;r.. !;^ 
Virgin Islands, probation officers, trustees in cases under 
title 11," and inserting in lieu thereof "court of the Virgin 
Islands, probation officers," in paragraph (2). 
(d) Section 584 of title 28, United States Code, is amended by 
striking out "districts" and inserting in lieu thereof "regions'. 
(e) Section 1334(d) of title 28, United States Code, is amended by 
striking out "and of the estate" and inserting in lieu thereof "and of 
property of the estate". 
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PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3097 
if) Section 1930(a) of title 28, United States Code, is amended by 
striking out "of the court" and inserting in lieu thereof "of the 
district court or the clerk of the bankruptcy court, if one has been 
v, ic -^pjj :. 
certified pursuant to section 156(b) of this title,". 
(g)(1) The heading for chapter 39 of title 28, United States Code, as 
28 USC 591 et 
added by the Ethics in Government Act, is amended by striking out 
oT;^^. n^-i 4. 
"CHAPTER 39" and inserting in lieu thereof "CHAPTER 40". 
^ ^^ ^"^ "°*^-
(2) The table of chapters for part II of title 28, United States Code, 
is amended by striking out the item relating to Independent Counsel 
and inserting in lieu thereof the following: 
"40. Independent Counsel 
591". 
(3) Section 49(f) of title 28, United States Code, is amended by 
striking out "chapter 39" each place it appears and inserting in lieu 
thereof "chapter 40". 
TITLE II—AMENDMENTS TO TITLE 11 OF 
^ 
THE UNITED STATES CODE 
Subtitle A—Activities of United States Trustees 
SEC. 201. DEFINITIONS. 
Section 101 of title 11, United States Code, is amended— 
g 
(1) in paragraph (14) by striking out "and governmental unit" 
and inserting in lieu thereof "governmental unit, and United 
States trustee" before the semicolon at the end thereof, and 
9S 
(2) in paragraph (24) by inserting "(but not a United States 
trustee while serving as a trustee in a case under this title)" 
after "United States" the second place it appears. 
SEC. 202. RULES OF CONSTRUCTION. 
Section 102 of title 11, United States Code, is amended— 
(1) by striking out "and" at the end of paragraph (7) thereof, 
(2) by striking the period at the end of paragraph (8) and 
2€ 
inserting in lieu thereof "; and", and 
(3) by inserting at the end thereof the following: 
"(9) 'United States trustee' includes a designee of the United 
States trustee.". 
SEC. 203. POWER OF COURT. 
>:U 
-u 
} 
Section 105(a) of title 11, United States Code, is amended by 
adding at the end thereof the following new sentence: "No provision 
of this title providing for the raising of an issue by a party in 
interest shall be construed to preclude the court from, sua sponte, 
taking any action or making any determination necessary or appro-
priate to enforce or implement court orders or rules, or to prevent 
an abuse of process.". 
SEC. 204. INVOLUNTARY CASES. 
Section 303 of title 11, United States Code, is amended— 
' 
• .^^; 
(1) in subsection (g), by inserting "order the United States 
' 
trustee to" after "may", the first time it appears, and 
(2) in subsection (iXD— 
(A) by inserting "or" at the end of subparagraph (A), and 
i3j.a 01 
^gj H
j
y striking out subparagraph (C). 
100 STAT. 3098 
PUBLIC LAW 99-554—OCT. 27, 1986 
SEC. 205. AUTHORITY OF UNITED STATES TRUSTEE IN CASES UNDER 
TITLE 11. 
11 use 301 e
« 
(a) AUTHORITY.—Subchapter I of chapter 3 of title 11, United 
seq. 
States Code, is amended by adding at the end thereof the following: 
11 use 307. 
"§ 307. United States trustee 
"The United States trustee may raise and may appear and be 
heard on any issue in any case or proceeding under this title but 
may not file a plan pursuant to section 1121(c) of this title.". 
(b) TECHNICAL AMENDMENT.—The table of sections for subchapter 
I of chapter 3 of title 11, United States Code, is amended by adding 
at the end thereof the following new item: 
"307. United States trustee.". 
SEC. 206. ELIGIBILITY OF UNITED STATES TRUSTEE TO SERVE AS 
TRUSTEE. 
Section 321 of title 11, United States Code, is amended by adding 
at the end thereof the following: 
"(c) The United States trustee for the judicial district in which the 
case is pending is eligible to serve as trustee in the case if nec-
essary.". 
SEC. 207. QUALIFICATION OF TRUSTEE. 
Section 322 of title 11, United States Code, is amended— 
(1) in subsection (a) by striking out "A person" and inserting 
^ 
in lieu thereof "Except as provided in subsection (b)(1), a 
^' 
person", and 
(2) by amending subsection (b) to read as follows: 
"(b)(1) The United States trustee qualifies wherever such trustee 
serves as trustee in a case under this title. 
"(2) The United States trustee shall determine— 
"(A) the amount of a bond required to be filed under subsec-
tion (a) of this section; and 
"(B) the sufficiency of the surety on such bond.". 
SEC. 208. REMOVAL OF TRUSTEE OR EXAMINER. 
Section 324 of title 11, United States Code, is amended to read as 
follows: 
• 
• 
(%>?' 
"§ 324. Removal of trustee or examiner 
Courts, U.S. 
"(a) The court, after notice and a hearing, may remove a trustee, 
other than the United States trustee, or an examiner, for cause. 
"(b) Whenever the court removes a trustee or examiner under 
subsection (a) in a case under this title, such trustee or examiner 
shall thereby be removed in all other cases under this title in which 
such trustee or examiner is then serving unless the court orders 
otherwise.". 
SEC. 209. LIMITATION ON COMPENSATION OF TRUSTEE. 
Section 326(b) of title 11, United States Code, is amended to read 
as follows: 
Post, p. 3105; 
"(b) In a case under chapter 12 or 13 of this title, the court may 
11 use 1301 et 
not allow compensation for services or reimbursement of expenses of 
*^9 
the'United States trustee or of a standing trustee appointed under 
section 586(b) of title 28, but may allow reasonable compensation 
under section 330 of this title of a trustee appointed under section 
1202(a) or 1302(a) of this title for the trustee's services, payable after 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3099 
the trustee renders such services, not to exceed five percent upon all 
payments under the plan.". 
SEC. 210. EMPLOYMENT OF PROFESSIONAL PERSONS. 
Section 327(c) of title 11, United States Code, is amended by 
inserting "or the United States trustee" after "another creditor". 
SEC. 2n. COMPENSATION OF OFFICERS. 
s-
Section 330 of title 11, United States Code, is amended— 
(1) in subsection (a) by inserting "to any parties in interest 
and to the United States trustee" after "notice", and 
(2) by inserting at the end thereof the following: 
"(d) In a case in which the United States trustee serves as trustee, 
the compensation of the trustee under this section shall be paid to 
the clerk of the bankruptcy court and deposited by the clerk into the 
United States Trustee System Fund established by section 589a of 
title 28.". 
SEC. 212. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS. 
Section 341 of title 11, United States C!ode, is amended— 
(1) in subsection (a) by striking out "there shall be a meeting 
of creditors" and inserting in lieu thereof "the United States 
trustee shall convene and preside at a meeting of creditors", 
(2) in subsection (b) by striking out "court may order" and 
inserting in lieu thereof "United States trustee may convene", 
and 
(3) in subsection (c) by inserting "including any final meeting 
of creditors" before the period at the end thereof. 
SEC. 213. EXAMINATION OF THE DEBTOR. 
Section 343 of title 11, United States Code, is amended to read as 
follows: 
"§ 343. Examination of the debtor 
"The debtor shall appear and submit to examination under oath 
at the meeting of creditors under section 341(a) of this title. Credi-
tors, any indenture trustee, any trustee or examiner in the case, or 
the United States trustee may examine the debtor. The United 
States trustee may administer the oath required under this 
section.". 
SEC. 214. MONIES OF ESTATES. 
Section 345(b) of title 11, United States Code, is amended to read 
as follows: 
"(b) Except with respect to a deposit or investment that is insured 
or guaranteed by the United States or by a department, agency, or 
instrumentality of the United States or backed by the full faith and 
credit of the United States, the trustee shall require from an entity 
with which such money is deposited or invested— 
"(1) a bond— 
?,5^yj»^.j.»iA "(A) in favor of the United States; 
"(B) secured by the undertaking of a corporate surety 
approved by the United States trustee for the district in 
which the case is pending; and 
fes3lfil 
"(C) conditioned on— 
"(i) a proper accounting for all money so deposited or 
invested and for any return on such money; 
100 STAT. 3100 
PUBLIC LAW 99-554—OCT. 27, 1986 
lis ncsj; ' - 
"(ii) prompt repayment of such money and return; 
and 
"(iii) faithful performance of duties as a depository; 
or 
"(2) the deposit of securities of the kind specified in section 
9303 of title 3L". 
SEC. 215. INTERIM TRUSTEE. 
Section 701(a) of title 11, United States Code, is amended to read 
as follows: 
"(a)(1) Promptly after the order for relief under this chapter, the 
United States trustee shall appoint one disinterested person that is 
a member of the panel of private trustees established under section 
586(a)(1) of title 28 or that is serving as trustee in the case imme-
diately before the order for relief under this chapter to serve as 
interim trustee in the case. 
"(2) If none of the members of such panel is willing to serve as 
interim trustee in the case, then the United States trustee may 
serve as interim trustee in the case.". 
*i'.~-H A \ ^i ' d 'in i ' ' >
• .•IJ'V^ 
SEC. 216. SUCCESSOR TRUSTEE. 
Subsections (b) and (c) of section 703 of title 11, United States 
Code, are amended to read as follows: 
"(b) Pending election of a trustee under subsection (a) of this 
section, if necessary to preserve or prevent loss to the estate, the 
United States trustee may appoint an interim trustee in the manner 
specified in section 701(a). 
"(c) If creditors do not elect a successor trustee under subsection 
(a) of this section or if a trustee is needed in a case reopened under 
section 350 of this title, then the United States trustee— 
"(1) shall appoint one disinterested person that is a member of 
the panel of private trustees established under section 586(a)(1) 
of title 28 to serve as trustee in the case; or 
"(2) may, if none of the disinterested members of such panel is 
riJi willing to serve as trustee, serve as trustee in the case. 
SEC. 217. DUTIES OF TRUSTEE. 
Section 704 of title 11, United States Code, is amended— 
(1) in paragraph (8) by— 
(A) inserting ", with the United States trustee," after 
"court" the first place it appears, and 
(B) inserting "the United States trustee or" after 
ba — 
"information as", and 
(2) in paragraph (9) by inserting "and with the United States 
' * trustee" before the period at the end thereof. 
SEC. 218. CREDITORS' COMMITTEE. 
Section 7O50t>) of title 11, United States Code, is amended— 
(1) by inserting "or the United States trustee" after "trustee" 
each place it appears, and 
(2) by inserting "or the United States trustee" immediately 
\'f after "court". 
SEC. 219. DISMISSAL. 
(a) GROUND FOR DISMISSAL.—Section 707(a) of title 11, United 
States Code, is amended— 
(1) by striking out "or" at the end of paragraph (1), 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3101 
(2) by striking out the period at the end of paragraph (2) and 
inserting in Ueu thereof the following: "; and", and 
(3) by adding at the end thereof the following: 
"(3) failure of the debtor in a voluntary case to file, within 
fifteen days or such additional time as the court may allow after 
the filing of the petition commencing such case, the information 
required by paragraph (1) of section 521, but only on a motion by 
the United States trustee.". 
(b) PROCEDURE.—Section 707(b) of title 11, United States Code, is 
amended by striking out "motion and" and inserting in lieu thereof 
"motion or on a motion by the United States trustee, but". 
SEC. 220. DISCHARGE. 
Subsections (c), (d), and (e) of section 727 of title 11, United States 
Code, are amended to read as follows: 
"(c)(1) The trustee, a creditor, or the United States trustee may 
object to the granting of a discharge under subsection (a) of this 
section. 
"(2) On request of a party in interest, the court may order the 
trustee to examine the acts and conduct of the debtor to determine 
whether a ground exists for denial of discharge. 
"(d) On request of the trustee, a creditor, or the United States 
trustee, and after notice and a hearing, the court shall revoke a 
discharge granted under subsection (a) of this section if— 
"(1) such discharge was obtained through the fraud of the 
debtor, and the requesting party did not know of such fraud 
until after the granting of such discharge; 
"(2) the debtor acquired property that is property of the 
estate, or became entitled to acquire property that would be 
property of the estate, and knowingly and fraudulently failed to 
report the acquisition of or entitlement to such property, or to 
deliver or surrender such property to the trustee; or 
I 
"(3) the debtor committed an act specified in subsection (a)(6) 
enu, i
O 
g 
of this section. 
"(e) The trustee, a creditor, or the United States trustee may 
v,lOfORii rr 
request a revocation of a discharge— 
,>i,e 
"(1) under subsection (d)(1) of this section within one year 
after such discharge is granted; or 
"(2) under subsection (d)(2) or (d)(3) of this section before the 
later o
f
— 
^ 
"(A) one year after the granting of such discharge; and 
? 
"(B) the date the case is closed.". 
SEC. 221. CREDITORS' AND EQUITY SECURITY HOLDERS' COMMITTEES. 
Section 1102 of title 11, United States Code, is amended— 
(1) by amending subsection (a) to read as follows: 
"(a)(1) As soon as practicable after the order for relief under 
chapter 11 of this title, the United States trustee shall appoint a 
n usc llOl et 
committee of creditors holding unsecured claims and may appoint 
seq. 
additional committees of creditors or of equity security holders as 
the United States trustee deems appropriate. 
"(2) On request of a party in interest, the court may order the 
appointment of additional committees of creditors or of equity secu-
rity holders if necessary to assure adequate representation of credi-
tors or of equity security holders. The United States trustee shall 
appoint any such committee.", and 
(2) by repealing subsection (c). 
100 STAT. 3102 
PUBLIC LAW 99-554—OCT. 27, 1986 
SEC. 222. APPOINTMENT OF TRUSTEE OR EXAMINER. 
-^'-
Section 1104 of title 11, United States Code, is amended— 
(1) in subsection (a), by inserting "or the United States 
trustee" after "party in interest", 
(2) in subsection (b), by inserting "or the United States 
trustee" after "party in interest", and 
'•""' 
(3) in subsection (c)— 
(A) by striking out "court" the second place it appears 
and inserting in lieu thereof "United States trustee, after 
consultation with parties in interest", and 
(B) by striking out "one disinterested person" and insert-
ing in lieu thereof ", subject to the court's approval, one 
i
5
A
.
-
»
*
i
i
B I disinterested person other than the United States trustee". 
SEC. 223. TERMINATION OF TRUSTEE APPOINTMENT. 
Section 1105 of title 11, United States Code, is amended by insert-
ing "or the United States trustee" after "party in interest". 
SEC. 224. CONVERSION OR DISMISSAL. 
. 
^ 
Section 1112 of title 11, United States Code, is amended— 
i// 
(1) in subsection (b)— 
B sjtovs 
(A) by inserting "or the United States trustee" after 
"party in interest", 
-3iil 
(B) by striking out "or" in paragraph (8), 
bns i 
(C) by striking out the period at the end of paragraph (9) 
and inserting in lieu thereof "; or", and 
(D) by adding at the end thereof the following: 
"(10) nonpayment of any fees or charges required under 
^
^ 
chapter 123 of title 28.", 
^'i " 
(2) by redesignating subsection (e) as subsection (f), and 
(3) by inserting after subsection (d) the following: 
Claims. 
"(e) Except as provided in subsections (c) and (f), the court, on 
request of the United States trustee, may convert a case under this 
11 use 701 et 
chapter to a case under chapter 7 of this title or may dismiss a case 
*^9- 
under this chapter, whichever is in the best interest of creditors and 
the estate if the debtor in a voluntary case fails to file, within fifteen 
days after the filing of the petition commencing such case or such 
additional time as the court may allow, the information required by 
paragraph (1) of section 521, including a list containing the names 
and addresses of the holders of the twenty largest unsecured claims 
(or of all unsecured claims if there are fewer than twenty unsecured 
claims), and the approximate dollar amounts of each of such 
claims.". 
5^ lOi r 381:^ 
SEC. 225. PREREQUISITE TO CONFIRMATION OF PLAN UNDER CHAPTER 11. 
Section 1129(a) of title 11, United States Code, is amended by 
adding at the end thereof the following: 
iu , 
"(12) All fees payable under section 1930, as determined by 
the court at the hearing on confirmation of the plan, have been 
aiCi paid or the plan provides for the payment of all such fees on the 
effective date of the plan.". 
SEC. 226. AUTHORITY TO APPOINT TRUSTEE. 
^& >n li M?^/* 1 , 
\ 
Section 1163 of title 11, United States Code, is amended to read as 
follows: 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3103 
"§ 1163. Appointment of trustee 
"As soon as practicable after the order for relief the Secretary of 
Transportation shall submit a list of five disinterested persons that 
are qualified and willing to serve as trustees in the case. The United 
States trustee shall appoint one of such persons to serve as trustee 
in the case.". 
SEC. 227. REPEALER 
Section 1202 of title 11, United States Code, as added by section 
255 of this Act, is amended by striking out subsections (c) and (d). 
SEC. 228. TRUSTEE. 
Section 1302 of title 11, United States Code, is amended— 
(1) by amending subsection (a) to read as follows: 
"(a) If the United States trustee appoints an individual under 
section 586(b) of title 28 to serve as standing trustee in cases under 
this chapter and if such individual qualifies under section 322 of this 
title, then such individual shall serve as trustee in the case. Other-
wise, the United States trustee shall appoint one disinterested 
person to serve as trustee in the case or the United States trustee 
may serve as a trustee in the case.", and 
(2) by striking out subsections (d) and (e). 
SEC. 229. CONVERSION OR DISMISSAL. 
Section 1307 of title 11, United States Code, is amended— 
^^^ 
(1) in subsection (c)— 
(A) by inserting "or the United States trustee" after 
On 
"party in interest , 
" ' 
(B) by striking out "or" at the end of paragraph (7) and 
inserting a semicolon in lieu thereof, 
(C) by striking out the period at the end of paragraph (8) 
and inserting in lieu thereof a semicolon, and 
(D) by adding at the end thereof the following: 
"(9) only on request of the United States trustee, failure of the 
debtor to file, within fifteen days, or such additional time as the 
court may allow, after the filing of the petition commencing 
such case, the information required by paragraph (1) of section 
521; or 
"(10) only on request of the United States trustee, failure to 
timely file the information required by paragraph (2) of section 
521.", and 
(2) in subsection (d) by inserting "or the United States 
trustee" after "party in interest". 
SEC. 230. PAYMENTS. 
Section 1326(b) of title 11, United States Code, is simended to read 
as follows: 
"(b) Before or at the time of each pajrment to creditors under the 
plan, there shall be paid— 
M i' -, . i 
"(1) any unpaid claim of the kind specified in section 507(aXl) 
of this title; and 
"(2) if a standing trustee appointed under section 586(b) of 
title 28 is serving in the case, the percentage fee fixed for such 
standing trustee under section 586(eXlXB) of title 28.". 
SEC. 231. REPEAL OF CHAPTER 15. 
Chapter 15 of title 11, United States Code, is repealed. 
ii USC 1501 et 
seq. 
100 STAT. 3104 
PUBLIC LAW 99-554—OCT. 27, 1986 
Subtitle B—Debtors Who Are Family Farmers 
SEC. 251. DEFINITIONS. 
Section 101 of title 11, United States Code, as amended by section 
201 of this Act, is amended— 
(1) in paragraph (17) by inserting "(except when such term 
appears in the term 'family farmer')' after "means", 
(2) by redesignating paragraphs (17) through (49) as para-
graphs (19) through (51), respectively, and 
(3) by inserting after paragraph (16) the following new 
paragraphs: 
"(17) 'family farmer' means— 
"(A) individual or individual and spouse engaged in a 
farming operation whose aggregate debts do not exceed 
$1,500,000 and not less than 80 percent of whose aggregate 
- 
noncontingent, liquidated debts (excluding a debt for the 
principal residence of such individual or such individual 
i 
and spouse unless such debt arises out of a farming oper-
t< 
ation), on the date the case is filed, arise out of a farming 
operation owned or operated by such individual or such 
individual and spouse, and such individual or such individ-
ual and spouse receive from such farming operation more 
than 50 percent of such individual's or such individual and 
spouse's gross income for the taxable year preceding the 
taxable year in which the case concerning such individual 
fgiiB 
or such individual and spouse was filed; or 
"(B) corporation or partnership in which more than 50 
briB 
percent of the outstanding stock or equity is held by one 
family, or by one family and the relatives of the members of 
(H) d 
such family, and such family or such relatives conduct the 
farming operation, and 
"(i) more than 80 percent of the value of its assets 
consists of assets related to the farming operation; 
"(ii) its aggregate debts do not exceed $1,500,000 and 
not less than 80 percent of its aggregate noncontingent, 
liquidated debts (excluding a debt for one dwelling 
which is owned by such corporation or partnership and 
Q3 e^i:l''i 
which a shareholder or partner maintains as a prin-
iioih©8 %' 
cipal residence, unless such debt arises out of a farming 
operation), on the date the case is filed, arise out of the 
8**^lal^- I 
farming operation owned or operated by such corpora-
tion or such partnership; and 
"(iii) if such corporation issues stock, such stock is 
not publicly traded; 
; 
"(18) 'family farmer with regular annual income' means 
family farmer whose annual income is sufficiently stable and 
regular to enable such family farmer to make payments under a 
Post, p. 3105. 
plan under chapter 12 of this title;". 
SEC. 252. APPLICABILITY OF CHAPTERS. 
^^^^ * 
Section 103 of title 11, United States Code, is amended— 
(1) in subsection (a) by striking out "or 13" and inserting in 
lieu thereof "12, or 13", 
; ^', ,r ^ .a 
(2) by adding at the end thereof the following: 
"(i) Chapter 12 of this title applies only in a case under such 
V
. iOfif lyiu j 
chapter.". 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3105 
SEC. 253. WHO MAY BE A DEBTOR. 
Section 109 of title 11, United States Code, is amended— 
(1) in subsection (f)— 
(A) by inserting "or family farmer" after "individual", 
t*7» 
and 
(B) by redesignating such subsection as subsection (g), and 
(2) by inserting after subsection (e) the following: 
"(f) Only a family farmer with regular annual income may be a 
debtor under chapter 12 of this title.". 
SEC. 254. INVOLUNTARY CASES. 
Section 303(a) of title 11, United States Code, is amended by 
inserting ", family farmer," after "farmer". 
SEC. 255. FAMILY FARMERS. 
Title 11 of the United States Code is amended by inserting after 
chapter 11 the following new chapter: 
"CHAPTER 12~ADJUSTMENT OF DEBTS OF A 
FAMILY FARMER WITH REGULAR ANNUAL 
INCOME 
Mm-mm 
"SUBCHAPTER I-OFFICERS, ADMINISTRATION, AND THE ESTATE 
"Sec. 
"1201. Stay of action against codebtor. 
"1202. Trustee. 
"1203. Rights and powers of debtor. 
"1204. Removal of debtor as debtor in possession. 
"1205. Adequate protection. 
"1206. Sales free of interests. 
"1207. Property of the estate. 
"1208. Conversion or dismissal. 
"SUBCHAPTER II—THE PLAN 
. yV 
"1221. Filing of plan. 
"1222. Contents of plan. 
"1223. Modification of plan before confirmation. 
"1224. Confirmation hearing. 
>-lO 
"1225. Confirmation of plan. 
.'",' ' 
"1226. Payments. 
"1227. Effect of confirmation. 
"1228. Discharge. 
"1229. Modification of plan after confirmation. 
"1230. Revocation of an order of confirmation. 
"1231. Special tax provisions. 
"SUBCHAPTER I—OFFICERS, ADMINISTRATION, AND THE 
ESTATE 
"§ 1201. Stay of action against codebtor 
ll USC 1201. 
"(a) Except as provided in subsections O
k
)
) and (c) of this section, 
after the order for relief under this chapter, a creditor may not act, 
or commence or continue any civil action, to collect all or any part of 
a consumer debt of the debtor from any individual that is liable on 
such debt with the debtor, or that secured such debt, unless— 
"(1) such individual became liable on or secured such debt in 
the ordinary course of such individual's business; or 
"(2) the case is closed, dismissed, or converted to a case under 
chapter 7 of this title. 
ll usc 701 et 
seq. 
100 STAT. 3106 
PUBLIC LAW 99-554—OCT. 27, 1986 
"Qoi) A creditor may present a negotiable instrument, and may give 
notice of dishonor of such an instrument. 
"(c) On request of a party in interest and after notice and a 
hearing, the court shall grant relief from the stay provided by 
subsection (a) of this section with respect to a creditor, to the extent 
t h a t -
'll) as between the debtor and the individual protected under 
subsection (a) of this section, such individual received the 
consideration for the claim held by such creditor; 
"(2) the plan filed by the debtor proposes not to pay such 
claim; or 
' 
"(3) such creditor's interest would be irreparably harmed by 
continuation of such stay. 
"(d) Twenty days after the filing of a request under subsection 
(cX2) of this section for relief from the stay provided by subsection (a) 
of this section, such stay is terminated with respect to the party in 
interest making such request, unless the debtor or any individual 
that is liable on such debt with the debtor files and serves upon such 
party in interest a written objection to the taking of the proposed 
action. 
11 use 1202. 
"§ 1202.Trustee 
5f?lil> - A\ 
"(a) If the United States trustee has appointed an individual 
under section 586(b) of title 28 to serve as standing trustee in cases 
under this chapter and if such individual qualifies as a trustee 
under section 322 of this title, then such individual shall serve as 
trustee in any case filed under this chapter. Otherwise, the United 
States trustee shall appoint one disinterested person to serve as 
trustee in the case or the United States trustee may serve as trustee 
in the case if necessary. 
"(b) The trustee shall— 
"(1) perform the duties specified in sections 704(2), 704(3), 
704(5), 704(6), 704(7), and 704(9) of this title; 
"(2) perform the duties specified in section 1106(aX3) and 
1106(a)(4) of this title if the court, for cause and on request of a 
party in interest, the trustee, or the United States trustee, so 
orders; 
"(3) appear and be heard at any hearing that concerns— 
"(A) the value of property subject to a lien; 
"(B) confirmation of a plan; 
"(C) modification of the plan after confirmation; or 
^ * 
"(D) the sale of property of the estate; 
"(4) ensure that the debtor commences making timely pay-
ments required by a confirmed plan; and 
"(5) if the debtor ceases to be a debtor in possession, perform 
the duties specified in sections 704(8), 1106(aXl), 1106(aX2), 
j.c.^ , . , 
1106(aX6), 1106(aX7), and 1203. 
'"^ 
"(c) If the number of cases under this chapter commenced in a 
particular judicial district so warrants, the court may appoint one or 
more individuals to serve as standing trustee for such district in 
c£ises under this chapter. 
"(dXD A court that has appointed an individual under subsection 
(a) of this section to serve as standing trustee in cases under this 
chapter shall set for such individual— 
"(A) a maximum annual compensation not to exceed the 
lowest annual rate of basic pay in effect for grade GS-16 of the 
^9 iff) :3U 11 
General Schedule prescribed under section 5332 of title 5; and 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3107 
"(B) a percentage fee not to exceed the sum of— 
"(i) not to exceed ten percent of the payments made 
under the plan of such debtor, with respect to payments in 
an aggregate amount not to exceed $450,000; and 
nos 
"(ii) three percent of payments made under the plan of 
such debtor, with respect to payments made after the aggre-
gate amount of payments made under the plan exceeds 
$450,000; 
based on such maximum annual compensation and the actual, 
necessary expenses incurred by such individual as standing 
trustee. 
"(2) Such individual shall collect such percentage fee from all 
payments under plans in the cases under this chapter for which 
such individual serves as standing trustee. Such individual shall 
pay annually to the Treasury— 
affSi ;38'J i r 
"(A) any amount by which the actual compensation re-
ceived by such individual exceeds five percent of all such 
payments made under plans in cases under this chapter for 
_
^ 
which such individual serves as standing trustee; and 
fy g
f 
"(B) any amount by which the percentage fee fixed under 
paragraph (1)(B) of this subsection for all such cases ex-
ceeds— 
"(i) such individual's actual compensation for such 
,,;v[ ^grj i • 
.,4^ 
cases, as adjusted under subparagraph (A) of this para-
V H^' i 
graph; plus 
=.fii t.'^^l* 
'^ii) ^he actual, necessary expenses incurred by such 
individual as standing trustee in such cases. 
"§ 1203. Rights and powers of debtor 
ii use 1203. 
"Subject to such limitations as the court may prescribe, a debtor 
in possession shall have all the rights, other than the right to 
compensation under section 330, and powers, and shall perform all 
the functions and duties, except the duties specified in paragraphs 
(3) and (4) of section 1106(a), of a trustee serving in a case under 
chapter 11, including operating the debtor's farm. 
"§ 1204. Removal of debtor as debtor in possession 
ll USC 1204. 
"(a) On request of a party in interest, and after notice and a 
hearing, the court shall order that the debtor shall not be a debtor 
' 
in possession for cause, including fraud, dishonesty, incompetence, 
or gross mismanagement of the affairs of the debtor, either before or 
after the commencement of the case. 
"(b) On request of a party in interest, and after notice and a 
hearing, the court may reinstate the debtor in possession. 
"§ 1205. Adequate protection 
ll usc 1205. 
"(a) Section 361 does not apply in a case under this chapter. 
"0)) In a case under this chapter, when adequate protection is 
required under section 362, 363, or 364 of this title of an interest of 
an entity in property, such adequate protection may be provided 
b y - 
^ 
(1) requiring the trustee to make a cash payment or periodic 
cash payments to such entity, to the extent that the stay under 
v nui ^gu «£: 
section 362 of this title, use, sale, or lease under section 363 of 
.p'38 
this title, or any grant of a lien under section 364 of this title 
results in a decrease in the value of property securing a claim or 
of an entity's ownership interest in property; 
100 STAT. 3108 
PUBLIC LAW 99-554—OCT. 27, 1986 
"(2) providing to such entity an additional or replacement lien 
to the extent that such stay, use, sale, lease, or grant results in a 
decrease in the value of property securing a claim or of an 
entity's ownership interest in property; 
"(3) paying to such entity for the use of farmland the reason-
able rent customary in the community where the property is 
located, based upon the rental value, net income, and earning 
capacity of the property; or 
"(4) granting such other relief, other than entitling such 
entity to compensation allowable under section 503(b)(1) of this 
title as an administrative expense, as will adequately protect 
the value of property securing a claim or of such entity's 
ownership interest in property. 
11 use 1206. 
"§ 1206. Sales free of interests 
"After notice and a hearing, in addition to the authorization 
contained in section 363(f), the trustee in a case under this chapter 
may sell property under section 363 (b) and (c) free and clear of any 
interest in such property of an entity other than the estate if the 
property is farmland or farm equipment, except that the proceeds of 
such sale shall be subject to such interest. 
11 use 1207. 
"§ 1207. Property of the estate 
'-iyni rou'i ti)' 
"(a) Property of the estate includes, in addition to the property 
specified in section 541 of this title— 
"(1) all property of the kind specified in such section that the 
debtor acquires after the commencement of the case but before 
the case is closed, dismissed, or converted to a case under 
11 use 701 et 
chapter 7 of this title, whichever occurs first; and 
««9- 
"(2) earnings from services performed by the debtor after the 
commencement of the case but before the case is closed, dis-
missed, or converted to a case under chapter 7 of this title, 
whichever occurs first. 
"(b) Except as provided in section 1204, a confirmed plan, or an 
order confirming a plan, the debtor shall remain in possession of all 
I f'S i 0' J 
property of the estate. 
11 use 1208. 
"§ 1208. Conversion or dismissal 
j 
"(a) The debtor may convert a case under this chapter to a case 
under chapter 7 of this title at any time. Any waiver of the right to 
convert under this subsection is unenforceable. 
"(b) On request of the debtor at any time, if the case has not been 
converted under section 706 or 1112 of this title, the court shall 
dismiss a case under this chapter. Any waiver of the right to dismiss 
cOS' J :U > 
under this subsection is unenforceable. 
"(c) On request of a party in interest, and after notice and a 
hearing, the court may dismiss a case under this chapter for cause, 
including— 
"(1) unreasonable delay, or gross mismanagement, by the 
debtor that is prejudicial to creditors; 
"(2) nonpayment of any fees and charges required under 
28 use 1911 et 
chapter 123 of title 28; 
seq. 
"(3) failure to file a plan timely under section 1221 of this 
title; 
"(4) failure to commence making timely payments required by 
a confirmed plan; 
i- 
— 
-. 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3109 
"(5) denial of confirmation of a plan under section 1225 of this 
title and denial of a request made for additional time for filing 
another plan or a modification of a plan; 
"(6) material default by the debtor with respect to a term of a 
confirmed plan; 
"(7) revocation of the order of confirmation under section 1230 
of this title, and denial of confirmation of a modified plan under 
section 1229 of this title; 
"(8) termination of a confirmed plan by reason of the occur-
rence of a condition specified in the plan; or 
"(9) continuing loss to or diminution of the estate and absence 
of a reasonable likelihood of rehabilitation. 
"(d) On request of a party in interest, and after notice and a 
hearing, the court may dismiss a case under this chapter or convert 
a case under this chapter to a case under chapter 7 of this title upon 
ii USC 701 et 
a showing that the debtor has committed fraud in connection with 
see-
the case. 
"(e) Notwithstanding any other provision of this section, a case 
may not be converted to a case under another chapter of this title 
unless the debtor may be a debtor under such chapter. 
""'' "' 
"SUBCHAPTER II—THE PLAN 
;; 
"§ 122L Filing of plan 
11 usc 1221. 
"The debtor shall file a plan not later than 90 days after the order 
for relief under this chapter, except that the court may extend such 
period if an extension is substantially justified. 
"§ 1222. Contents of plan 
Claims. 
"(a) The plan shall- 
n USC 1222. 
. 
"(1) provide for the submission of all or such portion of future 
earnings or other future income of the debtor to the supervision 
and control of the trustee as is necessary for the execution of 
the plan; 
"(2) provide for the full payment, in deferred cash payments, 
of all claims entitled to priority under section 507 of this title, 
unless the holder of a particular claim agrees to a different 
treatment of such claim; and 
"(3) if the plan classifies claims and interests, provide the 
same treatment for each claim or interest within a particular 
class unless the holder of a particular claim or interest agrees to 
less favorable treatment. 
"(b) Subject to subsections (a) and (c) of this section, the plan 
^SSi 9ftU ; ? 
may— 
"(1) designate a class or classes of unsecured claims, as pro-
vided in section 1122 of this title, but may not discriminate 
unfairly against any class so designated; however, such plan 
may treat claims for a consumer debt of the debtor if an 
individual is liable on such consumer debt with the debtor 
differently than other unsecured claims; 
_&/ '^i fi? 
"(2) modify the rights of holders of secured claims, or of 
.otoi j?V'ii 
holders of unsecured claims, or leave unaffected the rights of 
i 
holders of any class of claims; 
"(3) provide for the curing or waiving of any default; 
100 STAT. 3110 
PUBLIC LAW 99-554—OCT. 27, 1986 
')f:^' 
J DS'l. f 1 
11 use 1223. 
11 use 1224. 
eourts, U.S. 
11 use 1225. 
"(4) provide for payments on any unsecured claim to be made 
concurrently with payments on any secured claim or any other 
unsecured claim; 
"(5) provide for the curing of any default within a reasonable 
time and maintenance of payments while the case is pending on 
any unsecured claim or secured claim on which the last pay-
ment is due after the date on which the final payment under 
the plan is due; 
"(6) subject to section 365 of this title, provide for the assump-
tion, rejection, or assignment of any executory contract or 
unexpired lease of the debtor not previously rejected under such 
section; 
"(7) provide for the payment of all or part of a claim against 
the debtor from property of the estate or property of the debtor; 
"(8) provide for the sale of all or any part of the property of 
the estate or the distribution of all or any part of the property of 
the estate among those having an interest in such property; 
"(9) provide for payment of allowed secured claims consistent 
with section 1225(a)(5) of this title, over a period exceeding the 
period permitted under section 1222(c); 
"(10) provide for the vesting of property of the estate, on 
confirmation of the plan or at a later time, in the debtor or in 
any other entity; and 
"(11) include any other appropriate provision not inconsistent 
with this title. 
"(c) Except as provided in subsections (bX5) and (bX9), the plan 
may not provide for pa)rments over a period that is longer than 
three years unless the court for cause approves a longer period, but 
the court may not approve a period that is longer than five years. 
"§ 1223. ModiHcation of plan before confirmation 
"(a) The debtor may modify the plan at any time before confirma-
tion, but may not modify the plan so that the plan as modified fails 
to meet the requirements of section 1222 of this title. 
"(b) After the debtor files a modification under this section, the 
plan as modified becomes the plan. 
"(c) Any holder of a secured claim that has accepted or rejected 
the plan is deemed to have accepted or rejected, as the case may be, 
the plan as modified, unless the modification provides for a change 
in the rights of such holder from what such rights were under the 
plan before modification, and such holder changes such holder's 
previous acceptance or rejection. 
"§ 1224. Conflrmation hearing 
"After expedited notice, the court shall hold a hearing on con-
firmation of the plan. A party in interest, the trustee, or the United 
States trustee may object to the confirmation of the plan. Except for 
cause, the hearing shall be concluded not later than 45 days after 
the filing of the plan. 
.•• 
ai 
i; 
"§ 1225. Confirmation of plan 
"(a) Except as provided in subsection (b), the court shall confirm a 
plan if^ 
"(1) the plan complies with the provisions of this chapter and 
with the other applicable provisions of this title; 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3111 
^ 
"(2) any fee, charge, or amount required under chapter 123 of 
title 28, or by the plan, to be paid before confirmation, has been 
28 USC 1911 et 
paid; 
seq. 
"(3) the plan has been proposed in good faith and not by any 
means forbidden by law; 
"(4) the value, as of the effective date of the plan, of property 
to be distributed under the plan on account of each allowed 
' 
unsecured claim is not less than the amount that would be paid 
' 
on such claim if the estate of the debtor were liquidated under 
chapter 7 of this title on such date; 
ii usc 701 et 
"(5) with respect to each allowed secured claim provided for 
seq. 
by the plan— 
'} 
"(A) the holder of such claim has accepted the plan; 
;; 
"(B)(i) the plan provides that the holder of such claim 
j*^ 
retain the lien securing such claim; and 
L:!'; 
"(ii) the value, as of the effective date of the plan, of 
l^ij 
property to be distributed by the trustee or the debtor 
nnd \ 
under the plan on account of such claim is not less than the 
allowed amount of such claim; or 
^^fj 
"(C) the debtor surrenders the property securing such 
l/^ y !| 
claim to such holder; and 
"(6) the debtor will be able to make all payments under the 
g, 
plan and to comply with the plan. 
- "(b)(1) If the trustee or the holder of an allowed unsecured claim 
objects to the confirmation of the plan, then the court may not 
approve the plan unless, as of the effective date of the plan— 
"(A) the value of the property to be distributed under the plan 
on account of such claim is not less than the amount of such 
claim; or 
B
S
S
i oeu ii 
i I 
"(B) the plan provides that all of the debtor's projected dispos-
able income to be received in the three-year period, or such 
a 
longer period as the court may approve under section 1222(c), 
J 
beginning on the date that the first payment is due under the 
plan will be applied to make payments under the plan. 
"(2) For purposes of this subsection, 'disposable income' means 
income which is received by the debtor and which is not reasonably 
necessary to be expended— 
"(A) for the maintenance or support of the debtor or a depend-
ent of the debtor; or 
"(B) for the payment of expenditures necessary for the 
V 
continuation, preservation, and operation of the debtor's 
i< 
business. 
"(c) After confirmation of a plan, the court may order any entity 
from whom the debtor receives income to pay all or any part of such 
income to the trustee. 
"§ 1226. Payments 
11 USC 1226. 
"(a) Pa)nnents and funds received by the trustee shall be retained 
by the trustee until confirmation or denial of confirmation of a plan. 
If a plan is confirmed, the trustee shall distribute any such payment 
in accordance with the plan. If a plan is not confirmed, the trustee 
'" ^^J i i 
shall return any such payments to the debtor, after deducting— 
^'-
"(1) any unpaid claim allowed under section 503(b) of this 
title; and 
"(2) if a standing trustee is serving in the case, the percentage 
fee fixed for such standing trustee. 
100 STAT. 3112 
PUBLIC LAW 99-554—OCT. 27, 1986 
"(b) Before or at the time of each payment to creditors under the 
5
9 I;Hi 3
<
i
L
i ds: 
plan, there shall be paid— 
.r,.y, 
"(1) any unpaid claim of the kind specified in section 507(a)(1) 
v(T< of this title; and 
"(2) if a standing trustee appointed under section 1202(d) of 
this title is serving in the case, the percentage fee fixed for such 
standing trustee under section 1202(e) of this title. 
"(c) Except as otherwise provided in the plan or in the order 
confirming the plan, the trustee shall make payments to creditors 
under the plan. 
11 use 1227. 
"§ 1227. Effect of confirmation 
"(a) Except as provided in section 1228(a) of this title, the provi-
sions of a confirmed plan bind the debtor, each creditor, each equity 
security holder, and each general partner in the debtor, whether or 
not the claim of such creditor, such equity security holder, or such 
general partner in the debtor is provided for by the plan, and 
whether or not such creditor, such equity security holder, or such 
general partner in the debtor has objected to, has accepted, or has 
rejected the plan. 
"(b) Except as otherwise provided in the plan or the order confirm-
ing the plan, the confirmation of a plan vests all of the property of 
the estate in the debtor. 
"(c) Except as provided in section 1228(a) of this title and except as 
otherwise provided in the plan or in the order confirming the plan, 
the property vesting in the debtor under subsection (b) of this 
section is free and clear of any claim or interest of any creditor 
provided for by the plan. 
11 use 1228. 
. "§ 1228. Discharge 
"(a) As soon as practicable after completion by the debtor of all 
payments under the plan, other than payments to holders of allowed 
claims provided for under section 1222(b)(5) or 1222(b)(10) of this 
title, unless the court approves a written waiver of discharge exe-
cuted by the debtor after the order for relief under this chapter, the 
court shall grant the debtor a discharge of all debts provided for by 
the plan allowed under section 503 of this title or disallowed under 
section 502 of this title, except any debt— 
"(1) provided for under section 1222(b)(5) or 1222(b)(10) of this 
title; or 
"rf-» 
"(2) of the kind specified in section 523(a) of this title. 
"(b) At any time after the confirmation of the plan and after 
notice and a hearing, the court may grant a discharge to a debtor 
that has not completed payments under the plan only if— 
"(1) the debtor's failure to complete such payments is due to 
circumstances for which the debtor should not justly be held 
accountable; 
.imi >
3
U il 
"(2) the value, as of the effective date of the plan, of property 
'"»• 
actually distributed under the plan on account of each allowed 
unsecured claim is not less than the amount that would have 
been paid on such claim if the estate of the debtor had been 
11 use 701 et 
liquidated under chapter 7 of this title on such date; and 
seq. 
"(3) modification of the plan under section 1229 of this title is 
not practicable. 
"(c) A discharge granted under subsection (b) of this section 
discharges the debtor from all unsecured debts provided for by the 
plan or disallowed under section 502 of this title, except any debt— 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3113 
f 
"(1) provided for under section 1222(bX5) or 1222(b)(10) of this 
title; or 
"(2) of a kind specified in section 523(a) of this title. 
"(d) On request of a party in interest before one year after a 
discharge under this section is granted, and after notice and a 
hearing, the court may revoke such discharge only i
f
— 
"(1) such discharge was obtained by the debtor through fraud; 
and 
^ 
"(2) the requesting party did not know of such fraud until 
after such discharge was granted. 
"(e) After the debtor is granted a discharge, the court shall 
terminate the services of any trustee serving in the case. 
"§ 1229. Modification of plan after confirmation 
ii use 1229. 
"(a) At any time after confirmation of the plan but betore the 
completion of payments under such plan, the plan may be modified, 
on request of the debtor, the trustee, or the holder of an allowed 
unsecured claim, to— 
"(1) increase or reduce the amount of pa5mients on claims of a 
- 
particular class provided for by the plan; 
L
' 
"(2) extend or reduce the time for such payments; or 
" 
"(3) alter the amount of the distribution to a creditor whose 
claim is provided for by the plan to the extent necessary to take 
^, 
account of any payment of such claim other than under the 
plan. 
"(bXD Sections 1222(a), 1222(b), and 1223(c) of this title and the 
requirements of section 1225(a) of this title apply to any modifica-
tion under subsection (a) of this section. 
"(2) The plan as modified becomes the plan unless, after notice 
and a hearing, such modification is disapproved. 
"(c) A plan modified under this section may not provide for 
pa3rments over a period that expires after three years after the time 
that the first payment under the original confirmed plan was due, 
unless the court, for cause, approves a longer period, but the court 
may not approve a period that expires after five years after such 
time. 
"§ 1230. Revocation of an order of confirmation 
ii use 1230. 
"(a) On request of a party in interest at any time within 180 days 
after the date of the entry of an order of confirmation under section 
1225 of this title, £ind after notice and a hearing, the court may 
revoke such order if such order was procured by fraud. 
"(b) If the court revokes an order of confirmation under subsection 
(a) of this section, the court shall dispose of the case under section 
1207 of this title, unless, within the time fixed by the court, the 
debtor proposes and the court confirms a modification of the plan 
under section 1229 of this title. 
"§ 1231. Special tax provisions 
ii U
S
C 1231. 
"(a) For the purpose of any State or local law imposing a tax on or 
State and local 
measured by income, the taxable period of a debtor that is an 
governments. 
individual shall terminate on the date of the order for relief under 
this chapter, unless the case was converted under section 706 of this 
title. 
"(b) The trustee shall make a State or local tax return of income 
for the estate of an individual debtor in a case under this chapter for 
100 STAT. 3114 
PUBLIC LAW 99-554—OCT. 27, 1986 
each taxable period after the order for relief under this chapter 
during which the case is pending. 
"(c) The issuance, transfer, or exchange of a security, or the 
making or delivery of an instrument of transfer under a plan 
confirmed under section 1225 of this title, may not be taxed under 
any law imposing a stamp tax or similar tax. 
"(d) The court may authorize the proponent of a plan to request a 
determination, limited to questions of law, by a State or local 
governmental unit charged with responsibility for collection or 
determination of a tax on or measured by income, of the tax effects, 
under section 346 of this title and under the law imposing such tax, 
of the plan. In the event of an actual controversy, the court may 
declare such effects after the earlier of— 
esfi til ji 
"(1) the date on which such governmental unit responds to 
the request under this subsection; or 
,, ^^^ 
"(2) 270 days after such request.". 
'•''^' 
;. 
SEC. 
2
5
6
. 
CONVERSION 
FROM 
CHAPTER 
1
1 
TO 
CHAPTER 
1
2
. 
Section 1112(d) of title 11, United States Code, is amended— 
(1) by inserting "12 or" before "13", 
(2) in paragraph (1) by striking out "and" at the end thereof, 
(3) in paragraph (2) by striking out the period at the end 
thereof and inserting "; and", and 
(4) by inserting after paragraph (2) the following: 
"(3) if the debtor requests conversion to chapter 12 of this 
title, such conversion is equitable.". 
SEC. 257. CONFORMING AMENDMENTS. 
(a) Title 11 of the United States Code is amended in the table of 
chapters by inserting after the item relating to chapter 11 the 
following new item: 
"12. A<iiustment of Debts of Family Fanners with Regular Annual Income.. 1201". 
(b) Section 108 of title 11, United States Code, is amended— 
(1) in subsection (b) by inserting "1201 or" before "1301", and 
(2) in subsection (c)— 
(A) by striking out "section 1301" and inserting in lieu 
thereof "section 1201 or 1301", and 
a , . , , ' • , 
(B) by inserting "1201," after "722,". 
(c) Sections 321(a), 329(b)(lXB), and 1106(aX5) of title 11, United 
States Code, are each amended by striking out "or 13" each place it 
appears and inserting in lieu thereof ", 12, or 13". 
(d) Sections 322(a) and 546(aXl) of title 11, United States Code, are 
each amended by striking out "or 1302" each place it appears and 
inserting in lieu thereof "1302, or 1202". 
(e) Section 327 of title 11, United States Code, is amended— 
(1) in subsection (b) by inserting ", 1202," after "section 721,", 
and 
(2) in subsection (c) by inserting ", 12," after "section 7". 
,,. 
, 
(f) Section 330(c) of title 11, United States Code, is amended by 
inserting "12 or" before "13". 
! 
(g) Section 346 of title 11, United States Code, is amended— 
(1) in subsection (b) by inserting ", 12," after "chapter 7", 
(2) in subsection (gXlXC) by inserting "or 12" after "chapter 
R
i 
11", and 
(3) in subsection (iXD by inserting ", 12," after "chapter 7". 
(h) Section 347 of title 11, United States Code, is amended— 
•A^r 
(1) in subsection (a)— . _„. 
. „ _ 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3115 
(A) by inserting ", 1226," after "section 726", and 
(B) by inserting ", 12," after "chapter 7", and 
(2) in subsection (b)— 
(A) by striking out "or 11" and inserting in lieu thereof ", 
11, or 12", and 
(B) by striking out "or 1173" and inserting in lieu thereof 
"1173, or 1225". 
(i) Section 348 of title 11, United States Code, is amended— 
(1) in subsection (b)— 
(A) by striking out "and 1328(a)" and inserting in lieu 
thereof "1201(a), 1221, and 1228(a)", and 
(B) by striking out "or 1307" and inserting in lieu thereof 
/ I f 
"1307, or 1208", 
(2) in subsections (c) and (e) by striking out "or 1307" each 
place it appears and inserting in lieu thereof "1307, or 1208", 
and 
(3) in subsection (d) by striking out "or 1307" and inserting in 
lieu thereof ", 1307, or 1208". 
(j) Sections 362(c)(2)(C), 365(d)(2), and 502(g) of title 11, United 
States Code, are each amended by striking out "or 13" each place it 
appears and inserting in lieu thereof "12, or 13". 
(k) Section 363 of title 11, United States Code, is amended— 
(1) in subsection (c)(1) by striking out "or 1304" and inserting 
in lieu thereof "1304,1203, or 1204", and 
(2) in subsection (1) by striking out "or 13" and inserting in 
lieu thereof ", 12, or 13". 
(1) Section 364(a) of title 11, United States Code, is amended by 
striking out "or 1304" and inserting in lieu thereof "1304, 1203, or 
1204". 
(m) Section 365(g) of title 11, United States Code, is amended— 
(1) in paragraph (1) by striking out "or 13" and inserting in 
lieu thereof "12, or 13", and 
(2) in paragraph (2)— 
k,,., 
(A) by striking out "or 13" and inserting in lieu thereof 
• 
"12, or 13", and 
(B) by striking out "or 1307" each place it appears and 
inserting in lieu thereof ", 1307, or 1208". 
(n) Section 523(a) of title 11, United States Code, is amended by 
striking out "or 1328(b)" and inserting in lieu thereof ", 1228(a), 
1228(b), or 1328(b)". 
(o) Section 524 of title 11, United States Code, is amended— 
(1) in subsections (a)(1), (c)(1), and (d) by striking out "or 1328" 
each place it appears and inserting in lieu thereof "1228, or 
1328", and 
(2) in subsection (a)(3) by striking out "or 1328(a)(1)" and 
inserting in lieu thereof ", 1228(a)(1), or 1328(aXl)". 
(p) Section 557(d)(3) of title 11, United States Code, is amended by 
inserting "1202," after "1104,". 
(q) Section 706 of title 11, United States Code, is amended— 
(1) in subsection (a)— 
t^ * 
(A) by striking out "or 1307" and inserting in lieu thereof 
", 1307, or 1208", and 
" 
(B) by striking out "or 13" and inserting in lieu thereof ", 
12, or 13", and 
(2) in subsection (c) by inserting "12 or" before "13". 
(r) Section 7260)) of title 11, United States Code, is amended by 
inserting "1208," after "section 1112". 
100 STAT. 3116 
PUBLIC LAW 99-554—OCT. 27, 1986 
(s) Section 727(aX9) of title 11, United States Code, is amended by 
inserting "1228 or" before "1328". 
(t) Section 728(a) of title 11, United States Code, is amended by 
inserting "or 1208" after "section 1112". 
(u) Section 1306(a) of title 11, United States Code, is amended— 
(1) in paragraph (1) by striking out "or 11" and inserting in 
lieu thereof ", 11, or 12", and 
—b- 
(2) in paragraph (2) by striking out "or 11" and inserting in 
lieu thereof ",11, or 12". 
(v) Section 1307 of title 11, United States Code, is amended— 
(1) in subsection (b) by striking out "or 1112" and inserting in 
lieu thereof", 1112, or 1208", 
(2) in subsection (d) by inserting "or 12" after "chapter 11", 
«•;«;• and 
'• ' 
(3) in subsection (e) by striking out "or 11" and inserting in 
lieu thereof ",11, or 12". 
Subtitle C—Miscellaneous Amendments and 
Technical Corrections to Title 11 
SEC. 281. SUPPORT OBLIGATIONS. 
Section 523(a)(5) of title 11, United States Code, is amended— 
(1) by striking out "decree," and inserting in lieu thereof 
"decree", and 
(2) by inserting ", determination made in accordance with 
State or territorial law by a governmental unit," after "record". 
SEC. 282. DISCHARGE. 
Section 524(d) of title 11, United States Code is amended— 
(1) in the first sentence by striking out "shall" the first place 
it appears and inserting in lieu thereof "may", 
' -- 
(2) in the second sentence by inserting "any" after "At", and 
f 
(3) in the third sentence by inserting "the court shall hold a 
' ' hearing at which the debtor shall appear in person and" after 
"then". 
SEC. 283. TECHNICAL CORRECTIONS. 
^ 
-
(aXD Section 101(43XA)(xv) of title 11, United States Code, as 
amended by section 251, is amended by striking out "secuity" and 
inserting in lieu thereof "security". 
(2) Section 101(51) of title 11, United States Code, as amended by 
section 251, is amended by striking out the semicolon at the end 
thereof and inserting in lieu thereof a period. 
Ot)Xl) Section 303(b) of title 11, United States Code, is amended by 
striking out "subject on" and inserting in lieu thereof "subject of. 
(2) Section 303(hXl) of title 11, United States Code, is amended by 
striking out "that". 
(c) Section 3460X7) of title 11, United States Code, is amended by 
striking out "owned" and inserting in lieu thereof "owed". 
(d) lotion 3620t)) of title 11, United States Code, is amended— 
(1) in paragraph (6) by striking out "financial institution," 
each place it appears and inserting in lieu thereof ", financial 
Yd I institutions", 
* * 
(2) striking "or" after the semicolon in the first paragraph (9), 
l>jt l]r'"^ '-.JCAKJ i i 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3117 
(3) striking out "(9)" in the second paragraph (9), and "(10)" in 
paragraph (10) and inserting in lieu thereof "(10)" and "(11)", 
respectively, and 
(4) in paragraph (10), as so redesignated, by striking out the 
period at the end thereof and inserting in lieu thereof "; or". 
(e)(1) Section 365(c) of title 11, United States Code, is amended 
b y -
(1) striking "or and assignee of such contract or lease" in 
subparagraph (1)(A), and 
(2) in paragraph (3) by— 
(A) inserting "is" after "lease", and 
(B) inserting "and" after "property". 
(2) Paragraph (1) of section 365(h) of title 11, United States Code, is 
amended by inserting "or timeshare plan" after "lease" the fourth 
place it appears. 
(3) Section 365(m) of title 11, United States Code, is amended by 
striking out "362(b)(9)" and inserting in lieu thereof "362(b)(10)". 
(f)(1) Section 502(b)(6)(A)(ii) of title 11, United States Code, is 
amended by striking out "reposessed" and inserting in lieu thereof 
"repossessed". 
(2) Section 502(i) of title 11, United States Code, is amended by 
striking out "507(a)(6)" and inserting in lieu thereof "507(a)(7)". 
(g) Section 503(b) of title 11, United States Code, is amended— 
(1) in subparagraph (1)(B) by striking out "507(a)(6)" and 
inserting in lieu thereof "507(a)(7)". 
(2) in paragraph (5) by inserting "and" after the semicolon, 
and 
(3) in paragraph (6) by striking out "; and" and inserting in 
lieu thereof a period. 
(h) Section 521(4) of title 11, United States Code, is amended by 
inserting ", whether or not immunity is granted under section 344 of 
this title" after "estate" the second place it appears. 
(i)(l) Section 522(h)(1) of title 11, United States Code, is amended 
by striking out "tittle" and inserting in lieu thereof "title". 
(2) Section 522(i)(2) of title 11, United States Code, is amended by 
striking out "his" and inserting in lieu thereof "this". 
(j)(l) Section 523(a) of title 11, United States Code, is amended— 
(A) in subparagraph (1)(A) by striking out "507(a)(6)" and 
, 
inserting in lieu thereof "507(a)(7)", and 
(B) by redesignating the second paragraph (9) as paragraph 
V 
(10). 
(2) Section 523(b) of title 11, United States Code, is amended by 
striking out "Services" and inserting in lieu thereof "Service". 
(k) Section 524(d)(2) of title 11, United States Code, is amended by 
striking out "subsection" the second place it appears and inserting 
in lieu thereof "section". 
(1) Section 546(e) of title 11, United States Code, is amended by 
inserting a comma after "stockbroker". 
(m) Section 547(b)(4)(B) of title 11, United States Code, is amended 
by inserting "and" after the semicolon. 
(n) Section 548(d)(2)(B) of title 11, United States Code, is amended 
by striking out "financial institution," and inserting in lieu thereof 
", financial institution". 
(o) Section 549(b) of title 11, United States Code, is amended— 
' 
(1) by striking out "that occurs" and inserting in lieu thereof 
"made". 
.qq.fi L/ffiJ 11 
100 STAT. 3118 
PUBLIC LAW 99-554—OCT. 27, 1986 
flit "• 
(2) by striking out "is valid against the trustee to the extent 
' ! o f and inserting in lieu thereof "to the extent", and 
(3) by inserting "is" before "given", 
(p) Section 554(c) of title 11, United States Code, is amended by 
striking out "521(aXl)" and inserting in lieu thereof "521(1)". 
(q) The items relating to sections 557, 558, and 559 in the table of 
11 use 541 et 
sections for subchapter III of chapter 5 of title 11, United States 
«^9- 
Code, are amended to read as follows: 
"557. Expedited determination of interests in, and abandonment or other disposi-
tion of grain assets. 
"558. Defenses of the estate. 
"559. Contractual right to liquidate a repurchase agreement.". 
(r) Section 724(bX2) of title 11, United States Code, is amended 
b y -
(1) striking out "or", and 
• ' 
(2) inserting ", or 507(aX6)" after "507(aX5)". 
(s) Section 726(b) of title 11, United States Code, is amended by 
striking out "or (6)" and inserting in lieu thereof "(6) or (7) . 
(t) Section 743 of title 11, United States Code, is amended by 
striking out "(d)". 
(u) Section 1121(d) of title 11, United States Code, is amended by 
striking out "subsection" and inserting in lieu thereof "subsections 
(b)and^. 
(v) Section 1129(a) of title 11, United States Code, is amended— 
(1) in paragraph (7) by striking out "of the first time it 
appears, 
'"^* 
(2) in subparagraph (9XB) by striking out "or 507(aX5)" the 
first time it appears and inserting in lieu thereof "507(aX5) or 
507(aX6)", and 
(3) in paragraph (9XC) by striking out "(6)" and inserting in 
lieu thereof "(7)'^ 
(w) Section 1302(eXl) of title 11, United States Code, is amended by 
striking out "fix" and inserting in lieu thereof "set for such 
individual". 
(x) Section 1324 of title 11, United States Code, is amended in the 
second sentence by striking out "the" the first place it appears. 
(y) Section 1325(bX2XA) of title 11, United States Code, is amended 
by striking out "or" after the semicolon and inserting in lieu thereof 
"and". 
(z) Section 1326(aX2) of title 11, United States Code, is amended by 
striking out "payments" and inserting in lieu thereof "pajrment . 
11 use app. 
(aa) Official Bankruptcy Form No. 1, referred to in Rule 1002 of 
the Bankruptcy Rules, is amended— 
(1) in paragraph (6) by striking out "7 or 13" and inserting in 
lieu thereof '7,11,12, or 13", and 
a^' ' 
(2) by striking out "7 or 13" and inserting in lieu thereof "7, 
11,12, or 13" in the statement to be made by the attorney in 
X« > "Exhibit'B'". 
b.bnsm, TITLE III—TRANSITION AND 
ADMINISTRATIVE PROVISIONS 
•{Cf 
28 u s e 581 note. 
SEC. 301. INCUMBENT UNITED STATES TRUSTEES. 
(a) AREA FOR WHICH APPOINTED.—Notwithstanding any paragraph 
of section 581(a) of title 28, United States Code, as in effect 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3119 
before the effective date of this Act, a United States trustee serving 
in such office on the effective date of this Act shall serve the 
remaining term of such office as United States trustee for the region 
specified in a paragraph of such section, as amended by this Act, 
that includes the site at which the primary official station of the 
United States trustee is located immediately before the effective 
date of this Act. 
(b) TERM OF OFFICE.—Notwithstanding section 581(b) of title 28, 
United States Code, as in effect before the effective date of this Act, 
the term of office of any United States trustee serving in such office 
on the date of the enactment of this Act shall expire— 
(1) 2 years after the expiration date of such term of office 
under such section, as so in effect, or 
(2) 4 years after the date of the enactment of this Act, 
whichever occurs first. 
SEC. 302. EFFECTIVE DATES; APPLICATION OF AMENDMENTS. 
28 USC 581 note. 
(a) GENERAL EFFECTIVE DATE.—Except as provided in subsections 
(b), (c), (d), (e), and (f), this Act and the amendments made by this Act 
shall take effect 30 days after the date of the enactment of this Act. 
(b) AMENDMENTS RELATING TO BANKRUPTCY JUDGES AND INCUM-
BENT UNITED STATES TRUSTEES.—Subtitle A of title I, and sections 
301 and 307(a), shall take effect on the date of the enactment of this 
Act. 
(c) AMENDMENTS RELATING TO FAMILY FARMERS.—(1) The amend-
ments made by subtitle B of title II shall not apply with respect to 
cases commenced under title 11 of the United States Code before the 
offGCtivG dd.t)6 of t^h.is A.ct 
(2) Section 1202 of title 11 of the United States Code (as added by 
the amendment made by section 255 of this Act) shall take effect on 
the effective date of this Act and before the amendment made by 
section 227 of this Act. 
(3) Until the amendments made by subtitle A of title II of this Act 
become effective in a district and apply to a case, for purposes of 
such case— 
(A)(i) any reference in section 326(b) of title 11 of the United 
States Code to chapter 13 of title 11 of the United States Code 
ii USC 1301 et 
shall be deemed to be a reference to chapter 12 or chapter 13 of seq. 
title 11 of the United States Code, 
^"^^' P ^i^^-
(ii) any reference in such section 326(b) to section 1302(d) of 
. ,^^ title 11 of the United States Code shall be deemed to be a 
^im, reference to section 1302(d) of title 11 of the United States Code 
or section 586(b) of title 28 of the United States Code, and 
w 
(iii) any reference in such section 326(b) to section 1302(a) of 
title 11 of the United States Code shall be deemed to be a 
i^ reference to section 1202(a) or section 1302(a) of title 11 of the 
United States Code, and 
y, 
(BXi) the first two references in section 1202(a) of title 11 of 
the United States Code (as added by the amendment made by 
section 255 of this Act) to the United States trustee shall be 
deemed to be a reference to the court, and 
(ii) any reference in such section 1202(a) to section 586(b) of 
title 28 of the United States Code shall be deemed to be a 
reference to section 1202(c) of title 11 of the United States Code 
(as so added). 
(d) APPUCATION OF AMENDMENTS TO JUDICIAL DISTRICTS.— 
100 STAT. 3120 
PUBLIC LAW 99-554—OCT. 27, 1986 
^ -... ^ j CERTAIN REGIONS NOT CURRENTLY SERVED BY UNITED STATES 
TRUSTEES.—(A) The amendments made by subtitle A of title II of 
this Act, and section 1930(a)(6) of title 28 of the United States 
Code (as added by section 117(4) of this Act), shall not— 
(i) become effective in or with respect to a judicial district 
fiviti 
specified in subparagraph (B) until, or 
(ii) apply to cases while pending in such district before, 
the expiration of the 270-day period beginning on the effective 
date of this Act or of the 30-day period beginning on the date 
the Attorney General certifies under section 303 of this Act the 
region specified in a paragraph of section 581(a) of title 28, 
United States Code, as amended by section 111(a) of this Act, 
that includes such district, whichever occurs first. 
Puerto Rico. 
(B) Subparagraph (A) applies to the following: 
State listing. 
(j) The judicial district established for the Commonwealth 
of Puerto Rico, 
(ii) The District of Connecticut. 
g*T"''"' '" (iii) The judicial districts established for the State of New 
York (other than the Southern District of New York). 
(iv) The District of Vermont. 
(v) The judicial districts established for the State of Penn-
sylvania. 
(vi) The judicial district established for the Virgin Islands 
of the United States, 
(vii) The District of Maryland. 
(viii) The judicial districts established for the State of 
North Carolina. 
(ix) The District of South Carolina. 
.,,-; ,j 
(x) The judicial districts established for the State of West 
f' 
Virginia. 
(xi) The Western District of Virginia. 
i« 
(xii) The Eastern District of Texas. 
JoA 
biiii) The judicial districts established for the State of 
io af 
Wisconsin. 
(xiv) The judicial districts established for the State of 
i 
Iowa. 
.. I O
f ../IT ' 
(xv) The judicial districts established for the State of New 
""-"*'" " ' ^ r , 
•
•
'
•
>
•
" Ki 
Mexico. 
GOJ; 
, i>/ 
(xvi) The judicial districts established for the State of 
-. 
f 
Oklahoma. 
. , 
;^ '* 
(xvii) The District of Utah. 
(xviii) The District of Wyoming (including those portions 
: 
of Yellowstone National Park situated in the States of 
J 
Montana and Idaho). 
* 
(xix) The judicial districts established for the State of 
Alabama. 
" 
(xx) The judicial districts established for the State of 
- 
^ 
Florida. 
^^ ' 
(xxi) The judicial districts established for the State of 
Georgia. 
(2) CERTAIN REMAINING JUDICIAL DISTRICTS NOT CURRENTLY 
SERVED B
Y UNITED STATES TRUSTEES.—(A) The amendments made 
by subtitle A of title II of this Act, and section 1930(a)(6) of title 
28 of the United States Code (as added by section 117(4) of this 
• 
Act), shall not— 
(i) become effective in or with respect to a judicial district 
specified in subparagraph (B) until, or 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3121 
(ii) apply to cases while pending in such district before, 
the expiration of the 2-year period beginning on the effective 
date of this Act or of the 30-day period beginning on the date 
the Attorney General certifies under section 303 of this Act the 
region specified in a paragraph of section 581(a) of title 28, 
United States Code, as amended by section 111(a) of this Act, 
that includes such district, whichever occurs first, 
i 
(B) Subparagraph (A) applies to the following: 
i, 
(i) The judicial districts established for the State of Louisi-
ana. 
smfY 
(ii) The judicial districts established for the State of Mis-
sissippi, 
(iii) The Southern District of Texas and the Western 
t 
District of Texas. 
(iv) The judicial districts established for the State of 
Kentucky. 
-s!A 
(v) The judicial districts established for the State of Ten-
nessee. 
1c 3 
(vi) The judicial districts established for the State of 
Michigan. 
-qati 
(vii) The judicial districts established for the State of 
Ohio. 
I" 
(viii) The judicial districts established for the State of 
Illinois (other than the Northern District of Illinois), 
(ix) The judicial districts established for the State of 
t 
Indiana. 
(x) The judicial districts established for the State of Ar-
t«' 1
? 
kansas. 
e 
(xi) The judicial districts established for the State of 
Nebraska. 
* 
(xii) The judicial districts established for the State of 
Missouri, 
(xiii) The District of Arizona. 
^
? 
, ' 
' 
(xiv) The District of Hawaii, 
i 
(xv) The judicial district established for Guam. 
(xvi) The judicial district established for the Common-
wealth of the Northern Mariana Islands, 
(xvii) The judicial districts established for the State of 
i 
California (other than the Central District of California). 
1 V 
(xviii) The District of Nevada. 
(xix) The District of Alaska. 
6S8i 10 , 
(xx) The District of Idaho. 
(xxi) The District of Montana. 
:o 
I 
(xxii) The District of Oregon. 
(xxiii) The judicial districts established for the State of 
Washington. 
^.. «' 
(3) JUDICIAL DISTRICTS FOR THE STATES OF ALABAMA AND NORTH 
CAROUNA.—(A) Notwithstanding paragraphs (1) and (2), and any 
other provision of law, the amendments made by subtitle A of 
title II of this Act, and section 1930(aX6) of title 28 of the United 
States Code (as added by section 117(4) of this Act), shall not— 
s 
(i) become effective in or with respect to a judicial district 
-; 
specified in subparagraph (E) until, or 
(ii) apply to cases while pending in such district before, 
such district elects to be included in a bankruptcy region estab-
lished in section 581(a) of title 28, United States Code, as 
State listing. 
Guam. 
Northern 
Mariana 
Islands. 
100 STAT. 3122 
PUBLIC LAW 99-554—OCT. 27, 1986 
amended by section 111(a) of this Act, or October 1, 1992, 
whichever occurs first. 
(B) Any election under subparagraph (A) shall be made upon 
a majority vote of the chief judge of such district and each 
bankruptcy judge in such judicial district in favor of such 
election. 
(C) Notice that an election has been made under subpara-
gua-ii -
*
j
£
;
3
g 
graph (A) shall be given, not later than 10 days after such 
election, to the Attorney General and the appropriate Federal 
Circuit Court of Appeals for such district. 
-r-.!.,u (D) Any election made under subparagraph (A) shall become 
effective on the date the amendments made by subtitle A of title 
II of this Act become effective in the region that includes such 
district or 30 days after the Attorney General receives the 
io '3 notice required under subparagraph (C), whichever occurs later. 
(E) Subparagraph (A) applies to the following: 
-fisl 
(i) The judicial districts established for the State of Ala-
bama. 
Io' e:i:j3 
(ii) The judicial districts established for the State of 
North Carolina. 
Io 3 
(F)(i) Subject to clause (ii), with respect to cases under chap-
ters 7,11,12, and 13 of title 11, United States Code— 
Io 9 
(I) commenced before the effective date of this Act, and 
(II) pending in a judicial district in the State of Alabama 
Io y 
or the State of North Carolina before any election made 
under subparagraph (A) by such district becomes effective 
-
* A '•<' 
or October 1,1992, whichever occurs first, 
the amendments made by section 113 and subtitle A of title II of 
this Act, and section 1930(aX6) of title 28 of the United States 
Code (as added by section 117(4) of this Act), shall not apply 
until October 1, 1993, or the expiration of the 1-year period 
beginning on the date such election becomes effective, which-
ever occurs first. 
(ii) For purposes of clause (i), the amendments made by 
section 113 and subtitle A of title II of this Act, and section 
1930(a)(6) of title 28 of the United States Code (as added by 
,^^ 
section 117(4) of this Act), shall not apply with respect to a case 
under chapter 7,11,12, or 13 of title 11, United States Code, if— 
(I) the trustee in the case files the final report and 
account of administration of the estate, required under 
section 704 of such title, or 
(II) a plan is confirmed under section 1129, 1225, or 1325 
of such title, 
before October 1, 1993, or the expiration of the 1-year period 
beginning on the date such election becomes effective, which-
ever occurs first. 
(G) Notwithstanding section 589a of title 28, United States 
Code, as added by section 115 of this Act, funds collected as a 
result of the amendments made by section 117 of this Act in a 
judicial district in the State of Alabama or the State of North 
Carolina under section 1930(a) of title 28, United States Code, 
before the date the amendments made by subtitle A of title II of 
this Act take effect in such district shall be deposited in the 
general receipts of the Treasury. 
(H) The repeal made by section 231 of this Act shall not apply 
fet 
in or with respect to the Northern District of Alabama until 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3123 
March 1, 1987, or the effective date of any election made under 
subparagraph (A) by such district, whichever occurs first. 
(I) In any judicial district in the State of Alabama or the State 
of North Carolina that has not made the election described in 
subparagraph (A), any person who is appointed under regula-
tions issued by the Judicial Conference of the United States to 
administer estates in cases under title 11 of the United States 
Code may— 
(i) establish, maintain, and supervise a panel of private 
trustees that are eligible and available to serve as trustees 
AiiL 
ijj cases under title 11, United States Code, and 
~ « 
^-U -
^ 
(ii) supervise the administration of cases and trustees in 
If ' 
cases under chapters 7, 11, 12, and 13 of title 11, United 
States Code, 
until the amendments made by subtitle A of title II take effect 
in such district. 
(e) APPUCATION OF UNITED STATES TRUSTEE SYSTEM AND QUAR-
TERLY FEES TO CERTAIN CASES.— 
(1) IN GENERAL.—Subject to paragraph (2), with respect to 
» cases under chapters 7, 11, 12, and 13 of title 11, United States 
,«».:.'^ 
/ Code— 
11 use 701 
T 
(A) commenced before the effective date of this Act, and 
^^ seq., 
, 
(B) pending in a judicial district referred to in section 
p^3io5-*ii usc^' 
j 
581(a) of title 28, United States Code, as amended by section 
1301 et'seq. 
111(a) of this Act, for which a United States trustee is not 
authorized before the effective date of this Act to be 
appointed, 
the amendments made by section 113 and subtitle A of title II of 
ito; 1
1
5
. aaiJ 8S 
, 
this Act, and section 1930(aX6) of title 28 of the United States 
, 
Code (as added by section 117(4) of this Act), shall not apply 
^ until the expiration of the 3-year period beginning on the 
effective date of this Act, or of the 1-year period beginning on 
the date the Attorney General certifies under section 303 of this 
Act the region specified in a paragraph of such section 581(a), as 
,'" so amended, that includes such district, whichever occurs first. 
(2) AMENDMENTS INAPPUCABLE.—For purposes of paragraph 
(1), the amendments made by section 113 and subtitle A of title 
II of this Act, and section 1930(aX6) of title 28 of the United 
States Code (as added by section 117(4) of this Act), shall not 
' 
apply with respect to a case under chapter 7,11,12, or 13 of title 
11, United States Code, if— 
(A) the trustee in the case files the final report and 
account of administration of the estate, required under 
°*^ S 
section 704 of such title, or 
(B) a plan is confirmed under section 1129, 1225, or 1325 
- 
of such title, 
^ before the expiration of the 3-year period, or the expiration of 
^ 
the 1-year period, specified in paragraph (1), whichever occurs 
' 
first. 
I 
(3) RULE OF CONSTRUCTION REGARDING FEES FOR CASES.—This 
Act and the amendments made by section 117(4) of this Act 
8 
shall not be construed to require the payment of a fee under 
paragraph (6) of section 1930(a) of title 28, United States Code, 
fe in a case under title 11 of the United States C!ode for any 
conduct or period occurring before such paragraph becomes 
effective in the district in which such case is pending. 
100 STAT. 3124 
PUBLIC LAW 99-554—OCT. 27, 1986 
if) REPEAL OF CHAPTER 12 OF TITLE 11.— Chapter 12 of title 11 of 
the United States Code is repealed on October 1, 1993. All cases 
commenced or pending under chapter 12 of title 11, United States 
Code, and all matters and proceedings in or relating to such cases, 
shall be conducted and determined under such chapter as if such 
chapter had not been repealed. The substantive rights of parties in 
connection with such cases, matters, and proceedings shall continue 
to be governed under the laws applicable to such cases, matters, and 
proceedings as if such chapter had not been repealed. 
28 u s e 581 note. 
SEC. 303. CERTIFICATION OF JUDICIAL DISTRICTS; NOTICE AND PUBLICA-
TION OF CERTIFICATION. 
(a) CERTIFICATION BY ATTORNEY GENERAL.—The Attorney General 
may certify in writing a region specified in a paragraph of section 
581(a) of title 28, United States Code (other than paragraph (16)), as 
amended by section 111(a) of this Act, to the appropriate court of 
appeals of the United States, for the purpose of informing such court 
that certain amendments made by this Act will become effective in 
accordance with section 302 of this Act. 
Federal 
(b) NOTICE AND PUBLICATION OF CERTIFICATION.—Whenever the 
Register, 
Attorney General transmits a certification under subsection (a), the 
publication. 
Attorney General shall simultaneously— 
(1) transmit a copy of such certification to the Speaker of the 
4
V
i
?
. . ''ifci 
House of Representatives and to the President pro tempore of 
the Senate, and 
^'" 
(2) publish such certification in the Federal Register. 
28 u s e 581 note. 
SEC. 304. ADMINISTRATIVE PROVISIONS. 
(a) COOPERATIVE ARRANGEMENTS.—The Attorney General and the 
Director of the Administrative Office of the United States Courts 
may enter into agreements under which United States trustees 
may— 
(1) use— 
(A) the services, equipment, personnel, records, reports, 
and data compilations, in any form, of the courts of the 
United States, and 
(B) the facilities of such courts, and 
(2) cooperate in the use by the courts of the United States of^ 
(A) the services, equipment, personnel, records, reports, 
and data compilations, in any form, of United States trust-
|j„,, •. ees, and 
-,g; 
(B) the facilities of such trustees, 
to prevent duplication during the 2-year period beginning on 
the effective date of this Act. 
(b) INFORMATION AND DOCUMENTS RELATING TO BANKRUPTCY CASES 
AND UNITED STATES TRUSTEES.—The Director of the Administrative 
Office of the United States Courts shall make available to United 
States trustees, at the request of the Attorney General and on a 
continuing basis, all records, reports, and data compilations relating 
to— 
(1) cases and proceedings under title 11 of the United States 
Code, and 
(2) the duties of United States trustees under titles 11 and 28 
of the United States Code. 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3125 
SEC. 305. APPLICATION OF CERTAIN^BANKRUPTCY RULES. 
28 USC 581 note. 
(a) RULES RELATING TO THE UNITED STATES TRUSTEE SYSTEM.—If a 
United States trustee is not authorized, before the effective date of 
this Act, to be appointed for a judicial district referred to in section 
581(a) of title 28, United States Code, as amended by section 111(a) of 
this Act, then part X of the Bankruptcy Rules shall not apply to 
cases in such district until the amendments made by subtitle A of 
title II of this Act become effective under section 302 of this Act in 
such district. 
(b) RULES RELATING TO CHAPTER 12 OF TITLE 11.—The rules pre- 
.; 
scribed under section 2075 of title 28, United States Code, and in 
effect on the date of the enactment of this Act shall apply to cases 
filed under chapter 12 of title 11, United States Code, to the extent 
practicable and not inconsistent with the amendments made by title 
II of this Act. 
SEC. 306. SALARY OF INCUMBENT UNITED STATES TRUSTEES. 
28 USC 581 note. 
For service as a United States trustee in the period beginning on 
the effective date of this Act and ending on the expiration under 
section 301 of this Act of their respective terms of office, the salary 
payable to United States trustees serving in such offices on the 
effective date of this Act sliall be fixed in accordance with section 
587 of title 28, United States Code, as amended by section 114(a) of 
this Act. 
SEC. 307. PRESERVATION OF UNITED STATES TRUSTEE SYSTEM DURING 
28 USC 581 note. 
PENDENCY OF LEGISLAf 
ION; REPEALER. 
(a) TEMPORARY DELAY OF REPEAL OF UNITED STATES TRUSTEE 
SYSTEM.—Effective immediately before November 10, 1986, section 
408(c) of the Act of November 6, 1978 (Public Law 95-598; 92 Stat. 
2687), is amended by striking out "November 10,1986" and inserting 
in lieu thereof "30 days after the effective date of the Bankruptcy 
Judges, United States Trustees, and Family Farmer Bankruptcy Act 
of 1986". 
(b) CONFORMING AMENDMENT.—Section 408 of the Act of Novem-
ber 6,1978 (Public Law 95-598; 92 Stat. 2687), is repealed. 
SEC. 308. CONSIDERATION OF CURRENT PRIVATE TRUSTEES FOR 
28 USC 581 note. 
APPOINTMENT BY UNITED STATES TRUSTEES. 
(a) TRUSTEES IN BANKRUPTCY CASES UNDER CHAPTER 7.—It is the 
sense of the Congress that individuals who are serving before the 
effective date of this Act, as trustees in cases under chapter 7 of title 
11, United States Code, should be considered by United States 
11 USC 701 et 
trustees for appointment under section 586(a)(1) of title 28, United 
«^9-
States Code, to the panels of private trustees that are established as 
a result of the amendments made by this Act. 
(b) STANDING TRUSTEES IN BANKRUPTCY CASES UNDER CHAPTER 
13.—It is the sense of the Congress that individuals who are serving 
before the effective date of this Act, as standing trustees in cases 
under chapter 13 of title 11, United States Code, should be consid- 
11 USC 1301 et 
ered by the United States trustees for appointment under section 
««9-
5860o) of title 28, United States Code, as standing trustees who are 
appointed as a result of the amendments made by this Act. 
71-194 0 - 89 - 8 : QL. 3 PartA 
100 STAT. 3126 
PUBLIC LAW 99-554—OCT. 27, 1986 
28 u s e 581 note. 
SEC. 309. APPOINTMENT OF UNITED STATES TRUSTEES BY THE ATTORNEY 
GENERAL. 
It is the sense of the Congress that individuals otherwise quahfied 
who are serving, before the effective date of this Act, as estate 
administrators under title 11 of the United States Code should be 
considered by the Attorney General for appointment under sections 
581 and 582 of title 28, United States Code, to new positions of 
United States trustee and assistant United States trustee resulting 
from the amendments made by this Act. 
28 u s e 581 note. 
SEC. 310. ELECTRONIC CASE MANAGEMENT DEMONSTRATION PROJECT. 
(a) EsTABUSHMENT OF PROJECT.—Not later than 1 year after the 
effective date of this Act, the Director of the Executive Office for 
United States Trustees, in consultation with the Director of the 
Administrative Office of the United States Courts, shall establish an 
electronic case management demonstration project to be carried out 
.
5 /
>
! :v' >8 • 
in 3 Federal judicial districts that have a sufficiently large and 
varied bankruptcy caseload so as to provide a meaningful evaluation 
Contracts. 
of the cost and effectiveness of such system. A contract for such 
project shall be awarded— 
(1) on the basis of competitive bids submitted by qualified 
nongovernmental entities that are able to design an automated 
joint information system for use by the United States courts and 
by United States trustees, and 
(2) in accordance with the Federal Property and Administra-
40 use 471 note. 
tive Services Act of 1949, the Office of Federal Procurement 
41 use 401 note. 
Policy Act, and title 31 of the United States Code. 
(b) STUDY BY GENERAL ACCOUNTING OFFICE.—Not later than 1 
year after the electronic case management system begins to operate 
in all of the judicial districts participating in the demonstration 
project carried out under subsection (a), the General Accounting 
Office shall conduct a study to compare the cost and effectiveness of 
such system with the cost and effectiveness of case management 
systems used in Federal judicial districts that are not participating 
in such project. 
(c) TERM OF PROJECT.—The demonstration project required by 
subsection (a) shall be carried out until— 
(1) the expiration of the 2-year period beginning on the date 
'" ' 
the electronic case management system begins to operate in all 
of the judicial districts participating in such project, or 
(2) legislation is enacted to extend, expand, modify, or termi-
nate the operation of such project, 
whichever occurs first. 
, ;,jr i f If 
(d) USE BY CLERKS OF THE COURTS.—The electronic case manage-
' o^t 
ment system demonstrated under the project required by subsection 
(a) shall provide the clerk of court in each district in which such 
system is operated, with a means of— 
(1) maintaining a complete electronic case file of all relevant 
information contained in petitions and schedules (and any 
amendments thereto) relating to debtors in cases under title 11 
of the United States Code, including— 
'' 
* ' 
(A) a complete list of creditors in each such case, as listed 
J by the debtor, 
?7s ou¥ 
(B) a complete list of assets scheduled by the debtor, the 
value of such asset, and any action taken by the trustee or 
debtor in possession with regard to such asset during the 
pendency of such case. 
PUBLIC LAW 99-554—OCT. 27, 1986 
100 STAT. 3127 
(C) a complete list of debts and, with respect to each 
debt— 
. ,, 
' 
(i) any priority of such debt under title 11 of the 
United States Code, 
.f . 
(ii) whether such debt is secured or unsecured, and 
K' 
(iii) 
whether 
such 
debt 
is 
contingent 
or 
noncontingent, and 
(D) the debtor's statements of current expenses and 
income, and 
(2) maintaining all calendars and dockets and producing all 
notices required to be sent in cases under title 11 of the United 
States Code. 
(e) USE BY UNITED STATES TRUSTEES.—The electronic case manage-
ment system demonstrated under the project required by subsection 
(a) shall provide, at a minimum, the United States trustee in each 
district in which such system is operated with— 
(1) complete electronic case files which contain, in addition to 
* 
the information listed in subsection (d), records of case openings, 
case closings, hearings, and the filing of all motions, trustee 
appointments, pleadings, and responses, as well as a record of 
the responses by the United States trustee to those motions, 
trustee appointments, and pleadings, 
(2) a means to generate standardized forms for motions, 
appointments, pleadings, and responses, 
y 
(3) a means to generate standard management reports and 
letters on an exception basis, 
(4) a means to maintain accounting records, reports, and 
information required to be maintained by debtors in possession 
and trustees in cases under title 11 of the United States Code, 
(5) a means to calculate and record distribution to creditors, 
final applications and orders for distribution, and final case 
closing reports, and 
(6) a means to monitor the payment of filing and other 
required fees. 
(f) AVAILABIUTY TO CERTAIN GrOVERNMENTAL ENTITIES.—Unlim-
ited access to information maintained in the electronic case manage-
ment system demonstrated under the project required by subsection 
(a) shall be provided at no charge to the following: 
(1) The Congress. 
(2) The Executive Office for the United States Trustees. 
(3) The Administrative Office of the United States Courts. 
(4) The clerks of the courts in judicial districts in which such 
system is operated and persons who review case information, in 
accordance with section 107(a) of title 11, United States Code, in 
the offices of the clerks. 
(5) The judges on the bankruptcy and district courts in dis-
tricts in which such system is operated. 
(6) Trustees in cases pending in districts in which such system 
is operated. 
(g) FEES FOR OTHER USERS.—(1) The entity which is awarded a 
Contracts. 
contract to provide the electronic case management system dem-
onstrated under this project may, under guidelines established by 
the Director of the Executive Office for the United States Trustees 
in the provisions of such contract, collect reasonable fees from assets 
of the estate of the debtor in bankruptcy for providing notices and 
services to the court and trustees under the demonstration project. 
100 STAT. 3128 
PUBLIC LAW 99-554—OCT. 27, 1986 
Contracts. 
Public 
(2) Access to information maintained in electronic case files pursu-
r^I°l^tl^^' 
^^t to the demonstration project may be provided to persons other 
than those specified in subsection (f), but such access shall be limited 
to viewing such information only. A reasonable charge for such 
access may be collected by the entity which is awarded a contract 
under this section, in accordance with the guidelines established by 
the Director of the Executive Office for the United States Trustees in 
such contract. A reasonable portion of any charge so collected may 
be required by the Director to be remitted to the Executive Office for 
United States Trustees and deposited in the United States Trustee 
System Fund established in section 589a of title 28, United States 
Code. 
(h) SECURITY.—Access provided under subsection (f) to an entity or 
an individual shall be subject to such security limitations as may be 
imposed by the Congress or the head of the affected entity. 
28 u s e 581 note. 
SEC. 311. CASES PENDING UNDER THE BANKRUPTCY ACT. 
At the end of one calendar year following the date the amend-
ments made by subtitle A of title II of this Act take effect in a 
district in which any case is still pending under the Bankruptcy Act, 
the district court shall withdraw the reference of any such case and, 
after notice and a hearing, determine the status of the case. Such 
case shall be remanded to the bankruptcy judge with such instruc-
tions as are necessary for the prompt closing of the case and with a 
requirement that a progress report on the case be provided by the 
bankruptcy judge after such interval as the district court deems 
appropriate. 
Approved October 27, 1986. 
LEGISLATIVE HISTORY—H.R. 5316: 
HOUSE REPORTS: No. 99-764 (Comm. on the Judiciary) and No. 99-958 (Comm. of 
CONGRESSIONAL RECORD, Vol. 132 (1986): 
Aug. 12, considered and passed House. 
,, '/ 
* ' 
Aug. 15, considered and passed Senate, amended. 
Oct. 2, House agreed to conference report. 
Oct. 3, Senate agreed to conference report.