BAPCPA Page 2 - Bankruptcy Abuse Prevention

(Continued from Page 1)

SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANKRUPTCY.

(a) EXCLUSIONS- Section 541 of title 11, United States Code, is amended--

(1) in subsection (b)--

(A) in paragraph (4), by striking `or' at the end;

(B) by redesignating paragraph (5) as paragraph (9); and

`(5) funds placed in an education individual retirement account (as defined in section 530(b)(1) of the Internal Revenue Code of 1986) not later than 365 days before the date of the filing of the petition in a case under this title, but--

`(A) only if the designated beneficiary of such account was a child, stepchild, grandchild, or stepgrandchild of the debtor for the taxable year for which funds were placed in such account;

`(B) only to the extent that such funds--

`(i) are not pledged or promised to any entity in connection with any extension of credit; and

`(ii) are not excess contributions (as described in section 4973(e) of the Internal Revenue Code of 1986); and

`(C) in the case of funds placed in all such accounts having the same designated beneficiary not earlier than 720 days nor later than 365 days before such date, only so much of such funds as does not exceed $5,000;

`(6) funds used to purchase a tuition credit or certificate or contributed to an account in accordance with section 529(b)(1)(A) of the Internal Revenue Code of 1986 under a qualified State tuition program (as defined in section 529(b)(1) of such Code) not later than 365 days before the date of the filing of the petition in a case under this title, but--

`(A) only if the designated beneficiary of the amounts paid or contributed to such tuition program was a child, stepchild, grandchild, or stepgrandchild of the debtor for the taxable year for which funds were paid or contributed;

`(B) with respect to the aggregate amount paid or contributed to such program having the same designated beneficiary, only so much of such amount as does not exceed the total contributions permitted under section 529(b)(7) of such Code with respect to such beneficiary, as adjusted beginning on the date of the filing of the petition in a case under this title by the annual increase or decrease (rounded to the nearest tenth of 1 percent) in the education expenditure category of the Consumer Price Index prepared by the Department of Labor; and

`(C) in the case of funds paid or contributed to such program having the same designated beneficiary not earlier than 720 days nor later than 365 days before such date, only so much of such funds as does not exceed $5,000;'; and

(2) by adding at the end the following:

`(e) In determining whether any of the relationships specified in paragraph (5)(A) or (6)(A) of subsection (b) exists, a legally adopted child of an individual (and a child who is a member of an individual's household, if placed with such individual by an authorized placement agency for legal adoption by such individual), or a foster child of an individual (if such child has as the child's principal place of abode the home of the debtor and is a member of the debtor's household) shall be treated as a child of such individual by blood.'.

(b) DEBTOR'S DUTIES- Section 521 of title 11, United States Code, as amended by section 106, is amended by adding at the end the following:

`(c) In addition to meeting the requirements under subsection (a), a debtor shall file with the court a record of any interest that a debtor has in an education individual retirement account (as defined in section 530(b)(1) of the Internal Revenue Code of 1986) or under a qualified State tuition program (as defined in section 529(b)(1) of such Code).'.

SEC. 226. DEFINITIONS.

(a) DEFINITIONS- Section 101 of title 11, United States Code, is amended--

(1) by inserting after paragraph (2) the following:

`(3) `assisted person' means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000;';

(2) by inserting after paragraph (4) the following:

`(4A) `bankruptcy assistance' means any goods or services sold or otherwise provided to an assisted person with the express or implied purpose of providing information, advice, counsel, document preparation, or filing, or attendance at a creditors' meeting or appearing in a case or proceeding on behalf of another or providing legal representation with respect to a case or proceeding under this title;'; and

(3) by inserting after paragraph (12) the following:

`(12A) `debt relief agency' means any person who provides any bankruptcy assistance to an assisted person in return for the payment of money or other valuable consideration, or who is a bankruptcy petition preparer under section 110, but does not include--

`(A) any person who is an officer, director, employee, or agent of a person who provides such assistance or of the bankruptcy petition preparer;

`(B) a nonprofit organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986;

`(C) a creditor of such assisted person, to the extent that the creditor is assisting such assisted person to restructure any debt owed by such assisted person to the creditor;

`(D) a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) or any Federal credit union or State credit union (as those terms are defined in section 101 of the Federal Credit Union Act), or any affiliate or subsidiary of such depository institution or credit union; or

`(E) an author, publisher, distributor, or seller of works subject to copyright protection under title 17, when acting in such capacity.'.

(b) CONFORMING AMENDMENT- Section 104(b) of title 11, United States Code, is amended by inserting `101(3),' after `sections' each place it appears.

SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES.

(a) ENFORCEMENT- Subchapter II of chapter 5 of title 11, United States Code, is amended by adding at the end the following:

`Sec. 526. Restrictions on debt relief agencies

`(a) A debt relief agency shall not--

`(1) fail to perform any service that such agency informed an assisted person or prospective assisted person it would provide in connection with a case or proceeding under this title;

`(2) make any statement, or counsel or advise any assisted person or prospective assisted person to make a statement in a document filed in a case or proceeding under this title, that is untrue and misleading, or that upon the exercise of reasonable care, should have been known by such agency to be untrue or misleading;

`(3) misrepresent to any assisted person or prospective assisted person, directly or indirectly, affirmatively or by material omission, with respect to--

`(A) the services that such agency will provide to such person; or

`(B) the benefits and risks that may result if such person becomes a debtor in a case under this title; or

`(4) advise an assisted person or prospective assisted person to incur more debt in contemplation of such person filing a case under this title or to pay an attorney or bankruptcy petition preparer fee or charge for services performed as part of preparing for or representing a debtor in a case under this title.

`(b) Any waiver by any assisted person of any protection or right provided under this section shall not be enforceable against the debtor by any Federal or State court or any other person, but may be enforced against a debt relief agency.

`(c)(1) Any contract for bankruptcy assistance between a debt relief agency and an assisted person that does not comply with the material requirements of this section, section 527, or section 528 shall be void and may not be enforced by any Federal or State court or by any other person, other than such assisted person.

`(2) Any debt relief agency shall be liable to an assisted person in the amount of any fees or charges in connection with providing bankruptcy assistance to such person that such debt relief agency has received, for actual damages, and for reasonable attorneys' fees and costs if such agency is found, after notice and a hearing, to have--

`(A) intentionally or negligently failed to comply with any provision of this section, section 527, or section 528 with respect to a case or proceeding under this title for such assisted person;

`(B) provided bankruptcy assistance to an assisted person in a case or proceeding under this title that is dismissed or converted to a case under another chapter of this title because of such agency's intentional or negligent failure to file any required document including those specified in section 521; or

`(C) intentionally or negligently disregarded the material requirements of this title or the Federal Rules of Bankruptcy Procedure applicable to such agency.

`(3) In addition to such other remedies as are provided under State law, whenever the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating this section, the State--

`(A) may bring an action to enjoin such violation;

`(B) may bring an action on behalf of its residents to recover the actual damages of assisted persons arising from such violation, including any liability under paragraph (2); and

`(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action and reasonable attorneys' fees as determined by the court.

`(4) The district courts of the United States for districts located in the State shall have concurrent jurisdiction of any action under subparagraph (A) or (B) of paragraph (3).

`(5) Notwithstanding any other provision of Federal law and in addition to any other remedy provided under Federal or State law, if the court, on its own motion or on the motion of the United States trustee or the debtor, finds that a person intentionally violated this section, or engaged in a clear and consistent pattern or practice of violating this section, the court may--

`(A) enjoin the violation of such section; or

`(B) impose an appropriate civil penalty against such person.

`(d) No provision of this section, section 527, or section 528 shall--

`(1) annul, alter, affect, or exempt any person subject to such sections from complying with any law of any State except to the extent that such law is inconsistent with those sections, and then only to the extent of the inconsistency; or

`(2) be deemed to limit or curtail the authority or ability--

`(A) of a State or subdivision or instrumentality thereof, to determine and enforce qualifications for the practice of law under the laws of that State; or

`(B) of a Federal court to determine and enforce the qualifications for the practice of law before that court.'.

(b) CONFORMING AMENDMENT- The table of sections for chapter 5 of title 11, United States Code, is amended by inserting after the item relating to section 525, the following:

`526. Restrictions on debt relief agencies.'.

SEC. 228. DISCLOSURES.

(a) DISCLOSURES- Subchapter II of chapter 5 of title 11, United States Code, as amended by section 227, is amended by adding at the end the following:

`Sec. 527. Disclosures

`(a) A debt relief agency providing bankruptcy assistance to an assisted person shall provide--

`(1) the written notice required under section 342(b)(1); and

`(2) to the extent not covered in the written notice described in paragraph (1), and not later than 3 business days after the first date on which a debt relief agency first offers to provide any bankruptcy assistance services to an assisted person, a clear and conspicuous written notice advising assisted persons that--

`(A) all information that the assisted person is required to provide with a petition and thereafter during a case under this title is required to be complete, accurate, and truthful;

`(B) all assets and all liabilities are required to be completely and accurately disclosed in the documents filed to commence the case, and the replacement value of each asset as defined in section 506 must be stated in those documents where requested after reasonable inquiry to establish such value;

`(C) current monthly income, the amounts specified in section 707(b)(2), and, in a case under chapter 13 of this title, disposable income (determined in accordance with section 707(b)(2)), are required to be stated after reasonable inquiry; and

`(D) information that an assisted person provides during their case may be audited pursuant to this title, and that failure to provide such information may result in dismissal of the case under this title or other sanction, including a criminal sanction.

`(b) A debt relief agency providing bankruptcy assistance to an assisted person shall provide each assisted person at the same time as the notices required under subsection (a)(1) the following statement, to the extent applicable, or one substantially similar. The statement shall be clear and conspicuous and shall be in a single document separate from other documents or notices provided to the assisted person:

`IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.

`If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire anyone.

`The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, many cases are routine.

`Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called a Petition, Schedules and Statement of Financial Affairs, as well as in some cases a Statement of Intention need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will have to attend the required first meeting of creditors where you may be questioned by a court official called a `trustee' and by creditors.

`If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts.

`If you choose to file a chapter 13 case in which you repay your creditors what you can afford over 3 to 5 years, you may also want help with preparing your chapter 13 plan and with the confirmation hearing on your plan which will be before a bankruptcy judge.

`If you select another type of relief under the Bankruptcy Code other than chapter 7 or chapter 13, you will want to find out what should be done from someone familiar with that type of relief.

`Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy petition preparers, can give you legal advice.'.

`(c) Except to the extent the debt relief agency provides the required information itself after reasonably diligent inquiry of the assisted person or others so as to obtain such information reasonably accurately for inclusion on the petition, schedules or statement of financial affairs, a debt relief agency providing bankruptcy assistance to an assisted person, to the extent permitted by nonbankruptcy law, shall provide each assisted person at the time required for the notice required under subsection (a)(1) reasonably sufficient information (which shall be provided in a clear and conspicuous writing) to the assisted person on how to provide all the information the assisted person is required to provide under this title pursuant to section 521, including--

`(1) how to value assets at replacement value, determine current monthly income, the amounts specified in section 707(b)(2) and, in a chapter 13 case, how to determine disposable income in accordance with section 707(b)(2) and related calculations;

`(2) how to complete the list of creditors, including how to determine what amount is owed and what address for the creditor should be shown; and

`(3) how to determine what property is exempt and how to value exempt property at replacement value as defined in section 506.

`(d) A debt relief agency shall maintain a copy of the notices required under subsection (a) of this section for 2 years after the date on which the notice is given the assisted person.'.

(b) CONFORMING AMENDMENT- The table of sections for chapter 5 of title 11, United States Code, as amended by section 227, is amended by inserting after the item relating to section 526 the following:

`527. Disclosures.'.

SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES.

(a) ENFORCEMENT- Subchapter II of chapter 5 of title 11, United States Code, as amended by sections 227 and 228, is amended by adding at the end the following:

`Sec. 528. Requirements for debt relief agencies

`(a) A debt relief agency shall--

`(1) not later than 5 business days after the first date on which such agency provides any bankruptcy assistance services to an assisted person, but prior to such assisted person's petition under this title being filed, execute a written contract with such assisted person that explains clearly and conspicuously--

`(A) the services such agency will provide to such assisted person; and

`(B) the fees or charges for such services, and the terms of payment;

`(2) provide the assisted person with a copy of the fully executed and completed contract;

`(3) clearly and conspicuously disclose in any advertisement of bankruptcy assistance services or of the benefits of bankruptcy directed to the general public (whether in general media, seminars or specific mailings, telephonic or electronic messages, or otherwise) that the services or benefits are with respect to bankruptcy relief under this title; and

`(4) clearly and conspicuously use the following statement in such advertisement: `We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.' or a substantially similar statement.

`(b)(1) An advertisement of bankruptcy assistance services or of the benefits of bankruptcy directed to the general public includes--

`(A) descriptions of bankruptcy assistance in connection with a chapter 13 plan whether or not chapter 13 is specifically mentioned in such advertisement; and

`(B) statements such as `federally supervised repayment plan' or `Federal debt restructuring help' or other similar statements that could lead a reasonable consumer to believe that debt counseling was being offered when in fact the services were directed to providing bankruptcy assistance with a chapter 13 plan or other form of bankruptcy relief under this title.

`(2) An advertisement, directed to the general public, indicating that the debt relief agency provides assistance with respect to credit defaults, mortgage foreclosures, eviction proceedings, excessive debt, debt collection pressure, or inability to pay any consumer debt shall--

`(A) disclose clearly and conspicuously in such advertisement that the assistance may involve bankruptcy relief under this title; and

`(B) include the following statement: `We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.' or a substantially similar statement.'.

(b) CONFORMING AMENDMENT- The table of sections for chapter 5 of title 11, United States Code, as amended by section 227 and 228, is amended by inserting after the item relating to section 527, the following:

`528. Requirements for debt relief agencies.'.

SEC. 230. GAO STUDY.

(a) STUDY- Not later than 270 days after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study of the feasibility, effectiveness, and cost of requiring trustees appointed under title 11, United States Code, or the bankruptcy courts, to provide to the Office of Child Support Enforcement promptly after the commencement of cases by debtors who are individuals under such title, the names and social security account numbers of such debtors for the purposes of allowing such Office to determine whether such debtors have outstanding obligations for child support (as determined on the basis of information in the Federal Case Registry or other national database).

(b) REPORT- Not later than 300 days after the date of enactment of this Act, the Comptroller General shall submit to the President pro tempore of the Senate and the Speaker of the House of Representatives a report containing the results of the study required by subsection (a).

SEC. 231. PROTECTION OF PERSONALLY IDENTIFIABLE INFORMATION.

(a) LIMITATION- Section 363(b)(1) of title 11, United States Code, is amended by striking the period at the end and inserting the following:

`, except that if the debtor in connection with offering a product or a service discloses to an individual a policy prohibiting the transfer of personally identifiable information about individuals to persons that are not affiliated with the debtor and if such policy is in effect on the date of the commencement of the case, then the trustee may not sell or lease personally identifiable information to any person unless--

`(A) such sale or such lease is consistent with such policy; or

`(B) after appointment of a consumer privacy ombudsman in accordance with section 332, and after notice and a hearing, the court approves such sale or such lease--

`(i) giving due consideration to the facts, circumstances, and conditions of such sale or such lease; and

`(ii) finding that no showing was made that such sale or such lease would violate applicable nonbankruptcy law.'.

(b) DEFINITION- Section 101 of title 11, United States Code, is amended by inserting after paragraph (41) the following:

`(41A) `personally identifiable information' means--

`(A) if provided by an individual to the debtor in connection with obtaining a product or a service from the debtor primarily for personal, family, or household purposes--

`(i) the first name (or initial) and last name of such individual, whether given at birth or time of adoption, or resulting from a lawful change of name;

`(ii) the geographical address of a physical place of residence of such individual;

`(iii) an electronic address (including an e-mail address) of such individual;

`(iv) a telephone number dedicated to contacting such individual at such physical place of residence;

`(v) a social security account number issued to such individual; or

`(vi) the account number of a credit card issued to such individual; or

`(B) if identified in connection with 1 or more of the items of information specified in subparagraph (A)--

`(i) a birth date, the number of a certificate of birth or adoption, or a place of birth; or

`(ii) any other information concerning an identified individual that, if disclosed, will result in contacting or identifying such individual physically or electronically;'.

SEC. 232. CONSUMER PRIVACY OMBUDSMAN.

(a) CONSUMER PRIVACY OMBUDSMAN- Title 11 of the United States Code is amended by inserting after section 331 the following:

`Sec. 332. Consumer privacy ombudsman

`(a) If a hearing is required under section 363(b)(1)(B), the court shall order the United States trustee to appoint, not later than 5 days before the commencement of the hearing, 1 disinterested person (other than the United States trustee) to serve as the consumer privacy ombudsman in the case and shall require that notice of such hearing be timely given to such ombudsman.

`(b) The consumer privacy ombudsman may appear and be heard at such hearing and shall provide to the court information to assist the court in its consideration of the facts, circumstances, and conditions of the proposed sale or lease of personally identifiable information under section 363(b)(1)(B). Such information may include presentation of--

`(1) the debtor's privacy policy;

`(2) the potential losses or gains of privacy to consumers if such sale or such lease is approved by the court;

`(3) the potential costs or benefits to consumers if such sale or such lease is approved by the court; and

`(4) the potential alternatives that would mitigate potential privacy losses or potential costs to consumers.

`(c) A consumer privacy ombudsman shall not disclose any personally identifiable information obtained by the ombudsman under this title.'.

(b) COMPENSATION OF CONSUMER PRIVACY OMBUDSMAN- Section 330(a)(1) of title 11, United States Code, is amended in the matter preceding subparagraph (A), by inserting `a consumer privacy ombudsman appointed under section 332,' before `an examiner'.

(c) CONFORMING AMENDMENT- The table of sections for subchapter II of chapter 3 of title 11, United States Code, is amended by adding at the end the following:

`332. Consumer privacy ombudsman.'.

SEC. 233. PROHIBITION ON DISCLOSURE OF NAME OF MINOR CHILDREN.

(a) PROHIBITION- Title 11 of the United States Code, as amended by section 106, is amended by inserting after section 111 the following:

`Sec. 112. Prohibition on disclosure of name of minor children

`The debtor may be required to provide information regarding a minor child involved in matters under this title but may not be required to disclose in the public records in the case the name of such minor child. The debtor may be required to disclose the name of such minor child in a nonpublic record that is maintained by the court and made available by the court for examination by the United States trustee, the trustee, and the auditor (if any) serving under section 586(f) of title 28, in the case. The court, the United States trustee, the trustee, and such auditor shall not disclose the name of such minor child maintained in such nonpublic record.'.

(b) CLERICAL AMENDMENT- The table of sections for chapter 1 of title 11, United States Code, as amended by section 106, is amended by inserting after the item relating to section 111 the following:

`112. Prohibition on disclosure of name of minor children.'.

(c) CONFORMING AMENDMENT- Section 107(a) of title 11, United States Code, is amended by inserting `and subject to section 112' after `section'.

SEC. 234. PROTECTION OF PERSONAL INFORMATION.

(a) Restriction of Public Access to Certain Information Contained in Bankruptcy Case Files- Section 107 of title 11, United States Code, is amended by adding at the end the following:

`(c)(1) The bankruptcy court, for cause, may protect an individual, with respect to the following types of information to the extent the court finds that disclosure of such information would create undue risk of identity theft or other unlawful injury to the individual or the individual's property:

`(A) Any means of identification (as defined in section 1028(d) of title 18) contained in a paper filed, or to be filed, in a case under this title.

`(B) Other information contained in a paper described in subparagraph (A).

`(2) Upon ex parte application demonstrating cause, the court shall provide access to information protected pursuant to paragraph (1) to an entity acting pursuant to the police or regulatory power of a domestic governmental unit.

`(3) The United States trustee, bankruptcy administrator, trustee, and any auditor serving under section 586(f) of title 28--

`(A) shall have full access to all information contained in any paper filed or submitted in a case under this title; and

`(B) shall not disclose information specifically protected by the court under this title.'.

(b) Security of Social Security Account Number of Debtor in Notice to Creditor- Section 342(c) of title 11, United States Code, is amended--

(1) by inserting `last 4 digits of the' before `taxpayer identification number'; and

(2) by adding at the end the following: `If the notice concerns an amendment that adds a creditor to the schedules of assets and liabilities, the debtor shall include the full taxpayer identification number in the notice sent to that creditor, but the debtor shall include only the last 4 digits of the taxpayer identification number in the copy of the notice filed with the court.'.

(c) Conforming Amendment- Section 107(a) of title 11, United States Code, is amended by striking `subsection (b),' and inserting `subsections (b) and (c),'.

TITLE III--DISCOURAGING BANKRUPTCY ABUSE

SEC. 301. TECHNICAL AMENDMENTS.

Section 523(a)(17) of title 11, United States Code, is amended--

(1) by striking `by a court' and inserting `on a prisoner by any court';

(2) by striking `section 1915(b) or (f)' and inserting `subsection (b) or (f)(2) of section 1915'; and

(3) by inserting `(or a similar non-Federal law)' after `title 28' each place it appears.

SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS.

Section 362(c) of title 11, United States Code, is amended--

(1) in paragraph (1), by striking `and' at the end;

(2) in paragraph (2), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following:

`(3) if a single or joint case is filed by or against debtor who is an individual in a case under chapter 7, 11, or 13, and if a single or joint case of the debtor was pending within the preceding 1-year period but was dismissed, other than a case refiled under a chapter other than chapter 7 after dismissal under section 707(b)--

`(A) the stay under subsection (a) with respect to any action taken with respect to a debt or property securing such debt or with respect to any lease shall terminate with respect to the debtor on the 30th day after the filing of the later case;

`(B) on the motion of a party in interest for continuation of the automatic stay and upon notice and a hearing, the court may extend the stay in particular cases as to any or all creditors (subject to such conditions or limitations as the court may then impose) after notice and a hearing completed before the expiration of the 30-day period only if the party in interest demonstrates that the filing of the later case is in good faith as to the creditors to be stayed; and

`(C) for purposes of subparagraph (B), a case is presumptively filed not in good faith (but such presumption may be rebutted by clear and convincing evidence to the contrary)--

`(i) as to all creditors, if--

`(I) more than 1 previous case under any of chapters 7, 11, and 13 in which the individual was a debtor was pending within the preceding 1-year period;

`(II) a previous case under any of chapters 7, 11, and 13 in which the individual was a debtor was dismissed within such 1-year period, after the debtor failed to--

`(aa) file or amend the petition or other documents as required by this title or the court without substantial excuse (but mere inadvertence or negligence shall not be a substantial excuse unless the dismissal was caused by the negligence of the debtor's attorney); `(bb) provide adequate protection as ordered by the court; or `(cc) perform the terms of a plan confirmed by the court; or

`(III) there has not been a substantial change in the financial or personal affairs of the debtor since the dismissal of the next most previous case under chapter 7, 11, or 13 or any other reason to conclude that the later case will be concluded--

`(aa) if a case under chapter 7, with a discharge; or `(bb) if a case under chapter 11 or 13, with a confirmed plan that will be fully performed; and

`(ii) as to any creditor that commenced an action under subsection (d) in a previous case in which the individual was a debtor if, as of the date of dismissal of such case, that action was still pending or had been resolved by terminating, conditioning, or limiting the stay as to actions of such creditor; and

`(4)(A)(i) if a single or joint case is filed by or against a debtor who is an individual under this title, and if 2 or more single or joint cases of the debtor were pending within the previous year but were dismissed, other than a case refiled under section 707(b), the stay under subsection (a) shall not go into effect upon the filing of the later case; and

`(ii) on request of a party in interest, the court shall promptly enter an order confirming that no stay is in effect;

`(B) if, within 30 days after the filing of the later case, a party in interest requests the court may order the stay to take effect in the case as to any or all creditors (subject to such conditions or limitations as the court may impose), after notice and a hearing, only if the party in interest demonstrates that the filing of the later case is in good faith as to the creditors to be stayed;

`(C) a stay imposed under subparagraph (B) shall be effective on the date of the entry of the order allowing the stay to go into effect; and

`(D) for purposes of subparagraph (B), a case is presumptively filed not in good faith (but such presumption may be rebutted by clear and convincing evidence to the contrary)--

`(i) as to all creditors if--

`(I) 2 or more previous cases under this title in which the individual was a debtor were pending within the 1-year period;

`(II) a previous case under this title in which the individual was a debtor was dismissed within the time period stated in this paragraph after the debtor failed to file or amend the petition or other documents as required by this title or the court without substantial excuse (but mere inadvertence or negligence shall not be substantial excuse unless the dismissal was caused by the negligence of the debtor's attorney), failed to provide adequate protection as ordered by the court, or failed to perform the terms of a plan confirmed by the court; or

`(III) there has not been a substantial change in the financial or personal affairs of the debtor since the dismissal of the next most previous case under this title, or any other reason to conclude that the later case will not be concluded, if a case under chapter 7, with a discharge, and if a case under chapter 11 or 13, with a confirmed plan that will be fully performed; or

`(ii) as to any creditor that commenced an action under subsection (d) in a previous case in which the individual was a debtor if, as of the date of dismissal of such case, such action was still pending or had been resolved by terminating, conditioning, or limiting the stay as to such action of such creditor.'.

SEC. 303. CURBING ABUSIVE FILINGS.

(a) IN GENERAL- Section 362(d) of title 11, United States Code, is amended--

(1) in paragraph (2), by striking `or' at the end;

(2) in paragraph (3), by striking the period at the end and inserting `; or'; and

(3) by adding at the end the following:

`(4) with respect to a stay of an act against real property under subsection (a), by a creditor whose claim is secured by an interest in such real property, if the court finds that the filing of the petition was part of a scheme to delay, hinder, and defraud creditors that involved either--

`(A) transfer of all or part ownership of, or other interest in, such real property without the consent of the secured creditor or court approval; or

`(B) multiple bankruptcy filings affecting such real property.

If recorded in compliance with applicable State laws governing notices of interests or liens in real property, an order entered under paragraph (4) shall be binding in any other case under this title purporting to affect such real property filed not later than 2 years after the date of the entry of such order by the court, except that a debtor in a subsequent case under this title may move for relief from such order based upon changed circumstances or for good cause shown, after notice and a hearing. Any Federal, State, or local governmental unit that accepts notices of interests or liens in real property shall accept any certified copy of an order described in this subsection for indexing and recording.'.

(b) AUTOMATIC STAY- Section 362(b) of title 11, United States Code, as amended by section 224, is amended by inserting after paragraph (19), the following:

`(20) under subsection (a), of any act to enforce any lien against or security interest in real property following entry of the order under subsection (d)(4) as to such real property in any prior case under this title, for a period of 2 years after the date of the entry of such an order, except that the debtor, in a subsequent case under this title, may move for relief from such order based upon changed circumstances or for other good cause shown, after notice and a hearing;

`(21) under subsection (a), of any act to enforce any lien against or security interest in real property--

`(A) if the debtor is ineligible under section 109(g) to be a debtor in a case under this title; or

`(B) if the case under this title was filed in violation of a bankruptcy court order in a prior case under this title prohibiting the debtor from being a debtor in another case under this title;'.

SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

Title 11, United States Code, is amended--

(1) in section 521(a), as so designated by section 106--

(A) in paragraph (4), by striking `, and' at the end and inserting a semicolon;

(B) in paragraph (5), by striking the period at the end and inserting `; and'; and

`(6) in a case under chapter 7 of this title in which the debtor is an individual, not retain possession of personal property as to which a creditor has an allowed claim for the purchase price secured in whole or in part by an interest in such personal property unless the debtor, not later than 45 days after the first meeting of creditors under section 341(a), either--

`(A) enters into an agreement with the creditor pursuant to section 524(c) with respect to the claim secured by such property; or

`(B) redeems such property from the security interest pursuant to section 722.

If the debtor fails to so act within the 45-day period referred to in paragraph (6), the stay under section 362(a) is terminated with respect to the personal property of the estate or of the debtor which is affected, such property shall no longer be property of the estate, and the creditor may take whatever action as to such property as is permitted by applicable nonbankruptcy law, unless the court determines on the motion of the trustee filed before the expiration of such 45-day period, and after notice and a hearing, that such property is of consequential value or benefit to the estate, orders appropriate adequate protection of the creditor's interest, and orders the debtor to deliver any collateral in the debtor's possession to the trustee.'; and

(2) in section 722, by inserting `in full at the time of redemption' before the period at the end.

SEC. 305. RELIEF FROM THE AUTOMATIC STAY WHEN THE DEBTOR DOES NOT COMPLETE INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.

Title 11, United States Code, is amended--

(1) in section 362, as amended by section 106--

(A) in subsection (c), by striking `(e), and (f)' and inserting `(e), (f), and (h)';

(B) by redesignating subsection (h) as subsection (k) and transferring such subsection so as to insert it after subsection (j) as added by section 106; and

`(h)(1) In a case in which the debtor is an individual, the stay provided by subsection (a) is terminated with respect to personal property of the estate or of the debtor securing in whole or in part a claim, or subject to an unexpired lease, and such personal property shall no longer be property of the estate if the debtor fails within the applicable time set by section 521(a)(2)--

`(A) to file timely any statement of intention required under section 521(a)(2) with respect to such personal property or to indicate in such statement that the debtor will either surrender such personal property or retain it and, if retaining such personal property, either redeem such personal property pursuant to section 722, enter into an agreement of the kind specified in section 524(c) applicable to the debt secured by such personal property, or assume such unexpired lease pursuant to section 365(p) if the trustee does not do so, as applicable; and

`(B) to take timely the action specified in such statement, as it may be amended before expiration of the period for taking action, unless such statement specifies the debtor's intention to reaffirm such debt on the original contract terms and the creditor refuses to agree to the reaffirmation on such terms.

`(2) Paragraph (1) does not apply if the court determines, on the motion of the trustee filed before the expiration of the applicable time set by section 521(a)(2), after notice and a hearing, that such personal property is of consequential value or benefit to the estate, and orders appropriate adequate protection of the creditor's interest, and orders the debtor to deliver any collateral in the debtor's possession to the trustee. If the court does not so determine, the stay provided by subsection (a) shall terminate upon the conclusion of the hearing on the motion.'; and

(2) in section 521, as amended by sections 106 and 225--

(A) in subsection (a)(2) by striking `consumer';

(B) in subsection (a)(2)(B)--

(i) by striking `forty-five days after the filing of a notice of intent under this section' and inserting `30 days after the first date set for the meeting of creditors under section 341(a)'; and

(ii) by striking `forty-five day' and inserting `30-day';

(D) by adding at the end the following:

`(d) If the debtor fails timely to take the action specified in subsection (a)(6) of this section, or in paragraphs (1) and (2) of section 362(h), with respect to property which a lessor or bailor owns and has leased, rented, or bailed to the debtor or as to which a creditor holds a security interest not otherwise voidable under section 522(f), 544, 545, 547, 548, or 549, nothing in this title shall prevent or limit the operation of a provision in the underlying lease or agreement that has the effect of placing the debtor in default under such lease or agreement by reason of the occurrence, pendency, or existence of a proceeding under this title or the insolvency of the debtor. Nothing in this subsection shall be deemed to justify limiting such a provision in any other circumstance.'.

SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

(a) IN GENERAL- Section 1325(a)(5)(B)(i) of title 11, United States Code, is amended to read as follows:

`(i) the plan provides that--

`(I) the holder of such claim retain the lien securing such claim until the earlier of--

`(aa) the payment of the underlying debt determined under nonbankruptcy law; or

`(bb) discharge under section 1328; and

`(II) if the case under this chapter is dismissed or converted without completion of the plan, such lien shall also be retained by such holder to the extent recognized by applicable nonbankruptcy law; and'.

(b) RESTORING THE FOUNDATION FOR SECURED CREDIT- Section 1325(a) of title 11, United States Code, is amended by adding at the end the following:

`For purposes of paragraph (5), section 506 shall not apply to a claim described in that paragraph if the creditor has a purchase money security interest securing the debt that is the subject of the claim, the debt was incurred within the 910-day preceding the date of the filing of the petition, and the collateral for that debt consists of a motor vehicle (as defined in section 30102 of title 49) acquired for the personal use of the debtor, or if collateral for that debt consists of any other thing of value, if the debt was incurred during the 1-year period preceding that filing.'.

(1) by inserting after paragraph (13) the following:

`(13A) `debtor's principal residence'--

`(A) means a residential structure, including incidental property, without regard to whether that structure is attached to real property; and

`(B) includes an individual condominium or cooperative unit, a mobile or manufactured home, or trailer;'; and

(2) by inserting after paragraph (27), the following:

`(27A) `incidental property' means, with respect to a debtor's principal residence--

`(A) property commonly conveyed with a principal residence in the area where the real property is located;

`(B) all easements, rights, appurtenances, fixtures, rents, royalties, mineral rights, oil or gas rights or profits, water rights, escrow funds, or insurance proceeds; and

`(C) all replacements or additions;'.

SEC. 307. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.

Section 522(b)(3) of title 11, United States Code, as so designated by section 106, is amended--

(1) in subparagraph (A)--

(A) by striking `180 days' and inserting `730 days'; and

(B) by striking `, or for a longer portion of such 180-day period than in any other place' and inserting `or if the debtor's domicile has not been located at a single State for such 730-day period, the place in which the debtor's domicile was located for 180 days immediately preceding the 730-day period or for a longer portion of such 180-day period than in any other place'; and

(2) by adding at the end the following:

`If the effect of the domiciliary requirement under subparagraph (A) is to render the debtor ineligible for any exemption, the debtor may elect to exempt property that is specified under subsection (d).'.

SEC. 308. REDUCTION OF HOMESTEAD EXEMPTION FOR FRAUD.

Section 522 of title 11, United States Code, as amended by section 224, is amended--

(1) in subsection (b)(3)(A), as so designated by this Act, by inserting `subject to subsections (o) and (p),' before `any property'; and

(2) by adding at the end the following:

`(o) For purposes of subsection (b)(3)(A), and notwithstanding subsection (a), the value of an interest in--

`(1) real or personal property that the debtor or a dependent of the debtor uses as a residence;

`(2) a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence;

`(3) a burial plot for the debtor or a dependent of the debtor; or

`(4) real or personal property that the debtor or a dependent of the debtor claims as a homestead;

shall be reduced to the extent that such value is attributable to any portion of any property that the debtor disposed of in the 10-year period ending on the date of the filing of the petition with the intent to hinder, delay, or defraud a creditor and that the debtor could not exempt, or that portion that the debtor could not exempt, under subsection (b), if on such date the debtor had held the property so disposed of.'.

SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER 13 CASES.

(a) STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13- Section 348(f)(1) of title 11, United States Code, is amended--

(1) in subparagraph (A), by striking `and' at the end;

(2) in subparagraph (B)--

(A) by striking `in the converted case, with allowed secured claims' and inserting `only in a case converted to a case under chapter 11 or 12, but not in a case converted to a case under chapter 7, with allowed secured claims in cases under chapters 11 and 12'; and

(B) by striking the period and inserting `; and'; and

(3) by adding at the end the following:

`(C) with respect to cases converted from chapter 13--

`(i) the claim of any creditor holding security as of the date of the petition shall continue to be secured by that security unless the full amount of such claim determined under applicable nonbankruptcy law has been paid in full as of the date of conversion, notwithstanding any valuation or determination of the amount of an allowed secured claim made for the purposes of the case under chapter 13; and

`(ii) unless a prebankruptcy default has been fully cured under the plan at the time of conversion, in any proceeding under this title or otherwise, the default shall have the effect given under applicable nonbankruptcy law.'.

(b) GIVING DEBTORS THE ABILITY TO KEEP LEASED PERSONAL PROPERTY BY ASSUMPTION- Section 365 of title 11, United States Code, is amended by adding at the end the following:

`(p)(1) If a lease of personal property is rejected or not timely assumed by the trustee under subsection (d), the leased property is no longer property of the estate and the stay under section 362(a) is automatically terminated.

`(2)(A) If the debtor in a case under chapter 7 is an individual, the debtor may notify the creditor in writing that the debtor desires to assume the lease. Upon being so notified, the creditor may, at its option, notify the debtor that it is willing to have the lease assumed by the debtor and may condition such assumption on cure of any outstanding default on terms set by the contract.

`(B) If, not later than 30 days after notice is provided under subparagraph (A), the debtor notifies the lessor in writing that the lease is assumed, the liability under the lease will be assumed by the debtor and not by the estate.

`(C) The stay under section 362 and the injunction under section 524(a)(2) shall not be violated by notification of the debtor and negotiation of cure under this subsection.

`(3) In a case under chapter 11 in which the debtor is an individual and in a case under chapter 13, if the debtor is the lessee with respect to personal property and the lease is not assumed in the plan confirmed by the court, the lease is deemed rejected as of the conclusion of the hearing on confirmation. If the lease is rejected, the stay under section 362 and any stay under section 1301 is automatically terminated with respect to the property subject to the lease.'.

(1) CONFIRMATION OF PLAN- Section 1325(a)(5)(B) of title 11, United States Code, as amended by section 306, is amended--

(A) in clause (i), by striking `and' at the end;

(B) in clause (ii), by striking `or' at the end and inserting `and'; and

`(iii) if--

`(I) property to be distributed pursuant to this subsection is in the form of periodic payments, such payments shall be in equal monthly amounts; and

`(II) the holder of the claim is secured by personal property, the amount of such payments shall not be less than an amount sufficient to provide to the holder of such claim adequate protection during the period of the plan; or'.

(2) PAYMENTS- Section 1326(a) of title 11, United States Code, is amended to read as follows:

`(a)(1) Unless the court orders otherwise, the debtor shall commence making payments not later than 30 days after the date of the filing of the plan or the order for relief, whichever is earlier, in the amount--

`(A) proposed by the plan to the trustee;

`(B) scheduled in a lease of personal property directly to the lessor for that portion of the obligation that becomes due after the order for relief, reducing the payments under subparagraph (A) by the amount so paid and providing the trustee with evidence of such payment, including the amount and date of payment; and

`(C) that provides adequate protection directly to a creditor holding an allowed claim secured by personal property to the extent the claim is attributable to the purchase of such property by the debtor for that portion of the obligation that becomes due after the order for relief, reducing the payments under subparagraph (A) by the amount so paid and providing the trustee with evidence of such payment, including the amount and date of payment.

`(2) A payment made under paragraph (1)(A) shall be retained by the trustee until confirmation or denial of confirmation. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan as soon as is practicable. If a plan is not confirmed, the trustee shall return any such payments not previously paid and not yet due and owing to creditors pursuant to paragraph (3) to the debtor, after deducting any unpaid claim allowed under section 503(b).

`(3) Subject to section 363, the court may, upon notice and a hearing, modify, increase, or reduce the payments required under this subsection pending confirmation of a plan.

`(4) Not later than 60 days after the date of filing of a case under this chapter, a debtor retaining possession of personal property subject to a lease or securing a claim attributable in whole or in part to the purchase price of such property shall provide the lessor or secured creditor reasonable evidence of the maintenance of any required insurance coverage with respect to the use or ownership of such property and continue to do so for so long as the debtor retains possession of such property.'.

SEC. 310. LIMITATION ON LUXURY GOODS.

Section 523(a)(2)(C) of title 11, United States Code, is amended to read as follows:

`(C)(i) for purposes of subparagraph (A)--

`(I) consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and

`(II) cash advances aggregating more than $750 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable; and

`(ii) for purposes of this subparagraph--

`(I) the terms `consumer', `credit', and `open end credit plan' have the same meanings as in section 103 of the Truth in Lending Act; and

`(II) the term `luxury goods or services' does not include goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor.'.

SEC. 311. AUTOMATIC STAY.

(a) IN GENERAL- Section 362(b) of title 11, United States Code, as amended by sections 224 and 303, is amended by inserting after paragraph (21), the following:

`(22) subject to subsection (l), under subsection (a)(3), of the continuation of any eviction, unlawful detainer action, or similar proceeding by a lessor against a debtor involving residential property in which the debtor resides as a tenant under a lease or rental agreement and with respect to which the lessor has obtained before the date of the filing of the bankruptcy petition, a judgment for possession of such property against the debtor;

`(23) subject to subsection (m), under subsection (a)(3), of an eviction action that seeks possession of the residential property in which the debtor resides as a tenant under a lease or rental agreement based on endangerment of such property or the illegal use of controlled substances on such property, but only if the lessor files with the court, and serves upon the debtor, a certification under penalty of perjury that such an eviction action has been filed, or that the debtor, during the 30-day period preceding the date of the filing of the certification, has endangered property or illegally used or allowed to be used a controlled substance on the property;

`(24) under subsection (a), of any transfer that is not avoidable under section 544 and that is not avoidable under section 549;'.

(b) LIMITATIONS- Section 362 of title 11, United States Code, as amended by sections 106 and 305, is amended by adding at the end the following:

`(l)(1) Except as otherwise provided in this subsection, subsection (b)(22) shall apply on the date that is 30 days after the date on which the bankruptcy petition is filed, if the debtor files with the petition and serves upon the lessor a certification under penalty of perjury that--

`(A) under nonbankruptcy law applicable in the jurisdiction, there are circumstances under which the debtor would be permitted to cure the entire monetary default that gave rise to the judgment for possession, after that judgment for possession was entered; and

`(B) the debtor (or an adult dependent of the debtor) has deposited with the clerk of the court, any rent that would become due during the 30-day period after the filing of the bankruptcy petition.

`(2) If, within the 30-day period after the filing of the bankruptcy petition, the debtor (or an adult dependent of the debtor) complies with paragraph (1) and files with the court and serves upon the lessor a further certification under penalty of perjury that the debtor (or an adult dependent of the debtor) has cured, under nonbankrupcty law applicable in the jurisdiction, the entire monetary default that gave rise to the judgment under which possession is sought by the lessor, subsection (b)(22) shall not apply, unless ordered to apply by the court under paragraph (3).

`(3)(A) If the lessor files an objection to any certification filed by the debtor under paragraph (1) or (2), and serves such objection upon the debtor, the court shall hold a hearing within 10 days after the filing and service of such objection to determine if the certification filed by the debtor under paragraph (1) or (2) is true.

`(B) If the court upholds the objection of the lessor filed under subparagraph (A)--

`(i) subsection (b)(22) shall apply immediately and relief from the stay provided under subsection (a)(3) shall not be required to enable the lessor to complete the process to recover full possession of the property; and

`(ii) the clerk of the court shall immediately serve upon the lessor and the debtor a certified copy of the court's order upholding the lessor's objection.

`(4) If a debtor, in accordance with paragraph (5), indicates on the petition that there was a judgment for possession of the residential rental property in which the debtor resides and does not file a certification under paragraph (1) or (2)--

`(A) subsection (b)(22) shall apply immediately upon failure to file such certification, and relief from the stay provided under subsection (a)(3) shall not be required to enable the lessor to complete the process to recover full possession of the property; and

`(B) the clerk of the court shall immediately serve upon the lessor and the debtor a certified copy of the docket indicating the absence of a filed certification and the applicability of the exception to the stay under subsection (b)(22).

`(5)(A) Where a judgment for possession of residential property in which the debtor resides as a tenant under a lease or rental agreement has been obtained by the lessor, the debtor shall so indicate on the bankruptcy petition and shall provide the name and address of the lessor that obtained that pre-petition judgment on the petition and on any certification filed under this subsection.

`(B) The form of certification filed with the petition, as specified in this subsection, shall provide for the debtor to certify, and the debtor shall certify--

`(i) whether a judgment for possession of residential rental housing in which the debtor resides has been obtained against the debtor before the date of the filing of the petition; and

`(ii) whether the debtor is claiming under paragraph (1) that under nonbankruptcy law applicable in the jurisdiction, there are circumstances under which the debtor would be permitted to cure the entire monetary default that gave rise to the judgment for possession, after that judgment of possession was entered, and has made the appropriate deposit with the court.

`(C) The standard forms (electronic and otherwise) used in a bankruptcy proceeding shall be amended to reflect the requirements of this subsection.

`(D) The clerk of the court shall arrange for the prompt transmittal of the rent deposited in accordance with paragraph (1)(B) to the lessor.

`(m)(1) Except as otherwise provided in this subsection, subsection (b)(23) shall apply on the date that is 15 days after the date on which the lessor files and serves a certification described in subsection (b)(23).

`(2)(A) If the debtor files with the court an objection to the truth or legal sufficiency of the certification described in subsection (b)(23) and serves such objection upon the lessor, subsection (b)(23) shall not apply, unless ordered to apply by the court under this subsection.

`(B) If the debtor files and serves the objection under subparagraph (A), the court shall hold a hearing within 10 days after the filing and service of such objection to determine if the situation giving rise to the lessor's certification under paragraph (1) existed or has been remedied.

`(C) If the debtor can demonstrate to the satisfaction of the court that the situation giving rise to the lessor's certification under paragraph (1) did not exist or has been remedied, the stay provided under subsection (a)(3) shall remain in effect until the termination of the stay under this section.

`(D) If the debtor cannot demonstrate to the satisfaction of the court that the situation giving rise to the lessor's certification under paragraph (1) did not exist or has been remedied--

`(i) relief from the stay provided under subsection (a)(3) shall not be required to enable the lessor to proceed with the eviction; and

`(ii) the clerk of the court shall immediately serve upon the lessor and the debtor a certified copy of the court's order upholding the lessor's certification.

`(3) If the debtor fails to file, within 15 days, an objection under paragraph (2)(A)--

`(A) subsection (b)(23) shall apply immediately upon such failure and relief from the stay provided under subsection (a)(3) shall not be required to enable the lessor to complete the process to recover full possession of the property; and

`(B) the clerk of the court shall immediately serve upon the lessor and the debtor a certified copy of the docket indicating such failure.'.

SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY DISCHARGES.

Title 11, United States Code, is amended--

(1) in section 727(a)(8), by striking `six' and inserting `8'; and

(2) in section 1328, by inserting after subsection (e) the following:

`(f) Notwithstanding subsections (a) and (b), the court shall not grant a discharge of all debts provided for in the plan or disallowed under section 502, if the debtor has received a discharge--

`(1) in a case filed under chapter 7, 11, or 12 of this title during the 4-year period preceding the date of the order for relief under this chapter, or

`(2) in a case filed under chapter 13 of this title during the 2-year period preceding the date of such order.'.

SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

(a) DEFINITION- Section 522(f) of title 11, United States Code, is amended by adding at the end the following:

`(4)(A) Subject to subparagraph (B), for purposes of paragraph (1)(B), the term `household goods' means--

`(i) clothing;

`(ii) furniture;

`(iii) appliances;

`(iv) 1 radio;

`(v) 1 television;

`(vi) 1 VCR;

`(vii) linens;

`(viii) china;

`(ix) crockery;

`(x) kitchenware;

`(xi) educational materials and educational equipment primarily for the use of minor dependent children of the debtor;

(xii) medical equipment and supplies;

`(xiii) furniture exclusively for the use of minor children, or elderly or disabled dependents of the debtor;

`(xiv) personal effects (including the toys and hobby equipment of minor dependent children and wedding rings) of the debtor and the dependents of the debtor; and

`(xv) 1 personal computer and related equipment.

`(B) The term `household goods' does not include--

`(i) works of art (unless by or of the debtor, or any relative of the debtor);

`(ii) electronic entertainment equipment with a fair market value of more than $500 in the aggregate (except 1 television, 1 radio, and 1 VCR);

`(iii) items acquired as antiques with a fair market value of more than $500 in the aggregate;

`(iv) jewelry with a fair market value of more than $500 in the aggregate (except wedding rings); and

`(v) a computer (except as otherwise provided for in this section), motor vehicle (including a tractor or lawn tractor), boat, or a motorized recreational device, conveyance, vehicle, watercraft, or aircraft.'.

(b) STUDY- Not later than 2 years after the date of enactment of this Act, the Director of the Executive Office for United States Trustees shall submit a report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives containing its findings regarding utilization of the definition of household goods, as defined in section 522(f)(4) of title 11, United States Code, as added by subsection (a), with respect to the avoidance of nonpossessory, nonpurchase money security interests in household goods under section 522(f)(1)(B) of title 11, United States Code, and the impact such section 522(f)(4) has had on debtors and on the bankruptcy courts. Such report may include recommendations for amendments to such section 522(f)(4) consistent with the Director's findings.

SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE DEBTS.

(a) IN GENERAL- Section 523(a) of title 11, United States Code, is amended by inserting after paragraph (14) the following:

`(14A) incurred to pay a tax to a governmental unit, other than the United States, that would be nondischargeable under paragraph (1);'.

(b) DISCHARGE UNDER CHAPTER 13- Section 1328(a) of title 11, United States Code, is amended by striking paragraphs (1) through (3) and inserting the following:

`(1) provided for under section 1322(b)(5);

`(2) of the kind specified in paragraph (2), (3), (4), (5), (8), or (9) of section 523(a);

`(3) for restitution, or a criminal fine, included in a sentence on the debtor's conviction of a crime; or

`(4) for restitution, or damages, awarded in a civil action against the debtor as a result of willful or malicious injury by the debtor that caused personal injury to an individual or the death of an individual.'.

SEC. 315. GIVING CREDITORS FAIR NOTICE IN CHAPTERS 7 AND 13 CASES.

(a) NOTICE- Section 342 of title 11, United States Code, as amended by section 102, is amended--

(1) in subsection (c)--

(A) by inserting `(1)' after `(c)';

(B) by striking `, but the failure of such notice to contain such information shall not invalidate the legal effect of such notice'; and

`(2)(A) If, within the 90 days before the commencement of a voluntary case, a creditor supplies the debtor in at least 2 communications sent to the debtor with the current account number of the debtor and the address at which such creditor requests to receive correspondence, then any notice required by this title to be sent by the debtor to such creditor shall be sent to such address and shall include such account number.

`(B) If a creditor would be in violation of applicable nonbankruptcy law by sending any such communication within such 90-day period and if such creditor supplies the debtor in the last 2 communications with the current account number of the debtor and the address at which such creditor requests to receive correspondence, then any notice required by this title to be sent by the debtor to such creditor shall be sent to such address and shall include such account number.'; and

(2) by adding at the end the following:

`(e)(1) In a case under chapter 7 or 13 of this title of a debtor who is an individual, a creditor at any time may both file with the court and serve on the debtor a notice of address to be used to provide notice in such case to such creditor.

`(2) Any notice in such case required to be provided to such creditor by the debtor or the court later than 5 days after the court and the debtor receive such creditor's notice of address, shall be provided to such address.

`(f)(1) An entity may file with any bankruptcy court a notice of address to be used by all the bankruptcy courts or by particular bankruptcy courts, as so specified by such entity at the time such notice is filed, to provide notice to such entity in all cases under chapters 7 and 13 pending in the courts with respect to which such notice is filed, in which such entity is a creditor.

`(2) In any case filed under chapter 7 or 13, any notice required to be provided by a court with respect to which a notice is filed under paragraph (1), to such entity later than 30 days after the filing of such notice under paragraph (1) shall be provided to such address unless with respect to a particular case a different address is specified in a notice filed and served in accordance with subsection (e).

`(3) A notice filed under paragraph (1) may be withdrawn by such entity.

`(g)(1) Notice provided to a creditor by the debtor or the court other than in accordance with this section (excluding this subsection) shall not be effective notice until such notice is brought to the attention of such creditor. If such creditor designates a person or an organizational subdivision of such creditor to be responsible for receiving notices under this title and establishes reasonable procedures so that such notices receivable by such creditor are to be delivered to such person or such subdivision, then a notice provided to such creditor other than in accordance with this section (excluding this subsection) shall not be considered to have been brought to the attention of such creditor until such notice is received by such person or such subdivision.

`(2) A monetary penalty may not be imposed on a creditor for a violation of a stay in effect under section 362(a) (including a monetary penalty imposed under section 362(k)) or for failure to comply with section 542 or 543 unless the conduct that is the basis of such violation or of such failure occurs after such creditor receives notice effective under this section of the order for relief.'.

(b) DEBTOR'S DUTIES- Section 521 of title 11, United States Code, as amended by sections 106, 225, and 305, is amended--

(1) in subsection (a), as so designated by section 106, by amending paragraph (1) to read as follows:

`(1) file--

`(A) a list of creditors; and

`(B) unless the court orders otherwise--

`(i) a schedule of assets and liabilities;

`(ii) a schedule of current income and current expenditures;

`(iii) a statement of the debtor's financial affairs and, if section 342(b) applies, a certificate--

`(I) of an attorney whose name is indicated on the petition as the attorney for the debtor, or a bankruptcy petition preparer signing the petition under section 110(b)(1), indicating that such attorney or the bankruptcy petition preparer delivered to the debtor the notice required by section 342(b); or

`(II) if no attorney is so indicated, and no bankruptcy petition preparer signed the petition, of the debtor that such notice was received and read by the debtor;

`(iv) copies of all payment advices or other evidence of payment received within 60 days before the date of the filing of the petition, by the debtor from any employer of the debtor;

`(v) a statement of the amount of monthly net income, itemized to show how the amount is calculated; and

`(vi) a statement disclosing any reasonably anticipated increase in income or expenditures over the 12-month period following the date of the filing of the petition;'; and

(2) by adding at the end the following:

`(e)(1) If the debtor in a case under chapter 7 or 13 is an individual and if a creditor files with the court at any time a request to receive a copy of the petition, schedules, and statement of financial affairs filed by the debtor, then the court shall make such petition, such schedules, and such statement available to such creditor.

`(2)(A) The debtor shall provide--

`(i) not later than 7 days before the date first set for the first meeting of creditors, to the trustee a copy of the Federal income tax return required under applicable law (or at the election of the debtor, a transcript of such return) for the most recent tax year ending immediately before the commencement of the case and for which a Federal income tax return was filed; and

`(ii) at the same time the debtor complies with clause (i), a copy of such return (or if elected under clause (i), such transcript) to any creditor that timely requests such copy.

`(B) If the debtor fails to comply with clause (i) or (ii) of subparagraph (A), the court shall dismiss the case unless the debtor demonstrates that the failure to so comply is due to circumstances beyond the control of the debtor.

`(C) If a creditor requests a copy of such tax return or such transcript and if the debtor fails to provide a copy of such tax return or such transcript to such creditor at the time the debtor provides such tax return or such transcript to the trustee, then the court shall dismiss the case unless the debtor demonstrates that the failure to provide a copy of such tax return or such transcript is due to circumstances beyond the control of the debtor.

`(3) If a creditor in a case under chapter 13 files with the court at any time a request to receive a copy of the plan filed by the debtor, then the court shall make available to such creditor a copy of the plan--

`(A) at a reasonable cost; and

`(B) not later than 5 days after such request is filed.

`(f) At the request of the court, the United States trustee, or any party in interest in a case under chapter 7, 11, or 13, a debtor who is an individual shall file with the court--

`(1) at the same time filed with the taxing authority, a copy of each Federal income tax return required under applicable law (or at the election of the debtor, a transcript of such tax return) with respect to each tax year of the debtor ending while the case is pending under such chapter;

`(2) at the same time filed with the taxing authority, each Federal income tax return required under applicable law (or at the election of the debtor, a transcript of such tax return) that had not been filed with such authority as of the date of the commencement of the case and that was subsequently filed for any tax year of the debtor ending in the 3-year period ending on the date of the commencement of the case;

`(3) a copy of each amendment to any Federal income tax return or transcript filed with the court under paragraph (1) or (2); and

`(4) in a case under chapter 13--

`(A) on the date that is either 90 days after the end of such tax year or 1 year after the date of the commencement of the case, whichever is later, if a plan is not confirmed before such later date; and

`(B) annually after the plan is confirmed and until the case is closed, not later than the date that is 45 days before the anniversary of the confirmation of the plan;

a statement, under penalty of perjury, of the income and expenditures of the debtor during the tax year of the debtor most recently concluded before such statement is filed under this paragraph, and of the monthly income of the debtor, that shows how income, expenditures, and monthly income are calculated.

`(g)(1) A statement referred to in subsection (f)(4) shall disclose--

`(A) the amount and sources of the income of the debtor;

`(B) the identity of any person responsible with the debtor for the support of any dependent of the debtor; and

`(C) the identity of any person who contributed, and the amount contributed, to the household in which the debtor resides.

`(2) The tax returns, amendments, and statement of income and expenditures described in subsections (e)(2)(A) and (f) shall be available to the United States trustee (or the bankruptcy administrator, if any), the trustee, and any party in interest for inspection and copying, subject to the requirements of section 315(c) of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

`(h) If requested by the United States trustee or by the trustee, the debtor shall provide--

`(1) a document that establishes the identity of the debtor, including a driver's license, passport, or other document that contains a photograph of the debtor; or

`(2) such other personal identifying information relating to the debtor that establishes the identity of the debtor.'.

(c)(1) Not later than 180 days after the date of the enactment of this Act, the Director of the Administrative Office of the United States Courts shall establish procedures for safeguarding the confidentiality of any tax information required to be provided under this section.

(2) The procedures under paragraph (1) shall include restrictions on creditor access to tax information that is required to be provided under this section.

(3) Not later than 540 days after the date of enactment of this Act, the Director of the Administrative Office of the United States Courts shall prepare and submit to the President pro tempore of the Senate and the Speaker of the House of Representatives a report that--

(A) assesses the effectiveness of the procedures established under paragraph (1); and

(B) if appropriate, includes proposed legislation to--

(i) further protect the confidentiality of tax information; and

(ii) provide penalties for the improper use by any person of the tax information required to be provided under this section.

SEC. 316. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR PROVIDE REQUIRED INFORMATION.

Section 521 of title 11, United States Code, as amended by sections 106, 225, 305, and 315, is amended by adding at the end the following:

`(i)(1) Subject to paragraphs (2) and (4) and notwithstanding section 707(a), if an individual debtor in a voluntary case under chapter 7 or 13 fails to file all of the information required under subsection (a)(1) within 45 days after the date of the filing of the petition, the case shall be automatically dismissed effective on the 46th day after the date of the filing of the petition.

`(2) Subject to paragraph (4) and with respect to a case described in paragraph (1), any party in interest may request the court to enter an order dismissing the case. If requested, the court shall enter an order of dismissal not later than 5 days after such request.

`(3) Subject to paragraph (4) and upon request of the debtor made within 45 days after the date of the filing of the petition described in paragraph (1), the court may allow the debtor an additional period of not to exceed 45 days to file the information required under subsection (a)(1) if the court finds justification for extending the period for the filing.

`(4) Notwithstanding any other provision of this subsection, on the motion of the trustee filed before the expiration of the applicable period of time specified in paragraph (1), (2), or (3), and after notice and a hearing, the court may decline to dismiss the case if the court finds that the debtor attempted in good faith to file all the information required by subsection (a)(1)(B)(iv) and that the best interests of creditors would be served by administration of the case.'.

SEC. 317. ADEQUATE TIME TO PREPARE FOR HEARING ON CONFIRMATION OF THE PLAN.

Section 1324 of title 11, United States Code, is amended--

(1) by striking `After' and inserting the following:

`(a) Except as provided in subsection (b) and after'; and

(2) by adding at the end the following:

`(b) The hearing on confirmation of the plan may be held not earlier than 20 days and not later than 45 days after the date of the meeting of creditors under section 341(a), unless the court determines that it would be in the best interests of the creditors and the estate to hold such hearing at an earlier date and there is no objection to such earlier date.'.

SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION IN CERTAIN CASES.

Title 11, United States Code, is amended--

(1) by amending section 1322(d) to read as follows:

`(d)(1) If the current monthly income of the debtor and the debtor's spouse combined, when multiplied by 12, is not less than--

`(A) in the case of a debtor in a household of 1 person, the median family income of the applicable State for 1 earner;

`(B) in the case of a debtor in a household of 2, 3, or 4 individuals, the highest median family income of the applicable State for a family of the same number or fewer individuals; or

`(C) in the case of a debtor in a household exceeding 4 individuals, the highest median family income of the applicable State for a family of 4 or fewer individuals, plus $525 per month for each individual in excess of 4,

the plan may not provide for payments over a period that is longer than 5 years.

`(2) If the current monthly income of the debtor and the debtor's spouse combined, when multiplied by 12, is less than--

`(A) in the case of a debtor in a household of 1 person, the median family income of the applicable State for 1 earner;

`(B) in the case of a debtor in a household of 2, 3, or 4 individuals, the highest median family income of the applicable State for a family of the same number or fewer individuals; or

the plan may not provide for payments over a period that is longer than 3 years, unless the court, for cause, approves a longer period, but the court may not approve a period that is longer than 5 years.';

(2) in section 1325(b)(1)(B), by striking `three-year period' and inserting `applicable commitment period'; and

(3) in section 1325(b), as amended by section 102, by adding at the end the following:

`(4) For purposes of this subsection, the `applicable commitment period'--

`(A) subject to subparagraph (B), shall be--

`(i) 3 years; or

`(ii) not less than 5 years, if the current monthly income of the debtor and the debtor's spouse combined, when multiplied by 12, is not less than--

`(I) in the case of a debtor in a household of 1 person, the median family income of the applicable State for 1 earner;

`(II) in the case of a debtor in a household of 2, 3, or 4 individuals, the highest median family income of the applicable State for a family of the same number or fewer individuals; or

`(III) in the case of a debtor in a household exceeding 4 individuals, the highest median family income of the applicable State for a family of 4 or fewer individuals, plus $525 per month for each individual in excess of 4; and

`(B) may be less than 3 or 5 years, whichever is applicable under subparagraph (A), but only if the plan provides for payment in full of all allowed unsecured claims over a shorter period.'; and

(4) in section 1329(c), by striking `three years' and inserting `the applicable commitment period under section 1325(b)(1)(B)'.

SEC. 319. SENSE OF CONGRESS REGARDING EXPANSION OF RULE 9011 OF THE FEDERAL RULES OF BANKRUPTCY PROCEDURE.

It is the sense of Congress that rule 9011 of the Federal Rules of Bankruptcy Procedure (11 U.S.C. App.) should be modified to include a requirement that all documents (including schedules), signed and unsigned, submitted to the court or to a trustee by debtors who represent themselves and debtors who are represented by attorneys be submitted only after the debtors or the debtors' attorneys have made reasonable inquiry to verify that the information contained in such documents is--

(1) well grounded in fact; and

(2) warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law.

SEC. 320. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

Section 362(e) of title 11, United States Code, is amended--

(1) by inserting `(1)' after `(e)'; and

(2) by adding at the end the following:

`(2) Notwithstanding paragraph (1), in a case under chapter 7, 11, or 13 in which the debtor is an individual, the stay under subsection (a) shall terminate on the date that is 60 days after a request is made by a party in interest under subsection (d), unless--

`(A) a final decision is rendered by the court during the 60-day period beginning on the date of the request; or

`(B) such 60-day period is extended--

`(i) by agreement of all parties in interest; or

`(ii) by the court for such specific period of time as the court finds is required for good cause, as described in findings made by the court.'.

SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.

(a) PROPERTY OF THE ESTATE-

(1) IN GENERAL- Subchapter I of chapter 11 of title 11, United States Code, is amended by adding at the end the following:

`Sec. 1115. Property of the estate

`(a) In a case in which the debtor is an individual, property of the estate includes, in addition to the property specified in section 541--

`(1) all property of the kind specified in section 541 that the debtor acquires after the commencement of the case but before the case is closed, dismissed, or converted to a case under chapter 7, 12, or 13, whichever occurs first; and

`(2) earnings from services performed by the debtor after the commencement of the case but before the case is closed, dismissed, or converted to a case under chapter 7, 12, or 13, whichever occurs first.

`(b) Except as provided in section 1104 or a confirmed plan or order confirming a plan, the debtor shall remain in possession of all property of the estate.'.

(2) CLERICAL AMENDMENT- The table of sections for subchapter I of chapter 11 of title 11, United States Code, is amended by adding at the end the following:

`1115. Property of the estate.'.

(b) CONTENTS OF PLAN- Section 1123(a) of title 11, United States Code, is amended--

(1) in paragraph (6), by striking `and' at the end;

(2) in paragraph (7), by striking the period and inserting `; and'; and

(3) by adding at the end the following:

`(8) in a case in which the debtor is an individual, provide for the payment to creditors under the plan of all or such portion of earnings from personal services performed by the debtor after the commencement of the case or other future income of the debtor as is necessary for the execution of the plan.'.

(1) REQUIREMENTS RELATING TO VALUE OF PROPERTY- Section 1129(a) of title 11, United States Code, as amended by section 213, is amended by adding at the end the following:

`(15) In a case in which the debtor is an individual and in which the holder of an allowed unsecured claim objects to the confirmation of the plan--

`(A) the value, as of the effective date of the plan, 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) the value of the property to be distributed under the plan is not less than the projected disposable income of the debtor (as defined in section 1325(b)(2)) to be received during the 5-year period beginning on the date that the first payment is due under the plan, or during the period for which the plan provides payments, whichever is longer.'.

(2) REQUIREMENT RELATING TO INTERESTS IN PROPERTY- Section 1129(b)(2)(B)(ii) of title 11, United States Code, is amended by inserting before the period at the end the following: `, except that in a case in which the debtor is an individual, the debtor may retain property included in the estate under section 1115, subject to the requirements of subsection (a)(14) of this section'.

(d) EFFECT OF CONFIRMATION- Section 1141(d) of title 11, United States Code, is amended--

(1) in paragraph (2), by striking `The confirmation of a plan does not discharge an individual debtor' and inserting `A discharge under this chapter does not discharge a debtor who is an individual'; and

(2) by adding at the end the following:

`(5) In a case in which the debtor is an individual--

`(A) unless after notice and a hearing the court orders otherwise for cause, confirmation of the plan does not discharge any debt provided for in the plan until the court grants a discharge on completion of all payments under the plan;

`(B) at any time after the confirmation of the plan, and after notice and a hearing, the court may grant a discharge to the debtor who has not completed payments under the plan if--

`(i) 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 liquidated under chapter 7 on such date; and

`(ii) modification of the plan under section 1127 is not practicable; and'.

(e) MODIFICATION OF PLAN- Section 1127 of title 11, United States Code, is amended by adding at the end the following:

`(e) If the debtor is an individual, the plan may be modified at any time after confirmation of the plan but before the completion of payments under the plan, whether or not the plan has been substantially consummated, upon request of the debtor, the trustee, the United States trustee, or the holder of an allowed unsecured claim, to--

`(1) increase or reduce the amount of payments on claims of a particular class provided for by the plan;

`(2) extend or reduce the time period 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 made other than under the plan.

`(f)(1) Sections 1121 through 1128 and the requirements of section 1129 apply to any modification under subsection (a).

`(2) The plan, as modified, shall become the plan only after there has been disclosure under section 1125 as the court may direct, notice and a hearing, and such modification is approved.'.

SEC. 322. LIMITATIONS ON HOMESTEAD EXEMPTION.

(a) EXEMPTIONS- Section 522 of title 11, United States Code, as amended by sections 224 and 308, is amended by adding at the end the following:

`(p)(1) Except as provided in paragraph (2) of this subsection and sections 544 and 548, as a result of electing under subsection (b)(3)(A) to exempt property under State or local law, a debtor may not exempt any amount of interest that was acquired by the debtor during the 1215-day period preceding the date of the filing of the petition that exceeds in the aggregate $125,000 in value in--

`(A) real or personal property that the debtor or a dependent of the debtor uses as a residence;

`(B) a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence;

`(C) a burial plot for the debtor or a dependent of the debtor; or

`(D) real or personal property that the debtor or dependent of the debtor claims as a homestead.

`(2)(A) The limitation under paragraph (1) shall not apply to an exemption claimed under subsection (b)(3)(A) by a family farmer for the principal residence of such farmer.

`(B) For purposes of paragraph (1), any amount of such interest does not include any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215-day period) into the debtor's current principal residence, if the debtor's previous and current residences are located in the same State.

`(q)(1) As a result of electing under subsection (b)(3)(A) to exempt property under State or local law, a debtor may not exempt any amount of an interest in property described in subparagraphs (A), (B), (C), and (D) of subsection (p)(1) which exceeds in the aggregate $125,000 if--

`(A) the court determines, after notice and a hearing, that the debtor has been convicted of a felony (as defined in section 3156 of title 18), which under the circumstances, demonstrates that the filing of the case was an abuse of the provisions of this title; or

`(B) the debtor owes a debt arising from--

`(i) any violation of the Federal securities laws (as defined in section 3(a)(47) of the Securities Exchange Act of 1934), any State securities laws, or any regulation or order issued under Federal securities laws or State securities laws;

`(ii) fraud, deceit, or manipulation in a fiduciary capacity or in connection with the purchase or sale of any security registered under section 12 or 15(d) of the Securities Exchange Act of 1934 or under section 6 of the Securities Act of 1933;

`(iii) any civil remedy under section 1964 of title 18; or

`(iv) any criminal act, intentional tort, or willful or reckless misconduct that caused serious physical injury or death to another individual in the preceding 5 years.

`(2) Paragraph (1) shall not apply to the extent the amount of an interest in property described in subparagraphs (A), (B), (C), and (D) of subsection (p)(1) is reasonably necessary for the support of the debtor and any dependent of the debtor.'.

(b) ADJUSTMENT OF DOLLAR AMOUNTS- Paragraphs (1) and (2) of section 104(b) of title 11, United States Code, as amended by section 224, are amended by inserting `522(p), 522(q),' after `522(n),'.

SEC. 323. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICIPANT CONTRIBUTIONS AND OTHER PROPERTY FROM THE ESTATE.

Section 541(b) of title 11, United States Code, as amended by section 225, is amended by adding after paragraph (6), as added by section 225(a)(1)(C), the following:

`(7) any amount--

`(A) withheld by an employer from the wages of employees for payment as contributions--

`(i) to--

`(I) an employee benefit plan that is subject to title I of the Employee Retirement Income Security Act of 1974 or under an employee benefit plan which is a governmental plan under section 414(d) of the Internal Revenue Code of 1986;

`(II) a deferred compensation plan under section 457 of the Internal Revenue Code of 1986; or

`(III) a tax-deferred annuity under section 403(b) of the Internal Revenue Code of 1986;

except that such amount under this subparagraph shall not constitute disposable income as defined in section 1325(b)(2); or

`(ii) to a health insurance plan regulated by State law whether or not subject to such title; or

`(B) received by an employer from employees for payment as contributions--

`(i) to--

`(II) a deferred compensation plan under section 457 of the Internal Revenue Code of 1986; or

`(III) a tax-deferred annuity under section 403(b) of the Internal Revenue Code of 1986;

except that such amount under this subparagraph shall not constitute disposable income, as defined in section 1325(b)(2); or

`(ii) to a health insurance plan regulated by State law whether or not subject to such title;'.

SEC. 324. EXCLUSIVE JURISDICTION IN MATTERS INVOLVING BANKRUPTCY PROFESSIONALS.

(a) IN GENERAL- Section 1334 of title 28, United States Code, is amended--

(1) in subsection (b), by striking `Notwithstanding' and inserting `Except as provided in subsection (e)(2), and notwithstanding'; and

(2) by striking subsection (e) and inserting the following:

`(e) The district court in which a case under title 11 is commenced or is pending shall have exclusive jurisdiction--

`(1) of all the property, wherever located, of the debtor as of the commencement of such case, and of property of the estate; and

`(2) over all claims or causes of action that involve construction of section 327 of title 11, United States Code, or rules relating to disclosure requirements under section 327.'.

(b) APPLICABILITY- This section shall only apply to cases filed after the date of enactment of this Act.

SEC. 325. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.

(a) Actions Under Chapter 7, 11, or 13 of Title 11, United States Code- Section 1930(a) of title 28, United States Code, is amended--

(1) by striking paragraph (1) and inserting the following:

`(1) For a case commenced under--

`(A) chapter 7 of title 11, $200; and

`(B) chapter 13 of title 11, $150.'; and

(2) in paragraph (3), by striking `$800' and inserting `$1000'.

(b) United States Trustee System Fund- Section 589a(b) of title 28, United States Code, is amended--

(1) by striking paragraph (1) and inserting the following:

`(1)(A) 40.63 percent of the fees collected under section 1930(a)(1)(A) of this title; and

`(B) 70.00 percent of the fees collected under section 1930(a)(1)(B);';

(2) in paragraph (2), by striking `one-half' and inserting `75 percent'; and

(3) in paragraph (4), by striking `one-half' and inserting `100 percent'.

(c) Collection and Deposit of Miscellaneous Bankruptcy Fees- Section 406(b) of the Judiciary Appropriations Act, 1990 (28 U.S.C. 1931 note) is amended by striking `pursuant to 28 U.S.C. section 1930(b)' and all that follows through `28 U.S.C. section 1931' and inserting `under section 1930(b) of title 28, United States Code, 31.25 of the fees collected under section 1930(a)(1)(A) of that title, 30.00 percent of the fees collected under section 1930(a)(1)(B) of that title, and 25 percent of the fees collected under section 1930(a)(3) of that title shall be deposited as offsetting receipts to the fund established under section 1931 of that title'.

(d) Sunset Date- The amendments made by subsections (b) and (c) shall be effective during the 2-year period beginning on the date of enactment of this Act.

(e) Use of Increased Receipts-

(1) JUDGES' SALARIES AND BENEFITS- The amount of fees collected under paragraphs (1) and (3) of section 1930(a) of title 28, United States Code, during the 5-year period beginning on the date of enactment of this Act, that is greater than the amount that would have been collected if the amendments made by subsection (a) had not taken effect shall be used, to the extent necessary, to pay the salaries and benefits of the judges appointed pursuant to section 1223 of this Act.

(2) REMAINDER- Any amount described in paragraph (1), which is not used for the purpose described in paragraph (1), shall be deposited into the Treasury of the United States to the extent necessary to offset the decrease in governmental receipts resulting from the amendments made by subsections (b) and (c).

SEC. 326. SHARING OF COMPENSATION.

Section 504 of title 11, United States Code, is amended by adding at the end the following:

`(c) This section shall not apply with respect to sharing, or agreeing to share, compensation with a bona fide public service attorney referral program that operates in accordance with non-Federal law regulating attorney referral services and with rules of professional responsibility applicable to attorney acceptance of referrals.'.

SEC. 327. FAIR VALUATION OF COLLATERAL.

Section 506(a) of title 11, United States Code, is amended by--

(1) inserting `(1)' after `(a)'; and

(2) by adding at the end the following:

`(2) If the debtor is an individual in a case under chapter 7 or 13, such value with respect to personal property securing an allowed claim shall be determined based on the replacement value of such property as of the date of the filing of the petition without deduction for costs of sale or marketing. With respect to property acquired for personal, family, or household purposes, replacement value shall mean the price a retail merchant would charge for property of that kind considering the age and condition of the property at the time value is determined.'.

SEC. 328. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

(a) EXECUTORY CONTRACTS AND UNEXPIRED LEASES- Section 365 of title 11, United States Code, is amended--

(1) in subsection (b)--

(A) in paragraph (1)(A), by striking the semicolon at the end and inserting the following: `other than a default that is a breach of a provision relating to the satisfaction of any provision (other than a penalty rate or penalty provision) relating to a default arising from any failure to perform nonmonetary obligations under an unexpired lease of real property, if it is impossible for the trustee to cure such default by performing nonmonetary acts at and after the time of assumption, except that if such default arises from a failure to operate in accordance with a nonresidential real property lease, then such default shall be cured by performance at and after the time of assumption in accordance with such lease, and pecuniary losses resulting from such default shall be compensated in accordance with the provisions of this paragraph;'; and

(B) in paragraph (2)(D), by striking `penalty rate or provision' and inserting `penalty rate or penalty provision';

(2) in subsection (c)--

(A) in paragraph (2), by inserting `or' at the end;

(B) in paragraph (3), by striking `; or' at the end and inserting a period; and

(3) in subsection (d)--

(A) by striking paragraphs (5) through (9); and

(B) by redesignating paragraph (10) as paragraph (5); and

(4) in subsection (f)(1) by striking `; except that' and all that follows through the end of the paragraph and inserting a period.

(b) IMPAIRMENT OF CLAIMS OR INTERESTS- Section 1124(2) of title 11, United States Code, is amended--

(1) in subparagraph (A), by inserting `or of a kind that section 365(b)(2) expressly does not require to be cured' before the semicolon at the end;

(2) in subparagraph (C), by striking `and' at the end;

(3) by redesignating subparagraph (D) as subparagraph (E); and

(4) by inserting after subparagraph (C) the following:

`(D) if such claim or such interest arises from any failure to perform a nonmonetary obligation, other than a default arising from failure to operate a nonresidential real property lease subject to section 365(b)(1)(A), compensates the holder of such claim or such interest (other than the debtor or an insider) for any actual pecuniary loss incurred by such holder as a result of such failure; and'.

SEC. 329. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

Section 503(b)(1)(A) of title 11, United States Code, is amended to read as follows:

`(A) the actual, necessary costs and expenses of preserving the estate including--

`(i) wages, salaries, and commissions for services rendered after the commencement of the case; and

`(ii) wages and benefits awarded pursuant to a judicial proceeding or a proceeding of the National Labor Relations Board as back pay attributable to any period of time occurring after commencement of the case under this title, as a result of a violation of Federal or State law by the debtor, without regard to the time of the occurrence of unlawful conduct on which such award is based or to whether any services were rendered, if the court determines that payment of wages and benefits by reason of the operation of this clause will not substantially increase the probability of layoff or termination of current employees, or of nonpayment of domestic support obligations, during the case under this title;'.

SEC. 330. DELAY OF DISCHARGE DURING PENDENCY OF CERTAIN PROCEEDINGS.

(a) CHAPTER 7- Section 727(a) of title 11, United States Code, as amended by section 106, is amended--

(1) in paragraph (10), by striking `or' at the end;

(2) in paragraph (11) by striking the period at the end and inserting `; or'; and

(3) by inserting after paragraph (11) the following:

`(12) the court after notice and a hearing held not more than 10 days before the date of the entry of the order granting the discharge finds that there is reasonable cause to believe that--

`(A) section 522(q)(1) may be applicable to the debtor; and

`(B) there is pending any proceeding in which the debtor may be found guilty of a felony of the kind described in section 522(q)(1)(A) or liable for a debt of the kind described in section 522(q)(1)(B).'.

(b) CHAPTER 11- Section 1141(d) of title 11, United States Code, as amended by section 321, is amended by adding at the end the following:

`(C) unless after notice and a hearing held not more than 10 days before the date of the entry of the order granting the discharge, the court finds that there is no reasonable cause to believe that--

`(i) section 522(q)(1) may be applicable to the debtor; and

`(ii) there is pending any proceeding in which the debtor may be found guilty of a felony of the kind described in section 522(q)(1)(A) or liable for a debt of the kind described in section 522(q)(1)(B).'.

(1) in subsection (a) by striking `As' and inserting `Subject to subsection (d), as',

(2) in subsection (b) by striking `At' and inserting `Subject to subsection (d), at', and

(3) by adding at the end the following:

`(f) The court may not grant a discharge under this chapter unless the court after notice and a hearing held not more than 10 days before the date of the entry of the order granting the discharge finds that there is no reasonable cause to believe that--

`(1) section 522(q)(1) may be applicable to the debtor; and

`(2) there is pending any proceeding in which the debtor may be found guilty of a felony of the kind described in section 522(q)(1)(A) or liable for a debt of the kind described in section 522(q)(1)(B).'.

(d) CHAPTER 13- Section 1328 of title 11, United States Code, as amended by section 106, is amended--

(1) in subsection (a) by striking `As' and inserting `Subject to subsection (d), as',

(2) in subsection (b) by striking `At' and inserting `Subject to subsection (d), at', and

(3) by adding at the end the following:

`(h) The court may not grant a discharge under this chapter unless the court after notice and a hearing held not more than 10 days before the date of the entry of the order granting the discharge finds that there is no reasonable cause to believe that--

`(1) section 522(q)(1) may be applicable to the debtor; and

SEC. 331. LIMITATION ON RETENTION BONUSES, SEVERANCE PAY, AND CERTAIN OTHER PAYMENTS.

Section 503 of title 11, United States Code, is amended by adding at the end the following:

`(c) Notwithstanding subsection (b), there shall neither be allowed, nor paid--

`(1) a transfer made to, or an obligation incurred for the benefit of, an insider of the debtor for the purpose of inducing such person to remain with the debtor's business, absent a finding by the court based on evidence in the record that--

`(A) the transfer or obligation is essential to retention of the person because the individual has a bona fide job offer from another business at the same or greater rate of compensation;

`(B) the services provided by the person are essential to the survival of the business; and

`(C) either--

`(i) the amount of the transfer made to, or obligation incurred for the benefit of, the person is not greater than an amount equal to 10 times the amount of the mean transfer or obligation of a similar kind given to nonmanagement employees for any purpose during the calendar year in which the transfer is made or the obligation is incurred; or

`(ii) if no such similar transfers were made to, or obligations were incurred for the benefit of, such nonmanagement employees during such calendar year, the amount of the transfer or obligation is not greater than an amount equal to 25 percent of the amount of any similar transfer or obligation made to or incurred for the benefit of such insider for any purpose during the calendar year before the year in which such transfer is made or obligation is incurred;

`(2) a severance payment to an insider of the debtor, unless--

`(A) the payment is part of a program that is generally applicable to all full-time employees; and

`(B) the amount of the payment is not greater than 10 times the amount of the mean severance pay given to nonmanagement employees during the calendar year in which the payment is made; or

`(3) other transfers or obligations that are outside the ordinary course of business and not justified by the facts and circumstances of the case, including transfers made to, or obligations incurred for the benefit of, officers, managers, or consultants hired after the date of the filing of the petition.'.

SEC. 332. FRAUDULENT INVOLUNTARY BANKRUPTCY.

(a) Short Title- This section may be cited as the `Involuntary Bankruptcy Improvement Act of 2005'.

(b) Involuntary Cases- Section 303 of title 11, United States Code, is amended by adding at the end the following:

`(A) the petition under this section is false or contains any materially false, fictitious, or fraudulent statement;

`(B) the debtor is an individual; and

`(C) the court dismisses such petition,

the court, upon the motion of the debtor, shall seal all the records of the court relating to such petition, and all references to such petition.

`(2) If the debtor is an individual and the court dismisses a petition under this section, the court may enter an order prohibiting all consumer reporting agencies (as defined in section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f))) from making any consumer report (as defined in section 603(d) of that Act) that contains any information relating to such petition or to the case commenced by the filing of such petition.

`(3) Upon the expiration of the statute of limitations described in section 3282 of title 18, for a violation of section 152 or 157 of such title, the court, upon the motion of the debtor and for good cause, may expunge any records relating to a petition filed under this section.'.

(c) Bankruptcy Fraud- Section 157 of title 18, United States Code, is amended by inserting `, including a fraudulent involuntary bankruptcy petition under section 303 of such title' after `title 11'.

TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

Subtitle A--General Business Bankruptcy Provisions

SEC. 401. ADEQUATE PROTECTION FOR INVESTORS.

(a) DEFINITION- Section 101 of title 11, United States Code, is amended by inserting after paragraph (48) the following:

`(48A) `securities self regulatory organization' means either a securities association registered with the Securities and Exchange Commission under section 15A of the Securities Exchange Act of 1934 or a national securities exchange registered with the Securities and Exchange Commission under section 6 of the Securities Exchange Act of 1934;'.

(b) AUTOMATIC STAY- Section 362(b) of title 11, United States Code, as amended by sections 224, 303, and 311, is amended by inserting after paragraph (24) the following:

`(25) under subsection (a), of--

`(A) the commencement or continuation of an investigation or action by a securities self regulatory organization to enforce such organization's regulatory power;

`(B) the enforcement of an order or decision, other than for monetary sanctions, obtained in an action by such securities self regulatory organization to enforce such organization's regulatory power; or

`(C) any act taken by such securities self regulatory organization to delist, delete, or refuse to permit quotation of any stock that does not meet applicable regulatory requirements;'.

SEC. 402. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

Section 341 of title 11, United States Code, is amended by adding at the end the following:

`(e) Notwithstanding subsections (a) and (b), the court, on the request of a party in interest and after notice and a hearing, for cause may order that the United States trustee not convene a meeting of creditors or equity security holders if the debtor has filed a plan as to which the debtor solicited acceptances prior to the commencement of the case.'.

SEC. 403. PROTECTION OF REFINANCE OF SECURITY INTEREST.

Subparagraphs (A), (B), and (C) of section 547(e)(2) of title 11, United States Code, are each amended by striking `10' each place it appears and inserting `30'.

SEC. 404. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

(a) IN GENERAL- Section 365(d)(4) of title 11, United States Code, is amended to read as follows:

`(4)(A) Subject to subparagraph (B), an unexpired lease of nonresidential real property under which the debtor is the lessee shall be deemed rejected, and the trustee shall immediately surrender that nonresidential real property to the lessor, if the trustee does not assume or reject the unexpired lease by the earlier of--

`(i) the date that is 120 days after the date of the order for relief; or

`(ii) the date of the entry of an order confirming a plan.

`(B)(i) The court may extend the period determined under subparagraph (A), prior to the expiration of the 120-day period, for 90 days on the motion of the trustee or lessor for cause.

`(ii) If the court grants an extension under clause (i), the court may grant a subsequent extension only upon prior written consent of the lessor in each instance.'.

(b) EXCEPTION- Section 365(f)(1) of title 11, United States Code, is amended by striking `subsection' the first place it appears and inserting `subsections (b) and'.

SEC. 405. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

(a) APPOINTMENT- Section 1102(a) of title 11, United States Code, is amended by adding at the end the following:

`(4) On request of a party in interest and after notice and a hearing, the court may order the United States trustee to change the membership of a committee appointed under this subsection, if the court determines that the change is necessary to ensure adequate representation of creditors or equity security holders. The court may order the United States trustee to increase the number of members of a committee to include a creditor that is a small business concern (as described in section 3(a)(1) of the Small Business Act), if the court determines that the creditor holds claims (of the kind represented by the committee) the aggregate amount of which, in comparison to the annual gross revenue of that creditor, is disproportionately large.'.

(b) INFORMATION- Section 1102(b) of title 11, United States Code, is amended by adding at the end the following:

`(3) A committee appointed under subsection (a) shall--

`(A) provide access to information for creditors who--

`(i) hold claims of the kind represented by that committee; and

`(ii) are not appointed to the committee;

`(B) solicit and receive comments from the creditors described in subparagraph (A); and

`(C) be subject to a court order that compels any additional report or disclosure to be made to the creditors described in subparagraph (A).'.

SEC. 406. AMENDMENT TO SECTION 546 OF TITLE 11, UNITED STATES CODE.

Section 546 of title 11, United States Code, is amended--

(1) by redesignating the second subsection (g) (as added by section 222(a) of Public Law 103-394) as subsection (h);

(2) in subsection (h), as so redesignated, by inserting `and subject to the prior rights of holders of security interests in such goods or the proceeds of such goods' after `consent of a creditor'; and

(3) by adding at the end the following:

`(i)(1) Notwithstanding paragraphs (2) and (3) of section 545, the trustee may not avoid a warehouseman's lien for storage, transportation, or other costs incidental to the storage and handling of goods.

`(2) The prohibition under paragraph (1) shall be applied in a manner consistent with any State statute applicable to such lien that is similar to section 7-209 of the Uniform Commercial Code, as in effect on the date of enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, or any successor to such section 7-209.'.

SEC. 407. AMENDMENTS TO SECTION 330(a) OF TITLE 11, UNITED STATES CODE.

Section 330(a) of title 11, United States Code, is amended--

(1) in paragraph (3)--

(A) by striking `(A) In' and inserting `In'; and

(B) by inserting `to an examiner, trustee under chapter 11, or professional person' after `awarded'; and

(2) by adding at the end the following:

`(7) In determining the amount of reasonable compensation to be awarded to a trustee, the court shall treat such compensation as a commission, based on section 326.'.

SEC. 408. POSTPETITION DISCLOSURE AND SOLICITATION.

Section 1125 of title 11, United States Code, is amended by adding at the end the following:

`(g) Notwithstanding subsection (b), an acceptance or rejection of the plan may be solicited from a holder of a claim or interest if such solicitation complies with applicable nonbankruptcy law and if such holder was solicited before the commencement of the case in a manner complying with applicable nonbankruptcy law.'.

SEC. 409. PREFERENCES.

Section 547(c) of title 11, United States Code, is amended--

(1) by striking paragraph (2) and inserting the following:

`(2) to the extent that such transfer was in payment of a debt incurred by the debtor in the ordinary course of business or financial affairs of the debtor and the transferee, and such transfer was--

`(A) made in the ordinary course of business or financial affairs of the debtor and the transferee; or

`(B) made according to ordinary business terms;';

(2) in paragraph (8), by striking the period at the end and inserting `; or'; and

(3) by adding at the end the following:

`(9) if, in a case filed by a debtor whose debts are not primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $5,000.'.

SEC. 410. VENUE OF CERTAIN PROCEEDINGS.

Section 1409(b) of title 28, United States Code, is amended by inserting `, or a debt (excluding a consumer debt) against a noninsider of less than $10,000,' after `$5,000'. Section 1409(b) of title 28, United States Code, is further amended by striking `$5,000' and inserting `$15,000'.

SEC. 411. PERIOD FOR FILING PLAN UNDER CHAPTER 11.

Section 1121(d) of title 11, United States Code, is amended--

(1) by striking `On' and inserting `(1) Subject to paragraph (2), on'; and

(2) by adding at the end the following:

`(2)(A) The 120-day period specified in paragraph (1) may not be extended beyond a date that is 18 months after the date of the order for relief under this chapter.

`(B) The 180-day period specified in paragraph (1) may not be extended beyond a date that is 20 months after the date of the order for relief under this chapter.'.

SEC. 412. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

Section 523(a)(16) of title 11, United States Code, is amended--

(1) by striking `dwelling' the first place it appears;

(2) by striking `ownership or' and inserting `ownership,';

(3) by striking `housing' the first place it appears; and

(4) by striking `but only' and all that follows through `such period,' and inserting `or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot,'.

SEC. 413. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.

Section 341(c) of title 11, United States Code, is amended by inserting at the end the following: `Notwithstanding any local court rule, provision of a State constitution, any otherwise applicable nonbankruptcy law, or any other requirement that representation at the meeting of creditors under subsection (a) be by an attorney, a creditor holding a consumer debt or any representative of the creditor (which may include an entity or an employee of an entity and may be a representative for more than 1 creditor) shall be permitted to appear at and participate in the meeting of creditors in a case under chapter 7 or 13, either alone or in conjunction with an attorney for the creditor. Nothing in this subsection shall be construed to require any creditor to be represented by an attorney at any meeting of creditors.'.

SEC. 414. DEFINITION OF DISINTERESTED PERSON.

Section 101(14) of title 11, United States Code, is amended to read as follows:

`(14) `disinterested person' means a person that--

`(A) is not a creditor, an equity security holder, or an insider;

`(B) is not and was not, within 2 years before the date of the filing of the petition, a director, officer, or employee of the debtor; and

`(C) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason;'.

SEC. 415. FACTORS FOR COMPENSATION OF PROFESSIONAL PERSONS.

Section 330(a)(3) of title 11, United States Code, is amended--

(1) in subparagraph (D), by striking `and' at the end;

(2) by redesignating subparagraph (E) as subparagraph (F); and

(3) by inserting after subparagraph (D) the following:

`(E) with respect to a professional person, whether the person is board certified or otherwise has demonstrated skill and experience in the bankruptcy field; and'.

SEC. 416. APPOINTMENT OF ELECTED TRUSTEE.

Section 1104(b) of title 11, United States Code, is amended--

(1) by inserting `(1)' after `(b)'; and

(2) by adding at the end the following:

`(2)(A) If an eligible, disinterested trustee is elected at a meeting of creditors under paragraph (1), the United States trustee shall file a report certifying that election.

`(B) Upon the filing of a report under subparagraph (A)--

`(i) the trustee elected under paragraph (1) shall be considered to have been selected and appointed for purposes of this section; and

`(ii) the service of any trustee appointed under subsection (d) shall terminate.

`(C) The court shall resolve any dispute arising out of an election described in subparagraph (A).'.

SEC. 417. UTILITY SERVICE.

Section 366 of title 11, United States Code, is amended--

(1) in subsection (a), by striking `subsection (b)' and inserting `subsections (b) and (c)'; and

(2) by adding at the end the following:

`(c)(1)(A) For purposes of this subsection, the term `assurance of payment' means--

`(i) a cash deposit;

`(ii) a letter of credit;

`(iii) a certificate of deposit;

`(iv) a surety bond;

`(v) a prepayment of utility consumption; or

`(vi) another form of security that is mutually agreed on between the utility and the debtor or the trustee.

`(B) For purposes of this subsection an administrative expense priority shall not constitute an assurance of payment.

`(2) Subject to paragraphs (3) and (4), with respect to a case filed under chapter 11, a utility referred to in subsection (a) may alter, refuse, or discontinue utility service, if during the 30-day period beginning on the date of the filing of the petition, the utility does not receive from the debtor or the trustee adequate assurance of payment for utility service that is satisfactory to the utility.

`(3)(A) On request of a party in interest and after notice and a hearing, the court may order modification of the amount of an assurance of payment under paragraph (2).

`(B) In making a determination under this paragraph whether an assurance of payment is adequate, the court may not consider--

`(i) the absence of security before the date of the filing of the petition;

`(ii) the payment by the debtor of charges for utility service in a timely manner before the date of the filing of the petition; or

`(iii) the availability of an administrative expense priority.

`(4) Notwithstanding any other provision of law, with respect to a case subject to this subsection, a utility may recover or set off against a security deposit provided to the utility by the debtor before the date of the filing of the petition without notice or order of the court.'.

SEC. 418. BANKRUPTCY FEES.

Section 1930 of title 28, United States Code, is amended--

(1) in subsection (a), by striking `Notwithstanding section 1915 of this title, the' and inserting `The'; and

(2) by adding at the end the following:

`(f)(1) Under the procedures prescribed by the Judicial Conference of the United States, the district court or the bankruptcy court may waive the filing fee in a case under chapter 7 of title 11 for an individual if the court determines that such individual has income less than 150 percent of the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved and is unable to pay that fee in installments. For purposes of this paragraph, the term `filing fee' means the filing fee required by subsection (a), or any other fee prescribed by the Judicial Conference under subsections (b) and (c) that is payable to the clerk upon the commencement of a case under chapter 7.

`(2) The district court or the bankruptcy court may waive for such debtors other fees prescribed under subsections (b) and (c).

`(3) This subsection does not restrict the district court or the bankruptcy court from waiving, in accordance with Judicial Conference policy, fees prescribed under this section for other debtors and creditors.'.

SEC. 419. MORE COMPLETE INFORMATION REGARDING ASSETS OF THE ESTATE.

(a) IN GENERAL-

(1) DISCLOSURE- The Judicial Conference of the United States, in accordance with section 2075 of title 28 of the United States Code and after consideration of the views of the Director of the Executive Office for United States Trustees, shall propose amended Federal Rules of Bankruptcy Procedure and in accordance with rule 9009 of the Federal Rules of Bankruptcy Procedure shall prescribe official bankruptcy forms directing debtors under chapter 11 of title 11 of United States Code, to disclose the information described in paragraph (2) by filing and serving periodic financial and other reports designed to provide such information.

(2) INFORMATION- The information referred to in paragraph (1) is the value, operations, and profitability of any closely held corporation, partnership, or of any other entity in which the debtor holds a substantial or controlling interest.

(b) PURPOSE- The purpose of the rules and reports under subsection (a) shall be to assist parties in interest taking steps to ensure that the debtor's interest in any entity referred to in subsection (a)(2) is used for the payment of allowed claims against debtor.

Subtitle B--Small Business Bankruptcy Provisions

SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

Section 1125 of title 11, United States Code, is amended--

(1) in subsection (a)(1), by inserting before the semicolon `and in determining whether a disclosure statement provides adequate information, the court shall consider the complexity of the case, the benefit of additional information to creditors and other parties in interest, and the cost of providing additional information'; and

(2) by striking subsection (f), and inserting the following:

`(f) Notwithstanding subsection (b), in a small business case--

`(1) the court may determine that the plan itself provides adequate information and that a separate disclosure statement is not necessary;

`(2) the court may approve a disclosure statement submitted on standard forms approved by the court or adopted under section 2075 of title 28; and

`(3)(A) the court may conditionally approve a disclosure statement subject to final approval after notice and a hearing;

`(B) acceptances and rejections of a plan may be solicited based on a conditionally approved disclosure statement if the debtor provides adequate information to each holder of a claim or interest that is solicited, but a conditionally approved disclosure statement shall be mailed not later than 25 days before the date of the hearing on confirmation of the plan; and

`(C) the hearing on the disclosure statement may be combined with the hearing on confirmation of a plan.'.

SEC. 432. DEFINITIONS.

(a) DEFINITIONS- Section 101 of title 11, United States Code, is amended by striking paragraph (51C) and inserting the following:

`(51C) `small business case' means a case filed under chapter 11 of this title in which the debtor is a small business debtor;

`(51D) `small business debtor'--

`(A) subject to subparagraph (B), means a person engaged in commercial or business activities (including any affiliate of such person that is also a debtor under this title and excluding a person whose primary activity is the business of owning or operating real property or activities incidental thereto) that has aggregate noncontingent liquidated secured and unsecured debts as of the date of the petition or the date of the order for relief in an amount not more than $2,000,000 (excluding debts owed to 1 or more affiliates or insiders) for a case in which the United States trustee has not appointed under section 1102(a)(1) a committee of unsecured creditors or where the court has determined that the committee of unsecured creditors is not sufficiently active and representative to provide effective oversight of the debtor; and

`(B) does not include any member of a group of affiliated debtors that has aggregate noncontingent liquidated secured and unsecured debts in an amount greater than $2,000,000 (excluding debt owed to 1 or more affiliates or insiders);'.

(b) CONFORMING AMENDMENT- Section 1102(a)(3) of title 11, United States Code, is amended by inserting `debtor' after `small business'.

(c) ADJUSTMENT OF DOLLAR AMOUNTS- Section 104(b) of title 11, United States Code, as amended by section 226, is amended by inserting `101(51D),' after `101(3),' each place it appears.

SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

Within a reasonable period of time after the date of enactment of this Act, the Judicial Conference of the United States shall prescribe in accordance with rule 9009 of the Federal Rules of Bankruptcy Procedure official standard form disclosure statements and plans of reorganization for small business debtors (as defined in section 101 of title 11, United States Code, as amended by this Act), designed to achieve a practical balance between--

(1) the reasonable needs of the courts, the United States trustee, creditors, and other parties in interest for reasonably complete information; and

(2) economy and simplicity for debtors.

SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.

(a) REPORTING REQUIRED-

(1) IN GENERAL- Chapter 3 of title 11, United States Code, is amended by inserting after section 307 the following:

`Sec. 308. Debtor reporting requirements

`(a) For purposes of this section, the term `profitability' means, with respect to a debtor, the amount of money that the debtor has earned or lost during current and recent fiscal periods.

`(b) A small business debtor shall file periodic financial and other reports containing information including--

`(1) the debtor's profitability;

`(2) reasonable approximations of the debtor's projected cash receipts and cash disbursements over a reasonable period;

`(3) comparisons of actual cash receipts and disbursements with projections in prior reports;

`(4)(A) whether the debtor is--

`(i) in compliance in all material respects with postpetition requirements imposed by this title and the Federal Rules of Bankruptcy Procedure; and

`(ii) timely filing tax returns and other required government filings and paying taxes and other administrative expenses when due;

`(B) if the debtor is not in compliance with the requirements referred to in subparagraph (A)(i) or filing tax returns and other required government filings and making the payments referred to in subparagraph (A)(ii), what the failures are and how, at what cost, and when the debtor intends to remedy such failures; and

`(C) such other matters as are in the best interests of the debtor and creditors, and in the public interest in fair and efficient procedures under chapter 11 of this title.'.

(2) CLERICAL AMENDMENT- The table of sections for chapter 3 of title 11, United States Code, is amended by inserting after the item relating to section 307 the following:

`308. Debtor reporting requirements.'.

(b) EFFECTIVE DATE- The amendments made by subsection (a) shall take effect 60 days after the date on which rules are prescribed under section 2075 of title 28, United States Code, to establish forms to be used to comply with section 308 of title 11, United States Code, as added by subsection (a).

SEC. 435. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.

(a) PROPOSAL OF RULES AND FORMS- The Judicial Conference of the United States shall propose in accordance with section 2073 of title 28 of the United States Code amended Federal Rules of Bankruptcy Procedure, and shall prescribe in accordance with rule 9009 of the Federal Rules of Bankruptcy Procedure official bankruptcy forms, directing small business debtors to file periodic financial and other reports containing information, including information relating to--

(1) the debtor's profitability;

(2) the debtor's cash receipts and disbursements; and

(3) whether the debtor is timely filing tax returns and paying taxes and other administrative expenses when due.

(b) PURPOSE- The rules and forms proposed under subsection (a) shall be designed to achieve a practical balance among--

(1) the reasonable needs of the bankruptcy court, the United States trustee, creditors, and other parties in interest for reasonably complete information;

(2) a small business debtor's interest that required reports be easy and inexpensive to complete; and

(3) the interest of all parties that the required reports help such debtor to understand such debtor's financial condition and plan the such debtor's future.

SEC. 436. DUTIES IN SMALL BUSINESS CASES.

(a) DUTIES IN CHAPTER 11 CASES- Subchapter I of chapter 11 of title 11, United States Code, as amended by section 321, is amended by adding at the end the following:

`Sec. 1116. Duties of trustee or debtor in possession in small business cases

`In a small business case, a trustee or the debtor in possession, in addition to the duties provided in this title and as otherwise required by law, shall--

`(1) append to the voluntary petition or, in an involuntary case, file not later than 7 days after the date of the order for relief--

`(A) its most recent balance sheet, statement of operations, cash-flow statement, and Federal income tax return; or

`(B) a statement made under penalty of perjury that no balance sheet, statement of operations, or cash-flow statement has been prepared and no Federal tax return has been filed;

`(2) attend, through its senior management personnel and counsel, meetings scheduled by the court or the United States trustee, including initial debtor interviews, scheduling conferences, and meetings of creditors convened under section 341 unless the court, after notice and a hearing, waives that requirement upon a finding of extraordinary and compelling circumstances;

`(3) timely file all schedules and statements of financial affairs, unless the court, after notice and a hearing, grants an extension, which shall not extend such time period to a date later than 30 days after the date of the order for relief, absent extraordinary and compelling circumstances;

`(4) file all postpetition financial and other reports required by the Federal Rules of Bankruptcy Procedure or by local rule of the district court;

`(5) subject to section 363(c)(2), maintain insurance customary and appropriate to the industry;

`(6)(A) timely file tax returns and other required government filings; and

`(B) subject to section 363(c)(2), timely pay all taxes entitled to administrative expense priority except those being contested by appropriate proceedings being diligently prosecuted; and

`(7) allow the United States trustee, or a designated representative of the United States trustee, to inspect the debtor's business premises, books, and records at reasonable times, after reasonable prior written notice, unless notice is waived by the debtor.'.

(b) CLERICAL AMENDMENT- The table of sections for chapter 11 of title 11, United States Code, as amended by section 321, is amended by inserting after the item relating to section 1115 the following:

`1116. Duties of trustee or debtor in possession in small business cases.'.

SEC. 437. PLAN FILING AND CONFIRMATION DEADLINES.

Section 1121 of title 11, United States Code, is amended by striking subsection (e) and inserting the following:

`(e) In a small business case--

`(1) only the debtor may file a plan until after 180 days after the date of the order for relief, unless that period is--

`(A) extended as provided by this subsection, after notice and a hearing; or

`(B) the court, for cause, orders otherwise;

`(2) the plan and a disclosure statement (if any) shall be filed not later than 300 days after the date of the order for relief; and

`(3) the time periods specified in paragraphs (1) and (2), and the time fixed in section 1129(e) within which the plan shall be confirmed, may be extended only if--

`(A) the debtor, after providing notice to parties in interest (including the United States trustee), demonstrates by a preponderance of the evidence that it is more likely than not that the court will confirm a plan within a reasonable period of time;

`(B) a new deadline is imposed at the time the extension is granted; and

`(C) the order extending time is signed before the existing deadline has expired.'.

SEC. 438. PLAN CONFIRMATION DEADLINE.

Section 1129 of title 11, United States Code, is amended by adding at the end the following:

`(e) In a small business case, the court shall confirm a plan that complies with the applicable provisions of this title and that is filed in accordance with section 1121(e) not later than 45 days after the plan is filed unless the time for confirmation is extended in accordance with section 1121(e)(3).'.

SEC. 439. DUTIES OF THE UNITED STATES TRUSTEE.

Section 586(a) of title 28, United States Code, is amended--

(1) in paragraph (3)--

(A) in subparagraph (G), by striking `and' at the end;

(B) by redesignating subparagraph (H) as subparagraph (I); and

`(H) in small business cases (as defined in section 101 of title 11), performing the additional duties specified in title 11 pertaining to such cases; and';

(2) in paragraph (5), by striking `and' at the end;

(3) in paragraph (6), by striking the period at the end and inserting a semicolon; and

(4) by adding at the end the following:

`(7) in each of such small business cases--

`(A) conduct an initial debtor interview as soon as practicable after the date of the order for relief but before the first meeting scheduled under section 341(a) of title 11, at which time the United States trustee shall--

`(i) begin to investigate the debtor's viability;

`(ii) inquire about the debtor's business plan;

`(iii) explain the debtor's obligations to file monthly operating reports and other required reports;

`(iv) attempt to develop an agreed scheduling order; and

`(v) inform the debtor of other obligations;

`(B) if determined to be appropriate and advisable, visit the appropriate business premises of the debtor, ascertain the state of the debtor's books and records, and verify that the debtor has filed its tax returns; and

`(C) review and monitor diligently the debtor's activities, to identify as promptly as possible whether the debtor will be unable to confirm a plan; and

`(8) in any case in which the United States trustee finds material grounds for any relief under section 1112 of title 11, the United States trustee shall apply promptly after making that finding to the court for relief.'.

Continued on page 3

The Law Office of Carrie M. Wilcox - 2005 BAPCPA

SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANKRUPTCY.

SEC. 226. DEFINITIONS.

SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES.

`Sec. 526. Restrictions on debt relief agencies

SEC. 228. DISCLOSURES.

`Sec. 527. Disclosures

SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES.

`Sec. 528. Requirements for debt relief agencies

SEC. 230. GAO STUDY.

SEC. 231. PROTECTION OF PERSONALLY IDENTIFIABLE INFORMATION.

SEC. 232. CONSUMER PRIVACY OMBUDSMAN.

`Sec. 332. Consumer privacy ombudsman

SEC. 233. PROHIBITION ON DISCLOSURE OF NAME OF MINOR CHILDREN.

`Sec. 112. Prohibition on disclosure of name of minor children

SEC. 234. PROTECTION OF PERSONAL INFORMATION.

TITLE III--DISCOURAGING BANKRUPTCY ABUSE

SEC. 301. TECHNICAL AMENDMENTS.

SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS.

SEC. 303. CURBING ABUSIVE FILINGS.

SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

SEC. 305. RELIEF FROM THE AUTOMATIC STAY WHEN THE DEBTOR DOES NOT COMPLETE INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.

SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

SEC. 307. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.

SEC. 308. REDUCTION OF HOMESTEAD EXEMPTION FOR FRAUD.

SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER 13 CASES.

SEC. 310. LIMITATION ON LUXURY GOODS.

SEC. 311. AUTOMATIC STAY.

SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY DISCHARGES.

SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE DEBTS.

SEC. 315. GIVING CREDITORS FAIR NOTICE IN CHAPTERS 7 AND 13 CASES.

SEC. 316. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR PROVIDE REQUIRED INFORMATION.

SEC. 317. ADEQUATE TIME TO PREPARE FOR HEARING ON CONFIRMATION OF THE PLAN.

SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION IN CERTAIN CASES.

SEC. 319. SENSE OF CONGRESS REGARDING EXPANSION OF RULE 9011 OF THE FEDERAL RULES OF BANKRUPTCY PROCEDURE.

SEC. 320. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.

`Sec. 1115. Property of the estate

SEC. 322. LIMITATIONS ON HOMESTEAD EXEMPTION.

SEC. 323. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICIPANT CONTRIBUTIONS AND OTHER PROPERTY FROM THE ESTATE.

SEC. 324. EXCLUSIVE JURISDICTION IN MATTERS INVOLVING BANKRUPTCY PROFESSIONALS.

SEC. 325. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.

SEC. 326. SHARING OF COMPENSATION.

SEC. 327. FAIR VALUATION OF COLLATERAL.

SEC. 328. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

SEC. 329. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

SEC. 330. DELAY OF DISCHARGE DURING PENDENCY OF CERTAIN PROCEEDINGS.

SEC. 331. LIMITATION ON RETENTION BONUSES, SEVERANCE PAY, AND CERTAIN OTHER PAYMENTS.

SEC. 332. FRAUDULENT INVOLUNTARY BANKRUPTCY.

TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

Subtitle A--General Business Bankruptcy Provisions

SEC. 401. ADEQUATE PROTECTION FOR INVESTORS.

SEC. 402. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

SEC. 403. PROTECTION OF REFINANCE OF SECURITY INTEREST.

SEC. 404. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

SEC. 405. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

SEC. 406. AMENDMENT TO SECTION 546 OF TITLE 11, UNITED STATES CODE.

SEC. 407. AMENDMENTS TO SECTION 330(a) OF TITLE 11, UNITED STATES CODE.

SEC. 408. POSTPETITION DISCLOSURE AND SOLICITATION.

SEC. 409. PREFERENCES.

SEC. 410. VENUE OF CERTAIN PROCEEDINGS.

SEC. 411. PERIOD FOR FILING PLAN UNDER CHAPTER 11.

SEC. 412. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

SEC. 413. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.

SEC. 414. DEFINITION OF DISINTERESTED PERSON.

SEC. 415. FACTORS FOR COMPENSATION OF PROFESSIONAL PERSONS.

SEC. 416. APPOINTMENT OF ELECTED TRUSTEE.

SEC. 417. UTILITY SERVICE.

SEC. 418. BANKRUPTCY FEES.

SEC. 419. MORE COMPLETE INFORMATION REGARDING ASSETS OF THE ESTATE.

Subtitle B--Small Business Bankruptcy Provisions

SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

SEC. 432. DEFINITIONS.

SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.

`Sec. 308. Debtor reporting requirements

SEC. 435. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.

SEC. 436. DUTIES IN SMALL BUSINESS CASES.

`Sec. 1116. Duties of trustee or debtor in possession in small business cases