Text: H.R.3150 — 105th Congress (1997-1998)All Information (Except Text)

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Engrossed Amendment Senate (09/23/1998)

 
[Congressional Bills 105th Congress]
[From the U.S. Government Printing Office]
[H.R. 3150 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                    September 23, 1998.
      Resolved, That the bill from the House of Representatives (H.R. 
3150) entitled ``An Act to amend title 11 of the United States Code, 
and for other purposes.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Consumer 
Bankruptcy Reform Act of 1998''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                    TITLE I--NEEDS-BASED BANKRUPTCY

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.

        TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS

Sec. 201. Allowance of claims or interests.
Sec. 202. Exceptions to discharge.
Sec. 203. Effect of discharge.
Sec. 204. Automatic stay.
Sec. 205. Discharge.
Sec. 206. Discouraging predatory lending practices.
Sec. 207. Enhanced disclosure for credit extensions secured by 
                            dwelling.
Sec. 208. Dual-use debit card.
Sec. 209. Enhanced disclosures under an open end credit plan.
Sec. 210. Violations of the automatic stay.
Sec. 211. Discouraging abusive reaffirmation practices.
Sec. 212. Sense of the Senate regarding the homestead exemption.
Sec. 213. Encouraging creditworthiness.
Sec. 214. Treasury Department study regarding security interests under 
                            an open end credit plan.

  TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE 
                           BANKRUPTCY SYSTEM

Sec. 301. Notice of alternatives.
Sec. 302. Fair treatment of secured creditors under chapter 13.
Sec. 303. Discouragement of bad faith repeat filings.
Sec. 304. Timely filing and confirmation of plans under chapter 13.
Sec. 305. Application of the codebtor stay only when the stay protects 
                            the debtor.
Sec. 306. Improved bankruptcy statistics.
Sec. 307. Audit procedures.
Sec. 308. Creditor representation at first meeting of creditors.
Sec. 309. Fair notice for creditors in chapter 7 and 13 cases.
Sec. 310. Stopping abusive conversions from chapter 13.
Sec. 311. Prompt relief from stay in individual cases.
Sec. 312. Dismissal for failure to timely file schedules or provide 
                            required information.
Sec. 313. Adequate time for preparation for a hearing on confirmation 
                            of the plan.
Sec. 314. Discharge under chapter 13.
Sec. 315. Nondischargeable debts.
Sec. 316. Credit extensions on the eve of bankruptcy presumed 
                            nondischargeable.
Sec. 317. Definition of household goods and antiques.
Sec. 318. Relief from stay when the debtor does not complete intended 
                            surrender of consumer debt collateral.
Sec. 319. Adequate protection of lessors and purchase money secured 
                            creditors.
Sec. 320. Limitation.
Sec. 321. Miscellaneous improvements.
Sec. 322. Bankruptcy judgeships.
Sec. 323. Definition of domestic support obligation.
Sec. 324. Priorities for claims for domestic support obligations.
Sec. 325. Requirements to obtain confirmation and discharge in cases 
                            involving domestic support obligations.
Sec. 326. Exceptions to automatic stay in domestic support obligation 
                            proceedings.
Sec. 327. Nondischargeability of certain debts for alimony, 
                            maintenance, and support.
Sec. 328. Continued liability of property.
Sec. 329. Protection of domestic support claims against preferential 
                            transfer motions.
Sec. 330. Protection of retirement savings in bankruptcy.
Sec. 331. Additional amendments to title 11, United States Code.
Sec. 332. Debt limit increase.
Sec. 333. Elimination of requirement that family farmer and spouse 
                            receive over 50 percent of income from 
                            farming operation in year prior to 
                            bankruptcy.
Sec. 334. Prohibit retroactive assessment of disposable income.
Sec. 335. Amendment to section 1325 of title 11, United States Code.
Sec. 336. Protection of savings earmarked for the postsecondary 
                            education of children.

                    TITLE IV--FINANCIAL INSTRUMENTS

Sec. 401. Bankruptcy Code amendments.
Sec. 402. Recordkeeping requirements.
Sec. 403. Damage measure.
Sec. 404. Asset-backed securitizations.
Sec. 405. Prohibition on certain actions for failure to incur finance 
                            charges.
Sec. 406. Fees arising from certain ownership interests.
Sec. 407. Bankruptcy fees.
Sec. 408. Applicability.

            TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 501. Amendment to add a chapter 6 to title 11, United States Code.
Sec. 502. Amendments to other chapters in title 11, United States Code.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Executory contracts and unexpired leases.
Sec. 602. Expedited appeals of bankruptcy cases to courts of appeals.
Sec. 603. Creditors and equity security holders committees.
Sec. 604. Repeal of sunset provision.
Sec. 605. Cases ancillary to foreign proceedings.
Sec. 606. Limitation.
Sec. 607. Amendment to section 546 of title 11, United States Code.
Sec. 608. Amendment to section 330(a) of title 11, United States Code.

                    TITLE VII--TECHNICAL CORRECTIONS

Sec. 701. Definitions.
Sec. 702. Adjustment of dollar amounts.
Sec. 703. Extension of time.
Sec. 704. Who may be a debtor.
Sec. 705. Penalty for persons who negligently or fraudulently prepare 
                            bankruptcy petitions.
Sec. 706. Limitation on compensation of professional persons.
Sec. 707. Special tax provisions.
Sec. 708. Effect of conversion.
Sec. 709. Automatic stay.
Sec. 710. Amendment to table of sections.
Sec. 711. Allowance of administrative expenses.
Sec. 712. Priorities.
Sec. 713. Exemptions.
Sec. 714. Exceptions to discharge.
Sec. 715. Effect of discharge.
Sec. 716. Protection against discriminatory treatment.
Sec. 717. Property of the estate.
Sec. 718. Preferences.
Sec. 719. Postpetition transactions.
Sec. 720. Technical amendment.
Sec. 721. Disposition of property of the estate.
Sec. 722. General provisions.
Sec. 723. Appointment of elected trustee.
Sec. 724. Abandonment of railroad line.
Sec. 725. Contents of plan.
Sec. 726. Discharge under chapter 12.
Sec. 727. Extensions.
Sec. 728. Bankruptcy cases and proceedings.
Sec. 729. Knowing disregard of bankruptcy law or rule.
Sec. 730. Rolling stock equipment.
Sec. 731. Curbing abusive filings.
Sec. 732. Study of operation of title 11 of the United States Code with 
                            respect to small businesses.
Sec. 733. Transfers made by nonprofit charitable corporations.
Sec. 734. Effective date; application of amendments.

                    TITLE I--NEEDS-BASED BANKRUPTCY

SEC. 101. CONVERSION.

    Section 706(c) of title 11, United States Code, is amended by 
inserting ``or consents to'' after ``requests''.

SEC. 102. DISMISSAL OR CONVERSION.

    (a) In General.--Section 707 of title 11, United States Code, is 
amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 707. Dismissal of a case or conversion to a case under chapter 
              13'';
        and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)''; and
                    (B) in paragraph (1), as redesignated by 
                subparagraph (A) of this paragraph--
                            (i) in the first sentence--
                                    (I) by striking ``but not'' and 
                                inserting ``or'';
                                    (II) by inserting ``, or, with the 
                                debtor's consent, convert such a case 
                                to a case under chapter 13 of this 
                                title,'' after ``consumer debts''; and
                                    (III) by striking ``substantial 
                                abuse'' and inserting ``abuse''; and
                            (ii) by striking the last sentence and 
                        inserting the following:
    ``(2) In considering under paragraph (1) whether the granting of 
relief would be an abuse of the provisions of this chapter, the court 
shall consider whether--
            ``(A) under section 1325(b)(1), on the basis of the current 
        income of the debtor, the debtor could pay an amount greater 
        than or equal to 30 percent of unsecured claims that are not 
        considered to be priority claims (as determined under 
        subchapter I of chapter 5); or
            ``(B) the debtor filed a petition for the relief in bad 
        faith.
    ``(3)(A) If a panel trustee appointed under section 586(a)(1) of 
title 28 brings a motion for dismissal or conversion under this 
subsection and the court grants that motion and finds that the action 
of the counsel for the debtor in filing under this chapter was not 
substantially justified, the court shall order the counsel for the 
debtor to reimburse the trustee for all reasonable costs in prosecuting 
the motion, including reasonable attorneys' fees.
    ``(B) If the court finds that the attorney for the debtor violated 
Rule 9011, at a minimum, the court shall order--
            ``(i) the assessment of an appropriate civil penalty 
        against the counsel for the debtor; and
            ``(ii) the payment of the civil penalty to the panel 
        trustee or the United States trustee.
    ``(C) In the case of a petition referred to in subparagraph (B), 
the signature of an attorney shall constitute a certificate that the 
attorney has--
            ``(i) performed a reasonable investigation into the 
        circumstances that gave rise to the petition; and
            ``(ii) determined that the petition--
                    ``(I) is well grounded in fact; and
                    ``(II) is warranted by existing law or a good faith 
                argument for the extension, modification, or reversal 
                of existing law and does not constitute an abuse under 
                paragraph (1) of this subsection.
    ``(4)(A) Except as provided in subparagraph (B), the court may 
award a debtor all reasonable costs in contesting a motion brought by a 
party in interest (other than a panel trustee or United States trustee) 
under this subsection (including reasonable attorneys' fees) if--
            ``(i) the court does not grant the motion; and
            ``(ii) the court finds that--
                    ``(I) the position of the party that brought the 
                motion was not substantially justified; or
                    ``(II) the party brought the motion solely for the 
                purpose of coercing a debtor into waiving a right 
                guaranteed to the debtor under this title.
    ``(B) A party in interest that has a claim of an aggregate amount 
less than $1,000 shall not be subject to subparagraph (A).
    ``(5) However, only the judge, United States trustee, bankruptcy 
administrator or panel trustee may bring a motion under this section if 
the debtor and the debtor's spouse combined, as of the date of the 
order for relief, have current monthly total income equal to or less 
than the national median household monthly income calculated on a 
monthly basis for a household of equal size. However, for a household 
of more than 4 individuals, the median income shall be that of a 
household of 4 individuals plus $583 for each additional member of that 
household.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 of title 11, United States Code, is amended by striking the 
item relating to section 707 and inserting the following:

``707. Dismissal of a case or conversion to a case under chapter 13.''.

        TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS

SEC. 201. ALLOWANCE OF CLAIMS OR INTERESTS.

    Section 502 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(k)(1) The court may award the debtor reasonable attorneys' fees 
and costs if, after an objection is filed by a debtor, the court--
            ``(A)(i) disallows the claim; or
            ``(ii) reduces the claim by an amount greater than 20 
        percent of the amount of the initial claim filed by a party in 
        interest; and
            ``(B) finds the position of the party filing the claim is 
        not substantially justified.
    ``(2) If the court finds that the position of a claimant under this 
section is not substantially justified, the court may, in addition to 
awarding a debtor reasonable attorneys' fees and costs under paragraph 
(1), award such damages as may be required by the equities of the 
case.''.

SEC. 202. EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, is amended--
            (1) in subsection (a)(2)(A), by striking ``a false 
        representation'' and inserting ``a material false 
        representation upon which the defrauded person justifiably 
        relied''; and
            (2) by striking subsection (d) and inserting the following:
    ``(d)(1) Subject to paragraph (3), if a creditor requests a 
determination of dischargeability of a consumer debt under this section 
and that debt is discharged, the court shall award the debtor 
reasonable attorneys' fees and costs.
    ``(2) In addition to making an award to a debtor under paragraph 
(1), if the court finds that the position of a creditor in a proceeding 
covered under this section is not substantially justified, the court 
may award reasonable attorneys' fees and costs under paragraph (1) and 
such damages as may be required by the equities of the case.
    ``(3)(A) A creditor may not request a determination of 
dischargeability of a consumer debt under subsection (a)(2) if--
            ``(i) before the filing of the petition, the debtor made a 
        good faith effort to negotiate a reasonable alternative 
        repayment schedule (including making an offer of a reasonable 
        alternative repayment schedule); and
            ``(ii) that creditor refused to negotiate an alternative 
        payment schedule, and that refusal was not reasonable.
    ``(B) For purposes of this paragraph, the debtor shall have the 
burden of proof of establishing that--
            ``(i) an offer made by that debtor under subparagraph 
        (A)(i) was reasonable; and
            ``(ii) the refusal to negotiate by the creditor involved to 
        was not reasonable.''.

SEC. 203. EFFECT OF DISCHARGE.

    Section 524 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(i) The willful failure of a creditor to credit payments received 
under a plan confirmed under this title (including a plan of 
reorganization confirmed under chapter 11 of this title) in the manner 
required by the plan (including crediting the amounts required under 
the plan) shall constitute a violation of an injunction under 
subsection (a)(2).
    ``(j) An individual who is injured by the failure of a creditor to 
comply with the requirements for a reaffirmation agreement under 
subsections (c) and (d), or by any willful violation of the injunction 
under subsection (a)(2), shall be entitled to recover--
            ``(1) the greater of--
                    ``(A)(i) the amount of actual damages; multiplied 
                by
                    ``(ii) 3; or
                    ``(B) $5,000; and
            ``(2) costs and attorneys' fees.''.

SEC. 204. AUTOMATIC STAY.

    Section 362(h) of title 11, United States Code, is amended to read 
as follows:
    ``(h)(1) An individual who is injured by any willful violation of a 
stay provided in this section shall be entitled to recover--
            ``(A) actual damages; and
            ``(B) reasonable costs, including attorneys' fees.
    ``(2) In addition to recovering actual damages, costs, and 
attorneys' fees under paragraph (1), an individual described in 
paragraph (1) may recover punitive damages in appropriate 
circumstances.''.

SEC. 205. DISCHARGE.

    Section 727 of title 11, United States Code, is amended--
            (1) in subsection (c), by adding at the end the following:
    ``(3)(A) A creditor may not request a determination of 
dischargeability of a consumer debt under subsection (a) if--
            ``(i) before the filing of the petition, the debtor made a 
        good faith effort to negotiate a reasonable alternative 
        repayment schedule (including making an offer of a reasonable 
        alternative repayment schedule); and
            ``(ii) that creditor refused to negotiate an alternative 
        payment schedule, and that refusal was not reasonable.
    ``(B) For purposes of this paragraph, the debtor shall have the 
burden of proof of establishing that--
            ``(i) an offer made by that debtor under subparagraph 
        (A)(i) was reasonable; and
            ``(ii) the refusal to negotiate by the creditor involved to 
        was not reasonable.''; and
            (2) by adding at the end the following:
    ``(f)(1) The court may award the debtor reasonable attorneys' fees 
and costs in any case in which a creditor files a motion to deny relief 
to a debtor under this section and that motion--
            ``(A) is denied; or
            ``(B) is withdrawn after the debtor has replied.
    ``(2) If the court finds that the position of a party filing a 
motion under this section is not substantially justified, the court may 
assess against the creditor such damages as may be required by the 
equities of the case.''.

SEC. 206. DISCOURAGING PREDATORY LENDING PRACTICES.

    Section 502(b) of title 11, United States Code, is amended--
            (1) in paragraph (8), by striking ``or'' at the end;
            (2) in paragraph (9), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(10) the claim is based on a secured debt if the creditor 
        has failed to comply with the requirements of subsection (a), 
        (b), (c), (d), (e), (f), (g), (h), or (i) of section 129 of the 
        Truth in Lending Act (15 U.S.C. 1639).''.

SEC. 207. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED BY 
              DWELLING.

    (a) Open-End Credit Extensions.--
            (1) Credit applications.--Section 127A(a)(13) of the Truth 
        in Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
                    (A) by striking ``consultation of tax advisor.--A 
                statement that the'' and inserting the following: ``tax 
                deductibility.--A statement that--
                    ``(A) the''; and
                    (B) by striking the period at the end and inserting 
                the following: ``; and
                    ``(B) in any case in which the extension of credit 
                exceeds the fair market value of the dwelling, the 
                interest on the portion of the credit extension that is 
                greater than the fair market value of the dwelling is 
                not tax deductible for Federal income tax purposes.''.
            (2) Credit advertisements.--Section 147(b) of the Truth in 
        Lending Act (15   U.S.C. 1665b(b)) is amended--
                    (A) by striking ``If any'' and inserting the 
                following:
            ``(1) In general.--If any''; and
                    (B) by adding at the end the following:
            ``(2) Credit in excess of fair market value.--Each 
        advertisement described in subsection (a) that relates to an 
        extension of credit that may exceed the fair market value of 
        the dwelling shall include a clear and conspicuous statement 
        that--
                    ``(A) the interest on the portion of the credit 
                extension that is greater than the fair market value of 
                the dwelling is not tax deductible for Federal income 
                tax purposes; and
                    ``(B) the consumer may want to consult a tax 
                advisor for further information regarding the 
                deductibility of interest and charges.''.
    (b) Non-Open End Credit Extensions.--
            (1) Credit applications.--Section 128 of the Truth in 
        Lending Act (15 U.S.C. 1638) is amended--
                    (A) in subsection (a), by adding at the end the 
                following:
            ``(15) In the case of a consumer credit transaction that is 
        secured by the principal dwelling of the consumer, in which the 
        extension of credit may exceed the fair market value of the 
        dwelling, a clear and conspicuous statement that--
                    ``(A) the interest on the portion of the credit 
                extension that is greater than the fair market value of 
                the dwelling is not tax deductible for Federal income 
                tax purposes; and
                    ``(B) the consumer should consult a tax advisor for 
                further information regarding the deductibility of 
                interest and charges.''; and
                    (B) in subsection (b), by adding at the end the 
                following:
    ``(3) In the case of a credit transaction described in paragraph 
(15) of subsection (a), disclosures required by that paragraph shall be 
made to the consumer at the time of application for such extension of 
credit.''.
            (2) Credit advertisements.--Section 144 of the Truth in 
        Lending Act (15 U.S.C. 1664) is amended by adding at the end 
        the following:
    ``(e) Each advertisement to which this section applies that relates 
to a consumer credit transaction that is secured by the principal 
dwelling of a consumer in which the extension of credit may exceed the 
fair market value of the dwelling shall clearly and conspicuously state 
that--
            ``(1) the interest on the portion of the credit extension 
        that is greater than the fair market value of the dwelling is 
        not tax deductible for Federal income tax purposes; and
            ``(2) the consumer may want to consult a tax advisor for 
        further information regarding the deductibility of interest and 
        charges.''.
    (c) Effective Date.--This section shall become effective one year 
after the date of enactment of this Act.

SEC. 208. DUAL-USE DEBIT CARD.

    (a) Consumer Liability.--
            (1) In general.--Section 909 of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693g) is amended--
                    (A) by redesignating subsections (b) through (e) as 
                subsections (d) through (g), respectively;
                    (B) in subsection (a)--
                            (i) by redesignating paragraphs (1) and (2) 
                        as subparagraphs (A) and (B), respectively, and 
                        indenting appropriately;
                            (ii) by inserting ``Cards Necessitating 
                        Unique Identifier.--
            ``(1) In general.--'' after ``(a)'';
                            (iii) by striking ``other means of access 
                        can be identified as the person authorized to 
                        use it, such as by signature, photograph,'' and 
                        inserting ``other means of access can be 
                        identified as the person authorized to use it 
                        by a unique identifier, such as a photograph, 
                        retina scan,''; and
                            (iv) by striking ``Notwithstanding the 
                        foregoing,'' and inserting the following:
            ``(2) Notification.--Notwithstanding paragraph (1),''; and
                    (C) by inserting before subsection (d), as so 
                designated by this section, the following new 
                subsections:
    ``(b) Cards Not Necessitating Unique Identifier.--A consumer shall 
be liable for an unauthorized electronic fund transfer only if--
            ``(1) the liability is not in excess of $50;
            ``(2) the unauthorized electronic fund transfer is 
        initiated by the use of a card that has been properly issued to 
        a consumer other than the person making the unauthorized 
        transfer as a means of access to the account of that consumer 
        for the purpose of initiating an electronic fund transfer;
            ``(3) the unauthorized electronic fund transfer occurs 
        before the card issuer has been notified that an unauthorized 
        use of the card has occurred or may occur as the result of 
        loss, theft, or otherwise; and
            ``(4) such unauthorized electronic fund transfer did not 
        require the use of a code or other unique identifier (other 
        than a signature), such as a photograph, fingerprint, or retina 
        scan.
    ``(c) Notice of Liability and Responsibility To Report Loss of 
Card, Code, or Other Means of Access.--No consumer shall be liable 
under this title for any unauthorized electronic fund transfer unless 
the consumer has received in a timely manner the notice required under 
section 905(a)(1), and any subsequent notice required under section 
905(b) with regard to any change in the information which is the 
subject of the notice required under section 905(a)(1).''.
            (2) Conforming amendment.--Section 905(a)(1) of the 
        Electronic Fund Transfer Act (15 U.S.C. 1693c(a)(1)) is amended 
        to read as follows:
            ``(1) the liability of the consumer for any unauthorized 
        electronic fund transfer and the requirement for promptly 
        reporting any loss, theft, or unauthorized use of a card, code, 
        or other means of access in order to limit the liability of the 
        consumer for any such unauthorized transfer;''.
    (b) Validation Requirement for Dual-Use Debit Cards.--
            (1) In general.--Section 911 of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693i) is amended--
                    (A) by redesignating subsection (c) as subsection 
                (d); and
                    (B) by inserting after subsection (b) the following 
                new subsection:
    ``(c) Validation Requirement.--No person may issue a card described 
in subsection (a), the use of which to initiate an electronic fund 
transfer does not require the use of a code or other unique identifier 
other than a signature (such as a fingerprint or retina scan), unless--
            ``(1) the requirements of paragraphs (1) through (4) of 
        subsection (b) are met; and
            ``(2) the issuer has provided to the consumer a clear and 
        conspicuous disclosure that use of the card may not require the 
        use of such code or other unique identifier.''.
            (2) Technical and conforming amendment.--Section 911(d) of 
        the Electronic Fund Transfer Act (15 U.S.C. 1993i(d)) (as 
        redesignated by subsection (a)(1) of this section) is amended 
        by striking ``For the purpose of subsection (b)'' and inserting 
        ``For purposes of subsections (b) and (c)''.

SEC. 209. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.

    (a) Amendments to the Truth in Lending Act.--
            (1) Enhanced disclosure of repayment terms.--
                    (A) In general.--Section 127(b) of the Truth in 
                Lending Act (15 U.S.C. 1637(b)) is amended by adding at 
                the end the following:
            ``(11)(A) In a clear and conspicuous manner, repayment 
        information that would apply to the outstanding balance of the 
        consumer under the credit plan, including--
                    ``(i) the required minimum monthly payment on that 
                balance, represented as both a dollar figure and a 
                percentage of that balance;
                    ``(ii) the number of months (rounded to the nearest 
                month) that it would take to pay the entire amount of 
                that current balance if the consumer pays only the 
                required minimum monthly payments and if no further 
                advances are made;
                    ``(iii) the total cost to the consumer, including 
                interest and principal payments, of paying that balance 
                in full if the consumer pays only the required minimum 
                monthly payments and if no further advances are made; 
                and
                    ``(iv) the following statement: `If your current 
                rate is a temporary introductory rate, your total costs 
                may be higher.'.
            ``(B) In making the disclosures under subparagraph (A) the 
        creditor shall apply the annual interest rate that applies to 
        that balance with respect to the current billing cycle for that 
        consumer in effect on the date on which the disclosure is 
        made.''.
                    (B) Publication of model forms.--Not later than 180 
                days after the date of enactment of this Act, the Board 
                of Governors of the Federal Reserve System shall 
                publish model disclosure forms in accordance with 
                section 195 of the Truth in Lending Act for the purpose 
                of compliance with section 127(b)(11) of the Truth in 
                Lending Act, as added by this paragraph.
                    (C) Civil liability.--Section 130(a) of the Truth 
                in Lending Act (15 U.S.C. 1640(a)) is amended, in the 
                undesignated paragraph following paragraph (4), by 
                striking the second sentence and inserting the 
                following: ``In connection with the disclosures 
                referred to in subsections (a) and (b) of section 1637 
                of this title, a creditor shall have a liability 
                determined under paragraph (2) only for failing to 
                comply with the requirements of section 1635, 1637(a), 
                or of paragraph (4), (5), (6), (7), (8), (9), (10), or 
                (11) of section 1637(b) or for failing to comply with 
                disclosure requirements under State law for any term or 
                item that the Board has determined to be substantially 
                the same in meaning under section 1610(a)(2) as any of 
                the terms or items referred to in section 1637(a), 
                paragraph (4), (5), (6), (7), (8), (9), (10), or (11) 
                of section 1637(b) of this title.''.
            (2) Disclosures in connection with solicitations.--
                    (A) In general.--Section 127(c)(1)(B) of the Truth 
                in Lending Act (15 U.S.C. 1637(c)(1)(B)) is amended by 
                adding the following:
                            ``(iv) Credit worksheet.--An easily 
                        understandable credit worksheet designed to aid 
                        consumers in determining their ability to 
                        assume more debt, including consideration of 
                        the personal expenses of the consumer and a 
                        simple formula for the consumer to determine 
                        whether the assumption of additional debt is 
                        advisable.
                            ``(v) Basis of preapproval.--In any case in 
                        which the application or solicitation states 
                        that the consumer has been preapproved for an 
                        account under an open end consumer credit plan, 
                        the following statement must appear in a clear 
                        and conspicuous manner: `Your preapproval for 
                        this credit card does not mean that we have 
                        reviewed your individual financial 
                        circumstances. You should review your own 
                        budget before accepting this offer of credit.'.
                            ``(vi) Availability of credit report.--That 
                        the consumer is entitled to a copy of his or 
                        her credit report in accordance with the Fair 
                        Credit Reporting Act.''.
                    (B) Publication of model forms.--Not later than 180 
                days after the date of enactment of this Act, the Board 
                of Governors of the Federal Reserve System shall 
                publish model disclosure forms in accordance with 
                section 195 of the Truth in Lending Act for the purpose 
                of compliance with section 127(c)(1)(B) of the Truth in 
                Lending Act, as amended by this paragraph.
    (b) Effective Date.--The provisions of this section shall become 
effective on January 1, 2001.

SEC. 210. VIOLATIONS OF THE AUTOMATIC STAY.

    (a) Section 362(a) is amended by adding after paragraph (8) the 
following:
            ``(9) any communication threatening a debtor, at any time 
        after the commencement and before the granting of a discharge 
        in a case under this title, an intention to file a motion to 
        determine the dischargeability of a debt, or to file a motion 
        under section 707(b) of title 11, United States Code, to 
        dismiss or convert a case, or to repossess collateral from the 
        debtor to which the stay applies.''.

SEC. 211. DISCOURAGING ABUSIVE REAFFIRMATION PRACTICES.

    Section 524 of title 11, United States Code, is amended--
            (1) in subsection (c)(2)(B) by adding at the end the 
        following:
                    ``(C) such agreement contains a clear and 
                conspicuous statement which advises the debtor what 
                portion of the debt to be reaffirmed is attributable to 
                principal, interest, late fees, creditor's attorneys 
                fees, expenses or other costs relating to the 
                collection of the debt.''.
            (2)(A) in subsection (c)(6)(B), by inserting after ``real 
        property'' the following: ``or is a debt described in 
        subsection (c)(7)''; and
            (B) by adding at the end of subsection (c) the following:
            ``(7) in a case concerning an individual, if the 
        consideration for such agreement is based in whole or in part 
        on an unsecured consumer debt, or is based in whole or in part 
        upon a debt for an item of personalty the value of which at 
        point of purchase was $250 or less, and in which the creditor 
        asserts a purchase money security interest, the court, approves 
        such agreement as--
                    ``(A) in the best interest of the debtor in light 
                of the debtor's income and expenses;
                    ``(B) not imposing an undue hardship on the 
                debtor's future ability of the debtor to pay for the 
                needs of children and other dependents (including court 
                ordered support);
                    ``(C) not requiring the debtor to pay the 
                creditor's attorney's fees, expenses or other costs 
                relating to the collection of the debt;
                    ``(D) not entered into to protect property that is 
                necessary for the care and maintenance of children or 
                other dependents that would have nominal value on 
                repossession;
                    ``(E) not entered into after coercive threats or 
                actions by the creditor in the creditor's course of 
                dealings with the debtor.
                    ``(F) not unfair because excessive in amount based 
                upon the value of the collateral.''.
            (3) in subsection (d)(2) by striking ``subsections (c)(6)'' 
        and inserting ``subsections (c)(6) and (c)(7)'', and after ``of 
        this section,'' by striking ``if the consideration for such 
        agreement is based in whole or in part on a consumer debt that 
        is not secured by real property of the debtor'' and adding at 
        the end: ``as applicable''.

SEC. 212. SENSE OF THE SENATE REGARDING THE HOMESTEAD EXEMPTION.

    (a) Findings.--The Senate finds that--
            (1) one of the most flagrant abuses of the bankruptcy 
        system involves misuse of the homestead exemption, which allows 
        a debtor to exempt his or her home, up to a certain value, as 
        established by State law, from being sold off to satisfy debts;
            (2) while the vast majority of States responsibly cap the 
        exemption at not more than $40,000, 5 States exempt homes 
        regardless of their value;
            (3) in the few States with unlimited homestead exemptions, 
        debtors can shield their assets in luxury homes while 
        legitimate creditors get little or nothing;
            (4) beneficiaries of the homestead exemption include 
        convicted insider traders and savings and loan criminals, while 
        shortchanged creditors include children, spouses, governments, 
        and banks; and
            (5) the homestead exemption should be capped at $100,000 to 
        prevent such high-profile abuses.
    (b)  Sense of the Senate.--It is the sense of the Senate that--
            (1) meaningful bankruptcy reform cannot be achieved without 
        capping the homestead exemption; and
            (2) bankruptcy reform legislation should include a cap of 
        $100,000 on the homestead exemption to the bankruptcy laws.

SEC. 213. ENCOURAGING CREDITWORTHINESS.

    (a) Sense of the Congress.--It is the sense of the Congress that--
            (1) certain lenders may sometimes offer credit to consumers 
        indiscriminately, without taking steps to ensure that consumers 
        are capable of repaying the resulting debt, and in a manner 
        which may encourage certain consumers to accumulate additional 
        debt; and
            (2) resulting consumer debt may increasingly be a major 
        contributing factor to consumer insolvency.
    (b) Study Required.--The Board of Governors of the Federal Reserve 
System (hereafter in this section referred to as the ``Board'') shall 
conduct a study of--
            (1) consumer credit industry practices of soliciting and 
        extending credit--
                    (A) indiscriminately;
                    (B) without taking steps to ensure that consumers 
                are capable of repaying the resulting debt; and
                    (C) in a manner that encourages consumers to 
                accumulate additional debt; and
            (2) the effects of such practices on consumer debt and 
        insolvency.
    (c) Report and Regulations.--Not later than 24 months after the 
date of enactment of this Act, the Board--
            (1) shall make public a report on its findings with respect 
        to the credit industry's indiscriminate solicitation and 
        extension of credit;
            (2) may issue regulations that would require additional 
        disclosures to consumers; and
            (3) may take any other actions, consistent with its 
        existing statutory authority, that the Board finds necessary to 
        ensure responsible industrywide practices and to prevent 
        resulting consumer debt and insolvency.

SEC. 214. TREASURY DEPARTMENT STUDY REGARDING SECURITY INTERESTS UNDER 
              AN OPEN END CREDIT PLAN.

    (a) Study.--Within 180 days of the enactment of this Act, the 
Federal Reserve Board in consultation with the Treasury Department, the 
general credit industry, and consumer groups, shall prepare a study 
regarding the adequacy of information received by consumers regarding 
the creation of security interests under open end credit plans.
    (b) Findings.--This study shall include the Board's findings 
regarding--
            (1) whether consumers understand at the time of purchase of 
        property under an open end credit plan that such property may 
        serve as collateral under that credit plan;
            (2) whether consumers understand at the time of purchase 
        the legal consequences of disposing of property that is 
        purchased under an open end credit plan and is subject to a 
        security interest under that plan; and
            (3) whether creditors holding security interests in 
        property purchased under an open end credit plan use such 
        security interests to coerce reaffirmations of existing debts 
        under section 524 of the United States Bankruptcy Code.
In formulating these findings, the Board shall consider, among other 
factors it deems relevant, prevailing industry practices in this area.
    (c) Disclosure Recommendations.--This study shall also include the 
Board's recommendations regarding the utility and practicality of 
additional disclosures by credit card issuers at the time of purchase 
regarding security interests under open end credit plans, including, 
but not limited to--
            (1) disclosures of the specific property in which the 
        creditor will receive a security interest;
            (2) disclosures of the consequences of nonpayment of the 
        card balance, including how the security interest may be 
        enforced; and
            (3) disclosures of the process by which payments made on 
        the card will be credited with respect to the lien created by 
        the security contract and other debts on the card.
    (d) Submission of Report.--The Board shall submit this report to 
the Senate Committee on the Judiciary, the Senate Committee on Banking, 
Housing, and Urban Affairs, the House Committee on the Judiciary, and 
the House Committee on Banking and Financial Services within the time 
allotted by this section.

  TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE 
                           BANKRUPTCY SYSTEM

SEC. 301. NOTICE OF ALTERNATIVES.

    (a) In General.--Section 342 of title 11, United States Code, is 
amended by striking subsection (b) and inserting the following:
    ``(b) Before the commencement of a case under this title by an 
individual whose debts are primarily consumer debts, that individual 
shall be given or obtain (as required in section 521(a)(1), as part of 
the certification process under subchapter 1 of chapter 5) a written 
notice prescribed by the United States trustee for the district in 
which the petition is filed pursuant to section 586 of title 28. The 
notice shall contain the following:
            ``(1) A brief description of chapters 7, 11, 12, and 13 and 
        the general purpose, benefits, and costs of proceeding under 
        each of those chapters.
            ``(2) A brief description of services that may be available 
        to that individual from a credit counseling service that is 
        approved by the United States trustee or the bankruptcy 
        administrator for that district.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
is amended--
            (1) by inserting ``(a)'' before ``The debtor 
        shall--'';
            (2) by striking paragraph (1) and inserting the following:
            ``(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 applicable, a 
                        certificate--
                                    ``(I) of an attorney whose name is 
                                on the petition as the attorney for the 
                                debtor or any bankruptcy petition 
                                preparer signing the petition pursuant 
                                to section 110(b)(1) indicating that 
                                such attorney or bankruptcy petition 
                                preparer delivered to the debtor any 
                                notice required by section 342(b); or
                                    ``(II) if no attorney for the 
                                debtor is indicated and no bankruptcy 
                                petition preparer signed the petition, 
                                of the debtor that such notice was 
                                obtained and read by the debtor;
                            ``(iv) copies of any Federal tax returns, 
                        including any schedules or attachments, filed 
                        by the debtor for the 3-year period preceding 
                        the order for relief;
                            ``(v) copies of all payment advices or 
                        other evidence of payment, if any, received by 
                        the debtor from any employer of the debtor in 
                        the period 60 days prior to the filing of the 
                        petition;
                            ``(vi) a statement of the amount of 
                        projected monthly net income, itemized to show 
                        how calculated; and
                            ``(vii) a statement disclosing any 
                        reasonably anticipated increase in income or 
                        expenditures over the 12-month period following 
                        the date of filing;''; and
            (3) by adding at the end the following:
    ``(b)(1) At any time, a creditor, in the case of an individual 
under chapter 7 or 13, may file with the court notice that the creditor 
requests the petition, schedules, and a statement of affairs filed by 
the debtor in the case and the court shall make those documents 
available to the creditor who requests those documents.
    ``(2) At any time, a creditor, in a case under chapter 13, may file 
with the court notice that the creditor requests the plan filed by the 
debtor in the case and the court shall make that plan available to the 
creditor who requests that plan.
    ``(c) An individual debtor in a case under chapter 7 or 13 shall 
file with the court--
            ``(1) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, with respect 
        to the period from the commencement of the case until such time 
        as the case is closed;
            ``(2) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, that were not 
        filed with the taxing authority when the schedules under 
        subsection (a)(1) were filed with respect to the period that is 
        3 years before the order for relief;
            ``(3) any amendments to any of the tax returns, including 
        schedules or attachments, described in paragraph (1) or (2); 
        and
            ``(4) in a case under chapter 13, a statement subject to 
        the penalties of perjury by the debtor of the debtor's income 
        and expenditures in the preceding tax year and monthly income, 
        that shows how the amounts are calculated--
                    ``(A) beginning on the date that is the later of 90 
                days after the close of the debtor's tax year or 1 year 
                after the order for relief, unless a plan has been 
                confirmed; and
                    ``(B) thereafter, on or before the date that is 45 
                days before each anniversary of the confirmation of the 
                plan until the case is closed.
    ``(d)(1) A statement referred to in subsection (c)(4) shall 
disclose--
            ``(A) the amount and sources of income of the debtor;
            ``(B) the identity of any persons responsible with the 
        debtor for the support of any dependents of the debtor; and
            ``(C) the identity of any persons 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 paragraph (1) shall be available to the 
United States trustee, any bankruptcy administrator, any trustee, and 
any party in interest for inspection and copying, subject to the 
requirements of subsection (e).
    ``(e)(1) Not later than 30 days after the date of enactment of the 
Consumer Bankruptcy Reform Act of 1998, 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 1 year after the date of enactment of the 
Consumer Bankruptcy Reform Act of 1998, the Director of the 
Administrative Office of the United States Courts shall prepare, and 
submit to Congress a report that--
            ``(A) assesses the effectiveness of the procedures under 
        paragraph (1); and
            ``(B) if appropriate, includes proposed legislation--
                    ``(i) to further protect the confidentiality of tax 
                information; and
                    ``(ii) to provide penalties for the improper use by 
                any person of the tax information required to be 
                provided under this section.
    ``(f) If requested by the United States trustee or a trustee 
serving in the case, the debtor provide 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 and such other 
personal identifying information relating to the debtor that 
establishes the identity of the debtor.''.
    (c) Title 28.--Section 586(a) of title 28, United States Code, is 
amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) on or before January 1 of each calendar year, and 
        also not later than 30 days after any change in the nonprofit 
        debt counseling services registered with the bankruptcy court, 
        prescribe and make available on request the notice described in 
        section 342(b)(3) of title 11 for each district included in the 
        region.''.

SEC. 302. FAIR TREATMENT OF SECURED CREDITORS UNDER CHAPTER 13.

    (a) Restoring the Foundation for Secured Credit.--Section 1325(a) 
of title 11, United States Code, is amended--
            (1) in paragraph (5), by striking the matter preceding 
        subparagraph (A) and inserting the following:
            ``(5) with respect to an allowed claim provided for by the 
        plan that is secured under applicable nonbankruptcy law by 
        reason of a lien on property in which the estate has an 
        interest or is subject to a setoff under section 553--''; and
            (2) by adding at the end of the subsection the following 
        flush sentence:
``For purposes of paragraph (5), section 506 shall not apply to a claim 
described in that paragraph.''.
    (b) Payment of Holders of Claims Secured by Liens.--Section 
1325(a)(5)(B)(i) of title 11, United States Code, is amended to read as 
follows:
                    ``(B)(i) the plan provides that the holder of such 
                claim retain the lien securing such claim until the 
                debt that is the subject of the claim is fully paid 
                for, as provided under the plan; and''.
    (c) Determination of Secured Status.--Section 506 of title 11, 
United States Code, is amended by adding at the end the following:
    ``(e) Subsection (a) shall not apply to an allowed claim to the 
extent attributable in whole or in part to the purchase price of 
personal property acquired by the debtor during the 90-day period 
preceding the date of filing of the petition.''.

SEC. 303. DISCOURAGEMENT OF BAD FAITH REPEAT FILINGS.

    Section 362(c) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' before ``Except as'';
            (2) by striking ``(1) the stay'' and inserting ``(A) the 
        stay'';
            (3) by striking ``(2) the stay'' and inserting ``(B) the 
        stay'';
            (4) by striking ``(A) the time'' and inserting ``(i) the 
        time'';
            (5) by striking ``(B) the time'' and inserting ``(ii) the 
        time''; and
            (6) by adding at the end the following:
    ``(2) Except as provided in subsections (d) through (f), 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 if--
            ``(A) a single or joint case is filed by or against an 
        individual debtor under chapter 7, 11, or 13; and
            ``(B) a single or joint case of that debtor (other than a 
        case refiled under a chapter other than chapter 7 after 
        dismissal under section 707(b)) was pending during the 
        preceding year but was dismissed.
    ``(3) If a party in interest so requests, the court may extend the 
stay in a particular case with respect to 1 or more creditors (subject 
to such conditions or limitations as the court may impose) after 
providing notice and a hearing completed before the expiration of the 
30-day period described in paragraph (2) only if the party in interest 
demonstrates that the filing of the later case is in good faith with 
respect to the creditors to be stayed.
    ``(4) A case shall be presumed to have not been filed in good faith 
(except that such presumption may be rebutted by clear and convincing 
evidence to the contrary)--
            ``(A) with respect to the creditors involved, if--
                    ``(i) more than 1 previous case under any of 
                chapters 7, 11, or 13 in which the individual was a 
                debtor was pending during the 1-year period described 
                in paragraph (1);
                    ``(ii) a previous case under any of chapters 7, 11, 
                or 13 in which the individual was a debtor was 
                dismissed within the period specified in paragraph (2) 
                after--
                            ``(I) the debtor, after having received 
                        from the court a request to do so, failed to 
                        file or amend the petition or other documents 
                        as required by this title; or
                            ``(II) the debtor, without substantial 
                        excuse, failed to perform the terms of a plan 
                        that was confirmed by the court; or
                    ``(iii)(I) during the period commencing with the 
                dismissal of the next most previous case under chapter 
                7, 11, or 13 there has not been a substantial change in 
                the financial or personal affairs of the debtor;
                    ``(II) if the case is a chapter 7 case, there is no 
                other reason to conclude that the later case will be 
                concluded with a discharge; or
                    ``(III) if the case is a chapter 11 or 13 case, 
                there is not a confirmed plan that will be fully 
                performed; and
            ``(B) with respect to any creditor that commenced an action 
        under subsection (d) in a previous case in which the individual 
        was a debtor, if, as of the date of dismissal of that case, 
        that action was still pending or had been resolved by 
        terminating, conditioning, or limiting the stay with respect to 
        actions of that creditor.
    ``(5)(A) If a request is made for relief from the stay under 
subsection (a) with respect to real or personal property of any kind, 
and the request is granted in whole or in part, the court may, in 
addition to making any other order under this subsection, order that 
the relief so granted shall be in rem either--
            ``(i) for a definite period of not less than 1 year; or
            ``(ii) indefinitely.
    ``(B)(i) After an order is issued under subparagraph (A), the stay 
under subsection (a) shall not apply to any property subject to such an 
in rem order in any case of the debtor.
    ``(ii) If an in rem order issued under subparagraph (A) so 
provides, the stay shall, in addition to being inapplicable to the 
debtor involved, not apply with respect to an entity under this title 
if--
            ``(I) the entity had reason to know of the order at the 
        time that the entity obtained an interest in the property 
        affected; or
            ``(II) the entity was notified of the commencement of the 
        proceeding for relief from the stay, and at the time of the 
        notification, no case in which the entity was a debtor was 
        pending.
    ``(6) For purposes of this section, a case is pending during the 
period beginning with the issuance of the order for relief and ending 
at such time as the case involved is closed.''.

SEC. 304. TIMELY FILING AND CONFIRMATION OF PLANS UNDER CHAPTER 13.

    (a) Filing of Plan.--Section 1321 of title 11, United States Code, 
is amended to read as follows:
``Sec. 1321. Filing of plan
    ``The debtor shall file a plan not later than 90 days after the 
order for relief under this chapter, except that the court may extend 
such period if the need for an extension is attributable to 
circumstances for which the debtor should not justly be held 
accountable.''.
    (b) Confirmation of Hearing.--Section 1324 of title 11, United 
States Code, is amended by adding at the end the following: ``That 
hearing shall be held not later than 45 days after the filing of the 
plan, unless the court, after providing notice and a hearing, orders 
otherwise.''.

SEC. 305. APPLICATION OF THE CODEBTOR STAY ONLY WHEN THE STAY PROTECTS 
              THE DEBTOR.

    Section 1301(b) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2)(A) Notwithstanding subsection (c) and except as provided in 
subparagraph (B), in any case in which the debtor did not receive the 
consideration for the claim held by a creditor, the stay provided by 
subsection (a) shall apply to that creditor for a period not to exceed 
30 days beginning on the date of the order for relief, to the extent 
the creditor proceeds against--
            ``(i) the individual that received that consideration; or
            ``(ii) property not in the possession of the debtor that 
        secures that claim.
    ``(B) Notwithstanding subparagraph (A), the stay provided by 
subsection (a) shall apply in any case in which the debtor is primarily 
obligated to pay the creditor in whole or in part with respect to a 
claim described in subparagraph (A) under a legally binding separation 
or property settlement agreement or divorce or dissolution decree with 
respect to--
            ``(i) an individual described in subparagraph (A)(i); or
            ``(ii) property described in subparagraph (A)(ii).
    ``(3) Notwithstanding subsection (c), the stay provided by 
subsection (a) shall terminate as of the date of confirmation of the 
plan, in any case in which the plan of the debtor provides that the 
debtor's interest in personal property subject to a lease with respect 
to which the debtor is the lessee will be surrendered or abandoned or 
no payments will be made under the plan on account of the debtor's 
obligations under the lease.''.

SEC. 306. IMPROVED BANKRUPTCY STATISTICS.

    (a) Amendment.--Chapter 6 of part I of title 28, United States 
Code, is amended by adding at the end the following:
``Sec. 159. Bankruptcy statistics
    ``(a) The clerk of each district shall compile statistics regarding 
individual debtors with primarily consumer debts seeking relief under 
chapters 7, 11, and 13 of title 11. Those statistics shall be in a form 
prescribed by the Director of the Administrative Office of the United 
States Courts (referred to in this section as the `Office').
    ``(b) The Director shall--
            ``(1) compile the statistics referred to in subsection (a);
            ``(2) make the statistics available to the public; and
            ``(3) not later than October 31, 1998, and annually 
        thereafter, prepare, and submit to Congress a report concerning 
        the information collected under subsection (a) that contains an 
        analysis of the information.
    ``(c) The compilation required under subsection (b) shall--
            ``(1) be itemized, by chapter, with respect to title 11;
            ``(2) be presented in the aggregate and for each district; 
        and
            ``(3) include information concerning--
                    ``(A) the total assets and total liabilities of the 
                debtors described in subsection (a), and in each 
                category of assets and liabilities, as reported in the 
                schedules prescribed pursuant to section 2075 of this 
                title and filed by those debtors;
                    ``(B) the current total monthly income, projected 
                monthly net income, and average income and average 
                expenses of those debtors as reported on the schedules 
                and statements that each such debtor files under 
                sections 111, 521, and 1322 of title 11;
                    ``(C) the aggregate amount of debt discharged in 
                the reporting period, determined as the difference 
                between the total amount of debt and obligations of a 
                debtor reported on the schedules and the amount of such 
                debt reported in categories which are predominantly 
                nondischargeable;
                    ``(D) the average period of time between the filing 
                of the petition and the closing of the case;
                    ``(E) for the reporting period--
                            ``(i) the number of cases in which a 
                        reaffirmation was filed; and
                            ``(ii)(I) the total number of 
                        reaffirmations filed;
                            ``(II) of those cases in which a 
                        reaffirmation was filed, the number in which 
                        the debtor was not represented by an attorney; 
                        and
                            ``(III) of those cases, the number of cases 
                        in which the reaffirmation was approved by the 
                        court;
                    ``(F) with respect to cases filed under chapter 13 
                of title 11, for the reporting period--
                            ``(i)(I) the number of cases in which a 
                        final order was entered determining the value 
                        of property securing a claim in an amount less 
                        than the amount of the claim; and
                            ``(II) the number of final orders 
                        determining the value of property securing a 
                        claim issued;
                            ``(ii) the number of cases dismissed for 
                        failure to make payments under the plan; and
                            ``(iii) the number of cases in which the 
                        debtor filed another case within the 6 years 
                        previous to the filing; and
                    ``(G) the extent of creditor misconduct and any 
                amount of punitive damages awarded by the court for 
                creditor misconduct.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 6 of title 28, United States Code, is amended by adding at the 
end the following:

``159. Bankruptcy statistics.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

SEC. 307. AUDIT PROCEDURES.

    (a) Amendments.--Section 586 of title 28, United States Code, is 
amended--
            (1) in subsection (a), as amended by section 301 of this 
        Act, by striking paragraph (6) and inserting the following:
            ``(6) make such reports as the Attorney General directs, 
        including the results of audits performed under subsection (f); 
        and''; and
            (2) by adding at the end the following:
    ``(f)(1)(A) The Attorney General shall establish procedures to 
determine the accuracy and completeness of petitions, schedules, and 
other information which the debtor is required to provide under 
sections 521 and 1322 of title 11, and, if applicable, section 111 of 
title 11, in individual cases filed under chapter 7 or 13 of such 
title.
    ``(B) Those procedures shall--
            ``(i) establish a method of selecting appropriate qualified 
        persons to contract to perform those audits;
            ``(ii) establish a method of randomly selecting cases to be 
        audited, except that not less than 1 out of every 500 cases in 
        each Federal judicial district shall be selected for audit;
            ``(iii) require audits for schedules of income and expenses 
        which reflect greater than average variances from the 
        statistical norm of the district in which the schedules were 
        filed; and
            ``(iv) establish procedures for providing, not less 
        frequently than annually, public information concerning the 
        aggregate results of such audits including the percentage of 
        cases, by district, in which a material misstatement of income 
        or expenditures is reported.
    ``(2) The United States trustee for each district is authorized to 
contract with auditors to perform audits in cases designated by the 
United States trustee according to the procedures established under 
paragraph (1).
    ``(3)(A) The report of each audit conducted under this subsection 
shall be filed with the court and transmitted to the United States 
trustee. Each report shall clearly and conspicuously specify any 
material misstatement of income or expenditures or of assets identified 
by the person performing the audit. In any case where a material 
misstatement of income or expenditures or of assets has been reported, 
the clerk of the bankruptcy court shall give notice of the misstatement 
to the creditors in the case.
    ``(B) If a material misstatement of income or expenditures or of 
assets is reported the United States trustee shall--
                            ``(i) report the material misstatement, if 
                        appropriate, to the United States Attorney 
                        pursuant to section 3057 of title 18, United 
                        States Code; and
                            ``(ii) if advisable, take appropriate 
                        action, including but not limited to commencing 
                        an adversary proceeding to revoke the debtor's 
                        discharge pursuant to section 727(d) of title 
                        11, United States Code.''.
    (b) Amendments to Section 521 of Title 11, U.S.C.--Section 521 of 
title 11, United States Code, is amended in paragraphs (3) and (4) by 
adding ``or an auditor appointed pursuant to section 586 of title 28, 
United States Code'' after ``serving in the case''.
    (c) Amendments to Section 727 of Title 11, U.S.C.--Section 727(d) 
of title 11, United States Code, is amended--
            (1) by deleting ``or'' at the end of paragraph (2);
            (2) by substituting ``; or'' for the period at the end of 
        paragraph (3); and
            (3) adding the following at the end of paragraph (3)--
            ``(4) the debtor has failed to explain satisfactorily--
                    ``(A) a material misstatement in an audit performed 
                pursuant to section 586(f) of title 28, United States 
                Code; or
                    ``(B) a failure to make available for inspection 
                all necessary accounts, papers, documents, financial 
                records, files and all other papers, things, or 
                property belonging to the debtor that are requested for 
                an audit conducted pursuant to section 586(f) of title 
                28, United States Code.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

SEC. 308. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.

    Section 341(c) of title 11, United States Code, is amended by 
inserting after the first sentence the following: ``Notwithstanding any 
local court rule, provision of a State constitution, any other Federal 
or State law that is not a bankruptcy law, or 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 one 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. 309. FAIR NOTICE FOR CREDITORS IN CHAPTER 7 AND 13 CASES.

    Section 342 of title 11, United States Code, is amended--
            (1) in subsection (c), by striking ``, but the failure of 
        such notice to contain such information shall not invalidate 
        the legal effect of such notice''; and
            (2) by adding at the end the following:
    ``(d)(1) If the credit agreement between the debtor and the 
creditor or the last communication before the filing of the petition in 
a voluntary case from the creditor to a debtor who is an individual 
states an account number of the debtor that is the current account 
number of the debtor with respect to any debt held by the creditor 
against the debtor, the debtor shall include that account number in any 
notice to the creditor required to be given under this title.
    ``(2) If the creditor has specified to the debtor, in the last 
communication before the filing of the petition, an address at which 
the creditor wishes to receive correspondence regarding the debtor's 
account, any notice to the creditor required to be given by the debtor 
under this title shall be given at such address.
    ``(3) For purposes of this section, the term `notice' shall 
include--
            ``(A) any correspondence from the debtor to the creditor 
        after the commencement of the case;
            ``(B) any statement of the debtor's intention under section 
        521(a)(2);
            ``(C) notice of the commencement of any proceeding in the 
        case to which the creditor is a party; and
            ``(D) any notice of a hearing under section 1324.
    ``(e)(1) At any time, a creditor, in a case of an individual under 
chapter 7 or 13, may file with the court and serve on the debtor a 
notice of the address to be used to notify the creditor in that case.
    ``(2) If the court or the debtor is required to give the creditor 
notice, not later than 5 days after receipt of the notice under 
paragraph (1), that notice shall be given at that address.
    ``(f) An entity may file with the court a notice stating its 
address for notice in cases under chapter 7 or 13. After the date that 
is 30 days following the filing of that notice, any notice in any case 
filed under chapter 7 or 13 given by the court shall be to that address 
unless specific notice is given under subsection (e) with respect to a 
particular case.
    ``(g)(1) Notice given to a creditor other than as provided in this 
section shall not be effective notice until that notice has been 
brought to the attention of the creditor.
    ``(2) If the creditor has designated a person or department to be 
responsible for receiving notices concerning bankruptcy cases and has 
established reasonable procedures so that bankruptcy notices received 
by the creditor will be delivered to that department or person, notice 
shall not be brought to the attention of the creditor until that notice 
is received by that person or department.''.

SEC. 310. 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 chapter 11 or 12 but not in a case 
                converted to 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, the 
        claim of any creditor holding security as of the date of the 
        petition shall continue to be secured by that security unless 
        the full amount of that claim determined under applicable 
        nonbankruptcy law has been paid in full as of the date of 
        conversion, notwithstanding any valuation or determination of 
        the amount of an allowed secured claim made for the purposes of 
        the chapter 13 proceeding.''.

SEC. 311. 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 the case of an individual 
filing under chapter 7, 11, or 13, 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) that 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.''.

SEC. 312. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR PROVIDE 
              REQUIRED INFORMATION.

    Section 707 of title 11, United States Code, as amended by section 
102 of this Act, is amended by adding at the end the following:
    ``(c)(1) Notwithstanding subsection (a), and subject to paragraph 
(2), if an individual debtor in a voluntary case under chapter 7 or 13 
fails to file all of the information required under section 521(a)(1) 
within 45 days after the filing of the petition commencing the case, 
the case shall be automatically dismissed effective on the 46th day 
after the filing of the petition.
    ``(2) With respect to a case described in paragraph (1), any party 
in interest may request the court to enter an order dismissing the 
case. The court shall, if so requested, enter an order of dismissal not 
later than 5 days after that request.
    ``(3) Upon request of the debtor made within 45 days after the 
filing of the petition commencing a case described in paragraph (1), 
the court may allow the debtor an additional period of not to exceed 50 
days to file the information required under section 521(a)(1) if the 
court finds justification for extending the period for the filing.''.

SEC. 313. ADEQUATE TIME FOR PREPARATION FOR A HEARING ON CONFIRMATION 
              OF THE PLAN.

    Section 1324 of title 11, United States Code, as amended by section 
304 of this Act, 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) If not later than 5 days after receiving notice of a hearing 
on confirmation of the plan, a creditor objects to the confirmation of 
the plan, the hearing on confirmation of the plan may be held no 
earlier than 20 days after the first meeting of creditors under section 
341(a).''.

SEC. 314. 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), (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. NONDISCHARGEABLE DEBTS.

    Section 523(a) of title 11, United States Code, is amended by 
inserting after paragraph (14) the following:
            ``(14A) incurred to pay a debt that is nondischargeable by 
        reason of section 727, 1141, 1228 (a) or (b), or 1328(b), or 
        any other provision of this subsection, where the debtor 
        incurred the debt to pay such a nondischargeable debt with the 
        intent to discharge in bankruptcy the newly-created debt.''.

SEC. 316. CREDIT EXTENSIONS ON THE EVE OF BANKRUPTCY PRESUMED 
              NONDISCHARGEABLE.

    Section 523(a)(2) of title 11, United States Code, as amended by 
section 202 of this Act, is amended--
            (1) in subparagraph (A), by striking the semicolon at the 
        end and inserting the following: ``(and, for purposes of this 
        subparagraph, consumer debts owed in an aggregate amount 
        greater than or equal to $400 incurred for goods or services 
        not reasonably necessary for the maintenance or support of the 
        debtor or a dependent child of the debtor to a single creditor 
        that are incurred during the 90-day period preceding the date 
        of the order for relief shall be presumed to be 
        nondischargeable under this subparagraph); or'';
            (2) in subparagraph (B), by striking ``or'' at the end; and
            (3) by striking subparagraph (C).

SEC. 317. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

    Not later than 180 days after the date of enactment of this Act, 
the Federal Trade Commission shall promulgate regulations defining 
``household goods'' under section 522(c)(3) in a manner suitable and 
appropriate for cases under title 11 of the United States Code. If new 
regulations are not effective within 180 days of enactment of this Act, 
then ``household goods'' under section 522(c)(3) shall have the meaning 
given that term in section 444.1(i) of title 16, of the Code of Federal 
Regulations, except that the term shall also include any tangible 
personal property reasonably necessary for the maintenance or support 
of a dependent child.

SEC. 318. RELIEF FROM STAY WHEN THE DEBTOR DOES NOT COMPLETE INTENDED 
              SURRENDER OF CONSUMER DEBT COLLATERAL.

    (a) Automatic Stay.--Section 362 of title 11, United States Code, 
as amended by section 303, is amended--
            (1) in subsection (c)(1), in the matter preceding 
        subparagraph (A), by striking ``(e) and (f)'' and inserting 
        ``(e), (f), and (h)'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following:
    ``(h) In an individual case under chapter 7, 11, or 13 the stay 
provided by subsection (a) is terminated with respect to property of 
the estate securing in whole or in part a claim that is in an amount 
greater than $3,000, or subject to an unexpired lease with a remaining 
term of at least 1 year (in any case in which the debtor owes at least 
$3,000 for a 1-year period), if within 30 days after the expiration of 
the applicable period under section 521(a)(2)--
            ``(1)(A) the debtor fails to timely file a statement of 
        intention to surrender or retain the property; or
            ``(B) if the debtor indicates in the filing that the debtor 
        will retain the property, the debtor fails to meet an 
        applicable requirement to--
                    ``(i) either--
                            ``(I) redeem the property pursuant to 
                        section 722; or
                            ``(II) reaffirm the debt the property 
                        secures pursuant to section 524(c); or
                    ``(ii) assume the unexpired lease pursuant to 
                section 365(d) if the trustee does not do so; or
            ``(2) the debtor fails to timely take the action specified 
        in a statement of intention referred to in paragraph (1)(A) (as 
        amended, if that statement is amended before expiration of the 
        period for taking action), unless--
                    ``(A) the statement of intention specifies 
                reaffirmation; and
                    ``(B) the creditor refuses to reaffirm the debt on 
                the original contract terms for the debt.''.
    (b) Debtor's Duties.--Section 521(a)(2) of title 11, United States 
Code, as redesignated by section 301(b) of this Act, is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``consumer'';
            (2) in subparagraph (B)--
                    (A) by striking ``forty-five days after the filing 
                of a notice of intent under this section'' and 
                inserting ``30 days after the first meeting of 
                creditors under section 341(a)''; and
                    (B) by striking ``forty-five-day period'' and 
                inserting ``30-day period''; and
            (3) in subparagraph (C), by inserting ``, except as 
        provided in section 362(h)'' before the semicolon.

SEC. 319. ADEQUATE PROTECTION OF LESSORS AND PURCHASE MONEY SECURED 
              CREDITORS.

    (a) In General.--Chapter 13 of title 11, United States Code, is 
amended by adding after section 1307 the following:
``Sec. 1307A. Adequate protection in chapter 13 cases
    ``(a)(1)(A) On or before the date that is 30 days after the filing 
of a case under this chapter, the debtor shall make cash payments in an 
amount determined under paragraph (2)(A), to--
            ``(i) any lessor of personal property; and
            ``(ii) any creditor holding a claim secured by personal 
        property to the extent that the claim is attributable to the 
        purchase of that property by the debtor.
    ``(B) The debtor or the plan shall continue making the adequate 
protection payments until the earlier of the date on which--
            ``(i) the creditor begins to receive actual payments under 
        the plan; or
            ``(ii) the debtor relinquishes possession of the property 
        referred to in subparagraph (A) to--
                    ``(I) the lessor or creditor; or
                    ``(II) any third party acting under claim of right, 
                as applicable.
    ``(2) The payments referred to in paragraph (1)(A) shall be 
determined by the court.
    ``(b)(1) Subject to the limitations under paragraph (2), the court 
may, after notice and hearing, change the amount and timing of the 
dates of payment of payments made under subsection (a).
    ``(2)(A) The payments referred to in paragraph (1) shall be payable 
not less frequently than monthly.
    ``(B) The amount of a payment referred to in paragraph (1) shall 
not be less than the reasonable depreciation of the personal property 
described in subsection (a)(1), determined on a month-to-month basis.
    ``(c) Notwithstanding section 1326(b), the payments referred to in 
subsection (a)(1)(A) shall be continued in addition to plan payments 
under a confirmed plan until actual payments to the creditor begin 
under that plan, if the confirmed plan provides--
            ``(1) for payments to a creditor or lessor described in 
        subsection (a)(1); and
            ``(2) for the deferral of payments to such creditor or 
        lessor under the plan until the payment of amounts described in 
        section 1326(b).
    ``(d) Notwithstanding sections 362, 542, and 543, a lessor or 
creditor described in subsection (a) may retain possession of property 
described in that subsection that was obtained in accordance with 
applicable law before the date of filing of the petition until the 
first payment under subsection (a)(1)(A) is received by the lessor or 
creditor.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 13 of title 11, United States Code, is amended by inserting 
after the item relating to section 1307 the following:

``1307A. Adequate protection in chapter 13 cases.''.

SEC. 320. LIMITATION.

    Section 522 of title 11, United States Code, as amended by section 
207(a), is amended--
            (1) in subsection (b)(3)(A), by inserting ``subject to 
        subsection (n),'' before ``any property''; and
            (2) by adding at the end the following new subsection:
    ``(n)(1) Except as provided in paragraph (2), 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 exceeds 
in the aggregate $100,000 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; or
            ``(C) a burial plot for the debtor or a dependent of the 
        debtor.
    ``(2) The limitation under paragraph (1) shall not apply to an 
exemption claimed under subsection (b)(2)(A) by a family farmer for the 
principal residence of that farmer.''.

SEC. 321. MISCELLANEOUS IMPROVEMENTS.

    (a) Who May Be a Debtor.--Section 109 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(h)(1) Subject to paragraphs (2) and (3) and notwithstanding any 
other provision of this section, an individual may not be a debtor 
under this title unless that individual has, during the 90-day period 
preceding the date of filing of the petition of that individual, 
received credit counseling, including, at a minimum, participation in 
an individual or group briefing that outlined the opportunities for 
available credit counseling and assisted that individual in performing 
an initial budget analysis, through a credit counseling program 
(offered through an approved credit counseling service described in 
section 111(a)) that has been approved by--
            ``(A) the United States trustee; or
            ``(B) the bankruptcy administrator for the district in 
        which the petition is filed.''.
    ``(2)(A) Paragraph (1) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of the bankruptcy court of that district determines that 
the approved credit counseling services for that district are not 
reasonably able to provide adequate services to the additional 
individuals who would otherwise seek credit counseling from those 
programs by reason of the requirements of paragraph (1).
    ``(B) Each United States trustee or bankruptcy administrator that 
makes a determination described in subparagraph (A) shall review that 
determination not later than one year after the date of that 
determination, and not less frequently than every year thereafter.
    ``(3)(A) Subject to subparagraph (B), the requirements of paragraph 
(1) shall not apply with respect to a debtor who submits to the court a 
certification that--
            ``(i) describes exigent circumstances that merit a waiver 
        of the requirements of paragraph (1);
            ``(ii) states that the debtor requested credit counseling 
        services from an approved credit counseling service, but was 
        unable to obtain the services referred to in paragraph (1) 
        during the 5-day period beginning on the date on which the 
        debtor made that request; and
            ``(iii) is satisfactory to the court.
    ``(B) With respect to a debtor, an exemption under subparagraph (A) 
shall cease to apply to that debtor on the date on which the debtor 
meets the requirements of paragraph (1), but in no case may the 
exemption apply to that debtor after the date that is 30 days after the 
debtor files a petition.''.
    (b) Chapter 7 Discharge.--Section 727(a) of title 11, United States 
Code, is amended--
            (1) in paragraph (9), by striking ``or'' at the end;
            (2) in paragraph (10), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(11) after the filing of the petition, the debtor failed 
        to complete an instructional course concerning personal 
        financial management described in section 111 that was 
        administered or approved by--
                    ``(A) the United States trustee; or
                    ``(B) the bankruptcy administrator for the district 
                in which the petition is filed.''.
    (c) Chapter 13 Discharge.--Section 1328 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(f) The court shall not grant a discharge under this section to a 
debtor, unless after filing a petition the debtor has completed an 
instructional course concerning personal financial management described 
in section 111 that was administered or approved by--
            ``(1) the United States trustee; or
            ``(2) the bankruptcy administrator for the district in 
        which the petition is filed.''.
    (d) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by sections 301(b) and 318(b) of this Act, is amended by 
adding at the end the following:
    ``(e) In addition to the requirements under subsection (a), an 
individual debtor shall file with the court--
            ``(1) a certificate from the credit counseling service that 
        provided the debtor services under section 109(h); and
            ``(2) a copy of the debt repayment plan, if any, developed 
        under section 109(h) through the credit counseling service 
        referred to in paragraph (1).''.
    (e) Exceptions to Discharge.--Section 523(d) of title 11, United 
States Code, as amended by section 202 of this Act, is amended by 
striking paragraph (3)(A)(i) and inserting the following:
            ``(i) within the applicable period of time prescribed under 
        section 109(h), the debtor received credit counseling through a 
        credit counseling program in accordance with section 109(h); 
        and''.
    (f) General Provisions.--
            (1) In general.--Chapter 1 of title 11, United States Code, 
        is amended by adding at the end the following:
``Sec. 111. Credit counseling services; financial management 
              instructional courses
    ``(a) The clerk of each district shall maintain a list of credit 
counseling services that provide 1 or more programs described in 
section 109(h) and that have been approved by--
            ``(1) the United States trustee; or
            ``(2) the bankruptcy administrator for the district.
    ``(b) The United States trustee or each bankruptcy administrator 
referred to in subsection (a)(1) shall--
            ``(1) make available to debtors who are individuals an 
        instructional course concerning personal financial management, 
        under the direction of the bankruptcy court; and
            ``(2) maintain a list of instructional courses concerning 
        personal financial management that are operated by a private 
        entity and that have been approved by the United States trustee 
        or that bankruptcy administrator.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1 of title 11, United States Code, is 
        amended by adding at the end the following:

``111. Credit counseling services; financial management instructional 
                            courses.''.
    (g) Definitions.--Section 101 of title 11, United States Code, as 
amended by section 317 of this Act, is amended--
            (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 co-
                operative unit;''; and
            (2) by inserting after paragraph (27A), as added by section 
        318 of this Act, the following:
            ``(27B) `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 estate 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. 322. BANKRUPTCY JUDGESHIPS.

    (a) Short Title.--This section may be cited as the ``Bankruptcy 
Judgeship Act of 1998''.
    (b) Temporary Judgeships.--
            (1) Appointments.--The following judgeship positions shall 
        be filled in the manner prescribed in section 152(a)(1) of 
        title 28, United States Code, for the appointment of bankruptcy 
        judges provided for in section 152(a)(2) of such title:
                    (A) One additional bankruptcy judgeship for the 
                eastern district of California.
                    (B) Four additional bankruptcy judgeships for the 
                central district of California.
                    (C) One additional bankruptcy judgeship for the 
                southern district of Florida.
                    (D) Two additional bankruptcy judgeships for the 
                district of Maryland.
                    (E) One additional bankruptcy judgeship for the 
                eastern district of Michigan.
                    (F) One additional bankruptcy judgeship for the 
                southern district of Mississippi.
                    (G) One additional bankruptcy judgeship for the 
                district of New Jersey.
                    (H) One additional bankruptcy judgeship for the 
                eastern district of New York.
                    (I) One additional bankruptcy judgeship for the 
                northern district of New York.
                    (J) One additional bankruptcy judgeship for the 
                southern district of New York.
                    (K) One additional bankruptcy judgeship for the 
                eastern district of Pennsylvania.
                    (L) One additional bankruptcy judgeship for the 
                middle district of Pennsylvania.
                    (M) One additional bankruptcy judgeship for the 
                western district of Tennessee.
                    (N) One additional bankruptcy judgeship for the 
                eastern district of Virginia.
            (2) Vacancies.--The first vacancy occurring in the office 
        of a bankruptcy judge in each of the judicial districts set 
        forth in paragraph (1) that--
                    (A) results from the death, retirement, 
                resignation, or removal of a bankruptcy judge; and
                    (B) occurs 5 years or more after the appointment 
                date of a bankruptcy judge appointed under paragraph 
                (1);
        shall not be filled.
    (c) Extensions.--
            (1) In general.--The temporary bankruptcy judgeship 
        positions authorized for the northern district of Alabama, the 
        district of Delaware, the district of Puerto Rico, the district 
        of South Carolina, and the eastern district of Tennessee under 
        section 3(a) (1), (3), (7), (8), and (9) of the Bankruptcy 
        Judgeship Act of 1992 (28 U.S.C. 152 note) are extended until 
        the first vacancy occurring in the office of a bankruptcy judge 
        in the applicable district resulting from the death, 
        retirement, resignation, or removal of a bankruptcy judge and 
        occurring--
                    (A) 8 years or more after November 8, 1993, with 
                respect to the northern district of Alabama;
                    (B) 10 years or more after October 28, 1993, with 
                respect to the district of Delaware;
                    (C) 8 years or more after August 29, 1994, with 
                respect to the district of Puerto Rico;
                    (D) 8 years or more after June 27, 1994, with 
                respect to the district of South Carolina; and
                    (E) 8 years or more after November 23, 1993, with 
                respect to the eastern district of Tennessee.
            (2) Applicability of other provisions.--All other 
        provisions of section 3 of the Bankruptcy Judgeship Act of 1992 
        remain applicable to such temporary judgeship position.
    (d) Technical Amendment.--The first sentence of section 152(a)(1) 
of title 28, United States Code, is amended to read as follows: ``Each 
bankruptcy judge to be appointed for a judicial district as provided in 
paragraph (2) shall be appointed by the United States court of appeals 
for the circuit in which such district is located.''.
    (e) Travel Expenses of Bankruptcy Judges.--Section 156 of title 28, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(g)(1) In this subsection, the term `travel expenses'--
            ``(A) means the expenses incurred by a bankruptcy judge for 
        travel that is not directly related to any case assigned to 
        such bankruptcy judge; and
            ``(B) shall not include the travel expenses of a bankruptcy 
        judge if--
                    ``(i) the payment for the travel expenses is paid 
                by such bankruptcy judge from the personal funds of 
                such bankruptcy judge; and
                    ``(ii) such bankruptcy judge does not receive funds 
                (including reimbursement) from the United States or any 
                other person or entity for the payment of such travel 
                expenses.
    ``(2) Each bankruptcy judge shall annually submit the information 
required under paragraph (3) to the chief bankruptcy judge for the 
district in which the bankruptcy judge is assigned.
    ``(3)(A) Each chief bankruptcy judge shall submit an annual report 
to the Director of the Administrative Office of the United States 
Courts on the travel expenses of each bankruptcy judge assigned to the 
applicable district (including the travel expenses of the chief 
bankruptcy judge of such district).
    ``(B) The annual report under this paragraph shall include--
            ``(i) the travel expenses of each bankruptcy judge, with 
        the name of the bankruptcy judge to whom the travel expenses 
        apply;
            ``(ii) a description of the subject matter and purpose of 
        the travel relating to each travel expense identified under 
        clause (i), with the name of the bankruptcy judge to whom the 
        travel applies; and
            ``(iii) the number of days of each travel described under 
        clause (ii), with the name of the bankruptcy judge to whom the 
        travel applies.
    ``(4)(A) The Director of the Administrative Office of the United 
States Courts shall--
            ``(i) consolidate the reports submitted under paragraph (3) 
        into a single report; and
            ``(ii) annually submit such consolidated report to 
        Congress.
    ``(B) The consolidated report submitted under this paragraph shall 
include the specific information required under paragraph (3)(B), 
including the name of each bankruptcy judge with respect to clauses 
(i), (ii), and (iii) of paragraph (3)(B).''.

SEC. 323. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

    Section 101 of title 11, United States Code, as amended by section 
321(g) of this Act, is amended--
            (1) by striking paragraph (12A); and
            (2) by inserting after paragraph (14) the following:
            ``(14A) `domestic support obligation' means a debt that 
        accrues before or after the entry of an order for relief under 
        this title that is--
                    ``(A) owed to or recoverable by--
                            ``(i) a spouse, former spouse, or child of 
                        the debtor or that child's legal guardian; or
                            ``(ii) a governmental unit;
                    ``(B) in the nature of alimony, maintenance, or 
                support (including assistance provided by a govermental 
                unit) of such spouse, former spouse, or child, without 
                regard to whether such debt is expressly so designated;
                    ``(C) established or subject to establishment 
                before or after entry of an order for relief under this 
                title, by reason of applicable provisions of--
                            ``(i) a separation agreement, divorce 
                        decree, or property settlement agreement;
                            ``(ii) an order of a court of record; or
                            ``(iii) a determination made in accordance 
                        with applicable nonbankruptcy law by a 
                        governmental unit; and
                    ``(D) not assigned to a nongovernmental entity, 
                unless that obligation is assigned voluntarily by the 
                spouse, former spouse, child, or parent solely for the 
                purpose of collecting the debt.''.

SEC. 324. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT OBLIGATIONS.

    Section 507(a) of title 11, United States Code, is amended--
            (1) by striking paragraph (7);
            (2) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
            (3) in paragraph (2), as redesignated, by striking 
        ``First'' and inserting ``Second'';
            (4) in paragraph (3), as redesignated, by striking 
        ``Second'' and inserting ``Third'';
            (5) in paragraph (4), as redesignated, by striking 
        ``Third'' and inserting ``Fourth'';
            (6) in paragraph (5), as redesignated, by striking 
        ``Fourth'' and inserting ``Fifth'';
            (7) in paragraph (6), as redesignated, by striking 
        ``Fifth'' and inserting ``Sixth'';
            (8) in paragraph (7), as redesignated, by striking 
        ``Sixth'' and inserting ``Seventh''; and
            (9) by inserting before paragraph (2), as redesignated, the 
        following:
    ``(1) First, allowed claims for domestic support obligations to be 
paid in the following order on the condition that funds received under 
this paragraph by a governmental unit in a case under this title be 
applied:
            ``(A) Claims that, as of the date of entry of the order for 
        relief, are owed directly to a spouse, former spouse, or child 
        of the debtor, or the parent of such child, without regard to 
        whether the claim is filed by the spouse, former spouse, child, 
        or parent, or is filed by a governmental unit on behalf of that 
        person.
            ``(B) Claims that, as of the date of entry of the order for 
        relief, are assigned by a spouse, former spouse, child of the 
        debtor, or the parent of that child to a governmental unit or 
        are owed directly to a governmental unit under applicable 
        nonbankruptcy law.''.

SEC. 325. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE IN CASES 
              INVOLVING DOMESTIC SUPPORT OBLIGATIONS.

    Title 11, United States Code, is amended--
            (1) in section 1129(a), by adding at the end the following:
            ``(14) If the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order or statute for such obligation that become payable after 
        the date on which the petition is filed.'';
            (2) in section 1325(a)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) if the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order for such obligation that become payable after the date on 
        which the petition is filed.''; and
            (3) in section 1328(a), as amended by section 314 of this 
        Act, in the matter preceding paragraph (1), by inserting ``, 
        and with respect to a debtor who is required by a judicial or 
        administrative order to pay a domestic support obligation, 
        certifies that all amounts payable under such order or statute 
        that are due on or before the date of the certification 
        (including amounts due before or after the petition was filed) 
        have been paid'' after ``completion by the debtor of all 
        payments under the plan''.

SEC. 326. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
              PROCEEDINGS.

    Section 362(b) of title 11, United States Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) under subsection (a)--
                    ``(A) of the commencement or continuation of an 
                action or proceeding for--
                            ``(i) the establishment of paternity as a 
                        part of an effort to collect domestic support 
                        obligations; or
                            ``(ii) the establishment or modification of 
                        an order for domestic support obligations; or
                    ``(B) the collection of a domestic support 
                obligation from property that is not property of the 
                estate;'';
            (2) in paragraph (17), by striking ``or'' at the end;
            (3) in paragraph (18), by striking the period at the end 
        and inserting a semicolon; and
            (4) by adding at the end the following:
            ``(19) under subsection (a) with respect to the withholding 
        of income pursuant to an order as specified in section 466(b) 
        of the Social Security Act (42 U.S.C. 666(b)); or
            ``(20) under subsection (a) with respect to--
                    ``(A) the withholding, suspension, or restriction 
                of drivers' licenses, professional and occupational 
                licenses, and recreational licenses pursuant to State 
                law, as specified in section 466(a)(16) of the Social 
                Security Act (42 U.S.C. 666(a)(16)) or with respect to 
                the reporting of overdue support owed by an absent 
                parent to any consumer reporting agency as specified in 
                section 466(a)(7) of the Social Security Act (42 U.S.C. 
                666(a)(7));
                    ``(B) the interception of tax refunds, as specified 
                in sections 464 and 466(a)(3) of the Social Security 
                Act (42 U.S.C. 664 and 666(a)(3)); or
                    ``(C) the enforcement of medical obligations as 
                specified under title IV of the Social Security Act (42 
                U.S.C. 601 et seq.).''.

SEC. 327. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
              MAINTENANCE, AND SUPPORT.

    Section 523 of title 11, United States Code, as amended by section 
202 of this Act, is amended--
            (1) in subsection (a), by striking paragraph (5) and 
        inserting the following:
            ``(5) for a domestic support obligation;'';
            (2) in subsection (c), by striking ``(6), or (15)'' and 
        inserting ``or (6)''; and
            (3) in paragraph (15), by striking ``governmental unit'' 
        and all through the end of the paragraph and inserting a 
        semicolon.

SEC. 328. CONTINUED LIABILITY OF PROPERTY.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (c), by striking paragraph (1) and 
        inserting the following:
            ``(1) a debt of a kind specified in paragraph (1) or (5) of 
        section 523(a) (in which case, notwithstanding any provision of 
        applicable nonbankruptcy law to the contrary, such property 
        shall be liable for a debt of a kind specified in section 
        523(a)(5);''; and
            (2) in subsection (f)(1)(A), by striking the dash and all 
        that follows through the end of the subparagraph and inserting 
        ``of a kind that is specified in section 523(a)(5); or''.

SEC. 329. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST PREFERENTIAL 
              TRANSFER MOTIONS.

    Section 547(c)(7) of title 11, United States Code, is amended to 
read as follows:
            ``(7) to the extent such transfer was a bona fide payment 
        of a debt for a domestic support obligation; or''.

SEC. 330. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

    (a) In General.--Section 522 of title 11, United States Code, is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) by striking ``(2)(A) any property'' and 
                        inserting:
    ``(3) Property listed in this paragraph is--
            ``(A) any property'';
                            (ii) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
            ``(C) retirement funds to the extent that those funds are 
        in a fund or account that is exempt from taxation under section 
        401, 403, 408, 408A, 414, 457, or 501(a) of the Internal 
        Revenue Code of 1986 and which has not been pledged or promised 
        to any person in connection with any extension of credit.'';
                    (B) by striking paragraph (1) and inserting:
    ``(2) Property listed in this paragraph is property that is 
specified under subsection (d) of this section, unless the State law 
that is applicable to the debtor under paragraph (3)(A) of this 
subsection specifically does not so authorize.'';
                    (C) in the matter preceding paragraph (2)--
                            (i) by striking ``(b)'' and inserting 
                        ``(b)(1)'';
                            (ii) by striking ``paragraph (2)'' both 
                        places it appears and inserting ``paragraph 
                        (3)'';
                            (iii) by striking ``paragraph (1)'' each 
                        place it appears and inserting ``paragraph 
                        (2)''; and
                            (iv) by striking ``Such property is--''; 
                        and
                    (D) by adding at the end of the subsection the 
                following:
    ``(4) For purposes of paragraph (3)(C), the following shall apply:
            ``(A) If the retirement funds are in a retirement fund that 
        has received a favorable determination pursuant to section 7805 
        of the Internal Revenue Code of 1986, and that determination is 
        in effect as of the date of the commencement of the case under 
        section 301, 302, or 303, those funds shall be presumed to be 
        exempt from the estate.
            ``(B) If the retirement funds are in a retirement fund that 
        has not received a favorable determination pursuant to such 
        section 7805, those funds are exempt from the estate if the 
        debtor demonstrates that--
                    ``(i) no prior determination to the contrary has 
                been made by a court or the Internal Revenue Service; 
                and
                    ``(ii)(I) the retirement fund is in substantial 
                compliance with the applicable requirements of the 
                Internal Revenue Code of 1986; or
                    ``(II) the retirement fund fails to be in 
                substantial compliance with such applicable 
                requirements, the debtor is not materially responsible 
                for that failure.
            ``(C) A direct transfer of retirement funds from 1 fund or 
        account that is exempt from taxation under section 401, 403, 
        408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 
        1986, pursuant to section 401(a)(31) of the Internal Revenue 
        Code of 1986, or otherwise, shall not cease to qualify for 
        exemption under paragraph (3)(C) by reason of that direct 
        transfer.
            ``(D)(i) Any distribution that qualifies as an eligible 
        rollover distribution within the meaning of section 402(c) of 
        the Internal Revenue Code of 1986 or that is described in 
        clause (ii) shall not cease to qualify for exemption under 
        paragraph (3)(C) by reason of that distribution.
            ``(ii) A distribution described in this clause is an amount 
        that--
                    ``(I) has been distributed from a fund or account 
                that is exempt from taxation under section 401, 403, 
                408, 408A, 414, 457, or 501(a) of the Internal Revenue 
                Code of 1986; and
                    ``(II) to the extent allowed by law, is deposited 
                in such a fund or account not later than 60 days after 
                the distribution of that amount.''; and
            (2) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subsection (b)(1)'' and inserting 
                ``subsection (b)(2)''; and
                    (B) by adding at the end the following:
    ``(12) Retirement funds to the extent that those funds are in a 
fund or account that is exempt from taxation under section 401, 403, 
408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, is amended--
            (1) in paragraph (17), by striking ``or'' at the end;
            (2) in paragraph (18), by striking the period and inserting 
        ``; or'';
            (3) by inserting after paragraph (18) the following:
            ``(19) under subsection (a), of withholding of income from 
        a debtor's wages and collection of amounts withheld, pursuant 
        to the debtor's agreement authorizing that withholding and 
        collection for the benefit of a pension, profit-sharing, stock 
        bonus, or other plan established under section 401, 403, 408, 
        408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 
        that is sponsored by the employer of the debtor, or an 
        affiliate, successor, or predecessor of such employer--
                    ``(A) to the extent that the amounts withheld and 
                collected are used solely for payments relating to a 
                loan from a plan that satisfies the requirements of 
                section 408(b)(1) of the Employee Retirement Income 
                Security Act of 1974 (29 U.S.C. 1108(b)(1)); or
                    ``(B) in the case of a loan from a thrift savings 
                plan described in subchapter III of title 5, that 
                satisfies the requirements of section 8433(g) of that 
                title.''; and
            (4) by adding at the end of the flush material following 
        paragraph (19) the following: ``Paragraph (19) does not apply 
        to any amount owed to a plan referred to in that paragraph that 
        is incurred under a loan made during the 1-year period 
        preceding the filing of a petition. Nothing in paragraph (19) 
        may be construed to provide that any loan made under a 
        governmental plan under section 414(d) of the Internal Revenue 
        Code of 1986 constitutes a claim or a debt under this title.''.
    (c) Exceptions To Discharge.--Section 523(a) of title 11, United 
States Code, as amended by section 202, is amended--
            (1) by striking ``or'' at the end of paragraph (17);
            (2) by striking the period at the end of paragraph (18) and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(19) owed to a pension, profit-sharing, stock bonus, or 
        other plan established under section 401, 403, 408, 408A, 414, 
        457, or 501(c) of the Internal Revenue Code of 1986, pursuant 
        to--
                    ``(A) a loan permitted under section 408(b)(1) of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1108(b)(1)); or
                    ``(B) a loan from the thrift savings plan described 
                in subchapter III of title 5, that satisfies the 
                requirements of section 8433(g) of that title.
Paragraph (19) does not apply to any amount owed to a plan referred to 
in that paragraph that is incurred under a loan made during the 1-year 
period preceding the filing of a petition. Nothing in paragraph (19) 
may be construed to provide that any loan made under a governmental 
plan under section 414(d) of the Internal Revenue Code of 1986 
constitutes a claim or a debt under this title.''.
    (d) Plan Contents.--Section 1322 of title 11, United States Code, 
is amended by adding at the end the following:
    ``(f) A plan may not materially alter the terms of a loan described 
in section 362(b)(19).''.

SEC. 331. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.

    (a) Section 507(a) of title 11, United States Code, is amended by 
inserting after paragraph (9) the following:
            ``(10) Tenth, allowed claims for death or personal injuries 
        resulting from the operation of a motor vehicle or vessel if 
        such operation was unlawful because the debtor was intoxicated 
        from using alcohol, a drug or another substance.''.
    (b) Section 523(a)(9) of title 11, United States Code, is amended 
by inserting ``or vessel'' after ``vehicle''.

SEC. 332. DEBT LIMIT INCREASE.

    Section 104(b) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(4) The dollar amount in section 101(18) shall be adjusted at the 
same times and in the same manner as the dollar amounts in paragraph 
(1) of this subsection, beginning with the adjustment to be made on 
April 1, 2001.''.

SEC. 333. ELIMINATION OF REQUIREMENT THAT FAMILY FARMER AND SPOUSE 
              RECEIVE OVER 50 PERCENT OF INCOME FROM FARMING OPERATION 
              IN YEAR PRIOR TO BANKRUPTCY.

    Section 101(18)(A) of title 11, United States Code, is amended by 
striking ``the taxable year preceding the taxable year'' and inserting 
``at least one of the three calendar years preceding the year''.

SEC. 334. PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE INCOME.

    (a) Section 1225(b) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(3) If the plan provides for specific amounts of property to be 
distributed on account of allowed unsecured claims as required by 
paragraph (1)(B) of this subsection, those amounts equal or exceed the 
debtor's projected disposable income for that period, and the plan 
meets the requirements for confirmation other than those of this 
subsection, the plan shall be confirmed.
    (b) Section 1229 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(d)(1) A modification of the plan under this section may not 
increase the amount of payments that were due prior to the date of the 
order modifying the plan.
    ``(2) A modification of the plan under this section to increase 
payments based on an increase in the debtor's disposable income may not 
require payments to unsecured creditors in any particular month greater 
than the debtor's disposable income for that month unless the debtor 
proposes such a modification.
    ``(3) A modification of the plan in the last year of the plan shall 
not require payments that would leave the debtor with insufficient 
funds to carry on the farming operation after the plan is completed 
unless the debtor proposes such a modification.''.

SEC. 335. AMENDMENT TO SECTION 1325 OF TITLE 11, UNITED STATES CODE.

    Section 1325(b)(2) of title 11, United States Code, is amended by 
inserting after ``received by the debtor'', ``(other than child support 
payments, foster care payments, or disability payments for a dependent 
child made in accordance with applicable nonbankruptcy law and which is 
reasonably necessary to be expended)''.

SEC. 336. PROTECTION OF SAVINGS EARMARKED FOR THE POSTSECONDARY 
              EDUCATION OF CHILDREN

    Section 541(b) of title 11, United States Code, as amended by 
section 404 of this Act, is amended--
            (1) in paragraph (6), by striking the period at the end and 
        inserting a semicolon; and
            (2) by inserting after paragraph (6) the following:
            ``(7) except as otherwise provided under applicable State 
        law, any funds placed in a qualified State tuition program (as 
        described in section 529(b) of the Internal Revenue Code of 
        1986) at least 180 days before the date of entry of the order 
        for relief; or
            ``(8) any funds placed in an education individual 
        retirement account (as defined in section 530(b)(1) of the 
        Internal Revenue Code of 1986) at least 180 days before the 
        date of entry of the order for relief.''.

                    TITLE IV--FINANCIAL INSTRUMENTS

SEC. 401. BANKRUPTCY CODE AMENDMENTS.

    (a) Definitions of Swap Agreement, Securities Contract, Forward 
Contract, Commodity Contract, and Repurchase Agreement.--Title 11, 
United States Code, is amended--
            (1) in section 101--
                    (A) in paragraph (25)--
                            (i) by striking ``means a contract'' and 
                        inserting ``means--
                    ``(A) a contract'';
                            (ii) by striking ``, or any combination 
                        thereof or option thereon;'' and inserting ``, 
                        or any other similar agreement;''; and
                            (iii) by adding at the end the following 
                        new subparagraphs:
                    ``(B) any combination of agreements or transactions 
                referred to in subparagraphs (A) and (C);
                    ``(C) any option to enter into any agreement or 
                transaction referred to in subparagraph (A) or (B);
                    ``(D) a master agreement that provides for an 
                agreement or transaction referred to in subparagraph 
                (A), (B) or (C), together with all supplements to any 
                such master agreement, without regard to whether the 
                master agreement provides for an agreement or 
                transaction that is not a forward contract under this 
                paragraph, except that the master agreement shall be 
                considered to be a forward contract under this 
                paragraph only with respect to each agreement or 
                transaction under the master agreement that is referred 
                to in subparagraph (A), (B) or (C); or
                    ``(E) a security agreement or arrangement or other 
                credit enhancement related to any agreement or 
                transaction referred to in subparagraph (A), (B), (C) 
                or (D);'';
                    (B) by amending paragraph (47) to read as follows:
            ``(47) the term `repurchase agreement' (which definition 
        also applies to a reverse repurchase agreement)--
                    ``(A) means--
                            ``(i) an agreement, including related 
                        terms, which provides for the transfer of 1 or 
                        more certificates of deposit, mortgage-related 
                        securities (as such term is defined in the 
                        Securities Exchange Act of 1934), mortgage 
                        loans, interests in mortgage-related securities 
                        or mortgage loans, eligible bankers' 
                        acceptances, qualified foreign government 
                        securities or securities that are direct 
                        obligations of, or that are fully guaranteed as 
                        to principal and interest by, the United States 
                        or any agency of the United States against the 
                        transfer of funds by the transferee of such 
                        certificates of deposit, eligible bankers' 
                        acceptances, securities, loans or interests 
                        with a simultaneous agreement by such 
                        transferee to transfer to the transferor 
                        thereof certificates of deposit, eligible 
                        bankers' acceptances, securities, loans, or 
                        interests as described above, at a date certain 
                        not later than 1 year after such transfers or 
                        on demand, against the transfer of funds; or 
                        any other similar agreement; and
                            ``(ii) any combination of agreements or 
                        transactions referred to in clauses (i) and 
                        (iii);
                            ``(iii) any option to enter into any 
                        agreement or transaction referred to in clause 
                        (i) or (ii);
                            ``(iv) a master agreement that provides for 
                        an agreement or transaction referred to in 
                        clauses (i), (ii) or (iii), together with all 
                        supplements, without regard to whether the 
                        master agreement provides for an agreement or 
                        transaction that is not a repurchase agreement 
                        under this subparagraph, except that the master 
                        agreement shall be considered to be a 
                        repurchase agreement under this subparagraph 
                        only with respect to each agreement or 
                        transaction under the master agreement that is 
                        referred to in clause (i), (ii) or (iii); or
                            ``(v) a security agreement or arrangement 
                        or other credit enhancement related to any 
                        agreement or transaction referred to in clauses 
                        (i), (ii), (iii) or (iv); and
                    ``(B) does not include any repurchase obligation 
                under a participation in a commercial mortgage loan,
        and, for purposes of this paragraph, the term `qualified 
        foreign government security' means a security that is a direct 
        obligation of, or that is fully guaranteed by, the central 
        government of a member of the Organization for Economic 
        Cooperation and Development.''; and
                    (C) by amending paragraph (53B) to read as follows:
            ``(53B) the term `swap agreement'--
                    ``(A) means--
                            ``(i) any agreement, including the terms 
                        and conditions incorporated by reference in any 
                        such agreement, which is an interest rate swap, 
                        option, future, or forward agreement, including 
                        a rate floor, rate cap, rate collar, cross-
                        currency rate swap, and basis swap; a spot, 
                        same day-tomorrow, tomorrow-next, forward, or 
                        other foreign exchange or precious metals 
                        agreement; a currency swap, option, future, or 
                        forward agreement; an equity index or equity 
                        swap, option, future, or forward agreement; a 
                        debt index or debt swap, option, future, or 
                        forward agreement; a credit spread or credit 
                        swap, option, future, or forward agreement; a 
                        commodity index or commodity swap, option, 
                        future, or forward agreement;
                            ``(ii) any agreement similar to any other 
                        agreement or transaction referred to in this 
                        subparagraph that--
                                    ``(I) is presently, or in the 
                                future becomes, regularly entered into 
                                in the swap agreement market (including 
                                terms and conditions incorporated by 
                                reference therein); and
                                    ``(II) is a forward, swap, future, 
                                or option on 1 or more rates, 
                                currencies, commodities, equity 
                                securities or other equity instruments, 
                                debt securities or other debt 
                                instruments, or economic indices or 
                                measures of economic risk or value;
                            ``(iii) any combination of agreements or 
                        transactions referred to in this subparagraph;
                            ``(iv) any option to enter into any 
                        agreement or transaction referred to in this 
                        subparagraph;
                            ``(v) a master agreement that provides for 
                        an agreement or transaction referred to in 
                        clause (i), (ii), (iii), or (iv), together with 
                        all supplements to any such master agreement, 
                        without regard to whether the master agreement 
                        contains an agreement or transaction that is 
                        described in any of such clause, except that 
                        the master agreement shall be considered to be 
                        a swap agreement only with respect to each 
                        agreement or transaction under the master 
                        agreement that is referred to in clause (i), 
                        (ii), (iii), or (iv); or
                    ``(C) is applicable for purposes of this title only 
                and shall not be construed or applied to challenge or 
                affect the characterization, definition, or treatment 
                of any swap agreement or any instrument defined as a 
                swap agreement herein, under any other statute, 
                regulation, or rule, including the Securities Act of 
                1933, the Securities Exchange Act of 1934, the Public 
                Utility Holding Company Act of 1935, the Trust 
                Indenture Act of 1939, the Investment Company Act of 
                1940, the Investment Advisers Act of 1940, the 
                Securities Investor Protection Act of 1970, the 
                Commodity Exchange Act, and the regulations prescribed 
                by the Securities and Exchange Commission or the 
                Commodity Futures Trading Commission.'';
            (2) by amending section 741(7) to read as follows:
            ``(7) the term `securities contract'--
                    ``(A) means--
                            ``(i) a contract for the purchase, sale, or 
                        loan of a security, a certificate of deposit, a 
                        mortgage loan or any interest in a mortgage 
                        loan, or a group or index of securities, 
                        certificates of deposit, or mortgage loans or 
                        interests therein (including any interest 
                        therein or based on the value thereof) or 
                        option on any of the foregoing, including any 
                        option to purchase or sell any such security, 
                        certificate of deposit, loan, interest, group 
                        or index or option;
                            ``(ii) any option entered into on a 
                        national securities exchange relating to 
                        foreign currencies;
                            ``(iii) the guarantee by or to any 
                        securities clearing agency of any settlement of 
                        cash, securities, certificates of deposit, 
                        mortgage loans or interest therein, or group or 
                        index of securities, certificates of deposit, 
                        or mortgage loans or interests therein 
                        (including any interest therein or based on the 
                        value thereof) or option on any of the 
                        foregoing, including any option to purchase or 
                        sell any such security, certificate of deposit, 
                        loan, interest, group or index or option;
                            ``(iv) any margin loan;
                            ``(v) any other agreement or transaction 
                        that is similar to any agreement or transaction 
                        referred to in this subparagraph;
                            ``(vi) any combination of the agreements or 
                        transactions referred to in this subparagraph;
                            ``(vii) any option to enter into any 
                        agreement or transaction referred to in this 
                        subparagraph;
                            ``(viii) a master agreement that provides 
                        for an agreement or transaction referred to in 
                        clause (i), (ii), (iii), (iv), (v), (vi), or 
                        (vii), together with all supplements to any 
                        such master agreement, without regard to 
                        whether the master agreement provides for an 
                        agreement or transaction that is not a 
                        securities contract under this subparagraph, 
                        except that the master agreement shall be 
                        considered to be a securities contract under 
                        this subparagraph only with respect to each 
                        agreement or transaction under the master 
                        agreement that is referred to in clause (i), 
                        (ii), (iii), (iv), (v), (vi), or (vii); and
                            ``(ix) any security agreement or 
                        arrangement or other credit enhancement related 
                        to any agreement or transaction referred to in 
                        this subparagraph; and
                    ``(B) does not include any purchase, sale, or 
                repurchase obligation under a participation in or 
                servicing agreement for a commercial mortgage loan.''; 
                and
            (3) in section 761(4)--
                    (A) by striking ``or'' at the end of subparagraph 
                (D); and
                    (B) by adding at the end the following new 
                subparagraphs:
                    ``(F) any other agreement or transaction that is 
                similar to any agreement or transaction referred to in 
                this paragraph;
                    ``(G) any combination of the agreements or 
                transactions referred to in this paragraph;
                    ``(H) any option to enter into any agreement or 
                transaction referred to in this paragraph;
                    ``(I) a master agreement that provides for an 
                agreement or transaction referred to in subparagraph 
                (A), (B), (C), (D), (E), (F), (G) or (H), together with 
                all supplements to any such master agreement, without 
                regard to whether the master agreement provides for an 
                agreement or transaction that is not a commodity 
                contract under this paragraph, except that the master 
                agreement shall be considered to be a commodity 
                contract under this paragraph only with respect to each 
                agreement or transaction under the master agreement 
                that is referred to in subparagraph (A), (B), (C), (D), 
                (E), (F), (G) or (H); or
                    ``(J) a security agreement or arrangement or other 
                credit enhancement related to any agreement or 
                transaction referred to in this paragraph;''.
    (b) Definitions of Financial Institution, Financial Participant, 
and Forward Contract Merchant.--Section 101 of title 11, United States 
Code, is amended--
            (1) by amending paragraph (22) to read as follows:
            ``(22) the term `financial institution' means a Federal 
        reserve bank, or a person that is a commercial or savings bank, 
        industrial savings bank, savings and loan association, trust 
        company, or receiver or conservator for such person and, when 
        any such Federal reserve bank, receiver, or conservator or 
        person acting as agent or custodian for a customer in 
        connection with a securities contract, as defined in section 
        741(7) of this title, such customer;'';
            (2) by inserting after paragraph (22) the following new 
        paragraph:
            ``(22A) the term `financial participant' means any entity 
        that, at the time it enters into a securities contract, 
        commodity contract or forward contract, or at the time of the 
        filing of the petition, has 1 or more agreements or 
        transactions that is described in section 561(a)(2) with the 
        debtor or any other entity (other than an affiliate) of a total 
        gross dollar value of at least $1,000,000,000 in notional or 
        actual principal amount outstanding on any day during the 
        previous 15-month period, or has gross mark-to-market positions 
        of at least $100,000,000 (aggregated across counterparties) in 
        1 or more such agreements or transactions with the debtor or 
        any other entity (other than an affiliate) on any day during 
        the previous 15-month period;''; and
            (3) by amending paragraph (26) to read as follows:
            ``(26) the term `forward contract merchant' means a Federal 
        reserve bank, or a person whose business consists in whole or 
        in part of entering into forward contracts as or with merchants 
        or in a commodity, as defined or in section 761(8) of this 
        title, or any similar good, article, service, right, or 
        interest which is presently or in the future becomes the 
        subject of dealing or in the forward contract trade;''.
    (c) Definition of Master Netting Agreement and Master Netting 
Agreement Participant.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (38) the following new paragraphs:
            ``(38A) the term `master netting agreement' means an 
        agreement providing for the exercise of rights, including 
        rights of netting, setoff, liquidation, termination, 
        acceleration, or closeout, under or in connection with 1 or 
        more contracts that are described in any 1 or more of 
        paragraphs (1) through (5) of section 561(a), or any security 
        agreement or arrangement or other credit enhancement related to 
        1 or more of the foregoing. If a master netting agreement 
        contains provisions relating to agreements or transactions that 
        are not contracts described in paragraphs (1) through (5) of 
        section 561(a), the master netting agreement shall be deemed to 
        be a master netting agreement only with respect to those 
        agreements or transactions that are described in any 1 or more 
        of the paragraphs (1) through (5) of section 561(a);
            ``(38B) the term `master netting agreement participant' 
        means an entity that, at any time before the filing of the 
        petition, is a party to an outstanding master netting agreement 
        with the debtor;''.
    (d) Swap Agreements, Securities Contracts, Commodity Contracts, 
Forward Contracts, Repurchase Agreements, and Master Netting Agreements 
Under the Automatic-Stay.--
            (1) In general.--Section 362(b) of title 11, United States 
        Code, is amended--
                    (A) in paragraph (6), by inserting ``, pledged to, 
                and under the control of,'' after ``held by'';
                    (B) in paragraph (7), by inserting ``, pledged to, 
                and under the control of,'' after ``held by'';
                    (C) by amending paragraph (17) to read as follows:
            ``(17) under subsection (a), of the setoff by a swap 
        participant of any mutual debt and claim under or in connection 
        with 1 or more swap agreements that constitute the setoff of a 
        claim against the debtor for any payment due from the debtor 
        under or in connection with any swap agreement against any 
        payment due to the debtor from the swap participant under or in 
        connection with any swap agreement or against cash, securities, 
        or other property of the debtor held by, pledged to, and under 
        the control of, or due from such swap participant to guarantee, 
        secure, or settle any swap agreement;'';
                    (D) in paragraph (20), by striking ``or'' at the 
                end;
                    (E) in paragraph (21), by striking the period and 
                inserting ``; or''; and
                    (F) by inserting after paragraph (18) the following 
                new paragraph:
            ``(22) under subsection (a), of the setoff by a master 
        netting agreement participant of a mutual debt and claim under 
        or in connection with 1 or more master netting agreements to 
        the extent such participant could offset the claim under 
        paragraph (6), (7), or (17) for each individual contract 
        covered by the master netting agreement in issue.''.
            (2) Limitation.--Section 362 of title 11, United States 
        Code, is amended by adding at the end the following new 
        subsection:
    ``(i) Limitation.--The exercise of rights not subject to the stay 
arising under subsection (a) pursuant to paragraph (6), (7), (17), or 
(22) of subsection (b) shall not be stayed by any order of a court or 
administrative agency in any proceeding under this title.''.
    (e) Limitation of Avoidance Powers Under Master Netting 
Agreement.--Section 546 of title 11, United States Code, is amended--
            (1) in subsection (g) (as added by section 103 of Public 
        Law 101-311)--
                    (A) by striking ``under a swap agreement'';
                    (B) by striking ``in connection with a swap 
                agreement'' and inserting ``under or in connection with 
                any swap agreement'';
            (2) by redesignating subsection (g) (as added by section 
        222(a) of Public Law 103-394) as subsection (i); and
            (3) by inserting before subsection (i) (as redesignated) 
        the following new subsection:
    ``(h) Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) 
of this title, to the extent that under subsection (e), (f), or (g), 
the trustee may not avoid a transfer made by or to a master netting 
agreement participant under or in connection with each individual 
contract covered by any master netting agreement that is made before 
the commencement of the case, the trustee may not avoid a transfer made 
by or to such master netting agreement participant under or in 
connection with the master netting agreement in issue, except under 
section 548(a)(1) of this title.''.
    (f) Fraudulent Transfers of Master Netting Agreements.--Section 
548(d)(2) of title 11, United States Code, is amended--
            (1) in subparagraph (C), by striking ``and'';
            (2) in subparagraph (D), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) a master netting agreement participant that 
                receives a transfer in connection with a master netting 
                agreement takes for value to the extent of such 
                transfer, but only to the extent that such participant 
                would take for value under paragraph (B), (C), or (D) 
                for each individual contract covered by the master 
                netting agreement in issue.''.
    (g) Termination or Acceleration of Securities Contracts.--Section 
555 of title 11, United States Code, is amended--
            (1) by amending the section heading to read ``Contractual 
        right to liquidate, terminate, or accelerate a securities 
        contract''; and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (h) Termination or Acceleration of Commodities or Forward 
Contracts.--Section 556 of title 11, United States Code, is amended--
            (1) by amending the section heading to read ``Contractual 
        right to liquidate, terminate, or accelerate a commodities 
        contract or forward contract''; and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (i) Termination or Acceleration of Repurchase Agreements.--Section 
559 of title 11, United States Code, is amended--
            (1) by amending the section heading to read ``Contractual 
        right to liquidate, terminate, or accelerate a repurchase 
        agreement''; and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (j) Liquidation, Termination, or Acceleration of Swap Agreements.--
Section 560 of title 11, United States Code, is amended--
            (1) by amending the section heading to read ``Contractual 
        right to liquidate, terminate, or accelerate a swap 
        agreement''; and
            (2) in the first sentence, by striking ``termination of a 
        swap agreement'' and inserting ``liquidation, termination, or 
        acceleration of 1 or more swap agreements''; and
            (3) by striking ``in connection with any swap agreement'' 
        and inserting ``in connection with the termination, 
        liquidation, or acceleration of 1 or more swap agreements''.
    (k) Liquidation, Termination, Acceleration, or Offset Under a 
Master Netting Agreement and Across Contracts.--Title 11, United States 
Code, is amended by inserting after section 560 the following new 
section:
``Sec. 561. Contractual right to terminate, liquidate, accelerate, or 
              offset under a master netting agreement and across 
              contracts
    ``(a) In General.--Subject to subsection (b), the exercise of any 
contractual right, because of a condition of the kind specified in 
section 365(e)(1), to cause the termination, liquidation, or 
acceleration of or to offset, or net termination values, payment 
amounts or other transfer obligations arising under or in connection 
with the termination, liquidation, or acceleration of 1 or more--
            ``(1) securities contracts, as defined in section 741(7);
            ``(2) commodity contracts, as defined in section 761(4);
            ``(3) forward contracts;
            ``(4) repurchase agreements;
            ``(5) swap agreements; or
            ``(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation of any 
provision of this title or by any order of a court or administrative 
agency in any proceeding under this title.
    ``(b) Exception.--
            ``(1) A party may exercise a contractual right described in 
        subsection (a) to terminate, liquidate, or accelerate only to 
        the extent that such party could exercise such a right under 
        section 555, 556, 559, or 560 for each individual contract 
        covered by the master netting agreement in issue.
            ``(2)(A) A party may not exercise a contractual right 
        described in subsection (a) to offset or to net obligations 
        arising under, or in connection with, a commodity contract 
        against obligations arising under, or in connection with, any 
        instrument listed in subsection (a) if the obligations are not 
        mutual.
            ``(B) If a debtor is a commodity broker subject to 
        subchapter IV of chapter 7 of this title, a party may not net 
        or offset an obligation to the debtor arising under, or in 
        connection with, a commodity contract against any claim arising 
        under, or in connection with, other instruments listed in 
        subsection (a) if the party has no positive net equity in the 
        commodity account at the debtor, as calculated under subchapter 
        IV.
    ``(c) Definition.--As used in this section, the term `contractual 
right' includes a right set forth in a rule or bylaw of a national 
securities exchange, a national securities association, or a securities 
clearing agency, a right set forth in a bylaw of a clearing 
organization or contract market or in a resolution of the governing 
board thereof, and a right whether or not evidenced in writing arising 
under common law, under law merchant, or by reason of normal business 
practice.''.
    (l) Municipal Bankruptcies.--Section 901 of title 11, United States 
Code, is amended--
            (1) by inserting ``, 555, 556'' after ``553''; and
            (2) by inserting ``, 559, 560, 561, 562'' after ``557''.
    (m) Ancillary Proceedings.--Section 304 of title 11, United States 
Code, is amended by adding at the end the following new subsection:
    ``(d) Any provisions of this title relating to securities 
contracts, commodity contracts, forward contracts, repurchase 
agreements, swap agreements, or master netting agreements shall apply 
in a case ancillary to a foreign proceeding under this section or any 
other section of this title so that enforcement of contractual 
provisions of such contracts and agreements in accordance with their 
terms will not be stayed or otherwise limited by operation of any 
provision of this title or by order of a court in any proceeding under 
this title, and to limit avoidance powers to the same extent as in a 
proceeding under chapter 7 or 11 of this title (such enforcement not to 
be limited based on the presence or absence of assets of the debtor in 
the United States).''.
    (n) Commodity Broker Liquidations.--Title 11, United States Code, 
is amended by inserting after section 766 the following new section:
``Sec. 767. Commodity broker liquidation and forward contract 
              merchants, commodity brokers, stockbrokers, financial 
              institutions, securities clearing agencies, swap 
              participants, repo participants, and master netting 
              agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, or master netting agreement participant 
under this title shall not affect the priority of any unsecured claim 
it may have after the exercise of such rights or affect the provisions 
of this subchapter IV regarding customer property or distributions.''.
    (o) Stockbroker Liquidations.--Title 11, United States Code, is 
amended by inserting after section 752 the following new section:
``Sec. 753. Stockbroker liquidation and forward contract merchants, 
              commodity brokers, stockbrokers, financial institutions, 
              securities clearing agencies, swap participants, repo 
              participants, and master netting agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, or master netting agreement participant 
under this title shall not affect the priority of any unsecured claim 
it may have after the exercise of rights or affect the provisions of 
this subchapter regarding customer property or distributions.''.
    (p) Setoff.--Section 553 of title 11, United States Code, is 
amended--
            (1) in subsection (a)(3)(C), by inserting ``(except for a 
        setoff of a kind described in section 362(b)(6), 362(b)(7), 
        362(b)(17), 555, 556, 559, 560, or 561 of this title)'' before 
        the period; and
            (2) in subsection (b)(1), by striking ``362(b)(14),'' and 
        inserting ``362(b)(17), 555, 556, 559, 560, 561''.
    (q) Securities Contracts, Commodity Contracts, and Forward 
Contracts.--Title 11, United States Code, is amended--
            (1) in section 362(b)(6), by striking ``financial 
        institutions,'' each place such term appears and inserting 
        ``financial institution, financial participant'';
            (2) in section 546(e), by inserting ``financial 
        participant'' after ``financial institution,'';
            (3) in section 548(d)(2)(B), by inserting ``financial 
        participant'' after ``financial institution,'';
            (4) in section 555--
                    (A) by inserting ``financial participant'' after 
                ``financial institution,''; and
                    (B) by inserting before the period ``, a right set 
                forth in a bylaw of a clearing organization or contract 
                market or in a resolution of the governing board 
                thereof, and a right, whether or not in writing, 
                arising under common law, under law merchant, or by 
                reason of normal business practice''; and
            (5) in section 556, by inserting ``, financial 
        participant'' after ``commodity broker''.
    (r) Technical and Conforming Amendment.--Section 104 of title 11, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(c) Exception For Certain Defined Terms.--No adjustments shall be 
made under this section to the dollar amounts set forth in the 
definition of the term `financial participant' in section 101(22A).''.

SEC. 402. RECORDKEEPING REQUIREMENTS.

    Section 11(e)(8) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)) is amended by adding at the end the following new 
subparagraph:

SEC. 403. DAMAGE MEASURE.

    (a) Title 11, United States Code, is amended by inserting after 
section 561 (as added by section 7(k)) the following new section:
``Sec. 561. Damage measure in connection with swap agreements, 
              securities contracts, forward contracts, commodity 
              contracts, repurchase agreements, or master netting 
              agreements
    ``If the trustee rejects a swap agreement, securities contract as 
defined in section 741 of this title, forward contract, repurchase 
agreement, or master netting agreement pursuant to section 365(a) of 
this title, or if a forward contract merchant, stockbroker, financial 
institution, securities clearing agency, repo participant, master 
netting agreement participant, or swap participant liquidates, 
terminates, or accelerates any such contract or agreement, damages 
shall be measured as of the earlier of--
            ``(1) the date of such rejection; or
            ``(2) the date of such liquidation, termination, or 
        acceleration.''.
    (b) Claims Arising From Rejection.--Section 502(g) of title 11, 
United States Code, is amended--
            (1) by designating the existing text as paragraph (1); and
            (2) by adding at the end the following new paragraph:
            ``(2) A claim for damages calculated in accordance with 
        section 562 of this title shall be allowed under subsection 
        (a),(b), or (c) of this section or disallowed under subsection 
        (d) or (e) of this section as if such claim had arisen before 
        the date of the filing of the petition.''.

SEC. 404. ASSET-BACKED SECURITIZATIONS.

    Section 541 of title 11, United States Code, is amended--
            (1) in subsection (b), by striking ``or'' at the end of 
        paragraph (4);
            (2) by redesignating paragraph (5) of subsection (b) as 
        paragraph (6);
            (3) by inserting after paragraph (4) of subsection (b) the 
        following new paragraph:
            ``(5) any eligible asset (or proceeds thereof), to the 
        extent that such eligible asset was transferred by the debtor, 
        before the date of commencement of the case, to an eligible 
        entity in connection with an asset-backed securitization, 
        except to the extent such asset (or proceeds or value thereof) 
        may be recovered by the trustee under section 550 by virtue of 
        avoidance under section 548(a); or''; and
            (4) by adding at the end the following new subsection:
    ``(e) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Asset-backed securitization.--The term `asset-backed 
        securitization' means a transaction in which eligible assets 
        transferred to an eligible entity are used as the source of 
        payment on securities, the most senior of which are rated 
        investment grade by 1 or more nationally recognized securities 
        rating organizations, issued by an issuer;
            ``(2) Eligible asset.--The term `eligible asset' means--
                    ``(A) financial assets (including interests therein 
                and proceeds thereof), either fixed or revolving, 
                including residential and commercial mortgage loans, 
                consumer receivables, trade receivables, and lease 
                receivables, that, by their terms, convert into cash 
                within a finite time period, plus any rights or other 
                assets designed to assure the servicing or timely 
                distribution of proceeds to security holders;
                    ``(B) cash; and
                    ``(C) securities.
            ``(3) Eligible entity.--The term `eligible entity' means--
                    ``(A) an issuer; or
                    ``(B) a trust, corporation, partnership, or other 
                entity engaged exclusively in the business of acquiring 
                and transferring eligible assets directly or indirectly 
                to an issuer and taking actions ancillary thereto;
            ``(4) Issuer.--The term `issuer' means a trust, 
        corporation, partnership, or other entity engaged exclusively 
        in the business of acquiring and holding eligible assets, 
        issuing securities backed by eligible assets, and taking 
        actions ancillary thereto.
            ``(5) Transferred.--The term `transferred' means the 
        debtor, pursuant to a written agreement, represented and 
        warranted that eligible assets were sold, contributed, or 
        otherwise conveyed with the intention of removing them from the 
        estate of the debtor pursuant to subsection (b)(5), 
        irrespective, without limitation of--
                    ``(A) whether the debtor directly or indirectly 
                obtained or held an interest in the issuer or in any 
                securities issued by the issuer;
                    ``(B) whether the debtor had an obligation to 
                repurchase or to service or supervise the servicing of 
                all or any portion of such eligible assets; or
                    ``(C) the characterization of such sale, 
                contribution, or other conveyance for tax, accounting, 
                regulatory reporting, or other purposes.''.

SEC. 405. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO INCUR FINANCE 
              CHARGES.

    Section 106 of the Truth in Lending Act (15 U.S.C. 1605) is amended 
by adding at the end the following:
    ``(g) Prohibition on Certain Actions for Failure To Incur Finance 
Charges.--A creditor may not, solely because a consumer has not 
incurred finance charges in connection with an extension of credit--
            ``(1) refuse to renew or continue to offer the extension of 
        credit to that consumer; or
            ``(2) charge a fee to that consumer in lieu of a finance 
        charge.''.

SEC. 406. 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. 407. 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 parties'' and inserting 
        ``Subject to subsection (f), the parties''; and
            (2) by adding at the end the following:
    ``(f)(1) The Judicial Conference of the United States shall 
prescribe procedures for waiving fees under this subsection.
    ``(2) Under the procedures described in paragraph (1), the district 
court or the bankruptcy court may waive a filing fee described in 
paragraph (3) for a case commenced under chapter 7 of title 11 if the 
court determines that an individual debtor is unable to pay that fee in 
installments.
    ``(3) A filing fee referred to in paragraph (2) is--
            ``(A) a filing fee under subsection (a)(1); or
            ``(B) any other fee prescribed by the Judicial Conference 
        of the United States under subsection (b) that is payable to 
        the clerk of the district court or the clerk of the bankruptcy 
        court upon the commencement of a case under chapter 7 of title 
        11.
    ``(4) In addition to waiving a fee described in paragraph (3) under 
paragraph (2), the district court or the bankruptcy court may waive any 
other fee prescribed under subsection (b) or (c) if the court 
determines that the individual is unable to pay that fee in 
installments.''.

SEC. 408. APPLICABILITY.

    The amendments made by this title shall apply with respect to cases 
commenced or appointments made under any Federal or State law after the 
date of enactment of this Act.

            TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES

SEC. 501. AMENDMENT TO ADD A CHAPTER 6 TO TITLE 11, UNITED STATES CODE.

    (a) In General.--Title 11, United States Code, is amended by 
inserting after chapter 5 the following:

          ``CHAPTER 6--ANCILLARY AND OTHER CROSS-BORDER CASES

``Sec.
``601. Purpose and scope of application.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``602. Definitions.
``603. International obligations of the United States.
``604. Commencement of ancillary case.
``605. Authorization to act in a foreign country.
``606. Public policy exception.
``607. Additional assistance.
``608. Interpretation.

``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``609. Right of direct access.
``610. Limited jurisdiction.
``611. Commencement of bankruptcy case under section 301 or 303.
``612. Participation of a foreign representative in a case under this 
                            title.
``613. Access of foreign creditors to a case under this title.
``614. Notification to foreign creditors concerning a case under this 
                            title.

    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``615. Application for recognition of a foreign proceeding.
``616. Presumptions concerning recognition.
``617. Order recognizing a foreign proceeding.
``618. Subsequent information.
``619. Relief that may be granted upon petition for recognition of a 
                            foreign proceeding.
``620. Effects of recognition of a foreign main proceeding.
``621. Relief that may be granted upon recognition of a foreign 
                            proceeding.
``622. Protection of creditors and other interested persons.
``623. Actions to avoid acts detrimental to creditors.
``624. Intervention by a foreign representative.

     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``625. Cooperation and direct communication between the court and 
                            foreign courts or foreign representatives.
``626. Cooperation and direct communication between the trustee and 
                            foreign courts or foreign representatives.
``627. Forms of cooperation.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``628. Commencement of a case under this title after recognition of a 
                            foreign main proceeding.
``629. Coordination of a case under this title and a foreign 
                            proceeding.
``630. Coordination of more than 1 foreign proceeding.
``631. Presumption of insolvency based on recognition of a foreign main 
                            proceeding.
``632. Rule of payment in concurrent proceedings.
``Sec. 601. Purpose and scope of application
    ``(a) The purpose of this chapter is to incorporate the Model Law 
on Cross-Border Insolvency so as to provide effective mechanisms for 
dealing with cases of cross-border insolvency with the objectives of--
            ``(1) cooperation between--
                    ``(A) United States courts, United States Trustees, 
                trustees, examiners, debtors, and debtors in 
                possession; and
                    ``(B) the courts and other competent authorities of 
                foreign countries involved in cross-border insolvency 
                cases;
            ``(2) greater legal certainty for trade and investment;
            ``(3) fair and efficient administration of cross-border 
        insolvencies that protects the interests of all creditors, and 
        other interested entities, including the debtor;
            ``(4) protection and maximization of the value of the 
        debtor's assets; and
            ``(5) facilitation of the rescue of financially troubled 
        businesses, thereby protecting investment and preserving 
        employment.
    ``(b) This chapter applies where--
            ``(1) assistance is sought in the United States by a 
        foreign court or a foreign representative in connection with a 
        foreign proceeding;
            ``(2) assistance is sought in a foreign country in 
        connection with a case under this title;
            ``(3) a foreign proceeding and a case under this title with 
        respect to the same debtor are taking place concurrently; or
            ``(4) creditors or other interested persons in a foreign 
        country have an interest in requesting the commencement of, or 
        participating in, a case or proceeding under this title.
    ``(c) This chapter does not apply to--
            ``(1) a proceeding concerning an entity identified by 
        exclusion in subsection 109(b); or
            ``(2) a natural person or a natural person and that 
        person's spouse who have debts within the limits specified in 
        under section 109(e) and who are citizens of the United States 
        or aliens lawfully admitted for permanent residence in the 
        United States.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 602. Definitions
    ``For the purposes of this chapter, the term--
            ``(1) `debtor' means an entity that is the subject of a 
        foreign proceeding;
            ``(2) `establishment' means any place of operations where 
        the debtor carries out a nontransitory economic activity;
            ``(3) `foreign court' means a judicial or other authority 
        competent to control or supervise a foreign proceeding;
            ``(4) `foreign main proceeding' means a foreign proceeding 
        taking place in the country where the debtor has the center of 
        its main interests;
            ``(5) `foreign nonmain proceeding' means a foreign 
        proceeding, other than a foreign main proceeding, taking place 
        in a country where the debtor has an establishment;
            ``(6) `trustee' includes a trustee, a debtor in possession 
        in a case under any chapter of this title, or a debtor under 
        chapters 9 or 13 of this title; and
            ``(7) `within the territorial jurisdiction of the United 
        States' when used with reference to property of a debtor refers 
        to tangible property located within the territory of the United 
        States and intangible property deemed to be located within that 
        territory, including any property that may properly be seized 
        or garnished by an action in a Federal or State court in the 
        United States.
``Sec. 603. International obligations of the United States
    ``To the extent that this chapter conflicts with an obligation of 
the United States arising out of any treaty or other form of agreement 
to which it is a party with 1 or more other countries, the requirements 
of the treaty or agreement prevail.
``Sec. 604. Commencement of ancillary case
    ``A case under this chapter is commenced by the filing of a 
petition for recognition of a foreign proceeding under section 615.
``Sec. 605. Authorization to act in a foreign country
    ``A trustee or another entity designated by the court may be 
authorized by the court to act in a foreign country on behalf of an 
estate created under section 541. An entity authorized to act under 
this section may act in any way permitted by the applicable foreign 
law.
``Sec. 606. Public policy exception
    ``Nothing in this chapter prevents the court from refusing to take 
an action governed by this chapter if the action would be manifestly 
contrary to the public policy of the United States.
``Sec. 607. Additional assistance
    ``(a) Nothing in this chapter limits the power of the court, upon 
recognition of a foreign proceeding, to provide additional assistance 
to a foreign representative under this title or under other laws of the 
United States.
    ``(b) In determining whether to provide additional assistance under 
this title or under other laws of the United States, the court shall 
consider whether such additional assistance, consistent with the 
principles of comity, will reasonably assure--
            ``(1) just treatment of all holders of claims against or 
        interests in the debtor's property;
            ``(2) protection of claim holders in the United States 
        against prejudice and inconvenience in the processing of claims 
        in such foreign proceeding;
            ``(3) prevention of preferential or fraudulent dispositions 
        of property of the debtor;
            ``(4) distribution of proceeds of the debtor's property 
        substantially in accordance with the order prescribed by this 
        title; and
            ``(5) if appropriate, the provision of an opportunity for a 
        fresh start for the individual that such foreign proceeding 
        concerns.
``Sec. 608. Interpretation
    ``In interpreting this chapter, the court shall consider its 
international origin, and the need to promote an application of this 
chapter that is consistent with the application of similar statutes 
adopted by foreign jurisdictions.

``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``Sec. 609. Right of direct access
    ``(a) A foreign representative is entitled to commence a case under 
section 604 by filing a petition for recognition under section 615, and 
upon recognition, to apply directly to other Federal and State courts 
for appropriate relief in those courts.
    ``(b) Upon recognition, and subject to section 610, a foreign 
representative has the capacity to sue and be sued.
    ``(c) Recognition under this chapter is prerequisite to the 
granting of comity or cooperation to a foreign proceeding in any State 
or Federal court in the United States. Any request for comity or 
cooperation in any court shall be accompanied by a sworn statement 
setting forth whether recognition under section 615 has been sought and 
the status of any such petition.
    ``(d) Upon denial of recognition under this chapter, the court may 
issue appropriate orders necessary to prevent an attempt to obtain 
comity or cooperation from courts in the United States without such 
recognition.
``Sec. 610. Limited jurisdiction
    ``The sole fact that a foreign representative files a petition 
under sections 604 and 615 does not subject the foreign representative 
to the jurisdiction of any court in the United States for any other 
purpose.
``Sec. 611. Commencement of bankruptcy case under section 301 or 303
    ``(a) Upon filing a petition for recognition, a foreign 
representative may commence--
            ``(1) an involuntary case under section 303; or
            ``(2) a voluntary case under section 301 or 302, if the 
        foreign proceeding is a foreign main proceeding.
    ``(b) The petition commencing a case under subsection (a) of this 
section must be accompanied by a statement describing the petition for 
recognition and its current status. The court where the petition for 
recognition has been filed must be advised of the foreign 
representative's intent to commence a case under subsection (a) of this 
section prior to such commencement.
    ``(c) A case under subsection (a) shall be dismissed unless 
recognition is granted.
``Sec. 612. Participation of a foreign representative in a case under 
              this title
    ``Upon recognition of a foreign proceeding, the foreign 
representative in that proceeding is entitled to participate as a party 
in interest in a case regarding the debtor under this title.
``Sec. 613. Access of foreign creditors to a case under this title
    ``(a) Foreign creditors have the same rights regarding the 
commencement of, and participation in, a case under this title as 
domestic creditors.
    ``(b)(1) Subsection (a) of this section does not change or codify 
law in effect on the date of enactment of this chapter as to the 
priority of claims under section 507 or 726, except that the claim of a 
foreign creditor under those sections shall not be given a lower 
priority than the class of general unsecured claims without priority 
solely because the holder of such claim is a foreign creditor.
    ``(2)(A) Subsection (a) of this section and paragraph (1) of this 
subsection do not change or codify law in effect on the date of 
enactment of this chapter as to the allowability of foreign revenue 
claims or other foreign public law claims in a proceeding under this 
title.
    ``(B) Allowance and priority as to a foreign tax claim or other 
foreign public law claim shall be governed by any applicable tax treaty 
of the United States, under the conditions and circumstances specified 
therein.
``Sec. 614. Notification to foreign creditors concerning a case under 
              this title
    ``(a) Whenever in a case under this title, notice is to be given to 
creditors generally or to any class or category of creditors, such 
notice shall also be given to the known creditors generally, or to 
creditors in the notified class or category, that do not have addresses 
in the United States. The court may order that appropriate steps be 
taken with a view to notifying any creditor whose address is not yet 
known.
    ``(b) The notification to creditors with foreign addresses 
described in subsection (a) shall be given individually, unless the 
court considers that, under the circumstances, some other form of 
notification would be more appropriate. No letters rogatory or other 
similar formality is required.
    ``(c) When a notification of commencement of a case is to be given 
to foreign creditors, the notification shall--
            ``(1) indicate the time period for filing proofs of claim 
        and specify the place for their filing;
            ``(2) indicate whether secured creditors need to file their 
        proofs of claim; and
            ``(3) contain any other information required to be included 
        in such a notification to creditors pursuant to this title and 
        the orders of the court.
    ``(d) Any rule of procedure or order of the court as to notice or 
the filing of a claim shall provide such additional time to creditors 
with foreign addresses as is reasonable under the circumstances.

    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``Sec. 615. Application for recognition of a foreign proceeding
    ``(a) A foreign representative applies to the court for recognition 
of the foreign proceeding in which the foreign representative has been 
appointed by filing a petition for recognition.
    ``(b) A petition for recognition shall be accompanied by--
            ``(1) a certified copy of the decision commencing the 
        foreign proceeding and appointing the foreign representative;
            ``(2) a certificate from the foreign court affirming the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative; or
            ``(3) in the absence of evidence referred to in paragraphs 
        (1) and (2), any other evidence acceptable to the court of the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative.
    ``(c) A petition for recognition shall also be accompanied by a 
statement identifying all foreign proceedings with respect to the 
debtor that are known to the foreign representative.
    ``(d) The documents referred to in paragraphs (1) and (2) of 
subsection (b) must be translated into English. The court may require a 
translation into English of additional documents.
``Sec. 616. Presumptions concerning recognition
    ``(a) If the decision or certificate referred to in section 615(b) 
indicates that the foreign proceeding is a foreign proceeding within 
the meaning of section 101(23) and that the person or body is a foreign 
representative within the meaning of section 101(24), the court is 
entitled to so presume.
    ``(b) The court is entitled to presume that documents submitted in 
support of the petition for recognition are authentic, whether the 
documents have been subjected to legal processing under applicable law.
    ``(c) In the absence of evidence to the contrary, the debtor's 
registered office, or habitual residence in the case of an individual, 
is presumed to be the center of the debtor's main interests.
``Sec. 617. Order recognizing a foreign proceeding
    ``(a) Subject to section 606, an order recognizing a foreign 
proceeding shall be entered if--
            ``(1) the foreign proceeding is a foreign main proceeding 
        or foreign nonmain proceeding within the meaning of section 602 
        and is a foreign proceeding within the meaning of section 
        101(23);
            ``(2) the person or body applying for recognition is a 
        foreign representative within the meaning of section 101(24); 
        and
            ``(3) the petition meets the requirements of section 615.
    ``(b) The foreign proceeding shall be recognized--
            ``(1) as a foreign main proceeding if it is taking place in 
        the country where the debtor has the center of its main 
        interests; or
            ``(2) as a foreign nonmain proceeding if the debtor has an 
        establishment within the meaning of section 602 in the foreign 
        country where the proceeding is pending.
    ``(c) A petition for recognition of a foreign proceeding shall be 
decided upon at the earliest possible time. Entry of an order 
recognizing a foreign proceeding shall constitute recognition under 
this chapter.
    ``(d) The provisions of this subchapter do not prevent modification 
or termination of recognition if it is shown that the grounds for 
granting it were fully or partially lacking or have ceased to exist, 
but in considering such action the court shall give due weight to 
possible prejudice to parties that have relied upon the granting of 
recognition. The foreign proceeding may be closed in the manner 
prescribed for a case under section 350.
``Sec. 618. Subsequent information
    ``From the time of filing the petition for recognition of the 
foreign proceeding, the foreign representative shall file with the 
court promptly a notice of change of status concerning--
            ``(1) any substantial change in the status of the foreign 
        proceeding or the status of the foreign representative's 
        appointment; and
            ``(2) any other foreign proceeding regarding the debtor 
        that becomes known to the foreign representative.
``Sec. 619. Relief that may be granted upon petition for recognition of 
              a foreign proceeding
    ``(a) From the time of filing a petition for recognition until the 
petition is decided upon, the court may, at the request of the foreign 
representative, where relief is urgently needed to protect the assets 
of the debtor or the interests of the creditors, grant relief of a 
provisional nature, including--
            ``(1) staying execution against the debtor's assets;
            ``(2) entrusting the administration or realization of all 
        or part of the debtor's assets located in the United States to 
        the foreign representative or another person designated by the 
        court, including an examiner, in order to protect and preserve 
        the value of assets that, by their nature or because of other 
        circumstances, are perishable, susceptible to devaluation or 
        otherwise in jeopardy; and
            ``(3) any relief referred to in paragraph (3), (4), or (7) 
        of section 621(a).
    ``(b) Unless extended under section 621(a)(6), the relief granted 
under this section terminates when the petition for recognition is 
decided upon.
    ``(c) It is a ground for denial of relief under this section that 
such relief would interfere with the administration of a foreign main 
proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under this section.
``Sec. 620. Effects of recognition of a foreign main proceeding
    ``(a) Upon recognition of a foreign proceeding that is a foreign 
main proceeding--
            ``(1) section 362 applies with respect to the debtor and 
        that property of the debtor that is within the territorial 
        jurisdiction of the United States; and
            ``(2) transfer, encumbrance, or any other disposition of an 
        interest of the debtor in property within the territorial 
        jurisdiction of the United States is restrained as and to the 
        extent that is provided for property of an estate under 
        sections 363, 549, and 552.
Unless the court orders otherwise, the foreign representative may 
operate the debtor's business and may exercise the powers of a trustee 
under section 549, subject to sections 363 and 552.
    ``(b) The scope, and the modification or termination, of the stay 
and restraints referred to in subsection (a) of this section are 
subject to the exceptions and limitations provided in subsections (b), 
(c), and (d) of section 362, subsections (b) and (c) of section 363, 
and sections 552, 555 through 557, 559, and 560.
    ``(c) Subsection (a) of this section does not affect the right to 
commence individual actions or proceedings in a foreign country to the 
extent necessary to preserve a claim against the debtor.
    ``(d) Subsection (a) of this section does not affect the right of a 
foreign representative or an entity to file a petition commencing a 
case under this title or the right of any party to file claims or take 
other proper actions in such a case.
``Sec. 621. Relief that may be granted upon recognition of a foreign 
              proceeding
    ``(a) Upon recognition of a foreign proceeding, whether main or 
nonmain, where necessary to effectuate the purpose of this chapter and 
to protect the assets of the debtor or the interests of the creditors, 
the court may, at the request of the foreign representative, grant any 
appropriate relief, including--
            ``(1) staying the commencement or continuation of 
        individual actions or individual proceedings concerning the 
        debtor's assets, rights, obligations or liabilities to the 
        extent they have not been stayed under section 620(a);
            ``(2) staying execution against the debtor's assets to the 
        extent it has not been stayed under section 620(a);
            ``(3) suspending the right to transfer, encumber or 
        otherwise dispose of any assets of the debtor to the extent 
        this right has not been suspended under section 620(a);
            ``(4) providing for the examination of witnesses, the 
        taking of evidence or the delivery of information concerning 
        the debtor's assets, affairs, rights, obligations or 
        liabilities;
            ``(5) entrusting the administration or realization of all 
        or part of the debtor's assets within the territorial 
        jurisdiction of the United States to the foreign representative 
        or another person, including an examiner, designated by the 
        court;
            ``(6) extending relief granted under section 619(a); and
            ``(7) granting any additional relief that may be available 
        to a trustee, except for relief available under sections 522, 
        544, 545, 547, 548, 550, and 724(a).
    ``(b) Upon recognition of a foreign proceeding, whether main or 
nonmain, the court may, at the request of the foreign representative, 
entrust the distribution of all or part of the debtor's assets located 
in the United States to the foreign representative or another person, 
including an examiner, designated by the court, provided that the court 
is satisfied that the interests of creditors in the United States are 
sufficiently protected.
    ``(c) In granting relief under this section to a representative of 
a foreign nonmain proceeding, the court must be satisfied that the 
relief relates to assets that, under the law of the United States, 
should be administered in the foreign nonmain proceeding or concerns 
information required in that proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
``Sec. 622. Protection of creditors and other interested persons
    ``(a) In granting or denying relief under section 619 or 621, or in 
modifying or terminating relief under subsection (c) of this section, 
the court must find that the interests of the creditors and other 
interested persons or entities, including the debtor, are sufficiently 
protected.
    ``(b) The court may subject relief granted under section 619 or 621 
to conditions it considers appropriate.
    ``(c) The court may, at the request of the foreign representative 
or an entity affected by relief granted under section 619 or 621, or at 
its own motion, modify or terminate such relief.
``Sec. 623. Actions to avoid acts detrimental to creditors
    ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a pending case under another chapter of 
this title to initiate actions under sections 522, 544, 545, 547, 548, 
550, and 724(a).
    ``(b) When the foreign proceeding is a foreign nonmain proceeding, 
the court must be satisfied that an action under subsection (a) of this 
section relates to assets that, under United States law, should be 
administered in the foreign nonmain proceeding.
``Sec. 624. Intervention by a foreign representative
    ``Upon recognition of a foreign proceeding, the foreign 
representative may intervene in any proceedings in a State or Federal 
court in the United States in which the debtor is a party.

     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``Sec. 625. Cooperation and direct communication between the court and 
              foreign courts or foreign representatives
    ``(a) In all matters included within section 601, the court shall 
cooperate to the maximum extent possible with foreign courts or foreign 
representatives, either directly or through the trustee.
    ``(b) The court is entitled to communicate directly with, or to 
request information or assistance directly from, foreign courts or 
foreign representatives, subject to the rights of parties in interest 
to notice and participation.
``Sec. 626. Cooperation and direct communication between the trustee 
              and foreign courts or foreign representatives
    ``(a) In all matters included in section 601, the trustee or other 
person, including an examiner, designated by the court, shall, subject 
to the supervision of the court, cooperate to the maximum extent 
possible with foreign courts or foreign representatives.
    ``(b) The trustee or other person, including an examiner, 
designated by the court is entitled, subject to the supervision of the 
court, to communicate directly with foreign courts or foreign 
representatives.
    ``(c) Section 1104(d) shall apply to the appointment of an examiner 
under this chapter. Any examiner shall comply with the qualification 
requirements imposed on a trustee by section 322(a).
``Sec. 627. Forms of cooperation
    ``Cooperation referred to in sections 625 and 626 may be 
implemented by any appropriate means, including--
            ``(1) appointment of a person or body, including an 
        examiner, to act at the direction of the court;
            ``(2) communication of information by any means considered 
        appropriate by the court;
            ``(3) coordination of the administration and supervision of 
        the debtor's assets and affairs;
            ``(4) approval or implementation of agreements concerning 
        the coordination of proceedings; and
            ``(5) coordination of concurrent proceedings regarding the 
        same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``Sec. 628. Commencement of a case under this title after recognition 
              of a foreign main proceeding
    ``After recognition of a foreign main proceeding, a case under 
another chapter of this title may be commenced only if the debtor has 
assets in the United States. The effects of that case shall be 
restricted to the assets of the debtor that are within the territorial 
jurisdiction of the United States and, to the extent necessary to 
implement cooperation and coordination under sections 625, 626, and 
627, to other assets of the debtor that are within the jurisdiction of 
the court under sections 541(a) and 1334(e), to the extent that such 
other assets are not subject to the jurisdiction and control of a 
foreign proceeding that has been recognized under this chapter.
``Sec. 629. Coordination of a case under this title and a foreign 
              proceeding
    ``Where a foreign proceeding and a case under another chapter of 
this title are taking place concurrently regarding the same debtor, the 
court shall seek cooperation and coordination under sections 625, 626, 
and 627, and the following shall apply:
            ``(1) When the case in the United States is taking place at 
        the time the petition for recognition of the foreign proceeding 
        is filed--
                    ``(A) any relief granted under sections 619 or 621 
                must be consistent with the case in the United States; 
                and
                    ``(B) even if the foreign proceeding is recognized 
                as a foreign main proceeding, section 620 does not 
                apply.
            ``(2) When a case in the United States under this title 
        commences after recognition, or after the filing of the 
        petition for recognition, of the foreign proceeding--
                    ``(A) any relief in effect under sections 619 or 
                621 shall be reviewed by the court and shall be 
                modified or terminated if inconsistent with the case in 
                the United States; and
                    ``(B) if the foreign proceeding is a foreign main 
                proceeding, the stay and suspension referred to in 
                section 620(a) shall be modified or terminated if 
                inconsistent with the case in the United States.
            ``(3) In granting, extending, or modifying relief granted 
        to a representative of a foreign nonmain proceeding, the court 
        must be satisfied that the relief relates to assets that, under 
        the law of the United States, should be administered in the 
        foreign nonmain proceeding or concerns information required in 
        that proceeding.
            ``(4) In achieving cooperation and coordination under 
        sections 628 and 629, the court may grant any of the relief 
        authorized under section 305.
``Sec. 630. Coordination of more than 1 foreign proceeding
    ``In matters referred to in section 601, with respect to more than 
one foreign proceeding regarding the debtor, the court shall seek 
cooperation and coordination under sections 625, 626, and 627, and the 
following shall apply:
            ``(1) Any relief granted under section 619 or 621 to a 
        representative of a foreign nonmain proceeding after 
        recognition of a foreign main proceeding must be consistent 
        with the foreign main proceeding.
            ``(2) If a foreign main proceeding is recognized after 
        recognition, or after the filing of a petition for recognition, 
        of a foreign nonmain proceeding, any relief in effect under 
        section 619 or 621 shall be reviewed by the court and shall be 
        modified or terminated if inconsistent with the foreign main 
        proceeding.
            ``(3) If, after recognition of a foreign nonmain 
        proceeding, another foreign nonmain proceeding is recognized, 
        the court shall grant, modify, or terminate relief for the 
        purpose of facilitating coordination of the proceedings.
``Sec. 631. Presumption of insolvency based on recognition of a foreign 
              main proceeding
    ``In the absence of evidence to the contrary, recognition of a 
foreign main proceeding is for the purpose of commencing a proceeding 
under section 303, proof that the debtor is generally not paying its 
debts.
``Sec. 632. Rule of payment in concurrent proceedings
    ``Without prejudice to secured claims or rights in rem, a creditor 
who has received payment with respect to its claim in a foreign 
proceeding pursuant to a law relating to insolvency may not receive a 
payment for the same claim in a case under any other chapter of this 
title regarding the debtor, so long as the payment to other creditors 
of the same class is proportionately less than the payment the creditor 
has already received.''.
    (b) Clerical Amendment.--The table of chapters for title 11, United 
States Code, is amended by inserting after the item relating to chapter 
5 the following:

``6. Ancillary and Other Cross-Border Cases.................     601''.

SEC. 502. AMENDMENTS TO OTHER CHAPTERS IN TITLE 11, UNITED STATES CODE.

    (a) Applicability of Chapters.--Section 103 of title 11, United 
States Code, is amended--
            (1) in subsection (a), by inserting before the period the 
        following: ``and this chapter, sections 307, 555 through 557, 
        559, and 560 apply in a case under chapter 6''; and
            (2) by adding at the end the following:
    ``(j) Chapter 6 applies only in a case under that chapter, except 
that section 605 applies to trustees and to any other entity designated 
by the court, including an examiner, under chapters 7, 11, and 12, to 
debtors in possession under chapters 11 and 12, and to debtors or 
trustees under chapters 9 and 13 who are authorized to act under 
section 605.''.
    (b) Definitions.--Section 101 of title 11, United States Code, is 
amended by striking paragraphs (23) and (24) and inserting the 
following:
            ``(23) `foreign proceeding' means a collective judicial or 
        administrative proceeding in a foreign state, including an 
        interim proceeding, pursuant to a law relating to insolvency in 
        which proceeding the assets and affairs of the debtor are 
        subject to control or supervision by a foreign court, for the 
        purpose of reorganization or liquidation;
            ``(24) `foreign representative' means a person or body, 
        including 1 appointed on an interim basis, authorized in a 
        foreign proceeding to administer the reorganization or the 
        liquidation of the debtor's assets or affairs or to act as a 
        representative of the foreign proceeding;''.
    (c) Amendments to Title 28, United States Code.--
            (1) Procedures.--Section 157(b)(2) of title 28, United 
        States Code, is amended--
                    (A) in subparagraph (N), by striking ``and'' at the 
                end;
                    (B) in subparagraph (O), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(P) recognition of foreign proceedings and other 
                matters under chapter 6.''.
            (2) Bankruptcy cases and proceedings.--Section 1334(c) of 
        title 28, United States Code, is amended by striking ``Nothing 
        in'' and inserting ``Except with respect to a case under 
        chapter 6 of title 11, nothing in''.
            (3) Duties of trustees.--Section 586(a)(3) of title 28, 
        United States Code, is amended by inserting ``6,'' after 
        ``chapter''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

    Section 365(d)(4) of title 11, United States Code, is amended to 
read as follows:
    ``(4)(A) Subject to subparagraph (B), in any case under any chapter 
of this title, 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) The court may extend the period determined under subparagraph 
(A) only upon a motion of the lessor.''.

SEC. 602. EXPEDITED APPEALS OF BANKRUPTCY CASES TO COURTS OF APPEALS.

    (a) In General.--Section 158 of title 28, United States Code, is 
amended--
            (1) by redesignating subsection (d) as subsection (e);
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d)(1) Any final judgment, decision, order, or decree of a 
bankruptcy judge entered for a case in accordance with section 157 may 
be appealed by any party in such case to the appropriate court of 
appeals if--
            ``(A) an appeal from such judgment, decision, order, or 
        decree is first filed with the appropriate district court of 
        the United States; and
            ``(B) the decision on the appeal described under 
        subparagraph (A) is not filed by a district court judge within 
        30 days after the date such appeal is filed with the district 
        court.
    ``(2) On the date that an appeal is filed with a court of appeals 
under paragraph (1), the chief judge for such court of appeals shall 
issue an order to the clerk for the district court from which the 
appeal is filed. Such order shall direct the clerk to enter the final 
judgment, decision, order, or decree of the bankruptcy judge as the 
final judgment, decision, order, or decree of the district court.''; 
and
            (3) in subsection (e), (as redesignated by paragraph (1) of 
        this section) by striking ``subsections (a) and (b)'' and 
        inserting ``subsections (a), (b), and (d)''.
    (b) Technical and Conforming Amendments.--
            (1) Section 305(c) of title 11, United States Code, is 
        amended by striking ``section 158(d)'' and inserting ``section 
        158(e)''.
            (2) Section 1334(d) of title 28, United States Code, is 
        amended by striking ``section 158(d)'' and inserting ``section 
        158(e)''.
            (3) Section 1452(b) of title 28, United States Code, is 
        amended by striking ``section 158(d)'' and inserting ``section 
        158(e)''.

SEC. 603. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

    Section 1102(a)(2) of title 11, United States Code, is amended by 
inserting before the first sentence the following: ``On its own motion 
or on request of a party in interest, and after notice and hearing, the 
court may order a change in 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.''.

SEC. 604. REPEAL OF SUNSET PROVISION.

    Section 302 of the Bankruptcy Judges, United States Trustees, and 
Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) is amended by 
striking subsection (f).

SEC. 605. CASES ANCILLARY TO FOREIGN PROCEEDINGS.

    Section 304 of title 11, United States Code, as amended by section 
410 of this Act, is amended by adding at the end the following:
    ``(e)(1) In this subsection--
            ``(A) the term `domestic insurance company' means a 
        domestic insurance company, as that term is used in section 
        109(b)(2);
            ``(B) the term `foreign insurance company' means a foreign 
        insurance company, as that term is used in section 109(b)(3);
            ``(C) the term `United States claimant' means a beneficiary 
        of any deposit referred to in paragraph (2)(A) or any 
        multibeneficiary trust referred to in subparagraph (B) or (C) 
        of paragraph (2);
            ``(D) the term `United States creditor' means, with respect 
        to a foreign insurance company--
                    ``(i) a United States claimant; or
                    ``(ii) any business entity that operates in the 
                United States and that is a creditor; and
            ``(E) the term `United States policyholder' means a holder 
        of an insurance policy issued in the United States.
    ``(2) Notwithstanding subsections (b) and (c), the court may not 
grant relief under subsection (b) to a foreign insurance company that 
is not engaged in the business of insurance or reinsurance in the 
United States with respect to any claim made by a United States 
creditor against--
            ``(A) a deposit required by an applicable State insurance 
        law;
            ``(B) a multibeneficiary trust required by an applicable 
        State insurance law to protect United States policyholders or 
        claimants against a foreign insurance company; or
            ``(C) a multibeneficiary trust authorized under an 
        applicable State insurance law to allow a domestic insurance 
        company that cedes reinsurance to the debtor to reflect the 
        reinsurance as an asset or deduction from liability in the 
        ceding insurer's financial statements.''.

SEC. 606. LIMITATION.

    Section 546(c)(1)(B) of title 11, United States Code, is amended by 
striking ``20'' and inserting ``45''.

SEC. 607. AMENDMENT TO SECTION 546 OF TITLE 11, UNITED STATES CODE.

    Section 546 of title 11, United States Code, is amended by 
inserting at the end thereof:
            ``(I) Notwithstanding section 545 (2) and (3) of this 
        title, the trustee may not avoid a warehouseman's lien for 
        storage, transportation or other costs incidental to the 
        storage and handling of goods, as provided by section 7-209 of 
        the Uniform Commercial Code.''.

SEC. 608. AMENDMENT TO SECTION 330(A) OF TITLE 11, UNITED STATES CODE.

    Section 330(a) of title 11, United States Code, is amended--
            (1) in subsection (3)(A) after the word ``awarded'', by 
        inserting ``to an examiner, chapter 11 trustee, or professional 
        person''; and
            (2) by adding at the end of subsection (3)(A) the 
        following:
            ``(3)(B) In determining the amount of reasonable 
        compensation to be awarded a trustee, the court shall treat 
        such compensation as a commission based on the results 
        achieved.''.

                    TITLE VII--TECHNICAL CORRECTIONS

SEC. 701. DEFINITIONS.

    Section 101 of title 11, United States Code, as amended by section 
317, is amended--
            (1) by striking ``In this title--'' and inserting ``In this 
        title:'';
            (2) in each paragraph, by inserting ``The term'' after the 
        paragraph designation;
            (3) in paragraph (35)(B), by striking ``paragraphs (21B) 
        and (33)(A)'' and inserting ``paragraphs (23) and (35)'';
            (4) in each of paragraphs (35A) and (38), by striking ``; 
        and'' at the end and inserting a period;
            (5) in paragraph (51B)--
                    (A) by inserting ``who is not a family farmer'' 
                after ``debtor'' the first place it appears; and
                    (B) by striking ``thereto having aggregate'' and 
                all that follows through the end of the paragraph;
            (6) by amending paragraph (54) to read as follows:
            ``(54) The term `transfer' means--
                    ``(A) the creation of a lien;
                    ``(B) the retention of title as a security 
                interest;
                    ``(C) the foreclosure of a debtor's equity of 
                redemption; or
                    ``(D) each mode, direct or indirect, absolute or 
                conditional, voluntary or involuntary, of disposing of 
                or parting with--
                            ``(i) property; or
                            ``(ii) an interest in property;'';
            (7) in each of paragraphs (1) through (35), in each of 
        paragraphs (36) and (37), and in each of paragraphs (40) 
        through (56A) (including paragraph (54), as amended by 
        paragraph (6) of this section), by striking the semicolon at 
        the end and inserting a period; and
            (8) by redesignating paragraphs (4) through (56A) in 
        entirely numerical sequence, so as to result in numerical 
        paragraph designations of (4) through (77), respectively.

SEC. 702. ADJUSTMENT OF DOLLAR AMOUNTS.

    Section 104 of title 11, United States Code, is amended by 
inserting ``522(f)(3), 707(b)(5),'' after ``522(d),'' each place it 
appears.

SEC. 703. EXTENSION OF TIME.

    Section 108(c)(2) of title 11, United States Code, is amended by 
striking ``922'' and all that follows through ``or'', and inserting 
``922, 1201, or''.

SEC. 704. WHO MAY BE A DEBTOR.

    Section 109(b)(2) of title 11, United States Code, is amended by 
striking ``subsection (c) or (d) of''.

SEC. 705. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE 
              BANKRUPTCY PETITIONS.

    Section 110(j)(3) of title 11, United States Code, is amended by 
striking ``attorney's'' and inserting ``attorneys' ''.

SEC. 706. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

    Section 328(a) of title 11, United States Code, is amended by 
inserting ``on a fixed or percentage fee basis,'' after ``hourly 
basis,''.

SEC. 707. SPECIAL TAX PROVISIONS.

    Section 346(g)(1)(C) of title 11, United States Code, is amended by 
striking ``, except'' and all that follows through ``1986''.

SEC. 708. EFFECT OF CONVERSION.

    Section 348(f)(2) of title 11, United States Code, is amended by 
inserting ``of the estate'' after ``property'' the first place it 
appears.

SEC. 709. AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, as amended by 
sections 326 and 401 of this Act, is amended--
            (1) in paragraph (21), by striking ``or'' at the end;
            (2) in paragraph (22), by striking the period at the end 
        and inserting a semicolon; and
            (3) by inserting after paragraph (22) the following:
            ``(23) under subsection (a) of this section of any transfer 
        that is not avoidable under section 544 and that is not 
        avoidable under section 549;
            ``(24) under subsection (a)(3) of this section, of the 
        continuation of any eviction, unlawful detainer action, or 
        similar proceeding by a lessor against a debtor involving 
        residential real property in which the debtor resides as a 
        tenant under a rental agreement and the debtor has not paid 
        rent to the lessor pursuant to the terms of the lease agreement 
        or applicable State law after the commencement and during the 
        course of the case;
            ``(25) under subsection (a)(3) of this section, of the 
        commencement or continuation of any eviction, unlawful detainer 
        action, or similar proceeding by a lessor against a debtor 
        involving residential real property in which the debtor resides 
        as a tenant under a rental agreement that has terminated 
        pursuant to the lease agreement or applicable State law;
            ``(26) under subsection (a)(3) of this section, of any 
        eviction, unlawful detainer action, or similiar proceeding, if 
        the debtor has previously filed within the last year and failed 
        to pay post-petition rent during the course of that case; or
            ``(27) under subsection (a)(3) of this section, of eviction 
        actions based on endangerment to property or person or the use 
        of illegal drugs.''.

SEC. 710. AMENDMENT TO TABLE OF SECTIONS.

    The table of sections for chapter 5 of title 11, United States 
Code, is amended by striking the item relating to section 556 and 
inserting the following:

``556. Contractual right to liquidate a commodities contract or forward 
                            contract.''.

SEC. 711. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

    Section 503(b)(4) of title 11, United States Code, is amended by 
inserting ``subparagraph (A), (B), (C), (D), or (E) of'' before 
``paragraph (3)''.

SEC. 712. PRIORITIES.

    Section 507(a) of title 11, United States Code, as amended by 
section 323 of this Act, is amended--
            (1) in paragraph (3)(B), by striking the semicolon at the 
        end and inserting a period; and
            (2) in paragraph (7), by inserting ``unsecured'' after 
        ``allowed''.

SEC. 713. EXEMPTIONS.

    Section 522 of title 11, United States Code, as amended by section 
320 of this Act, is amended--
            (1) in subsection (f)(1)(A)(ii)(II)--
                    (A) by striking ``includes a liability designated 
                as'' and inserting ``is for a liability that is 
                designated as, and is actually in the nature of,''; and
                    (B) by striking ``, unless'' and all that follows 
                through ``support''; and
            (2) in subsection (g)(2), by striking ``subsection (f)(2)'' 
        and inserting ``subsection (f)(1)(B)''.

SEC. 714. EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, is amended--
            (1) in subsection (a)(3), by striking ``or (6)'' each place 
        it appears and inserting ``(6), or (15)'';
            (2) as amended by section 304(e) of Public Law 103-394 (108 
        Stat. 4133), in paragraph (15), by transferring such paragraph 
        so as to insert it after paragraph (14) of subsection (a);
            (3) in subsection (a)(9), by inserting ``, watercraft, or 
        aircraft'' after ``motor vehicle'';
            (4) in subsection (a)(15), as so redesignated by paragraph 
        (2) of this subsection, by inserting ``to a spouse, former 
        spouse, or child of the debtor and'' after ``(15)'';
            (5) in subsection (a)(17)--
                    (A) by striking ``by a court'' and inserting ``on a 
                prisoner by any court'';
                    (B) by striking ``section 1915 (b) or (f)'' and 
                inserting ``subsection (b) or (f)(2) of section 1915''; 
                and
                    (C) by inserting ``(or a similar non-Federal law)'' 
                after ``title 28'' each place it appears; and
            (6) in subsection (e), by striking ``a insured'' and 
        inserting ``an insured''.

SEC. 715. EFFECT OF DISCHARGE.

    Section 524(a)(3) of title 11, United States Code, is amended by 
striking ``section 523'' and all that follows through ``or that'' and 
inserting ``section 523, 1228(a)(1), or 1328(a)(1) of this title, or 
that''.

SEC. 716. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

    Section 525(c) of title 11, United States Code, is amended--
            (1) in paragraph (1), by inserting ``student'' before 
        ``grant'' the second place it appears; and
            (2) in paragraph (2), by striking ``the program operated 
        under part B, D, or E of'' and inserting ``any program operated 
        under''.

SEC. 717. PROPERTY OF THE ESTATE.

    Section 541(b)(4)(B)(ii) of title 11, United States Code, is 
amended by inserting ``365 or'' before ``542''.

SEC. 718. PREFERENCES.

    Section 547 of title 11, United States Code, is amended--
            (1) in subsection (b), by striking ``subsection (c)'' and 
        inserting ``subsections (c) and (h)''; and
            (2) by adding at the end the following:
    ``(h) If the trustee avoids under subsection (b) a security 
interest given between 90 days and 1 year before the date of the filing 
of the petition, by the debtor to an entity that is not an insider for 
the benefit of a creditor that is an insider, such security interest 
shall be considered to be avoided under this section only with respect 
to the creditor that is an insider.''.

SEC. 719. POSTPETITION TRANSACTIONS.

    Section 549(c) of title 11, United States Code, is amended--
            (1) by inserting ``an interest in'' after ``transfer of'';
            (2) by striking ``such property'' and inserting ``such real 
        property''; and
            (3) by striking ``the interest'' and inserting ``such 
        interest''.

SEC. 720. TECHNICAL AMENDMENT.

    Section 552(b)(1) of title 11, United States Code, is amended by 
striking ``product'' each place it appears and inserting ``products''.

SEC. 721. DISPOSITION OF PROPERTY OF THE ESTATE.

    Section 726(b) of title 11, United States Code, is amended by 
striking ``1009,''.

SEC. 722. GENERAL PROVISIONS.

    Section 901(a) of title 11, United States Code, as amended by 
section 408, is amended by inserting ``1123(d),'' after ``1123(b),''.

SEC. 723. 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. Upon the filing of a 
report under the preceding sentence--
            ``(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.
    ``(B) In the case of any dispute arising out of an election under 
subparagraph (A), the court shall resolve the dispute.''.

SEC. 724. ABANDONMENT OF RAILROAD LINE.

    Section 1170(e)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 725. CONTENTS OF PLAN.

    Section 1172(c)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 726. DISCHARGE UNDER CHAPTER 12.

    Subsections (a) and (c) of section 1228 of title 11, United States 
Code, are amended by striking ``1222(b)(10)'' each place it appears and 
inserting ``1222(b)(9)''.

SEC. 727. EXTENSIONS.

    Section 302(d)(3) of the Bankruptcy, Judges, United States 
Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) 
is amended--
            (1) in subparagraph (A), in the matter following clause 
        (ii), by striking ``or October 1, 2002, whichever occurs 
        first''; and
            (2) in subparagraph (F)--
                    (A) in clause (i)--
                            (i) in subclause (II), by striking ``or 
                        October 1, 2002, whichever occurs first''; and
                            (ii) in the matter following subclause 
                        (II), by striking ``October 1, 2003, or''; and
                    (B) in clause (ii), in the matter following 
                subclause (II)--
                            (i) by striking ``before October 1, 2003, 
                        or''; and
                            (ii) by striking ``, whichever occurs 
                        first''.

SEC. 728. BANKRUPTCY CASES AND PROCEEDINGS.

    Section 1334(d) of title 28, United States Code, is amended--
            (1) by striking ``made under this subsection'' and 
        inserting ``made under subsection (c)''; and
            (2) by striking ``This subsection'' and inserting 
        ``Subsection (c) and this subsection''.

SEC. 729. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

    Section 156(a) of title 18, United States Code, is amended--
            (1) in the first undesignated paragraph--
                    (A) by inserting ``(1) the term'' before 
                ```bankruptcy''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (2) in the second undesignated paragraph--
                    (A) by inserting ``(2) the term'' before 
                ```document''; and
                    (B) by striking ``this title'' and inserting 
                ``title 11''.

SEC. 730. ROLLING STOCK EQUIPMENT.

    (a) In General.--Section 1168 of title 11, United States Code, is 
amended to read as follows:
``Sec. 1168. Rolling stock equipment.
    ``(a)(1) The right of a secured party with a security interest in 
or of a lessor or conditional vendor of equipment described in 
paragraph (2) to take possession of such equipment in compliance with 
an equipment security agreement, lease, or conditional sale contract, 
and to enforce any of its other rights or remedies under such security 
agreement, lease, or conditional sale contract, to sell, lease, or 
otherwise retain or dispose of such equipment, is not limited or 
otherwise affected by any other provision of this title or by any power 
of the court, except that that right to take possession and enforce 
those other rights and remedies shall be subject to section 362, if--
            ``(A) before the date that is 60 days after the date of 
        commencement of a case under this chapter, the trustee, subject 
        to the court's approval, agrees to perform all obligations of 
        the debtor under such security agreement, lease, or conditional 
        sale contract; and
            ``(B) any default, other than a default of a kind described 
        in section 365(b)(2), under such security agreement, lease, or 
        conditional sale contract--
                    ``(i) that occurs before the date of commencement 
                of the case and is an event of default therewith is 
                cured before the expiration of such 60-day period;
                    ``(ii) that occurs or becomes an event of default 
                after the date of commencement of the case and before 
                the expiration of such 60-day period is cured before 
                the later of--
                            ``(I) the date that is 30 days after the 
                        date of the default or event of the default; or
                            ``(II) the expiration of such 60-day 
                        period; and
                    ``(iii) that occurs on or after the expiration of 
                such 60-day period is cured in accordance with the 
                terms of such security agreement, lease, or conditional 
                sale contract, if cure is permitted under that 
                agreement, lease, or conditional sale contract.
    ``(2) The equipment described in this paragraph--
            ``(A) is rolling stock equipment or accessories used on 
        rolling stock equipment, including superstructures or racks, 
        that is subject to a security interest granted by, leased to, 
        or conditionally sold to a debtor; and
            ``(B) includes all records and documents relating to such 
        equipment that are required, under the terms of the security 
        agreement, lease, or conditional sale contract, that is to be 
        surrendered or returned by the debtor in connection with the 
        surrender or return of such equipment.
    ``(3) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the court's approval, to extend the 60-day period 
specified in subsection (a)(1).
    ``(c)(1) In any case under this chapter, the trustee shall 
immediately surrender and return to a secured party, lessor, or 
conditional vendor, described in subsection (a)(1), equipment described 
in subsection (a)(2), if at any time after the date of commencement of 
the case under this chapter such secured party, lessor, or conditional 
vendor is entitled pursuant to subsection (a)(1) to take possession of 
such equipment and makes a written demand for such possession of the 
trustee.
    ``(2) At such time as the trustee is required under paragraph (1) 
to surrender and return equipment described in subsection (a)(2), any 
lease of such equipment, and any security agreement or conditional sale 
contract relating to such equipment, if such security agreement or 
conditional sale contract is an executory contract, shall be deemed 
rejected.
    ``(d) With respect to equipment first placed in service on or prior 
to October 22, 1994, for purposes of this section--
            ``(1) the term `lease' includes any written agreement with 
        respect to which the lessor and the debtor, as lessee, have 
        expressed in the agreement or in a substantially 
        contemporaneous writing that the agreement is to be treated as 
        a lease for Federal income tax purposes; and
            ``(2) the term `security interest' means a purchase-money 
        equipment security interest.
    ``(e) With respect to equipment first placed in service after 
October 22, 1994, for purposes of this section, the term `rolling stock 
equipment' includes rolling stock equipment that is substantially 
rebuilt and accessories used on such equipment.''.
    (b) Aircraft Equipment and Vessels.--Section 1110 of title 11, 
United States Code, is amended to read as follows:
``Sec. 1110. Aircraft equipment and vessels
    ``(a)(1) Except as provided in paragraph (2) and subject to 
subsection (b), the right of a secured party with a security interest 
in equipment described in paragraph (3), or of a lessor or conditional 
vendor of such equipment, to take possession of such equipment in 
compliance with a security agreement, lease, or conditional sale 
contract, and to enforce any of its other rights or remedies, under 
such security agreement, lease, or conditional sale contract, to sell, 
lease, or otherwise retain or dispose of such equipment, is not limited 
or otherwise affected by any other provision of this title or by any 
power of the court.
    ``(2) The right to take possession and to enforce the other rights 
and remedies described in paragraph (1) shall be subject to section 362 
if--
            ``(A) before the date that is 60 days after the date of the 
        order for relief under this chapter, the trustee, subject to 
        the approval of the court, agrees to perform all obligations of 
        the debtor under such security agreement, lease, or conditional 
        sale contract; and
            ``(B) any default, other than a default of a kind specified 
        in section 365(b)(2), under such security agreement, lease, or 
        conditional sale contract--
                    ``(i) that occurs before the date of the order is 
                cured before the expiration of such 60-day period;
                    ``(ii) that occurs after the date of the order and 
                before the expiration of such 60-day period is cured 
                before the later of--
                            ``(I) the date that is 30 days after the 
                        date of the default; or
                            ``(II) the expiration of such 60-day 
                        period; and
                    ``(iii) that occurs on or after the expiration of 
                such 60-day period is cured in compliance with the 
                terms of such security agreement, lease, or conditional 
                sale contract, if a cure is permitted under that 
                agreement, lease, or contract.
    ``(3) The equipment described in this paragraph--
            ``(A) is--
                    ``(i) an aircraft, aircraft engine, propeller, 
                appliance, or spare part (as defined in section 40102 
                of title 49) that is subject to a security interest 
                granted by, leased to, or conditionally sold to a 
                debtor that, at the time such transaction is entered 
                into, holds an air carrier operating certificate issued 
                pursuant to chapter 447 of title 49 for aircraft 
                capable of carrying 10 or more individuals or 6,000 
                pounds or more of cargo; or
                    ``(ii) a documented vessel (as defined in section 
                30101(1) of title 46) that is subject to a security 
                interest granted by, leased to, or conditionally sold 
                to a debtor that is a water carrier that, at the time 
                such transaction is entered into, holds a certificate 
                of public convenience and necessity or permit issued by 
                the Department of Transportation; and
            ``(B) includes all records and documents relating to such 
        equipment that are required, under the terms of the security 
        agreement, lease, or conditional sale contract, to be 
        surrendered or returned by the debtor in connection with the 
        surrender or return of such equipment.
    ``(4) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the approval of the court, to extend the 60-day 
period specified in subsection (a)(1).
    ``(c)(1) In any case under this chapter, the trustee shall 
immediately surrender and return to a secured party, lessor, or 
conditional vendor, described in subsection (a)(1), equipment described 
in subsection (a)(3), if at any time after the date of the order for 
relief under this chapter such secured party, lessor, or conditional 
vendor is entitled pursuant to subsection (a)(1) to take possession of 
such equipment and makes a written demand for such possession to the 
trustee.
    ``(2) At such time as the trustee is required under paragraph (1) 
to surrender and return equipment described in subsection (a)(3), any 
lease of such equipment, and any security agreement or conditional sale 
contract relating to such equipment, if such security agreement or 
conditional sale contract is an executory contract, shall be deemed 
rejected.
    ``(d) With respect to equipment first placed in service on or 
before October 22, 1994, for purposes of this section--
            ``(1) the term `lease' includes any written agreement with 
        respect to which the lessor and the debtor, as lessee, have 
        expressed in the agreement or in a substantially 
        contemporaneous writing that the agreement is to be treated as 
        a lease for Federal income tax purposes; and
            ``(2) the term `security interest' means a purchase-money 
        equipment security interest.''.

SEC. 731. 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 estate, if the court finds 
        that the filing of the bankruptcy 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, the real property without the 
                consent of the secured creditor or court approval; or
                    ``(B) multiple bankruptcy filings affecting the 
                real property.
If recorded in compliance with applicable State laws governing notices 
of interests or liens in real property, an order entered pursuant to 
this subsection shall be binding in any other case under this title 
purporting to affect the real property filed not later than 2 years 
after that recording, except that a debtor in a subsequent case may 
move for relief from such order based upon changed circumstances or for 
good cause shown, after notice and a hearing.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 709, is amended--
            (1) in paragraph (24), by striking ``or'' at the end;
            (2) in paragraph (25) by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(26) under subsection (a) of this section, of any act to 
        enforce any lien against or security interest in real property 
        following the entry of an order under section 362(d)(4) as to 
        that property in any prior bankruptcy case for a period of 2 
        years after entry of such an order. The debtor in a subsequent 
        case, however, may move the court for relief from such order 
        based upon changed circumstances or for other good cause shown, 
        after notice and a hearing; or
            ``(27) under subsection (a) of this section, 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 bankruptcy case; or
                    ``(B) if the bankruptcy case was filed in violation 
                of a bankruptcy court order in a prior bankruptcy case 
                prohibiting the debtor from being a debtor in another 
                bankruptcy case.''.

SEC. 732. STUDY OF OPERATION OF TITLE 11 OF THE UNITED STATES CODE WITH 
              RESPECT TO SMALL BUSINESSES.

    Not later than 2 years after the date of the enactment of this Act, 
the Administrator of the Small Business Administration, in consultation 
with the Attorney General, the Director of the Administrative Office of 
United States Trustees, and the Director of the Administrative Office 
of the United States Courts, shall--
            (1) conduct a study to determine--
                    (A) the internal and external factors that cause 
                small businesses, especially sole proprietorships, to 
                become debtors in cases under title 11 of the United 
                States Code and that cause certain small businesses to 
                successfully complete cases under chapter 11 of such 
                title; and
                    (B) how Federal laws relating to bankruptcy may be 
                made more effective and efficient in assisting small 
                businesses to remain viable; and
            (2) submit to the President pro tempore of the Senate and 
        the Speaker of the House of Representatives a report 
        summarizing that study.

SEC. 733. TRANSFERS MADE BY NONPROFIT CHARITABLE CORPORATIONS.

    (a) Sale of Property of Estate.--Section 363(d) of title 11, United 
States Code, is amended--
            (1) by striking ``only'' and all that follows through the 
        end of the subsection and inserting ``only--
            ``(1) in accordance with applicable nonbankruptcy law that 
        governs the transfer of property by a corporation or trust that 
        is not a moneyed, business, or commercial corporation or trust; 
        and
            ``(2) to the extent not inconsistent with any relief 
        granted under subsection (c), (d), (e), or (f) of section 
        362''.
    (b) Confirmation of Plan for Reorganization.--Section 1129(a) of 
title 11, United States Code, is amended by adding at the end the 
following:
            ``(14) All transfers of property of the plan shall be made 
        in accordance with any applicable provisions of nonbankruptcy 
        law that govern the transfer of property by a corporation or 
        trust that is not a moneyed, business, or commercial 
        corporation or trust.''.
    (c) Transfer of Property.--Section 541 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(e) Notwithstanding any other provision of this title, property 
that is held by a debtor that is a corporation described in section 
501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax 
under section 501(a) of such Code may be transferred to an entity that 
is not such a corporation, but only under the same conditions as would 
apply if the debtor had not filed a case under this title.''.
    (d) Applicability.--The amendments made by this section shall apply 
to a case pending under title 11, United States Code, on the date of 
enactment of this Act, except that the court shall not confirm a plan 
under chapter 11 of this title without considering whether this section 
would substantially affect the rights of a party in interest who first 
acquired rights with respect to the debtor after the date of the 
petition. The parties who may appear and be heard in a proceeding under 
this section include the attorney general of the State in which the 
debtor is incorporated, was formed, or does business.

SEC. 734. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this 
title and the amendments made by this title shall take effect on the 
date of enactment of this Act.
    (b) Application of Amendments.--The amendments made by this title 
shall apply only with respect to cases commenced under title 11, United 
States Code, on or after the date of enactment of this Act.

            Attest:

                                                             Secretary.
105th CONGRESS

  2d Session

                               H. R. 3150

_______________________________________________________________________

                               AMENDMENT

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