Summary: H.R.1800 — 98th Congress (1983-1984)All Information (Except Text)

There is one summary for H.R.1800. Bill summaries are authored by CRS.

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Introduced in House (03/02/1983)

Title I: Consumer Credit - Consumer Debtor Bankruptcy Amendments Act of 1983 - Amends the Bankruptcy Code to permit a bankruptcy court to dismiss a case or suspend all proceedings if it determines that a debtor whose debts are primarily consumer debts does not need the provisions of the chapter under which relief has been sought and the granting of relief under such chapter would be a substantial abuse of its provisions.

Requires the Clerk of each Federal judicial district to compile statistics regarding debtors where debts are primarily consumer debts.

Requires the bankruptcy judge to convene, and permits such judge to preside at, any meeting of creditors and to perform such additional judicial duties as may be required.

Declares that the value of the creditor's interest in the estate's interest in consumer goods property shall be determined in light of the purpose of the valuation and of the proposed disposition or use of such property, and in conjunction with any hearing on such disposition or use or on a plan effecting such creditor's interest. Declares that the value of consumer goods which the debtor seeks to redeem in liquidation shall be presumed to be the established resale market price, if such market exists. Permits the court to utilize other methods of valuation if no such market exists or if the court determines that resale value is inappropriate in light of the property's proposed use or disposition.

Requires the debtor in bankruptcy cases to file a statement of estimated income and expenses for the year following filing of his petition. Requires the debtor, if the schedule of assets and liabilities include consumer debts secured by property of the estate, to file and serve upon each creditor holding such security and upon the trustee, a statement expressing the debtor's intention with respect to retention or surrender of the collateral.

Requires the debtor, at or before the meeting of creditors provided for by such title, to perform his intention with regard to such secured creditors.

Requires that the notice of meeting of the creditors be accompanied by a copy of the statement of estimated income and expenses and that the debtor supply the clerk of the court, upon the filing of the petition, with enough copies of such statement to accommodate the listed creditors.

Requires individuals filing for bankruptcy in joint or consolidated cases to elect either the Federal or State exemptions. Places an aggregate limit of $3,000 on the value of the exemption with regard to household goods and personal effects.

Prohibits the debtor from utilizing the unused dollar value of the homestead exemption to exempt additional property not explicitly provided for by such Act.

Repeals the provisions of such Act which currently authorize the debtor to avoid nonpurchase money security interest in property.

Presumes nondischargeable any debt incurred on or within 40 days before the date of the filing of a petition under such title. Allows for rebuttal of such presumption.

Allows creditors to enforce liens which have not been avoided in bankruptcy.

Permits reaffirmation of consumer debts subject to the debtor's right to rescind any such agreement within 60 days or until a discharge is received, whichever occurs later.

Declares that at the meeting of creditors the court shall inform the debtor of the nature and effect of a discharge and of any reaffirmation of debt.

Prohibits the custodian from being an assignee under a general assignment for the benefit of the debtor's creditors that was appointed or took possession more than 120 days before the date of the filing of the petition. Permits the trustee or the court, however, to require such an assignee to file an accounting.

Limits the trustee's power to avoid liens or recover payments made within 90 days of the filing of the petition in bankruptcy (within one year in the case of an insider) unless the creditor had reasonable cause to believe the debtor was insolvent.

Permits the court, upon notice and hearing, to require a creditor to accept payments in redemption of the value of a claim secured by a nonpossessory, nonpurchase money security interest in tangible personal property, over a reasonable period not to exceed five years, if such tangible personal property consists of specified household goods and tools of the debtor's trade.

Permits the court, upon notice and hearing, to avoid any lien in whole or in part, if the court finds;: (1) that the debtor has no reasonable ability to pay the redemption value of such property out of anticipated future income; and (2) the enforcement of such lien would impose undue hardship on the debtor.

Allows a creditor, upon 10 days notice to the debtor and codebtor, to collect any portion of a debt from the codebtor which is not being paid by the debtor through the adjustment of debts of such debtor with a regular income.

Requires payments under an adjustment of debts payment plan to commence within thirty days after the filing of the plan. Provides for the return of such funds after deducting the costs of administration if no plan is confirmed.

Provides for the separate classification of codebtor claims and non-dischargeable claims and authorizes payment of them under an adjustment of debts payment plan.

Allows a debtor to choose such a repayment plan of up to five years.

Bases such repayment upon the debtor's ability to repay out of future income after taking into account the basic living necessities for the debtor and dependents.

Provides for an early discharge of debts where a reasonable portion of unsecured claims are paid.

Permits a hardship discharge of otherwise non-dischargeable debts to the extent the debtor attempted to pay such debts under an adjustment of debts payment plan, but was prevented from so doing by unforeseen circumstances.

Title II: Agricultural Produce - Agricultural Produce Bailment Bankruptcy Amendments Act of 1983 - Requires bankruptcy courts to give priority to allowed unsecured claims of farmers arising from the sale or conversion of farm produce to or by a debtor who operates a farm produce storage facility. Specifies that such sale or conversion must have occurred within 180 days before the filing of the petition or before the cessation of the debtor's business, whichever occurs first. Limits the payment of any such claim to $2,000 per individual.

Permits a bankruptcy court to expedite the procedures for determining interests in and the disposition of grain and proceeds held by debtors who own or operate grain storage facilities. Requires the court to expedite such procedures if requested by a trustee or a claimant.

Sets forth factors for the court to consider before deciding whether to shorten the time periods for procedures. Lists the procedures which may be expedited. Specifies administration details.

Title III: Miscellaneous - Declares that if any provision of this Act or the application thereof to any person or circumstances is held invalid the provisions of every other part and their application shall not be affected thereby.

Makes the provisions of this Act effective 90 days after enactment.

Declares that the amendments made by this Act shall not apply to cases pending before the date of enactment.