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106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-970

======================================================================



 
                     BANKRUPTCY REFORM ACT OF 2000

                                _______
                                

                October 11, 2000.--Ordered to be printed

                                _______
                                

  Mr. Hyde, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2415]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2415), an Act to enhance security of United States missions and 
personnel overseas, to authorize appropriations for the 
Department of State for fiscal year 2000, and for other 
purposes, having met, after full and free conference, have 
agreed to recommend and do recommend to their respective Houses 
as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. ENACTMENT OF BANKRUPTCY REFORM ACT OF 2000.

      The provisions of S. 3186 of the 106th Congress, as 
introduced on October 11, 2000, are hereby enacted into law.

SEC. 2. PUBLICATION OF ACT.

      In publishing this Act in slip form and in the United 
States Statutes at Large pursuant to section 112 of title 1, 
United States Code, the Archivist of the United States shall 
include after the date of approval an appendix setting forth 
the provisions referred to in section 1.
      And the Senate agree to the same.
                                   Henry Hyde,
                                   George W. Gekas,
                                   Dick Armey,
                                 Managers on the Part of the House.

                                   Jesse Helms,
                                   Richard G. Lugar,
                                   Rod Grams,
                                   Joe Biden,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 2415) an Act to 
enhance security of United States missions and personnel 
overseas, to authorize appropriations for the Department of 
State for fiscal year 2000, and for other purposes, submit the 
following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:
      The Senate amendment struck out all of the House bill 
after the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment which is a substitute for the 
House bill and the Senate amendment.
      The conference agreement would enact the provision of S. 
3186 of the 106th Congress, as introduced on October 11, 2000. 
The text of that bill follows:

SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Bankruptcy 
Reform Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

Sec. 100. Short title; references; table of contents.

                     TITLE I--NEEDS-BASED BANKRUPTCY

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Sense of Congress and study.
Sec. 104. Notice of alternatives.
Sec. 105. Debtor financial management training test program.
Sec. 106. Credit counseling.
Sec. 107. Schedules of reasonable and necessary expenses.

                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

Sec. 201. Promotion of alternative dispute resolution.
Sec. 202. Effect of discharge.
Sec. 203. Discouraging abuse of reaffirmation practices.

                   Subtitle B--Priority Child Support

Sec. 211. Definition of domestic support obligation.
Sec. 212. Priorities for claims for domestic support obligations.
Sec. 213. Requirements to obtain confirmation and discharge in cases 
          involving domestic support obligations.
Sec. 214. Exceptions to automatic stay in domestic support obligation 
          proceedings.
Sec. 215. Nondischargeability of certain debts for alimony, maintenance, 
          and support.
Sec. 216. Continued liability of property.
Sec. 217. Protection of domestic support claims against preferential 
          transfer motions.
Sec. 218. Disposable income defined.
Sec. 219. Collection of child support.
Sec. 220. Nondischargeability of certain educational benefits and loans.

                 Subtitle C--Other Consumer Protections

Sec. 221. Amendments to discourage abusive bankruptcy filings.
Sec. 222. Sense of Congress.
Sec. 223. Additional amendments to title 11, United States Code.
Sec. 224. Protection of retirement savings in bankruptcy.
Sec. 225. Protection of education savings in bankruptcy.
Sec. 226. Definitions.
Sec. 227. Restrictions on debt relief agencies.
Sec. 228. Disclosures.
Sec. 229. Requirements for debt relief agencies.
Sec. 230. GAO study.

                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

Sec. 301. Reinforcement of the fresh start.
Sec. 302. Discouraging bad faith repeat filings.
Sec. 303. Curbing abusive filings.
Sec. 304. Debtor retention of personal property security.
Sec. 305. Relief from the automatic stay when the debtor does not 
          complete intended surrender of consumer debt collateral.
Sec. 306. Giving secured creditors fair treatment in chapter 13.
Sec. 307. Domiciliary requirements for exemptions.
Sec. 308. Residency requirement for homestead exemption.
Sec. 309. Protecting secured creditors in chapter 13 cases.
Sec. 310. Limitation on luxury goods.
Sec. 311. Automatic stay.
Sec. 312. Extension of period between bankruptcy discharges.
Sec. 313. Definition of household goods and antiques.
Sec. 314. Debt incurred to pay nondischargeable debts.
Sec. 315. Giving creditors fair notice in chapters 7 and 13 cases.
Sec. 316. Dismissal for failure to timely file schedules or provide 
          required information.
Sec. 317. Adequate time to prepare for hearing on confirmation of the 
          plan.
Sec. 318. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 319. Sense of Congress regarding expansion of rule 9011 of the 
          Federal Rules of Bankruptcy Procedure.
Sec. 320. Prompt relief from stay in individual cases.
Sec. 321. Chapter 11 cases filed by individuals.
Sec. 322. Limitation.
Sec. 323. Excluding employee benefit plan participant contributions and 
          other property from the estate.
Sec. 324. Exclusive jurisdiction in matters involving bankruptcy 
          professionals.
Sec. 325. United States trustee program filing fee increase.
Sec. 326. Sharing of compensation.
Sec. 327. Fair valuation of collateral.
Sec. 328. Defaults based on nonmonetary obligations.

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

Sec. 401. Adequate protection for investors.
Sec. 402. Meetings of creditors and equity security holders.
Sec. 403. Protection of refinance of security interest.
Sec. 404. Executory contracts and unexpired leases.
Sec. 405. Creditors and equity security holders committees.
Sec. 406. Amendment to section 546 of title 11, United States Code.
Sec. 407. Amendments to section 330(a) of title 11, United States Code.
Sec. 408. Postpetition disclosure and solicitation.
Sec. 409. Preferences.
Sec. 410. Venue of certain proceedings.
Sec. 411. Period for filing plan under chapter 11.
Sec. 412. Fees arising from certain ownership interests.
Sec. 413. Creditor representation at first meeting of creditors.
Sec. 414. Definition of disinterested person.
Sec. 415. Factors for compensation of professional persons.
Sec. 416. Appointment of elected trustee.
Sec. 417. Utility service.
Sec. 418. Bankruptcy fees.
Sec. 419. More complete information regarding assets of the estate.

            Subtitle B--Small Business Bankruptcy Provisions

Sec. 431. Flexible rules for disclosure statement and plan.
Sec. 432. Definitions.
Sec. 433. Standard form disclosure statement and plan.
Sec. 434. Uniform national reporting requirements.
Sec. 435. Uniform reporting rules and forms for small business cases.
Sec. 436. Duties in small business cases.
Sec. 437. Plan filing and confirmation deadlines.
Sec. 438. Plan confirmation deadline.
Sec. 439. Duties of the United States trustee.
Sec. 440. Scheduling conferences.
Sec. 441. Serial filer provisions.
Sec. 442. Expanded grounds for dismissal or conversion and appointment 
          of trustee.
Sec. 443. Study of operation of title 11, United States Code, with 
          respect to small businesses.
Sec. 444. Payment of interest.
Sec. 445. Priority for administrative expenses.

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.

                        TITLE VI--BANKRUPTCY DATA

Sec. 601. Improved bankruptcy statistics.
Sec. 602. Uniform rules for the collection of bankruptcy data.
Sec. 603. Audit procedures.
Sec. 604. Sense of Congress regarding availability of bankruptcy data.

                  TITLE VII--BANKRUPTCY TAX PROVISIONS

Sec. 701. Treatment of certain liens.
Sec. 702. Treatment of fuel tax claims.
Sec. 703. Notice of request for a determination of taxes.
Sec. 704. Rate of interest on tax claims.
Sec. 705. Priority of tax claims.
Sec. 706. Priority property taxes incurred.
Sec. 707. No discharge of fraudulent taxes in chapter 13.
Sec. 708. No discharge of fraudulent taxes in chapter 11.
Sec. 709. Stay of tax proceedings limited to prepetition taxes.
Sec. 710. Periodic payment of taxes in chapter 11 cases.
Sec. 711. Avoidance of statutory tax liens prohibited.
Sec. 712. Payment of taxes in the conduct of business.
Sec. 713. Tardily filed priority tax claims.
Sec. 714. Income tax returns prepared by tax authorities.
Sec. 715. Discharge of the estate's liability for unpaid taxes.
Sec. 716. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 717. Standards for tax disclosure.
Sec. 718. Setoff of tax refunds.
Sec. 719. Special provisions related to the treatment of State and local 
          taxes.
Sec. 720. Dismissal for failure to timely file tax returns.

           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 801. Amendment to add chapter 15 to title 11, United States Code.
Sec. 802. Other amendments to titles 11 and 28, United States Code.

                 TITLE IX--FINANCIAL CONTRACT PROVISIONS

Sec. 901. Treatment of certain agreements by conservators or receivers 
          of insured depository institutions.
Sec. 902. Authority of the corporation with respect to failed and 
          failing institutions.
Sec. 903. Amendments relating to transfers of qualified financial 
          contracts.
Sec. 904. Amendments relating to disaffirmance or repudiation of 
          qualified financial contracts.
Sec. 905. Clarifying amendment relating to master agreements.
Sec. 906. Federal Deposit Insurance Corporation Improvement Act of 1991.
Sec. 907. Bankruptcy Code amendments.
Sec. 908. Recordkeeping requirements.
Sec. 909. Exemptions from contemporaneous execution requirement.
Sec. 910. Damage measure.
Sec. 911. SIPC stay.
Sec. 912. Asset-backed securitizations.
Sec. 913. Effective date; application of amendments.

                  TITLE X--PROTECTION OF FAMILY FARMERS

Sec. 1001. Permanent reenactment of chapter 12.
Sec. 1002. Debt limit increase.
Sec. 1003. Certain claims owed to governmental units.

               TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

Sec. 1101. Definitions.
Sec. 1102. Disposal of patient records.
Sec. 1103. Administrative expense claim for costs of closing a health 
          care business and other administrative expenses.
Sec. 1104. Appointment of ombudsman to act as patient advocate.
Sec. 1105. Debtor in possession; duty of trustee to transfer patients.
Sec. 1106. Exclusion from program participation not subject to automatic 
          stay.

                     TITLE XII--TECHNICAL AMENDMENTS

Sec. 1201. Definitions.
Sec. 1202. Adjustment of dollar amounts.
Sec. 1203. Extension of time.
Sec. 1204. Technical amendments.
Sec. 1205. Penalty for persons who negligently or fraudulently prepare 
          bankruptcy petitions.
Sec. 1206. Limitation on compensation of professional persons.
Sec. 1207. Effect of conversion.
Sec. 1208. Allowance of administrative expenses.
Sec. 1209. Exceptions to discharge.
Sec. 1210. Effect of discharge.
Sec. 1211. Protection against discriminatory treatment.
Sec. 1212. Property of the estate.
Sec. 1213. Preferences.
Sec. 1214. Postpetition transactions.
Sec. 1215. Disposition of property of the estate.
Sec. 1216. General provisions.
Sec. 1217. Abandonment of railroad line.
Sec. 1218. Contents of plan.
Sec. 1219. Discharge under chapter 12.
Sec. 1220. Bankruptcy cases and proceedings.
Sec. 1221. Knowing disregard of bankruptcy law or rule.
Sec. 1222. Transfers made by nonprofit charitable corporations.
Sec. 1223. Protection of valid purchase money security interests.
Sec. 1224. Extensions.
Sec. 1225. Bankruptcy judgeships.
Sec. 1226. Compensating trustees.
Sec. 1227. Amendment to section 362 of title 11, United States Code.
Sec. 1228. Judicial education.
Sec. 1229. Reclamation.
Sec. 1230. Providing requested tax documents to the court.
Sec. 1231. Encouraging creditworthiness.
Sec. 1232. Property no longer subject to redemption.
Sec. 1233. Trustees.
Sec. 1234. Bankruptcy forms.
Sec. 1235. Expedited appeals of bankruptcy cases to courts of appeals.
Sec. 1236. Exemptions.

                 TITLE XIII--CONSUMER CREDIT DISCLOSURE

Sec. 1301. Enhanced disclosures under an open end credit plan.
Sec. 1302. Enhanced disclosure for credit extensions secured by a 
          dwelling.
Sec. 1303. Disclosures related to ``introductory rates''.
Sec. 1304. Internet-based credit card solicitations.
Sec. 1305. Disclosures related to late payment deadlines and penalties.
Sec. 1306. Prohibition on certain actions for failure to incur finance 
          charges.
Sec. 1307. Dual use debit card.
Sec. 1308. Study of bankruptcy impact of credit extended to dependent 
          students.
Sec. 1309. Clarification of clear and conspicuous.
Sec. 1310. Enforcement of certain foreign judgments barred.

      TITLE XIV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 1401. 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 
                    11 or 13'';

        and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) in paragraph (1), as redesignated by 
                subparagraph (A) of this paragraph--
                            (i) in the first sentence--
                                    (I) by striking ``but not 
                                at the request or suggestion 
                                of'' and inserting ``trustee, 
                                bankruptcy administrator, or'';
                                    (II) by inserting ``, or, 
                                with the debtor's consent, 
                                convert such a case to a case 
                                under chapter 11 or 13 of this 
                                title,'' after ``consumer 
                                debts''; and
                                    (III) by striking ``a 
                                substantial abuse'' and 
                                inserting ``an abuse''; and
                            (ii) by striking the next to last 
                        sentence; and
                    (C) by adding at the end the following:
    ``(2)(A)(i) In considering under paragraph (1) whether the 
granting of relief would be an abuse of the provisions of this 
chapter, the court shall presume abuse exists if the debtor's 
current monthly income reduced by the amounts determined under 
clauses (ii), (iii), and (iv), and multiplied by 60 is not less 
than the lesser of--
            ``(I) 25 percent of the debtor's nonpriority 
        unsecured claims in the case, or $6,000, whichever is 
        greater; or
            ``(II) $10,000.
    ``(ii)(I) The debtor's monthly expenses shall be the 
debtor's applicable monthly expense amounts specified under the 
National Standards and Local Standards, and the debtor's actual 
monthly expenses for the categories specified as Other 
Necessary Expenses issued by the Internal Revenue Service for 
the area in which the debtor resides, as in effect on the date 
of the entry of the order for relief, for the debtor, the 
dependents of the debtor, and the spouse of the debtor in a 
joint case, if the spouse is not otherwise a dependent. 
Notwithstanding any other provision of this clause, the monthly 
expenses of the debtor shall not include any payments for 
debts. In addition, the debtor's monthly expenses shall include 
the debtor's reasonably necessary expenses incurred to maintain 
the safety of the debtor and the family of the debtor from 
family violence as identified under section 309 of the Family 
Violence Prevention and Services Act (42 U.S.C. 10408), or 
other applicable Federal law. The expenses included in the 
debtor's monthly expenses described in the preceding sentence 
shall be kept confidential by the court. In addition, if it is 
demonstrated that it is reasonable and necessary, the debtor's 
monthly expenses may also include an additional allowance for 
food and clothing of up to 5 percent of the food and clothing 
categories as specified by the National Standards issued by the 
Internal Revenue Service.
    ``(II) In addition, the debtor's monthly expenses may 
include, if applicable, the continuation of actual expenses 
paid by the debtor that are reasonable and necessary for care 
and support of an elderly, chronically ill, or disabled 
household member or member of the debtor's immediate family 
(including parents, grandparents, and siblings of the debtor, 
the dependents of the debtor, and the spouse of the debtor in a 
joint case) who is not a dependent and who is unable to pay for 
such reasonable and necessary expenses.
    ``(III) In addition, for a debtor eligible for chapter 13, 
the debtor's monthly expenses may include the actual 
administrative expenses of administering a chapter 13 plan for 
the district in which the debtor resides, up to an amount of 10 
percent of the projected plan payments, as determined under 
schedules issued by the Executive Office for United States 
Trustees.
    ``(IV) In addition, the debtor's monthly expenses may 
include the actual expenses for each dependent child under the 
age of 18 years up to $1,500 per year per child to attend a 
private elementary or secondary school, if the debtor provides 
documentation of such expenses and a detailed explanation of 
why such expenses are reasonable and necessary.
    ``(iii) The debtor's average monthly payments on account of 
secured debts shall be calculated as--
            ``(I) the sum of--
                    ``(aa) the total of all amounts scheduled 
                as contractually due to secured creditors in 
                each month of the 60 months following the date 
                of the petition; and
                    ``(bb) any additional payments to secured 
                creditors necessary for the debtor, in filing a 
                plan under chapter 13 of this title, to 
                maintain possession of the debtor's primary 
                residence, motor vehicle, or other property 
                necessary for the support of the debtor and the 
                debtor's dependents, that serves as collateral 
                for secured debts; divided by
            ``(II) 60.
    ``(iv) The debtor's expenses for payment of all priority 
claims (including priority child support and alimony claims) 
shall be calculated as--
            ``(I) the total amount of debts entitled to 
        priority; divided by
            ``(II) 60.
    ``(B)(i) In any proceeding brought under this subsection, 
the presumption of abuse may only be rebutted by demonstrating 
special circumstances that justify additional expenses or 
adjustments of current monthly income for which there is no 
reasonable alternative.
    ``(ii) In order to establish special circumstances, the 
debtor shall be required to--
            ``(I) itemize each additional expense or adjustment 
        of income; and
            ``(II) provide--
                    ``(aa) documentation for such expense or 
                adjustment to income; and
                    ``(bb) a detailed explanation of the 
                special circumstances that make such expenses 
                or adjustment to income necessary and 
                reasonable.
    ``(iii) The debtor shall attest under oath to the accuracy 
of any information provided to demonstrate that additional 
expenses or adjustments to income are required.
    ``(iv) The presumption of abuse may only be rebutted if the 
additional expenses or adjustments to income referred to in 
clause (i) cause the product of the debtor's current monthly 
income reduced by the amounts determined under clauses (ii), 
(iii), and (iv) of subparagraph (A) when multiplied by 60 to be 
less than the lesser of--
            ``(I) 25 percent of the debtor's nonpriority 
        unsecured claims, or $6,000, whichever is greater; or
            ``(II) $10,000.
    ``(C) As part of the schedule of current income and 
expenditures required under section 521, the debtor shall 
include a statement of the debtor's current monthly income, and 
the calculations that determine whether a presumption arises 
under subparagraph (A)(i), that shows how each such amount is 
calculated.
    ``(3) In considering under paragraph (1) whether the 
granting of relief would be an abuse of the provisions of this 
chapter in a case in which the presumption in subparagraph 
(A)(i) of such paragraph does not apply or has been rebutted, 
the court shall consider--
            ``(A) whether the debtor filed the petition in bad 
        faith; or
            ``(B) the totality of the circumstances (including 
        whether the debtor seeks to reject a personal services 
        contract and the financial need for such rejection as 
        sought by the debtor) of the debtor's financial 
        situation demonstrates abuse.
    ``(4)(A) The court shall order the counsel for the debtor 
to reimburse the trustee for all reasonable costs in 
prosecuting a motion brought under section 707(b), including 
reasonable attorneys' fees, if--
            ``(i) a trustee appointed under section 586(a)(1) 
        of title 28 or from a panel of private trustees 
        maintained by the bankruptcy administrator brings a 
        motion for dismissal or conversion under this 
        subsection; and
            ``(ii) the court--
                    ``(I) grants that motion; and
                    ``(II) finds that the action of the counsel 
                for the debtor in filing under this chapter 
                violated rule 9011 of the Federal Rules of 
                Bankruptcy Procedure.
    ``(B) If the court finds that the attorney for the debtor 
violated rule 9011 of the Federal Rules of Bankruptcy 
Procedure, 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 
        trustee, the United States trustee, or the bankruptcy 
        administrator.
    ``(C) In the case of a petition, pleading, or written 
motion, the signature of an attorney shall constitute a 
certification that the attorney has--
            ``(i) performed a reasonable investigation into the 
        circumstances that gave rise to the petition, pleading, 
        or written motion; and
            ``(ii) determined that the petition, pleading, or 
        written motion--
                    ``(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).
    ``(D) The signature of an attorney on the petition shall 
constitute a certification that the attorney has no knowledge 
after an inquiry that the information in the schedules filed 
with such petition is incorrect.
    ``(5)(A) Except as provided in subparagraph (B) and subject 
to paragraph (6), the court may award a debtor all reasonable 
costs (including reasonable attorneys' fees) in contesting a 
motion brought by a party in interest (other than a trustee, 
United States trustee, or bankruptcy administrator) under this 
subsection 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 violated rule 9011 of the 
                Federal Rules of Bankruptcy Procedure; 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 small business that has a claim of an aggregate 
amount less than $1,000 shall not be subject to subparagraph 
(A)(ii)(I).
    ``(C) For purposes of this paragraph--
            ``(i) the term `small business' means an 
        unincorporated business, partnership, corporation, 
        association, or organization that--
                    ``(I) has less than 25 full-time employees 
                as determined on the date the motion is filed; 
                and
                    ``(II) is engaged in commercial or business 
                activity; and
            ``(ii) the number of employees of a wholly owned 
        subsidiary of a corporation includes the employees of--
                    ``(I) a parent corporation; and
                    ``(II) any other subsidiary corporation of 
                the parent corporation.
    ``(6) Only the judge, United States trustee, or bankruptcy 
administrator may bring a motion under section 707(b), if the 
current monthly income of the debtor, or in a joint case, the 
debtor and the debtor's spouse, as of the date of the order for 
relief, when multiplied by 12, is equal to or less than--
            ``(A) in the case of a debtor in a household of 1 
        person, the median family income of the applicable 
        State for 1 earner last reported by the Bureau of the 
        Census;
            ``(B) in the case of a debtor in a household of 2, 
        3, or 4 individuals, the highest median family income 
        of the applicable State for a family of the same number 
        or fewer individuals last reported by the Bureau of the 
        Census; or
            ``(C) in the case of a debtor in a household 
        exceeding 4 individuals, the highest median family 
        income of the applicable State for a family of 4 or 
        fewer individuals last reported by the Bureau of the 
        Census, plus $525 per month for each individual in 
        excess of 4.
    ``(7) No judge, United States trustee, panel trustee, 
bankruptcy administrator or other party in interest may bring a 
motion under paragraph (2), if the current monthly income of 
the debtor and the debtor's spouse combined, as of the date of 
the order for relief when multiplied by 12, is equal to or less 
than--
            ``(A) in the case of a debtor in a household of 1 
        person, the median family income of the applicable 
        State for 1 earner last reported by the Bureau of the 
        Census;
            ``(B) in the case of a debtor in a household of 2, 
        3, or 4 individuals, the highest median family income 
        of the applicable State for a family of the same number 
        or fewer individuals last reported by the Bureau of the 
        Census; or
            ``(C) in the case of a debtor in a household 
        exceeding 4 individuals, the highest median family 
        income of the applicable State for a family of 4 or 
        fewer individuals last reported by the Bureau of the 
        Census, plus $525 per month for each individual in 
        excess of 4.''.
    (b) Definition.--Section 101 of title 11, United States 
Code, is amended by inserting after paragraph (10) the 
following:
            ``(10A) `current monthly income'--
                    ``(A) means the average monthly income from 
                all sources which the debtor, or in a joint 
                case, the debtor and the debtor's spouse, 
                receive without regard to whether the income is 
                taxable income, derived during the 6-month 
                period preceding the date of determination; and
                    ``(B) includes any amount paid by any 
                entity other than the debtor (or, in a joint 
                case, the debtor and the debtor's spouse), on a 
                regular basis to the household expenses of the 
                debtor or the debtor's dependents (and, in a 
                joint case, the debtor's spouse if not 
                otherwise a dependent), but excludes benefits 
                received under the Social Security Act and 
                payments to victims of war crimes or crimes 
                against humanity on account of their status as 
                victims of such crimes;''.
    (c) United States Trustee and Bankruptcy Administrator 
Duties.--Section 704 of title 11, United States Code, is 
amended--
            (1) by inserting ``(a)'' before ``The trustee 
        shall--''; and
            (2) by adding at the end the following:
    ``(b)(1) With respect to an individual debtor under this 
chapter--
            ``(A) the United States trustee or bankruptcy 
        administrator shall review all materials filed by the 
        debtor and, not later than 10 days after the date of 
        the first meeting of creditors, file with the court a 
        statement as to whether the debtor's case would be 
        presumed to be an abuse under section 707(b); and
            ``(B) not later than 5 days after receiving a 
        statement under subparagraph (A), the court shall 
        provide a copy of the statement to all creditors.
    ``(2) The United States trustee or bankruptcy administrator 
shall, not later than 30 days after the date of filing a 
statement under paragraph (1), either file a motion to dismiss 
or convert under section 707(b) or file a statement setting 
forth the reasons the United States trustee or bankruptcy 
administrator does not believe that such a motion would be 
appropriate, if the United States trustee or bankruptcy 
administrator determines that the debtor's case should be 
presumed to be an abuse under section 707(b) and the product of 
the debtor's current monthly income, multiplied by 12 is not 
less than--
            ``(A) in the case of a debtor in a household of 1 
        person, the median family income of the applicable 
        State for 1 earner last reported by the Bureau of the 
        Census; or
            ``(B) in the case of a debtor in a household of 2 
        or more individuals, the highest median family income 
        of the applicable State for a family of the same number 
        or fewer individuals last reported by the Bureau of the 
        Census.
    ``(3) In any case in which a motion to dismiss or convert, 
or a statement is required to be filed by this subsection, the 
United States trustee or bankruptcy administrator may decline 
to file a motion to dismiss or convert pursuant to section 
704(b)(2) if the product of the debtor's current monthly income 
multiplied by 12 exceeds 100 percent, but does not exceed 150 
percent of--
            ``(A)(i) in the case of a debtor in a household of 
        1 person, the median family income of the applicable 
        State for 1 earner last reported by the Bureau of the 
        Census; or
            ``(ii) in the case of a debtor in a household of 2 
        or more individuals, the highest median family income 
        of the applicable State for a family of the same number 
        or fewer individuals last reported by the Bureau of the 
        Census; and
            ``(B) the product of the debtor's current monthly 
        income, reduced by the amounts determined under section 
        707(b)(2)(A)(ii) (except for the amount calculated 
        under the other necessary expenses standard issued by 
        the Internal Revenue Service) and clauses (iii) and 
        (iv) of section 707(b)(2)(A), multiplied by 60 is less 
        than the lesser of--
                    ``(i) 25 percent of the debtor's 
                nonpriority unsecured claims in the case or 
                $6,000, whichever is greater; or
                    ``(ii) $10,000.''.
    (d) Notice.--Section 342 of title 11, United States Code, 
is amended by adding at the end the following:
    ``(d) In an individual case under chapter 7 in which the 
presumption of abuse is triggered under section 707(b), the 
clerk shall give written notice to all creditors not later than 
10 days after the date of the filing of the petition that the 
presumption of abuse has been triggered.''.
    (e) Nonlimitation of Information.--Nothing in this title 
shall limit the ability of a creditor to provide information to 
a judge (except for information communicated ex parte, unless 
otherwise permitted by applicable law), United States trustee, 
bankruptcy administrator or trustee.
    (f) Dismissal for Certain Crimes.--Section 707 of title 11, 
United States Code, as amended by this section, is amended by 
adding at the end the following:
    ``(c)(1) In this subsection--
            ``(A) the term `crime of violence' has the meaning 
        given that term in section 16 of title 18; and
            ``(B) the term `drug trafficking crime' has the 
        meaning given that term in section 924(c)(2) of title 
        18.
    ``(2) Except as provided in paragraph (3), after notice and 
a hearing, the court, on a motion by the victim of a crime of 
violence or a drug trafficking crime, may when it is in the 
best interest of the victims dismiss a voluntary case filed by 
an individual debtor under this chapter if that individual was 
convicted of that crime.
    ``(3) The court may not dismiss a case under paragraph (2) 
if the debtor establishes by a preponderance of the evidence 
that the filing of a case under this chapter is necessary to 
satisfy a claim for a domestic support obligation.''.
    (g) Confirmation of Plan.--Section 1325(a) of title 11, 
United States Code, is amended--
            (1) in paragraph (5), by striking ``and'' at the 
        end;
            (2) in paragraph (6), by striking the period and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(7) the action of the debtor in filing the 
        petition was in good faith;''.
    (h) Applicability of Means Test to Chapter 13.--Section 
1325(b) of title 11, United States Code, is amended--
            (1) in paragraph (1)(B), by inserting ``to 
        unsecured creditors'' after ``to make payments''; and
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) For purposes of this subsection, the term 
        `disposable income' means current monthly income 
        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 to the extent reasonably 
        necessary to be expended for such child) less amounts 
        reasonably necessary to be expended--
                    ``(A) for the maintenance or support of the 
                debtor or a dependent of the debtor or for a 
                domestic support obligation that first becomes 
                payable after the date the petition is filed 
                and for charitable contributions (that meet the 
                definition of `charitable contribution' under 
                section 548(d)(3) to a qualified religious or 
                charitable entity or organization (as that term 
                is defined in section 548(d)(4)) in an amount 
                not to exceed 15 percent of gross income of the 
                debtor for the year in which the contributions 
                are made; and
                    ``(B) if the debtor is engaged in business, 
                for the payment of expenditures necessary for 
                the continuation, preservation, and operation 
                of such business.
            ``(3) Amounts reasonably necessary to be expended 
        under paragraph (2) shall be determined in accordance 
        with subparagraphs (A) and (B) of section 707(b)(2), if 
        the debtor has current monthly income, when multiplied 
        by 12, greater than--
                    ``(A) in the case of a debtor in a 
                household of 1 person, the median family income 
                of the applicable State for 1 earner last 
                reported by the Bureau of the Census;
                    ``(B) in the case of a debtor in a 
                household of 2, 3, or 4 individuals, the 
                highest median family income of the applicable 
                State for a family of the same number or fewer 
                individuals last reported by the Bureau of the 
                Census; or
                    ``(C) in the case of a debtor in a 
                household exceeding 4 individuals, the highest 
                median family income of the applicable State 
                for a family of 4 or fewer individuals last 
                reported by the Bureau of the Census, plus $525 
                per month for each individual in excess of 
                4.''.
    (i) Clerical Amendment.--The table of sections for 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 11 or 
          13.''.

SEC. 103. SENSE OF CONGRESS AND STUDY.

    (a) Sense of Congress.--It is the sense of Congress that 
the Secretary of the Treasury has the authority to alter the 
Internal Revenue Service standards established to set 
guidelines for repayment plans as needed to accommodate their 
use under section 707(b) of title 11, United States Code.
    (b) Study.--
            (1) In general.--Not later than 2 years after the 
        date of enactment of this Act, the Director of the 
        Executive Office for United States Trustees shall 
        submit a report to the Committee on the Judiciary of 
        the Senate and the Committee on the Judiciary of the 
        House of Representatives containing the findings of the 
        Director regarding the utilization of Internal Revenue 
        Service standards for determining--
                    (A) the current monthly expenses of a 
                debtor under section 707(b) of title 11, United 
                States Code; and
                    (B) the impact that the application of such 
                standards has had on debtors and on the 
                bankruptcy courts.
            (2) Recommendation.--The report under paragraph (1) 
        may include recommendations for amendments to title 11, 
        United States Code, that are consistent with the 
        findings of the Director under paragraph (1).

SEC. 104. NOTICE OF ALTERNATIVES.

    Section 342(b) of title 11, United States Code, is amended 
to read as follows:
    ``(b) Before the commencement of a case under this title by 
an individual whose debts are primarily consumer debts, the 
clerk shall give to such individual written notice containing--
            ``(1) a brief description of--
                    ``(A) chapters 7, 11, 12, and 13 and the 
                general purpose, benefits, and costs of 
                proceeding under each of those chapters; and
                    ``(B) the types of services available from 
                credit counseling agencies; and
            ``(2) statements specifying that--
                    ``(A) a person who knowingly and 
                fraudulently conceals assets or makes a false 
                oath or statement under penalty of perjury in 
                connection with a bankruptcy case shall be 
                subject to fine, imprisonment, or both; and
                    ``(B) all information supplied by a debtor 
                in connection with a bankruptcy case is subject 
                to examination by the Attorney General.''.

SEC. 105. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

    (a) Development of Financial Management and Training 
Curriculum and Materials.--The Director of the Executive Office 
for United States Trustees (in this section referred to as the 
``Director'') shall consult with a wide range of individuals 
who are experts in the field of debtor education, including 
trustees who are appointed under chapter 13 of title 11, United 
States Code, and who operate financial management education 
programs for debtors, and shall develop a financial management 
training curriculum and materials that can be used to educate 
individual debtors on how to better manage their finances.
    (b) Test.--
            (1) Selection of districts.--The Director shall 
        select 6 judicial districts of the United States in 
        which to test the effectiveness of the financial 
        management training curriculum and materials developed 
        under subsection (a).
            (2) Use.--For an 18-month period beginning not 
        later than 270 days after the date of enactment of this 
        Act, such curriculum and materials shall be, for the 6 
        judicial districts selected under paragraph (1), used 
        as the instructional course concerning personal 
        financial management for purposes of section 111 of 
        title 11, United States Code.
    (c) Evaluation.--
            (1) In general.--During the 18-month period 
        referred to in subsection (b), the Director shall 
        evaluate the effectiveness of--
                    (A) the financial management training 
                curriculum and materials developed under 
                subsection (a); and
                    (B) a sample of existing consumer education 
                programs such as those described in the Report 
                of the National Bankruptcy Review Commission 
                (October 20, 1997) that are representative of 
                consumer education programs carried out by the 
                credit industry, by trustees serving under 
                chapter 13 of title 11, United States Code, and 
                by consumer counseling groups.
            (2) Report.--Not later than 3 months after 
        concluding such evaluation, the Director shall submit a 
        report to the Speaker of the House of Representatives 
        and the President pro tempore of the Senate, for 
        referral to the appropriate committees of the Congress, 
        containing the findings of the Director regarding the 
        effectiveness of such curriculum, such materials, and 
        such programs and their costs.

SEC. 106. CREDIT COUNSELING.

    (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 180-day period preceding the date of 
filing of the petition of that individual, received from an 
approved nonprofit budget and credit counseling agency 
described in section 111(a) an individual or group briefing 
(including a briefing conducted by telephone or on the 
Internet) that outlined the opportunities for available credit 
counseling and assisted that individual in performing a related 
budget analysis.
    ``(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 nonprofit budget and 
credit counseling agencies for that district are not reasonably 
able to provide adequate services to the additional individuals 
who would otherwise seek credit counseling from that agency 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 
1 year after the date of that determination, and not less 
frequently than every year thereafter. Notwithstanding the 
preceding sentence, a nonprofit budget and credit counseling 
service may be disapproved by the United States trustee or 
bankruptcy administrator at any time.
    ``(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 nonprofit budget 
        and credit counseling agency, 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, except that the court, for cause, may order an 
additional 15 days.''.
    (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.
            ``(12)(A) Paragraph (11) shall not apply with 
        respect to a debtor who resides in a district for which 
        the United States trustee or bankruptcy administrator 
        of that district determines that the approved 
        instructional courses are not adequate to service the 
        additional individuals required to complete such 
        instructional courses under this section.
            ``(B) Each United States trustee or bankruptcy 
        administrator that makes a determination described in 
        subparagraph (A) shall review that determination not 
        later than 1 year after the date of that determination, 
        and not less frequently than every year thereafter.''.
    (c) Chapter 13 Discharge.--Section 1328 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(g) 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.
    ``(h) Subsection (g) 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 instructional 
courses are not adequate to service the additional individuals 
who would be required to complete the instructional course by 
reason of the requirements of this section.
    ``(i) Each United States trustee or bankruptcy 
administrator that makes a determination described in 
subsection (h) shall review that determination not later than 1 
year after the date of that determination, and not less 
frequently than every year thereafter.''.
    (d) Debtor's Duties.--Section 521 of title 11, United 
States Code, is amended--
            (1) by inserting ``(a)'' before ``The debtor 
        shall--''; and
            (2) by adding at the end the following:
    ``(b) In addition to the requirements under subsection (a), 
an individual debtor shall file with the court--
            ``(1) a certificate from the approved nonprofit 
        budget and credit counseling agency that provided the 
        debtor services under section 109(h) describing the 
        services provided to the debtor; and
            ``(2) a copy of the debt repayment plan, if any, 
        developed under section 109(h) through the approved 
        nonprofit budget and credit counseling agency referred 
        to in paragraph (1).''.
    (e) 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 publicly 
available list of--
            ``(1) credit counseling agencies that provide 1 or 
        more programs described in section 109(h) currently 
        approved by the United States trustee or the bankruptcy 
        administrator for the district, as applicable; and
            ``(2) instructional courses concerning personal 
        financial management currently approved by the United 
        States trustee or the bankruptcy administrator for the 
        district, as applicable.
    ``(b) The United States trustee or bankruptcy administrator 
shall only approve a credit counseling agency or instructional 
course concerning personal financial management as follows:
            ``(1) The United States trustee or bankruptcy 
        administrator shall have thoroughly reviewed the 
        qualifications of the credit counseling agency or of 
        the provider of the instructional course under the 
        standards set forth in this section, and the programs 
        or instructional courses which will be offered by such 
        agency or provider, and may require an agency or 
        provider of an instructional course which has sought 
        approval to provide information with respect to such 
        review.
            ``(2) The United States trustee or bankruptcy 
        administrator shall have determined that the credit 
        counseling agency or course of instruction fully 
        satisfies the applicable standards set forth in this 
        section.
            ``(3) When an agency or course of instruction is 
        initially approved, such approval shall be for a 
        probationary period not to exceed 6 months. An agency 
        or course of instruction is initially approved if it 
        did not appear on the approved list for the district 
        under subsection (a) immediately prior to approval.
            ``(4) At the conclusion of the probationary period 
        under paragraph (3), the United States trustee or 
        bankruptcy administrator may only approve for an 
        additional 1-year period, and for successive 1-year 
        periods thereafter, any agency or course of instruction 
        which has demonstrated during the probationary or 
        subsequent period that such agency or course of 
        instruction--
                    ``(A) has met the standards set forth under 
                this section during such period; and
                    ``(B) can satisfy such standards in the 
                future.
            ``(5) Not later than 30 days after any final 
        decision under paragraph (4), that occurs either after 
        the expiration of the initial probationary period, or 
        after any 2-year period thereafter, an interested 
        person may seek judicial review of such decision in the 
        appropriate United States District Court.
    ``(c)(1) The United States trustee or bankruptcy 
administrator shall only approve a credit counseling agency 
that demonstrates that it will provide qualified counselors, 
maintain adequate provision for safekeeping and payment of 
client funds, provide adequate counseling with respect to 
client credit problems, and deal responsibly and effectively 
with other matters as relate to the quality, effectiveness, and 
financial security of such programs.
    ``(2) To be approved by the United States trustee or 
bankruptcy administrator, a credit counseling agency shall, at 
a minimum--
            ``(A) be a nonprofit budget and credit counseling 
        agency, the majority of the board of directors of 
        which--
                    ``(i) are not employed by the agency; and
                    ``(ii) will not directly or indirectly 
                benefit financially from the outcome of a 
                credit counseling session;
            ``(B) if a fee is charged for counseling services, 
        charge a reasonable fee, and provide services without 
        regard to ability to pay the fee;
            ``(C) provide for safekeeping and payment of client 
        funds, including an annual audit of the trust accounts 
        and appropriate employee bonding;
            ``(D) provide full disclosures to clients, 
        including funding sources, counselor qualifications, 
        possible impact on credit reports, and any costs of 
        such program that will be paid by the debtor and how 
        such costs will be paid;
            ``(E) provide adequate counseling with respect to 
        client credit problems that includes an analysis of 
        their current situation, what brought them to that 
        financial status, and how they can develop a plan to 
        handle the problem without incurring negative 
        amortization of their debts;
            ``(F) provide trained counselors who receive no 
        commissions or bonuses based on the counseling session 
        outcome, and who have adequate experience, and have 
        been adequately trained to provide counseling services 
        to individuals in financial difficulty, including the 
        matters described in subparagraph (E);
            ``(G) demonstrate adequate experience and 
        background in providing credit counseling; and
            ``(H) have adequate financial resources to provide 
        continuing support services for budgeting plans over 
        the life of any repayment plan.
    ``(d) The United States trustee or bankruptcy administrator 
shall only approve an instructional course concerning personal 
financial management--
            ``(1) for an initial probationary period under 
        subsection (b)(3) if the course will provide at a 
        minimum--
                    ``(A) trained personnel with adequate 
                experience and training in providing effective 
                instruction and services;
                    ``(B) learning materials and teaching 
                methodologies designed to assist debtors in 
                understanding personal financial management and 
                that are consistent with stated objectives 
                directly related to the goals of such course of 
                instruction;
                    ``(C) adequate facilities situated in 
                reasonably convenient locations at which such 
                course of instruction is offered, except that 
                such facilities may include the provision of 
                such course of instruction or program by 
                telephone or through the Internet, if the 
                course of instruction or program is effective; 
                and
                    ``(D) the preparation and retention of 
                reasonable records (which shall include the 
                debtor's bankruptcy case number) to permit 
                evaluation of the effectiveness of such course 
                of instruction or program, including any 
                evaluation of satisfaction of course of 
                instruction or program requirements for each 
                debtor attending such course of instruction or 
                program, which shall be available for 
                inspection and evaluation by the Executive 
                Office for United States Trustees, the United 
                States trustee, bankruptcy administrator, or 
                chief bankruptcy judge for the district in 
                which such course of instruction or program is 
                offered; and
            ``(2) for any 1-year period if the provider thereof 
        has demonstrated that the course meets the standards of 
        paragraph (1) and, in addition--
                    ``(A) has been effective in assisting a 
                substantial number of debtors to understand 
                personal financial management; and
                    ``(B) is otherwise likely to increase 
                substantially debtor understanding of personal 
                financial management.
    ``(e) The District Court may, at any time, investigate the 
qualifications of a credit counseling agency referred to in 
subsection (a), and request production of documents to ensure 
the integrity and effectiveness of such credit counseling 
agencies. The District Court may, at any time, remove from the 
approved list under subsection (a) a credit counseling agency 
upon finding such agency does not meet the qualifications of 
subsection (b).
    ``(f) The United States trustee or bankruptcy administrator 
shall notify the clerk that a credit counseling agency or an 
instructional course is no longer approved, in which case the 
clerk shall remove it from the list maintained under subsection 
(a).
    ``(g)(1) No credit counseling service may provide to a 
credit reporting agency information concerning whether an 
individual debtor has received or sought instruction concerning 
personal financial management from the credit counseling 
service.
    ``(2) A credit counseling service that willfully or 
negligently fails to comply with any requirement under this 
title with respect to a debtor shall be liable for damages in 
an amount equal to the sum of--
            ``(A) any actual damages sustained by the debtor as 
        a result of the violation; and
            ``(B) any court costs or reasonable attorneys' fees 
        (as determined by the court) incurred in an action to 
        recover those damages.''.
            (2) Clerical amendment.--The table of sections for 
        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.''.

    (f) Limitation.--Section 362 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(i) If a case commenced under chapter 7, 11, or 13 is 
dismissed due to the creation of a debt repayment plan, for 
purposes of subsection (c)(3), any subsequent case commenced by 
the debtor under any such chapter shall not be presumed to be 
filed not in good faith.
    ``(j) On request of a party in interest, the court shall 
issue an order under subsection (c) confirming that the 
automatic stay has been terminated.''.

SEC. 107. SCHEDULES OF REASONABLE AND NECESSARY EXPENSES.

    For purposes of section 707(b) of title 11, United States 
Code, as amended by this Act, the Director of the Executive 
Office for United States Trustees shall, not later than 180 
days after the date of enactment of this Act, issue schedules 
of reasonable and necessary administrative expenses of 
administering a chapter 13 plan for each judicial district of 
the United States.

                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.

    (a) Reduction of Claim.--Section 502 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(k)(1) The court, on the motion of the debtor and after a 
hearing, may reduce a claim filed under this section based in 
whole on unsecured consumer debts by not more than 20 percent 
of the claim, if--
            ``(A) the claim was filed by a creditor who 
        unreasonably refused to negotiate a reasonable 
        alternative repayment schedule proposed by an approved 
        credit counseling agency described in section 111 
        acting on behalf of the debtor;
            ``(B) the offer of the debtor under subparagraph 
        (A)--
                    ``(i) was made at least 60 days before the 
                filing of the petition; and
                    ``(ii) provided for payment of at least 60 
                percent of the amount of the debt over a period 
                not to exceed the repayment period of the loan, 
                or a reasonable extension thereof; and
            ``(C) no part of the debt under the alternative 
        repayment schedule is nondischargeable.
    ``(2) The debtor shall have the burden of proving, by clear 
and convincing evidence, that--
            ``(A) the creditor unreasonably refused to consider 
        the debtor's proposal; and
            ``(B) the proposed alternative repayment schedule 
        was made prior to expiration of the 60-day period 
        specified in paragraph (1)(B)(i).''.
    (b) Limitation on Avoidability.--Section 547 of title 11, 
United States Code, is amended by adding at the end the 
following:
    ``(h) The trustee may not avoid a transfer if such transfer 
was made as a part of an alternative repayment plan between the 
debtor and any creditor of the debtor created by an approved 
credit counseling agency.''.

SEC. 202. 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), unless the plan is dismissed, in default, or the 
creditor has not received payments required to be made under 
the plan 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) 
if the act of the creditor to collect and failure to credit 
payments in the manner required by the plan caused material 
injury to the debtor.
    ``(j) Subsection (a)(2) does not operate as an injunction 
against an act by a creditor that is the holder of a secured 
claim, if--
            ``(1) such creditor retains a security interest in 
        real property that is the principal residence of the 
        debtor;
            ``(2) such act is in the ordinary course of 
        business between the creditor and the debtor; and
            ``(3) such act is limited to seeking or obtaining 
        periodic payments associated with a valid security 
        interest in lieu of pursuit of in rem relief to enforce 
        the lien.''.

SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION PRACTICES.

    (a) In General.--Section 524 of title 11, United States 
Code, as amended by this Act, is amended--
            (1) in subsection (c), by striking paragraph (2) 
        and inserting the following:
            ``(2) the debtor received the disclosures described 
        in subsection (k) at or before the time at which the 
        debtor signed the agreement;'';
            (2) by adding at the end the following:
    ``(k)(1) The disclosures required under subsection (c)(2) 
shall consist of the disclosure statement described in 
paragraph (3), completed as required in that paragraph, 
together with the agreement, statement, declaration, motion and 
order described, respectively, in paragraphs (4) through (8), 
and shall be the only disclosures required in connection with 
the reaffirmation.
    ``(2) Disclosures made under paragraph (1) shall be made 
clearly and conspicuously and in writing. The terms `Amount 
Reaffirmed' and `Annual Percentage Rate' shall be disclosed 
more conspicuously than other terms, data or information 
provided in connection with this disclosure, except that the 
phrases `Before agreeing to reaffirm a debt, review these 
important disclosures' and `Summary of Reaffirmation Agreement' 
may be equally conspicuous. Disclosures may be made in a 
different order and may use terminology different from that set 
forth in paragraphs (2) through (8), except that the terms 
`Amount Reaffirmed' and `Annual Percentage Rate' must be used 
where indicated.
    ``(3) The disclosure statement required under this 
paragraph shall consist of the following:
            ``(A) The statement: `Part A: Before agreeing to 
        reaffirm a debt, review these important disclosures:';
            ``(B) Under the heading `Summary of Reaffirmation 
        Agreement', the statement: `This Summary is made 
        pursuant to the requirements of the Bankruptcy Code';
            ``(C) The `Amount Reaffirmed', using that term, 
        which shall be--
                    ``(i) the total amount which the debtor 
                agrees to reaffirm, and
                    ``(ii) the total of any other fees or cost 
                accrued as of the date of the disclosure 
                statement.
            ``(D) In conjunction with the disclosure of the 
        `Amount Reaffirmed', the statements--
                    ``(i) `The amount of debt you have agreed 
                to reaffirm'; and
                    ``(ii) `Your credit agreement may obligate 
                you to pay additional amounts which may come 
                due after the date of this disclosure. Consult 
                your credit agreement.'.
            ``(E) The `Annual Percentage Rate', using that 
        term, which shall be disclosed as--
                    ``(i) if, at the time the petition is 
                filed, the debt is open end credit as defined 
                under the Truth in Lending Act (15 U.S.C. 1601 
                et seq.), then--
                            ``(I) the annual percentage rate 
                        determined under paragraphs (5) and (6) 
                        of section 127(b) of the Truth in 
                        Lending Act (15 U.S.C. 1637(b)(5) and 
                        (6)), as applicable, as disclosed to 
                        the debtor in the most recent periodic 
                        statement prior to the agreement or, if 
                        no such periodic statement has been 
                        provided the debtor during the prior 6 
                        months, the annual percentage rate as 
                        it would have been so disclosed at the 
                        time the disclosure statement is given 
                        the debtor, or to the extent this 
                        annual percentage rate is not readily 
                        available or not applicable, then
                            ``(II) the simple interest rate 
                        applicable to the amount reaffirmed as 
                        of the date the disclosure statement is 
                        given to the debtor, or if different 
                        simple interest rates apply to 
                        different balances, the simple interest 
                        rate applicable to each such balance, 
                        identifying the amount of each such 
                        balance included in the amount 
                        reaffirmed, or
                            ``(III) if the entity making the 
                        disclosure elects, to disclose the 
                        annual percentage rate under subclause 
                        (I) and the simple interest rate under 
                        subclause (II);
                    ``(ii) if, at the time the petition is 
                filed, the debt is closed end credit as defined 
                under the Truth in Lending Act (15 U.S.C. 1601 
                et seq.), then--
                            ``(I) the annual percentage rate 
                        under section 128(a)(4) of the Truth in 
                        Lending Act (15 U.S.C. 1638(a)(4)), as 
                        disclosed to the debtor in the most 
                        recent disclosure statement given the 
                        debtor prior to the reaffirmation 
                        agreement with respect to the debt, or, 
                        if no such disclosure statement was 
                        provided the debtor, the annual 
                        percentage rate as it would have been 
                        so disclosed at the time the disclosure 
                        statement is given the debtor, or to 
                        the extent this annual percentage rate 
                        is not readily available or not 
                        applicable, then
                            ``(II) the simple interest rate 
                        applicable to the amount reaffirmed as 
                        of the date the disclosure statement is 
                        given the debtor, or if different 
                        simple interest rates apply to 
                        different balances, the simple interest 
                        rate applicable to each such balance, 
                        identifying the amount of such balance 
                        included in the amount reaffirmed, or
                            ``(III) if the entity making the 
                        disclosure elects, to disclose the 
                        annual percentage rate under (I) and 
                        the simple interest rate under (II).
            ``(F) If the underlying debt transaction was 
        disclosed as a variable rate transaction on the most 
        recent disclosure given under the Truth in Lending Act 
        (15 U.S.C. 1601 et seq.), by stating `The interest rate 
        on your loan may be a variable interest rate which 
        changes from time to time, so that the annual 
        percentage rate disclosed here may be higher or 
        lower.'.
            ``(G) If the debt is secured by a security interest 
        which has not been waived in whole or in part or 
        determined to be void by a final order of the court at 
        the time of the disclosure, by disclosing that a 
        security interest or lien in goods or property is 
        asserted over some or all of the obligations you are 
        reaffirming and listing the items and their original 
        purchase price that are subject to the asserted 
        security interest, or if not a purchase-money security 
        interest then listing by items or types and the 
        original amount of the loan.
            ``(H) At the election of the creditor, a statement 
        of the repayment schedule using 1 or a combination of 
        the following--
                    ``(i) by making the statement: `Your first 
                payment in the amount of $______ is due on 
                ______ but the future payment amount may be 
                different. Consult your reaffirmation or credit 
                agreement, as applicable.', and stating the 
                amount of the first payment and the due date of 
                that payment in the places provided;
                    ``(ii) by making the statement: `Your 
                payment schedule will be:', and describing the 
                repayment schedule with the number, amount and 
                due dates or period of payments scheduled to 
                repay the obligations reaffirmed to the extent 
                then known by the disclosing party; or
                    ``(iii) by describing the debtor's 
                repayment obligations with reasonable 
                specificity to the extent then known by the 
                disclosing party.
            ``(I) The following statement: `Note: When this 
        disclosure refers to what a creditor `may' do, it does 
        not use the word `may' to give the creditor specific 
        permission. The word `may' is used to tell you what 
        might occur if the law permits the creditor to take the 
        action. If you have questions about your reaffirmation 
        or what the law requires, talk to the attorney who 
        helped you negotiate this agreement. If you don't have 
        an attorney helping you, the judge will explain the 
        effect of your reaffirmation when the reaffirmation 
        hearing is held.'.
            ``(J)(i) The following additional statements:
    `` `Reaffirming a debt is a serious financial decision. The 
law requires you to take certain steps to make sure the 
decision is in your best interest. If these steps are not 
completed, the reaffirmation agreement is not effective, even 
though you have signed it.
            `` `1. Read the disclosures in this Part A 
        carefully. Consider the decision to reaffirm carefully. 
        Then, if you want to reaffirm, sign the reaffirmation 
        agreement in Part B (or you may use a separate 
        agreement you and your creditor agree on).
            `` `2. Complete and sign Part D and be sure you can 
        afford to make the payments you are agreeing to make 
        and have received a copy of the disclosure statement 
        and a completed and signed reaffirmation agreement.
            `` `3. If you were represented by an attorney 
        during the negotiation of the reaffirmation agreement, 
        the attorney must have signed the certification in Part 
        C.
            `` `4. If you were not represented by an attorney 
        during the negotiation of the reaffirmation agreement, 
        you must have completed and signed Part E.
            `` `5. The original of this disclosure must be 
        filed with the court by you or your creditor. If a 
        separate reaffirmation agreement (other than the one in 
        Part B) has been signed, it must be attached.
            `` `6. If you were represented by an attorney 
        during the negotiation of the reaffirmation agreement, 
        your reaffirmation agreement becomes effective upon 
        filing with the court unless the reaffirmation is 
        presumed to be an undue hardship as explained in Part 
        D.
            `` `7. If you were not represented by an attorney 
        during the negotiation of the reaffirmation agreement, 
        it will not be effective unless the court approves it. 
        The court will notify you of the hearing on your 
        reaffirmation agreement. You must attend this hearing 
        in bankruptcy court where the judge will review your 
        agreement. The bankruptcy court must approve the 
        agreement as consistent with your best interests, 
        except that no court approval is required if the 
        agreement is for a consumer debt secured by a mortgage, 
        deed of trust, security deed or other lien on your real 
        property, like your home.
    `` `Your right to rescind a reaffirmation. You may rescind 
(cancel) your reaffirmation at any time before the bankruptcy 
court enters a discharge order or within 60 days after the 
agreement is filed with the court, whichever is longer. To 
rescind or cancel, you must notify the creditor that the 
agreement is canceled.
    `` `What are your obligations if you reaffirm the debt? A 
reaffirmed debt remains your personal legal obligation. It is 
not discharged in your bankruptcy. That means that if you 
default on your reaffirmed debt after your bankruptcy is over, 
your creditor may be able to take your property or your wages. 
Otherwise, your obligations will be determined by the 
reaffirmation agreement which may have changed the terms of the 
original agreement. For example, if you are reaffirming an open 
end credit agreement, the creditor may be permitted by that 
agreement or applicable law to change the terms of the 
agreement in the future under certain conditions.
    `` `Are you required to enter into a reaffirmation 
agreement by any law? No, you are not required to reaffirm a 
debt by any law. Only agree to reaffirm a debt if it is in your 
best interest. Be sure you can afford the payments you agree to 
make.
    `` `What if your creditor has a security interest or lien? 
Your bankruptcy discharge does not eliminate any lien on your 
property. A ``lien'' is often referred to as a security 
interest, deed of trust, mortgage or security deed. Even if you 
do not reaffirm and your personal liability on the debt is 
discharged, because of the lien your creditor may still have 
the right to take the security property if you do not pay the 
debt or default on it. If the lien is on an item of personal 
property that is exempt under your State's law or that the 
trustee has abandoned, you may be able to redeem the item 
rather than reaffirm the debt. To redeem, you make a single 
payment to the creditor equal to the current value of the 
security property, as agreed by the parties or determined by 
the court.'.
            ``(ii) In the case of a reaffirmation under 
        subsection (m)(2), numbered paragraph 6 in the 
        disclosures required by clause (i) of this subparagraph 
        shall read as follows:
            `` `6. If you were represented by an attorney 
        during the negotiation of the reaffirmation agreement, 
        your reaffirmation agreement becomes effective upon 
        filing with the court.'.
    ``(4) The form of reaffirmation agreement required under 
this paragraph shall consist of the following:
    `` `Part B: Reaffirmation Agreement. I/we agree to reaffirm 
the obligations arising under the credit agreement described 
below.
    `` `Brief description of credit agreement:
    `` `Description of any changes to the credit agreement made 
as part of this reaffirmation agreement:
    `` `Signature:          Date:
    `` `Borrower:
    `` `Co-borrower, if also reaffirming:
    `` `Accepted by creditor:
    `` `Date of creditor acceptance:'.
    ``(5)(A) The declaration shall consist of the following:
    `` `Part C: Certification by Debtor's Attorney (If Any).
    `` `I hereby certify that (1) this agreement represents a 
fully informed and voluntary agreement by the debtor(s); (2) 
this agreement does not impose an undue hardship on the debtor 
or any dependent of the debtor; and (3) I have fully advised 
the debtor of the legal effect and consequences of this 
agreement and any default under this agreement.
    `` `Signature of Debtor's Attorney:    Date:'.
    ``(B) In the case of reaffirmations in which a presumption 
of undue hardship has been established, the certification shall 
state that in the opinion of the attorney, the debtor is able 
to make the payment.
    ``(C) In the case of a reaffirmation agreement under 
subsection (m)(2), subparagraph (B) is not applicable.
    ``(6)(A) The statement in support of reaffirmation 
agreement, which the debtor shall sign and date prior to filing 
with the court, shall consist of the following:
    `` `Part D: Debtor's Statement in Support of Reaffirmation 
Agreement.
    `` `1. I believe this agreement will not impose an undue 
hardship on my dependents or me. I can afford to make the 
payments on the reaffirmed debt because my monthly income (take 
home pay plus any other income received) is $______, and my 
actual current monthly expenses including monthly payments on 
post-bankruptcy debt and other reaffirmation agreements total 
$______, leaving $______ to make the required payments on this 
reaffirmed debt. I understand that if my income less my monthly 
expenses does not leave enough to make the payments, this 
reaffirmation agreement is presumed to be an undue hardship on 
me and must be reviewed by the court. However, this presumption 
may be overcome if I explain to the satisfaction of the court 
how I can afford to make the payments here: ______.
    `` `2. I received a copy of the Reaffirmation Disclosure 
Statement in Part A and a completed and signed reaffirmation 
agreement.'.
    ``(B) Where the debtor is represented by counsel and is 
reaffirming a debt owed to a creditor defined in section 
19(b)(1)(A)(iv) of the Federal Reserve Act (12 U.S.C. 
461(b)(1)(A)(iv)), the statement of support of the 
reaffirmation agreement, which the debtor shall sign and date 
prior to filing with the court, shall consist of the following:
    `` `I believe this agreement is in my financial interest. I 
can afford to make the payments on the reaffirmed debt. I 
received a copy of the Reaffirmation Disclosure Statement in 
Part A and a completed and signed reaffirmation agreement.'
    ``(7) The motion, which may be used if approval of the 
agreement by the court is required in order for it to be 
effective and shall be signed and dated by the moving party, 
shall consist of the following:
    `` `Part E: Motion for Court Approval (To be completed only 
where debtor is not represented by an attorney.). I (we), the 
debtor, affirm the following to be true and correct:
    `` `I am not represented by an attorney in connection with 
this reaffirmation agreement.
    `` `I believe this agreement is in my best interest based 
on the income and expenses I have disclosed in my Statement in 
Support of this reaffirmation agreement above, and because 
(provide any additional relevant reasons the court should 
consider):
    `` `Therefore, I ask the court for an order approving this 
reaffirmation agreement.'.
    ``(8) The court order, which may be used to approve a 
reaffirmation, shall consist of the following:
    `` `Court Order: The court grants the debtor's motion and 
approves the reaffirmation agreement described above.'.
    ``(9) Subsection (a)(2) does not operate as an injunction 
against an act by a creditor that is the holder of a secured 
claim, if--
            ``(A) such creditor retains a security interest in 
        real property that is the debtor's principal residence;
            ``(B) such act is in the ordinary course of 
        business between the creditor and the debtor; and
            ``(C) such act is limited to seeking or obtaining 
        periodic payments associated with a valid security 
        interest in lieu of pursuit of in rem relief to enforce 
        the lien.
    ``(l) Notwithstanding any other provision of this title:
            ``(1) A creditor may accept payments from a debtor 
        before and after the filing of a reaffirmation 
        agreement with the court.
            ``(2) A creditor may accept payments from a debtor 
        under a reaffirmation agreement which the creditor 
        believes in good faith to be effective.
            ``(3) The requirements of subsections (c)(2) and 
        (k) shall be satisfied if disclosures required under 
        those subsections are given in good faith.
    ``(m)(1) Until 60 days after a reaffirmation agreement is 
filed with the court (or such additional period as the court, 
after notice and hearing and for cause, orders before the 
expiration of such period), it shall be presumed that the 
reaffirmation agreement is an undue hardship on the debtor if 
the debtor's monthly income less the debtor's monthly expenses 
as shown on the debtor's completed and signed statement in 
support of the reaffirmation agreement required under 
subsection (k)(6)(A) is less than the scheduled payments on the 
reaffirmed debt. This presumption shall be reviewed by the 
court. The presumption may be rebutted in writing by the debtor 
if the statement includes an explanation which identifies 
additional sources of funds to make the payments as agreed upon 
under the terms of the reaffirmation agreement. If the 
presumption is not rebutted to the satisfaction of the court, 
the court may disapprove the agreement. No agreement shall be 
disapproved without notice and hearing to the debtor and 
creditor and such hearing shall be concluded before the entry 
of the debtor's discharge.
    ``(2) This subsection does not apply to reaffirmation 
agreements where the creditor is a credit union, as defined in 
section 19(b)(1)(A)(iv) of the Federal Reserve Act (12 U.S.C. 
461(b)(1)(A)(iv)).''.
    (b) Law Enforcement.--
            (1) In general.--Chapter 9 of title 18, United 
        States Code, is amended by adding at the end the 
        following:

``Sec. 158. Designation of United States attorneys and agents of the 
                    Federal Bureau of Investigation to address abusive 
                    reaffirmations of debt and materially fraudulent 
                    statements in bankruptcy schedules

    ``(a) In General.--The Attorney General of the United 
States shall designate the individuals described in subsection 
(b) to have primary responsibility in carrying out enforcement 
activities in addressing violations of section 152 or 157 
relating to abusive reaffirmations of debt. In addition to 
addressing the violations referred to in the preceding 
sentence, the individuals described under subsection (b) shall 
address violations of section 152 or 157 relating to materially 
fraudulent statements in bankruptcy schedules that are 
intentionally false or intentionally misleading.
    ``(b) United States District Attorneys and Agents of the 
Federal Bureau of Investigation--The individuals referred to in 
subsection (a) are--
            ``(1) a United States attorney for each judicial 
        district of the United States; and
            ``(2) an agent of the Federal Bureau of 
        Investigation (within the meaning of section 3107) for 
        each field office of the Federal Bureau of 
        Investigation.
    ``(c) Bankruptcy Investigations.--Each United States 
attorney designated under this section shall, in addition to 
any other responsibilities, have primary responsibility for 
carrying out the duties of a United States attorney under 
section 3057.
    ``(d) Bankruptcy Procedures.--The bankruptcy courts shall 
establish procedures for referring any case which may contain a 
materially fraudulent statement in a bankruptcy schedule to the 
individuals designated under this section.''.
            (2) Clerical amendment.--The analysis for chapter 9 
        of title 18, United States Code, is amended by adding 
        at the end the following:

``158. Designation of United States attorneys and agents of the Federal 
          Bureau of Investigation to address abusive reaffirmations of 
          debt and materially fraudulent statements in bankruptcy 
          schedules.''.

                   Subtitle B--Priority Child Support

SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

    Section 101 of title 11, United States Code, 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, including interest that 
        accrues on that debt as provided under applicable 
        nonbankruptcy law notwithstanding any other provision 
        of this title, that is--
                    ``(A) owed to or recoverable by--
                            ``(i) a spouse, former spouse, or 
                        child of the debtor or such child's 
                        parent, legal guardian, or responsible 
                        relative; or
                            ``(ii) a governmental unit;
                    ``(B) in the nature of alimony, 
                maintenance, or support (including assistance 
                provided by a governmental unit) of such 
                spouse, former spouse, or child of the debtor 
                or such child's parent, 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, legal guardian, or 
                responsible relative of the child for the 
                purpose of collecting the debt;''.

SEC. 212. 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--
                    (A) by striking ``Third'' and inserting 
                ``Fourth''; and
                    (B) by striking the semicolon at the end 
                and inserting a period;
            (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:
                    ``(A) Allowed unsecured claims for domestic 
                support obligations that, as of the date of the 
                filing of the petition, are owed to or 
                recoverable by a spouse, former spouse, or 
                child of the debtor, or the parent, legal 
                guardian, or responsible relative of such 
                child, without regard to whether the claim is 
                filed by such person or is filed by a 
                governmental unit on behalf of that person, on 
                the condition that funds received under this 
                paragraph by a governmental unit under this 
                title after the date of filing of the petition 
                shall be applied and distributed in accordance 
                with applicable nonbankruptcy law.
                    ``(B) Subject to claims under subparagraph 
                (A), allowed unsecured claims for domestic 
                support obligations that, as of the date the 
                petition was filed are assigned by a spouse, 
                former spouse, child of the debtor, or such 
                child's parent, legal guardian, or responsible 
                relative to a governmental unit (unless such 
                obligation is assigned voluntarily by the 
                spouse, former spouse, child, parent, legal 
                guardian, or responsible relative of the child 
                for the purpose of collecting the debt) or are 
                owed directly to or recoverable by a government 
                unit under applicable nonbankruptcy law, on the 
                condition that funds received under this 
                paragraph by a governmental unit under this 
                title after the date of filing of the petition 
                be applied and distributed in accordance with 
                applicable nonbankruptcy law.''.

SEC. 213. 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 first become payable after the date on which the 
        petition is filed.'';
            (2) in section 1208(c)--
                    (A) in paragraph (8), by striking ``or'' at 
                the end;
                    (B) in paragraph (9), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) failure of the debtor to pay any domestic 
        support obligation that first becomes payable after the 
        date on which the petition is filed.'';
            (3) in section 1222(a)--
                    (A) in paragraph (2), by striking ``and'' 
                at the end;
                    (B) in paragraph (3), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) notwithstanding any other provision of this 
        section, a plan may provide for less than full payment 
        of all amounts owed for a claim entitled to priority 
        under section 507(a)(1)(B) only if the plan provides 
        that all of the debtor's projected disposable income 
        for a 5-year period, beginning on the date that the 
        first payment is due under the plan, will be applied to 
        make payments under the plan.'';
            (4) in section 1222(b)--
                    (A) by redesignating paragraph (11) as 
                paragraph (12); and
                    (B) by inserting after paragraph (10) the 
                following:
            ``(11) provide for the payment of interest accruing 
        after the date of the filing of the petition on 
        unsecured claims that are nondischargeable under 
        section 1328(a), except that such interest may be paid 
        only to the extent that the debtor has disposable 
        income available to pay such interest after making 
        provision for full payment of all allowed claims;'';
            (5) in section 1225(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 first 
        become payable after the date on which the petition is 
        filed.'';
            (6) in section 1228(a), in the matter preceding 
        paragraph (1), by inserting ``, and in the case of a 
        debtor who is required by a judicial or administrative 
        order to pay a domestic support obligation, after such 
        debtor 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 the 
        petition was filed, but only to the extent provided for 
        in the plan) have been paid'' after ``completion by the 
        debtor of all payments under the plan'';
            (7) in section 1307(c)--
                    (A) in paragraph (9), by striking ``or'' at 
                the end;
                    (B) in paragraph (10), by striking the 
                period at the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(11) failure of the debtor to pay any domestic 
        support obligation that first becomes payable after the 
        date on which the petition is filed.'';
            (8) in section 1322(a)--
                    (A) in paragraph (2), by striking ``and'' 
                at the end;
                    (B) in paragraph (3), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding in the end the following:
            ``(4) notwithstanding any other provision of this 
        section, a plan may provide for less than full payment 
        of all amounts owed for a claim entitled to priority 
        under section 507(a)(1)(B) only if the plan provides 
        that all of the debtor's projected disposable income 
        for a 5-year period beginning on the date that the 
        first payment is due under the plan will be applied to 
        make payments under the plan.'';
            (9) in section 1322(b)--
                    (A) in paragraph (9), by striking ``; and'' 
                and inserting a semicolon;
                    (B) by redesignating paragraph (10) as 
                paragraph (11); and
                    (C) inserting after paragraph (9) the 
                following:
            ``(10) provide for the payment of interest accruing 
        after the date of the filing of the petition on 
        unsecured claims that are nondischargeable under 
        section 1328(a), except that such interest may be paid 
        only to the extent that the debtor has disposable 
        income available to pay such interest after making 
        provision for full payment of all allowed claims; 
        and'';
            (10) in section 1325(a) (as amended by this Act), 
        by adding at the end the following:
            ``(8) 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 first becomes payable after the date on which the 
        petition is filed; and'';
            (11) in section 1328(a), in the matter preceding 
        paragraph (1), by inserting ``, and in the case of a 
        debtor who is required by a judicial or administrative 
        order to pay a domestic support obligation, after such 
        debtor 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 the 
        petition was filed, but only to the extent provided for 
        in the plan) have been paid'' after ``completion by the 
        debtor of all payments under the plan''.

SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
                    PROCEEDINGS.

    Section 362(b) of title 11, United States Code, is amended 
by striking paragraph (2) and inserting the following:
            ``(2) under subsection (a)--
                    ``(A) of the commencement or continuation 
                of a civil action or proceeding--
                            ``(i) for the establishment of 
                        paternity;
                            ``(ii) for the establishment or 
                        modification of an order for domestic 
                        support obligations;
                            ``(iii) concerning child custody or 
                        visitation;
                            ``(iv) for the dissolution of a 
                        marriage, except to the extent that 
                        such proceeding seeks to determine the 
                        division of property that is property 
                        of the estate; or
                            ``(v) regarding domestic violence;
                    ``(B) the collection of a domestic support 
                obligation from property that is not property 
                of the estate;
                    ``(C) with respect to the withholding of 
                income that is property of the estate or 
                property of the debtor for payment of a 
                domestic support obligation under a judicial or 
                administrative order;
                    ``(D) the withholding, suspension, or 
                restriction of drivers' licenses, professional 
                and occupational licenses, and recreational 
                licenses under State law, as specified in 
                section 466(a)(16) of the Social Security Act 
                (42 U.S.C. 666(a)(16));
                    ``(E) the reporting of overdue support owed 
                by a 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));
                    ``(F) 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 under an analogous State law; or
                    ``(G) the enforcement of medical 
                obligations as specified under title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.);''.

SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
                    MAINTENANCE, AND SUPPORT.

    Section 523 of title 11, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (5) and inserting 
                the following:
            ``(5) for a domestic support obligation;'';
                    (B) in paragraph (15)--
                            (i) by inserting ``to a spouse, 
                        former spouse, or child of the debtor 
                        and'' before ``not of the kind'';
                            (ii) by inserting ``or'' after 
                        ``court of record,''; and
                            (iii) by striking ``unless--'' and 
                        all that follows through the end of the 
                        paragraph and inserting a semicolon; 
                        and
                    (C) by striking paragraph (18); and
            (2) in subsection (c), by striking ``(6), or (15)'' 
        each place it appears and inserting ``or (6)''.

SEC. 216. 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));'';
            (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''; and
            (3) in subsection (g)(2), by striking ``subsection 
        (f)(2)'' and inserting ``subsection (f)(1)(B)''.

SEC. 217. 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;''.

SEC. 218. DISPOSABLE INCOME DEFINED.

    (a) Confirmation of Plan Under Chapter 12.--Section 
1225(b)(2)(A) of title 11, United States Code, is amended by 
inserting ``or for a domestic support obligation that first 
becomes payable after the date on which the petition is filed'' 
after ``dependent of the debtor''.
    (b) Confirmation of Plan Under Chapter 13.--Section 
1325(b)(2)(A) of title 11, United States Code, is amended by 
inserting ``or for a domestic support obligation that first 
becomes payable after the date on which the petition is filed'' 
after ``dependent of the debtor''.

SEC. 219. COLLECTION OF CHILD SUPPORT.

    (a) Duties of Trustee Under Chapter 7.--Section 704 of 
title 11, United States Code, as amended by this Act, is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (8), by striking ``and'' 
                at the end;
                    (B) in paragraph (9), by striking the 
                period and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(10) if, with respect to an individual debtor, 
        there is a claim for a domestic support obligation, 
        provide the applicable notification specified in 
        subsection (c); and''; and
            (2) by adding at the end the following:
    ``(c)(1) In any case described in subsection (a)(10), the 
trustee shall--
            ``(A)(i) notify in writing the holder of the claim 
        of the right of that holder to use the services of a 
        State child support enforcement agency established 
        under sections 464 and 466 of the Social Security Act 
        (42 U.S.C. 664, 666) for the State in which the holder 
        resides for assistance in collecting child support 
        during and after the bankruptcy procedures;
            ``(ii) include in the notice under this paragraph 
        the address and telephone number of the child support 
        enforcement agency; and
            ``(iii) include in the notice an explanation of the 
        rights of the holder of the claim to payment of the 
        claim under this chapter; and
            ``(B)(i) notify in writing the State child support 
        agency of the State in which the holder of the claim 
        resides of the claim;
            ``(ii) include in the notice under this paragraph 
        the name, address, and telephone number of the holder 
        of the claim; and
            ``(iii) at such time as the debtor is granted a 
        discharge under section 727, notify the holder of that 
        claim and the State child support agency of the State 
        in which that holder resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the 
                debtor;
                    ``(III) the last recent known name and 
                address of the debtor's employer; and
                    ``(IV) with respect to the debtor's case, 
                the name of each creditor that holds a claim 
                that--
                            ``(aa) is not discharged under 
                        paragraph (2), (4), or (14A) of section 
                        523(a); or
                            ``(bb) was reaffirmed by the debtor 
                        under section 524(c).
    ``(2)(A) A holder of a claim or a State child support 
agency may request from a creditor described in paragraph 
(1)(B)(iii)(IV) the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address of a 
debtor in connection with a request made under subparagraph (A) 
shall not be liable to the debtor or any other person by reason 
of making that disclosure.''.
    (b) Duties of Trustee Under Chapter 11.--Section 1106 of 
title 11, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (6), by striking ``and'' 
                at the end;
                    (B) in paragraph (7), by striking the 
                period and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(8) if, with respect to an individual debtor, 
        there is a claim for a domestic support obligation, 
        provide the applicable notification specified in 
        subsection (c).''; and
            (2) by adding at the end the following:
    ``(c)(1) In any case described in subsection (a)(7), the 
trustee shall--
            ``(A)(i) notify in writing the holder of the claim 
        of the right of that holder to use the services of a 
        State child support enforcement agency established 
        under sections 464 and 466 of the Social Security Act 
        (42 U.S.C. 664, 666) for the State in which the holder 
        resides; and
            ``(ii) include in the notice under this paragraph 
        the address and telephone number of the child support 
        enforcement agency; and
            ``(B)(i) notify, in writing, the State child 
        support agency (of the State in which the holder of the 
        claim resides) of the claim;
            ``(ii) include in the notice under this paragraph 
        the name, address, and telephone number of the holder 
        of the claim; and
            ``(iii) at such time as the debtor is granted a 
        discharge under section 1141, notify the holder of the 
        claim and the State child support agency of the State 
        in which that holder resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the 
                debtor;
                    ``(III) the last recent known name and 
                address of the debtor's employer; and
                    ``(IV) with respect to the debtor's case, 
                the name of each creditor that holds a claim 
                that--
                            ``(aa) is not discharged under 
                        paragraph (2), (3), or (14) of section 
                        523(a); or
                            ``(bb) was reaffirmed by the debtor 
                        under section 524(c).
    ``(2)(A) A holder of a claim or a State child support 
agency may request from a creditor described in paragraph 
(1)(B)(iii)(IV) the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address of a 
debtor in connection with a request made under subparagraph (A) 
shall not be liable to the debtor or any other person by reason 
of making that disclosure.''.
    (c) Duties of Trustee Under Chapter 12.--Section 1202 of 
title 11, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (4), by striking ``and'' 
                at the end;
                    (B) in paragraph (5), by striking the 
                period and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) if, with respect to an individual debtor, 
        there is a claim for a domestic support obligation, 
        provide the applicable notification specified in 
        subsection (c).''; and
            (2) by adding at the end the following:
    ``(c)(1) In any case described in subsection (b)(6), the 
trustee shall--
            ``(A)(i) notify in writing the holder of the claim 
        of the right of that holder to use the services of a 
        State child support enforcement agency established 
        under sections 464 and 466 of the Social Security Act 
        (42 U.S.C. 664, 666) for the State in which the holder 
        resides; and
            ``(ii) include in the notice under this paragraph 
        the address and telephone number of the child support 
        enforcement agency; and
            ``(B)(i) notify, in writing, the State child 
        support agency (of the State in which the holder of the 
        claim resides) of the claim;
            ``(ii) include in the notice under this paragraph 
        the name, address, and telephone number of the holder 
        of the claim; and
            ``(iii) at such time as the debtor is granted a 
        discharge under section 1228, notify the holder of the 
        claim and the State child support agency of the State 
        in which that holder resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the 
                debtor;
                    ``(III) the last recent known name and 
                address of the debtor's employer; and
                    ``(IV) with respect to the debtor's case, 
                the name of each creditor that holds a claim 
                that--
                            ``(aa) is not discharged under 
                        paragraph (2), (4), or (14) of section 
                        523(a); or
                            ``(bb) was reaffirmed by the debtor 
                        under section 524(c).
    ``(2)(A) A holder of a claim or a State child support 
agency may request from a creditor described in paragraph 
(1)(B)(iii)(IV) the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address of a 
debtor in connection with a request made under subparagraph (A) 
shall not be liable to the debtor or any other person by reason 
of making that disclosure.''.
    (d) Duties of Trustee Under Chapter 13.--Section 1302 of 
title 11, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (4), by striking ``and'' 
                at the end;
                    (B) in paragraph (5), by striking the 
                period and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) if, with respect to an individual debtor, 
        there is a claim for a domestic support obligation, 
        provide the applicable notification specified in 
        subsection (d).''; and
            (2) by adding at the end the following:
    ``(d)(1) In any case described in subsection (b)(6), the 
trustee shall--
            ``(A)(i) notify in writing the holder of the claim 
        of the right of that holder to use the services of a 
        State child support enforcement agency established 
        under sections 464 and 466 of the Social Security Act 
        (42 U.S.C. 664, 666) for the State in which the holder 
        resides; and
            ``(ii) include in the notice under this paragraph 
        the address and telephone number of the child support 
        enforcement agency; and
            ``(B)(i) notify in writing the State child support 
        agency of the State in which the holder of the claim 
        resides of the claim;
            ``(ii) include in the notice under this paragraph 
        the name, address, and telephone number of the holder 
        of the claim; and
            ``(iii) at such time as the debtor is granted a 
        discharge under section 1328, notify the holder of the 
        claim and the State child support agency of the State 
        in which that holder resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the 
                debtor;
                    ``(III) the last recent known name and 
                address of the debtor's employer; and
                    ``(IV) with respect to the debtor's case, 
                the name of each creditor that holds a claim 
                that--
                            ``(aa) is not discharged under 
                        paragraph (2), (4), or (14) of section 
                        523(a); or
                            ``(bb) was reaffirmed by the debtor 
                        under section 524(c).
    ``(2)(A) A holder of a claim or a State child support 
agency may request from a creditor described in paragraph 
(1)(B)(iii)(IV) the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a 
creditor that makes a disclosure of a last known address of a 
debtor in connection with a request made under subparagraph (A) 
shall not be liable to the debtor or any other person by reason 
of making that disclosure.''.

SEC. 220. NONDISCHARGEABILITY OF CERTAIN EDUCATIONAL BENEFITS AND 
                    LOANS.

    Section 523(a) of title 11, United States Code, is amended 
by striking paragraph (8) and inserting the following:
            ``(8) unless excepting such debt from discharge 
        under this paragraph would impose an undue hardship on 
        the debtor and the debtor's dependents, for--
                    ``(A)(i) an educational benefit overpayment 
                or loan made, insured, or guaranteed by a 
                governmental unit, or made under any program 
                funded in whole or in part by a governmental 
                unit or nonprofit institution; or
                    ``(ii) an obligation to repay funds 
                received as an educational benefit, 
                scholarship, or stipend; or
                    ``(B) any other educational loan that is a 
                qualified education loan, as that term is 
                defined in section 221(e)(1) of the Internal 
                Revenue Code of 1986, incurred by an individual 
                debtor;''.

                 Subtitle C--Other Consumer Protections

SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY FILINGS.

    Section 110 of title 11, United States Code, is amended--
            (1) in subsection (a)(1), by striking ``a person, 
        other than an attorney or an employee of an attorney'' 
        and inserting ``the attorney for the debtor or an 
        employee of such attorney under the direct supervision 
        of such attorney'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by adding at the end 
                the following: ``If a bankruptcy petition 
                preparer is not an individual, then an officer, 
                principal, responsible person, or partner of 
                the preparer shall be required to--
            ``(A) sign the document for filing; and
            ``(B) print on the document the name and address of 
        that officer, principal, responsible person or 
        partner.''; and
                    (B) by striking paragraph (2) and inserting 
                the following:
    ``(2)(A) Before preparing any document for filing or 
accepting any fees from a debtor, the bankruptcy petition 
preparer shall provide to the debtor a written notice to 
debtors concerning bankruptcy petition preparers, which shall 
be on an official form issued by the Judicial Conference of the 
United States.
    ``(B) The notice under subparagraph (A)--
            ``(i) shall inform the debtor in simple language 
        that a bankruptcy petition preparer is not an attorney 
        and may not practice law or give legal advice;
            ``(ii) may contain a description of examples of 
        legal advice that a bankruptcy petition preparer is not 
        authorized to give, in addition to any advice that the 
        preparer may not give by reason of subsection (e)(2); 
        and
            ``(iii) shall--
                    ``(I) be signed by--
                            ``(aa) the debtor; and
                            ``(bb) the bankruptcy petition 
                        preparer, under penalty of perjury; and
                    ``(II) be filed with any document for 
                filing.'';
            (3) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) by striking ``(2) For 
                        purposes'' and inserting ``(2)(A) 
                        Subject to subparagraph (B), for 
                        purposes''; and
                            (ii) by adding at the end the 
                        following:
    ``(B) If a bankruptcy petition preparer is not an 
individual, the identifying number of the bankruptcy petition 
preparer shall be the Social Security account number of the 
officer, principal, responsible person, or partner of the 
preparer.''; and
                    (B) by striking paragraph (3);
            (4) in subsection (d)--
                    (A) by striking ``(d)(1)'' and inserting 
                ``(d)''; and
                    (B) by striking paragraph (2);
            (5) in subsection (e)--
                    (A) by striking paragraph (2); and
                    (B) by adding at the end the following:
    ``(2)(A) A bankruptcy petition preparer may not offer a 
potential bankruptcy debtor any legal advice, including any 
legal advice described in subparagraph (B).
    ``(B) The legal advice referred to in subparagraph (A) 
includes advising the debtor--
            ``(i) whether--
                    ``(I) to file a petition under this title; 
                or
                    ``(II) commencing a case under chapter 7, 
                11, 12, or 13 is appropriate;
            ``(ii) whether the debtor's debts will be 
        eliminated or discharged in a case under this title;
            ``(iii) whether the debtor will be able to retain 
        the debtor's home, car, or other property after 
        commencing a case under this title;
            ``(iv) concerning--
                    ``(I) the tax consequences of a case 
                brought under this title; or
                    ``(II) the dischargeability of tax claims;
            ``(v) whether the debtor may or should promise to 
        repay debts to a creditor or enter into a reaffirmation 
        agreement with a creditor to reaffirm a debt;
            ``(vi) concerning how to characterize the nature of 
        the debtor's interests in property or the debtor's 
        debts; or
            ``(vii) concerning bankruptcy procedures and 
        rights.'';
            (6) in subsection (f)--
                    (A) by striking ``(f)(1)'' and inserting 
                ``(f)''; and
                    (B) by striking paragraph (2);
            (7) in subsection (g)--
                    (A) by striking ``(g)(1)'' and inserting 
                ``(g)''; and
                    (B) by striking paragraph (2);
            (8) in subsection (h)--
                    (A) by redesignating paragraphs (1) through 
                (4) as paragraphs (2) through (5), 
                respectively;
                    (B) by inserting before paragraph (2), as 
                redesignated, the following:
    ``(1) The Supreme Court may promulgate rules under section 
2075 of title 28, or the Judicial Conference of the United 
States may prescribe guidelines, for setting a maximum 
allowable fee chargeable by a bankruptcy petition preparer. A 
bankruptcy petition preparer shall notify the debtor of any 
such maximum amount before preparing any document for filing 
for a debtor or accepting any fee from the debtor.'';
                    (C) in paragraph (2), as redesignated--
                            (i) by striking ``Within 10 days 
                        after the date of filing a petition, a 
                        bankruptcy petition preparer shall file 
                        a'' and inserting ``A'';
                            (ii) by inserting ``by the 
                        bankruptcy petition preparer shall be 
                        filed together with the petition,'' 
                        after ``perjury''; and
                            (iii) by adding at the end the 
                        following: ``If rules or guidelines 
                        setting a maximum fee for services have 
                        been promulgated or prescribed under 
                        paragraph (1), the declaration under 
                        this paragraph shall include a 
                        certification that the bankruptcy 
                        petition preparer complied with the 
                        notification requirement under 
                        paragraph (1).'';
                    (D) by striking paragraph (3), as 
                redesignated, and inserting the following:
            ``(3)(A) The court shall disallow and order the 
        immediate turnover to the bankruptcy trustee any fee 
        referred to in paragraph (2) found to be in excess of 
        the value of any services--
                    ``(i) rendered by the preparer during the 
                12-month period immediately preceding the date 
                of filing of the petition; or
                    ``(ii) found to be in violation of any rule 
                or guideline promulgated or prescribed under 
                paragraph (1).
            ``(B) All fees charged by a bankruptcy petition 
        preparer may be forfeited in any case in which the 
        bankruptcy petition preparer fails to comply with this 
        subsection or subsection (b), (c), (d), (e), (f), or 
        (g).
            ``(C) An individual may exempt any funds recovered 
        under this paragraph under section 522(b).''; and
                    (E) in paragraph (4), as redesignated, by 
                striking ``or the United States trustee'' and 
                inserting ``the United States trustee, the 
                bankruptcy administrator, or the court, on the 
                initiative of the court,'';
            (9) in subsection (i)(1), by striking the matter 
        preceding subparagraph (A) and inserting the following:
    ``(i)(1) If a bankruptcy petition preparer violates this 
section or commits any act that the court finds to be 
fraudulent, unfair, or deceptive, on motion of the debtor, 
trustee, United States trustee, or bankruptcy administrator, 
and after the court holds a hearing with respect to that 
violation or act, the court shall order the bankruptcy petition 
preparer to pay to the debtor--'';
            (10) in subsection (j)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)(i)(I), by 
                        striking ``a violation of which 
                        subjects a person to criminal 
                        penalty'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``or has 
                                not paid a penalty'' and 
                                inserting ``has not paid a 
                                penalty''; and
                                    (II) by inserting ``or 
                                failed to disgorge all fees 
                                ordered by the court'' after 
                                ``a penalty imposed under this 
                                section,'';
                    (B) by redesignating paragraph (3) as 
                paragraph (4); and
                    (C) by inserting after paragraph (2) the 
                following:
    ``(3) The court, as part of its contempt power, may enjoin 
a bankruptcy petition preparer that has failed to comply with a 
previous order issued under this section. The injunction under 
this paragraph may be issued upon motion of the court, the 
trustee, the United States trustee, or the bankruptcy 
administrator.''; and
            (11) by adding at the end the following:
    ``(l)(1) A bankruptcy petition preparer who fails to comply 
with any provision of subsection (b), (c), (d), (e), (f), (g), 
or (h) may be fined not more than $500 for each such failure.
    ``(2) The court shall triple the amount of a fine assessed 
under paragraph (1) in any case in which the court finds that a 
bankruptcy petition preparer--
            ``(A) advised the debtor to exclude assets or 
        income that should have been included on applicable 
        schedules;
            ``(B) advised the debtor to use a false Social 
        Security account number;
            ``(C) failed to inform the debtor that the debtor 
        was filing for relief under this title; or
            ``(D) prepared a document for filing in a manner 
        that failed to disclose the identity of the preparer.
    ``(3) The debtor, the trustee, a creditor, the United 
States trustee, or the bankruptcy administrator may file a 
motion for an order imposing a fine on the bankruptcy petition 
preparer for each violation of this section.
    ``(4)(A) Fines imposed under this subsection in judicial 
districts served by United States trustees shall be paid to the 
United States trustee, who shall deposit an amount equal to 
such fines in a special account of the United States Trustee 
System Fund referred to in section 586(e)(2) of title 28. 
Amounts deposited under this subparagraph shall be available to 
fund the enforcement of this section on a national basis.
    ``(B) Fines imposed under this subsection in judicial 
districts served by bankruptcy administrators shall be 
deposited as offsetting receipts to the fund established under 
section 1931 of title 28, and shall remain available until 
expended to reimburse any appropriation for the amount paid out 
of such appropriation for expenses of the operation and 
maintenance of the courts of the United States.''.

SEC. 222. SENSE OF CONGRESS.

    It is the sense of Congress that States should develop 
curricula relating to the subject of personal finance, designed 
for use in elementary and secondary schools.

SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.

    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.''.

SEC. 224. 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) in subparagraph (A), by 
                        striking ``and'' at the end;
                            (ii) in subparagraph (B), by 
                        striking the period at the end and 
                        inserting ``; and'';
                            (iii) 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
                            (iv) by striking ``(2)(A) any 
                        property'' and inserting:
    ``(3) Property listed in this paragraph is--
            ``(A) any property'';
                    (B) by striking paragraph (1) and 
                inserting:
    ``(2) Property listed in this paragraph is property that is 
specified under subsection (d), unless the State law that is 
applicable to the debtor under paragraph (3)(A) specifically 
does not so authorize.'';
                    (C) by striking ``(b) Notwithstanding'' and 
                inserting ``(b)(1) Notwithstanding'';
                    (D) by striking ``paragraph (2)'' each 
                place it appears and inserting ``paragraph 
                (3)'';
                    (E) by striking ``paragraph (1)'' each 
                place it appears and inserting ``paragraph 
                (2)'';
                    (F) by striking ``Such property is--''; and
                    (G) by adding at the end the following:
    ``(4) For purposes of paragraph (3)(C) and subsection 
(d)(12), the following shall apply:
            ``(A) If the retirement funds are in a retirement 
        fund that has received a favorable determination under 
        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 
        of this title, 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 
        under 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 the applicable 
                requirements of the Internal Revenue Code of 
                1986 and 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, under section 401(a)(31) 
        of the Internal Revenue Code of 1986, or otherwise, 
        shall not cease to qualify for exemption under 
        paragraph (3)(C) or subsection (d)(12) 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) or 
        subsection (d)(12) 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 a semicolon;
            (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, under 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 or is subject to section 72(p) of the 
                Internal Revenue Code of 1986; or
                    ``(B) in the case of a loan from a thrift 
                savings plan described in subchapter III of 
                chapter 84 of title 5, that satisfies the 
                requirements of section 8433(g) of such 
                title;''; and
            (4) by adding at the end of the flush material at 
        the end of the subsection, the following: ``Nothing in 
        paragraph (19) may be construed to provide that any 
        loan made under a governmental plan under section 
        414(d), or a contract or account under section 403(b) 
        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 this Act, is amended by 
adding at the end the following:
            ``(18) 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, under--
                    ``(A) a loan permitted under section 
                408(b)(1) of the Employee Retirement Income 
                Security Act of 1974, or subject to section 
                72(p) of the Internal Revenue Code of 1986; or
                    ``(B) a loan from the thrift savings plan 
                described in subchapter III of chapter 84 of 
                title 5, that satisfies the requirements of 
                section 8433(g) of such title.
        Nothing in paragraph (18) may be construed to provide 
        that any loan made under a governmental plan under 
        section 414(d), or a contract or account under section 
        403(b), 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) and any amounts required to 
repay such loan shall not constitute `disposable income' under 
section 1325.''.
    (e) Asset Limitation.--Section 522 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(n) For assets in individual retirement accounts 
described in section 408 or 408A of the Internal Revenue Code 
of 1986, other than a simplified employee pension under section 
408(k) of that Code or a simple retirement account under 
section 408(p) of that Code, the aggregate value of such assets 
exempted under this section, without regard to amounts 
attributable to rollover contributions under section 402(c), 
402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8) of the Internal 
Revenue Code of 1986, and earnings thereon, shall not exceed 
$1,000,000 (which amount shall be adjusted as provided in 
section 104 of this title) in a case filed by an individual 
debtor, except that such amount may be increased if the 
interests of justice so require.''.

SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANKRUPTCY.

    (a) Exclusions.--Section 541 of title 11, United States 
Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (4), by striking ``or'' at 
                the end;
                    (B) by redesignating paragraph (5) as 
                paragraph (10); and
                    (C) by inserting after paragraph (4) the 
                following:
            ``(5) funds placed in an education individual 
        retirement account (as defined in section 530(b)(1) of 
        the Internal Revenue Code of 1986) not later than 365 
        days before the date of filing of the petition, but--
                    ``(A) only if the designated beneficiary of 
                such account was a son, daughter, stepson, 
                stepdaughter, grandchild, or step-grandchild of 
                the debtor for the taxable year for which funds 
                were placed in such account;
                    ``(B) only to the extent that such funds--
                            ``(i) are not pledged or promised 
                        to any entity in connection with any 
                        extension of credit; and
                            ``(ii) are not excess contributions 
                        (as described in section 4973(e) of the 
                        Internal Revenue Code of 1986); and
                    ``(C) in the case of funds placed in all 
                such accounts having the same designated 
                beneficiary not earlier than 720 days nor later 
                than 365 days before such date, only so much of 
                such funds as does not exceed $5,000;
            ``(6) funds used to purchase a tuition credit or 
        certificate or contributed to an account in accordance 
        with section 529(b)(1)(A) of the Internal Revenue Code 
        of 1986 under a qualified State tuition program (as 
        defined in section 529(b)(1) of such Code) not later 
        than 365 days before the date of filing of the 
        petition, but--
                    ``(A) only if the designated beneficiary of 
                the amounts paid or contributed to such tuition 
                program was a son, daughter, stepson, 
                stepdaughter, grandchild, or step-grandchild of 
                the debtor for the taxable year for which funds 
                were paid or contributed;
                    ``(B) with respect to the aggregate amount 
                paid or contributed to such program having the 
                same designated beneficiary, only so much of 
                such amount as does not exceed the total 
                contributions permitted under section 529(b)(7) 
                of such Code with respect to such beneficiary, 
                as adjusted beginning on the date of the filing 
                of the petition by the annual increase or 
                decrease (rounded to the nearest tenth of 1 
                percent) in the education expenditure category 
                of the Consumer Price Index prepared by the 
                Department of Labor; and
                    ``(C) in the case of funds paid or 
                contributed to such program having the same 
                designated beneficiary not earlier than 720 
                days nor later than 365 days before such date, 
                only so much of such funds as does not exceed 
                $5,000;''; and
            (2) by adding at the end the following:
    ``(e) In determining whether any of the relationships 
specified in paragraph (5)(A) or (6)(A) of subsection (b) 
exists, a legally adopted child of an individual (and a child 
who is a member of an individual's household, if placed with 
such individual by an authorized placement agency for legal 
adoption by such individual), or a foster child of an 
individual (if such child has as the child's principal place of 
abode the home of the debtor and is a member of the debtor's 
household) shall be treated as a child of such individual by 
blood.''.
    (b) Debtor's Duties.--Section 521 of title 11, United 
States Code, as amended by this Act, is amended by adding at 
the end the following:
    ``(c) In addition to meeting the requirements under 
subsection (a), a debtor shall file with the court a record of 
any interest that a debtor has in an education individual 
retirement account (as defined in section 530(b)(1) of the 
Internal Revenue Code of 1986) or under a qualified State 
tuition program (as defined in section 529(b)(1) of such 
Code).''.

SEC. 226. DEFINITIONS.

    (a) Definitions.--Section 101 of title 11, United States 
Code, is amended--
            (1) by inserting after paragraph (2) the following:
            ``(3) `assisted person' means any person whose 
        debts consist primarily of consumer debts and whose 
        non-exempt assets are less than $150,000;'';
            (2) by inserting after paragraph (4) the following:
            ``(4A) `bankruptcy assistance' means any goods or 
        services sold or otherwise provided to an assisted 
        person with the express or implied purpose of providing 
        information, advice, counsel, document preparation, or 
        filing, or attendance at a creditors' meeting or 
        appearing in a proceeding on behalf of another or 
        providing legal representation with respect to a case 
        or proceeding under this title;''; and
            (3) by inserting after paragraph (12) the 
        following:
            ``(12A) `debt relief agency' means any person who 
        provides any bankruptcy assistance to an assisted 
        person in return for the payment of money or other 
        valuable consideration, or who is a bankruptcy petition 
        preparer under section 110, but does not include--
                    ``(A) any person that is an officer, 
                director, employee or agent of that person;
                    ``(B) a nonprofit organization which is 
                exempt from taxation under section 501(c)(3) of 
                the Internal Revenue Code of 1986;
                    ``(C) a creditor of the person, to the 
                extent that the creditor is assisting the 
                person to restructure any debt owed by the 
                person to the creditor;
                    ``(D) a depository institution (as defined 
                in section 3 of the Federal Deposit Insurance 
                Act) or any Federal credit union or State 
                credit union (as those terms are defined in 
                section 101 of the Federal Credit Union Act), 
                or any affiliate or subsidiary of such a 
                depository institution or credit union; or
                    ``(E) an author, publisher, distributor, or 
                seller of works subject to copyright protection 
                under title 17, when acting in such 
                capacity.''.
    (b) Conforming Amendment.--Section 104(b)(1) of title 11, 
United States Code, is amended by inserting ``101(3),'' after 
``sections''.

SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES.

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

``Sec. 526. Restrictions on debt relief agencies

    ``(a) A debt relief agency shall not--
            ``(1) fail to perform any service that such agency 
        informed an assisted person or prospective assisted 
        person it would provide in connection with a case or 
        proceeding under this title;
            ``(2) make any statement, or counsel or advise any 
        assisted person or prospective assisted person to make 
        a statement in a document filed in a case or proceeding 
        under this title, that is untrue and misleading, or 
        that upon the exercise of reasonable care, should have 
        been known by such agency to be untrue or misleading;
            ``(3) misrepresent to any assisted person or 
        prospective assisted person, directly or indirectly, 
        affirmatively or by material omission, with respect 
        to--
                    ``(i) the services that such agency will 
                provide to such person; or
                    ``(ii) the benefits and risks that may 
                result if such person becomes a debtor in a 
                case under this title; or
            ``(4) advise an assisted person or prospective 
        assisted person to incur more debt in contemplation of 
        such person filing a case under this title or to pay an 
        attorney or bankruptcy petition preparer fee or charge 
        for services performed as part of preparing for or 
        representing a debtor in a case under this title.
    ``(b) Any waiver by any assisted person of any protection 
or right provided under this section shall not be enforceable 
against the debtor by any Federal or State court or any other 
person, but may be enforced against a debt relief agency.
    ``(c)(1) Any contract for bankruptcy assistance between a 
debt relief agency and an assisted person that does not comply 
with the material requirements of this section, section 527, or 
section 528 shall be void and may not be enforced by any 
Federal or State court or by any other person, other than such 
assisted person.
    ``(2) Any debt relief agency shall be liable to an assisted 
person in the amount of any fees or charges in connection with 
providing bankruptcy assistance to such person that such debt 
relief agency has received, for actual damages, and for 
reasonable attorneys' fees and costs if such agency is found, 
after notice and hearing, to have--
            ``(A) intentionally or negligently failed to comply 
        with any provision of this section, section 527, or 
        section 528 with respect to a case or proceeding under 
        this title for such assisted person;
            ``(B) provided bankruptcy assistance to an assisted 
        person in a case or proceeding under this title that is 
        dismissed or converted to a case under another chapter 
        of this title because of such agency's intentional or 
        negligent failure to file any required document 
        including those specified in section 521; or
            ``(C) intentionally or negligently disregarded the 
        material requirements of this title or the Federal 
        Rules of Bankruptcy Procedure applicable to such 
        agency.
    ``(3) In addition to such other remedies as are provided 
under State law, whenever the chief law enforcement officer of 
a State, or an official or agency designated by a State, has 
reason to believe that any person has violated or is violating 
this section, the State--
            ``(A) may bring an action to enjoin such violation;
            ``(B) may bring an action on behalf of its 
        residents to recover the actual damages of assisted 
        persons arising from such violation, including any 
        liability under paragraph (2); and
            ``(C) in the case of any successful action under 
        subparagraph (A) or (B), shall be awarded the costs of 
        the action and reasonable attorney fees as determined 
        by the court.
    ``(4) The United States District Court for any district 
located in the State shall have concurrent jurisdiction of any 
action under subparagraph (A) or (B) of paragraph (3).
    ``(5) Notwithstanding any other provision of Federal law 
and in addition to any other remedy provided under Federal or 
State law, if the court, on its own motion or on motion of the 
United States trustee or the debtor, finds that a person 
intentionally violated this section, or engaged in a clear and 
consistent pattern or practice of violating this section, the 
court may--
            ``(A) enjoin the violation of such section; or
            ``(B) impose an appropriate civil penalty against 
        such person.''.
    ``(d) No provision of this section, section 527, or section 
528 shall--
            ``(1) annul, alter, affect, or exempt any person 
        subject to such sections from complying with any law of 
        any State except to the extent that such law is 
        inconsistent with those sections, and then only to the 
        extent of the inconsistency; or
            ``(2) be deemed to limit or curtail the authority 
        or ability--
                    ``(A) of a State or subdivision or 
                instrumentality thereof, to determine and 
                enforce qualifications for the practice of law 
                under the laws of that State; or
                    ``(B) of a Federal court to determine and 
                enforce the qualifications for the practice of 
                law before that court.''.
    (b) Conforming Amendment.--The table of sections for 
chapter 5 of title 11, United States Code, is amended by 
inserting before the item relating to section 527, the 
following:

``526. Debt relief enforcement.''.

SEC. 228. DISCLOSURES.

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

``Sec. 527. Disclosures

    ``(a) A debt relief agency providing bankruptcy assistance 
to an assisted person shall provide--
            ``(1) the written notice required under section 
        342(b)(1) of this title; and
            ``(2) to the extent not covered in the written 
        notice described in paragraph (1), and not later than 3 
        business days after the first date on which a debt 
        relief agency first offers to provide any bankruptcy 
        assistance services to an assisted person, a clear and 
        conspicuous written notice advising assisted persons 
        that--
                    ``(A) all information that the assisted 
                person is required to provide with a petition 
                and thereafter during a case under this title 
                is required to be complete, accurate, and 
                truthful;
                    ``(B) all assets and all liabilities are 
                required to be completely and accurately 
                disclosed in the documents filed to commence 
                the case, and the replacement value of each 
                asset as defined in section 506 of this title 
                must be stated in those documents where 
                requested after reasonable inquiry to establish 
                such value;
                    ``(C) current monthly income, the amounts 
                specified in section 707(b)(2), and, in a case 
                under chapter 13, disposable income (determined 
                in accordance with section 707(b)(2)), are 
                required to be stated after reasonable inquiry; 
                and
                    ``(D) information that an assisted person 
                provides during their case may be audited 
                pursuant to this title, and that failure to 
                provide such information may result in 
                dismissal of the proceeding under this title or 
                other sanction including, in some instances, 
                criminal sanctions.
    ``(b) A debt relief agency providing bankruptcy assistance 
to an assisted person shall provide each assisted person at the 
same time as the notices required under subsection (a)(1) with 
the following statement, to the extent applicable, or one 
substantially similar. The statement shall be clear and 
conspicuous and shall be in a single document separate from 
other documents or notices provided to the assisted person:
    `` `IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE 
SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.
    `` `If you decide to seek bankruptcy relief, you can 
represent yourself, you can hire an attorney to represent you, 
or you can get help in some localities from a bankruptcy 
petition preparer who is not an attorney. THE LAW REQUIRES AN 
ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN 
CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION 
PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see 
the contract before you hire anyone.
    `` `The following information helps you understand what 
must be done in a routine bankruptcy case to help you evaluate 
how much service you need. Although bankruptcy can be complex, 
many cases are routine.
    `` `Before filing a bankruptcy case, either you or your 
attorney should analyze your eligibility for different forms of 
debt relief made available by the Bankruptcy Code and which 
form of relief is most likely to be beneficial for you. Be sure 
you understand the relief you can obtain and its limitations. 
To file a bankruptcy case, documents called a Petition, 
Schedules and Statement of Financial Affairs, as well as in 
some cases a Statement of Intention need to be prepared 
correctly and filed with the bankruptcy court. You will have to 
pay a filing fee to the bankruptcy court. Once your case 
starts, you will have to attend the required first meeting of 
creditors where you may be questioned by a court official 
called a `trustee' and by creditors.
    `` `If you choose to file a chapter 7 case, you may be 
asked by a creditor to reaffirm a debt. You may want help 
deciding whether to do so and a creditor is not permitted to 
coerce you into reaffirming your debts.
    `` `If you choose to file a chapter 13 case in which you 
repay your creditors what you can afford over 3 to 5 years, you 
may also want help with preparing your chapter 13 plan and with 
the confirmation hearing on your plan which will be before a 
bankruptcy judge.
    `` `If you select another type of relief under the 
Bankruptcy Code other than chapter 7 or chapter 13, you will 
want to find out what needs to be done from someone familiar 
with that type of relief.
    `` `Your bankruptcy case may also involve litigation. You 
are generally permitted to represent yourself in litigation in 
bankruptcy court, but only attorneys, not bankruptcy petition 
preparers, can give you legal advice.'.
    ``(c) Except to the extent the debt relief agency provides 
the required information itself after reasonably diligent 
inquiry of the assisted person or others so as to obtain such 
information reasonably accurately for inclusion on the 
petition, schedules or statement of financial affairs, a debt 
relief agency providing bankruptcy assistance to an assisted 
person, to the extent permitted by nonbankruptcy law, shall 
provide each assisted person at the time required for the 
notice required under subsection (a)(1) reasonably sufficient 
information (which shall be provided in a clear and conspicuous 
writing) to the assisted person on how to provide all the 
information the assisted person is required to provide under 
this title pursuant to section 521, including--
            ``(1) how to value assets at replacement value, 
        determine current monthly income, the amounts specified 
        in section 707(b)(2)) and, in a chapter 13 case, how to 
        determine disposable income in accordance with section 
        707(b)(2) and related calculations;
            ``(2) how to complete the list of creditors, 
        including how to determine what amount is owed and what 
        address for the creditor should be shown; and
            ``(3) how to determine what property is exempt and 
        how to value exempt property at replacement value as 
        defined in section 506 of this title.
    ``(d) A debt relief agency shall maintain a copy of the 
notices required under subsection (a) of this section for 2 
years after the date on which the notice is given the assisted 
person.''.
    (b) Conforming Amendment.--The table of sections for 
chapter 5 of title 11, United States Code, as amended by this 
Act, is amended by inserting after the item relating to section 
526 the following:

``527. Disclosures.''.

SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES.

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

``Sec. 528. Requirements for debt relief agencies

    ``(a) A debt relief agency shall--
            ``(1) not later than 5 business days after the 
        first date such agency provides any bankruptcy 
        assistance services to an assisted person, but prior to 
        such assisted person's petition under this title being 
        filed, execute a written contract with such assisted 
        person that explains clearly and conspicuously--
                    ``(A) the services such agency will provide 
                to such assisted person; and
                    ``(B) the fees or charges for such 
                services, and the terms of payment;
            ``(2) provide the assisted person with a copy of 
        the fully executed and completed contract;
            ``(3) clearly and conspicuously disclose in any 
        advertisement of bankruptcy assistance services or of 
        the benefits of bankruptcy directed to the general 
        public (whether in general media, seminars or specific 
        mailings, telephonic or electronic messages, or 
        otherwise) that the services or benefits are with 
        respect to bankruptcy relief under this title; and
            ``(4) clearly and conspicuously using the following 
        statement: `We are a debt relief agency. We help people 
        file for bankruptcy relief under the Bankruptcy Code.' 
        or a substantially similar statement.
    ``(b)(1) An advertisement of bankruptcy assistance services 
or of the benefits of bankruptcy directed to the general public 
includes--
            ``(A) descriptions of bankruptcy assistance in 
        connection with a chapter 13 plan whether or not 
        chapter 13 is specifically mentioned in such 
        advertisement; and
            ``(B) statements such as `federally supervised 
        repayment plan' or `Federal debt restructuring help' or 
        other similar statements that could lead a reasonable 
        consumer to believe that debt counseling was being 
        offered when in fact the services were directed to 
        providing bankruptcy assistance with a chapter 13 plan 
        or other form of bankruptcy relief under this title.
    ``(2) An advertisement, directed to the general public, 
indicating that the debt relief agency provides assistance with 
respect to credit defaults, mortgage foreclosures, eviction 
proceedings, excessive debt, debt collection pressure, or 
inability to pay any consumer debt shall--
            ``(A) disclose clearly and conspicuously in such 
        advertisement that the assistance may involve 
        bankruptcy relief under this title; and
            ``(B) include the following statement: `We are a 
        debt relief agency. We help people file for bankruptcy 
        relief under the Bankruptcy Code,' or a substantially 
        similar statement.''.
    (b) Conforming Amendment.--The table of sections for 
chapter 5 of title 11, United States Code, as amended by this 
Act, is amended by inserting after the item relating to section 
527, the following:

``528. Debtor's bill of rights.''.

SEC. 230. GAO STUDY.

    (a) Study.--Not later than 270 days after the date of 
enactment of this Act, the Comptroller General of the United 
States shall conduct a study of the feasibility, effectiveness, 
and cost of requiring trustees appointed under title 11, United 
States Code, or the bankruptcy courts, to provide to the Office 
of Child Support Enforcement promptly after the commencement of 
cases by individual debtors under such title, the names and 
social security numbers of such debtors for the purposes of 
allowing such Office to determine whether such debtors have 
outstanding obligations for child support (as determined on the 
basis of information in the Federal Case Registry or other 
national database).
    (b) Report.--Not later than 300 days after the date of 
enactment of this Act, the Comptroller General shall submit to 
the President pro tempore of the Senate and the Speaker of the 
House of Representatives a report containing the results of the 
study required by subsection (a).

                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

SEC. 301. REINFORCEMENT OF THE FRESH START.

    Section 523(a)(17) of title 11, United States Code, is 
amended--
            (1) by striking ``by a court'' and inserting ``on a 
        prisoner by any court'',
            (2) by striking ``section 1915(b) or (f)'' and 
        inserting ``subsection (b) or (f)(2) of section 1915'', 
        and
            (3) by inserting ``(or a similar non-Federal law)'' 
        after ``title 28'' each place it appears.

SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS.

    Section 362(c) of title 11, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``and'' at the 
        end;
            (2) in paragraph (2), by striking the period at the 
        end and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) if a single or joint case is filed by or 
        against an individual debtor under chapter 7, 11, or 
        13, and if a single or joint case of the debtor was 
        pending within the preceding 1-year period but was 
        dismissed, other than a case refiled under a chapter 
        other than chapter 7 after dismissal under section 
        707(b)--
                    ``(A) the stay under subsection (a) with 
                respect to any action taken with respect to a 
                debt or property securing such debt or with 
                respect to any lease shall terminate with 
                respect to the debtor on the 30th day after the 
                filing of the later case;
                    ``(B) upon motion by a party in interest 
                for continuation of the automatic stay and upon 
                notice and a hearing, the court may extend the 
                stay in particular cases as to any or all 
                creditors (subject to such conditions or 
                limitations as the court may then impose) after 
                notice and a hearing completed before the 
                expiration of the 30-day period only if the 
                party in interest demonstrates that the filing 
                of the later case is in good faith as to the 
                creditors to be stayed; and
                    ``(C) for purposes of subparagraph (B), a 
                case is presumptively filed not in good faith 
                (but such presumption may be rebutted by clear 
                and convincing evidence to the contrary)--
                            ``(i) as to all creditors, if--
                                    ``(I) more than 1 previous 
                                case under any of chapter 7, 
                                11, or 13 in which the 
                                individual was a debtor was 
                                pending within the preceding 1-
                                year period;
                                    ``(II) a previous case 
                                under any of chapter 7, 11, or 
                                13 in which the individual was 
                                a debtor was dismissed within 
                                such 1-year period, after the 
                                debtor failed to--
                                            ``(aa) file or 
                                        amend the petition or 
                                        other documents as 
                                        required by this title 
                                        or the court without 
                                        substantial excuse (but 
                                        mere inadvertence or 
                                        negligence shall not be 
                                        a substantial excuse 
                                        unless the dismissal 
                                        was caused by the 
                                        negligence of the 
                                        debtor's attorney);
                                            ``(bb) provide 
                                        adequate protection as 
                                        ordered by the court; 
                                        or
                                            ``(cc) perform the 
                                        terms of a plan 
                                        confirmed by the court; 
                                        or
                                    ``(III) there has not been 
                                a substantial change in the 
                                financial or personal affairs 
                                of the debtor since the 
                                dismissal of the next most 
                                previous case under chapter 7, 
                                11, or 13 or any other reason 
                                to conclude that the later case 
                                will be concluded--
                                            ``(aa) if a case 
                                        under chapter 7, with a 
                                        discharge; or
                                            ``(bb) if a case 
                                        under chapter 11 or 13, 
                                        with a confirmed plan 
                                        which will be fully 
                                        performed; and
                            ``(ii) as to any creditor that 
                        commenced an action under subsection 
                        (d) in a previous case in which the 
                        individual was a debtor if, as of the 
                        date of dismissal of such case, that 
                        action was still pending or had been 
                        resolved by terminating, conditioning, 
                        or limiting the stay as to actions of 
                        such creditor; and
            ``(4)(A)(i) if a single or joint case is filed by 
        or against an individual debtor under this title, and 
        if 2 or more single or joint cases of the debtor were 
        pending within the previous year but were dismissed, 
        other than a case refiled under section 707(b), the 
        stay under subsection (a) shall not go into effect upon 
        the filing of the later case; and
            ``(ii) on request of a party in interest, the court 
        shall promptly enter an order confirming that no stay 
        is in effect;
            ``(B) if, within 30 days after the filing of the 
        later case, a party in interest requests the court may 
        order the stay to take effect in the case as to any or 
        all creditors (subject to such conditions or 
        limitations as the court may impose), after notice and 
        hearing, only if the party in interest demonstrates 
        that the filing of the later case is in good faith as 
        to the creditors to be stayed;
            ``(C) a stay imposed under subparagraph (B) shall 
        be effective on the date of entry of the order allowing 
        the stay to go into effect; and
            ``(D) for purposes of subparagraph (B), a case is 
        presumptively not filed in good faith (but such 
        presumption may be rebutted by clear and convincing 
        evidence to the contrary)--
                    ``(i) as to all creditors if--
                            ``(I) 2 or more previous cases 
                        under this title in which the 
                        individual was a debtor were pending 
                        within the 1-year period;
                            ``(II) a previous case under this 
                        title in which the individual was a 
                        debtor was dismissed within the time 
                        period stated in this paragraph after 
                        the debtor failed to file or amend the 
                        petition or other documents as required 
                        by this title or the court without 
                        substantial excuse (but mere 
                        inadvertence or negligence shall not be 
                        substantial excuse unless the dismissal 
                        was caused by the negligence of the 
                        debtor's attorney), failed to pay 
                        adequate protection as ordered by the 
                        court, or failed to perform the terms 
                        of a plan confirmed by the court; or
                            ``(III) there has not been a 
                        substantial change in the financial or 
                        personal affairs of the debtor since 
                        the dismissal of the next most previous 
                        case under this title, or any other 
                        reason to conclude that the later case 
                        will not be concluded, if a case under 
                        chapter 7, with a discharge, and if a 
                        case under chapter 11 or 13, with a 
                        confirmed plan that will be fully 
                        performed; or
                    ``(ii) as to any creditor that commenced an 
                action under subsection (d) in a previous case 
                in which the individual was a debtor if, as of 
                the date of dismissal of such case, such action 
                was still pending or had been resolved by 
                terminating, conditioning, or limiting the stay 
                as to action of such creditor.''.

SEC. 303. CURBING ABUSIVE FILINGS.

    (a) In General.--Section 362(d) of title 11, United States 
Code, is amended--
            (1) in paragraph (2), by striking ``or'' at the 
        end;
            (2) in paragraph (3), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) with respect to a stay of an act against real 
        property under subsection (a), by a creditor whose 
        claim is secured by an interest in such real 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 under 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 the date of entry of such 
order by the court, 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. Any Federal, State, or local governmental unit that 
accepts notices of interests or liens in real property shall 
accept any certified copy of an order described in this 
subsection for indexing and recording.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United 
States Code, is amended by inserting after paragraph (19), as 
added by this Act, the following:
            ``(20) under subsection (a), 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, except 
        that the debtor, in a subsequent case, may move the 
        court for relief from such order based upon changed 
        circumstances or for other good cause shown, after 
        notice and a hearing;
            ``(21) under subsection (a), of any act to enforce 
        any lien against or security interest in real 
        property--
                    ``(A) if the debtor is ineligible under 
                section 109(g) to be a debtor in a 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. 304. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

    Title 11, United States Code, is amended--
            (1) in section 521(a) (as so designated by this 
        Act)--
                    (A) in paragraph (4), by striking ``, and'' 
                at the end and inserting a semicolon;
                    (B) in paragraph (5), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) in an individual case under chapter 7 of this 
        title, not retain possession of personal property as to 
        which a creditor has an allowed claim for the purchase 
        price secured in whole or in part by an interest in 
        that personal property unless, in the case of an 
        individual debtor, the debtor, not later than 45 days 
        after the first meeting of creditors under section 
        341(a), either--
                    ``(A) enters into an agreement with the 
                creditor pursuant to section 524(c) of this 
                title with respect to the claim secured by such 
                property; or
                    ``(B) redeems such property from the 
                security interest pursuant to section 722 of 
                this title.
If the debtor fails to so act within the 45-day period referred 
to in paragraph (6), the stay under section 362(a) of this 
title is terminated with respect to the personal property of 
the estate or of the debtor which is affected, such property 
shall no longer be property of the estate, and the creditor may 
take whatever action as to such property as is permitted by 
applicable nonbankruptcy law, unless the court determines on 
the motion of the trustee brought before the expiration of such 
45-day period, and after notice and a hearing, that such 
property is of consequential value or benefit to the estate, 
orders appropriate adequate protection of the creditor's 
interest, and orders the debtor to deliver any collateral in 
the debtor's possession to the trustee.''; and
            (2) in section 722, by inserting ``in full at the 
        time of redemption'' before the period at the end.

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

    Title 11, United States Code, is amended--
            (1) in section 362--
                    (A) in subsection (c), by striking ``(e), 
                and (f)'' inserting ``(e), (f), and (h)'';
                    (B) by redesignating subsection (h) as 
                subsection (k); and
                    (C) by inserting after subsection (g) the 
                following:
    ``(h)(1) In an individual case under chapter 7, 11, or 13, 
the stay provided by subsection (a) is terminated with respect 
to personal property of the estate or of the debtor securing in 
whole or in part a claim, or subject to an unexpired lease, and 
such personal property shall no longer be property of the 
estate if the debtor fails within the applicable time set by 
section 521(a)(2) of this title--
            ``(A) to file timely any statement of intention 
        required under section 521(a)(2) of this title with 
        respect to that property or to indicate in that 
        statement that the debtor will either surrender the 
        property or retain it and, if retaining it, either 
        redeem the property pursuant to section 722 of this 
        title, reaffirm the debt it secures pursuant to section 
        524(c) of this title, or assume the unexpired lease 
        pursuant to section 365(p) of this title if the trustee 
        does not do so, as applicable; and
            ``(B) to take timely the action specified in that 
        statement of intention, as it may be amended before 
        expiration of the period for taking action, unless the 
        statement of intention specifies reaffirmation and the 
        creditor refuses to reaffirm on the original contract 
        terms.
    ``(2) Paragraph (1) does not apply if the court determines, 
on the motion of the trustee filed before the expiration of the 
applicable time set by section 521(a)(2), after notice and a 
hearing, that such property is of consequential value or 
benefit to the estate, and orders appropriate adequate 
protection of the creditor's interest, and orders the debtor to 
deliver any collateral in the debtor's possession to the 
trustee. If the court does not so determine, the stay provided 
by subsection (a) shall terminate upon the conclusion of the 
proceeding on the motion.''; and
            (2) in section 521--
                    (A) in subsection (a)(2), as so designated 
                by this Act, by striking ``consumer'';
                    (B) in subsection (a)(2)(B), as so 
                designated by this Act--
                            (i) by striking ``forty-five days 
                        after the filing of a notice of intent 
                        under this section'' and inserting ``30 
                        days after the first date set for the 
                        meeting of creditors under section 
                        341(a) of this title''; and
                            (ii) by striking ``forty-five day'' 
                        and inserting ``30-day'';
                    (C) in subsection (a)(2)(C), as so 
                designated by this Act, by inserting ``, except 
                as provided in section 362(h) of this title'' 
                before the semicolon; and
                    (D) by adding at the end the following:
    ``(d) If the debtor fails timely to take the action 
specified in subsection (a)(6) of this section, or in 
paragraphs (1) and (2) of section 362(h) of this title, with 
respect to property which a lessor or bailor owns and has 
leased, rented, or bailed to the debtor or as to which a 
creditor holds a security interest not otherwise voidable under 
section 522(f), 544, 545, 547, 548, or 549 of this title, 
nothing in this title shall prevent or limit the operation of a 
provision in the underlying lease or agreement which has the 
effect of placing the debtor in default under such lease or 
agreement by reason of the occurrence, pendency, or existence 
of a proceeding under this title or the insolvency of the 
debtor. Nothing in this subsection shall be deemed to justify 
limiting such a provision in any other circumstance.''.

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

    (a) In General.--Section 1325(a)(5)(B)(i) of title 11, 
United States Code, is amended to read as follows:
                    ``(i) the plan provides that--
                            ``(I) the holder of such claim 
                        retain the lien securing such claim 
                        until the earlier of--
                                    ``(aa) the payment of the 
                                underlying debt determined 
                                under nonbankruptcy law; or
                                    ``(bb) discharge under 
                                section 1328; and
                            ``(II) if the case under this 
                        chapter is dismissed or converted 
                        without completion of the plan, such 
                        lien shall also be retained by such 
                        holder to the extent recognized by 
                        applicable nonbankruptcy law; and''.
    (b) Restoring the Foundation for Secured Credit.--Section 
1325(a) of title 11, United States Code, is amended by adding 
at the end the following flush sentence:
``For purposes of paragraph (5), section 506 shall not apply to 
a claim described in that paragraph if the creditor has a 
purchase money security interest securing the debt that is the 
subject of the claim, the debt was incurred within the 5-year 
period preceding the filing of the petition, and the collateral 
for that debt consists of a motor vehicle (as defined in 
section 30102 of title 49) acquired for the personal use of the 
debtor, or if collateral for that debt consists of any other 
thing of value, if the debt was incurred during the 1-year 
period preceding that filing.''.
    (c) Definitions.--Section 101 of title 11, United States 
Code, as amended by 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 
                cooperative unit, a mobile or manufactured 
                home, or trailer;''; and
            (2) by inserting after paragraph (27), the 
        following:
            ``(27A) `incidental property' means, with respect 
        to a debtor's principal residence--
                    ``(A) property commonly conveyed with a 
                principal residence in the area where the real 
                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. 307. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.

    Section 522(b)(3)(A) of title 11, United States Code, as so 
designated by this Act, is amended--
            (1) by striking ``180 days'' and inserting ``730 
        days''; and
            (2) by striking ``, or for a longer portion of such 
        180-day period than in any other place'' and inserting 
        ``or if the debtor's domicile has not been located at a 
        single State for such 730-day period, the place in 
        which the debtor's domicile was located for 180 days 
        immediately preceding the 730-day period or for a 
        longer portion of such 180-day period than in any other 
        place''.

SEC. 308. RESIDENCY REQUIREMENT FOR HOMESTEAD EXEMPTION.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (b)(3)(A), as so designated by 
        this Act, by inserting ``subject to subsections (o) and 
        (p),'' before ``any property''; and
            (2) by adding at the end the following:
    ``(o) For purposes of subsection (b)(3)(A), and 
notwithstanding subsection (a), the value of an interest in--
            ``(1) real or personal property that the debtor or 
        a dependent of the debtor uses as a residence;
            ``(2) a cooperative that owns property that the 
        debtor or a dependent of the debtor uses as a 
        residence; or
            ``(3) a burial plot for the debtor or a dependent 
        of the debtor;
shall be reduced to the extent that such value is attributable 
to any portion of any property that the debtor disposed of in 
the 7-year period ending on the date of the filing of the 
petition with the intent to hinder, delay, or defraud a 
creditor and that the debtor could not exempt, or that portion 
that the debtor could not exempt, under subsection (b), if on 
such date the debtor had held the property so disposed of.''.

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

    (a) Stopping Abusive Conversions From Chapter 13.--Section 
348(f)(1) of title 11, United States Code, is amended--
            (1) in subparagraph (A), by striking ``and'' at the 
        end;
            (2) in subparagraph (B)--
                    (A) by striking ``in the converted case, 
                with allowed secured claims'' and inserting 
                ``only in a case converted to a case under 
                chapter 11 or 12, but not in a case converted 
                to a case under chapter 7, with allowed secured 
                claims in cases under chapters 11 and 12''; and
                    (B) by striking the period and inserting 
                ``; and''; and
            (3) by adding at the end the following:
            ``(C) with respect to cases converted from chapter 
        13--
                    ``(i) the claim of any creditor holding 
                security as of the date of the petition shall 
                continue to be secured by that security unless 
                the full amount of such claim determined under 
                applicable nonbankruptcy law has been paid in 
                full as of the date of conversion, 
                notwithstanding any valuation or determination 
                of the amount of an allowed secured claim made 
                for the purposes of the chapter 13 proceeding; 
                and
                    ``(ii) unless a prebankruptcy default has 
                been fully cured under the plan at the time of 
                conversion, in any proceeding under this title 
                or otherwise, the default shall have the effect 
                given under applicable nonbankruptcy law.''.
    (b) Giving Debtors the Ability To Keep Leased Personal 
Property by Assumption.--Section 365 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(p)(1) If a lease of personal property is rejected or not 
timely assumed by the trustee under subsection (d), the leased 
property is no longer property of the estate and the stay under 
section 362(a) is automatically terminated.
    ``(2)(A) In the case of an individual under chapter 7, the 
debtor may notify the creditor in writing that the debtor 
desires to assume the lease. Upon being so notified, the 
creditor may, at its option, notify the debtor that it is 
willing to have the lease assumed by the debtor and may 
condition such assumption on cure of any outstanding default on 
terms set by the contract.
    ``(B) If, not later than 30 days after notice is provided 
under subparagraph (A), the debtor notifies the lessor in 
writing that the lease is assumed, the liability under the 
lease will be assumed by the debtor and not by the estate.
    ``(C) The stay under section 362 and the injunction under 
section 524(a)(2) shall not be violated by notification of the 
debtor and negotiation of cure under this subsection.
    ``(3) In a case under chapter 11 in which the debtor is an 
individual and in a case under chapter 13, if the debtor is the 
lessee with respect to personal property and the lease is not 
assumed in the plan confirmed by the court, the lease is deemed 
rejected as of the conclusion of the hearing on confirmation. 
If the lease is rejected, the stay under section 362 and any 
stay under section 1301 is automatically terminated with 
respect to the property subject to the lease.''.
    (c) Adequate Protection of Lessors and Purchase Money 
Secured Creditors.--
            (1) Confirmation of plan.--Section 1325(a)(5)(B) of 
        title 11, United States Code, is amended--
                    (A) in clause (i), by striking ``and'' at 
                the end;
                    (B) in clause (ii), by striking ``or'' at 
                the end and inserting ``and''; and
                    (C) by adding at the end the following:
                            ``(iii) if--
                                    ``(I) property to be 
                                distributed pursuant to this 
                                subsection is in the form of 
                                periodic payments, such 
                                payments shall be in equal 
                                monthly amounts; and
                                    ``(II) the holder of the 
                                claim is secured by personal 
                                property, the amount of such 
                                payments shall not be less than 
                                an amount sufficient to provide 
                                to the holder of such claim 
                                adequate protection during the 
                                period of the plan; or''.
            (2) Payments.--Section 1326(a) of title 11, United 
        States Code, is amended to read as follows:
    ``(a)(1) Unless the court orders otherwise, the debtor 
shall commence making payments not later than 30 days after the 
date of the filing of the plan or the order for relief, 
whichever is earlier, in the amount--
            ``(A) proposed by the plan to the trustee;
            ``(B) scheduled in a lease of personal property 
        directly to the lessor for that portion of the 
        obligation that becomes due after the order for relief, 
        reducing the payments under subparagraph (A) by the 
        amount so paid and providing the trustee with evidence 
        of such payment, including the amount and date of 
        payment; and
            ``(C) that provides adequate protection directly to 
        a creditor holding an allowed claim secured by personal 
        property to the extent the claim is attributable to the 
        purchase of such property by the debtor for that 
        portion of the obligation that becomes due after the 
        order for relief, reducing the payments under 
        subparagraph (A) by the amount so paid and providing 
        the trustee with evidence of such payment, including 
        the amount and date of payment.
    ``(2) A payment made under paragraph (1)(A) shall be 
retained by the trustee until confirmation or denial of 
confirmation. If a plan is confirmed, the trustee shall 
distribute any such payment in accordance with the plan as soon 
as is practicable. If a plan is not confirmed, the trustee 
shall return any such payments not previously paid and not yet 
due and owing to creditors pursuant to paragraph (3) to the 
debtor, after deducting any unpaid claim allowed under section 
503(b).
    ``(3) Subject to section 363, the court may, upon notice 
and a hearing, modify, increase, or reduce the payments 
required under this subsection pending confirmation of a plan.
    ``(4) Not later than 60 days after the date of filing of a 
case under this chapter, a debtor retaining possession of 
personal property subject to a lease or securing a claim 
attributable in whole or in part to the purchase price of such 
property shall provide the lessor or secured creditor 
reasonable evidence of the maintenance of any required 
insurance coverage with respect to the use or ownership of such 
property and continue to do so for so long as the debtor 
retains possession of such property.''.

SEC. 310. LIMITATION ON LUXURY GOODS.

    Section 523(a)(2)(C) of title 11, United States Code, is 
amended to read as follows:
            ``(C)(i) for purposes of subparagraph (A)--
                    ``(I) consumer debts owed to a single 
                creditor and aggregating more than $250 for 
                luxury goods or services incurred by an 
                individual debtor on or within 90 days before 
                the order for relief under this title are 
                presumed to be nondischargeable; and
                    ``(II) cash advances aggregating more than 
                $750 that are extensions of consumer credit 
                under an open end credit plan obtained by an 
                individual debtor on or within 70 days before 
                the order for relief under this title, are 
                presumed to be nondischargeable; and
            ``(ii) for purposes of this subparagraph--
                    ``(I) the term `extension of credit under 
                an open end credit plan' means an extension of 
                credit under an open end credit plan, within 
                the meaning of the Consumer Credit Protection 
                Act (15 U.S.C. 1601 et seq.);
                    ``(II) the term `open end credit plan' has 
                the meaning given that term under section 103 
                of Consumer Credit Protection Act (15 U.S.C. 
                1602); and
                    ``(III) the term `luxury goods or services' 
                does not include goods or services reasonably 
                necessary for the support or maintenance of the 
                debtor or a dependent of the debtor.''.

SEC. 311. AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, is amended 
by inserting after paragraph (21), as added by this Act, the 
following:
            ``(22) under subsection (a)(3), 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;
            ``(23) under subsection (a)(3), of the commencement 
        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 under the lease agreement or applicable 
        State law;
            ``(24) under subsection (a)(3), of eviction actions 
        based on endangerment to property or person or the use 
        of illegal drugs;
            ``(25) under subsection (a) of any transfer that is 
        not avoidable under section 544 and that is not 
        avoidable under section 549;''.

SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY DISCHARGES.

    Title 11, United States Code, is amended--
            (1) in section 727(a)(8), by striking ``six'' and 
        inserting ``8''; and
            (2) in section 1328, by inserting after subsection 
        (e) the following:
    ``(f) Notwithstanding subsections (a) and (b), the court 
shall not grant a discharge of all debts provided for by the 
plan or disallowed under section 502 if the debtor has received 
a discharge in any case filed under this title within 5 years 
before the order for relief under this chapter.''.

SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

    (a) Definition.--Section 522(f) of title 11, United States 
Code, is amended by adding at the end the following:
    ``(4)(A) Subject to subparagraph (B), for purposes of 
paragraph (1)(B), the term `household goods' means--
            ``(i) clothing;
            ``(ii) furniture;
            ``(iii) appliances;
            ``(iv) 1 radio;
            ``(v) 1 television;
            ``(vi) 1 VCR;
            ``(vii) linens;
            ``(viii) china;
            ``(ix) crockery;
            ``(x) kitchenware;
            ``(xi) educational materials and educational 
        equipment primarily for the use of minor dependent 
        children of the debtor, but only 1 personal computer 
        only if used primarily for the education or 
        entertainment of such minor children;
            ``(xii) medical equipment and supplies;
            ``(xiii) furniture exclusively for the use of minor 
        children, or elderly or disabled dependents of the 
        debtor; and
            ``(xiv) personal effects (including the toys and 
        hobby equipment of minor dependent children and wedding 
        rings) of the debtor and the dependents of the debtor.
    ``(B) The term `household goods' does not include--
            ``(i) works of art (unless by or of the debtor or 
        the dependents of the debtor);
            ``(ii) electronic entertainment equipment (except 1 
        television, 1 radio, and 1 VCR);
            ``(iii) items acquired as antiques;
            ``(iv) jewelry (except wedding rings); and
            ``(v) a computer (except as otherwise provided for 
        in this section), motor vehicle (including a tractor or 
        lawn tractor), boat, or a motorized recreational 
        device, conveyance, vehicle, watercraft, or 
        aircraft.''.
    (b) Study.--Not later than 2 years after the date of 
enactment of this Act, the Director of the Executive Office for 
United States Trustees shall submit a report to the Committee 
on the Judiciary of the Senate and the Committee on the 
Judiciary of the House of Representatives containing its 
findings regarding utilization of the definition of household 
goods, as defined in section 522(f)(4) of title 11, United 
States Code, as added by this section, with respect to the 
avoidance of nonpossessory, nonpurchase money security 
interests in household goods under section 522(f)(1)(B) of 
title 11, United States Code, and the impact that section 
522(f)(4) of that title, as added by this section, has had on 
debtors and on the bankruptcy courts. Such report may include 
recommendations for amendments to section 522(f)(4) of title 
11, United States Code, consistent with the Director's 
findings.

SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE DEBTS.

    (a) In General.--Section 523(a) of title 11, United States 
Code, is amended by inserting after paragraph (14) the 
following:
            ``(14A) incurred to pay a tax to a governmental 
        unit, other than the United States, that would be 
        nondischargeable under paragraph (1);''.
    (b) Discharge Under Chapter 13.--Section 1328(a) of title 
11, United States Code, is amended by striking paragraphs (1) 
through (3) and inserting the following:
            ``(1) provided for under section 1322(b)(5);
            ``(2) of the kind specified in paragraph (2), (3), 
        (4), (5), (8), or (9) of section 523(a);
            ``(3) for restitution, or a criminal fine, included 
        in a sentence on the debtor's conviction of a crime; or
            ``(4) for restitution, or damages, awarded in a 
        civil action against the debtor as a result of willful 
        or malicious injury by the debtor that caused personal 
        injury to an individual or the death of an 
        individual.''.

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

    (a) Notice.--Section 342 of title 11, United States Code, 
as amended by this Act, is amended--
            (1) in subsection (c)--
                    (A) by inserting ``(1)'' after ``(c)'';
                    (B) by striking ``, but the failure of such 
                notice to contain such information shall not 
                invalidate the legal effect of such notice''; 
                and
                    (C) by adding at the end the following:
            ``(2) If, within the 90 days prior to the date of 
        the filing of a petition in a voluntary case, the 
        creditor supplied the debtor in at least 2 
        communications sent to the debtor with the current 
        account number of the debtor and the address at which 
        the creditor wishes to receive correspondence, then the 
        debtor shall send any notice required under this title 
        to the address provided by the creditor and such notice 
        shall include the account number. In the event the 
        creditor would be in violation of applicable 
        nonbankruptcy law by sending any such communication 
        within such 90-day period and if the creditor supplied 
        the debtor in the last 2 communications with the 
        current account number of the debtor and the address at 
        which the creditor wishes to receive correspondence, 
        then the debtor shall send any notice required under 
        this title to the address provided by the creditor and 
        such notice shall include the account number.''; and
            (2) by adding at the end the following:
    ``(e) At any time, a creditor, in a case of an individual 
debtor 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. Five days after receipt of such notice, 
if the court or the debtor is required to give the creditor 
notice, such 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 chapters 7 and 13. After 
30 days following the filing of such 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. If the 
creditor designates a person or department to be responsible 
for receiving notices concerning bankruptcy cases and 
establishes reasonable procedures so that bankruptcy notices 
received by the creditor are to be delivered to such department 
or person, notice shall not be considered to have been brought 
to the attention of the creditor until received by such person 
or department.
    ``(2) No sanction under section 362(k) or any other 
sanction that a court may impose on account of violations of 
the stay under section 362(a) or failure to comply with section 
542 or 543 may be imposed on any action of the creditor unless 
the action takes place after the creditor has received notice 
of the commencement of the case effective under this 
section.''.
    (b) Debtor's Duties.--Section 521 of title 11, United 
States Code, as amended by this Act, is amended--
            (1) in subsection (a), as so designated by this 
        Act, 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 under 
                                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 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 before the filing of the petition;
                            ``(v) a statement of the amount of 
                        monthly net income, itemized to show 
                        how the amount is calculated; and
                            ``(vi) a statement disclosing any 
                        reasonably anticipated increase in 
                        income or expenditures over the 12-
                        month period following the date of 
                        filing;''; and
            (2) by adding at the end the following:
    ``(e)(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)(A) The debtor shall provide either a tax return or 
transcript at the election of the debtor, for the latest 
taxable period prior to filing for which a tax return has been 
or should have been filed, to the trustee, not later than 7 
days before the date first set for the first meeting of 
creditors, or the case shall be dismissed, unless the debtor 
demonstrates that the failure to file a return as required is 
due to circumstances beyond the control of the debtor.
    ``(B) If a creditor has requested a tax return or 
transcript referred to in subparagraph (A), the debtor shall 
provide such tax return or transcript to the requesting 
creditor at the time the debtor provides the tax return or 
transcript to the trustee, or the case shall be dismissed, 
unless the debtor demonstrates that the debtor is unable to 
provide such information due to circumstances beyond the 
control of the debtor.
    ``(3)(A) 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.
    ``(B) The court shall make such plan available to the 
creditor who request such plan--
            ``(i) at a reasonable cost; and
            ``(ii) not later than 5 days after such request.
    ``(f) An individual debtor in a case under chapter 7, 11, 
or 13 shall file with the court at the request of any party in 
interest--
            ``(1) at the time filed with the taxing authority, 
        all tax returns required under applicable law, 
        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 required under applicable law, 
        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 of 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.
    ``(g)(1) A statement referred to in subsection (f)(4) shall 
disclose--
            ``(A) the amount and sources of income of the 
        debtor;
            ``(B) the identity of any person responsible with 
        the debtor for the support of any dependent of the 
        debtor; and
            ``(C) the identity of any person who contributed, 
        and the amount contributed, to the household in which 
        the debtor resides.
    ``(2) The tax returns, amendments, and statement of income 
and expenditures described in subsection (e)(2)(A) and 
subsection (f) 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 (h).
    ``(h)(1) Not later than 180 days after the date of 
enactment of the Bankruptcy Reform Act of 2000, 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 and 180 days after the date of 
enactment of the Bankruptcy Reform Act of 2000, 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 
        to--
                    ``(i) further protect the confidentiality 
                of tax information; and
                    ``(ii) provide penalties for the improper 
                use by any person of the tax information 
                required to be provided under this section.
    ``(i) If requested by the United States trustee or a 
trustee serving in the case, the debtor shall provide--
            ``(1) a document that establishes the identity of 
        the debtor, including a driver's license, passport, or 
        other document that contains a photograph of the 
        debtor; and
            ``(2) such other personal identifying information 
        relating to the debtor that establishes the identity of 
        the debtor.''.

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

    Section 521 of title 11, United States Code, as amended by 
this Act, is amended by adding at the end the following:
    ``(j)(1) Notwithstanding section 707(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 subsection (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. If requested, the court shall enter an 
order of dismissal not later than 5 days after such 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 45 days to file the information 
required under subsection (a)(1) if the court finds 
justification for extending the period for the filing.''.

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

    Section 1324 of title 11, United States Code, is amended--
            (1) by striking ``After'' and inserting the 
        following:
    ``(a) Except as provided in subsection (b) and after''; and
            (2) by adding at the end the following:
    ``(b) The hearing on confirmation of the plan may be held 
not earlier than 20 days and not later than 45 days after the 
date of the meeting of creditors under section 341(a).''.

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

    Title 11, United States Code, is amended--
            (1) by amending section 1322(d) to read as follows:
    ``(d)(1) If the current monthly income of the debtor and 
the debtor's spouse combined, when multiplied by 12, is not 
less than--
            ``(A) in the case of a debtor in a household of 1 
        person, the median family income of the applicable 
        State for 1 earner last reported by the Bureau of the 
        Census;
            ``(B) in the case of a debtor in a household of 2, 
        3, or 4 individuals, the highest median family income 
        of the applicable State for a family of the same number 
        or fewer individuals last reported by the Bureau of the 
        Census; or
            ``(C) in the case of a debtor in a household 
        exceeding 4 individuals, the highest median family 
        income of the applicable State for a family of 4 or 
        fewer individuals last reported by the Bureau of the 
        Census, plus $525 per month for each individual in 
        excess of 4,
the plan may not provide for payments over a period that is 
longer than 5 years.
    ``(2) If the current monthly income of the debtor and the 
debtor's spouse combined, when multiplied by 12, is less than--
            ``(A) in the case of a debtor in a household of 1 
        person, the median family income of the applicable 
        State for 1 earner last reported by the Bureau of the 
        Census;
            ``(B) in the case of a debtor in a household of 2, 
        3, or 4 individuals, the highest median family income 
        of the applicable State for a family of the same number 
        or fewer individuals last reported by the Bureau of the 
        Census; or
            ``(C) in the case of a debtor in a household 
        exceeding 4 individuals, the highest median family 
        income of the applicable State for a family of 4 or 
        fewer individuals last reported by the Bureau of the 
        Census, plus $525 per month for each individual in 
        excess of 4,
the plan may not provide for payments over a period that is 
longer than 3 years, unless the court, for cause, approves a 
longer period, but the court may not approve a period that is 
longer than 5 years.'';
            (2) in section 1325(b)(1)(B), by striking ``three-
        year period'' and inserting ``applicable commitment 
        period''; and
            (3) in section 1325(b), as amended by this Act, by 
        adding at the end the following:
            ``(4) For purposes of this subsection, the 
        `applicable commitment period'--
            ``(A) subject to subparagraph (B), shall be--
                    ``(i) 3 years; or
                    ``(ii) not less than 5 years, if the 
                current monthly income of the debtor and the 
                debtor's spouse combined, when multiplied by 
                12, is not less than--
                            ``(I) in the case of a debtor in a 
                        household of 1 person, the median 
                        family income of the applicable State 
                        for 1 earner last reported by the 
                        Bureau of the Census;
                            ``(II) in the case of a debtor in a 
                        household of 2, 3, or 4 individuals, 
                        the highest median family income of the 
                        applicable State for a family of the 
                        same number or fewer individuals last 
                        reported by the Bureau of the Census; 
                        or
                            ``(III) in the case of a debtor in 
                        a household exceeding 4 individuals, 
                        the highest median family income of the 
                        applicable State for a family of 4 or 
                        fewer individuals last reported by the 
                        Bureau of the Census, plus $525 per 
                        month for each individual in excess of 
                        4; and
            ``(B) may be less than 3 or 5 years, whichever is 
        applicable under subparagraph (A), but only if the plan 
        provides for payment in full of all allowed unsecured 
        claims over a shorter period.''; and
            (4) in section 1329(c), by striking ``three years'' 
        and inserting ``the applicable commitment period under 
        section 1325(b)(1)(B)''.

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

    It is the sense of Congress that rule 9011 of the Federal 
Rules of Bankruptcy Procedure (11 U.S.C. App.) should be 
modified to include a requirement that all documents (including 
schedules), signed and unsigned, submitted to the court or to a 
trustee by debtors who represent themselves and debtors who are 
represented by an attorney be submitted only after the debtor 
or the debtor's attorney has made reasonable inquiry to verify 
that the information contained in such documents is--
            (1) well grounded in fact; and
            (2) warranted by existing law or a good-faith 
        argument for the extension, modification, or reversal 
        of existing law.

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

    Section 362(e) of title 11, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(e)''; and
            (2) by adding at the end the following:
    ``(2) Notwithstanding paragraph (1), in 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, as described in findings made 
                by the court.''.

SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.

    (a) Property of the Estate.--
            (1) In general.--Subchapter I of chapter 11 of 
        title 11, United States Code, is amended by adding at 
        the end the following:

``Sec. 1115. Property of the estate

    ``(a) In a case concerning an individual debtor, property 
of the estate includes, in addition to the property specified 
in section 541--
            ``(1) all property of the kind specified in section 
        541 that the debtor acquires after the commencement of 
        the case but before the case is closed, dismissed, or 
        converted to a case under chapter 7, 12, or 13, 
        whichever occurs first; and
            ``(2) earnings from services performed by the 
        debtor after the commencement of the case but before 
        the case is closed, dismissed, or converted to a case 
        under chapter 7, 12, or 13, whichever occurs first.''.
    ``(b) Except as provided in section 1104 or a confirmed 
plan or order confirming a plan, the debtor shall remain in 
possession of all property of the estate.''.
            (2) Clerical amendment.--The table of sections for 
        chapter 11 of title 11, United States Code, is amended 
        by adding at the end of the matter relating to 
        subchapter I the following:

``1115. Property of the estate.''.

    (b) Contents of Plan.--Section 1123(a) of title 11, United 
States Code, is amended--
            (1) in paragraph (6), by striking ``and'' at the 
        end;
            (2) in paragraph (7), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) in a case concerning an individual, provide 
        for the payment to creditors through the plan of all or 
        such portion of earnings from personal services 
        performed by the debtor after the commencement of the 
        case or other future income of the debtor as is 
        necessary for the execution of the plan.''.
    (c) Confirmation of Plan.--
            (1) Requirements relating to value of property.--
        Section 1129(a) of title 11, United States Code, is 
        amended by adding at the end the following:
            ``(15) In a case concerning an individual in which 
        the holder of an allowed unsecured claim objects to the 
        confirmation of the plan--
                    ``(A) the value of the property to be 
                distributed under the plan on account of such 
                claim is, as of the effective date of the plan, 
                not less than the amount of such claim; or
                    ``(B) the value of the property to be 
                distributed under the plan is not less than the 
                debtor's projected disposable income (as that 
                term is defined in section 1325(b)(2)) to be 
                received during the 5-year period beginning on 
                the date that the first payment is due under 
                the plan, or during the term of the plan, 
                whichever is longer.''.
            (2) Requirement relating to interests in 
        property.--Section 1129(b)(2)(B)(ii) of title 11, 
        United States Code, is amended by inserting before the 
        period at the end the following: ``, except that in a 
        case concerning an individual, the debtor may retain 
        property included in the estate under section 1115, 
        subject to the requirements of subsection (a)(14)''.
    (d) Effect of Confirmation--Section 1141(d) of title 11, 
United States Code, is amended--
            (1) in paragraph (2), by striking ``The 
        confirmation of a plan does not discharge an individual 
        debtor'' and inserting ``A discharge under this chapter 
        does not discharge a debtor''; and
            (2) by adding at the end the following:
    ``(5) In a case concerning an individual--
            ``(A) except as otherwise ordered for cause shown, 
        the discharge is not effective until completion of all 
        payments under the plan; and
            ``(B) at any time after the confirmation of the 
        plan and after notice and a hearing, the court may 
        grant a discharge to a debtor that has not completed 
        payments under the plan only if--
                    ``(i) for each allowed unsecured claim, the 
                value, as of the effective date of the plan, of 
                property actually distributed under the plan on 
                account of that claim is not less than the 
                amount that would have been paid on such claim 
                if the estate of the debtor had been liquidated 
                under chapter 7 of this title on such date; and
                    ``(ii) modification of the plan under 1127 
                of this title is not practicable.''.
    (e) Modification of Plan.--Section 1127 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(e) In a case concerning an individual, the plan may be 
modified at any time after confirmation of the plan but before 
the completion of payments under the plan, whether or not the 
plan has been substantially consummated, upon request of the 
debtor, the trustee, the United States trustee, or the holder 
of an allowed unsecured claim, to--
            ``(1) increase or reduce the amount of payments on 
        claims of a particular class provided for by the plan;
            ``(2) extend or reduce the time period for such 
        payments; or
            ``(3) alter the amount of the distribution to a 
        creditor whose claim is provided for by the plan to the 
        extent necessary to take account of any payment of such 
        claim made other than under the plan.
    ``(f)(1) Sections 1121 through 1128 of this title and the 
requirements of section 1129 of this title apply to any 
modification under subsection (a).
    ``(2) The plan, as modified, shall become the plan only 
after there has been disclosure under section 1125, as the 
court may direct, notice and a hearing, and such modification 
is approved.''.

SEC. 322. LIMITATION.

    (a) Exemptions.--Section 522 of title 11, United States 
Code, as amended by this Act, is amended by adding at the end 
the following:
    ``(p)(1) Except as provided in paragraph (2) of this 
subsection and sections 544 and 548 of this title, as a result 
of electing under subsection (b)(3)(A) to exempt property under 
State or local law, a debtor may not exempt any amount of 
interest that was acquired by the debtor during the 2-year 
period preceding the filing of the petition which 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)(A) The limitation under paragraph (1) shall not apply 
to an exemption claimed under subsection (b)(3)(A) by a family 
farmer for the principal residence of that farmer.
    ``(B) For purposes of paragraph (1), any amount of such 
interest does not include any interest transferred from a 
debtor's previous principal residence (which was acquired prior 
to the beginning of the 2-year period) into the debtor's 
current principal residence, where the debtor's previous and 
current residences are located in the same State.''.
    (b) Adjustment of Dollar Amounts.--Section 104(b) of title 
11, United States Code, is amended--
            (1) in paragraph (1), by striking ``522(d),'' and 
        inserting ``522(d), 522(n), 522(p),''; and
            (2) in paragraph (3), by striking ``522(d),'' and 
        inserting ``522(d), 522(n), 522(p),''.

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

    (a) In General.--Section 541(b) of title 11, United States 
Code, is amended by inserting after paragraph (6), as added by 
this Act, the following:
            ``(7) any amount--
                    ``(A) withheld by an employer from the 
                wages of employees for payment as contributions 
                to--
                            ``(i) an employee benefit plan 
                        subject to title I of the Employee 
                        Retirement Income Security Act of 1974 
                        (29 U.S.C. 1001 et seq.) or under an 
                        employee benefit plan which is a 
                        governmental plan under section 414(d) 
                        of the Internal Revenue Code of 1986, a 
                        deferred compensation plan under 
                        section 457 of the Internal Revenue 
                        Code of 1986, or a tax-deferred annuity 
                        under section 403(b) of the Internal 
                        Revenue Code of 1986, except that 
                        amount shall not constitute disposable 
                        income, as defined in section 
                        1325(b)(2) of this title; or
                            ``(ii) a health insurance plan 
                        regulated by State law whether or not 
                        subject to such title; or
                    ``(B) received by the employer from 
                employees for payment as contributions to--
                            ``(i) an employee benefit plan 
                        subject to title I of the Employee 
                        Retirement Income Security Act of 1974 
                        (29 U.S.C. 1001 et seq.) or under an 
                        employee benefit plan which is a 
                        governmental plan under section 414(d) 
                        of the Internal Revenue Code of 1986, a 
                        deferred compensation plan under 
                        section 457 of the Internal Revenue 
                        Code of 1986, or a tax-deferred annuity 
                        under section 403(b) of the Internal 
                        Revenue Code of 1986, except that 
                        amount shall not constitute disposable 
                        income, as defined in section 
                        1325(b)(2) of this title; or
                            ``(ii) a health insurance plan 
                        regulated by State law whether or not 
                        subject to such title;''.
    (b) Application of Amendment.--The amendments made by this 
section shall not apply to cases commenced under title 11, 
United States Code, before the expiration of the 180-day period 
beginning on the date of enactment of this Act.

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

    (a) In General.--Section 1334 of title 28, United States 
Code, is amended--
            (1) in subsection (b), by striking 
        ``Notwithstanding'' and inserting ``Except as provided 
        in subsection (e)(2), and notwithstanding''; and
            (2) by striking subsection (e) and inserting the 
        following:
    ``(e) The district court in which a case under title 11 is 
commenced or is pending shall have exclusive jurisdiction--
            ``(1) of all the property, wherever located, of the 
        debtor as of the date of commencement of such case, and 
        of property of the estate; and
            ``(2) over all claims or causes of action that 
        involve construction of section 327 of title 11, United 
        States Code, or rules relating to disclosure 
        requirements under section 327.''.
    (b) Applicability.--This section shall only apply to cases 
filed after the date of enactment of this Act.

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

    (a) Actions Under Chapter 7 or 13 of Title 11, United 
States Code.--Section 1930(a) of title 28, United States Code, 
is amended by striking paragraph (1) and inserting the 
following:
            ``(1) For a case commenced--
                    ``(A) under chapter 7 of title 11, $160; or
                    ``(B) under chapter 13 of title 11, 
                $150.''.
    (b) United States Trustee System Fund.--Section 589a(b) of 
title 28, United States Code, is amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1)(A) 40.63 percent of the fees collected under 
        section 1930(a)(1)(A) of this title in cases commenced 
        under chapter 7 of title 11; and
            ``(B) 70.00 percent of the fees collected under 
        section 1930(a)(1)(B) of this title in cases commenced 
        under chapter 13 of title 11;'';
            (2) in paragraph (2), by striking ``one-half'' and 
        inserting ``three-fourths''; and
            (3) in paragraph (4), by striking ``one-half'' and 
        inserting ``100 percent''.
    (c) Collection and Deposit of Miscellaneous Bankruptcy 
Fees.--Section 406(b) of the Judiciary Appropriations Act, 1990 
(28 U.S.C. 1931 note) is amended by striking ``pursuant to 28 
U.S.C. section 1930(b) and 30.76 per centum of the fees 
hereafter collected under 28 U.S.C. section 1930(a)(1) and 25 
percent of the fees hereafter collected under 28 U.S.C. section 
1930(a)(3) shall be deposited as offsetting receipts to the 
fund established under 28 U.S.C. section 1931'' and inserting 
``under section 1930(b) of title 28, United States Code, and 
31.25 percent of the fees collected under section 1930(a)(1)(A) 
of that title, 30.00 percent of the fees collected under 
section 1930(a)(1)(B) of that title, and 25 percent of the fees 
collected under section 1930(a)(3) of that title shall be 
deposited as offsetting receipts to the fund established under 
section 1931 of that title''.

SEC. 326. SHARING OF COMPENSATION.

    Section 504 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(c) This section shall not apply with respect to sharing, 
or agreeing to share, compensation with a bona fide public 
service attorney referral program that operates in accordance 
with non-Federal law regulating attorney referral services and 
with rules of professional responsibility applicable to 
attorney acceptance of referrals.''.

SEC. 327. FAIR VALUATION OF COLLATERAL.

    Section 506(a) of title 11, United States Code, is amended 
by--
            (1) inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:
    ``(2) In the case of an individual debtor under chapters 7 
and 13, such value with respect to personal property securing 
an allowed claim shall be determined based on the replacement 
value of such property as of the date of filing the petition 
without deduction for costs of sale or marketing. With respect 
to property acquired for personal, family, or household 
purpose, replacement value shall mean the price a retail 
merchant would charge for property of that kind considering the 
age and condition of the property at the time value is 
determined.''.

SEC. 328. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

    (a) Executory Contracts and Unexpired Leases.--Section 365 
of title 11, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A), by striking the 
                semicolon at the end and inserting the 
                following: ``other than a default that is a 
                breach of a provision relating to the 
                satisfaction of any provision (other than a 
                penalty rate or penalty provision) relating to 
                a default arising from any failure to perform 
                nonmonetary obligations under an unexpired 
                lease of real property, if it is impossible for 
                the trustee to cure such default by performing 
                nonmonetary acts at and after the time of 
                assumption, except that if such default arises 
                from a failure to operate in accordance with a 
                nonresidential real property lease, then such 
                default shall be cured by performance at and 
                after the time of assumption in accordance with 
                such lease, and pecuniary losses resulting from 
                such default shall be compensated in accordance 
                with the provisions of paragraph (b)(l);''; and
                    (B) in paragraph (2)(D), by striking 
                ``penalty rate or provision'' and inserting 
                ``penalty rate or penalty provision'';
            (2) in subsection (c)--
                    (A) in paragraph (2), by inserting ``or'' 
                at the end;
                    (B) in paragraph (3), by striking ``; or'' 
                at the end and inserting a period; and
                    (C) by striking paragraph (4);
            (3) in subsection (d)--
                    (A) by striking paragraphs (5) through (9); 
                and
                    (B) by redesignating paragraph (10) as 
                paragraph (5); and
            (4) in subsection (f)(1) by striking ``; except 
        that'' and all that follows through the end of the 
        paragraph and inserting a period.
    (b) Impairment of Claims or Interests.--Section 1124(2) of 
title 11, United States Code, is amended--
            (1) in subparagraph (A), by inserting ``or of a 
        kind that section 365(b)(2) of this title expressly 
        does not require to be cured'' before the semicolon at 
        the end;
            (2) in subparagraph (C), by striking ``and'' at the 
        end;
            (3) by redesignating subparagraph (D) as 
        subparagraph (E); and
            (4) by inserting after subparagraph (C) the 
        following:
                    ``(D) if such claim or such interest arises 
                from any failure to perform a nonmonetary 
                obligation, other than a default arising from 
                failure to operate a non-residential real 
                property lease subject to section 365(b)(1)(A), 
                compensates the holder of such claim or such 
                interest (other than the debtor or an insider) 
                for any actual pecuniary loss incurred by such 
                holder as a result of such failure; and''.

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

SEC. 401. ADEQUATE PROTECTION FOR INVESTORS.

    (a) Definition.--Section 101 of title 11, United States 
Code, as amended by this Act, is amended by inserting after 
paragraph (48) the following:
            ``(48A) `securities self regulatory organization' 
        means either a securities association registered with 
        the Securities and Exchange Commission under section 
        15A of the Securities Exchange Act of 1934 (15 U.S.C. 
        78o-3) or a national securities exchange registered 
        with the Securities and Exchange Commission under 
        section 6 of the Securities Exchange Act of 1934 (15 
        U.S.C. 78f);''.
    (b) Automatic Stay.--Section 362(b) of title 11, United 
States Code, is amended by inserting after paragraph (25), as 
added by this Act, the following:
            ``(26) under subsection (a), of--
                    ``(A) the commencement or continuation of 
                an investigation or action by a securities self 
                regulatory organization to enforce such 
                organization's regulatory power;
                    ``(B) the enforcement of an order or 
                decision, other than for monetary sanctions, 
                obtained in an action by the securities self 
                regulatory organization to enforce such 
                organization's regulatory power; or
                    ``(C) any act taken by the securities self 
                regulatory organization to delist, delete, or 
                refuse to permit quotation of any stock that 
                does not meet applicable regulatory 
                requirements;''.

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

    Section 341 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(e) Notwithstanding subsections (a) and (b), the court, 
on the request of a party in interest and after notice and a 
hearing, for cause may order that the United States trustee not 
convene a meeting of creditors or equity security holders if 
the debtor has filed a plan as to which the debtor solicited 
acceptances prior to the commencement of the case.''.

SEC. 403. PROTECTION OF REFINANCE OF SECURITY INTEREST.

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

SEC. 404. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

    (a) In General.--Section 365(d)(4) of title 11, United 
States Code, is amended to read as follows:
    ``(4)(A) Subject to subparagraph (B), 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)(i) The court may extend the period determined under 
subparagraph (A), prior to the expiration of the 120-day 
period, for 90 days upon motion of the trustee or lessor for 
cause.
    ``(ii) If the court grants an extension under clause (i), 
the court may grant a subsequent extension only upon prior 
written consent of the lessor in each instance.''.
    (b) Exception.--Section 365(f)(1) of title 11, United 
States Code, is amended by striking ``subsection'' the first 
place it appears and inserting ``subsections (b) and''.

SEC. 405. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

    (a) Appointment.--Section 1102(a) of title 11, United 
States Code, is amended by adding at the end the following:
    ``(4) On request of a party in interest and after notice 
and a hearing, the court may order the United States trustee to 
change the membership of a committee appointed under this 
subsection, if the court determines that the change is 
necessary to ensure adequate representation of creditors or 
equity security holders. The court may order the United States 
trustee to increase the number of members of a committee to 
include a creditor that is a small business concern (as 
described in section 3(a)(1) of the Small Business Act (15 
U.S.C. 632(a)(1))), if the court determines that the creditor 
holds claims (of the kind represented by the committee) the 
aggregate amount of which, in comparison to the annual gross 
revenue of that creditor, is disproportionately large.''.
    (b) Information.--Section 1102(b) of title 11, United 
States Code, is amended by adding at the end the following:
    ``(3) A committee appointed under subsection (a) shall--
            ``(A) provide access to information for creditors 
        who--
                    ``(i) hold claims of the kind represented 
                by that committee; and
                    ``(ii) are not appointed to the committee;
            ``(B) solicit and receive comments from the 
        creditors described in subparagraph (A); and
            ``(C) be subject to a court order that compels any 
        additional report or disclosure to be made to the 
        creditors described in subparagraph (A).''.

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

    Section 546 of title 11, United States Code, is amended--
            (1) by redesignating the second subsection 
        designated as subsection (g) (as added by section 
        222(a) of Public Law 103-394) as subsection (i); and
            (2) by adding at the end the following:
    ``(j)(1) Notwithstanding paragraphs (2) and (3) of section 
545, the trustee may not avoid a warehouseman's lien for 
storage, transportation, or other costs incidental to the 
storage and handling of goods.
    ``(2) The prohibition under paragraph (1) shall be applied 
in a manner consistent with any applicable State statute that 
is similar to section 7-209 of the Uniform Commercial Code, as 
in effect on the date of enactment of the Bankruptcy Reform Act 
of 2000, or any successor thereto.''.

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

    Section 330(a) of title 11, United States Code, is 
amended--
            (1) in paragraph (3)--
                    (A) by striking ``(A) In'' and inserting 
                ``In''; and
                    (B) by inserting ``to an examiner, trustee 
                under chapter 11, or professional person'' 
                after ``awarded''; and
            (2) by adding at the end the following:
            ``(7) In determining the amount of reasonable 
        compensation to be awarded to a trustee, the court 
        shall treat such compensation as a commission, based on 
        section 326 of this title.''.

SEC. 408. POSTPETITION DISCLOSURE AND SOLICITATION.

    Section 1125 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(g) Notwithstanding subsection (b), an acceptance or 
rejection of the plan may be solicited from a holder of a claim 
or interest if such solicitation complies with applicable 
nonbankruptcy law and if such holder was solicited before the 
commencement of the case in a manner complying with applicable 
nonbankruptcy law.''.

SEC. 409. PREFERENCES.

    Section 547(c) of title 11, United States Code, is 
amended--
            (1) by striking paragraph (2) and inserting the 
        following:
            ``(2) to the extent that such transfer was in 
        payment of a debt incurred by the debtor in the 
        ordinary course of business or financial affairs of the 
        debtor and the transferee, and such transfer was--
                    ``(A) made in the ordinary course of 
                business or financial affairs of the debtor and 
                the transferee; or
                    ``(B) made according to ordinary business 
                terms;'';
            (2) in paragraph (8), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(9) if, in a case filed by a debtor whose debts 
        are not primarily consumer debts, the aggregate value 
        of all property that constitutes or is affected by such 
        transfer is less than $5,000.''.

SEC. 410. VENUE OF CERTAIN PROCEEDINGS.

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

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

    Section 1121(d) of title 11, United States Code, is 
amended--
            (1) by striking ``On'' and inserting ``(1) Subject 
        to paragraph (2), on''; and
            (2) by adding at the end the following:
    ``(2)(A) The 120-day period specified in paragraph (1) may 
not be extended beyond a date that is 18 months after the date 
of the order for relief under this chapter.
    ``(B) The 180-day period specified in paragraph (1) may not 
be extended beyond a date that is 20 months after the date of 
the order for relief under this chapter.''.

SEC. 412. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

    Section 523(a)(16) of title 11, United States Code, is 
amended--
            (1) by striking ``dwelling'' the first place it 
        appears;
            (2) by striking ``ownership or'' and inserting 
        ``ownership,'';
            (3) by striking ``housing'' the first place it 
        appears; and
            (4) by striking ``but only'' and all that follows 
        through ``such period'' and inserting ``or a lot in a 
        homeowners association, for as long as the debtor or 
        the trustee has a legal, equitable, or possessory 
        ownership interest in such unit, such corporation, or 
        such lot,''.

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

    Section 341(c) of title 11, United States Code, is amended 
by inserting at the end the following: ``Notwithstanding any 
local court rule, provision of a State constitution, any 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 1 creditor) shall be permitted to 
appear at and participate in the meeting of creditors in a case 
under chapter 7 or 13, either alone or in conjunction with an 
attorney for the creditor. Nothing in this subsection shall be 
construed to require any creditor to be represented by an 
attorney at any meeting of creditors.''.

SEC. 414. DEFINITION OF DISINTERESTED PERSON.

    Section 101(14) of title 11, United States Code, is amended 
to read as follows:
            ``(14) `disinterested person' means a person that--
                    ``(A) is not a creditor, an equity security 
                holder, or an insider;
                    ``(B) is not and was not, within 2 years 
                before the date of the filing of the petition, 
                a director, officer, or employee of the debtor; 
                and
                    ``(C) does not have an interest materially 
                adverse to the interest of the estate or of any 
                class of creditors or equity security holders, 
                by reason of any direct or indirect 
                relationship to, connection with, or interest 
                in, the debtor, or for any other reason;''.

SEC. 415. FACTORS FOR COMPENSATION OF PROFESSIONAL PERSONS.

    Section 330(a)(3) of title 11, United States Code, as 
amended by this Act, is amended--
            (1) in subparagraph (D), by striking ``and'' at the 
        end;
            (2) by redesignating subparagraph (E) as 
        subparagraph (F); and
            (3) by inserting after subparagraph (D) the 
        following:
                    ``(E) with respect to a professional 
                person, whether the person is board certified 
                or otherwise has demonstrated skill and 
                experience in the bankruptcy field; and''.

SEC. 416. APPOINTMENT OF ELECTED TRUSTEE.

    Section 1104(b) of title 11, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2)(A) If an eligible, disinterested trustee is elected 
at a meeting of creditors under paragraph (1), the United 
States trustee shall file a report certifying that election.
    ``(B) Upon the filing of a report under subparagraph (A)--
            ``(i) the trustee elected under paragraph (1) shall 
        be considered to have been selected and appointed for 
        purposes of this section; and
            ``(ii) the service of any trustee appointed under 
        subsection (d) shall terminate.
    ``(C) In the case of any dispute arising out of an election 
described in subparagraph (A), the court shall resolve the 
dispute.''.

SEC. 417. UTILITY SERVICE.

    Section 366 of title 11, United States Code, is amended--
            (1) in subsection (a), by striking ``subsection 
        (b)'' and inserting ``subsections (b) and (c)''; and
            (2) by adding at the end the following:
    ``(c)(1)(A) For purposes of this subsection, the term 
`assurance of payment' means--
            ``(i) a cash deposit;
            ``(ii) a letter of credit;
            ``(iii) a certificate of deposit;
            ``(iv) a surety bond;
            ``(v) a prepayment of utility consumption; or
            ``(vi) another form of security that is mutually 
        agreed on between the utility and the debtor or the 
        trustee.
    ``(B) For purposes of this subsection an administrative 
expense priority shall not constitute an assurance of payment.
    ``(2) Subject to paragraphs (3) through (5), with respect 
to a case filed under chapter 11, a utility referred to in 
subsection (a) may alter, refuse, or discontinue utility 
service, if during the 30-day period beginning on the date of 
filing of the petition, the utility does not receive from the 
debtor or the trustee adequate assurance of payment for utility 
service that is satisfactory to the utility.
    ``(3)(A) On request of a party in interest and after notice 
and a hearing, the court may order modification of the amount 
of an assurance of payment under paragraph (2).
    ``(B) In making a determination under this paragraph 
whether an assurance of payment is adequate, the court may not 
consider--
            ``(i) the absence of security before the date of 
        filing of the petition;
            ``(ii) the payment by the debtor of charges for 
        utility service in a timely manner before the date of 
        filing of the petition; or
            ``(iii) the availability of an administrative 
        expense priority.
    ``(4) Notwithstanding any other provision of law, with 
respect to a case subject to this subsection, a utility may 
recover or set off against a security deposit provided to the 
utility by the debtor before the date of filing of the petition 
without notice or order of the court.''.

SEC. 418. BANKRUPTCY FEES.

    Section 1930 of title 28, United States Code, is amended--
            (1) in subsection (a), by striking 
        ``Notwithstanding section 1915 of this title, the'' and 
        inserting ``The''; and
            (2) by adding at the end the following:
    ``(f)(1) Under the procedures prescribed by the Judicial 
Conference of the United States, the district court or the 
bankruptcy court may waive the filing fee in a case under 
chapter 7 of title 11 for an individual if the court determines 
that such debtor has income less than 150 percent of the income 
official poverty line (as defined by the Office of Management 
and Budget, and revised annually in accordance with section 
673(2) of the Omnibus Budget Reconciliation Act of 1981) 
applicable to a family of the size involved and is unable to 
pay that fee in installments. For purposes of this paragraph, 
the term ``filing fee'' means the filing required by subsection 
(a), or any other fee prescribed by the Judicial Conference 
under subsections (b) and (c) that is payable to the clerk upon 
the commencement of a case under chapter 7.
    ``(2) The district court or the bankruptcy court may waive 
for such debtors other fees prescribed under subsections (b) 
and (c).
    ``(3) This subsection does not restrict the district court 
or the bankruptcy court from waiving, in accordance with 
Judicial Conference policy, fees prescribed under this section 
for other debtors and creditors.''.

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

    (a) In General.--
            (1) Disclosure.--The Advisory Committee on 
        Bankruptcy Rules of the Judicial Conference of the 
        United States, after consideration of the views of the 
        Director of the Executive Office for United States 
        Trustees, shall propose for adoption amended Federal 
        Rules of Bankruptcy Procedure and Official Bankruptcy 
        Forms directing debtors under chapter 11 of title 11, 
        United States Code, to disclose the information 
        described in paragraph (2) by filing and serving 
        periodic financial and other reports designed to 
        provide such information.
            (2) Information.--The information referred to in 
        paragraph (1) is the value, operations, and 
        profitability of any closely held corporation, 
        partnership, or of any other entity in which the debtor 
        holds a substantial or controlling interest.
    (b) Purpose.--The purpose of the rules and reports under 
subsection (a) shall be to assist parties in interest taking 
steps to ensure that the debtor's interest in any entity 
referred to in subsection (a)(2) is used for the payment of 
allowed claims against debtor.

            Subtitle B--Small Business Bankruptcy Provisions

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

    Section 1125 of title 11, United States Code, is amended--
            (1) in subsection (a)(1), by inserting before the 
        semicolon ``and in determining whether a disclosure 
        statement provides adequate information, the court 
        shall consider the complexity of the case, the benefit 
        of additional information to creditors and other 
        parties in interest, and the cost of providing 
        additional information''; and
            (2) by striking subsection (f), and inserting the 
        following:
    ``(f) Notwithstanding subsection (b), in a small business 
case--
            ``(1) the court may determine that the plan itself 
        provides adequate information and that a separate 
        disclosure statement is not necessary;
            ``(2) the court may approve a disclosure statement 
        submitted on standard forms approved by the court or 
        adopted under section 2075 of title 28; and
            ``(3)(A) the court may conditionally approve a 
        disclosure statement subject to final approval after 
        notice and a hearing;
            ``(B) acceptances and rejections of a plan may be 
        solicited based on a conditionally approved disclosure 
        statement if the debtor provides adequate information 
        to each holder of a claim or interest that is 
        solicited, but a conditionally approved disclosure 
        statement shall be mailed not later than 20 days before 
        the date of the hearing on confirmation of the plan; 
        and
            ``(C) the hearing on the disclosure statement may 
        be combined with the hearing on confirmation of a 
        plan.''.

SEC. 432. DEFINITIONS.

    (a) Definitions.--Section 101 of title 11, United States 
Code, as amended by this Act, is amended by striking paragraph 
(51C) and inserting the following:
            ``(51C) `small business case' means a case filed 
        under chapter 11 of this title in which the debtor is a 
        small business debtor;
            ``(51D) `small business debtor'--
                    ``(A) subject to subparagraph (B), means a 
                person engaged in commercial or business 
                activities (including any affiliate of such 
                person that is also a debtor under this title 
                and excluding a person whose primary activity 
                is the business of owning or operating real 
                property or activities incidental thereto) that 
                has aggregate noncontingent, liquidated secured 
                and unsecured debts as of the date of the 
                petition or the order for relief in an amount 
                not more than $3,000,000 (excluding debts owed 
                to 1 or more affiliates or insiders) for a case 
                in which the United States trustee has not 
                appointed under section 1102(a)(1) a committee 
                of unsecured creditors or where the court has 
                determined that the committee of unsecured 
                creditors is not sufficiently active and 
                representative to provide effective oversight 
                of the debtor; and
                    ``(B) does not include any member of a 
                group of affiliated debtors that has aggregate 
                noncontingent liquidated secured and unsecured 
                debts in an amount greater than $3,000,000 
                (excluding debt owed to 1 or more affiliates or 
                insiders);''.
    (b) Conforming Amendment.--Section 1102(a)(3) of title 11, 
United States Code, is amended by inserting ``debtor'' after 
``small business''.

SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

    Within a reasonable period of time after the date of 
enactment of this Act, the Advisory Committee on Bankruptcy 
Rules of the Judicial Conference of the United States shall 
propose for adoption standard form disclosure statements and 
plans of reorganization for small business debtors (as defined 
in section 101 of title 11, United States Code, as amended by 
this Act), designed to achieve a practical balance between--
            (1) the reasonable needs of the courts, the United 
        States trustee, creditors, and other parties in 
        interest for reasonably complete information; and
            (2) economy and simplicity for debtors.

SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.

    (a) Reporting Required.--
            (1) In general.--Chapter 3 of title 11, United 
        States Code, is amended by inserting after section 307 
        the following:

``Sec. 308. Debtor reporting requirements

    ``(a) For purposes of this section, the term 
`profitability' means, with respect to a debtor, the amount of 
money that the debtor has earned or lost during current and 
recent fiscal periods.
    ``(b) A small business debtor shall file periodic financial 
and other reports containing information including--
            ``(1) the debtor's profitability;
            ``(2) reasonable approximations of the debtor's 
        projected cash receipts and cash disbursements over a 
        reasonable period;
            ``(3) comparisons of actual cash receipts and 
        disbursements with projections in prior reports;
            ``(4)(A) whether the debtor is--
                    ``(i) in compliance in all material 
                respects with postpetition requirements imposed 
                by this title and the Federal Rules of 
                Bankruptcy Procedure; and
                    ``(ii) timely filing tax returns and other 
                required government filings and paying taxes 
                and other administrative claims when due;
            ``(B) if the debtor is not in compliance with the 
        requirements referred to in subparagraph (A)(i) or 
        filing tax returns and other required government 
        filings and making the payments referred to in 
        subparagraph (A)(ii), what the failures are and how, at 
        what cost, and when the debtor intends to remedy such 
        failures; and
            ``(C) such other matters as are in the best 
        interests of the debtor and creditors, and in the 
        public interest in fair and efficient procedures under 
        chapter 11 of this title.''.
            (2) Clerical amendment.--The table of sections for 
        chapter 3 of title 11, United States Code, is amended 
        by inserting after the item relating to section 307 the 
        following:

``308. Debtor reporting requirements.''.

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

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

    (a) Proposal of Rules and Forms.--The Advisory Committee on 
Bankruptcy Rules of the Judicial Conference of the United 
States shall propose for adoption amended Federal Rules of 
Bankruptcy Procedure and Official Bankruptcy Forms to be used 
by small business debtors to file periodic financial and other 
reports containing information, including information relating 
to--
            (1) the debtor's profitability;
            (2) the debtor's cash receipts and disbursements; 
        and
            (3) whether the debtor is timely filing tax returns 
        and paying taxes and other administrative claims when 
        due.
    (b) Purpose.--The rules and forms proposed under subsection 
(a) shall be designed to achieve a practical balance among--
            (1) the reasonable needs of the bankruptcy court, 
        the United States trustee, creditors, and other parties 
        in interest for reasonably complete information;
            (2) the small business debtor's interest that 
        required reports be easy and inexpensive to complete; 
        and
            (3) the interest of all parties that the required 
        reports help the small business debtor to understand 
        the small business debtor's financial condition and 
        plan the small business debtor's future.

SEC. 436. DUTIES IN SMALL BUSINESS CASES.

    (a) Duties in Chapter 11 Cases.--Subchapter I of title 11, 
United States Code, as amended by this Act, is amended by 
adding at the end the following:

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

    ``In a small business case, a trustee or the debtor in 
possession, in addition to the duties provided in this title 
and as otherwise required by law, shall--
            ``(1) append to the voluntary petition or, in an 
        involuntary case, file not later than 7 days after the 
        date of the order for relief--
                    ``(A) its most recent balance sheet, 
                statement of operations, cash-flow statement, 
                Federal income tax return; or
                    ``(B) a statement made under penalty of 
                perjury that no balance sheet, statement of 
                operations, or cash-flow statement has been 
                prepared and no Federal tax return has been 
                filed;
            ``(2) attend, through its senior management 
        personnel and counsel, meetings scheduled by the court 
        or the United States trustee, including initial debtor 
        interviews, scheduling conferences, and meetings of 
        creditors convened under section 341 unless the court 
        waives that requirement after notice and hearing, upon 
        a finding of extraordinary and compelling 
        circumstances;
            ``(3) timely file all schedules and statements of 
        financial affairs, unless the court, after notice and a 
        hearing, grants an extension, which shall not extend 
        such time period to a date later than 30 days after the 
        date of the order for relief, absent extraordinary and 
        compelling circumstances;
            ``(4) file all postpetition financial and other 
        reports required by the Federal Rules of Bankruptcy 
        Procedure or by local rule of the district court;
            ``(5) subject to section 363(c)(2), maintain 
        insurance customary and appropriate to the industry;
            ``(6)(A) timely file tax returns and other required 
        government filings; and
            ``(B) subject to section 363(c)(2), timely pay all 
        administrative expense tax claims, except those being 
        contested by appropriate proceedings being diligently 
        prosecuted; and
            ``(7) allow the United States trustee, or a 
        designated representative of the United States trustee, 
        to inspect the debtor's business premises, books, and 
        records at reasonable times, after reasonable prior 
        written notice, unless notice is waived by the 
        debtor.''.
    (b) Clerical Amendment.--The table of sections for chapter 
11 of title 11, United States Code, is amended by adding at the 
end of the matter relating to subchapter I the following:

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

SEC. 437. PLAN FILING AND CONFIRMATION DEADLINES.

    Section 1121 of title 11, United States Code, is amended by 
striking subsection (e) and inserting the following:
    ``(e) In a small business case--
            ``(1) only the debtor may file a plan until after 
        180 days after the date of the order for relief, unless 
        that period is--
                    ``(A) extended as provided by this 
                subsection, after notice and hearing; or
                    ``(B) the court, for cause, orders 
                otherwise;
            ``(2) the plan, and any necessary disclosure 
        statement, shall be filed not later than 300 days after 
        the date of the order for relief; and
            ``(3) the time periods specified in paragraphs (1) 
        and (2), and the time fixed in section 1129(e), within 
        which the plan shall be confirmed, may be extended only 
        if--
                    ``(A) the debtor, after providing notice to 
                parties in interest (including the United 
                States trustee), demonstrates by a 
                preponderance of the evidence that it is more 
                likely than not that the court will confirm a 
                plan within a reasonable period of time;
                    ``(B) a new deadline is imposed at the time 
                the extension is granted; and
                    ``(C) the order extending time is signed 
                before the existing deadline has expired.''.

SEC. 438. PLAN CONFIRMATION DEADLINE.

    Section 1129 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(e) In a small business case, the plan shall be confirmed 
not later than 175 days after the date of the order for relief, 
unless such 175-day period is extended as provided in section 
1121(e)(3).''.

SEC. 439. DUTIES OF THE UNITED STATES TRUSTEE.

    Section 586(a) of title 28, United States Code, is 
amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (G), by striking 
                ``and'' at the end;
                    (B) by redesignating subparagraph (H) as 
                subparagraph (I); and
                    (C) by inserting after subparagraph (G) the 
                following:
                    ``(H) in small business cases (as defined 
                in section 101 of title 11), performing the 
                additional duties specified in title 11 
                pertaining to such cases; and'';
            (2) in paragraph (5), by striking ``and'' at the 
        end;
            (3) in paragraph (6), by striking the period at the 
        end and inserting a semicolon; and
            (4) by adding at the end the following:
            ``(7) in each of such small business cases--
                    ``(A) conduct an initial debtor interview 
                as soon as practicable after the entry of order 
                for relief but before the first meeting 
                scheduled under section 341(a) of title 11, at 
                which time the United States trustee shall--
                            ``(i) begin to investigate the 
                        debtor's viability;
                            ``(ii) inquire about the debtor's 
                        business plan;
                            ``(iii) explain the debtor's 
                        obligations to file monthly operating 
                        reports and other required reports;
                            ``(iv) attempt to develop an agreed 
                        scheduling order; and
                            ``(v) inform the debtor of other 
                        obligations;
                    ``(B) if determined to be appropriate and 
                advisable, visit the appropriate business 
                premises of the debtor and ascertain the state 
                of the debtor's books and records and verify 
                that the debtor has filed its tax returns; and
                    ``(C) review and monitor diligently the 
                debtor's activities, to identify as promptly as 
                possible whether the debtor will be unable to 
                confirm a plan; and
            ``(8) in any case in which the United States 
        trustee finds material grounds for any relief under 
        section 1112 of title 11, the United States trustee 
        shall apply promptly after making that finding to the 
        court for relief.''.

SEC. 440. SCHEDULING CONFERENCES.

    Section 105(d) of title 11, United States Code, is 
amended--
            (1) in the matter preceding paragraph (1), by 
        striking ``, may''; and
            (2) by striking paragraph (1) and inserting the 
        following:
            ``(1) shall hold such status conferences as are 
        necessary to further the expeditious and economical 
        resolution of the case; and''.

SEC. 441. SERIAL FILER PROVISIONS.

    Section 362 of title 11, United States Code, as amended by 
this Act is amended--
            (1) in subsection (k), as redesignated by this 
        Act--
                    (A) by striking ``An'' and inserting ``(1) 
                Except as provided in paragraph (2), an''; and
                    (B) by adding at the end the following:
    ``(2) If such violation is based on an action taken by an 
entity in the good faith belief that subsection (h) applies to 
the debtor, the recovery under paragraph (1) of this subsection 
against such entity shall be limited to actual damages.''; and
            (2) by adding at the end the following:
    ``(l)(1) Except as provided in paragraph (2) of this 
subsection, the provisions of subsection (a) do not apply in a 
case in which the debtor--
            ``(A) is a debtor in a small business case pending 
        at the time the petition is filed;
            ``(B) was a debtor in a small business case that 
        was dismissed for any reason by an order that became 
        final in the 2-year period ending on the date of the 
        order for relief entered with respect to the petition;
            ``(C) was a debtor in a small business case in 
        which a plan was confirmed in the 2-year period ending 
        on the date of the order for relief entered with 
        respect to the petition; or
            ``(D) is an entity that has succeeded to 
        substantially all of the assets or business of a small 
        business debtor described in subparagraph (A), (B), or 
        (C).
    ``(2) This subsection does not apply--
            ``(A) to an involuntary case involving no collusion 
        by the debtor with creditors; or
            ``(B) to the filing of a petition if--
                    ``(i) the debtor proves by a preponderance 
                of the evidence that the filing of that 
                petition resulted from circumstances beyond the 
                control of the debtor not foreseeable at the 
                time the case then pending was filed; and
                    ``(ii) it is more likely than not that the 
                court will confirm a feasible plan, but not a 
                liquidating plan, within a reasonable period of 
                time.''.

SEC. 442. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND APPOINTMENT 
                    OF TRUSTEE.

    (a) Expanded Grounds for Dismissal or Conversion.--Section 
1112 of title 11, United States Code, is amended by striking 
subsection (b) and inserting the following:
    ``(b)(1) Except as provided in paragraph (2) of this 
subsection, subsection (c) of this section, and section 
1104(a)(3), on request of a party in interest, and after notice 
and a hearing, the court shall convert a case under this 
chapter to a case under chapter 7 or dismiss a case under this 
chapter, whichever is in the best interest of creditors and the 
estate, if the movant establishes cause.
    ``(2) The relief provided in paragraph (1) shall not be 
granted if the debtor or another party in interest objects and 
establishes by a preponderance of the evidence that--
            ``(A) a plan with a reasonable possibility of being 
        confirmed will be filed within a reasonable period of 
        time; and
            ``(B) the grounds include an act or omission of the 
        debtor--
                    ``(i) for which there exists a reasonable 
                justification for the act or omission; and
                    ``(ii) that will be cured within a 
                reasonable period of time fixed by the court.
    ``(3) The court shall commence the hearing on any motion 
under this subsection not later than 30 days after filing of 
the motion, and shall decide the motion not later than 15 days 
after commencement of the hearing, unless the movant expressly 
consents to a continuance for a specific period of time or 
compelling circumstances prevent the court from meeting the 
time limits established by this paragraph.
    ``(4) For purposes of this subsection, the term `cause' 
includes--
            ``(A) substantial or continuing loss to or 
        diminution of the estate;
            ``(B) gross mismanagement of the estate;
            ``(C) failure to maintain appropriate insurance 
        that poses a risk to the estate or to the public;
            ``(D) unauthorized use of cash collateral harmful 
        to 1 or more creditors;
            ``(E) failure to comply with an order of the court;
            ``(F) repeated failure timely to satisfy any filing 
        or reporting requirement established by this title or 
        by any rule applicable to a case under this chapter;
            ``(G) failure to attend the meeting of creditors 
        convened under section 341(a) or an examination ordered 
        under rule 2004 of the Federal Rules of Bankruptcy 
        Procedure;
            ``(H) failure timely to provide information or 
        attend meetings reasonably requested by the United 
        States trustee or the bankruptcy administrator;
            ``(I) failure timely to pay taxes due after the 
        date of the order for relief or to file tax returns due 
        after the order for relief;
            ``(J) failure to file a disclosure statement, or to 
        file or confirm a plan, within the time fixed by this 
        title or by order of the court;
            ``(K) failure to pay any fees or charges required 
        under chapter 123 of title 28;
            ``(L) revocation of an order of confirmation under 
        section 1144;
            ``(M) inability to effectuate substantial 
        consummation of a confirmed plan;
            ``(N) material default by the debtor with respect 
        to a confirmed plan;
            ``(O) termination of a confirmed plan by reason of 
        the occurrence of a condition specified in the plan; 
        and
            ``(P) failure of the debtor to pay any domestic 
        support obligation that first becomes payable after the 
        date on which the petition is filed.
    ``(5) The court shall commence the hearing on any motion 
under this subsection not later than 30 days after filing of 
the motion, and shall decide the motion not later than 15 days 
after commencement of the hearing, unless the movant expressly 
consents to a continuance for a specific period of time or 
compelling circumstances prevent the court from meeting the 
time limits established by this paragraph.''.
    (b) Additional Grounds for Appointment of Trustee.--Section 
1104(a) of title 11, United States Code, is amended--
            (1) in paragraph (1), by striking ``or'' at the 
        end;
            (2) in paragraph (2), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(3) if grounds exist to convert or dismiss the 
        case under section 1112, but the court determines that 
        the appointment of a trustee or an examiner is in the 
        best interests of creditors and the estate.''.

SEC. 443. STUDY OF OPERATION OF TITLE 11, UNITED STATES CODE, WITH 
                    RESPECT TO SMALL BUSINESSES.

    Not later than 2 years after the date of 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, 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. 444. PAYMENT OF INTEREST.

    Section 362(d)(3) of title 11, United States Code, is 
amended--
            (1) by inserting ``or 30 days after the court 
        determines that the debtor is subject to this 
        paragraph, whichever is later'' after ``90-day 
        period)''; and
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) the debtor has commenced monthly 
                payments that--
                            ``(i) may, in the debtor's sole 
                        discretion, notwithstanding section 
                        363(c)(2), be made from rents or other 
                        income generated before or after the 
                        commencement of the case by or from the 
                        property to each creditor whose claim 
                        is secured by such real estate (other 
                        than a claim secured by a judgment lien 
                        or by an unmatured statutory lien); and
                            ``(ii) are in an amount equal to 
                        interest at the then applicable 
                        nondefault contract rate of interest on 
                        the value of the creditor's interest in 
                        the real estate; or''.

SEC. 445. PRIORITY FOR ADMINISTRATIVE EXPENSES.

    Section 503(b) of title 11, 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 a semicolon; and
            (3) by adding at the end the following:
            ``(7) with respect to a nonresidential real 
        property lease previously assumed under section 365, 
        and subsequently rejected, a sum equal to all monetary 
        obligations due, excluding those arising from or 
        relating to a failure to operate or penalty provisions, 
        for the period of 2 years following the later of the 
        rejection date or the date of actual turnover of the 
        premises, without reduction or setoff for any reason 
        whatsoever except for sums actually received or to be 
        received from a nondebtor, and the claim for remaining 
        sums due for the balance of the term of the lease shall 
        be a claim under section 502(b)(6);''.

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETITION.

    (a) Technical Amendment Relating to Municipalities.--
Section 921(d) of title 11, United States Code, is amended by 
inserting ``notwithstanding section 301(b)'' before the period 
at the end.
    (b) Conforming Amendment.--Section 301 of title 11, United 
States Code, is amended--
            (1) by inserting ``(a)'' before ``A voluntary''; 
        and
            (2) by striking the last sentence and inserting the 
        following:
    ``(b) The commencement of a voluntary case under a chapter 
of this title constitutes an order for relief under such 
chapter.''.

SEC. 502. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

    Section 901(a) 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,''.

                       TITLE VI--BANKRUPTCY DATA

SEC. 601. IMPROVED BANKRUPTCY STATISTICS.

    (a) In General.--Chapter 6 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 collect statistics 
regarding individual debtors with primarily consumer debts 
seeking relief under chapters 7, 11, and 13 of title 11. Those 
statistics shall be on a standardized form prescribed by the 
Director of the Administrative Office of the United States 
Courts (referred to in this section as the `Director').
    ``(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, 2002, 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 monthly income, average 
                income, and average expenses of those debtors 
                as reported on the schedules and statements 
                that each such debtor files under sections 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 of 
                        cases in which the debtor was not 
                        represented by an attorney; and
                            ``(III) of those cases in which a 
                        reaffirmation was filed, 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, the number of cases 
                        dismissed for failure to make payments 
                        under the plan, the number of cases 
                        refiled after dismissal, and the number 
                        of cases in which the plan was 
                        completed, separately itemized with 
                        respect to the number of modifications 
                        made before completion of the plan, if 
                        any; and
                            ``(iii) the number of cases in 
                        which the debtor filed another case 
                        during the 6-year period preceding the 
                        filing;
                    ``(G) the number of cases in which 
                creditors were fined for misconduct and any 
                amount of punitive damages awarded by the court 
                for creditor misconduct; and
                    ``(H) the number of cases in which 
                sanctions under rule 9011 of the Federal Rules 
                of Bankruptcy Procedure were imposed against 
                debtor's counsel or damages awarded under such 
                Rule.''.
    (b) Clerical Amendment.--The table of sections for 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. 602. UNIFORM RULES FOR THE COLLECTION OF BANKRUPTCY DATA.

    (a) Amendment.--Chapter 39 of title 28, United States Code, 
is amended by adding at the end the following:

``Sec. 589b. Bankruptcy data

    ``(a) Rules.--The Attorney General shall, within a 
reasonable time after the effective date of this section, issue 
rules requiring uniform forms for (and from time to time 
thereafter to appropriately modify and approve)--
            ``(1) final reports by trustees in cases under 
        chapters 7, 12, and 13 of title 11; and
            ``(2) periodic reports by debtors in possession or 
        trustees, as the case may be, in cases under chapter 11 
        of title 11.
    ``(b) Reports.--Each report referred to in subsection (a) 
shall be designed (and the requirements as to place and manner 
of filing shall be established) so as to facilitate compilation 
of data and maximum possible access of the public, both by 
physical inspection at one or more central filing locations, 
and by electronic access through the Internet or other 
appropriate media.
    ``(c) Required Information.--The information required to be 
filed in the reports referred to in subsection (b) shall be 
that which is in the best interests of debtors and creditors, 
and in the public interest in reasonable and adequate 
information to evaluate the efficiency and practicality of the 
Federal bankruptcy system. In issuing rules proposing the forms 
referred to in subsection (a), the Attorney General shall 
strike the best achievable practical balance between--
            ``(1) the reasonable needs of the public for 
        information about the operational results of the 
        Federal bankruptcy system;
            ``(2) economy, simplicity, and lack of undue burden 
        on persons with a duty to file reports; and
            ``(3) appropriate privacy concerns and safeguards.
    ``(d) Final Reports.--Final reports proposed for adoption 
by trustees under chapters 7, 12, and 13 of title 11 shall, in 
addition to such other matters as are required by law or as the 
Attorney General in the discretion of the Attorney General, 
shall propose, include with respect to a case under such 
title--
            ``(1) information about the length of time the case 
        was pending;
            ``(2) assets abandoned;
            ``(3) assets exempted;
            ``(4) receipts and disbursements of the estate;
            ``(5) expenses of administration, including for use 
        under section 707(b), actual costs of administering 
        cases under chapter 13 of title 11;
            ``(6) claims asserted;
            ``(7) claims allowed; and
            ``(8) distributions to claimants and claims 
        discharged without payment,
in each case by appropriate category and, in cases under 
chapters 12 and 13 of title 11, date of confirmation of the 
plan, each modification thereto, and defaults by the debtor in 
performance under the plan.
    ``(e) Periodic Reports.--Periodic reports proposed for 
adoption by trustees or debtors in possession under chapter 11 
of title 11 shall, in addition to such other matters as are 
required by law or as the Attorney General, in the discretion 
of the Attorney General, shall propose, include--
            ``(1) information about the standard industry 
        classification, published by the Department of 
        Commerce, for the businesses conducted by the debtor;
            ``(2) length of time the case has been pending;
            ``(3) number of full-time employees as of the date 
        of the order for relief and at the end of each 
        reporting period since the case was filed;
            ``(4) cash receipts, cash disbursements and 
        profitability of the debtor for the most recent period 
        and cumulatively since the date of the order for 
        relief;
            ``(5) compliance with title 11, whether or not tax 
        returns and tax payments since the date of the order 
        for relief have been timely filed and made;
            ``(6) all professional fees approved by the court 
        in the case for the most recent period and cumulatively 
        since the date of the order for relief (separately 
        reported, for the professional fees incurred by or on 
        behalf of the debtor, between those that would have 
        been incurred absent a bankruptcy case and those not); 
        and
            ``(7) plans of reorganization filed and confirmed 
        and, with respect thereto, by class, the recoveries of 
        the holders, expressed in aggregate dollar values and, 
        in the case of claims, as a percentage of total claims 
        of the class allowed.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 39 of title 28, United States Code, is 
amended by adding at the end the following:

``589b. Bankruptcy data.''.

SEC. 603. AUDIT PROCEDURES.

    (a) In General.--
            (1) Establishment of procedures.--The Attorney 
        General (in judicial districts served by United States 
        trustees) and the Judicial Conference of the United 
        States (in judicial districts served by bankruptcy 
        administrators) shall establish procedures to determine 
        the accuracy, veracity, 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. Such audits shall be in accordance with 
        generally accepted auditing standards and performed by 
        independent certified public accountants or independent 
        licensed public accountants, provided that the Attorney 
        General and the Judicial Conference, as appropriate, 
        may develop alternative auditing standards not later 
        than 2 years after the date of enactment of this Act.
            (2) Procedures.--Those procedures required by 
        paragraph (1) shall--
                    (A) establish a method of selecting 
                appropriate qualified persons to contract to 
                perform those audits;
                    (B) establish a method of randomly 
                selecting cases to be audited, except that not 
                less than 1 out of every 250 cases in each 
                Federal judicial district shall be selected for 
                audit;
                    (C) 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 if 
                those variances occur by reason of higher 
                income or higher expenses than the statistical 
                norm of the district in which the schedules 
                were filed; and
                    (D) 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.
    (b) Amendments.--Section 586 of title 28, United States 
Code, is amended--
            (1) in subsection (a), by striking paragraph (6) 
        and inserting the following:
            ``(6) make such reports as the Attorney General 
        directs, including the results of audits performed 
        under section 603(a) of the Bankruptcy Reform Act of 
        2000; and''; and
            (2) by adding at the end the following:
    ``(f)(1) The United States trustee for each district is 
authorized to contract with auditors to perform audits in cases 
designated by the United States trustee, in accordance with the 
procedures established under section 603(a) of the Bankruptcy 
Reform Act of 2000.
    ``(2)(A) The report of each audit referred to in paragraph 
(1) 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 in which 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; 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.''.
    (c) Amendments to Section 521 of Title 11, U.S.C.--Section 
521(a) of title 11, United States Code, as so designated by 
this Act, is amended in each of paragraphs (3) and (4) by 
inserting ``or an auditor appointed under section 586(f) of 
title 28'' after ``serving in the case''.
    (d) Amendments to Section 727 of Title 11, U.S.C.--Section 
727(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) the debtor has failed to explain 
        satisfactorily--
                    ``(A) a material misstatement in an audit 
                referred to in section 586(f) of title 28; 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 
                referred to in section 586(f) of title 28.''.
    (e) Effective Date.--The amendments made by this section 
shall take effect 18 months after the date of enactment of this 
Act.

SEC. 604. SENSE OF CONGRESS REGARDING AVAILABILITY OF BANKRUPTCY DATA.

    It is the sense of Congress that--
            (1) the national policy of the United States should 
        be that all data held by bankruptcy clerks in 
        electronic form, to the extent such data reflects only 
        public records (as defined in section 107 of title 11, 
        United States Code), should be released in a usable 
        electronic form in bulk to the public, subject to such 
        appropriate privacy concerns and safeguards as Congress 
        and the Judicial Conference of the United States may 
        determine; and
            (2) there should be established a bankruptcy data 
        system in which--
                    (A) a single set of data definitions and 
                forms are used to collect data nationwide; and
                    (B) data for any particular bankruptcy case 
                are aggregated in the same electronic record.

                  TITLE VII--BANKRUPTCY TAX PROVISIONS

SEC. 701. TREATMENT OF CERTAIN LIENS.

    (a) Treatment of Certain Liens.--Section 724 of title 11, 
United States Code, is amended--
            (1) in subsection (b), in the matter preceding 
        paragraph (1), by inserting ``(other than to the extent 
        that there is a properly perfected unavoidable tax lien 
        arising in connection with an ad valorem tax on real or 
        personal property of the estate)'' after ``under this 
        title'';
            (2) in subsection (b)(2), by inserting ``(except 
        that such expenses, other than claims for wages, 
        salaries, or commissions which arise after the filing 
        of a petition, shall be limited to expenses incurred 
        under chapter 7 of this title and shall not include 
        expenses incurred under chapter 11 of this title)'' 
        after ``507(a)(1)''; and
            (3) by adding at the end the following:
    ``(e) Before subordinating a tax lien on real or personal 
property of the estate, the trustee shall--
            ``(1) exhaust the unencumbered assets of the 
        estate; and
            ``(2) in a manner consistent with section 506(c), 
        recover from property securing an allowed secured claim 
        the reasonable, necessary costs and expenses of 
        preserving or disposing of that property.
    ``(f) Notwithstanding the exclusion of ad valorem tax liens 
under this section and subject to the requirements of 
subsection (e), the following may be paid from property of the 
estate which secures a tax lien, or the proceeds of such 
property:
            ``(1) Claims for wages, salaries, and commissions 
        that are entitled to priority under section 507(a)(4).
            ``(2) Claims for contributions to an employee 
        benefit plan entitled to priority under section 
        507(a)(5).''.
    (b) Determination of Tax Liability.--Section 505(a)(2) of 
title 11, United States Code, is amended--
            (1) in subparagraph (A), by striking ``or'' at the 
        end;
            (2) in subparagraph (B), by striking the period at 
        the end and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) the amount or legality of any amount arising 
        in connection with an ad valorem tax on real or 
        personal property of the estate, if the applicable 
        period for contesting or redetermining that amount 
        under any law (other than a bankruptcy law) has 
        expired.''.

SEC. 702. TREATMENT OF FUEL TAX CLAIMS.

    Section 501 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(e) A claim arising from the liability of a debtor for 
fuel use tax assessed consistent with the requirements of 
section 31705 of title 49 may be filed by the base jurisdiction 
designated pursuant to the International Fuel Tax Agreement 
and, if so filed, shall be allowed as a single claim.''.

SEC. 703. NOTICE OF REQUEST FOR A DETERMINATION OF TAXES.

    Section 505(b) of title 11, United States Code, is 
amended--
            (1) in the first sentence, by inserting ``at the 
        address and in the manner designated in paragraph (1)'' 
        after ``determination of such tax'';
            (2) by striking ``(1) upon payment'' and inserting 
        ``(A) upon payment'';
            (3) by striking ``(A) such governmental unit'' and 
        inserting ``(i) such governmental unit'';
            (4) by striking ``(B) such governmental unit'' and 
        inserting ``(ii) such governmental unit'';
            (5) by striking ``(2) upon payment'' and inserting 
        ``(B) upon payment'';
            (6) by striking ``(3) upon payment'' and inserting 
        ``(C) upon payment'';
            (7) by striking ``(b)'' and inserting ``(2)''; and
            (8) by inserting before paragraph (2), as so 
        designated, the following:
    ``(b)(1)(A) The clerk of each district shall maintain a 
listing under which a Federal, State, or local governmental 
unit responsible for the collection of taxes within the 
district may--
            ``(i) designate an address for service of requests 
        under this subsection; and
            ``(ii) describe where further information 
        concerning additional requirements for filing such 
        requests may be found.
    ``(B) If a governmental unit referred to in subparagraph 
(A) does not designate an address and provide that address to 
the clerk under that subparagraph, any request made under this 
subsection may be served at the address for the filing of a tax 
return or protest with the appropriate taxing authority of that 
governmental unit.''.

SEC. 704. RATE OF INTEREST ON TAX CLAIMS.

    (a) In General.--Subchapter I of chapter 5 of title 11, 
United States Code, is amended by adding at the end the 
following:

``Sec. 511. Rate of interest on tax claims

    ``(a) If any provision of this title requires the payment 
of interest on a tax claim or on an administrative expense tax, 
or the payment of interest to enable a creditor to receive the 
present value of the allowed amount of a tax claim, the rate of 
interest shall be the rate determined under applicable 
nonbankruptcy law.
    ``(b) In the case of taxes paid under a confirmed plan 
under this title, the rate of interest shall be determined as 
of the calendar month in which the plan is confirmed.''.
    (b) Clerical Amendment.--The table of sections for chapter 
5 of title 11, United States Code, is amended by inserting 
after the item relating to section 510 the following:

``511. Rate of interest on tax claims.''.

SEC. 705. PRIORITY OF TAX CLAIMS.

    Section 507(a)(8) of title 11, United States Code, is 
amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``for a taxable year ending on or 
                before the date of filing of the petition'' 
                after ``gross receipts'';
                    (B) in clause (i), by striking ``for a 
                taxable year ending on or before the date of 
                filing of the petition''; and
                    (C) by striking clause (ii) and inserting 
                the following:
                            ``(ii) assessed within 240 days 
                        before the date of the filing of the 
                        petition, exclusive of--
                                    ``(I) any time during which 
                                an offer in compromise with 
                                respect to that tax was pending 
                                or in effect during that 240-
                                day period, plus 30 days; and
                                    ``(II) any time during 
                                which a stay of proceedings 
                                against collections was in 
                                effect in a prior case under 
                                this title during that 240-day 
                                period; plus 90 days.''; and
            (2) by adding at the end the following:
        ``An otherwise applicable time period specified in this 
        paragraph shall be suspended for (i) any period during 
        which a governmental unit is prohibited under 
        applicable nonbankruptcy law from collecting a tax as a 
        result of a request by the debtor for a hearing and an 
        appeal of any collection action taken or proposed 
        against the debtor, plus 90 days; plus (ii) any time 
        during which the stay of proceedings was in effect in a 
        prior case under this title or during which collection 
        was precluded by the existence of 1 or more confirmed 
        plans under this title, plus 90 days.''.

SEC. 706. PRIORITY PROPERTY TAXES INCURRED.

    Section 507(a)(8)(B) of title 11, United States Code, is 
amended by striking ``assessed'' and inserting ``incurred''.

SEC. 707. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 13.

    Section 1328(a)(2) of title 11, United States Code, as 
amended by section 314 of this Act, is amended by striking 
``paragraph'' and inserting ``section 507(a)(8)(C) or in 
paragraph (1)(B), (1)(C),''.

SEC. 708. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 11.

    Section 1141(d) of title 11, United States Code, as amended 
by this Act, is amended by adding at the end the following:
    ``(6) Notwithstanding paragraph (1), the confirmation of a 
plan does not discharge a debtor that is a corporation from any 
debt described in section 523(a)(2) or for a tax or customs 
duty with respect to which the debtor--
            ``(A) made a fraudulent return; or
            ``(B) willfully attempted in any manner to evade or 
        defeat that tax or duty.''.

SEC. 709. STAY OF TAX PROCEEDINGS LIMITED TO PREPETITION TAXES.

    Section 362(a)(8) of title 11, United States Code, is 
amended by striking ``the debtor'' and inserting ``a corporate 
debtor's tax liability for a taxable period the bankruptcy 
court may determine or concerning an individual debtor's tax 
liability for a taxable period ending before the order for 
relief under this title''.

SEC. 710. PERIODIC PAYMENT OF TAXES IN CHAPTER 11 CASES.

    Section 1129(a)(9) of title 11, United States Code, is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the 
        end;
            (2) in subparagraph (C), by striking ``deferred 
        cash payments,'' and all that follows through the end 
        of the subparagraph, and inserting ``regular 
        installment payments in cash--
                            ``(i) of a total value, as of the 
                        effective date of the plan, equal to 
                        the allowed amount of such claim;
                            ``(ii) over a period ending not 
                        later than 5 years after the date of 
                        the entry of the order for relief under 
                        section 301, 302, or 303; and
                            ``(iii) in a manner not less 
                        favorable than the most favored 
                        nonpriority unsecured claim provided 
                        for in the plan (other than cash 
                        payments made to a class of creditors 
                        under section 1122(b)); and''; and
            (3) by adding at the end the following:
                    ``(D) with respect to a secured claim which 
                would otherwise meet the description of an 
                unsecured claim of a governmental unit under 
                section 507(a)(8), but for the secured status 
                of that claim, the holder of that claim will 
                receive on account of that claim, cash 
                payments, in the same manner and over the same 
                period, as prescribed in subparagraph (C).''.

SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

    Section 545(2) of title 11, United States Code, is amended 
by inserting before the semicolon at the end the following: ``, 
except in any case in which a purchaser is a purchaser 
described in section 6323 of the Internal Revenue Code of 1986, 
or in any other similar provision of State or local law''.

SEC. 712. PAYMENT OF TAXES IN THE CONDUCT OF BUSINESS.

    (a) Payment of Taxes Required.--Section 960 of title 28, 
United States Code, is amended--
            (1) by inserting ``(a)'' before ``Any''; and
            (2) by adding at the end the following:
    ``(b) A tax under subsection (a) shall be paid on or before 
the due date of the tax under applicable nonbankruptcy law, 
unless--
            ``(1) the tax is a property tax secured by a lien 
        against property that is abandoned within a reasonable 
        period of time after the lien attaches by the trustee 
        of a bankruptcy estate under section 554 of title 11; 
        or
            ``(2) payment of the tax is excused under a 
        specific provision of title 11.
    ``(c) In a case pending under chapter 7 of title 11, 
payment of a tax may be deferred until final distribution is 
made under section 726 of title 11, if--
            ``(1) the tax was not incurred by a trustee duly 
        appointed under chapter 7 of title 11; or
            ``(2) before the due date of the tax, an order of 
        the court makes a finding of probable insufficiency of 
        funds of the estate to pay in full the administrative 
        expenses allowed under section 503(b) of title 11 that 
        have the same priority in distribution under section 
        726(b) of title 11 as the priority of that tax.''.
    (b) Payment of Ad Valorem Taxes Required.--Section 
503(b)(1)(B)(i) of title 11, United States Code, is amended by 
inserting ``whether secured or unsecured, including property 
taxes for which liability is in rem, in personam, or both,'' 
before ``except''.
    (c) Request for Payment of Administrative Expense Taxes 
Eliminated.--Section 503(b)(1) of title 11, United States Code, 
is amended--
            (1) in subparagraph (B), by striking ``and'' at the 
        end;
            (2) in subparagraph (C), by adding ``and'' at the 
        end; and
            (3) by adding at the end the following:
            ``(D) notwithstanding the requirements of 
        subsection (a), a governmental unit shall not be 
        required to file a request for the payment of an 
        expense described in subparagraph (B) or (C), as a 
        condition of its being an allowed administrative 
        expense;''.
    (d) Payment of Taxes and Fees as Secured Claims.--Section 
506 of title 11, United States Code, is amended--
            (1) in subsection (b), by inserting ``or State 
        statute'' after ``agreement''; and
            (2) in subsection (c), by inserting ``, including 
        the payment of all ad valorem property taxes with 
        respect to the property'' before the period at the end.

SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS.

    Section 726(a)(1) of title 11, United States Code, is 
amended by striking ``before the date on which the trustee 
commences distribution under this section;'' and inserting the 
following: ``on or before the earlier of--
                    ``(A) the date that is 10 days after the 
                mailing to creditors of the summary of the 
                trustee's final report; or
                    ``(B) the date on which the trustee 
                commences final distribution under this 
                section;''.

SEC. 714. INCOME TAX RETURNS PREPARED BY TAX AUTHORITIES.

    Section 523(a) of title 11, United States Code, as amended 
by this Act, is amended--
            (1) in paragraph (1)(B)--
                    (A) in the matter preceding clause (i), by 
                inserting ``or equivalent report or notice,'' 
                after ``a return,'';
                    (B) in clause (i), by inserting ``or 
                given'' after ``filed''; and
                    (C) in clause (ii)--
                            (i) by inserting ``or given'' after 
                        ``filed''; and
                            (ii) by inserting ``, report, or 
                        notice'' after ``return''; and
            (2) by adding at the end the following:
``For purposes of this subsection, the term `return' means a 
return that satisfies the requirements of applicable 
nonbankruptcy law (including applicable filing requirements). 
Such term includes a return prepared pursuant to section 
6020(a) of the Internal Revenue Code of 1986, or similar State 
or local law, or a written stipulation to a judgment or a final 
order entered by a nonbankruptcy tribunal, but does not include 
a return made pursuant to section 6020(b) of the Internal 
Revenue Code of 1986, or a similar State or local law.''.

SEC. 715. DISCHARGE OF THE ESTATE'S LIABILITY FOR UNPAID TAXES.

    Section 505(b)(2) of title 11, United States Code, as 
amended by this Act, is amended by inserting ``the estate,'' 
after ``misrepresentation,''.

SEC. 716. REQUIREMENT TO FILE TAX RETURNS TO CONFIRM CHAPTER 13 PLANS.

    (a) Filing of Prepetition Tax Returns Required for Plan 
Confirmation.--Section 1325(a) of title 11, United States Code, 
as amended by this Act, is amended by adding at the end the 
following:
            ``(9) the debtor has filed all applicable Federal, 
        State, and local tax returns as required by section 
        1308.''.
    (b) Additional Time Permitted for Filing Tax Returns.--
            (1) In general.--Subchapter I of chapter 13 of 
        title 11, United States Code, is amended by adding at 
        the end the following:

``Sec. 1308. Filing of prepetition tax returns

    ``(a) Not later than the day before the date on which the 
meeting of the creditors is first scheduled to be held under 
section 341(a), if the debtor was required to file a tax return 
under applicable nonbankruptcy law, the debtor shall file with 
appropriate tax authorities all tax returns for all taxable 
periods ending during the 4-year period ending on the date of 
the filing of the petition.
    ``(b)(1) Subject to paragraph (2), if the tax returns 
required by subsection (a) have not been filed by the date on 
which the meeting of creditors is first scheduled to be held 
under section 341(a), the trustee may hold open that meeting 
for a reasonable period of time to allow the debtor an 
additional period of time to file any unfiled returns, but such 
additional period of time shall not extend beyond--
            ``(A) for any return that is past due as of the 
        date of the filing of the petition, the date that is 
        120 days after the date of that meeting; or
            ``(B) for any return that is not past due as of the 
        date of the filing of the petition, the later of--
                    ``(i) the date that is 120 days after the 
                date of that meeting; or
                    ``(ii) the date on which the return is due 
                under the last automatic extension of time for 
                filing that return to which the debtor is 
                entitled, and for which request is timely made, 
                in accordance with applicable nonbankruptcy 
                law.
    ``(2) Upon notice and hearing, and order entered before the 
tolling of any applicable filing period determined under this 
subsection, if the debtor demonstrates by a preponderance of 
the evidence that the failure to file a return as required 
under this subsection is attributable to circumstances beyond 
the control of the debtor, the court may extend the filing 
period established by the trustee under this subsection for--
            ``(A) a period of not more than 30 days for returns 
        described in paragraph (1); and
            ``(B) a period not to extend after the applicable 
        extended due date for a return described in paragraph 
        (2).
    ``(c) For purposes of this section, the term `return' 
includes a return prepared pursuant to subsection (a) or (b) of 
section 6020 of the Internal Revenue Code of 1986, or a similar 
State or local law, or a written stipulation to a judgment or a 
final order entered by a nonbankruptcy tribunal.''.
            (2) Conforming 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:

``1308. Filing of prepetition tax returns.''.
    (c) Dismissal or Conversion on Failure To Comply.--Section 
1307 of title 11, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as 
        subsections (f) and (g), respectively; and
            (2) by inserting after subsection (d) the 
        following:
    ``(e) Upon the failure of the debtor to file a tax return 
under section 1308, on request of a party in interest or the 
United States trustee and after notice and a hearing, the court 
shall dismiss a case or convert a case under this chapter to a 
case under chapter 7 of this title, whichever is in the best 
interest of the creditors and the estate.''.
    (d) Timely Filed Claims.--Section 502(b)(9) of title 11, 
United States Code, is amended by inserting before the period 
at the end the following ``, and except that in a case under 
chapter 13, a claim of a governmental unit for a tax with 
respect to a return filed under section 1308 shall be timely if 
the claim is filed on or before the date that is 60 days after 
the date on which such return was filed as required''.
    (e) Rules for Objections to Claims and to Confirmation.--It 
is the sense of Congress that the Advisory Committee on 
Bankruptcy Rules of the Judicial Conference of the United 
States should, as soon as practicable after the date of 
enactment of this Act, propose for adoption amended Federal 
Rules of Bankruptcy Procedure which provide that--
            (1) notwithstanding the provisions of Rule 3015(f), 
        in cases under chapter 13 of title 11, United States 
        Code, an objection to the confirmation of a plan filed 
        by a governmental unit on or before the date that is 60 
        days after the date on which the debtor files all tax 
        returns required under sections 1308 and 1325(a)(7) of 
        title 11, United States Code, shall be treated for all 
        purposes as if such objection had been timely filed 
        before such confirmation; and
            (2) in addition to the provisions of Rule 3007, in 
        a case under chapter 13 of title 11, United States 
        Code, no objection to a tax with respect to which a 
        return is required to be filed under section 1308 of 
        title 11, United States Code, shall be filed until such 
        return has been filed as required.

SEC. 717. STANDARDS FOR TAX DISCLOSURE.

    Section 1125(a)(1) of title 11, United States Code, is 
amended--
            (1) by inserting ``including a discussion of the 
        potential material Federal tax consequences of the plan 
        to the debtor, any successor to the debtor, and a 
        hypothetical investor typical of the holders of claims 
        or interests in the case,'' after ``records''; and
            (2) by striking ``a hypothetical reasonable 
        investor typical of holders of claims or interests'' 
        and inserting ``such a hypothetical investor''.

SEC. 718. SETOFF OF TAX REFUNDS.

    Section 362(b) of title 11, United States Code, is amended 
by inserting after paragraph (26), as added by this Act, the 
following:
            ``(27) under subsection (a), of the setoff under 
        applicable nonbankruptcy law of an income tax refund, 
        by a governmental unit, with respect to a taxable 
        period that ended before the order for relief against 
        an income tax liability for a taxable period that also 
        ended before the order for relief, except that in any 
        case in which the setoff of an income tax refund is not 
        permitted under applicable nonbankruptcy law because of 
        a pending action to determine the amount or legality of 
        a tax liability, the governmental unit may hold the 
        refund pending the resolution of the action, unless the 
        court, upon motion of the trustee and after notice and 
        hearing, grants the taxing authority adequate 
        protection (within the meaning of section 361) for the 
        secured claim of that authority in the setoff under 
        section 506(a);''.

SEC. 719. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF STATE AND 
                    LOCAL TAXES.

    (a) In General.--Section 346 of title 11, United States 
Code, is amended to read as follows:

``Sec. 346. Special provisions related to the treatment of state and 
                    local taxes

    ``(a) Whenever the Internal Revenue Code of 1986 provides 
that a separate taxable estate or entity is created in a case 
concerning a debtor under this title, and the income, gain, 
loss, deductions, and credits of such estate shall be taxed to 
or claimed by the estate, a separate taxable estate is also 
created for purposes of any State and local law imposing a tax 
on or measured by income and such income, gain, loss, 
deductions, and credits shall be taxed to or claimed by the 
estate and may not be taxed to or claimed by the debtor. The 
preceding sentence shall not apply if the case is dismissed. 
The trustee shall make tax returns of income required under any 
such State or local law.
    ``(b) Whenever the Internal Revenue Code of 1986 provides 
that no separate taxable estate shall be created in a case 
concerning a debtor under this title, and the income, gain, 
loss, deductions, and credits of an estate shall be taxed to or 
claimed by the debtor, such income, gain, loss, deductions, and 
credits shall be taxed to or claimed by the debtor under a 
State or local law imposing a tax on or measured by income and 
may not be taxed to or claimed by the estate. The trustee shall 
make such tax returns of income of corporations and of 
partnerships as are required under any State or local law, but 
with respect to partnerships, shall make said returns only to 
the extent such returns are also required to be made under such 
Code. The estate shall be liable for any tax imposed on such 
corporation or partnership, but not for any tax imposed on 
partners or members.
    ``(c) With respect to a partnership or any entity treated 
as a partnership under a State or local law imposing a tax on 
or measured by income that is a debtor in a case under this 
title, any gain or loss resulting from a distribution of 
property from such partnership, or any distributive share of 
any income, gain, loss, deduction, or credit of a partner or 
member that is distributed, or considered distributed, from 
such partnership, after the commencement of the case, is gain, 
loss, income, deduction, or credit, as the case may be, of the 
partner or member, and if such partner or member is a debtor in 
a case under this title, shall be subject to tax in accordance 
with subsection (a) or (b).
    ``(d) For purposes of any State or local law imposing a tax 
on or measured by income, the taxable period of a debtor in a 
case under this title shall terminate only if and to the extent 
that the taxable period of such debtor terminates under the 
Internal Revenue Code of 1986.
    ``(e) The estate in any case described in subsection (a) 
shall use the same accounting method as the debtor used 
immediately before the commencement of the case, if such method 
of accounting complies with applicable nonbankruptcy tax law.
    ``(f) For purposes of any State or local law imposing a tax 
on or measured by income, a transfer of property from the 
debtor to the estate or from the estate to the debtor shall not 
be treated as a disposition for purposes of any provision 
assigning tax consequences to a disposition, except to the 
extent that such transfer is treated as a disposition under the 
Internal Revenue Code of 1986.
    ``(g) Whenever a tax is imposed pursuant to a State or 
local law imposing a tax on or measured by income pursuant to 
subsection (a) or (b), such tax shall be imposed at rates 
generally applicable to the same types of entities under such 
State or local law.
    ``(h) The trustee shall withhold from any payment of claims 
for wages, salaries, commissions, dividends, interest, or other 
payments, or collect, any amount required to be withheld or 
collected under applicable State or local tax law, and shall 
pay such withheld or collected amount to the appropriate 
governmental unit at the time and in the manner required by 
such tax law, and with the same priority as the claim from 
which such amount was withheld or collected was paid.
    ``(i)(1) To the extent that any State or local law imposing 
a tax on or measured by income provides for the carryover of 
any tax attribute from one taxable period to a subsequent 
taxable period, the estate shall succeed to such tax attribute 
in any case in which such estate is subject to tax under 
subsection (a).
    ``(2) After such a case is closed or dismissed, the debtor 
shall succeed to any tax attribute to which the estate 
succeeded under paragraph (1) to the extent consistent with the 
Internal Revenue Code of 1986.
    ``(3) The estate may carry back any loss or tax attribute 
to a taxable period of the debtor that ended before the order 
for relief under this title to the extent that--
            ``(A) applicable State or local tax law provides 
        for a carryback in the case of the debtor; and
            ``(B) the same or a similar tax attribute may be 
        carried back by the estate to such a taxable period of 
        the debtor under the Internal Revenue Code of 1986.
    ``(j)(1) For purposes of any State or local law imposing a 
tax on or measured by income, income is not realized by the 
estate, the debtor, or a successor to the debtor by reason of 
discharge of indebtedness in a case under this title, except to 
the extent, if any, that such income is subject to tax under 
the Internal Revenue Code of 1986.
    ``(2) Whenever the Internal Revenue Code of 1986 provides 
that the amount excluded from gross income in respect of the 
discharge of indebtedness in a case under this title shall be 
applied to reduce the tax attributes of the debtor or the 
estate, a similar reduction shall be made under any State or 
local law imposing a tax on or measured by income to the extent 
such State or local law recognizes such attributes. Such State 
or local law may also provide for the reduction of other 
attributes to the extent that the full amount of income from 
the discharge of indebtedness has not been applied.
    ``(k)(1) Except as provided in this section and section 
505, the time and manner of filing tax returns and the items of 
income, gain, loss, deduction, and credit of any taxpayer shall 
be determined under applicable nonbankruptcy law.
    ``(2) For Federal tax purposes, the provisions of this 
section are subject to the Internal Revenue Code of 1986 and 
other applicable Federal nonbankruptcy law.''.
    (b) Conforming Amendments.--
            (1) Section 728 of title 11, United States Code, is 
        repealed.
            (2) Section 1146 of title 11, United States Code, 
        is amended--
                    (A) by striking subsections (a) and (b); 
                and
                    (B) by redesignating subsections (c) and 
                (d) as subsections (a) and (b), respectively.
            (3) Section 1231 of title 11, United States Code, 
        is amended--
                    (A) by striking subsections (a) and (b); 
                and
                    (B) by redesignating subsections (c) and 
                (d) as subsections (a) and (b), respectively.

SEC. 720. DISMISSAL FOR FAILURE TO TIMELY FILE TAX RETURNS.

    Section 521 of title 11, United States Code, as amended by 
this Act, is amended by adding at the end the following:
    ``(k)(1) Notwithstanding any other provision of this title, 
if the debtor fails to file a tax return that becomes due after 
the commencement of the case or to properly obtain an extension 
of the due date for filing such return, the taxing authority 
may request that the court enter an order converting or 
dismissing the case.
    ``(2) If the debtor does not file the required return or 
obtain the extension referred to in paragraph (1) within 90 
days after a request is filed by the taxing authority under 
that paragraph, the court shall convert or dismiss the case, 
whichever is in the best interests of creditors and the 
estate.''.

           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

SEC. 801. AMENDMENT TO ADD CHAPTER 15 TO TITLE 11, UNITED STATES CODE.

    (a) In General.--Title 11, United States Code, is amended 
by inserting after chapter 13 the following:

          ``CHAPTER 15--ANCILLARY AND OTHER CROSS-BORDER CASES

  ``Sec.
``1501. Purpose and scope of application.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``1502. Definitions.
``1503. International obligations of the United States.
``1504. Commencement of ancillary case.
``1505. Authorization to act in a foreign country.
``1506. Public policy exception.
``1507. Additional assistance.
``1508. Interpretation.

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

``1509. Right of direct access.
``1510. Limited jurisdiction.
``1511. Commencement of case under section 301 or 303.
``1512. Participation of a foreign representative in a case under this 
          title.
``1513. Access of foreign creditors to a case under this title.
``1514. Notification to foreign creditors concerning a case under this 
          title.

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

``1515. Application for recognition.
``1516. Presumptions concerning recognition.
``1517. Order granting recognition.
``1518. Subsequent information.
``1519. Relief that may be granted upon filing petition for recognition.
``1520. Effects of recognition of a foreign main proceeding.
``1521. Relief that may be granted upon recognition.
``1522. Protection of creditors and other interested persons.
``1523. Actions to avoid acts detrimental to creditors.
``1524. Intervention by a foreign representative.

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

``1525. Cooperation and direct communication between the court and 
          foreign courts or foreign representatives.
``1526. Cooperation and direct communication between the trustee and 
          foreign courts or foreign representatives.
``1527. Forms of cooperation.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``1528. Commencement of a case under this title after recognition of a 
          foreign main proceeding.
``1529. Coordination of a case under this title and a foreign 
          proceeding.
``1530. Coordination of more than 1 foreign proceeding.
``1531. Presumption of insolvency based on recognition of a foreign main 
          proceeding.
``1532. Rule of payment in concurrent proceedings.

``Sec. 1501. 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, other than 
        a foreign insurance company, identified by exclusion in 
        section 109(b);
            ``(2) an individual, or to an individual and such 
        individual's spouse, who have debts within the limits 
        specified in section 109(e) and who are citizens of the 
        United States or aliens lawfully admitted for permanent 
        residence in the United States; or
            ``(3) an entity subject to a proceeding under the 
        Securities Investor Protection Act of 1970, a 
        stockbroker subject to subchapter III of chapter 7 of 
        this title, or a commodity broker subject to subchapter 
        IV of chapter 7 of this title.
    ``(d) The court may not grant relief under this chapter 
with respect to any deposit, escrow, trust fund, or other 
security required or permitted under any applicable State 
insurance law or regulation for the benefit of claim holders in 
the United States.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 1502. 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 chapter 9 of this title;
            ``(7) `recognition' means the entry of an order 
        granting recognition of a foreign main proceeding or 
        foreign nonmain proceeding under this chapter; and
            ``(8) `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 under applicable nonbankruptcy law to 
        be located within that territory, including any 
        property subject to attachment or garnishment that may 
        properly be seized or garnished by an action in a 
        Federal or State court in the United States.

``Sec. 1503. 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 one or more 
other countries, the requirements of the treaty or agreement 
prevail.

``Sec. 1504. 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 
1515.

``Sec. 1505. Authorization to act in a foreign country

    ``A trustee or another entity (including an examiner) 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. 1506. 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. 1507. Additional assistance

    ``(a) Subject to the specific limitations stated elsewhere 
in this chapter the court, if recognition is granted, may 
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. 1508. 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. 1509. Right of direct access

    ``(a) A foreign representative may commence a case under 
section 1504 by filing directly with the court a petition for 
recognition of a foreign proceeding under section 1515.
    ``(b) If the court grants recognition under section 1515, 
and subject to any limitations that the court may impose 
consistent with the policy of this chapter--
            ``(1) the foreign representative has the capacity 
        to sue and be sued in a court in the United States;
            ``(2) the foreign representative may apply directly 
        to a court in the United States for appropriate relief 
        in that court; and
            ``(3) a court in the United States shall grant 
        comity or cooperation to the foreign representative.
    ``(c) A request for comity or cooperation by a foreign 
representative in a court in the United States other than the 
court which granted recognition shall be accompanied by a 
certified copy of an order granting recognition under section 
1517.
    ``(d) If the court denies recognition under this chapter, 
the court may issue any appropriate order necessary to prevent 
the foreign representative from obtaining comity or cooperation 
from courts in the United States.
    ``(e) Whether or not the court grants recognition, and 
subject to sections 306 and 1510, a foreign representative is 
subject to applicable nonbankruptcy law.
    ``(f) Notwithstanding any other provision of this section, 
the failure of a foreign representative to commence a case or 
to obtain recognition under this chapter does not affect any 
right the foreign representative may have to sue in a court in 
the United States to collect or recover a claim which is the 
property of the debtor.

``Sec. 1510. Limited jurisdiction

    ``The sole fact that a foreign representative files a 
petition under section 1515 does not subject the foreign 
representative to the jurisdiction of any court in the United 
States for any other purpose.

``Sec. 1511. Commencement of case under section 301 or 303

    ``(a) Upon 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) 
must be accompanied by a certified copy of an order granting 
recognition. 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) prior to such 
commencement.

``Sec. 1512. Participation of a foreign representative in a case under 
                    this title

    ``Upon recognition of a foreign proceeding, the foreign 
representative in the recognized proceeding is entitled to 
participate as a party in interest in a case regarding the 
debtor under this title.

``Sec. 1513. 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) does not change or codify present 
law as to the priority of claims under section 507 or 726 of 
this title, except that the claim of a foreign creditor under 
those sections shall not be given a lower priority than that of 
general unsecured claims without priority solely because the 
holder of such claim is a foreign creditor.
    ``(2)(A) Subsection (a) and paragraph (1) do not change or 
codify present law 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. 1514. 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) Such 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 letter or 
other 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 under 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. 1515. Application for recognition

    ``(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) shall be translated into English. The court 
may require a translation into English of additional documents.

``Sec. 1516. Presumptions concerning recognition

    ``(a) If the decision or certificate referred to in section 
1515(b) indicates that the foreign proceeding is a foreign 
proceeding (as defined in section 101) and that the person or 
body is a foreign representative (as defined in section 101), 
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 or not they have been legalized.
    ``(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. 1517. Order granting recognition

    ``(a) Subject to section 1506, after notice and a hearing, 
an order recognizing a foreign proceeding shall be entered if--
            ``(1) the foreign proceeding for which recognition 
        is sought is a foreign main proceeding or foreign 
        nonmain proceeding within the meaning of section 1502;
            ``(2) the foreign representative applying for 
        recognition is a person or body as defined in section 
        101; and
            ``(3) the petition meets the requirements of 
        section 1515.
    ``(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 1502 
        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 constitutes 
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 order granting recognition. The case under 
this chapter may be closed in the manner prescribed under 
section 350.

``Sec. 1518. 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. 1519. Relief that may be granted upon filing petition for 
                    recognition

    ``(a) From the time of filing a petition for recognition 
until the court rules on the petition, 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 authorized 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 1521(a).
    ``(b) Unless extended under section 1521(a)(6), the relief 
granted under this section terminates when the petition for 
recognition is granted.
    ``(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.
    ``(f) The exercise of rights not subject to the stay 
arising under section 362(a) pursuant to paragraph (6), (7), 
(17), or (28) of section 362(b) or pursuant to section 362(l) 
shall not be stayed by any order of a court or administrative 
agency in any proceeding under this chapter.

``Sec. 1520. Effects of recognition of a foreign main proceeding

    ``(a) Upon recognition of a foreign proceeding that is a 
foreign main proceeding--
            ``(1) sections 361 and 362 apply with respect to 
        the debtor and that property of the debtor that is 
        within the territorial jurisdiction of the United 
        States;
            ``(2) sections 363, 549, and 552 of this title 
        apply to a transfer of an interest of the debtor in 
        property that is within the territorial jurisdiction of 
        the United States to the same extent that the sections 
        would apply to property of an estate;
            ``(3) unless the court orders otherwise, the 
        foreign representative may operate the debtor's 
        business and may exercise the rights and powers of a 
        trustee under and to the extent provided by sections 
        363 and 552; and
            ``(4) section 552 applies to property of the debtor 
        that is within the territorial jurisdiction of the 
        United States.
    ``(b) Subsection (a) does not affect the right to commence 
an individual action or proceeding in a foreign country to the 
extent necessary to preserve a claim against the debtor.
    ``(c) Subsection (a) 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. 1521. Relief that may be granted upon recognition

    ``(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 
        an individual action or proceeding concerning the 
        debtor's assets, rights, obligations or liabilities to 
        the extent they have not been stayed under section 
        1520(a);
            ``(2) staying execution against the debtor's assets 
        to the extent it has not been stayed under section 
        1520(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 
        1520(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, authorized by the court;
            ``(6) extending relief granted under section 
        1519(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, 
authorized 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.
    ``(e) The standards, procedures, and limitations applicable 
to an injunction shall apply to relief under paragraphs (1), 
(2), (3), and (6) of subsection (a).
    ``(f) The exercise of rights not subject to the stay 
arising under section 362(a) pursuant to paragraph (6), (7), 
(17), or (28) of section 362(b) or pursuant to section 362(l) 
shall not be stayed by any order of a court or administrative 
agency in any proceeding under this chapter.

``Sec. 1522. Protection of creditors and other interested persons

    ``(a) The court may grant relief under section 1519 or 
1521, or may modify or terminate relief under subsection (c), 
only if the interests of the creditors and other interested 
entities, including the debtor, are sufficiently protected.
    ``(b) The court may subject relief granted under section 
1519 or 1521, or the operation of the debtor's business under 
section 1520(a)(3) of this title, to conditions it considers 
appropriate, including the giving of security or the filing of 
a bond.
    ``(c) The court may, at the request of the foreign 
representative or an entity affected by relief granted under 
section 1519 or 1521, or at its own motion, modify or terminate 
such relief.
    ``(d) 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.

``Sec. 1523. Actions to avoid acts detrimental to creditors

    ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a case concerning the debtor 
pending under another chapter of this title to initiate actions 
under sections 522, 544, 545, 547, 548, 550, 553, and 724(a).
    ``(b) When the foreign proceeding is a foreign nonmain 
proceeding, the court must be satisfied that an action under 
subsection (a) relates to assets that, under United States law, 
should be administered in the foreign nonmain proceeding.

``Sec. 1524. 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. 1525. Cooperation and direct communication between the court and 
                    foreign courts or foreign representatives

    ``(a) Consistent with section 1501, 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. 1526. Cooperation and direct communication between the trustee 
                    and foreign courts or foreign representatives

    ``(a) Consistent with section 1501, the trustee or other 
person, including an examiner, authorized 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, 
authorized by the court is entitled, subject to the supervision 
of the court, to communicate directly with foreign courts or 
foreign representatives.

``Sec. 1527. Forms of cooperation

    ``Cooperation referred to in sections 1525 and 1526 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. 1528. 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 such 
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 1525, 1526, and 1527, to other 
assets of the debtor that are within the jurisdiction of the 
court under sections 541(a) of this title, and 1334(e) of title 
28, 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. 1529. Coordination of a case under this title and a foreign 
                    proceeding

    ``If 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 1525, 1526, and 1527, and the following shall apply:
            ``(1) If 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 
                1519 or 1521 must be consistent with the relief 
                granted in the case in the United States; and
                    ``(B) even if the foreign proceeding is 
                recognized as a foreign main proceeding, 
                section 1520 does not apply.
            ``(2) If 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 
                1519 or 1521 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 1520(a) shall 
                be modified or terminated if inconsistent with 
                the relief granted in 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 laws 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 1528 and 1529, the court may grant any 
        of the relief authorized under section 305.

``Sec. 1530. Coordination of more than 1 foreign proceeding

    ``In matters referred to in section 1501, with respect to 
more than 1 foreign proceeding regarding the debtor, the court 
shall seek cooperation and coordination under sections 1525, 
1526, and 1527, and the following shall apply:
            ``(1) Any relief granted under section 1519 or 1521 
        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 1519 or 1521 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. 1531. 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 as such debts become due.

``Sec. 1532. 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 13 the following:

``15. Ancillary and Other Cross-Border Cases.....................1501''.

SEC. 802. OTHER AMENDMENTS TO TITLES 11 AND 28, 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, 362(l), 555 through 557, and 559 through 562 apply 
        in a case under chapter 15''; and
            (2) by adding at the end the following:
    ``(j) Chapter 15 applies only in a case under such chapter, 
except that--
            ``(1) sections 1505, 1513, and 1514 apply in all 
        cases under this title; and
            ``(2) section 1509 applies whether or not a case 
        under this title is pending.''.
    (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 
        country, including an interim proceeding, under a law 
        relating to insolvency or adjustment of debt 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 a person or body 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 15 of title 11.''.
            (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 15 of title 11, nothing 
        in''.
            (3) Duties of trustees.--Section 586(a)(3) of title 
        28, United States Code, is amended by striking ``or 
        13'' and inserting ``13, or 15,''.
            (4) Venue of cases ancillary to foreign 
        proceedings.--Section 1410 of title 28, United States 
        Code, is amended to read as follows:

``Sec. 1410. Venue of cases ancillary to foreign proceedings

    ``A case under chapter 15 of title 11 may be commenced in 
the district court for the district--
            ``(1) in which the debtor has its principal place 
        of business or principal assets in the United States;
            ``(2) if the debtor does not have a place of 
        business or assets in the United States, in which there 
        is pending against the debtor an action or proceeding 
        in a Federal or State court; or
            ``(3) in a case other than those specified in 
        paragraph (1) or (2), in which venue will be consistent 
        with the interests of justice and the convenience of 
        the parties, having regard to the relief sought by the 
        foreign representative.''.
    (d) Other Sections of Title 11.--
            (1) Section 109(b)(3) of title 11, United States 
        Code, is amended to read as follows:
            ``(3)(A) a foreign insurance company, engaged in 
        such business in the United States; or
            ``(B) a foreign bank, savings bank, cooperative 
        bank, savings and loan association, building and loan 
        association, or credit union, that has a branch or 
        agency (as defined in section 1(b) of the International 
        Banking Act of 1978 (12 U.S.C. 3101) in the United 
        States.''.
            (2) Section 303(k) of title 11, United States Code, 
        is repealed.
            (3)(A) Section 304 of title 11, United States Code, 
        is repealed.
            (B) The table of sections at the beginning of 
        chapter 3 of title 11, United States Code, is amended 
        by striking the item relating to section 304.
            (C) Section 306 of title 11, United States Code, is 
        amended by striking ``, 304,'' each place it appears.
            (4) Section 305(a)(2) of title 11, United States 
        Code, is amended to read as follows:
            ``(2)(A) a petition under section 1515 of this 
        title for recognition of a foreign proceeding has been 
        granted; and
            ``(B) the purposes of chapter 15 of this title 
        would be best served by such dismissal or 
        suspension.''.
            (5) Section 508 of title 11, United States Code, is 
        amended--
                    (A) by striking subsection (a); and
                    (B) in subsection (b), by striking ``(b)''.

                TITLE IX--FINANCIAL CONTRACT PROVISIONS

SEC. 901. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS 
                    OF INSURED DEPOSITORY INSTITUTIONS.

    (a) Definition of Qualified Financial Contract.--Section 
11(e)(8)(D)(i) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(i)) is amended by inserting ``, resolution, or 
order'' after ``any similar agreement that the Corporation 
determines by regulation''.
    (b) Definition of Securities Contract.--Section 
11(e)(8)(D)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(ii)) is amended to read as follows:
                            ``(ii) Securities contract.--The 
                        term `securities contract'--
                                    ``(I) means 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, 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 any 
                                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) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a 
                                participation in a commercial 
                                mortgage loan unless the 
                                Corporation determines by 
                                regulation, resolution, or 
                                order to include any such 
                                agreement within the meaning of 
                                such term;
                                    ``(III) means any option 
                                entered into on a national 
                                securities exchange relating to 
                                foreign currencies;
                                    ``(IV) means the guarantee 
                                by or to any securities 
                                clearing agency of any 
                                settlement of cash, securities, 
                                certificates of deposit, 
                                mortgage loans or interests 
                                therein, 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;
                                    ``(V) means any margin 
                                loan;
                                    ``(VI) means any other 
                                agreement or transaction that 
                                is similar to any agreement or 
                                transaction referred to in this 
                                clause;
                                    ``(VII) means any 
                                combination of the agreements 
                                or transactions referred to in 
                                this clause;
                                    ``(VIII) means any option 
                                to enter into any agreement or 
                                transaction referred to in this 
                                clause;
                                    ``(IX) means a master 
                                agreement that provides for an 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (III), (IV), (V), (VI), (VII), 
                                or (VIII), 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 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a securities contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (III), (IV), 
                                (V), (VI), (VII), or (VIII); 
                                and
                                    ``(X) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in this 
                                clause.''.
    (c) Definition of Commodity Contract.--Section 
11(e)(8)(D)(iii) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(8)(D)(iii)) is amended to read as follows:
                            ``(iii) Commodity contract.--The 
                        term `commodity contract' means--
                                    ``(I) with respect to a 
                                futures commission merchant, a 
                                contract for the purchase or 
                                sale of a commodity for future 
                                delivery on, or subject to the 
                                rules of, a contract market or 
                                board of trade;
                                    ``(II) with respect to a 
                                foreign futures commission 
                                merchant, a foreign future;
                                    ``(III) with respect to a 
                                leverage transaction merchant, 
                                a leverage transaction;
                                    ``(IV) with respect to a 
                                clearing organization, a 
                                contract for the purchase or 
                                sale of a commodity for future 
                                delivery on, or subject to the 
                                rules of, a contract market or 
                                board of trade that is cleared 
                                by such clearing organization, 
                                or commodity option traded on, 
                                or subject to the rules of, a 
                                contract market or board of 
                                trade that is cleared by such 
                                clearing organization;
                                    ``(V) with respect to a 
                                commodity options dealer, a 
                                commodity option;
                                    ``(VI) any other agreement 
                                or transaction that is similar 
                                to any agreement or transaction 
                                referred to in this clause;
                                    ``(VII) any combination of 
                                the agreements or transactions 
                                referred to in this clause;
                                    ``(VIII) any option to 
                                enter into any agreement or 
                                transaction referred to in this 
                                clause;
                                    ``(IX) a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII), 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 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a commodity contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII); or
                                    ``(X) any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in this 
                                clause.''.
    (d) Definition of Forward Contract.--Section 
11(e)(8)(D)(iv) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(iv)) is amended to read as follows:
                            ``(iv) Forward contract.--The term 
                        `forward contract' means--
                                    ``(I) a contract (other 
                                than a commodity contract) for 
                                the purchase, sale, or transfer 
                                of a commodity or any similar 
                                good, article, service, right, 
                                or interest which is presently 
                                or in the future becomes the 
                                subject of dealing in the 
                                forward contract trade, or 
                                product or byproduct thereof, 
                                with a maturity date more than 
                                2 days after the date the 
                                contract is entered into, 
                                including, a repurchase 
                                transaction, reverse repurchase 
                                transaction, consignment, 
                                lease, swap, hedge transaction, 
                                deposit, loan, option, 
                                allocated transaction, 
                                unallocated transaction, or any 
                                other similar agreement;
                                    ``(II) any combination of 
                                agreements or transactions 
                                referred to in subclauses (I) 
                                and (III);
                                    ``(III) any option to enter 
                                into any agreement or 
                                transaction referred to in 
                                subclause (I) or (II);
                                    ``(IV) a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclauses (I), (II), or (III), 
                                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 clause, except that 
                                the master agreement shall be 
                                considered to be a forward 
                                contract under this clause only 
                                with respect to each agreement 
                                or transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), or 
                                (III); or
                                    ``(V) any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in 
                                subclause (I), (II), (III), or 
                                (IV).''.
    (e) Definition of Repurchase Agreement.--Section 
11(e)(8)(D)(v) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(v)) is amended to read as follows:
                            ``(v) Repurchase agreement.--The 
                        term `repurchase agreement' (which 
                        definition also applies to a reverse 
                        repurchase agreement)--
                                    ``(I) means an agreement, 
                                including related terms, which 
                                provides for the transfer of 
                                one 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 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;
                                    ``(II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial 
                                mortgage loan unless the 
                                Corporation determines by 
                                regulation, resolution, or 
                                order to include any such 
                                participation within the 
                                meaning of such term;
                                    ``(III) means any 
                                combination of agreements or 
                                transactions referred to in 
                                subclauses (I) and (IV);
                                    ``(IV) means any option to 
                                enter into any agreement or 
                                transaction referred to in 
                                subclause (I) or (III);
                                    ``(V) means a master 
                                agreement that provides for an 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (III), or (IV), 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 repurchase agreement 
                                under this clause, except that 
                                the master agreement shall be 
                                considered to be a repurchase 
                                agreement under this subclause 
                                only with respect to each 
                                agreement or transaction under 
                                the master agreement that is 
                                referred to in subclause (I), 
                                (III), or (IV); and
                                    ``(VI) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in 
                                subclause (I), (III), (IV), or 
                                (V).
                        For purposes of this clause, 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 
                        (as determined by regulation or order 
                        adopted by the appropriate Federal 
                        banking authority).''.
    (f) Definition of Swap Agreement.--Section 11(e)(8)(D)(vi) 
of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(vi)) is amended to read as follows:
                            ``(vi) Swap agreement.--The term 
                        `swap agreement' 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; or a weather 
                                swap, weather derivative, or 
                                weather option;
                                    ``(II) any agreement or 
                                transaction similar to any 
                                other agreement or transaction 
                                referred to in this clause that 
                                is presently, or in the future 
                                becomes, regularly entered into 
                                in the swap market (including 
                                terms and conditions 
                                incorporated by reference in 
                                such agreement) and that is a 
                                forward, swap, future, or 
                                option on one 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 clause;
                                    ``(IV) any option to enter 
                                into any agreement or 
                                transaction referred to in this 
                                clause;
                                    ``(V) a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclause (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 not a swap 
                                agreement under this clause, 
                                except that the master 
                                agreement shall be considered 
                                to be a swap agreement under 
                                this clause only with respect 
                                to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                or (IV); and
                                    ``(VI) any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreements or 
                                transactions referred to in 
                                subparagraph (I), (II), (III), 
                                (IV), or (V).
                        Such term is applicable for purposes of 
                        this title only and shall not be 
                        construed or applied so as to challenge 
                        or affect the characterization, 
                        definition, or treatment of any swap 
                        agreement 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 promulgated by the 
                        Securities and Exchange Commission or 
                        the Commodity Futures Trading 
                        Commission.''.
    (g) Definition of Transfer.--Section 11(e)(8)(D)(viii) of 
the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(viii)) is amended to read as follows:
                            ``(viii) Transfer.--The term 
                        `transfer' means every mode, direct or 
                        indirect, absolute or conditional, 
                        voluntary or involuntary, of disposing 
                        of or parting with property or with an 
                        interest in property, including 
                        retention of title as a security 
                        interest and foreclosure of the 
                        depository institutions's equity of 
                        redemption.''.
    (h) Treatment of Qualified Financial Contracts.--Section 
11(e)(8) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``paragraph (10)'' and 
                inserting ``paragraphs (9) and (10)'';
                    (B) in clause (i), by striking ``to cause 
                the termination or liquidation'' and inserting 
                ``such person has to cause the termination, 
                liquidation, or acceleration''; and
                    (C) by striking clause (ii) and inserting 
                the following:
                            ``(ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to one or 
                        more qualified financial contracts 
                        described in clause (i);''; and
            (2) in subparagraph (E), by striking clause (ii) 
        and inserting the following:
                            ``(ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to one or 
                        more qualified financial contracts 
                        described in clause (i);''.
    (i) Avoidance of Transfers.--Section 11(e)(8)(C)(i) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(C)(i)) is 
amended by inserting ``section 5242 of the Revised Statutes of 
the United States (12 U.S.C. 91) or any other Federal or State 
law relating to the avoidance of preferential or fraudulent 
transfers,'' before ``the Corporation''.

SEC. 902. AUTHORITY OF THE CORPORATION WITH RESPECT TO FAILED AND 
                    FAILING INSTITUTIONS.

    (a) In General.--Section 11(e)(8) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(e)(8)) is amended--
            (1) in subparagraph (E), by striking ``other than 
        paragraph (12) of this subsection, subsection (d)(9)'' 
        and inserting ``other than subsections (d)(9) and 
        (e)(10)''; and
            (2) by adding at the end the following new 
        subparagraphs:
                    ``(F) Clarification.--No provision of law 
                shall be construed as limiting the right or 
                power of the Corporation, or authorizing any 
                court or agency to limit or delay, in any 
                manner, the right or power of the Corporation 
                to transfer any qualified financial contract in 
                accordance with paragraphs (9) and (10) of this 
                subsection or to disaffirm or repudiate any 
                such contract in accordance with subsection 
                (e)(1) of this section.
                    ``(G) Walkaway clauses not effective.--
                            ``(i) In general.--Notwithstanding 
                        the provisions of subparagraphs (A) and 
                        (E), and sections 403 and 404 of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, no walkaway 
                        clause shall be enforceable in a 
                        qualified financial contract of an 
                        insured depository institution in 
                        default.
                            ``(ii) Walkaway clause defined.--
                        For purposes of this subparagraph, the 
                        term `walkaway clause' means a 
                        provision in a qualified financial 
                        contract that, after calculation of a 
                        value of a party's position or an 
                        amount due to or from 1 of the parties 
                        in accordance with its terms upon 
                        termination, liquidation, or 
                        acceleration of the qualified financial 
                        contract, either does not create a 
                        payment obligation of a party or 
                        extinguishes a payment obligation of a 
                        party in whole or in part solely 
                        because of such party's status as a 
                        nondefaulting party.''.
    (b) Technical and Conforming Amendment.--Section 
11(e)(12)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(12)(A)) is amended by inserting ``or the exercise of 
rights or powers by'' after ``the appointment of''.

SEC. 903. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED FINANCIAL 
                    CONTRACTS.

    (a) Transfers of Qualified Financial Contracts to Financial 
Institutions.--Section 11(e)(9) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(e)(9)) is amended to read as 
follows:
            ``(9) Transfer of qualified financial contracts.--
                    ``(A) In general.--In making any transfer 
                of assets or liabilities of a depository 
                institution in default which includes any 
                qualified financial contract, the conservator 
                or receiver for such depository institution 
                shall either--
                            ``(i) transfer to one financial 
                        institution, other than a financial 
                        institution for which a conservator, 
                        receiver, trustee in bankruptcy, or 
                        other legal custodian has been 
                        appointed or which is otherwise the 
                        subject of a bankruptcy or insolvency 
                        proceeding--
                                    ``(I) all qualified 
                                financial contracts between any 
                                person or any affiliate of such 
                                person and the depository 
                                institution in default;
                                    ``(II) all claims of such 
                                person or any affiliate of such 
                                person against such depository 
                                institution under any such 
                                contract (other than any claim 
                                which, under the terms of any 
                                such contract, is subordinated 
                                to the claims of general 
                                unsecured creditors of such 
                                institution);
                                    ``(III) all claims of such 
                                depository institution against 
                                such person or any affiliate of 
                                such person under any such 
                                contract; and
                                    ``(IV) all property 
                                securing or any other credit 
                                enhancement for any contract 
                                described in subclause (I) or 
                                any claim described in 
                                subclause (II) or (III) under 
                                any such contract; or
                            ``(ii) transfer none of the 
                        qualified financial contracts, claims, 
                        property or other credit enhancement 
                        referred to in clause (i) (with respect 
                        to such person and any affiliate of 
                        such person).
                    ``(B) Transfer to foreign bank, foreign 
                financial institution, or branch or agency of a 
                foreign bank or financial institution.--In 
                transferring any qualified financial contract 
                and related claims and property under 
                subparagraph (A)(i), the conservator or 
                receiver for the depository institution shall 
                not make such transfer to a foreign bank, 
                financial institution organized under the laws 
                of a foreign country, or a branch or agency of 
                a foreign bank or financial institution unless, 
                under the law applicable to such bank, 
                financial institution, branch or agency, to the 
                qualified financial contracts, and to any 
                netting contract, any security agreement or 
                arrangement or other credit enhancement related 
                to one or more qualified financial contracts, 
                the contractual rights of the parties to such 
                qualified financial contracts, netting 
                contracts, security agreements or arrangements, 
                or other credit enhancements are enforceable 
                substantially to the same extent as permitted 
                under this section.
                    ``(C) Transfer of contracts subject to the 
                rules of a clearing organization.--In the event 
                that a conservator or receiver transfers any 
                qualified financial contract and related 
                claims, property, and credit enhancements 
                pursuant to subparagraph (A)(i) and such 
                contract is subject to the rules of a clearing 
                organization, the clearing organization shall 
                not be required to accept the transferee as a 
                member by virtue of the transfer.
                    ``(D) Definition.--For purposes of this 
                paragraph, the term `financial institution' 
                means a broker or dealer, a depository 
                institution, a futures commission merchant, or 
                any other institution, as determined by the 
                Corporation by regulation to be a financial 
                institution.''.
    (b) Notice to Qualified Financial Contract 
Counterparties.--Section 11(e)(10)(A) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(e)(10)(A)) is amended in the 
material immediately following clause (ii) by striking ``the 
conservator'' and all that follows through the period and 
inserting the following: ``the conservator or receiver shall 
notify any person who is a party to any such contract of such 
transfer by 5:00 p.m. (eastern time) on the business day 
following the date of the appointment of the receiver in the 
case of a receivership, or the business day following such 
transfer in the case of a conservatorship.''.
    (c) Rights Against Receiver and Treatment of Bridge 
Banks.--Section 11(e)(10) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(e)(10)) is amended--
            (1) by redesignating subparagraph (B) as 
        subparagraph (D); and
            (2) by inserting after subparagraph (A) the 
        following new subparagraphs:
                    ``(B) Certain rights not enforceable.--
                            ``(i) Receivership.--A person who 
                        is a party to a qualified financial 
                        contract with an insured depository 
                        institution may not exercise any right 
                        that such person has to terminate, 
                        liquidate, or net such contract under 
                        paragraph (8)(A) of this subsection or 
                        section 403 or 404 of the Federal 
                        Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by 
                        reason of or incidental to the 
                        appointment of a receiver for the 
                        depository institution (or the 
                        insolvency or financial condition of 
                        the depository institution for which 
                        the receiver has been appointed)--
                                    ``(I) until 5:00 p.m. 
                                (eastern time) on the business 
                                day following the date of the 
                                appointment of the receiver; or
                                    ``(II) after the person has 
                                received notice that the 
                                contract has been transferred 
                                pursuant to paragraph (9)(A).
                            ``(ii) Conservatorship.--A person 
                        who is a party to a qualified financial 
                        contract with an insured depository 
                        institution may not exercise any right 
                        that such person has to terminate, 
                        liquidate, or net such contract under 
                        paragraph (8)(E) of this subsection or 
                        sections 403 or 404 of the Federal 
                        Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by 
                        reason of or incidental to the 
                        appointment of a conservator for the 
                        depository institution (or the 
                        insolvency or financial condition of 
                        the depository institution for which 
                        the conservator has been appointed).
                            ``(iii) Notice.--For purposes of 
                        this paragraph, the Corporation as 
                        receiver or conservator of an insured 
                        depository institution shall be deemed 
                        to have notified a person who is a 
                        party to a qualified financial contract 
                        with such depository institution if the 
                        Corporation has taken steps reasonably 
                        calculated to provide notice to such 
                        person by the time specified in 
                        subparagraph (A).
                    ``(C) Treatment of bridge banks.--The 
                following institutions shall not be considered 
                to be a financial institution for which a 
                conservator, receiver, trustee in bankruptcy, 
                or other legal custodian has been appointed or 
                which is otherwise the subject of a bankruptcy 
                or insolvency proceeding for purposes of 
                paragraph (9):
                            ``(i) A bridge bank.
                            ``(ii) A depository institution 
                        organized by the Corporation, for which 
                        a conservator is appointed either--
                                    ``(I) immediately upon the 
                                organization of the 
                                institution; or
                                    ``(II) at the time of a 
                                purchase and assumption 
                                transaction between the 
                                depository institution and the 
                                Corporation as receiver for a 
                                depository institution in 
                                default.''.

SEC. 904. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF 
                    QUALIFIED FINANCIAL CONTRACTS.

    Section 11(e) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)) is amended--
            (1) by redesignating paragraphs (11) through (15) 
        as paragraphs (12) through (16), respectively; and
            (2) by inserting after paragraph (10) the following 
        new paragraph:
            ``(11) Disaffirmance or repudiation of qualified 
        financial contracts.--In exercising the rights of 
        disaffirmance or repudiation of a conservator or 
        receiver with respect to any qualified financial 
        contract to which an insured depository institution is 
        a party, the conservator or receiver for such 
        institution shall either--
                    ``(A) disaffirm or repudiate all qualified 
                financial contracts between--
                            ``(i) any person or any affiliate 
                        of such person; and
                            ``(ii) the depository institution 
                        in default; or
                    ``(B) disaffirm or repudiate none of the 
                qualified financial contracts referred to in 
                subparagraph (A) (with respect to such person 
                or any affiliate of such person).''.

SEC. 905. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.

    Section 11(e)(8)(D)(vii) of the Federal Deposit Insurance 
Act (12 U.S.C. 1821(e)(8)(D)(vii)) is amended to read as 
follows:
                            ``(vii) Treatment of master 
                        agreement as one agreement.--Any master 
                        agreement for any contract or agreement 
                        described in any preceding clause of 
                        this subparagraph (or any master 
                        agreement for such master agreement or 
                        agreements), together with all 
                        supplements to such master agreement, 
                        shall be treated as a single agreement 
                        and a single qualified financial 
                        contract. If a master agreement 
                        contains provisions relating to 
                        agreements or transactions that are not 
                        themselves qualified financial 
                        contracts, the master agreement shall 
                        be deemed to be a qualified financial 
                        contract only with respect to those 
                        transactions that are themselves 
                        qualified financial contracts.''.

SEC. 906. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 
                    1991.

    (a) Definitions.--Section 402 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4402) 
is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)(ii), by inserting 
                before the semicolon ``, or is exempt from such 
                registration by order of the Securities and 
                Exchange Commission''; and
                    (B) in subparagraph (B), by inserting 
                before the period ``or that has been granted an 
                exemption under section 4(c)(1) of the 
                Commodity Exchange Act'';
            (2) in paragraph (6)--
                    (A) by redesignating subparagraphs (B) 
                through (D) as subparagraphs (C) through (E), 
                respectively;
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) an uninsured national bank or an 
                uninsured State bank that is a member of the 
                Federal Reserve System, if the national bank or 
                State member bank is not eligible to make 
                application to become an insured bank under 
                section 5 of the Federal Deposit Insurance 
                Act;''; and
                    (C) by amending subparagraph (C) (as 
                redesignated) to read as follows:
                    ``(C) a branch or agency of a foreign bank, 
                a foreign bank and any branch or agency of the 
                foreign bank, or the foreign bank that 
                established the branch or agency, as those 
                terms are defined in section 1(b) of the 
                International Banking Act of 1978;'';
            (3) in paragraph (11), by inserting before the 
        period ``and any other clearing organization with which 
        such clearing organization has a netting contract'';
            (4) by amending paragraph (14)(A)(i) to read as 
        follows:
                            ``(i) means a contract or agreement 
                        between 2 or more financial 
                        institutions, clearing organizations, 
                        or members that provides for netting 
                        present or future payment obligations 
                        or payment entitlements (including 
                        liquidation or closeout values relating 
                        to such obligations or entitlements) 
                        among the parties to the agreement; 
                        and''; and
            (5) by adding at the end the following new 
        paragraph:
            ``(15) Payment.--The term `payment' means a payment 
        of United States dollars, another currency, or a 
        composite currency, and a noncash delivery, including a 
        payment or delivery to liquidate an unmatured 
        obligation.''.
    (b) Enforceability of Bilateral Netting Contracts.--Section 
403 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 4403) is amended--
            (1) by striking subsection (a) and inserting the 
        following:
    ``(a) General Rule.--Notwithstanding any other provision of 
State or Federal law (other than paragraphs (8)(E), (8)(F), and 
(10)(B) of section 11(e) of the Federal Deposit Insurance Act 
or any order authorized under section 5(b)(2) of the Securities 
Investor Protection Act of 1970), the covered contractual 
payment obligations and the covered contractual payment 
entitlements between any 2 financial institutions shall be 
netted in accordance with, and subject to the conditions of, 
the terms of any applicable netting contract (except as 
provided in section 561(b)(2) of title 11, United States 
Code).''; and
            (2) by adding at the end the following new 
        subsection:
    ``(f) Enforceability of Security Agreements.--The 
provisions of any security agreement or arrangement or other 
credit enhancement related to one or more netting contracts 
between any 2 financial institutions shall be enforceable in 
accordance with their terms (except as provided in section 
561(b)(2) of title 11, United States Code), and shall not be 
stayed, avoided, or otherwise limited by any State or Federal 
law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act and section 
5(b)(2) of the Securities Investor Protection Act of 1970).''.
    (c) Enforceability of Clearing Organization Netting 
Contracts.--Section 404 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4404) is 
amended--
            (1) by striking subsection (a) and inserting the 
        following:
    ``(a) General Rule.--Notwithstanding any other provision of 
State or Federal law (other than paragraphs (8)(E), (8)(F), and 
(10)(B) of section 11(e) of the Federal Deposit Insurance Act 
and any order authorized under section 5(b)(2) of the 
Securities Investor Protection Act of 1970), the covered 
contractual payment obligations and the covered contractual 
payment entitlements of a member of a clearing organization to 
and from all other members of a clearing organization shall be 
netted in accordance with and subject to the conditions of any 
applicable netting contract (except as provided in section 
561(b)(2) of title 11, United States Code).''; and
            (2) by adding at the end the following new 
        subsection:
    ``(h) Enforceability of Security Agreements.--The 
provisions of any security agreement or arrangement or other 
credit enhancement related to one or more netting contracts 
between any 2 members of a clearing organization shall be 
enforceable in accordance with their terms (except as provided 
in section 561(b)(2) of title 11, United States Code), and 
shall not be stayed, avoided, or otherwise limited by any State 
or Federal law (other than paragraphs (8)(E), (8)(F), and 
(10)(B) of section 11(e) of the Federal Deposit Insurance Act 
and section 5(b)(2) of the Securities Investor Protection Act 
of 1970).''.
    (d) Enforceability of Contracts With Uninsured National 
Banks and Uninsured Federal Branches and Agencies.--The Federal 
Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 4401 et seq.) is amended--
            (1) by redesignating section 407 as section 408; 
        and
            (2) by inserting after section 406 the following 
        new section:

``SEC. 407. TREATMENT OF CONTRACTS WITH UNINSURED NATIONAL BANKS AND 
                    UNINSURED FEDERAL BRANCHES AND AGENCIES.

    ``(a) In General.--Notwithstanding any other provision of 
law, paragraphs (8), (9), (10), and (11) of section 11(e) of 
the Federal Deposit Insurance Act shall apply to an uninsured 
national bank or uninsured Federal branch or Federal agency, 
except that for such purpose--
            ``(1) any reference to the `Corporation as 
        receiver' or `the receiver or the Corporation' shall 
        refer to the receiver of an uninsured national bank or 
        uninsured Federal branch or Federal agency appointed by 
        the Comptroller of the Currency;
            ``(2) any reference to the `Corporation' (other 
        than in section 11(e)(8)(D) of such Act), the 
        `Corporation, whether acting as such or as conservator 
        or receiver', a `receiver', or a `conservator' shall 
        refer to the receiver or conservator of an uninsured 
        national bank or uninsured Federal branch or Federal 
        agency appointed by the Comptroller of the Currency; 
        and
            ``(3) any reference to an `insured depository 
        institution' or `depository institution' shall refer to 
        an uninsured national bank or an uninsured Federal 
        branch or Federal agency.
    ``(b) Liability.--The liability of a receiver or 
conservator of an uninsured national bank or uninsured Federal 
branch or agency shall be determined in the same manner and 
subject to the same limitations that apply to receivers and 
conservators of insured depository institutions under section 
11(e) of the Federal Deposit Insurance Act.
    ``(c) Regulatory Authority.--
            ``(1) In general.--The Comptroller of the Currency, 
        in consultation with the Federal Deposit Insurance 
        Corporation, may promulgate regulations to implement 
        this section.
            ``(2) Specific requirement.--In promulgating 
        regulations to implement this section, the Comptroller 
        of the Currency shall ensure that the regulations 
        generally are consistent with the regulations and 
        policies of the Federal Deposit Insurance Corporation 
        adopted pursuant to the Federal Deposit Insurance Act.
    ``(d) Definitions.--For purposes of this section, the terms 
`Federal branch', `Federal agency', and `foreign bank' have the 
same meanings as in section 1(b) of the International Banking 
Act of 1978.''.

SEC. 907. BANKRUPTCY CODE AMENDMENTS.

    (a) Definitions of Forward Contract, Repurchase Agreement, 
Securities Clearing Agency, Swap Agreement, Commodity Contract, 
and Securities Contract.--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:
                    ``(B) any combination of agreements or 
                transactions referred to in subparagraphs (A) 
                and (C);
                    ``(C) any option to enter into an 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 such master agreement 
                provides for an agreement or transaction that 
                is not a forward contract under this paragraph, 
                except that such master agreement shall be 
                considered to be a forward contract under this 
                paragraph only with respect to each agreement 
                or transaction under such master agreement that 
                is referred to in subparagraph (A), (B), or 
                (C); or
                    ``(E) any security agreement or 
                arrangement, or other credit enhancement 
                related to any agreement or transaction 
                referred to in subparagraph (A), (B), (C), or 
                (D), but not to exceed the actual value of such 
                contract on the date of the filing of the 
                petition;'';
                    (B) in paragraph (46), by striking ``on any 
                day during the period beginning 90 days before 
                the date of'' and inserting ``at any time 
                before'';
                    (C) by amending paragraph (47) to read as 
                follows:
            ``(47) `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 one or more certificates of 
                        deposit, mortgage related securities 
                        (as defined in section 3 of the 
                        Securities Exchange Act of 1934), 
                        mortgage loans, interests in mortgage 
                        related securities or mortgage loans, 
                        eligible bankers' acceptances, 
                        qualified foreign government securities 
                        (defined as 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), 
                        or securities that are direct 
                        obligations of, or that are fully 
                        guaranteed 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' acceptance, 
                        securities, loans, or interests of the 
                        kind described in this clause, at a 
                        date certain not later than 1 year 
                        after such transfer or on demand, 
                        against the transfer of funds;
                            ``(ii) any combination of 
                        agreements or transactions referred to 
                        in clauses (i) and (iii);
                            ``(iii) an option to enter into an 
                        agreement or transaction referred to in 
                        clause (i) or (ii);
                            ``(iv) a master agreement that 
                        provides for an agreement or 
                        transaction referred to in clause (i), 
                        (ii), or (iii), together with all 
                        supplements to any such master 
                        agreement, without regard to whether 
                        such master agreement provides for an 
                        agreement or transaction that is not a 
                        repurchase agreement under this 
                        paragraph, except that such master 
                        agreement shall be considered to be a 
                        repurchase agreement under this 
                        paragraph only with respect to each 
                        agreement or transaction under the 
                        master agreement that is referred to in 
                        clause (i), (ii), or (iii); or
                            ``(v) any security agreement or 
                        arrangement or other credit enhancement 
                        related to any agreement or transaction 
                        referred to in clause (i), (ii), (iii), 
                        or (iv), but not to exceed the actual 
                        value of such contract on the date of 
                        the filing of the petition; and
                    ``(B) does not include a repurchase 
                obligation under a participation in a 
                commercial mortgage loan;'';
                    (D) in paragraph (48), by inserting ``, or 
                exempt from such registration under such 
                section pursuant to an order of the Securities 
                and Exchange Commission,'' after ``1934''; and
                    (E) by amending paragraph (53B) to read as 
                follows:
            ``(53B) `swap agreement'--
                    ``(A) means--
                            ``(i) any agreement, including the 
                        terms and conditions incorporated by 
                        reference in such agreement, which is 
                        an interest rate swap, option, future, 
                        or forward agreement, including--
                                    ``(I) a rate floor, rate 
                                cap, rate collar, cross-
                                currency rate swap, and basis 
                                swap;
                                    ``(II) a spot, same day-
                                tomorrow, tomorrow-next, 
                                forward, or other foreign 
                                exchange or precious metals 
                                agreement;
                                    ``(III) a currency swap, 
                                option, future, or forward 
                                agreement;
                                    ``(IV) an equity index or 
                                an equity swap, option, future, 
                                or forward agreement;
                                    ``(V) a debt index or a 
                                debt swap, option, future, or 
                                forward agreement;
                                    ``(VI) a credit spread or a 
                                credit swap, option, future, or 
                                forward agreement;
                                    ``(VII) a commodity index 
                                or a commodity swap, option, 
                                future, or forward agreement; 
                                or
                                    ``(VIII) a weather swap, 
                                weather derivative, or weather 
                                option;
                            ``(ii) any agreement or transaction 
                        similar to any other agreement or 
                        transaction referred to in this 
                        paragraph that--
                                    ``(I) is presently, or in 
                                the future becomes, regularly 
                                entered into in the swap market 
                                (including terms and conditions 
                                incorporated by reference 
                                therein); and
                                    ``(II) is a forward, swap, 
                                future, or option on one 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 an 
                        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, and without regard to 
                        whether the master agreement contains 
                        an agreement or transaction that is not 
                        a swap agreement under this paragraph, 
                        except that the master agreement shall 
                        be considered to be a swap agreement 
                        under this paragraph only with respect 
                        to each agreement or transaction under 
                        the master agreement that is referred 
                        to in clause (i), (ii), (iii), or (iv); 
                        or
                            ``(vi) any security agreement or 
                        arrangement or other credit enhancement 
                        related to any agreements or 
                        transactions referred to in clause (i) 
                        through (v), but do not to exceed the 
                        actual value of such contract on the 
                        date of the filing of the petition; and
                    ``(B) is applicable for purposes of this 
                title only, and shall not be construed or 
                applied so as to challenge or affect the 
                characterization, definition, or treatment of 
                any swap agreement 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) in section 741(7), by striking paragraph (7) 
        and inserting the following:
            ``(7) `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, a 
                        group or index of securities, 
                        certificates of deposit, or mortgage 
                        loans or interests therein (including 
                        an interest therein or based on the 
                        value thereof), or option on any of the 
                        foregoing, including an 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 a 
                        settlement of cash, securities, 
                        certificates of deposit, mortgage loans 
                        or interests therein, group or index of 
                        securities, or mortgage loans or 
                        interests therein (including any 
                        interest therein or based on the value 
                        thereof), or option on any of the 
                        foregoing, including an 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 an 
                        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 such master agreement shall 
                        be considered to be a securities 
                        contract under this subparagraph only 
                        with respect to each agreement or 
                        transaction under such master agreement 
                        that is referred to in clause (i), 
                        (ii), (iii), (iv), (v), (vi), or (vii); 
                        or
                            ``(ix) any security agreement or 
                        arrangement or other credit 
                        enhancement, related to any agreement 
                        or transaction referred to in this 
                        subparagraph, but not to exceed the 
                        actual value of such contract on the 
                        date of the filing of the petition; and
                    ``(B) does not include any purchase, sale, 
                or repurchase obligation under a participation 
                in 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:
                    ``(F) any other agreement or transaction 
                that is similar to an 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 an 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 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) any security agreement or arrangement 
                or other credit enhancement related to any 
                agreement or transaction referred to in this 
                paragraph, but not to exceed the actual value 
                of such contract on the date of the filing of 
                the petition;''.
    (b) Definitions of Financial Institution, Financial 
Participant, and Forward Contract Merchant.--Section 101 of 
title 11, United States Code, is amended--
            (1) by striking paragraph (22) and inserting the 
        following:
            ``(22) `financial institution' means--
                    ``(A) a Federal reserve bank, or an entity 
                (domestic or foreign) that is a commercial or 
                savings bank, industrial savings bank, savings 
                and loan association, trust company, or 
                receiver or conservator for such entity and, 
                when any such Federal reserve bank, receiver, 
                conservator or entity is acting as agent or 
                custodian for a customer in connection with a 
                securities contract, as defined in section 741, 
                such customer; or
                    ``(B) in connection with a securities 
                contract, as defined in section 741, an 
                investment company registered under the 
                Investment Company Act of 1940;'';
            (2) by inserting after paragraph (22) the 
        following:
            ``(22A) `financial participant' means an 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 one or more 
        agreements or transactions described in paragraph (1), 
        (2), (3), (4), (5), or (6) of section 561(a) with the 
        debtor or any other entity (other than an affiliate) of 
        a total gross dollar value of not less than 
        $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 not 
        less than $100,000,000 (aggregated across 
        counterparties) in one 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 striking paragraph (26) and inserting the 
        following:
            ``(26) `forward contract merchant' means a Federal 
        reserve bank, or an entity, the business of which 
        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 or any similar good, article, 
        service, right, or interest which is presently or in 
        the future becomes the subject of dealing 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) `master netting agreement'--
                    ``(A) means an agreement providing for the 
                exercise of rights, including rights of 
                netting, setoff, liquidation, termination, 
                acceleration, or closeout, under or in 
                connection with one or more contracts that are 
                described in any one or more of paragraphs (1) 
                through (5) of section 561(a), or any security 
                agreement or arrangement or other credit 
                enhancement related to one or more of the 
                foregoing; and
                    ``(B) if the agreement contains provisions 
                relating to agreements or transactions that are 
                not contracts described in paragraphs (1) 
                through (5) of section 561(a), shall be deemed 
                to be a master netting agreement only with 
                respect to those agreements or transactions 
                that are described in any one or more of 
                paragraphs (1) through (5) of section 561(a);
            ``(38B) `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, as amended by this Act, 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 striking paragraph (17) and 
                inserting the following:
            ``(17) under subsection (a), of the setoff by a 
        swap participant of a mutual debt and claim under or in 
        connection with one or more swap agreements that 
        constitutes the setoff of a claim against the debtor 
        for any payment or other transfer of property 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 held by, pledged to, and under the control of, 
        or due from such swap participant to margin, guarantee, 
        secure, or settle any swap agreement;''; and
                    (D) by inserting after paragraph (27), as 
                added by this Act, the following new paragraph:
            ``(28) under subsection (a), of the setoff by a 
        master netting agreement participant of a mutual debt 
        and claim under or in connection with one or more 
        master netting agreements or any contract or agreement 
        subject to such agreements that constitutes the setoff 
        of a claim against the debtor for any payment or other 
        transfer of property due from the debtor under or in 
        connection with such agreements or any contract or 
        agreement subject to such agreements against any 
        payment due to the debtor from such master netting 
        agreement participant under or in connection with such 
        agreements or any contract or agreement subject to such 
        agreements or against cash, securities, or other 
        property held by, pledged to, and under the control of, 
        or due from such master netting agreement participant 
        to margin, guarantee, secure, or settle such agreements 
        or any contract or agreement subject to such 
        agreements, to the extent that such participant is 
        eligible to exercise such offset rights under paragraph 
        (6), (7), or (17) for each individual contract covered 
        by the master netting agreement in issue; or''.
            (2) Limitation.--Section 362 of title 11, United 
        States Code, as amended by this Act, is amended by 
        adding at the end the following:
    ``(l) Limitation.--The exercise of rights not subject to 
the stay arising under subsection (a) pursuant to paragraph 
(6), (7), (17), or (28) 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, as 
amended by this Act, is amended--
            (1) in subsection (g) (as added by section 103 of 
        Public Law 101-311)--
                    (A) by striking ``under a swap agreement''; 
                and
                    (B) by striking ``in connection with a swap 
                agreement'' and inserting ``under or in 
                connection with any swap agreement''; and
            (2) by adding at the end the following:
    ``(k) Notwithstanding sections 544, 545, 547, 548(a)(1)(B), 
and 548(b) the trustee may not avoid a transfer made by or to a 
master netting agreement participant under or in connection 
with any master netting agreement or any individual contract 
covered thereby that is made before the commencement of the 
case, except under section 548(a)(1)(A) and except to the 
extent that the trustee could otherwise avoid such a transfer 
made under an individual contract covered by such master 
netting agreement.''.
    (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'' at the 
        end;
            (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 or any individual contract covered thereby 
        takes for value to the extent of such transfer, except 
        that, with respect to a transfer under any individual 
        contract covered thereby, to the extent that such 
        master netting agreement participant otherwise did not 
        take (or is otherwise not deemed to have taken) such 
        transfer for value.''.
    (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 as 
        follows:

``Sec. 555. 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 as 
        follows:

``Sec. 556. 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 as 
        follows:

``Sec. 559. 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 as 
        follows:

``Sec. 560. Contractual right to liquidate, terminate, or accelerate a 
                    swap agreement'';

            (2) in the first sentence, by striking 
        ``termination of a swap agreement'' and inserting 
        ``liquidation, termination, or acceleration of one 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 one or 
        more swap agreements''.
    (k) Liquidation, Termination, Acceleration, or Offset Under 
a Master Netting Agreement and Across Contracts.--
            (1) In general.--Title 11, United States Code, is 
        amended by inserting after section 560 the following:

``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 one or more (or the termination, 
liquidation, or acceleration of one 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) In general.--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) Commodity brokers.--If a debtor is a 
        commodity broker subject to subchapter IV of chapter 
        7--
                    ``(A) 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, contracts, or agreements 
                listed in subsection (a) except to the extent 
                that the party has positive net equity in the 
                commodity accounts at the debtor, as calculated 
                under that subchapter IV; and
                    ``(B) another commodity broker may not net 
                or offset an obligation to the debtor arising 
                under, or in connection with, a commodity 
                contract entered into or held on behalf of a 
                customer of the debtor against any claim 
                arising under, or in connection with, other 
                instruments, contracts, or agreements listed in 
                subsection (a).
            ``(3) Construction.--No provision of subparagraph 
        (A) or (B) of paragraph (2) shall prohibit the offset 
        of claims and obligations that arise under--
                    ``(A) a cross-margining agreement that has 
                been approved by the Commodity Futures Trading 
                Commission or submitted to the Commodity 
                Futures Trading Commission under section 
                5(a)(12)(A) of the Commodity Exchange Act and 
                has been approved; or
                    ``(B) any other netting agreement between a 
                clearing organization, as defined in section 
                761, and another entity that has been approved 
                by the Commodity Futures Trading Commission.
    ``(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.
    ``(d) Cases Ancillary to Foreign Proceedings.--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 under chapter 15 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 case 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).''.
    (2) Conforming amendment.--The table of sections for 
chapter 5 of title 11, United States Code, is amended by 
inserting after the item relating to section 560 the following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
          under a master netting agreement and across contracts.

    (l) Commodity Broker Liquidations.--Title 11, United States 
Code, is amended by inserting after section 766 the following:

``Sec. 767. Commodity broker liquidation and forward contract 
                    merchants, commodity brokers, stockbrokers, 
                    financial institutions, financial participants, 
                    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, financial 
participant, 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.''.
    (m) Stockbroker Liquidations.--Title 11, United States 
Code, is amended by inserting after section 752 the following:

``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, financial 
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.''.
    (n) Setoff.--Section 553 of title 11, United States Code, 
is amended--
            (1) in subsection (a)(3)(C), by inserting before 
        the period the following: ``(except for a setoff of a 
        kind described in section 362(b)(6), 362(b)(7), 
        362(b)(17), 362(b)(28), 555, 556, 559, 560, or 561 of 
        this title)''; and
            (2) in subsection (b)(1), by striking 
        ``362(b)(14),'' and inserting ``362(b)(17), 362(b)(28), 
        555, 556, 559, 560, 561''.
    (o) 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 at the 
                end ``, 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''.
    (p) Conforming Amendments.--Title 11, United States Code, 
is amended--
            (1) in the table of sections for chapter 5--
                    (A) by amending the items relating to 
                sections 555 and 556 to read as follows:

``555. Contractual right to liquidate, terminate, or accelerate a 
          securities contract.
``556. Contractual right to liquidate, terminate, or accelerate a 
          commodities contract or forward contract.'';

                and
                    (B) by amending the items relating to 
                sections 559 and 560 to read as follows:

``559. Contractual right to liquidate, terminate, or accelerate a 
          repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap 
          agreement.'';

                and
            (2) in the table of sections for chapter 7--
                    (A) by inserting after the item relating to 
                section 766 the following:

``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.'';

                and
                    (B) by inserting after the item relating to 
                section 752 the following:

``753. Stockbroker liquidation and forward contract merchants, commodity 
          brokers, stockbrokers, financial institutions, securities 
          clearing agencies, swap participants, repo participants, and 
          master netting agreement participants.''.

SEC. 908. 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:
                    ``(H) Recordkeeping requirements.--The 
                Corporation, in consultation with the 
                appropriate Federal banking agencies, may 
                prescribe regulations requiring more detailed 
                recordkeeping with respect to qualified 
                financial contracts (including market 
                valuations) by insured depository 
                institutions.''.

SEC. 909. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION REQUIREMENT.

    Section 13(e)(2) of the Federal Deposit Insurance Act (12 
U.S.C. 1823(e)(2)) is amended to read as follows:
            ``(2) Exemptions from contemporaneous execution 
        requirement.--An agreement to provide for the lawful 
        collateralization of--
                    ``(A) deposits of, or other credit 
                extension by, a Federal, State, or local 
                governmental entity, or of any depositor 
                referred to in section 11(a)(2), including an 
                agreement to provide collateral in lieu of a 
                surety bond;
                    ``(B) bankruptcy estate funds pursuant to 
                section 345(b)(2) of title 11, United States 
                Code;
                    ``(C) extensions of credit, including any 
                overdraft, from a Federal reserve bank or 
                Federal home loan bank; or
                    ``(D) one or more qualified financial 
                contracts, as defined in section 11(e)(8)(D),
        shall not be deemed invalid pursuant to paragraph 
        (1)(B) solely because such agreement was not executed 
        contemporaneously with the acquisition of the 
        collateral or because of pledges, delivery, or 
        substitution of the collateral made in accordance with 
        such agreement.''.

SEC. 910. DAMAGE MEASURE.

    (a) In General.--Title 11, United States Code, is amended--
            (1) by inserting after section 561, as added by 
        this Act, the following:

``Sec. 562. 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), forward contract, 
commodity contract (as defined in section 761), repurchase 
agreement, or master netting agreement pursuant to section 
365(a), or if a forward contract merchant, stockbroker, 
financial institution, securities clearing agency, repo 
participant, financial participant, master netting agreement 
participant, or swap participant liquidates, terminates, or 
accelerates 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.''; and
            (2) in the table of sections for chapter 5, by 
        inserting after the item relating to section 561 (as 
        added by this Act) the following:

``562. Damage measure in connection with swap agreements, securities 
          contracts, forward contracts, commodity contracts, repurchase 
          agreements, or master netting agreements.''.

    (b) Claims Arising From Rejection.--Section 502(g) of title 
11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(g)''; and
            (2) by adding at the end the following:
    ``(2) A claim for damages calculated in accordance with 
section 562 of this title shall be allowed under subsection 
(a), (b), or (c), or disallowed under subsection (d) or (e), as 
if such claim had arisen before the date of the filing of the 
petition.''.

SEC. 911. SIPC STAY.

    Section 5(b)(2) of the Securities Investor Protection Act 
of 1970 (15 U.S.C. 78eee(b)(2)) is amended by adding at the end 
the following new subparagraph:
                    ``(C) Exception from stay.--
                            ``(i) Notwithstanding section 362 
                        of title 11, United States Code, 
                        neither the filing of an application 
                        under subsection (a)(3) nor any order 
                        or decree obtained by SIPC from the 
                        court shall operate as a stay of any 
                        contractual rights of a creditor to 
                        liquidate, terminate, or accelerate a 
                        securities contract, commodity 
                        contract, forward contract, repurchase 
                        agreement, swap agreement, or master 
                        netting agreement, as those terms are 
                        defined in sections 101 and 741 of 
                        title 11, United States Code, to offset 
                        or net termination values, payment 
                        amounts, or other transfer obligations 
                        arising under or in connection with one 
                        or more of such contracts or 
                        agreements, or to foreclose on any cash 
                        collateral pledged by the debtor, 
                        whether or not with respect to one or 
                        more of such contracts or agreements.
                            ``(ii) Notwithstanding clause (i), 
                        such application, order, or decree may 
                        operate as a stay of the foreclosure 
                        on, or disposition of, securities 
                        collateral pledged by the debtor, 
                        whether or not with respect to one or 
                        more of such contracts or agreements, 
                        securities sold by the debtor under a 
                        repurchase agreement, or securities 
                        lent under a securities lending 
                        agreement.
                            ``(iii) As used in this 
                        subparagraph, 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 in writing, arising 
                        under common law, under law merchant, 
                        or by reason of normal business 
                        practice.''.

SEC. 912. ASSET-BACKED SECURITIZATIONS.

    Section 541 of title 11, United States Code, is amended--
            (1) in subsection (b), by inserting after paragraph 
        (7), as added by this Act, the following:
            ``(8) 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);''; and
            (2) by adding at the end the following new 
        subsection:
    ``(f) For purposes of this section--
            ``(1) 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, including, without limitation, all 
        securities issued by governmental units, at least one 
        class or tranche of which was rated investment grade by 
        one or more nationally recognized securities rating 
        organizations, when the securities were initially 
        issued by an issuer;
            ``(2) the term `eligible asset' means--
                    ``(A) financial assets (including interests 
                therein and proceeds thereof), either fixed or 
                revolving, whether or not the same are in 
                existence as of the date of the transfer, 
                including residential and commercial mortgage 
                loans, consumer receivables, trade receivables, 
                assets of governmental units, including payment 
                obligations relating to taxes, receipts, fines, 
                tickets, and other sources of revenue, and 
                lease receivables, that, by their terms, 
                convert into cash within a finite time period, 
                plus any residual interest in property subject 
                to receivables included in such financial 
                assets plus any rights or other assets designed 
                to assure the servicing or timely distribution 
                of proceeds to security holders;
                    ``(B) cash; and
                    ``(C) securities, including without 
                limitation, all securities issued by 
                governmental units;
            ``(3) the term `eligible entity' means--
                    ``(A) an issuer; or
                    ``(B) a trust, corporation, partnership, 
                governmental unit, limited liability company 
                (including a single member limited liability 
                company), 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) 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; and
            ``(5) the term `transferred' means the debtor, 
        under 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)(8) (whether or not reference is made to this title 
        or any section hereof), irrespective and 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. 913. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--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 with respect to cases commenced or 
appointments made under any Federal or State law after the date 
of enactment of this Act, but shall not apply with respect to 
cases commenced or appointments made under any Federal or State 
law before the date of enactment of this Act.

                 TITLE X--PROTECTION OF FAMILY FARMERS

SEC. 1001. PERMANENT REENACTMENT OF CHAPTER 12.

    (a) Reenactment.--
            (1) In general.--Chapter 12 of title 11, United 
        States Code, as reenacted by section 149 of division C 
        of the Omnibus Consolidated and Emergency Supplemental 
        Appropriations Act, 1999 (Public Law 105-277), and 
        amended by this Act, is reenacted.
            (2) Effective date.--Subsection (a) shall take 
        effect on July 1, 2000.
    (b) Conforming Amendment.--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. 1002. 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. 1003. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS.

    (a) Contents of Plan.--Section 1222(a)(2) of title 11, 
United States Code, is amended to read as follows:
            ``(2) provide for the full payment, in deferred 
        cash payments, of all claims entitled to priority under 
        section 507, unless--
                    ``(A) the claim is a claim owed to a 
                governmental unit that arises as a result of 
                the sale, transfer, exchange, or other 
                disposition of any farm asset used in the 
                debtor's farming operation, in which case the 
                claim shall be treated as an unsecured claim 
                that is not entitled to priority under section 
                507, but the debt shall be treated in such 
                manner only if the debtor receives a discharge; 
                or
                    ``(B) the holder of a particular claim 
                agrees to a different treatment of that 
                claim;''.
    (b) Special Notice Provisions.--Section 1231(b) of title 
11, United States Code, as so designated by this Act, is 
amended by striking ``a State or local governmental unit'' and 
inserting ``any governmental unit''.

              TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

SEC. 1101. DEFINITIONS.

    (a) Health Care Business Defined.--Section 101 of title 11, 
United States Code, is amended--
            (1) by redesignating paragraph (27A), as added by 
        this Act, as paragraph (27B); and
            (2) by inserting after paragraph (27) the 
        following:
            ``(27A) `health care business'--
                    ``(A) means any public or private entity 
                (without regard to whether that entity is 
                organized for profit or not for profit) that is 
                primarily engaged in offering to the general 
                public facilities and services for--
                            ``(i) the diagnosis or treatment of 
                        injury, deformity, or disease; and
                            ``(ii) surgical, drug treatment, 
                        psychiatric, or obstetric care; and
                    ``(B) includes--
                            ``(i) any--
                                    ``(I) general or 
                                specialized hospital;
                                    ``(II) ancillary 
                                ambulatory, emergency, or 
                                surgical treatment facility;
                                    ``(III) hospice;
                                    ``(IV) home health agency; 
                                and
                                    ``(V) other health care 
                                institution that is similar to 
                                an entity referred to in 
                                subclause (I), (II), (III), or 
                                (IV); and
                            ``(ii) any long-term care facility, 
                        including any--
                                    ``(I) skilled nursing 
                                facility;
                                    ``(II) intermediate care 
                                facility;
                                    ``(III) assisted living 
                                facility;
                                    ``(IV) home for the aged;
                                    ``(V) domiciliary care 
                                facility; and
                                    ``(VI) health care 
                                institution that is related to 
                                a facility referred to in 
                                subclause (I), (II), (III), 
                                (IV), or (V), if that 
                                institution is primarily 
                                engaged in offering room, 
                                board, laundry, or personal 
                                assistance with activities of 
                                daily living and incidentals to 
                                activities of daily living;''.
    (b) Patient and Patient Records Defined.--Section 101 of 
title 11, United States Code, is amended by inserting after 
paragraph (40) the following:
            ``(40A) `patient' means any person who obtains or 
        receives services from a health care business;
            ``(40B) `patient records' means any written 
        document relating to a patient or a record recorded in 
        a magnetic, optical, or other form of electronic 
        medium;''.
    (c) Rule of Construction.--The amendments made by 
subsection (a) of this section shall not affect the 
interpretation of section 109(b) of title 11, United States 
Code.

SEC. 1102. DISPOSAL OF PATIENT RECORDS.

    (a) In General.--Subchapter III of chapter 3 of title 11, 
United States Code, is amended by adding at the end the 
following:

``Sec. 351. Disposal of patient records

    ``If a health care business commences a case under chapter 
7, 9, or 11, and the trustee does not have a sufficient amount 
of funds to pay for the storage of patient records in the 
manner required under applicable Federal or State law, the 
following requirements shall apply:
            ``(1) The trustee shall--
                    ``(A) promptly publish notice, in 1 or more 
                appropriate newspapers, that if patient records 
                are not claimed by the patient or an insurance 
                provider (if applicable law permits the 
                insurance provider to make that claim) by the 
                date that is 365 days after the date of that 
                notification, the trustee will destroy the 
                patient records; and
                    ``(B) during the first 180 days of the 365-
                day period described in subparagraph (A), 
                promptly attempt to notify directly each 
                patient that is the subject of the patient 
                records and appropriate insurance carrier 
                concerning the patient records by mailing to 
                the last known address of that patient, or a 
                family member or contact person for that 
                patient, and to the appropriate insurance 
                carrier an appropriate notice regarding the 
                claiming or disposing of patient records.
            ``(2) If, after providing the notification under 
        paragraph (1), patient records are not claimed during 
        the 365-day period described under that paragraph, the 
        trustee shall mail, by certified mail, at the end of 
        such 365-day period a written request to each 
        appropriate Federal agency to request permission from 
        that agency to deposit the patient records with that 
        agency, except that no Federal agency is required to 
        accept patient records under this paragraph.
            ``(3) If, following the 365-day period described in 
        paragraph (2) and after providing the notification 
        under paragraph (1), patient records are not claimed by 
        a patient or insurance provider, or request is not 
        granted by a Federal agency to deposit such records 
        with that agency, the trustee shall destroy those 
        records by--
                    ``(A) if the records are written, shredding 
                or burning the records; or
                    ``(B) if the records are magnetic, optical, 
                or other electronic records, by otherwise 
                destroying those records so that those records 
                cannot be retrieved.''.
    (b) Clerical Amendment.--The table of sections for chapter 
3 of title 11, United States Code, is amended by inserting 
after the item relating to section 350 the following:

``351. Disposal of patient records.''.

SEC. 1103. ADMINISTRATIVE EXPENSE CLAIM FOR COSTS OF CLOSING A HEALTH 
                    CARE BUSINESS AND OTHER ADMINISTRATIVE EXPENSES.

    Section 503(b) of title 11, United States Code, as amended 
by this Act, is amended by adding at the end the following:
            ``(8) the actual, necessary costs and expenses of 
        closing a health care business incurred by a trustee or 
        by a Federal agency (as that term is defined in section 
        551(1) of title 5) or a department or agency of a State 
        or political subdivision thereof, including any cost or 
        expense incurred--
                    ``(A) in disposing of patient records in 
                accordance with section 351; or
                    ``(B) in connection with transferring 
                patients from the health care business that is 
                in the process of being closed to another 
                health care business;
            ``(9) with respect to a nonresidential real 
        property lease previously assumed under section 365, 
        and subsequently rejected, a sum equal to all monetary 
        obligations due, excluding those arising from or 
        related to a failure to operate or penalty provisions, 
        for the period of 2 years following the later of the 
        rejection date or date of actual turnover of the 
        premises, without reduction or setoff for any reason 
        whatsoever except for sums actually received or to be 
        received from a nondebtor, and the claim for remaining 
        sums due for the balance of the term of the lease shall 
        be a claim under section 502(b)(6); and''.

SEC. 1104. APPOINTMENT OF OMBUDSMAN TO ACT AS PATIENT ADVOCATE.

    (a) In General.--
            (1) Appointment of ombudsman.--Subchapter II of 
        chapter 3 of title 11, United States Code, is amended 
        by inserting after section 331 the following:

``Sec. 332. Appointment of ombudsman

    ``(a) In General.--
            ``(1) Authority to appoint.--Not later than 30 days 
        after a case is commenced by a health care business 
        under chapter 7, 9, or 11, the court shall order the 
        appointment of an ombudsman to monitor the quality of 
        patient care to represent the interests of the patients 
        of the health care business, unless the court finds 
        that the appointment of the ombudsman is not necessary 
        for the protection of patients under the specific facts 
        of the case.
            ``(2) Qualifications.--If the court orders the 
        appointment of an ombudsman, the United States trustee 
        shall appoint 1 disinterested person, other than the 
        United States trustee, to serve as an ombudsman, 
        including a person who is serving as a State Long-Term 
        Care Ombudsman appointed under title III or VII of the 
        Older Americans Act of 1965 (42 U.S.C. 3021 et seq., 
        3058 et seq.).
    ``(b) Duties.--An ombudsman appointed under subsection (a) 
shall--
            ``(1) monitor the quality of patient care, to the 
        extent necessary under the circumstances, including 
        interviewing patients and physicians;
            ``(2) not later than 60 days after the date of 
        appointment, and not less frequently than every 60 days 
        thereafter, report to the court, at a hearing or in 
        writing, regarding the quality of patient care at the 
        health care business involved; and
            ``(3) if the ombudsman determines that the quality 
        of patient care is declining significantly or is 
        otherwise being materially compromised, notify the 
        court by motion or written report, with notice to 
        appropriate parties in interest, immediately upon 
        making that determination.
    ``(c) Confidentiality.--An ombudsman shall maintain any 
information obtained by the ombudsman under this section that 
relates to patients (including information relating to patient 
records) as confidential information. The ombudsman may not 
review confidential patient records, unless the court provides 
prior approval, with restrictions on the ombudsman to protect 
the confidentiality of patient records.''.
            (2) Clerical amendment.--The table of sections for 
        chapter 3 of title 11, United States Code, is amended 
        by inserting after the item relating to section 331 the 
        following:

``332. Appointment of ombudsman.''.

    (b) Compensation of Ombudsman.--Section 330(a)(1) of title 
11, United States Code, is amended--
            (1) in the matter proceeding subparagraph (A), by 
        inserting ``an ombudsman appointed under section 331, 
        or'' before ``a professional person''; and
            (2) in subparagraph (A), by inserting 
        ``ombudsman,'' before ``professional person''.

SEC. 1105. DEBTOR IN POSSESSION; DUTY OF TRUSTEE TO TRANSFER PATIENTS.

    (a) In General.--Section 704(a) of title 11, United States 
Code, as amended by this Act, is amended by adding at the end 
the following:
            ``(11) use all reasonable and best efforts to 
        transfer patients from a health care business that is 
        in the process of being closed to an appropriate health 
        care business that--
                    ``(A) is in the vicinity of the health care 
                business that is closing;
                    ``(B) provides the patient with services 
                that are substantially similar to those 
                provided by the health care business that is in 
                the process of being closed; and
                    ``(C) maintains a reasonable quality of 
                care.''.
    (b) Conforming Amendment.--Section 1106(a)(1) of title 11, 
United States Code, is amended by striking ``sections 704(2), 
704(5), 704(7), 704(8), and 704(9)'' and inserting ``paragraphs 
(2), (5), (7), (8), (9), and (11) of section 704(a)''.

SEC. 1106. EXCLUSION FROM PROGRAM PARTICIPATION NOT SUBJECT TO 
                    AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, is amended 
by inserting after paragraph (28), as added by this Act, the 
following:
            ``(29) under subsection (a), of the exclusion by 
        the Secretary of Health and Human Services of the 
        debtor from participation in the medicare program or 
        any other Federal health care program (as defined in 
        section 1128B(f) of the Social Security Act (42 U.S.C. 
        1320a-7b(f)) pursuant to title XI of such Act (42 
        U.S.C. 1301 et seq.) or title XVIII of such Act (42 
        U.S.C. 1395 et seq.).''.

                    TITLE XII--TECHNICAL AMENDMENTS

SEC. 1201. DEFINITIONS.

    Section 101 of title 11, United States Code, as amended by 
this Act, is amended--
            (1) by striking ``In this title--'' and inserting 
        ``In this title the following definitions shall 
        apply:'';
            (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 striking paragraph (54) and inserting the 
        following:
            ``(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.''; 
                        and
            (7) in each of paragraphs (1) through (35), in each 
        of paragraphs (36) and (37), and in each of paragraphs 
        (40) through (55), by striking the semicolon at the end 
        and inserting a period.

SEC. 1202. ADJUSTMENT OF DOLLAR AMOUNTS.

    Section 104 of title 11, United States Code, as amended by 
section 322 of this Act, is amended by inserting ``522(f)(3),'' 
after ``522(d),'' each place it appears.

SEC. 1203. 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. 1204. TECHNICAL AMENDMENTS.

    Title 11, United States Code, is amended--
            (1) in section 109(b)(2), by striking ``subsection 
        (c) or (d) of''; and
            (2) in section 552(b)(1), by striking ``product'' 
        each place it appears and inserting ``products''.

SEC. 1205. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE 
                    BANKRUPTCY PETITIONS.

    Section 110(j)(4) of title 11, United States Code, as so 
designated by this Act, is amended by striking ``attorney's'' 
and inserting ``attorneys' ''.

SEC. 1206. 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. 1207. 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. 1208. 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. 1209. EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, as amended by 
this Act, is amended--
            (1) by transferring paragraph (15), as added by 
        section 304(e) of Public Law 103-394 (108 Stat. 4133), 
        so as to insert such paragraph after subsection 
        (a)(14);
            (2) in subsection (a)(9), by striking ``motor 
        vehicle'' and inserting ``motor vehicle, vessel, or 
        aircraft''; and
            (3) in subsection (e), by striking ``a insured'' 
        and inserting ``an insured''.

SEC. 1210. 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), or that''.

SEC. 1211. 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. 1212. 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. 1213. PREFERENCES.

    (a) In General.--Section 547 of title 11, United States 
Code, as amended by this Act, is amended--
            (1) in subsection (b), by striking ``subsection 
        (c)'' and inserting ``subsections (c) and (i)''; and
            (2) by adding at the end the following:
    ``(i) If the trustee avoids under subsection (b) a transfer 
made 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 
transfer shall be considered to be avoided under this section 
only with respect to the creditor that is an insider.''.
    (b) Applicability.--The amendments made by this section 
shall apply to any case that is pending or commenced on or 
after the date of enactment of this Act.

SEC. 1214. POSTPETITION TRANSACTIONS.

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

SEC. 1215. DISPOSITION OF PROPERTY OF THE ESTATE.

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

SEC. 1216. GENERAL PROVISIONS.

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

SEC. 1217. 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. 1218. 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. 1219. 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. 1220. 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. 1221. 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. 1222. TRANSFERS MADE BY NONPROFIT CHARITABLE CORPORATIONS.

    (a) Sale of Property of Estate.--Section 363(d) of title 
11, United States Code, is amended 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, as amended by this 
Act, is amended by adding at the end the following:
            ``(16) 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, as amended by this Act, is amended by adding at 
the end the following:
    ``(g) 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, or filed under that 
title on or after that date of enactment, except that the court 
shall not confirm a plan under chapter 11 of title 11, United 
States Code, 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.
    (e) Rule of Construction.--Nothing in this section shall be 
construed to require the court in which a case under chapter 11 
of title 11, United States Code, is pending to remand or refer 
any proceeding, issue, or controversy to any other court or to 
require the approval of any other court for the transfer of 
property.

SEC. 1223. PROTECTION OF VALID PURCHASE MONEY SECURITY INTERESTS.

    Section 547(c)(3)(B) of title 11, United States Code, is 
amended by striking ``20'' and inserting ``30''.

SEC. 1224. 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. 1225. BANKRUPTCY JUDGESHIPS.

    (a) Short Title.--This section may be cited as the 
``Bankruptcy Judgeship Act of 2000''.
    (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 district of Delaware.
                    (D) Two additional bankruptcy judgeships 
                for the southern district of Florida.
                    (E) One additional bankruptcy judgeship for 
                the southern district of Georgia.
                    (F) Two additional bankruptcy judgeships 
                for the district of Maryland.
                    (G) One additional bankruptcy judgeship for 
                the eastern district of Michigan.
                    (H) One additional bankruptcy judgeship for 
                the southern district of Mississippi.
                    (I) One additional bankruptcy judgeship for 
                the district of New Jersey.
                    (J) One additional bankruptcy judgeship for 
                the eastern district of New York.
                    (K) One additional bankruptcy judgeship for 
                the northern district of New York.
                    (L) One additional bankruptcy judgeship for 
                the southern district of New York.
                    (M) One additional bankruptcy judgeship for 
                the eastern district of North Carolina.
                    (N) One additional bankruptcy judgeship for 
                the eastern district of Pennsylvania.
                    (O) One additional bankruptcy judgeship for 
                the middle district of Pennsylvania.
                    (P) One additional bankruptcy judgeship for 
                the district of Puerto Rico.
                    (Q) One additional bankruptcy judgeship for 
                the western district of Tennessee.
                    (R) 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) shall not be 
        filled if the vacancy--
                    (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).
    (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 paragraphs (1), 
        (3), (7), (8), and (9) of section 3(a) 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 (28 U.S.C. 152 note) remain applicable to 
        temporary judgeship positions referred to in this 
        subsection.
    (d) Technical Amendments.--Section 152(a) of title 28, 
United States Code, is amended--
            (1) in paragraph (1), by striking the first 
        sentence and inserting the following: ``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.''; and
            (2) in paragraph (2)--
                    (A) in the item relating to the middle 
                district of Georgia, by striking ``2'' and 
                inserting ``3''; and
                    (B) in the collective item relating to the 
                middle and southern districts of Georgia, by 
                striking ``Middle and Southern . . . . . . 1''.
    (e) Effective Date.--The amendments made by this section 
shall take effect on the date of enactment of this Act.

SEC. 1226. COMPENSATING TRUSTEES.

    Section 1326 of title 11, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``and'';
                    (B) in paragraph (2), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) if a chapter 7 trustee has been allowed 
        compensation due to the conversion or dismissal of the 
        debtor's prior case pursuant to section 707(b), and 
        some portion of that compensation remains unpaid in a 
        case converted to this chapter or in the case dismissed 
        under section 707(b) and refiled under this chapter, 
        the amount of any such unpaid compensation, which shall 
        be paid monthly--
                    ``(A) by prorating such amount over the 
                remaining duration of the plan; and
                    ``(B) by monthly payments not to exceed the 
                greater of--
                            ``(i) $25; or
                            ``(ii) the amount payable to 
                        unsecured nonpriority creditors, as 
                        provided by the plan, multiplied by 5 
                        percent, and the result divided by the 
                        number of months in the plan.''; and
            (2) by adding at the end the following:
    ``(d) Notwithstanding any other provision of this title--
            ``(1) compensation referred to in subsection (b)(3) 
        is payable and may be collected by the trustee under 
        that paragraph, even if such amount has been discharged 
        in a prior proceeding under this title; and
            ``(2) such compensation is payable in a case under 
        this chapter only to the extent permitted by subsection 
        (b)(3).''.

SEC. 1227. AMENDMENT TO SECTION 362 OF TITLE 11, UNITED STATES CODE.

    Section 362(b)(18) of title 11, United States Code, is 
amended to read as follows:
            ``(18) under subsection (a) of the creation or 
        perfection of a statutory lien for an ad valorem 
        property tax, or a special tax or special assessment on 
        real property whether or not ad valorem, imposed by a 
        governmental unit, if such tax or assessment comes due 
        after the filing of the petition;''.

SEC. 1228. JUDICIAL EDUCATION.

    The Director of the Federal Judicial Center, in 
consultation with the Director of the Executive Office for 
United States Trustees, shall develop materials and conduct 
such training as may be useful to courts in implementing this 
Act and the amendments made by this Act, including the 
requirements relating to the means test and reaffirmations 
under section 707(b) of title 11, United States Code, as 
amended by this Act.

SEC. 1229. RECLAMATION.

    (a) Rights and Powers of the Trustee.--Section 546(c) of 
title 11, United States Code, is amended to read as follows:
    ``(c)(1) Except as provided in subsection (d) of this 
section and subsection (c) of section 507, and subject to the 
prior rights of holders of security interests in such goods or 
the proceeds thereof, the rights and powers of the trustee 
under sections 544(a), 545, 547, and 549 are subject to the 
right of a seller of goods that has sold goods to the debtor, 
in the ordinary course of such seller's business, to reclaim 
such goods if the debtor has received such goods while 
insolvent, not later than 45 days after the date of the 
commencement of a case under this title, but such seller may 
not reclaim such goods unless such seller demands in writing 
reclamation of such goods--
            ``(A) not later than 45 days after the date of 
        receipt of such goods by the debtor; or
            ``(B) not later than 20 days after the date of 
        commencement of the case, if the 45-day period expires 
        after the commencement of the case.
    ``(2) If a seller of goods fails to provide notice in the 
manner described in paragraph (1), the seller still may assert 
the rights contained in section 503(b)(7).''.
    (b) Administrative Expenses.--Section 503(b) of title 11, 
United States Code, as amended by this Act, is amended by 
adding at the end the following:
            ``(10) the value of any goods received by the 
        debtor not later than 20 days after the date of 
        commencement of a case under this title in which the 
        goods have been sold to the debtor in the ordinary 
        course of such debtor's business.''.

SEC. 1230. PROVIDING REQUESTED TAX DOCUMENTS TO THE COURT.

    (a) Chapter 7 Cases.--The court shall not grant a discharge 
in the case of an individual seeking bankruptcy under chapter 7 
of title 11, United States Code, unless requested tax documents 
have been provided to the court.
    (b) Chapter 11 and Chapter 13 Cases.--The court shall not 
confirm a plan of reorganization in the case of an individual 
under chapter 11 or 13 of title 11, United States Code, unless 
requested tax documents have been filed with the court.
    (c) Document Retention.--The court shall destroy documents 
submitted in support of a bankruptcy claim not sooner than 3 
years after the date of the conclusion of a bankruptcy case 
filed by an individual under chapter 7, 11, or 13 of title 11, 
United States Code. In the event of a pending audit or 
enforcement action, the court may extend the time for 
destruction of such requested tax documents.

SEC. 1231. 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 12 months after 
the date of enactment of this Act, the Board--
            (1) shall make public a report on its findings with 
        respect to the indiscriminate solicitation and 
        extension of credit by the credit industry;
            (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. 1232. PROPERTY NO LONGER SUBJECT TO REDEMPTION.

    Section 541(b) of title 11, United States Code, is amended 
by inserting after paragraph (8), as added by this Act, the 
following:
            ``(9) subject to subchapter III of chapter 5, any 
        interest of the debtor in property where the debtor 
        pledged or sold tangible personal property (other than 
        securities or written or printed evidences of 
        indebtedness or title) as collateral for a loan or 
        advance of money given by a person licensed under law 
        to make such loans or advances, where--
                    ``(A) the tangible personal property is in 
                the possession of the pledgee or transferee;
                    ``(B) the debtor has no obligation to repay 
                the money, redeem the collateral, or buy back 
                the property at a stipulated price; and
                    ``(C) neither the debtor nor the trustee 
                have exercised any right to redeem provided 
                under the contract or State law, in a timely 
                manner as provided under State law and section 
                108(b) of this title; or''.

SEC. 1233. TRUSTEES.

    (a) Suspension and Termination of Panel Trustees and 
Standing Trustees.--Section 586(d) of title 28, United States 
Code, is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following:
    ``(2) A trustee whose appointment under subsection (a)(1) 
or under subsection (b) is terminated or who ceases to be 
assigned to cases filed under title 11, United States Code, may 
obtain judicial review of the final agency decision by 
commencing an action in the United States district court for 
the district for which the panel to which the trustee is 
appointed under subsection (a)(1), or in the United States 
district court for the district in which the trustee is 
appointed under subsection (b) resides, after first exhausting 
all available administrative remedies, which if the trustee so 
elects, shall also include an administrative hearing on the 
record. Unless the trustee elects to have an administrative 
hearing on the record, the trustee shall be deemed to have 
exhausted all administrative remedies for purposes of this 
paragraph if the agency fails to make a final agency decision 
within 90 days after the trustee requests administrative 
remedies. The Attorney General shall prescribe procedures to 
implement this paragraph. The decision of the agency shall be 
affirmed by the district court unless it is unreasonable and 
without cause based on the administrative record before the 
agency.''.
    (b) Expenses of Standing Trustees.--Section 586(e) of title 
28, United States Code, is amended by adding at the end the 
following:
    ``(3) After first exhausting all available administrative 
remedies, an individual appointed under subsection (b) may 
obtain judicial review of final agency action to deny a claim 
of actual, necessary expenses under this subsection by 
commencing an action in the United States district court in the 
district where the individual resides. The decision of the 
agency shall be affirmed by the district court unless it is 
unreasonable and without cause based upon the administrative 
record before the agency.
    ``(4) The Attorney General shall prescribe procedures to 
implement this subsection.''.

SEC. 1234. BANKRUPTCY FORMS.

    Section 2075 of title 28, United States Code, is amended by 
adding at the end the following:
``The bankruptcy rules promulgated under this section shall 
prescribe a form for the statement required under section 
707(b)(2)(C) of title 11 and may provide general rules on the 
content of such statement.''.

SEC. 1235. EXPEDITED APPEALS OF BANKRUPTCY CASES TO COURTS OF APPEALS.

    (a) In General.--Section 158 of title 28, United States 
Code, is amended--
            (1) by striking subsection (d) and inserting the 
        following:
    ``(d)(1) In a case in which the appeal is heard by the 
district court, the judgment, decision, order, or decree of the 
bankruptcy judge shall be deemed a judgment, decision, order, 
or decree of the district court entered 31 days after such 
appeal is filed with the district court, unless not later than 
30 days after such appeal is filed with the district court--
            ``(A) the district court--
                    ``(i) files a decision on the appeal from 
                the judgment, decision, order, or decree of the 
                bankruptcy judge; or
                    ``(ii) enters an order extending such 30-
                day period for cause upon motion of a party or 
                upon the court's own motion; or
            ``(B) all parties to the appeal file written 
        consent that the district court may retain such appeal 
        until it enters a decision.
    ``(2) For the purpose of this subsection, an appeal shall 
be considered filed with the district court on the date on 
which the notice of appeal is filed, except that in a case in 
which the appeal is heard by the district court because a party 
has made an election under subsection (c)(1)(B), the appeal 
shall be considered filed with the district court on the date 
on which such election is made.
    ``(e) The courts of appeals shall have jurisdiction of 
appeals from--
            ``(1) all final judgments, decisions, orders, and 
        decrees of district courts entered under subsection 
        (a);
            ``(2) all final judgments, decisions, orders, and 
        decrees of bankruptcy appellate panels entered under 
        subsection (b); and
            ``(3) all judgments, decisions, orders, and decrees 
        of district courts entered under subsection (d) to the 
        extent that such judgments, decisions, orders, and 
        decrees would be reviewable by a district court under 
        subsection (a).
    ``(f) In accordance with rules prescribed by the Supreme 
Court of the United States under sections 2072 through 2077, 
the court of appeals may, in its discretion, exercise 
jurisdiction over an appeal from an interlocutory judgment, 
decision, order, or decree under subsection (e)(3).''.
    (b) Technical and Conforming Amendments.--
            (1) Section 305(c) of title 11, United States Code, 
        is amended by striking ``section 158(d)'' and inserting 
        ``subsection (e) or (f) of section 158''.
            (2) Section 1334(d) of title 28, United States 
        Code, is amended by striking ``section 158(d)'' and 
        inserting ``subsection (e) or (f) of section 158''.
            (3) Section 1452(b) of title 28, United States 
        Code, is amended by striking ``section 158(d)'' and 
        inserting ``subsection (e) or (f) of section 158''.

SEC. 1236. EXEMPTIONS.

    Section 522(g)(2) of title 11, United States Code, is 
amended by striking ``subsection (f)(2)'' and inserting 
``subsection (f)(1)(B)''.

                 TITLE XIII--CONSUMER CREDIT DISCLOSURE

SEC. 1301. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.

    (a) Minimum Payment Disclosures.--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 the case of an open end credit plan 
        that requires a minimum monthly payment of not more 
        than 4 percent of the balance on which finance charges 
        are accruing, the following statement, located on the 
        front of the billing statement, disclosed clearly and 
        conspicuously: `Minimum Payment Warning: Making only 
        the minimum payment will increase the interest you pay 
        and the time it takes to repay your balance. For 
        example, making only the typical 2% minimum monthly 
        payment on a balance of $1,000 at an interest rate of 
        17% would take 88 months to repay the balance in full. 
        For an estimate of the time it would take to repay your 
        balance, making only minimum payments, call this toll-
        free number: ____________.' (the blank space to be 
        filled in by the creditor).
            ``(B) In the case of an open end credit plan that 
        requires a minimum monthly payment of more than 4 
        percent of the balance on which finance charges are 
        accruing, the following statement, in a prominent 
        location on the front of the billing statement, 
        disclosed clearly and conspicuously: `Minimum Payment 
        Warning: Making only the required minimum payment will 
        increase the interest you pay and the time it takes to 
        repay your balance. Making a typical 5% minimum monthly 
        payment on a balance of $300 at an interest rate of 17% 
        would take 24 months to repay the balance in full. For 
        an estimate of the time it would take to repay your 
        balance, making only minimum monthly payments, call 
        this toll-free number: ____________.' (the blank space 
        to be filled in by the creditor).
            ``(C) Notwithstanding subparagraphs (A) and (B), in 
        the case of a creditor with respect to which compliance 
        with this title is enforced by the Federal Trade 
        Commission, the following statement, in a prominent 
        location on the front of the billing statement, 
        disclosed clearly and conspicuously: `Minimum Payment 
        Warning: Making only the required minimum payment will 
        increase the interest you pay and the time it takes to 
        repay your balance. For example, making only the 
        typical 5% minimum monthly payment on a balance of $300 
        at an interest rate of 17% would take 24 months to 
        repay the balance in full. For an estimate of the time 
        it would take to repay your balance, making only 
        minimum monthly payments, call the Federal Trade 
        Commission at this toll-free number: ____________.' 
        (the blank space to be filled in by the creditor). A 
        creditor who is subject to this subparagraph shall not 
        be subject to subparagraph (A) or (B).
            ``(D) Notwithstanding subparagraph (A), (B), or 
        (C), in complying with any such subparagraph, a 
        creditor may substitute an example based on an interest 
        rate that is greater than 17 percent. Any creditor that 
        is subject to subparagraph (B) may elect to provide the 
        disclosure required under subparagraph (A) in lieu of 
        the disclosure required under subparagraph (B).
            ``(E) The Board shall, by rule, periodically 
        recalculate, as necessary, the interest rate and 
        repayment period under subparagraphs (A), (B), and (C).
            ``(F)(i) The toll-free telephone number disclosed 
        by a creditor or the Federal Trade Commission under 
        subparagraph (A), (B), or (G), as appropriate, may be a 
        toll-free telephone number established and maintained 
        by the creditor or the Federal Trade Commission, as 
        appropriate, or may be a toll-free telephone number 
        established and maintained by a third party for use by 
        the creditor or multiple creditors or the Federal Trade 
        Commission, as appropriate. The toll-free telephone 
        number may connect consumers to an automated device 
        through which consumers may obtain information 
        described in subparagraph (A), (B), or (C), by 
        inputting information using a touch-tone telephone or 
        similar device, if consumers whose telephones are not 
        equipped to use such automated device are provided the 
        opportunity to be connected to an individual from whom 
        the information described in subparagraph (A), (B), or 
        (C), as applicable, may be obtained. A person that 
        receives a request for information described in 
        subparagraph (A), (B), or (C) from an obligor through 
        the toll-free telephone number disclosed under 
        subparagraph (A), (B), or (C), as applicable, shall 
        disclose in response to such request only the 
        information set forth in the table promulgated by the 
        Board under subparagraph (H)(i).
            ``(ii)(I) The Board shall establish and maintain 
        for a period not to exceed 24 months following the 
        effective date of the Bankruptcy Reform Act of 2000, a 
        toll-free telephone number, or provide a toll-free 
        telephone number established and maintained by a third 
        party, for use by creditors that are depository 
        institutions (as defined in section 3 of the Federal 
        Deposit Insurance Act), including a Federal credit 
        union or State credit union (as defined in section 101 
        of the Federal Credit Union Act (12 U.S.C. 1752)), with 
        total assets not exceeding $250,000,000. The toll-free 
        telephone number may connect consumers to an automated 
        device through which consumers may obtain information 
        described in subparagraph (A) or (B), as applicable, by 
        inputting information using a touch-tone telephone or 
        similar device, if consumers whose telephones are not 
        equipped to use such automated device are provided the 
        opportunity to be connected to an individual from whom 
        the information described in subparagraph (A) or (B), 
        as applicable, may be obtained. A person that receives 
        a request for information described in subparagraph (A) 
        or (B) from an obligor through the toll-free telephone 
        number disclosed under subparagraph (A) or (B), as 
        applicable, shall disclose in response to such request 
        only the information set forth in the table promulgated 
        by the Board under subparagraph (H)(i). The dollar 
        amount contained in this subclause shall be adjusted 
        according to an indexing mechanism established by the 
        Board.
            ``(II) Not later than 6 months prior to the 
        expiration of the 24-month period referenced in 
        subclause (I), the Board shall submit to the Committee 
        on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Banking and Financial Services of 
        the House of Representatives a report on the program 
        described in subclause (I).
            ``(G) The Federal Trade Commission shall establish 
        and maintain a toll-free number for the purpose of 
        providing to consumers the information required to be 
        disclosed under subparagraph (C).
            ``(H) The Board shall--
                    ``(i) establish a detailed table 
                illustrating the approximate number of months 
                that it would take to repay an outstanding 
                balance if a consumer pays only the required 
                minimum monthly payments and if no other 
                advances are made, which table shall clearly 
                present standardized information to be used to 
                disclose the information required to be 
                disclosed under subparagraph (A), (B), or (C), 
                as applicable;
                    ``(ii) establish the table required under 
                clause (i) by assuming--
                            ``(I) a significant number of 
                        different annual percentage rates;
                            ``(II) a significant number of 
                        different account balances;
                            ``(III) a significant number of 
                        different minimum payment amounts; and
                            ``(IV) that only minimum monthly 
                        payments are made and no additional 
                        extensions of credit are obtained; and
                    ``(iii) promulgate regulations that provide 
                instructional guidance regarding the manner in 
                which the information contained in the table 
                established under clause (i) should be used in 
                responding to the request of an obligor for any 
                information required to be disclosed under 
                subparagraph (A), (B), or (C).
            ``(I) The disclosure requirements of this paragraph 
        do not apply to any charge card account, the primary 
        purpose of which is to require payment of charges in 
        full each month.
            ``(J) A creditor that maintains a toll-free 
        telephone number for the purpose of providing customers 
        with the actual number of months that it will take to 
        repay the customer's outstanding balance is not subject 
        to the requirements of subparagraph (A) or (B).
            ``(K) A creditor that maintains a toll-free 
        telephone number for the purpose of providing customers 
        with the actual number of months that it will take to 
        repay an outstanding balance shall include the 
        following statement on each billing statement: `Making 
        only the minimum payment will increase the interest you 
        pay and the time it takes to repay your balance. For 
        more information, call this toll-free number: 
        ________.' (the blank space to be filled in by the 
        creditor).''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board of Governors of the 
        Federal Reserve System (hereafter in this title 
        referred to as the ``Board'') shall promulgate 
        regulations implementing the requirements of section 
        127(b)(11) of the Truth in Lending Act, as added by 
        subsection (a) of this section.
            (2) Effective date.--Section 127(b)(11) of the 
        Truth in Lending Act, as added by subsection (a) of 
        this section, and the regulations issued under 
        paragraph (1) of this subsection shall not take effect 
        until the later of--
                    (A) 18 months after the date of enactment 
                of this Act; or
                    (B) 12 months after the publication of such 
                final regulations by the Board.
    (c) Study of Financial Disclosures.--
            (1) In general.--The Board may conduct a study to 
        determine the types of information available to 
        potential borrowers from consumer credit lending 
        institutions regarding factors qualifying potential 
        borrowers for credit, repayment requirements, and the 
        consequences of default.
            (2) Factors for consideration.--In conducting a 
        study under paragraph (1), the Board should, in 
        consultation with the other Federal banking agencies 
        (as defined in section 3 of the Federal Deposit 
        Insurance Act), the National Credit Union 
        Administration, and the Federal Trade Commission, 
        consider the extent to which--
                    (A) consumers, in establishing new credit 
                arrangements, are aware of their existing 
                payment obligations, the need to consider those 
                obligations in deciding to take on new credit, 
                and how taking on excessive credit can result 
                in financial difficulty;
                    (B) minimum periodic payment features 
                offered in connection with open end credit 
                plans impact consumer default rates;
                    (C) consumers make only the required 
                minimum payment under open end credit plans;
                    (D) consumers are aware that making only 
                required minimum payments will increase the 
                cost and repayment period of an open end credit 
                obligation; and
                    (E) the availability of low minimum payment 
                options is a cause of consumers experiencing 
                financial difficulty.
            (3) Report to congress.--Findings of the Board in 
        connection with any study conducted under this 
        subsection shall be submitted to Congress. Such report 
        shall also include recommendations for legislative 
        initiatives, if any, of the Board, based on its 
        findings.

SEC. 1302. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED BY A 
                    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 
                adviser.--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 (as 
                defined under the Internal Revenue Code of 
                1986) 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, and which advertisement 
        is disseminated in paper form to the public or through 
        the Internet, as opposed to by radio or television, 
        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 should consult a tax 
                adviser 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 
                adviser 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, and 
which advertisement is disseminated in paper form to the public 
or through the Internet, as opposed to by radio or television, 
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 should consult a tax adviser for 
        further information regarding the deductibility of 
        interest and charges.''.
    (c) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate 
        regulations implementing the amendments made by this 
        section.
            (2) Effective date.--Regulations issued under 
        paragraph (1) shall not take effect until the later 
        of--
                    (A) 12 months after the date of enactment 
                of this Act; or
                    (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1303. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.

    (a) Introductory Rate Disclosures.--Section 127(c) of the 
Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding 
at the end the following:
            ``(6) Additional notice concerning `introductory 
        rates'.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an application or 
                solicitation to open a credit card account and 
                all promotional materials accompanying such 
                application or solicitation for which a 
                disclosure is required under paragraph (1), and 
                that offers a temporary annual percentage rate 
                of interest, shall--
                            ``(i) use the term `introductory' 
                        in immediate proximity to each listing 
                        of the temporary annual percentage rate 
                        applicable to such account, which term 
                        shall appear clearly and conspicuously;
                            ``(ii) if the annual percentage 
                        rate of interest that will apply after 
                        the end of the temporary rate period 
                        will be a fixed rate, state in a clear 
                        and conspicuous manner in a prominent 
                        location closely proximate to the first 
                        listing of the temporary annual 
                        percentage rate (other than a listing 
                        of the temporary annual percentage rate 
                        in the tabular format described in 
                        section 122(c)), the time period in 
                        which the introductory period will end 
                        and the annual percentage rate that 
                        will apply after the end of the 
                        introductory period; and
                            ``(iii) if the annual percentage 
                        rate that will apply after the end of 
                        the temporary rate period will vary in 
                        accordance with an index, state in a 
                        clear and conspicuous manner in a 
                        prominent location closely proximate to 
                        the first listing of the temporary 
                        annual percentage rate (other than a 
                        listing in the tabular format 
                        prescribed by section 122(c)), the time 
                        period in which the introductory period 
                        will end and the rate that will apply 
                        after that, based on an annual 
                        percentage rate that was in effect 
                        within 60 days before the date of 
                        mailing the application or 
                        solicitation.
                    ``(B) Exception.--Clauses (ii) and (iii) of 
                subparagraph (A) do not apply with respect to 
                any listing of a temporary annual percentage 
                rate on an envelope or other enclosure in which 
                an application or solicitation to open a credit 
                card account is mailed.
                    ``(C) Conditions for introductory rates.--
                An application or solicitation to open a credit 
                card account for which a disclosure is required 
                under paragraph (1), and that offers a 
                temporary annual percentage rate of interest 
                shall, if that rate of interest is revocable 
                under any circumstance or upon any event, 
                clearly and conspicuously disclose, in a 
                prominent manner on or with such application or 
                solicitation--
                            ``(i) a general description of the 
                        circumstances that may result in the 
                        revocation of the temporary annual 
                        percentage rate; and
                            ``(ii) if the annual percentage 
                        rate that will apply upon the 
                        revocation of the temporary annual 
                        percentage rate--
                                    ``(I) will be a fixed rate, 
                                the annual percentage rate that 
                                will apply upon the revocation 
                                of the temporary annual 
                                percentage rate; or
                                    ``(II) will vary in 
                                accordance with an index, the 
                                rate that will apply after the 
                                temporary rate, based on an 
                                annual percentage rate that was 
                                in effect within 60 days before 
                                the date of mailing the 
                                application or solicitation.
                    ``(D) Definitions.--In this paragraph--
                            ``(i) the terms `temporary annual 
                        percentage rate of interest' and 
                        `temporary annual percentage rate' mean 
                        any rate of interest applicable to a 
                        credit card account for an introductory 
                        period of less than 1 year, if that 
                        rate is less than an annual percentage 
                        rate that was in effect within 60 days 
                        before the date of mailing the 
                        application or solicitation; and
                            ``(ii) the term `introductory 
                        period' means the maximum time period 
                        for which the temporary annual 
                        percentage rate may be applicable.
                    ``(E) Relation to other disclosure 
                requirements.--Nothing in this paragraph may be 
                construed to supersede subsection (a) of 
                section 122, or any disclosure required by 
                paragraph (1) or any other provision of this 
                subsection.''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate 
        regulations implementing the requirements of section 
        127(c)(6) of the Truth in Lending Act, as added by this 
        section.
            (2) Effective date.--Section 127(c)(6) of the Truth 
        in Lending Act, as added by this section, and 
        regulations issued under paragraph (1) of this 
        subsection shall not take effect until the later of--
                    (A) 12 months after the date of enactment 
                of this Act; or
                    (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1304. INTERNET-BASED CREDIT CARD SOLICITATIONS.

    (a) Internet-Based Applications and Solicitations.--Section 
127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is 
amended by adding at the end the following:
            ``(7) Internet-based applications and 
        solicitations.--
                    ``(A) In general.--In any solicitation to 
                open a credit card account for any person under 
                an open end consumer credit plan using the 
                Internet or other interactive computer service, 
                the person making the solicitation shall 
                clearly and conspicuously disclose--
                            ``(i) the information described in 
                        subparagraphs (A) and (B) of paragraph 
                        (1); and
                            ``(ii) the information described in 
                        paragraph (6).
                    ``(B) Form of disclosure.--The disclosures 
                required by subparagraph (A) shall be--
                            ``(i) readily accessible to 
                        consumers in close proximity to the 
                        solicitation to open a credit card 
                        account; and
                            ``(ii) updated regularly to reflect 
                        the current policies, terms, and fee 
                        amounts applicable to the credit card 
                        account.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) the term `Internet' means the 
                        international computer network of both 
                        Federal and non-Federal interoperable 
                        packet switched data networks; and
                            ``(ii) the term `interactive 
                        computer service' means any information 
                        service, system, or access software 
                        provider that provides or enables 
                        computer access by multiple users to a 
                        computer server, including specifically 
                        a service or system that provides 
                        access to the Internet and such systems 
                        operated or services offered by 
                        libraries or educational 
                        institutions.''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate 
        regulations implementing the requirements of section 
        127(c)(7) of the Truth in Lending Act, as added by this 
        section.
            (2) Effective date.--The amendment made by 
        subsection (a) and the regulations issued under 
        paragraph (1) of this subsection shall not take effect 
        until the later of--
                    (A) 12 months after the date of enactment 
                of this Act; or
                    (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1305. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND PENALTIES.

    (a) Disclosures Related to Late Payment Deadlines and 
Penalties.--Section 127(b) of the Truth in Lending Act (15 
U.S.C. 1637(b)) is amended by adding at the end the following:
            ``(12) If a late payment fee is to be imposed due 
        to the failure of the obligor to make payment on or 
        before a required payment due date, the following shall 
        be stated clearly and conspicuously on the billing 
        statement:
                    ``(A) The date on which that payment is due 
                or, if different, the earliest date on which a 
                late payment fee may be charged.
                    ``(B) The amount of the late payment fee to 
                be imposed if payment is made after such 
                date.''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate 
        regulations implementing the requirements of section 
        127(b)(12) of the Truth in Lending Act, as added by 
        this section.
            (2) Effective date.--The amendment made by 
        subsection (a) and regulations issued under paragraph 
        (1) of this subsection shall not take effect until the 
        later of--
                    (A) 12 months after the date of enactment 
                of this Act; or
                    (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1306. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO INCUR FINANCE 
                    CHARGES.

    (a) Prohibition on Certain Actions for Failure To Incur 
Finance Charges.--Section 127 of the Truth in Lending Act (15 
U.S.C. 1637) is amended by adding at the end the following:
    ``(h) Prohibition on Certain Actions for Failure To Incur 
Finance Charges.--A creditor of an account under an open end 
consumer credit plan may not terminate an account prior to its 
expiration date solely because the consumer has not incurred 
finance charges on the account. Nothing in this subsection 
shall prohibit a creditor from terminating an account for 
inactivity in 3 or more consecutive months.''.
    (b) Regulatory Implementation.--
            (1) In general.--The Board shall promulgate 
        regulations implementing the requirements of section 
        127(h) of the Truth in Lending Act, as added by this 
        section.
            (2) Effective date.--The amendment made by 
        subsection (a) and regulations issued under paragraph 
        (1) of this subsection shall not take effect until the 
        later of--
                    (A) 12 months after the date of enactment 
                of this Act; or
                    (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1307. DUAL USE DEBIT CARD.

    (a) Report.--The Board may conduct a study of, and present 
to Congress a report containing its analysis of, consumer 
protections under existing law to limit the liability of 
consumers for unauthorized use of a debit card or similar 
access device. Such report, if submitted, shall include 
recommendations for legislative initiatives, if any, of the 
Board, based on its findings.
    (b) Considerations.--In preparing a report under subsection 
(a), the Board may include--
            (1) the extent to which section 909 of the 
        Electronic Fund Transfer Act (15 U.S.C. 1693g), as in 
        effect at the time of the report, and the implementing 
        regulations promulgated by the Board to carry out that 
        section provide adequate unauthorized use liability 
        protection for consumers;
            (2) the extent to which any voluntary industry 
        rules have enhanced or may enhance the level of 
        protection afforded consumers in connection with such 
        unauthorized use liability; and
            (3) whether amendments to the Electronic Fund 
        Transfer Act (15 U.S.C. 1693 et seq.), or revisions to 
        regulations promulgated by the Board to carry out that 
        Act, are necessary to further address adequate 
        protection for consumers concerning unauthorized use 
        liability.

SEC. 1308. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT 
                    STUDENTS.

    (a) Study.--
            (1) In general.--The Board shall conduct a study 
        regarding the impact that the extension of credit 
        described in paragraph (2) has on the rate of 
        bankruptcy cases filed under title 11, United States 
        Code.
            (2) Extension of credit.--The extension of credit 
        described in this paragraph is the extension of credit 
        to individuals who are--
                    (A) claimed as dependents for purposes of 
                the Internal Revenue Code of 1986; and
                    (B) enrolled within 1 year of successfully 
                completing all required secondary education 
                requirements and on a full-time basis, in 
                postsecondary educational institutions.
    (b) Report.--Not later than 1 year after the date of 
enactment of this Act, the Board shall submit to the Senate and 
the House of Representatives a report summarizing the results 
of the study conducted under subsection (a).

SEC. 1309. CLARIFICATION OF CLEAR AND CONSPICUOUS.

    (a) Regulations.--Not later than 6 months after the date of 
enactment of this Act, the Board, in consultation with the 
other Federal banking agencies (as defined in section 3 of the 
Federal Deposit Insurance Act), the National Credit Union 
Administration Board, and the Federal Trade Commission, shall 
promulgate regulations to provide guidance regarding the 
meaning of the term ``clear and conspicuous'', as used in 
subparagraphs (A), (B), and (C) of section 127(b)(11) and 
clauses (ii) and (iii) of section 127(c)(6)(A) of the Truth in 
Lending Act.
    (b) Examples.--Regulations promulgated under subsection (a) 
shall include examples of clear and conspicuous model 
disclosures for the purposes of disclosures required by the 
provisions of the Truth in Lending Act referred to in 
subsection (a).
    (c) Standards.--In promulgating regulations under this 
section, the Board shall ensure that the clear and conspicuous 
standard required for disclosures made under the provisions of 
the Truth in Lending Act referred to in subsection (a) can be 
implemented in a manner which results in disclosures which are 
reasonably understandable and designed to call attention to the 
nature and significance of the information in the notice.

SEC. 1310. ENFORCEMENT OF CERTAIN FOREIGN JUDGMENTS BARRED.

    (a) In General.--Notwithstanding any other provision of law 
or contract, a court within the United States shall not 
recognize or enforce any judgment rendered in a foreign court 
if, by clear and convincing evidence, the court in which 
recognition or enforcement of the judgment is sought determines 
that the judgment gives effect to any purported right or 
interest derived, directly or indirectly, from any fraudulent 
misrepresentation or fraudulent omission that occurred in the 
United States during the period beginning on January 1, 1975, 
and ending on December 31, 1993.
    (b) Exception.--Subsection (a) shall not prevent 
recognition or enforcement of a judgment rendered in a foreign 
court if the foreign tribunal rendering judgment giving effect 
to the right or interest concerned determines that no 
fraudulent misrepresentation or fraudulent omission described 
in subsection (a) occurred.

      TITLE XIV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 1401. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as otherwise provided in this 
Act, this Act and the amendments made by this Act shall take 
effect 180 days after the date of enactment of this Act.
    (b) Application of Amendments.--Except as otherwise 
provided in this Act, the amendments made by this Act shall not 
apply with respect to cases commenced under title 11, United 
States Code, before the effective date of this Act.

                                   Henry Hyde,
                                   George W. Gekas,
                                   Dick Armey,
                                 Managers on the Part of the House.

                                   Jesse Helms,
                                   Richard G. Lugar,
                                   Rod Grams,
                                   Joe Biden,
                                Managers on the Part of the Senate.