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116th Congress   }                                       {      Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                       {     116-171

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



 
               SMALL BUSINESS REORGANIZATION ACT OF 2019

                                _______
                                

 July 23, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Nadler, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3311]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 3311) to amend chapter 11 of title 11, United States 
Code, to address reorganization of small businesses, and for 
other purposes, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for the Legislation..........................     2
Hearings.........................................................     4
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
New Budget Authority and Tax Expenditures and Congressional 
  Budget Office Cost Estimate....................................     5
Duplication of Federal Programs..................................     5
Performance Goals and Objectives.................................     5
Advisory on Earmarks.............................................     6
Section-by-Section Analysis......................................     6
Changes in Existing Law Made by the Bill, as Reported............     9

                          Purpose and Summary

    H.R. 3311, the ``Small Business Reorganization Act of 
2019,'' would streamline the bankruptcy process by which small 
businesses debtors reorganize and rehabilitate their financial 
affairs. This bipartisan measure was introduced by 
Representative Ben Cline (R-VA) together with Antitrust, 
Commercial, and Administrative Law Subcommittee (ACAL 
Subcommittee) Chairman David N. Cicilline (D-RI), Full 
Committee Ranking Member Doug Collins (R-GA) and Representative 
Steve Cohen (D-TN) as original cosponsors. H.R. 3311 is 
supported by various nonpartisan organizations, including the 
American Bankruptcy Institute (ABI),\1\ the National Bankruptcy 
Conference (NBC),\2\ the American College of Bankruptcy,\3\ and 
the National Conference of Bankruptcy Judges.\4\
---------------------------------------------------------------------------
    \1\Oversight of Bankruptcy Law and Legislative Proposals: Hearing 
Before the Subcomm. on Antitrust, Commercial, & Admin. Law of the H. 
Comm. on the Judiciary, 116th Cong. (2019) (prepared statement of 
Robert J. Keach, Am. Bankr. Inst.).
    \2\Id. (prepared statement of Thomas Small, Nat'l Bankr. Conf.).
    \3\Letter from Marc A. Levinson, Chair, Am. Coll. of Bankr., and 
Mark D. Bloom, Pres., Am. Coll. of Bankr., to Rep. Jerrold Nadler (D-
NY), Chair, H. Comm. on the Judiciary, and Rep. Doug Collins (R-GA), 
Ranking Member, H. Comm. on the Judiciary (June 14, 2019).
    \4\Letter from John E. Waites, President, Nat'l Conf. of Bankr. 
Judges, to Rep. Jerrold Nadler (D-NY), Chair, H. Comm. on the 
Judiciary, and Rep. Doug Collins (R-GA), Ranking Member, H. Comm. on 
the Judiciary (June 21, 2019).
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                Background and Need for the Legislation


                               BACKGROUND

    Small businesses--typically family-owned businesses, 
startups, and other entrepreneurial ventures--``form the 
backbone of the American economy.''\5\ For example, it is 
estimated that ```companies with 50 to 5,000 employees account 
for more employment than those with over 5,000.'''\6\ By their 
very nature, however, the longevity of these businesses is 
limited. According to the Small Business Administration Office 
of Advocacy, approximately 20 percent of small businesses 
survive the first year, but by the five-year mark only 50 
percent are still in business and by the ten-year mark only 
one-third survive.\7\
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    \5\Am. Bankr. Inst., Final Report and Recommendations of the 
Commission to Study the Reform of Chapter 11, at 276 (2014) (quoting 
Deloitte Development LLC, Mid-Market Perspectives: America's Economic 
Engine--Competing in Uncertain Times 4 (2011)).
    \6\Id.
    \7\Chad Itar, What Percentage of Small Businesses Fail--And How Can 
You Avoid Being One of Them, Forbes: Community Voice (Oct. 25, 2018), 
https://www.forbes.com/sites/forbesfinancecouncil/2018/10/25/what-
percentage-of-small-businesses-fail-and-how-can-you-avoid-being-one-of-
them/#76f7489c43b5.
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    Chapter 11 is a form of bankruptcy relief that is typically 
used by businesses to reorganize their financial affairs. Under 
the protection of chapter 11, a debtor is given a ``financial 
breathing spell'' from most creditor collection efforts. This 
protection allows the chapter 11 debtor to continue its 
business operations while formulating a plan of reorganization 
to repay its creditors. In general, the chapter 11 process 
requires the debtor to propose a plan of reorganization 
pursuant to which the debtor commits to repay its creditors. It 
is similar to a contract that creditors can enforce in the 
bankruptcy court should the debtor fail to adhere to the plan's 
requirements. The plan is voted upon by the debtor's creditors 
and the bankruptcy court must make certain findings (e.g., the 
plan was proposed in good faith and it complies with specified 
payment priorities). If the court is satisfied, then the plan 
is confirmed and the debtor is no longer in chapter 11.\8\
---------------------------------------------------------------------------
    \8\11 U.S.C. Sec. 1129 (2019).
---------------------------------------------------------------------------
    If a chapter 11 case is unsuccessful, the case is usually 
converted to one under chapter 7, which is a form of bankruptcy 
relief that provides for the orderly liquidation of the 
debtor's assets for distribution to its creditors.\9\ 
Alternatively, the case may be dismissed, whichever is in the 
best interests of creditors and the bankruptcy estate.\10\
---------------------------------------------------------------------------
    \9\11 U.S.C. Sec. 1112(b) (2019).
    \10\Id.
---------------------------------------------------------------------------
    Not surprisingly, while most chapter 11 business cases are 
filed by small business debtors, they are often ``the least 
likely to reorganize successfully.''\11\ While the Bankruptcy 
Code envisions that creditors will play a major role in 
monitoring these cases, this often does not occur, chiefly 
because creditors in these smaller cases do not have claims 
large enough to warrant the time and money to participate 
actively in these cases.
---------------------------------------------------------------------------
    \11\H.R. Rep. No. 109-31, at 3 (2005); see, e.g., Susan Jensen-
Conklin, Do Confirmed Chapter 11 Plans Consummate? The Results of a 
Study and Analysis of the Law, 97 Com. L.J. 297, 325 (1992) (finding 
that only 6.5% of debtors confirmed and completed a reorganization 
plan, seemingly making saving a business under Chapter 11 very 
unlikely).
---------------------------------------------------------------------------
    In response to this concern, Congress passed legislation in 
2005 requiring heightened scrutiny of such cases and 
streamlining the reorganization process.\12\ The legislation 
sought to address ``the special problems presented by small 
business cases by instituting a variety of time frames and 
enforcement mechanisms designed to weed out small business 
debtors who are not likely to reorganize. It also requires 
these cases to be more actively monitored by United States 
trustees\13\ and the bankruptcy courts.''\14\ Specifically, 
with respect to small business cases, the United States trustee 
is required to:
---------------------------------------------------------------------------
    \12\Bankruptcy Abuse Prevention and Consumer Protection Act of 
2005, Pub. L. No. 109-8, 119 Stat. 23, 59 (2005).
    \13\The United States Trustee Program is a component of the U.S. 
Justice Department charged with maintaining the integrity of the 
bankruptcy system and, in pertinent part, supervising the 
administration of chapter 11 cases. 28 U.S.C. Sec. 586(a)(3) (2019).
    \14\H.R. Rep. No. 109-31, at 19 (2005).
---------------------------------------------------------------------------
    (A) conduct an initial debtor interview as soon as 
practicable after the date of the order for relief but before 
the first meeting scheduled under section 341(a) of title 11, 
at which time the United States trustee shall--
          (i) begin to investigate the debtor's viability;
          (ii) inquire about the debtor's business plan;
          (iii) explain the debtor's obligations to file 
        monthly operating reports and other required reports;
          (iv) attempt to develop an agreed scheduling order; 
        and
          (v) inform the debtor of other obligations;
    (B) if determined to be appropriate and advisable, visit 
the appropriate business premises of the debtor, ascertain the 
state of the debtor's books and records, and verify that the 
debtor has filed its tax returns; and
    (C) review and monitor diligently the debtor's activities, 
to determine as promptly as possible whether the debtor will be 
unable to confirm a plan[.]\15\
---------------------------------------------------------------------------
    \15\28 U.S.C. Sec. 586(a)(7) (2019). In addition, the United States 
trustee is obligated to promptly seek dismissal or conversion of a 
chapter 11 case if material grounds for such relief exist. 28 U.S.C. 
Sec. 586(a)(8) (2019).
---------------------------------------------------------------------------
    The United States Trustee Program is also charged with 
appointing individuals from the private sector to serve as 
trustees in all consumer chapter 7 and chapter 13 bankruptcy 
cases as well as in family farmer chapter 12 cases.\16\ In 
addition, the Program may designate an individual to serve as 
trustee in a chapter 11 case for cause, including ``fraud, 
dishonesty, incompetence, or gross mismanagement,'' among other 
grounds.\17\
---------------------------------------------------------------------------
    \16\28 U.S.C. Sec. 586(a)(1)-(b) (2019).
    \17\11 U.S.C. Sec. 1104(a) (2019); 28 U.S.C. Sec. 586(a)(2) (2019).
---------------------------------------------------------------------------

                        NEED FOR THE LEGISLATION

    Notwithstanding the 2005 Amendments, small business chapter 
11 cases continue to encounter difficulty in successfully 
reorganizing. Based upon their respective reviews of this 
issue, the NBC and the ABI developed recommendations to improve 
the reorganization process for small business chapter 11 
debtors. H.R. 3311 is largely derived from these 
recommendations. As the bill's sponsor, Representative Ben 
Cline (R-VA), explained at the hearing held by the Subcommittee 
on Antitrust, Commercial, and Administrative Law on June 25, 
2019 at which H.R. 3311 was considered, the legislation allows 
these debtors ``to file bankruptcy in a timely, cost-effective 
manner, and hopefully allows them to remain in business'' which 
``not only benefits the owners, but employees, suppliers, 
customers, and others who rely on that business.''\18\
---------------------------------------------------------------------------
    \18\Unofficial Tr. of Oversight of Bankruptcy Law and Legislative 
Proposals: Hearing Before the Subcomm. on Antitrust, Commercial, & 
Admin. Law of the H. Comm. on the Judiciary, 116th Cong. 27 (2019) (on 
file with H. Comm. on the Judiciary staff).
---------------------------------------------------------------------------
    The principal features of H.R. 3311 consist of the 
following: (1) requiring the appointment of an individual to 
serve as the trustee in a chapter 11 case filed by a small 
business debtor, who would perform many of the same duties 
required of a chapter 12 trustee; (2) requiring such private 
trustee to monitor the debtor's progress toward confirmation of 
a reorganization plan; and (3) authorizing the court to confirm 
a plan over the objection of the debtor's creditors, providing 
such plan does not discriminate unfairly, and is fair and 
equitable, with respect to each class of claims or interests 
that is impaired under, and has not accepted, the plan.
    The bill also includes two provisions, not limited to small 
business chapter 11 cases, pertaining to preferential 
transfers. In sum, it specifies an additional criterion that a 
trustee must consider before commencing an action to recover a 
preferential transfer (i.e., a transfer of property by the 
debtor made before the filing of the bankruptcy case 
preferential to a creditor and to the detriment of similarly 
situated creditors). The first provision would require the 
trustee to determine whether to exercise such authority based 
on reasonable due diligence in the circumstances of the case 
and take into account a party's known or reasonably knowable 
affirmative defenses. The second provision concerns the venue 
where such preferential transfer actions may be commenced. 
Current law requires this type of action to be commenced in the 
district where the defendant resides if the amount sought to be 
recovered by the action is less than $13,650.\19\ H.R. 3311 
would increase this monetary limit to $25,000.
---------------------------------------------------------------------------
    \19\28 U.S.C. Sec. 1409(b) (2019).
---------------------------------------------------------------------------

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress, the following hearing was used to consider H.R. 
3311: ``Oversight of Bankruptcy Law and Legislative 
Proposals,'' which was held on June 25, 2019.\20\ The hearing 
considered various legislative measures. Of pertinence to H.R. 
3311, the following witnesses testified: Representative Ben 
Cline (R-VA), the bill's sponsor; Robert J. Keach, on behalf of 
the American Bankruptcy Institute; and former Bankruptcy Judge 
Thomas Small on behalf of the National Bankruptcy Conference.
---------------------------------------------------------------------------
    \20\Oversight of Bankruptcy Law and Legislative Proposals: Hearing 
Before the Subcomm. on Antitrust, Commercial, & Admin. Law of the H. 
Comm. on the Judiciary, 116th Cong. (2019).
---------------------------------------------------------------------------

                        Committee Consideration

    On July 11, 2019, the Committee met in open session and 
ordered the bill, H.R. 3311, favorably reported without 
amendment by voice vote, a quorum being present.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that no 
rollcall votes occurred during the Committee's consideration of 
H.R. 3311.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

  New Budget Authority and Tax Expenditures and Congressional Budget 
                          Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of the Congressional Budget Office. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a statement as to whether this bill 
contains any new budget authority, spending authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures.

                    Duplication of Federal Programs

    No provision of H.R. 3311 establishes or reauthorizes a 
program of the federal government known to be duplicative of 
another federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                    Performance Goals and Objectives

    The Committee states that pursuant to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, H.R. 
3311 would streamline the bankruptcy process by which small 
businesses debtors reorganize and rehabilitate their financial 
affairs.

                          Advisory on Earmarks

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 3311 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

                      Section-by-Section Analysis

    The following discussion describes the bill as reported by 
the Committee.
    Sec. 1. Short title. Section 1 sets forth the short title 
of the bill as the ``Small Business Reorganization Act of 
2019.''
    Sec. 2. Reorganization of small business debtors. Section 2 
adds a new subchapter V to chapter 11 of the Bankruptcy Code 
consisting of provisions devoted to small business debtors.
    New section 1181 specifies those provisions of the 
Bankruptcy Code that are inapplicable to subchapter V cases.
    New section 1182 defines the term debtor, for purposes of 
subchapter V, as a small business debtor.
    New section 1183 directs the United States trustee to 
appoint an individual serving as a standing trustee to serve as 
a trustee in any case under subchapter V. The trustee must 
perform many of the same duties performed by a chapter 12 
trustee. In a chapter 12 case, for example, the trustee serves 
as a fiduciary for creditors and is accountable for all 
property of the debtor as well as for ensuring the debtor makes 
the payments as required by debtor's reorganization plan.\21\ 
Pursuant to section 1183, the trustee must participate in 
certain conferences and hearings concerning matters pertaining 
to the value of property subject to a lien, confirmation of a 
reorganization plan and its modification post-confirmation, and 
the sale of property of the estate. Among other duties, the 
trustee must ensure that the debtor commences making timely 
payments required under a confirmed plan. The trustee's service 
terminates upon substantial consummation of the plan.
---------------------------------------------------------------------------
    \21\11 U.S.C. Sec. 1202 (2019).
---------------------------------------------------------------------------
    New section 1184 sets forth the rights and powers of a 
subchapter V debtor in possession (i.e., the debtor remains in 
control of the bankruptcy case).
    New section 1185 provides that a subchapter V debtor may 
lose its status as a debtor in possession if the court finds, 
after notice and a hearing, that the debtor engaged in 
fraudulent, dishonest, or incompetent behavior or grossly 
mismanaged its financial affairs.
    New section 1186 concerns property of the estate. 
Subsection (a) provides that if a plan is confirmed, property 
of the estate includes all property acquired by the debtor 
after the date of commencement of the case, but before the case 
is closed, dismissed, or converted to a case under chapter 7, 
12, or 13 of title 11, whichever occurs first. It also includes 
all earnings from services performed by the debtor during such 
period. Subsection (b) provides that the debtor remains in 
possession of all property of the estate unless the debtor is 
removed from possession.
    New section 1187 specifies various duties and reporting 
requirements of a subchapter V debtor. In addition, it 
clarifies that the separate disclosure statement exemption 
applies unless the court orders otherwise.
    New section 1188 requires the court to hold a status 
conference to further the expeditious and economical resolution 
of a case under this subchapter not less than 60 days after the 
case is commenced, unless the court extends this period because 
such extension is needed as a result of circumstances for which 
the debtor should not justly be held accountable. In addition, 
this provision requires the debtor, not later than 14 days 
before the date of the status conference, to file with the 
court and serve on the trustee and all parties in interest a 
report that details the efforts the debtor has undertaken and 
will undertake to attain a consensual plan of reorganization.
    New section 1189 specifies that only the debtor may file a 
plan of reorganization under subchapter V. In addition, it 
directs the debtor to file such plan not later than 90 days 
after the case is filed, unless the court extends this period 
because of circumstances for which the debtor should not justly 
be held accountable.
    New section 1190 sets forth various requirements for the 
plan of reorganization, including a brief history of the 
business operations of the debtor; a liquidation analysis; and 
projections with respect to the ability of the debtor to make 
payments under the proposed plan of reorganization. In 
addition, the plan must provide for the submission of all or 
such portion of the future earnings or other future income of 
the debtor to the supervision and control of the trustee as is 
necessary for the execution of the plan. Section 1190 permits 
the debtor to modify the rights of a holder of a claim secured 
only by a security interest in real property that is the 
principal residence of the debtor if the new value received in 
connection with the granting of the security interest was not 
used primarily to acquire the real property, but it was used 
primarily in connection with the small business of the debtor.
    New section 1191 specifies the criteria for confirming a 
plan. It permits the court to confirm a plan even if a class of 
claims or interests has rejected the plan providing that such 
plan does not discriminate unfairly, and is fair and equitable, 
with respect to each class of claims or interests that is 
impaired under, and has not accepted, the plan.
    With respect to the condition that a plan be fair and 
equitable as to each class of claims or interests, section 1191 
sets forth a rule of construction. As to a class of secured 
claims, the plan must satisfy one of three alternative 
requirements. First, the plan must ensure that the holders of 
such claims retain their liens and that they receive on account 
of their claims deferred cash payments totaling at least the 
allowed amount of their claims, as valued on the plan's 
effective date. Second, if the plan contemplates the sale of 
property securing such claims, then the plan must provide that 
the claimants' liens attach to the proceeds of such sale. 
Third, if the plan contemplates neither, then the plan must 
provide that the secured creditors receive the indubitable 
equivalent of their claims.
    In addition, the plan must provide that all of the 
projected disposable income of the debtor to be received in the 
three-year period, or such longer period not to exceed five 
years as the court may fix, beginning on the date that the 
first payment is due under the plan, will be applied to make 
payments under the plan. Alternatively, the value of the 
property to be distributed under the plan in the three-year 
period, or such longer period not to exceed five years as the 
court may fix--beginning on the date on which the first 
distribution is due under the plan--is not less than the 
projected disposable income of the debtor.
    As a further condition of confirmation, the court must find 
that: (1) the debtor will be able to make all payments under 
the plan; or (2) there is a reasonable likelihood that the 
debtor will be able to make all payments under the plan; and 
the plan provides appropriate remedies, which may include the 
liquidation of nonexempt assets, to protect the holders of 
claims or interests in the event that the payments are not 
made.
    Section 1191 defines ``disposable income'' to mean the 
income that is received by the debtor and that is not 
reasonably necessary to be expended for: (1) the maintenance or 
support of the debtor or a dependent of the debtor; (2) a 
domestic support obligation that first becomes payable after 
the date of the filing of the case; or (3) the payment of 
expenditures necessary for the continuation, preservation, or 
operation of the business of the debtor.
    Finally, with respect to the payment of administrative 
expenses (e.g., the debtor's attorneys' fees, the plan may 
provide for their payment through the plan.
    New section 1192 requires the court to grant the debtor a 
discharge as soon as practicable after completion by the debtor 
of all payments due within the first three years of the plan, 
or such longer period not to exceed five years as the court may 
fix. Such discharge pertains to all debts as provided under the 
plan except any debt: (1) on which the last payment is due 
after the first three years of the plan, or such other time not 
to exceed five years fixed by the court; or (2) that is 
otherwise nondischargeable.
    New section 1193 sets forth the criteria for modifying a 
plan pre- and post-confirmation.
    New section 1194 pertains to the trustee's responsibilities 
for collecting and distributing payments made by the debtor 
pursuant to the plan.
    New section 1195 provides that a person is not disqualified 
for employment under section 327 of title 11 solely because 
that person holds a claim of less than $10,000 that arose prior 
to commencement of the case.
    Sec. 3. Preferences; venue of certain proceedings. 
Bankruptcy Code section 547(b) authorizes a trustee to avoid 
certain prepetition transfers of property that, in sum, are 
preferential to a creditor and to the detriment of similarly 
situated creditors. Subsection (a) amends section 547(b) to 
require the trustee to determine whether to exercise such 
authority based on reasonable due diligence in the 
circumstances of the case and taking into account a party's 
known or reasonably knowable affirmative defenses.
    Section 1409 of title 28 of the U.S. Code sets forth the 
criteria for the venue of certain proceedings arising in 
connection with a bankruptcy case. With respect to an action to 
recover a debt against a noninsider of less than $13,650, such 
proceeding must be commenced in the district court for the 
district where the defendant resides. Subsection (b) would 
increase this monetary limit to $25,000.
    Sec. 4. Conforming amendments. Section 4 makes a series of 
conforming amendments to the Bankruptcy Code.
    Sec. 5. Effective date. Section 5 provides that the Act and 
its amendments take effect 180 days after the date of 
enactment.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 11, UNITED STATES CODE




           *       *       *       *       *       *       *
CHAPTER 1--GENERAL PROVISIONS

           *       *       *       *       *       *       *



Sec. 101. Definitions

  In this title the following definitions shall apply:
          (1) The term ``accountant'' means accountant 
        authorized under applicable law to practice public 
        accounting, and includes professional accounting 
        association, corporation, or partnership, if so 
        authorized.
          (2) The term ``affiliate'' means--
                  (A) entity that directly or indirectly owns, 
                controls, or holds with power to vote, 20 
                percent or more of the outstanding voting 
                securities of the debtor, other than an entity 
                that holds such securities--
                          (i) in a fiduciary or agency capacity 
                        without sole discretionary power to 
                        vote such securities; or
                          (ii) solely to secure a debt, if such 
                        entity has not in fact exercised such 
                        power to vote;
                  (B) corporation 20 percent or more of whose 
                outstanding voting securities are directly or 
                indirectly owned, controlled, or held with 
                power to vote, by the debtor, or by an entity 
                that directly or indirectly owns, controls, or 
                holds with power to vote, 20 percent or more of 
                the outstanding voting securities of the 
                debtor, other than an entity that holds such 
                securities--
                          (i) in a fiduciary or agency capacity 
                        without sole discretionary power to 
                        vote such securities; or
                          (ii) solely to secure a debt, if such 
                        entity has not in fact exercised such 
                        power to vote;
                  (C) person whose business is operated under a 
                lease or operating agreement by a debtor, or 
                person substantially all of whose property is 
                operated under an operating agreement with the 
                debtor; or
                  (D) entity that operates the business or 
                substantially all of the property of the debtor 
                under a lease or operating agreement.
          (3) The term ``assisted person'' means any person 
        whose debts consist primarily of consumer debts and the 
        value of whose nonexempt property is less than 
        $150,000.
          (4) The term ``attorney'' means attorney, 
        professional law association, corporation, or 
        partnership, authorized under applicable law to 
        practice law.
          (4A) The term ``bankruptcy assistance'' means any 
        goods or services sold or otherwise provided to an 
        assisted person with the express or implied purpose of 
        providing information, advice, counsel, document 
        preparation, or filing, or attendance at a creditors' 
        meeting or appearing in a case or proceeding on behalf 
        of another or providing legal representation with 
        respect to a case or proceeding under this title.
          (5) The term ``claim'' means--
                  (A) right to payment, whether or not such 
                right is reduced to judgment, liquidated, 
                unliquidated, fixed, contingent, matured, 
                unmatured, disputed, undisputed, legal, 
                equitable, secured, or unsecured; or
                  (B) right to an equitable remedy for breach 
                of performance if such breach gives rise to a 
                right to payment, whether or not such right to 
                an equitable remedy is reduced to judgment, 
                fixed, contingent, matured, unmatured, 
                disputed, undisputed, secured, or unsecured.
          (6) The term ``commodity broker'' means futures 
        commission merchant, foreign futures commission 
        merchant, clearing organization, leverage transaction 
        merchant, or commodity options dealer, as defined in 
        section 761 of this title, with respect to which there 
        is a customer, as defined in section 761 of this title.
          (7) The term ``community claim'' means claim that 
        arose before the commencement of the case concerning 
        the debtor for which property of the kind specified in 
        section 541(a)(2) of this title is liable, whether or 
        not there is any such property at the time of the 
        commencement of the case.
          (7A) The term ``commercial fishing operation'' 
        means--
                  (A) the catching or harvesting of fish, 
                shrimp, lobsters, urchins, seaweed, shellfish, 
                or other aquatic species or products of such 
                species; or
                  (B) for purposes of section 109 and chapter 
                12, aquaculture activities consisting of 
                raising for market any species or product 
                described in subparagraph (A).
          (7B) The term ``commercial fishing vessel'' means a 
        vessel used by a family fisherman to carry out a 
        commercial fishing operation.
          (8) The term ``consumer debt'' means debt incurred by 
        an individual primarily for a personal, family, or 
        household purpose.
          (9) The term ``corporation''--
                  (A) includes--
                          (i) association having a power or 
                        privilege that a private corporation, 
                        but not an individual or a partnership, 
                        possesses;
                          (ii) partnership association 
                        organized under a law that makes only 
                        the capital subscribed responsible for 
                        the debts of such association;
                          (iii) joint-stock company;
                          (iv) unincorporated company or 
                        association; or
                          (v) business trust; but
                  (B) does not include limited partnership.
          (10) The term ``creditor'' means--
                  (A) entity that has a claim against the 
                debtor that arose at the time of or before the 
                order for relief concerning the debtor;
                  (B) entity that has a claim against the 
                estate of a kind specified in section 348(d), 
                502(f), 502(g), 502(h) or 502(i) of this title; 
                or
                  (C) entity that has a community claim.
          (10A) The term ``current monthly income''--
                  (A) means the average monthly income from all 
                sources that the debtor receives (or in a joint 
                case the debtor and the debtor's spouse 
                receive) without regard to whether such income 
                is taxable income, derived during the 6-month 
                period ending on--
                          (i) the last day of the calendar 
                        month immediately preceding the date of 
                        the commencement of the case if the 
                        debtor files the schedule of current 
                        income required by section 
                        521(a)(1)(B)(ii); or
                          (ii) the date on which current income 
                        is determined by the court for purposes 
                        of this title if the debtor does not 
                        file the schedule of current income 
                        required by section 521(a)(1)(B)(ii); 
                        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 for 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, payments to 
                victims of war crimes or crimes against 
                humanity on account of their status as victims 
                of such crimes, and payments to victims of 
                international terrorism (as defined in section 
                2331 of title 18) or domestic terrorism (as 
                defined in section 2331 of title 18) on account 
                of their status as victims of such terrorism.
          (11) The term ``custodian'' means--
                  (A) receiver or trustee of any of the 
                property of the debtor, appointed in a case or 
                proceeding not under this title;
                  (B) assignee under a general assignment for 
                the benefit of the debtor's creditors; or
                  (C) trustee, receiver, or agent under 
                applicable law, or under a contract, that is 
                appointed or authorized to take charge of 
                property of the debtor for the purpose of 
                enforcing a lien against such property, or for 
                the purpose of general administration of such 
                property for the benefit of the debtor's 
                creditors.
          (12) The term ``debt'' means liability on a claim.
          (12A) The term ``debt relief agency'' means any 
        person who provides any bankruptcy assistance to an 
        assisted person in return for the payment of money or 
        other valuable consideration, or who is a bankruptcy 
        petition preparer under section 110, but does not 
        include--
                  (A) any person who is an officer, director, 
                employee, or agent of a person who provides 
                such assistance or of the bankruptcy petition 
                preparer;
                  (B) a nonprofit organization that is exempt 
                from taxation under section 501(c)(3) of the 
                Internal Revenue Code of 1986;
                  (C) a creditor of such assisted person, to 
                the extent that the creditor is assisting such 
                assisted person to restructure any debt owed by 
                such assisted person to the creditor;
                  (D) a depository institution (as defined in 
                section 3 of the Federal Deposit Insurance Act) 
                or any Federal credit union or State credit 
                union (as those terms are defined in section 
                101 of the Federal Credit Union Act), or any 
                affiliate or subsidiary of such depository 
                institution or credit union; or
                  (E) an author, publisher, distributor, or 
                seller of works subject to copyright protection 
                under title 17, when acting in such capacity.
          (13) The term ``debtor'' means person or municipality 
        concerning which a case under this title has been 
        commenced.
          (13A) The term ``debtor's principal residence''--
                  (A) means a residential structure if used as 
                the principal residence by the debtor, 
                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 if used as the principal 
                residence by the debtor.
          (14) The term ``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.
          (14A) The term ``domestic support obligation'' means 
        a debt that accrues before, on, or after the date of 
        the order for relief in a case 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, on, or after the date of the order for 
                relief in a case 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 of the 
                debtor, or such child's parent, legal guardian, 
                or responsible relative for the purpose of 
                collecting the debt.
          (15) The term ``entity'' includes person, estate, 
        trust, governmental unit, and United States trustee.
          (16) The term ``equity security'' means--
                  (A) share in a corporation, whether or not 
                transferable or denominated ``stock'', or 
                similar security;
                  (B) interest of a limited partner in a 
                limited partnership; or
                  (C) warrant or right, other than a right to 
                convert, to purchase, sell, or subscribe to a 
                share, security, or interest of a kind 
                specified in subparagraph (A) or (B) of this 
                paragraph.
          (17) The term ``equity security holder'' means holder 
        of an equity security of the debtor.
          (18) The term ``family farmer'' means--
                  (A) individual or individual and spouse 
                engaged in a farming operation whose aggregate 
                debts do not exceed $3,237,000 and not less 
                than 50 percent of whose aggregate 
                noncontingent, liquidated debts (excluding a 
                debt for the principal residence of such 
                individual or such individual and spouse unless 
                such debt arises out of a farming operation), 
                on the date the case is filed, arise out of a 
                farming operation owned or operated by such 
                individual or such individual and spouse, and 
                such individual or such individual and spouse 
                receive from such farming operation more than 
                50 percent of such individual's or such 
                individual and spouse's gross income for--
                          (i) the taxable year preceding; or
                          (ii) each of the 2d and 3d taxable 
                        years preceding;
                the taxable year in which the case concerning 
                such individual or such individual and spouse 
                was filed; or
                  (B) corporation or partnership in which more 
                than 50 percent of the outstanding stock or 
                equity is held by one family, or by one family 
                and the relatives of the members of such 
                family, and such family or such relatives 
                conduct the farming operation, and
                          (i) more than 80 percent of the value 
                        of its assets consists of assets 
                        related to the farming operation;
                          (ii) its aggregate debts do not 
                        exceed $3,237,000 and not less than 50 
                        percent of its aggregate noncontingent, 
                        liquidated debts (excluding a debt for 
                        one dwelling which is owned by such 
                        corporation or partnership and which a 
                        shareholder or partner maintains as a 
                        principal residence, unless such debt 
                        arises out of a farming operation), on 
                        the date the case is filed, arise out 
                        of the farming operation owned or 
                        operated by such corporation or such 
                        partnership; and
                          (iii) if such corporation issues 
                        stock, such stock is not publicly 
                        traded.
          (19) The term ``family farmer with regular annual 
        income'' means family farmer whose annual income is 
        sufficiently stable and regular to enable such family 
        farmer to make payments under a plan under chapter 12 
        of this title.
          (19A) The term ``family fisherman'' means--
                  (A) an individual or individual and spouse 
                engaged in a commercial fishing operation--
                          (i) whose aggregate debts do not 
                        exceed $1,500,000   and not less than 
                        80 percent of whose aggregate 
                        noncontingent, liquidated debts 
                        (excluding a debt for the principal 
                        residence of such individual or such 
                        individual and spouse, unless such debt 
                        arises out of a commercial fishing 
                        operation), on the date the case is 
                        filed, arise out of a commercial 
                        fishing operation owned or operated by 
                        such individual or such individual and 
                        spouse; and
                          (ii) who receive from such commercial 
                        fishing operation more than 50 percent 
                        of such individual's or such 
                        individual's and spouse's gross income 
                        for the taxable year preceding the 
                        taxable year in which the case 
                        concerning such individual or such 
                        individual and spouse was filed; or
                  (B) a corporation or partnership--
                          (i) in which more than 50 percent of 
                        the outstanding stock or equity is held 
                        by--
                                  (I) 1 family that conducts 
                                the commercial fishing 
                                operation; or
                                  (II) 1 family and the 
                                relatives of the members of 
                                such family, and such family or 
                                such relatives conduct the 
                                commercial fishing operation; 
                                and
                          (ii)(I) more than 80 percent of the 
                        value of its assets consists of assets 
                        related to the commercial fishing 
                        operation;
                                  (II) its aggregate debts do 
                                not exceed $1,500,000 and not 
                                less than 80 percent of its 
                                aggregate noncontingent, 
                                liquidated debts (excluding a 
                                debt for 1 dwelling which is 
                                owned by such corporation or 
                                partnership and which a 
                                shareholder or partner 
                                maintains as a principal 
                                residence, unless such debt 
                                arises out of a commercial 
                                fishing operation), on the date 
                                the case is filed, arise out of 
                                a commercial fishing operation 
                                owned or operated by such 
                                corporation or such 
                                partnership; and
                                  (III) if such corporation 
                                issues stock, such stock is not 
                                publicly traded.
          (19B) The term ``family fisherman with regular annual 
        income'' means a family fisherman whose annual income 
        is sufficiently stable and regular to enable such 
        family fisherman to make payments under a plan under 
        chapter 12 of this title.
          (20) The term ``farmer'' means (except when such term 
        appears in the term ``family farmer'') person that 
        received more than 80 percent of such person's gross 
        income during the taxable year of such person 
        immediately preceding the taxable year of such person 
        during which the case under this title concerning such 
        person was commenced from a farming operation owned or 
        operated by such person.
          (21) The term ``farming operation'' includes farming, 
        tillage of the soil, dairy farming, ranching, 
        production or raising of crops, poultry, or livestock, 
        and production of poultry or livestock products in an 
        unmanufactured state.
          (21A) The term ``farmout agreement'' means a written 
        agreement in which--
                  (A) the owner of a right to drill, produce, 
                or operate liquid or gaseous hydrocarbons on 
                property agrees or has agreed to transfer or 
                assign all or a part of such right to another 
                entity; and
                  (B) such other entity (either directly or 
                through its agents or its assigns), as 
                consideration, agrees to perform drilling, 
                reworking, recompleting, testing, or similar or 
                related operations, to develop or produce 
                liquid or gaseous hydrocarbons on the property.
          (21B) The term ``Federal depository institutions 
        regulatory agency'' means--
                  (A) with respect to an insured depository 
                institution (as defined in section 3(c)(2) of 
                the Federal Deposit Insurance Act) for which no 
                conservator or receiver has been appointed, the 
                appropriate Federal banking agency (as defined 
                in section 3(q) of such Act);
                  (B) with respect to an insured credit union 
                (including an insured credit union for which 
                the National Credit Union Administration has 
                been appointed conservator or liquidating 
                agent), the National Credit Union 
                Administration;
                  (C) with respect to any insured depository 
                institution for which the Resolution Trust 
                Corporation has been appointed conservator or 
                receiver, the Resolution Trust Corporation; and
                  (D) with respect to any insured depository 
                institution for which the Federal Deposit 
                Insurance Corporation has been appointed 
                conservator or receiver, the Federal Deposit 
                Insurance Corporation.
          (22) The term ``financial institution'' means--
                  (A) a Federal reserve bank, or an entity that 
                is a commercial or savings bank, industrial 
                savings bank, savings and loan association, 
                trust company, federally-insured credit union, 
                or receiver, liquidating agent, or conservator 
                for such entity and, when any such Federal 
                reserve bank, receiver, liquidating agent, 
                conservator or entity is acting as agent or 
                custodian for a customer (whether or not a 
                ``customer'', as defined in section 741) 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.
          (22A) The term ``financial participant'' means--
                  (A) an entity that, at the time it enters 
                into a securities contract, commodity contract, 
                swap agreement, repurchase agreement, or 
                forward contract, or at the time of the date 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 (aggregated across 
                counterparties) at such time or on any day 
                during the 15-month period preceding the date 
                of the filing of the petition, 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) at such time or on any day during 
                the 15-month period preceding the date of the 
                filing of the petition; or
                  (B) a clearing organization (as defined in 
                section 402 of the Federal Deposit Insurance 
                Corporation Improvement Act of 1991).
          (23) The term ``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) The term ``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 such foreign proceeding.
          (25) The term ``forward contract'' means--
                  (A) a contract (other than a commodity 
                contract, as defined in section 761) for the 
                purchase, sale, or transfer of a commodity, as 
                defined in section 761(8) of this title, or any 
                similar good, article, service, right, or 
                interest which is presently or in the future 
                becomes the subject of dealing in the forward 
                contract trade, or product or byproduct 
                thereof, with a maturity date more than two 
                days after the date the contract is entered 
                into, including, but not limited to, a 
                repurchase or reverse repurchase transaction 
                (whether or not such repurchase or reverse 
                repurchase transaction is a ``repurchase 
                agreement'', as defined in this section) 
                consignment, lease, swap, hedge transaction, 
                deposit, loan, option, allocated transaction, 
                unallocated transaction, or any other similar 
                agreement;
                  (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), including 
                any guarantee or reimbursement obligation by or 
                to a forward contract merchant or financial 
                participant in connection with any agreement or 
                transaction referred to in any such 
                subparagraph, but not to exceed the damages in 
                connection with any such agreement or 
                transaction, measured in accordance with 
                section 562.
          (26) The term ``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 in a commodity 
        (as defined 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.
          (27) The term ``governmental unit'' means United 
        States; State; Commonwealth; District; Territory; 
        municipality; foreign state; department, agency, or 
        instrumentality of the United States (but not a United 
        States trustee while serving as a trustee in a case 
        under this title), a State, a Commonwealth, a District, 
        a Territory, a municipality, or a foreign state; or 
        other foreign or domestic government.
          (27A) The term ``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.
          (27B) The term ``incidental property'' means, with 
        respect to a debtor's principal residence--
                  (A) property commonly conveyed with a 
                principal residence in the area where the real 
                property is located;
                  (B) all easements, rights, appurtenances, 
                fixtures, rents, royalties, mineral rights, oil 
                or gas rights or profits, water rights, escrow 
                funds, or insurance proceeds; and
                  (C) all replacements or additions.
          (28) The term ``indenture'' means mortgage, deed of 
        trust, or indenture, under which there is outstanding a 
        security, other than a voting-trust certificate, 
        constituting a claim against the debtor, a claim 
        secured by a lien on any of the debtor's property, or 
        an equity security of the debtor.
          (29) The term ``indenture trustee'' means trustee 
        under an indenture.
          (30) The term ``individual with regular income'' 
        means individual whose income is sufficiently stable 
        and regular to enable such individual to make payments 
        under a plan under chapter 13 of this title, other than 
        a stockbroker or a commodity broker.
          (31) The term ``insider'' includes--
                  (A) if the debtor is an individual--
                          (i) relative of the debtor or of a 
                        general partner of the debtor;
                          (ii) partnership in which the debtor 
                        is a general partner;
                          (iii) general partner of the debtor; 
                        or
                          (iv) corporation of which the debtor 
                        is a director, officer, or person in 
                        control;
                  (B) if the debtor is a corporation--
                          (i) director of the debtor;
                          (ii) officer of the debtor;
                          (iii) person in control of the 
                        debtor;
                          (iv) partnership in which the debtor 
                        is a general partner;
                          (v) general partner of the debtor; or
                          (vi) relative of a general partner, 
                        director, officer, or person in control 
                        of the debtor;
                  (C) if the debtor is a partnership--
                          (i) general partner in the debtor;
                          (ii) relative of a general partner 
                        in, general partner of, or person in 
                        control of the debtor;
                          (iii) partnership in which the debtor 
                        is a general partner;
                          (iv) general partner of the debtor; 
                        or
                          (v) person in control of the debtor;
                  (D) if the debtor is a municipality, elected 
                official of the debtor or relative of an 
                elected official of the debtor;
                  (E) affiliate, or insider of an affiliate as 
                if such affiliate were the debtor; and
                  (F) managing agent of the debtor.
          (32) The term ``insolvent'' means--
                  (A) with reference to an entity other than a 
                partnership and a municipality, financial 
                condition such that the sum of such entity's 
                debts is greater than all of such entity's 
                property, at a fair valuation, exclusive of--
                          (i) property transferred, concealed, 
                        or removed with intent to hinder, 
                        delay, or defraud such entity's 
                        creditors; and
                          (ii) property that may be exempted 
                        from property of the estate under 
                        section 522 of this title;
                  (B) with reference to a partnership, 
                financial condition such that the sum of such 
                partnership's debts is greater than the 
                aggregate of, at a fair valuation--
                          (i) all of such partnership's 
                        property, exclusive of property of the 
                        kind specified in subparagraph (A)(i) 
                        of this paragraph; and
                          (ii) the sum of the excess of the 
                        value of each general partner's 
                        nonpartnership property, exclusive of 
                        property of the kind specified in 
                        subparagraph (A) of this paragraph, 
                        over such partner's nonpartnership 
                        debts; and
                  (C) with reference to a municipality, 
                financial condition such that the municipality 
                is--
                          (i) generally not paying its debts as 
                        they become due unless such debts are 
                        the subject of a bona fide dispute; or
                          (ii) unable to pay its debts as they 
                        become due.
          (33) The term ``institution-affiliated party''--
                  (A) with respect to an insured depository 
                institution (as defined in section 3(c)(2) of 
                the Federal Deposit Insurance Act), has the 
                meaning given it in section 3(u) of the Federal 
                Deposit Insurance Act; and
                  (B) with respect to an insured credit union, 
                has the meaning given it in section 206(r) of 
                the Federal Credit Union Act.
          (34) The term ``insured credit union'' has the 
        meaning given it in section 101(7) of the Federal 
        Credit Union Act.
          (35) The term ``insured depository institution''--
                  (A) has the meaning given it in section 
                3(c)(2) of the Federal Deposit Insurance Act; 
                and
                  (B) includes an insured credit union (except 
                in the case of paragraphs (21B) and (33)(A) of 
                this subsection).
          (35A) The term ``intellectual property'' means--
                  (A) trade secret;
                  (B) invention, process, design, or plant 
                protected under title 35;
                  (C) patent application;
                  (D) plant variety;
                  (E) work of authorship protected under title 
                17; or
                  (F) mask work protected under chapter 9 of 
                title 17;
        to the extent protected by applicable nonbankruptcy 
        law.
          (36) The term ``judicial lien'' means lien obtained 
        by judgment, levy, sequestration, or other legal or 
        equitable process or proceeding.
          (37) The term ``lien'' means charge against or 
        interest in property to secure payment of a debt or 
        performance of an obligation.
          (38) The term ``margin payment'' means, for purposes 
        of the forward contract provisions of this title, 
        payment or deposit of cash, a security or other 
        property, that is commonly known in the forward 
        contract trade as original margin, initial margin, 
        maintenance margin, or variation margin, including 
        mark-to-market payments, or variation payments.
          (38A) The term ``master netting agreement''--
                  (A) means an agreement providing for the 
                exercise of rights, including rights of 
                netting, setoff, liquidation, termination, 
                acceleration, or close out, 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, including any guarantee or 
                reimbursement obligation related to 1 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) The term ``master netting agreement 
        participant'' means an entity that, at any time before 
        the date of the filing of the petition, is a party to 
        an outstanding master netting agreement with the 
        debtor.
          (39) The term ``mask work'' has the meaning given it 
        in section 901(a)(2) of title 17.
          (39A) The term ``median family income'' means for any 
        year--
                  (A) the median family income both calculated 
                and reported by the Bureau of the Census in the 
                then most recent year; and
                  (B) if not so calculated and reported in the 
                then current year, adjusted annually after such 
                most recent year until the next year in which 
                median family income is both calculated and 
                reported by the Bureau of the Census, to 
                reflect the percentage change in the Consumer 
                Price Index for All Urban Consumers during the 
                period of years occurring after such most 
                recent year and before such current year.
          (40) The term ``municipality'' means political 
        subdivision or public agency or instrumentality of a 
        State.
          (40A) The term ``patient'' means any individual who 
        obtains or receives services from a health care 
        business.
          (40B) The term ``patient records'' means any record 
        relating to a patient, including a written document or 
        a record recorded in a magnetic, optical, or other form 
        of electronic medium.
          (41) The term ``person'' includes individual, 
        partnership, and corporation, but does not include 
        governmental unit, except that a governmental unit 
        that--
                  (A) acquires an asset from a person--
                          (i) as a result of the operation of a 
                        loan guarantee agreement; or
                          (ii) as receiver or liquidating agent 
                        of a person;
                  (B) is a guarantor of a pension benefit 
                payable by or on behalf of the debtor or an 
                affiliate of the debtor; or
                  (C) is the legal or beneficial owner of an 
                asset of--
                          (i) an employee pension benefit plan 
                        that is a governmental plan, as defined 
                        in section 414(d) of the Internal 
                        Revenue Code of 1986; or
                          (ii) an eligible deferred 
                        compensation plan, as defined in 
                        section 457(b) of the Internal Revenue 
                        Code of 1986;
        shall be considered, for purposes of section 1102 of 
        this title, to be a person with respect to such asset 
        or such benefit.
          (41A) The term ``personally identifiable 
        information'' means--
                  (A) if provided by an individual to the 
                debtor in connection with obtaining a product 
                or a service from the debtor primarily for 
                personal, family, or household purposes--
                          (i) the first name (or initial) and 
                        last name of such individual, whether 
                        given at birth or time of adoption, or 
                        resulting from a lawful change of name;
                          (ii) the geographical address of a 
                        physical place of residence of such 
                        individual;
                          (iii) an electronic address 
                        (including an e-mail address) of such 
                        individual;
                          (iv) a telephone number dedicated to 
                        contacting such individual at such 
                        physical place of residence;
                          (v) a social security account number 
                        issued to such individual; or
                          (vi) the account number of a credit 
                        card issued to such individual; or
                  (B) if identified in connection with 1 or 
                more of the items of information specified in 
                subparagraph (A)--
                          (i) a birth date, the number of a 
                        certificate of birth or adoption, or a 
                        place of birth; or
                          (ii) any other information concerning 
                        an identified individual that, if 
                        disclosed, will result in contacting or 
                        identifying such individual physically 
                        or electronically.
          (42) The term ``petition'' means petition filed under 
        section 301, 302, 303 and 1504 of this title, as the 
        case may be, commencing a case under this title.
          (42A) The term ``production payment'' means a term 
        overriding royalty satisfiable in cash or in kind--
                  (A) contingent on the production of a liquid 
                or gaseous hydrocarbon from particular real 
                property; and
                  (B) from a specified volume, or a specified 
                value, from the liquid or gaseous hydrocarbon 
                produced from such property, and determined 
                without regard to production costs.
          (43) The term ``purchaser'' means transferee of a 
        voluntary transfer, and includes immediate or mediate 
        transferee of such a transferee.
          (44) The term ``railroad'' means common carrier by 
        railroad engaged in the transportation of individuals 
        or property or owner of trackage facilities leased by 
        such a common carrier.
          (45) The term ``relative'' means individual related 
        by affinity or consanguinity within the third degree as 
        determined by the common law, or individual in a step 
        or adoptive relationship within such third degree.
          (46) The term ``repo participant'' means an entity 
        that, at any time before the filing of the petition, 
        has an outstanding repurchase agreement with the 
        debtor.
          (47) The term ``repurchase agreement'' (which 
        definition also applies to a reverse repurchase 
        agreement)--
                  (A) means--
                          (i) an agreement, including related 
                        terms, which provides for the transfer 
                        of 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, mortgage loans, or 
                        interests, with a simultaneous 
                        agreement by such transferee to 
                        transfer to the transferor thereof 
                        certificates of deposit, eligible 
                        bankers' acceptance, securities, 
                        mortgage 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), including any guarantee or 
                        reimbursement obligation by or to a 
                        repo participant or financial 
                        participant in connection with any 
                        agreement or transaction referred to in 
                        any such clause, but not to exceed the 
                        damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562 of this 
                        title; and
                  (B) does not include a repurchase obligation 
                under a participation in a commercial mortgage 
                loan.
          (48) The term ``securities clearing agency'' means 
        person that is registered as a clearing agency under 
        section 17A of the Securities Exchange Act of 1934, or 
        exempt from such registration under such section 
        pursuant to an order of the Securities and Exchange 
        Commission, or whose business is confined to the 
        performance of functions of a clearing agency with 
        respect to exempted securities, as defined in section 
        3(a)(12) of such Act for the purposes of such section 
        17A.
          (48A) The term ``securities self regulatory 
        organization'' means either a securities association 
        registered with the Securities and Exchange Commission 
        under section 15A of the Securities Exchange Act of 
        1934 or a national securities exchange registered with 
        the Securities and Exchange Commission under section 6 
        of the Securities Exchange Act of 1934.
          (49) The term ``security''--
                  (A) includes--
                          (i) note;
                          (ii) stock;
                          (iii) treasury stock;
                          (iv) bond;
                          (v) debenture;
                          (vi) collateral trust certificate;
                          (vii) pre-organization certificate or 
                        subscription;
                          (viii) transferable share;
                          (ix) voting-trust certificate;
                          (x) certificate of deposit;
                          (xi) certificate of deposit for 
                        security;
                          (xii) investment contract or 
                        certificate of interest or 
                        participation in a profit-sharing 
                        agreement or in an oil, gas, or mineral 
                        royalty or lease, if such contract or 
                        interest is required to be the subject 
                        of a registration statement filed with 
                        the Securities and Exchange Commission 
                        under the provisions of the Securities 
                        Act of 1933, or is exempt under section 
                        3(b) of such Act from the requirement 
                        to file such a statement;
                          (xiii) interest of a limited partner 
                        in a limited partnership;
                          (xiv) other claim or interest 
                        commonly known as ``security''; and
                          (xv) certificate of interest or 
                        participation in, temporary or interim 
                        certificate for, receipt for, or 
                        warrant or right to subscribe to or 
                        purchase or sell, a security; but
                  (B) does not include--
                          (i) currency, check, draft, bill of 
                        exchange, or bank letter of credit;
                          (ii) leverage transaction, as defined 
                        in section 761 of this title;
                          (iii) commodity futures contract or 
                        forward contract;
                          (iv) option, warrant, or right to 
                        subscribe to or purchase or sell a 
                        commodity futures contract;
                          (v) option to purchase or sell a 
                        commodity;
                          (vi) contract or certificate of a 
                        kind specified in subparagraph (A)(xii) 
                        of this paragraph that is not required 
                        to be the subject of a registration 
                        statement filed with the Securities and 
                        Exchange Commission and is not exempt 
                        under section 3(b) of the Securities 
                        Act of 1933 from the requirement to 
                        file such a statement; or
                          (vii) debt or evidence of 
                        indebtedness for goods sold and 
                        delivered or services rendered.
          (50) The term ``security agreement'' means agreement 
        that creates or provides for a security interest.
          (51) The term ``security interest'' means lien 
        created by an agreement.
          (51A) The term ``settlement payment'' means, for 
        purposes of the forward contract provisions of this 
        title, a preliminary settlement payment, a partial 
        settlement payment, an interim settlement payment, a 
        settlement payment on account, a final settlement 
        payment, a net settlement payment, or any other similar 
        payment commonly used in the forward contract trade.
          (51B) The term ``single asset real estate'' means 
        real property constituting a single property or 
        project, other than residential real property with 
        fewer than 4 residential units, which generates 
        substantially all of the gross income of a debtor who 
        is not a family farmer and on which no substantial 
        business is being conducted by a debtor other than the 
        business of operating the real property and activities 
        incidental thereto.
          (51C) The term ``small business case'' means a case 
        filed under chapter 11 of this title in which the 
        debtor is a small business debtor and has not elected 
        that subchapter V of chapter 11 of this title shall 
        apply.
          (51D) The term ``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] 
                single asset real estate) that has aggregate 
                noncontingent liquidated secured and unsecured 
                debts as of the date of the filing of the 
                petition or the date of the order for relief in 
                an amount not more than $2,000,000   (excluding 
                debts owed to 1 or more affiliates or insiders) 
                [for a case in which the United States trustee 
                has not appointed under section 1102(a)(1) a 
                committee of unsecured creditors or where the 
                court has determined that the committee of 
                unsecured creditors is not sufficiently active 
                and representative to provide effective 
                oversight of the debtor; and] not less than 50 
                percent of which arose from the commercial or 
                business activities of the debtor; and
                  (B) [does not include any member] does not 
                include--
                          (i) any member  of a group of 
                        affiliated debtors that has aggregate 
                        noncontingent liquidated secured and 
                        unsecured debts in an amount greater 
                        than $2,000,000 (excluding debt owed to 
                        1 or more affiliates or insiders)[.];
                          (ii) any debtor that is a corporation 
                        subject to the reporting requirements 
                        under section 13 or 15(d) of the 
                        Securities Exchange Act of 1934 (15 
                        U.S.C. 78m, 78o(d)); or
                          (iii) any corporation that--
                                  (I) is subject to the 
                                reporting requirements under 
                                section 13 or 15(d) of the 
                                Securities Exchange Act of 1934 
                                (15 U.S.C. 78m, 78o(d)); and
                                  (II) is an affiliate of a 
                                debtor.
          (52) The term ``State'' includes the District of 
        Columbia and Puerto Rico, except for the purpose of 
        defining who may be a debtor under chapter 9 of this 
        title.
          (53) The term ``statutory lien'' means lien arising 
        solely by force of a statute on specified circumstances 
        or conditions, or lien of distress for rent, whether or 
        not statutory, but does not include security interest 
        or judicial lien, whether or not such interest or lien 
        is provided by or is dependent on a statute and whether 
        or not such interest or lien is made fully effective by 
        statute.
          (53A) The term ``stockbroker'' means person--
                  (A) with respect to which there is a 
                customer, as defined in section 741 of this 
                title; and
                  (B) that is engaged in the business of 
                effecting transactions in securities--
                          (i) for the account of others; or
                          (ii) with members of the general 
                        public, from or for such person's own 
                        account.
          (53B) The term ``swap agreement''--
                  (A) means--
                          (i) any agreement, including the 
                        terms and conditions incorporated by 
                        reference in such agreement, which is--
                                  (I) an interest rate swap, 
                                option, future, or forward 
                                agreement, including 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, precious metals, or 
                                other commodity agreement;
                                  (III) a currency swap, 
                                option, future, or forward 
                                agreement;
                                  (IV) an equity index or 
                                equity swap, option, future, or 
                                forward agreement;
                                  (V) a debt index or debt 
                                swap, option, future, or 
                                forward agreement;
                                  (VI) a total return, credit 
                                spread or credit swap, option, 
                                future, or forward agreement;
                                  (VII) a commodity index or a 
                                commodity swap, option, future, 
                                or forward agreement;
                                  (VIII) a weather swap, 
                                option, future, or forward 
                                agreement;
                                  (IX) an emissions swap, 
                                option, future, or forward 
                                agreement; or
                                  (X) an inflation swap, 
                                option, future, or forward 
                                agreement;
                          (ii) any agreement or transaction 
                        that is similar to any other agreement 
                        or transaction referred to in this 
                        paragraph and that--
                                  (I) is of a type that has 
                                been, is presently, or in the 
                                future becomes, the subject of 
                                recurrent dealings in the swap 
                                or other derivatives markets 
                                (including terms and conditions 
                                incorporated by reference 
                                therein); and
                                  (II) is a forward, swap, 
                                future, option, or spot 
                                transaction on one or more 
                                rates, currencies, commodities, 
                                equity securities, or other 
                                equity instruments, debt 
                                securities or other debt 
                                instruments, quantitative 
                                measures associated with an 
                                occurrence, extent of an 
                                occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic 
                                consequence, or economic or 
                                financial indices or measures 
                                of economic or financial 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), including any guarantee or 
                        reimbursement obligation by or to a 
                        swap participant or financial 
                        participant in connection with any 
                        agreement or transaction referred to in 
                        any such clause, but not to exceed the 
                        damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562; 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 Gramm-Leach-Bliley Act, the Legal 
                Certainty for Bank Products Act of 2000, the 
                securities laws (as such term is defined in 
                section 3(a)(47) of the Securities Exchange Act 
                of 1934) and the Commodity Exchange Act.
          (53C) The term ``swap participant'' means an entity 
        that, at any time before the filing of the petition, 
        has an outstanding swap agreement with the debtor.
          (56A) The term ``term overriding royalty'' means an 
        interest in liquid or gaseous hydrocarbons in place or 
        to be produced from particular real property that 
        entitles the owner thereof to a share of production, or 
        the value thereof, for a term limited by time, 
        quantity, or value realized.
          (53D) The term ``timeshare plan'' means and shall 
        include that interest purchased in any arrangement, 
        plan, scheme, or similar device, but not including 
        exchange programs, whether by membership, agreement, 
        tenancy in common, sale, lease, deed, rental agreement, 
        license, right to use agreement, or by any other means, 
        whereby a purchaser, in exchange for consideration, 
        receives a right to use accommodations, facilities, or 
        recreational sites, whether improved or unimproved, for 
        a specific period of time less than a full year during 
        any given year, but not necessarily for consecutive 
        years, and which extends for a period of more than 
        three years. A ``timeshare interest'' is that interest 
        purchased in a timeshare plan which grants the 
        purchaser the right to use and occupy accommodations, 
        facilities, or recreational sites, whether improved or 
        unimproved, pursuant to a timeshare plan.
          (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.
          (54A) The term ``uninsured State member bank'' means 
        a State member bank (as defined in section 3 of the 
        Federal Deposit Insurance Act) the deposits of which 
        are not insured by the Federal Deposit Insurance 
        Corporation.
          (55) The term ``United States'', when used in a 
        geographical sense, includes all locations where the 
        judicial jurisdiction of the United States extends, 
        including territories and possessions of the United 
        States.

           *       *       *       *       *       *       *


Sec. 103. Applicability of chapters

  (a) Except as provided in section 1161 of this title, 
chapters 1, 3, and 5 of this title apply in a case under 
chapter 7, 11, 12, or 13 of this title, and this chapter, 
sections 307, 362(o), 555 through 557, and 559 through 562 
apply in a case under chapter 15.
  (b) Subchapters I and II of chapter 7 of this title apply 
only in a case under such chapter.
  (c) Subchapter III of chapter 7 of this title applies only in 
a case under such chapter concerning a stockbroker.
  (d) Subchapter IV of chapter 7 of this title applies only in 
a case under such chapter concerning a commodity broker.
  (e) Scope of Application.--Subchapter V of chapter 7 of this 
title shall apply only in a case under such chapter concerning 
the liquidation of an uninsured State member bank, or a 
corporation organized under section 25A of the Federal Reserve 
Act, which operates, or operates as, a multilateral clearing 
organization pursuant to section 409 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991.
  (f) Except as provided in section 901 of this title, only 
chapters 1 and 9 of this title apply in a case under such 
chapter 9.
  (g) Except as provided in section 901 of this title, 
subchapters I, II, and III of chapter 11 of this title apply 
only in a case under such chapter.
  (h) Subchapter IV of chapter 11 of this title applies only in 
a case under such chapter concerning a railroad.
  (i) Subchapter V of chapter 11 of this title applies only in 
a case under chapter 11 in which a small business debtor elects 
that subchapter V of chapter 11 shall apply.
  [(i)] (j) Chapter 13 of this title applies only in a case 
under such chapter.
  [(j)] (k) Chapter 12 of this title applies only in a case 
under such chapter.
  [(k)] (l) 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.

           *       *       *       *       *       *       *


CHAPTER 3--CASE ADMINISTRATION

           *       *       *       *       *       *       *


SUBCHAPTER II--OFFICERS

           *       *       *       *       *       *       *


Sec. 322. Qualification of trustee

  (a) Except as provided in subsection (b)(1), a person 
selected under section 701, 702, 703, 1104, 1163, 1183, 1202, 
or 1302 of this title to serve as trustee in a case under this 
title qualifies if before seven days after such selection, and 
before beginning official duties, such person has filed with 
the court a bond in favor of the United States conditioned on 
the faithful performance of such official duties.
  (b)(1) The United States trustee qualifies wherever such 
trustee serves as trustee in a case under this title.
          (2) The United States trustee shall determine--
          (A) the amount of a bond required to be filed under 
        subsection (a) of this section; and
          (B) the sufficiency of the surety on such bond.
  (c) A trustee is not liable personally or on such trustee's 
bond in favor of the United States for any penalty or 
forfeiture incurred by the debtor.
  (d) A proceeding on a trustee's bond may not be commenced 
after two years after the date on which such trustee was 
discharged.

           *       *       *       *       *       *       *


Sec. 326. Limitation on compensation of trustee

  (a) In a case under chapter 7 or 11, other than a case under 
subchapter V of chapter 11,, the court may allow reasonable 
compensation under section 330 of this title of the trustee for 
the trustee's services, payable after the trustee renders such 
services, not to exceed 25 percent on the first $5,000 or less, 
10 percent on any amount in excess of $5,000 but not in excess 
of $50,000, 5 percent on any amount in excess of $50,000 but 
not in excess of $1,000,000, and reasonable compensation not to 
exceed 3 percent of such moneys in excess of $1,000,000, upon 
all moneys disbursed or turned over in the case by the trustee 
to parties in interest, excluding the debtor, but including 
holders of secured claims.
  (b) In a case under subchapter V of chapter 11 or chapter 12 
or 13 of this title, the court may not allow compensation for 
services or reimbursement of expenses of the United States 
trustee or of a standing trustee appointed under section 586(b) 
of title 28, but may allow reasonable compensation under 
section 330 of this title of a trustee appointed under section 
1202(a) or 1302(a) of this title for the trustee's services, 
payable after the trustee renders such services, not to exceed 
five percent upon all payments under the plan.
  (c) If more than one person serves as trustee in the case, 
the aggregate compensation of such persons for such service may 
not exceed the maximum compensation prescribed for a single 
trustee by subsection (a) or (b) of this section, as the case 
may be.
  (d) The court may deny allowance of compensation for services 
or reimbursement of expenses of the trustee if the trustee 
failed to make diligent inquiry into facts that would permit 
denial of allowance under section 328(c) of this title or, with 
knowledge of such facts, employed a professional person under 
section 327 of this title.

           *       *       *       *       *       *       *


SUBCHAPTER III--ADMINISTRATION

           *       *       *       *       *       *       *


Sec. 347. Unclaimed property

  (a) Ninety days after the final distribution under section 
726, 1194, 1226, or 1326 of this title in a case under chapter 
7, subchapter V of chapter 11, 12, or 13 of this title, as the 
case may be, the trustee shall stop payment on any check 
remaining unpaid, and any remaining property of the estate 
shall be paid into the court and disposed of under chapter 129 
of title 28.
  (b) Any security, money, or other property remaining 
unclaimed at the expiration of the time allowed in a case under 
chapter 9, 11, or 12 of this title for the presentation of a 
security or the performance of any other act as a condition to 
participation in the distribution under any plan confirmed 
under section 943(b), 1129, 1173, 1194, or 1225 of this title, 
as the case may be, becomes the property of the debtor or of 
the entity acquiring the assets of the debtor under the plan, 
as the case may be.

           *       *       *       *       *       *       *


SUBCHAPTER IV--ADMINISTRATIVE POWERS

           *       *       *       *       *       *       *


Sec. 363. Use, sale, or lease of property

  (a) In this section, ``cash collateral'' means cash, 
negotiable instruments, documents of title, securities, deposit 
accounts, or other cash equivalents whenever acquired in which 
the estate and an entity other than the estate have an interest 
and includes the proceeds, products, offspring, rents, or 
profits of property and the fees, charges, accounts or other 
payments for the use or occupancy of rooms and other public 
facilities in hotels, motels, or other lodging properties 
subject to a security interest as provided in section 552(b) of 
this title, whether existing before or after the commencement 
of a case under this title.
  (b)(1) The trustee, after notice and a hearing, may use, 
sell, or lease, other than in the ordinary course of business, 
property of the estate, except that if the debtor in connection 
with offering a product or a service discloses to an individual 
a policy prohibiting the transfer of personally identifiable 
information about individuals to persons that are not 
affiliated with the debtor and if such policy is in effect on 
the date of the commencement of the case, then the trustee may 
not sell or lease personally identifiable information to any 
person unless--
                  (A) such sale or such lease is consistent 
                with such policy; or
                  (B) after appointment of a consumer privacy 
                ombudsman in accordance with section 332, and 
                after notice and a hearing, the court approves 
                such sale or such lease--
                          (i) giving due consideration to the 
                        facts, circumstances, and conditions of 
                        such sale or such lease; and
                          (ii) finding that no showing was made 
                        that such sale or such lease would 
                        violate applicable nonbankruptcy law.
          (2) If notification is required under subsection (a) 
        of section 7A of the Clayton Act in the case of a 
        transaction under this subsection, then--
          (A) notwithstanding subsection (a) of such section, 
        the notification required by such subsection to be 
        given by the debtor shall be given by the trustee; and
          (B) notwithstanding subsection (b) of such section, 
        the required waiting period shall end on the 15th day 
        after the date of the receipt, by the Federal Trade 
        Commission and the Assistant Attorney General in charge 
        of the Antitrust Division of the Department of Justice, 
        of the notification required under such subsection (a), 
        unless such waiting period is extended--
                  (i) pursuant to subsection (e)(2) of such 
                section, in the same manner as such subsection 
                (e)(2) applies to a cash tender offer;
                  (ii) pursuant to subsection (g)(2) of such 
                section; or
                  (iii) by the court after notice and a 
                hearing.
  (c)(1) If the business of the debtor is authorized to be 
operated under section 721, 1108, 1183, 1184, 1203, 1204, or 
1304 of this title and unless the court orders otherwise, the 
trustee may enter into transactions, including the sale or 
lease of property of the estate, in the ordinary course of 
business, without notice or a hearing, and may use property of 
the estate in the ordinary course of business without notice or 
a hearing.
          (2) The trustee may not use, sell, or lease cash 
        collateral under paragraph (1) of this subsection 
        unless--
          (A) each entity that has an interest in such cash 
        collateral consents; or
          (B) the court, after notice and a hearing, authorizes 
        such use, sale, or lease in accordance with the 
        provisions of this section.
          (3) Any hearing under paragraph (2)(B) of this 
        subsection may be a preliminary hearing or may be 
        consolidated with a hearing under subsection (e) of 
        this section, but shall be scheduled in accordance with 
        the needs of the debtor. If the hearing under paragraph 
        (2)(B) of this subsection is a preliminary hearing, the 
        court may authorize such use, sale, or lease only if 
        there is a reasonable likelihood that the trustee will 
        prevail at the final hearing under subsection (e) of 
        this section. The court shall act promptly on any 
        request for authorization under paragraph (2)(B) of 
        this subsection.
          (4) Except as provided in paragraph (2) of this 
        subsection, the trustee shall segregate and account for 
        any cash collateral in the trustee's possession, 
        custody, or control.
  (d) The trustee may use, sell, or lease property under 
subsection (b) or (c) of this section--
          (1) in the case of a debtor that is a corporation or 
        trust that is not a moneyed business, commercial 
        corporation, or trust, only in accordance with 
        nonbankruptcy law applicable to the transfer of 
        property by a debtor that is such a corporation or 
        trust; and
          (2) only to the extent not inconsistent with any 
        relief granted under subsection (c), (d), (e), or (f) 
        of section 362.
  (e) Notwithstanding any other provision of this section, at 
any time, on request of an entity that has an interest in 
property used, sold, or leased, or proposed to be used, sold, 
or leased, by the trustee, the court, with or without a 
hearing, shall prohibit or condition such use, sale, or lease 
as is necessary to provide adequate protection of such 
interest. This subsection also applies to property that is 
subject to any unexpired lease of personal property (to the 
exclusion of such property being subject to an order to grant 
relief from the stay under section 362).
  (f) The trustee may sell property under subsection (b) or (c) 
of this section free and clear of any interest in such property 
of an entity other than the estate, only if--
          (1) applicable nonbankruptcy law permits sale of such 
        property free and clear of such interest;
          (2) such entity consents;
          (3) such interest is a lien and the price at which 
        such property is to be sold is greater than the 
        aggregate value of all liens on such property;
          (4) such interest is in bona fide dispute; or
          (5) such entity could be compelled, in a legal or 
        equitable proceeding, to accept a money satisfaction of 
        such interest.
  (g) Notwithstanding subsection (f) of this section, the 
trustee may sell property under subsection (b) or (c) of this 
section free and clear of any vested or contingent right in the 
nature of dower or curtesy.
  (h) Notwithstanding subsection (f) of this section, the 
trustee may sell both the estate's interest, under subsection 
(b) or (c) of this section, and the interest of any co-owner in 
property in which the debtor had, at the time of the 
commencement of the case, an undivided interest as a tenant in 
common, joint tenant, or tenant by the entirety, only if--
          (1) partition in kind of such property among the 
        estate and such co-owners is impracticable;
          (2) sale of the estate's undivided interest in such 
        property would realize significantly less for the 
        estate than sale of such property free of the interests 
        of such co-owners;
          (3) the benefit to the estate of a sale of such 
        property free of the interests of co-owners outweighs 
        the detriment, if any, to such co-owners; and
          (4) such property is not used in the production, 
        transmission, or distribution, for sale, of electric 
        energy or of natural or synthetic gas for heat, light, 
        or power.
  (i) Before the consummation of a sale of property to which 
subsection (g) or (h) of this section applies, or of property 
of the estate that was community property of the debtor and the 
debtor's spouse immediately before the commencement of the 
case, the debtor's spouse, or a co-owner of such property, as 
the case may be, may purchase such property at the price at 
which such sale is to be consummated.
  (j) After a sale of property to which subsection (g) or (h) 
of this section applies, the trustee shall distribute to the 
debtor's spouse or the co-owners of such property, as the case 
may be, and to the estate, the proceeds of such sale, less the 
costs and expenses, not including any compensation of the 
trustee, of such sale, according to the interests of such 
spouse or co-owners, and of the estate.
  (k) At a sale under subsection (b) of this section of 
property that is subject to a lien that secures an allowed 
claim, unless the court for cause orders otherwise the holder 
of such claim may bid at such sale, and, if the holder of such 
claim purchases such property, such holder may offset such 
claim against the purchase price of such property.
  (l) Subject to the provisions of section 365, the trustee may 
use, sell, or lease property under subsection (b) or (c) of 
this section, or a plan under chapter 11, 12, or 13 of this 
title may provide for the use, sale, or lease of property, 
notwithstanding any provision in a contract, a lease, or 
applicable law that is conditioned on the insolvency or 
financial condition of the debtor, on the commencement of a 
case under this title concerning the debtor, or on the 
appointment of or the taking possession by a trustee in a case 
under this title or a custodian, and that effects, or gives an 
option to effect, a forfeiture, modification, or termination of 
the debtor's interest in such property.
  (m) The reversal or modification on appeal of an 
authorization under subsection (b) or (c) of this section of a 
sale or lease of property does not affect the validity of a 
sale or lease under such authorization to an entity that 
purchased or leased such property in good faith, whether or not 
such entity knew of the pendency of the appeal, unless such 
authorization and such sale or lease were stayed pending 
appeal.
  (n) The trustee may avoid a sale under this section if the 
sale price was controlled by an agreement among potential 
bidders at such sale, or may recover from a party to such 
agreement any amount by which the value of the property sold 
exceeds the price at which such sale was consummated, and may 
recover any costs, attorneys' fees, or expenses incurred in 
avoiding such sale or recovering such amount. In addition to 
any recovery under the preceding sentence, the court may grant 
judgment for punitive damages in favor of the estate and 
against any such party that entered into such an agreement in 
willful disregard of this subsection.
  (o) Notwithstanding subsection (f), if a person purchases any 
interest in a consumer credit transaction that is subject to 
the Truth in Lending Act or any interest in a consumer credit 
contract (as defined in section 433.1 of title 16 of the Code 
of Federal Regulations (January 1, 2004), as amended from time 
to time), and if such interest is purchased through a sale 
under this section, then such person shall remain subject to 
all claims and defenses that are related to such consumer 
credit transaction or such consumer credit contract, to the 
same extent as such person would be subject to such claims and 
defenses of the consumer had such interest been purchased at a 
sale not under this section.
  (p) In any hearing under this section--
          (1) the trustee has the burden of proof on the issue 
        of adequate protection; and
          (2) the entity asserting an interest in property has 
        the burden of proof on the issue of the validity, 
        priority, or extent of such interest.

Sec. 364. Obtaining credit

  (a) If the trustee is authorized to operate the business of 
the debtor under section 721, 1108, 1183, 1184, 1203, 1204, or 
1304 of this title, unless the court orders otherwise, the 
trustee may obtain unsecured credit and incur unsecured debt in 
the ordinary course of business allowable under section 
503(b)(1) of this title as an administrative expense.
  (b) The court, after notice and a hearing, may authorize the 
trustee to obtain unsecured credit or to incur unsecured debt 
other than under subsection (a) of this section, allowable 
under section 503(b)(1) of this title as an administrative 
expense.
  (c) If the trustee is unable to obtain unsecured credit 
allowable under section 503(b)(1) of this title as an 
administrative expense, the court, after notice and a hearing, 
may authorize the obtaining of credit or the incurring of 
debt--
          (1) with priority over any or all administrative 
        expenses of the kind specified in section 503(b) or 
        507(b) of this title;
          (2) secured by a lien on property of the estate that 
        is not otherwise subject to a lien; or
          (3) secured by a junior lien on property of the 
        estate that is subject to a lien.
  (d)(1) The court, after notice and a hearing, may authorize 
the obtaining of credit or the incurring of debt secured by a 
senior or equal lien on property of the estate that is subject 
to a lien only if--
                  (A) the trustee is unable to obtain such 
                credit otherwise; and
                  (B) there is adequate protection of the 
                interest of the holder of the lien on the 
                property of the estate on which such senior or 
                equal lien is proposed to be granted.
          (2) In any hearing under this subsection, the trustee 
        has the burden of proof on the issue of adequate 
        protection.
  (e) The reversal or modification on appeal of an 
authorization under this section to obtain credit or incur 
debt, or of a grant under this section of a priority or a lien, 
does not affect the validity of any debt so incurred, or any 
priority or lien so granted, to an entity that extended such 
credit in good faith, whether or not such entity knew of the 
pendency of the appeal, unless such authorization and the 
incurring of such debt, or the granting of such priority or 
lien, were stayed pending appeal.
  (f) Except with respect to an entity that is an underwriter 
as defined in section 1145(b) of this title, section 5 of the 
Securities Act of 1933, the Trust Indenture Act of 1939, and 
any State or local law requiring registration for offer or sale 
of a security or registration or licensing of an issuer of, 
underwriter of, or broker or dealer in, a security does not 
apply to the offer or sale under this section of a security 
that is not an equity security.

           *       *       *       *       *       *       *


CHAPTER 5--CREDITORS, THE DEBTOR, AND THE ESTATE

           *       *       *       *       *       *       *


SUBCHAPTER II--DEBTOR'S DUTIES AND BENEFITS

           *       *       *       *       *       *       *


Sec. 523. Exceptions to discharge

  (a) A discharge under section 727, 1141, 1192, 1228(a), 
1228(b), or 1328(b) of this title does not discharge an 
individual debtor from any debt--
          (1) for a tax or a customs duty--
                  (A) of the kind and for the periods specified 
                in section 507(a)(3) or 507(a)(8) of this 
                title, whether or not a claim for such tax was 
                filed or allowed;
                  (B) with respect to which a return, or 
                equivalent report or notice, if required--
                          (i) was not filed or given; or
                          (ii) was filed or given after the 
                        date on which such return, report, or 
                        notice was last due, under applicable 
                        law or under any extension, and after 
                        two years before the date of the filing 
                        of the petition; or
                  (C) with respect to which the debtor made a 
                fraudulent return or willfully attempted in any 
                manner to evade or defeat such tax;
          (2) for money, property, services, or an extension, 
        renewal, or refinancing of credit, to the extent 
        obtained by--
                  (A) false pretenses, a false representation, 
                or actual fraud, other than a statement 
                respecting the debtor's or an insider's 
                financial condition;
                  (B) use of a statement in writing--
                          (i) that is materially false;
                          (ii) respecting the debtor's or an 
                        insider's financial condition;
                          (iii) on which the creditor to whom 
                        the debtor is liable for such money, 
                        property, services, or credit 
                        reasonably relied; and
                          (iv) that the debtor caused to be 
                        made or published with intent to 
                        deceive; or
                  (C)(i) for purposes of subparagraph (A)--
                                  (I) consumer debts owed to a 
                                single creditor and aggregating 
                                more than $500 for luxury goods 
                                or services incurred by an 
                                individual debtor on or within 
                                90 days before the order for 
                                relief under this title are 
                                presumed to be 
                                nondischargeable; and
                                  (II) cash advances 
                                aggregating more than $750 that 
                                are extensions of consumer 
                                credit under an open end credit 
                                plan obtained by an individual 
                                debtor on or within 70 days 
                                before the order for relief 
                                under this title, are presumed 
                                to be nondischargeable; and
                          (ii) for purposes of this 
                        subparagraph--
                          (I) the terms ``consumer'', 
                        ``credit'', and ``open end credit 
                        plan'' have the same meanings as in 
                        section 103 of the Truth in Lending 
                        Act; and
                          (II) the term ``luxury goods or 
                        services'' does not include goods or 
                        services reasonably necessary for the 
                        support or maintenance of the debtor or 
                        a dependent of the debtor;
          (3) neither listed nor scheduled under section 
        521(a)(1) of this title, with the name, if known to the 
        debtor, of the creditor to whom such debt is owed, in 
        time to permit--
                  (A) if such debt is not of a kind specified 
                in paragraph (2), (4), or (6) of this 
                subsection, timely filing of a proof of claim, 
                unless such creditor had notice or actual 
                knowledge of the case in time for such timely 
                filing; or
                  (B) if such debt is of a kind specified in 
                paragraph (2), (4), or (6) of this subsection, 
                timely filing of a proof of claim and timely 
                request for a determination of dischargeability 
                of such debt under one of such paragraphs, 
                unless such creditor had notice or actual 
                knowledge of the case in time for such timely 
                filing and request;
          (4) for fraud or defalcation while acting in a 
        fiduciary capacity, embezzlement, or larceny;
          (5) for a domestic support obligation;
          (6) for willful and malicious injury by the debtor to 
        another entity or to the property of another entity;
          (7) to the extent such debt is for a fine, penalty, 
        or forfeiture payable to and for the benefit of a 
        governmental unit, and is not compensation for actual 
        pecuniary loss, other than a tax penalty--
                  (A) relating to a tax of a kind not specified 
                in paragraph (1) of this subsection; or
                  (B) imposed with respect to a transaction or 
                event that occurred before three years before 
                the date of the filing of the petition;
          (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 defined in section 
                221(d)(1) of the Internal Revenue Code of 1986, 
                incurred by a debtor who is an individual;
          (9) for death or personal injury caused by the 
        debtor's operation of a motor vehicle, vessel, or 
        aircraft if such operation was unlawful because the 
        debtor was intoxicated from using alcohol, a drug, or 
        another substance;
          (10) that was or could have been listed or scheduled 
        by the debtor in a prior case concerning the debtor 
        under this title or under the Bankruptcy Act in which 
        the debtor waived discharge, or was denied a discharge 
        under section 727(a)(2), (3), (4), (5), (6), or (7) of 
        this title, or under section 14c(1), (2), (3), (4), 
        (6), or (7) of such Act;
          (11) provided in any final judgment, unreviewable 
        order, or consent order or decree entered in any court 
        of the United States or of any State, issued by a 
        Federal depository institutions regulatory agency, or 
        contained in any settlement agreement entered into by 
        the debtor, arising from any act of fraud or 
        defalcation while acting in a fiduciary capacity 
        committed with respect to any depository institution or 
        insured credit union;
          (12) for malicious or reckless failure to fulfill any 
        commitment by the debtor to a Federal depository 
        institutions regulatory agency to maintain the capital 
        of an insured depository institution, except that this 
        paragraph shall not extend any such commitment which 
        would otherwise be terminated due to any act of such 
        agency;
          (13) for any payment of an order of restitution 
        issued under title 18, United States Code;
          (14) incurred to pay a tax to the United States that 
        would be nondischargeable pursuant to paragraph (1);
          (14A) incurred to pay a tax to a governmental unit, 
        other than the United States, that would be 
        nondischargeable under paragraph (1);
          (14B) incurred to pay fines or penalties imposed 
        under Federal election law;
          (15) to a spouse, former spouse, or child of the 
        debtor and not of the kind described in paragraph (5) 
        that is incurred by the debtor in the course of a 
        divorce or separation or in connection with a 
        separation agreement, divorce decree or other order of 
        a court of record, or a determination made in 
        accordance with State or territorial law by a 
        governmental unit;
          (16) for a fee or assessment that becomes due and 
        payable after the order for relief to a membership 
        association with respect to the debtor's interest in a 
        unit that has condominium ownership, in a share of a 
        cooperative corporation, 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, 
        but nothing in this paragraph shall except from 
        discharge the debt of a debtor for a membership 
        association fee or assessment for a period arising 
        before entry of the order for relief in a pending or 
        subsequent bankruptcy case;
          (17) for a fee imposed on a prisoner by any court for 
        the filing of a case, motion, complaint, or appeal, or 
        for other costs and expenses assessed with respect to 
        such filing, regardless of an assertion of poverty by 
        the debtor under subsection (b) or (f)(2) of section 
        1915 of title 28 (or a similar non-Federal law), or the 
        debtor's status as a prisoner, as defined in section 
        1915(h) of title 28 (or a similar non-Federal law);
          (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 a thrift savings plan 
                permitted under subchapter III of chapter 84 of 
                title 5, that satisfies the requirements of 
                section 8433(g) of such title;
        but nothing in this paragraph 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; or
          (19) that--
                  (A) is for--
                          (i) the violation of any of the 
                        Federal securities laws (as that term 
                        is defined in section 3(a)(47) of the 
                        Securities Exchange Act of 1934), any 
                        of the State securities laws, or any 
                        regulation or order issued under such 
                        Federal or State securities laws; or
                          (ii) common law fraud, deceit, or 
                        manipulation in connection with the 
                        purchase or sale of any security; and
                  (B) results, before, on, or after the date on 
                which the petition was filed, from--
                          (i) any judgment, order, consent 
                        order, or decree entered in any Federal 
                        or State judicial or administrative 
                        proceeding;
                          (ii) any settlement agreement entered 
                        into by the debtor; or
                          (iii) any court or administrative 
                        order for any damages, fine, penalty, 
                        citation, restitutionary payment, 
                        disgorgement payment, attorney fee, 
                        cost, or other payment owed by the 
                        debtor.
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.
  (b) Notwithstanding subsection (a) of this section, a debt 
that was excepted from discharge under subsection (a)(1), 
(a)(3), or (a)(8) of this section, under section 17a(1), 
17a(3), or 17a(5) of the Bankruptcy Act, under section 439A of 
the Higher Education Act of 1965, or under section 733(g) of 
the Public Health Service Act in a prior case concerning the 
debtor under this title, or under the Bankruptcy Act, is 
dischargeable in a case under this title unless, by the terms 
of subsection (a) of this section, such debt is not 
dischargeable in the case under this title.
  (c)(1) Except as provided in subsection (a)(3)(B) of this 
section, the debtor shall be discharged from a debt of a kind 
specified in paragraph (2), (4), or (6) of subsection (a) of 
this section, unless, on request of the creditor to whom such 
debt is owed, and after notice and a hearing, the court 
determines such debt to be excepted from discharge under 
paragraph (2), (4), or (6), as the case may be, of subsection 
(a) of this section.
          (2) Paragraph (1) shall not apply in the case of a 
        Federal depository institutions regulatory agency 
        seeking, in its capacity as conservator, receiver, or 
        liquidating agent for an insured depository 
        institution, to recover a debt described in subsection 
        (a)(2), (a)(4), (a)(6), or (a)(11) owed to such 
        institution by an institution-affiliated party unless 
        the receiver, conservator, or liquidating agent was 
        appointed in time to reasonably comply, or for a 
        Federal depository institutions regulatory agency 
        acting in its corporate capacity as a successor to such 
        receiver, conservator, or liquidating agent to 
        reasonably comply, with subsection (a)(3)(B) as a 
        creditor of such institution-affiliated party with 
        respect to such debt.
  (d) If a creditor requests a determination of 
dischargeability of a consumer debt under subsection (a)(2) of 
this section, and such debt is discharged, the court shall 
grant judgment in favor of the debtor for the costs of, and a 
reasonable attorney's fee for, the proceeding if the court 
finds that the position of the creditor was not substantially 
justified, except that the court shall not award such costs and 
fees if special circumstances would make the award unjust.
  (e) Any institution-affiliated party of an insured depository 
institution shall be considered to be acting in a fiduciary 
capacity with respect to the purposes of subsection (a)(4) or 
(11).

Sec. 524. Effect of discharge

  (a) A discharge in a case under this title--
          (1) voids any judgment at any time obtained, to the 
        extent that such judgment is a determination of the 
        personal liability of the debtor with respect to any 
        debt discharged under section 727, 944, 1141, 1192, 
        1228, or 1328 of this title, whether or not discharge 
        of such debt is waived;
          (2) operates as an injunction against the 
        commencement or continuation of an action, the 
        employment of process, or an act, to collect, recover 
        or offset any such debt as a personal liability of the 
        debtor, whether or not discharge of such debt is 
        waived; and
          (3) operates as an injunction against the 
        commencement or continuation of an action, the 
        employment of process, or an act, to collect or recover 
        from, or offset against, property of the debtor of the 
        kind specified in section 541(a)(2) of this title that 
        is acquired after the commencement of the case, on 
        account of any allowable community claim, except a 
        community claim that is excepted from discharge under 
        section 523, 1192, 1228(a)(1), or 1328(a)(1), or that 
        would be so excepted, determined in accordance with the 
        provisions of sections 523(c) and 523(d) of this title, 
        in a case concerning the debtor's spouse commenced on 
        the date of the filing of the petition in the case 
        concerning the debtor, whether or not discharge of the 
        debt based on such community claim is waived.
  (b) Subsection (a)(3) of this section does not apply if--
          (1)(A) the debtor's spouse is a debtor in a case 
        under this title, or a bankrupt or a debtor in a case 
        under the Bankruptcy Act, commenced within six years of 
        the date of the filing of the petition in the case 
        concerning the debtor; and
                  (B) the court does not grant the debtor's 
                spouse a discharge in such case concerning the 
                debtor's spouse; or
          (2)(A) the court would not grant the debtor's spouse 
        a discharge in a case under chapter 7 of this title 
        concerning such spouse commenced on the date of the 
        filing of the petition in the case concerning the 
        debtor; and
                  (B) a determination that the court would not 
                so grant such discharge is made by the 
                bankruptcy court within the time and in the 
                manner provided for a determination under 
                section 727 of this title of whether a debtor 
                is granted a discharge.
  (c) An agreement between a holder of a claim and the debtor, 
the consideration for which, in whole or in part, is based on a 
debt that is dischargeable in a case under this title is 
enforceable only to any extent enforceable under applicable 
nonbankruptcy law, whether or not discharge of such debt is 
waived, only if--
          (1) such agreement was made before the granting of 
        the discharge under section 727, 1141, 1192, 1228, or 
        1328 of this title;
          (2) the debtor received the disclosures described in 
        subsection (k) at or before the time at which the 
        debtor signed the agreement;
          (3) such agreement has been filed with the court and, 
        if applicable, accompanied by a declaration or an 
        affidavit of the attorney that represented the debtor 
        during the course of negotiating an agreement under 
        this subsection, which states that--
                  (A) such agreement represents a fully 
                informed and voluntary agreement by the debtor;
                  (B) such agreement does not impose an undue 
                hardship on the debtor or a dependent of the 
                debtor; and
                  (C) the attorney fully advised the debtor of 
                the legal effect and consequences of--
                          (i) an agreement of the kind 
                        specified in this subsection; and
                          (ii) any default under such an 
                        agreement;
          (4) the debtor has not rescinded such agreement at 
        any time prior to discharge or within sixty days after 
        such agreement is filed with the court, whichever 
        occurs later, by giving notice of rescission to the 
        holder of such claim;
          (5) the provisions of subsection (d) of this section 
        have been complied with; and
          (6)(A) in a case concerning an individual who was not 
        represented by an attorney during the course of 
        negotiating an agreement under this subsection, the 
        court approves such agreement as--
                          (i) not imposing an undue hardship on 
                        the debtor or a dependent of the 
                        debtor; and
                          (ii) in the best interest of the 
                        debtor.
                  (B) Subparagraph (A) shall not apply to the 
                extent that such debt is a consumer debt 
                secured by real property.
  (d) In a case concerning an individual, when the court has 
determined whether to grant or not to grant a discharge under 
section 727, 1141, 1192, 1228, or 1328 of this title, the court 
may hold a hearing at which the debtor shall appear in person. 
At any such hearing, the court shall inform the debtor that a 
discharge has been granted or the reason why a discharge has 
not been granted. If a discharge has been granted and if the 
debtor desires to make an agreement of the kind specified in 
subsection (c) of this section and was not represented by an 
attorney during the course of negotiating such agreement, then 
the court shall hold a hearing at which the debtor shall appear 
in person and at such hearing the court shall--
          (1) inform the debtor--
                  (A) that such an agreement is not required 
                under this title, under nonbankruptcy law, or 
                under any agreement not made in accordance with 
                the provisions of subsection (c) of this 
                section; and
                  (B) of the legal effect and consequences of--
                          (i) an agreement of the kind 
                        specified in subsection (c) of this 
                        section; and
                          (ii) a default under such an 
                        agreement; and
          (2) determine whether the agreement that the debtor 
        desires to make complies with the requirements of 
        subsection (c)(6) of this section, if the consideration 
        for such agreement is based in whole or in part on a 
        consumer debt that is not secured by real property of 
        the debtor.
  (e) Except as provided in subsection (a)(3) of this section, 
discharge of a debt of the debtor does not affect the liability 
of any other entity on, or the property of any other entity 
for, such debt.
  (f) Nothing contained in subsection (c) or (d) of this 
section prevents a debtor from voluntarily repaying any debt.
  (g)(1)(A) After notice and hearing, a court that enters an 
order confirming a plan of reorganization under chapter 11 may 
issue, in connection with such order, an injunction in 
accordance with this subsection to supplement the injunctive 
effect of a discharge under this section.
                  (B) An injunction may be issued under 
                subparagraph (A) to enjoin entities from taking 
                legal action for the purpose of directly or 
                indirectly collecting, recovering, or receiving 
                payment or recovery with respect to any claim 
                or demand that, under a plan of reorganization, 
                is to be paid in whole or in part by a trust 
                described in paragraph (2)(B)(i), except such 
                legal actions as are expressly allowed by the 
                injunction, the confirmation order, or the plan 
                of reorganization.
          (2)(A) Subject to subsection (h), if the requirements 
        of subparagraph (B) are met at the time an injunction 
        described in paragraph (1) is entered, then after entry 
        of such injunction, any proceeding that involves the 
        validity, application, construction, or modification of 
        such injunction, or of this subsection with respect to 
        such injunction, may be commenced only in the district 
        court in which such injunction was entered, and such 
        court shall have exclusive jurisdiction over any such 
        proceeding without regard to the amount in controversy.
  (B) The requirements of this subparagraph are that--
          (i) the injunction is to be implemented in connection 
        with a trust that, pursuant to the plan of 
        reorganization--
                  (I) is to assume the liabilities of a debtor 
                which at the time of entry of the order for 
                relief has been named as a defendant in 
                personal injury, wrongful death, or property-
                damage actions seeking recovery for damages 
                allegedly caused by the presence of, or 
                exposure to, asbestos or asbestos-containing 
                products;
                  (II) is to be funded in whole or in part by 
                the securities of 1 or more debtors involved in 
                such plan and by the obligation of such debtor 
                or debtors to make future payments, including 
                dividends;
                  (III) is to own, or by the exercise of rights 
                granted under such plan would be entitled to 
                own if specified contingencies occur, a 
                majority of the voting shares of--
                          (aa) each such debtor;
                          (bb) the parent corporation of each 
                        such debtor; or
                          (cc) a subsidiary of each such debtor 
                        that is also a debtor; and
                  (IV) is to use its assets or income to pay 
                claims and demands; and
          (ii) subject to subsection (h), the court determines 
        that--
                  (I) the debtor is likely to be subject to 
                substantial future demands for payment arising 
                out of the same or similar conduct or events 
                that gave rise to the claims that are addressed 
                by the injunction;
                  (II) the actual amounts, numbers, and timing 
                of such future demands cannot be determined;
                  (III) pursuit of such demands outside the 
                procedures prescribed by such plan is likely to 
                threaten the plan's purpose to deal equitably 
                with claims and future demands;
                  (IV) as part of the process of seeking 
                confirmation of such plan--
                          (aa) the terms of the injunction 
                        proposed to be issued under paragraph 
                        (1)(A), including any provisions 
                        barring actions against third parties 
                        pursuant to paragraph (4)(A), are set 
                        out in such plan and in any disclosure 
                        statement supporting the plan; and
                          (bb) a separate class or classes of 
                        the claimants whose claims are to be 
                        addressed by a trust described in 
                        clause (i) is established and votes, by 
                        at least 75 percent of those voting, in 
                        favor of the plan; and
                  (V) subject to subsection (h), pursuant to 
                court orders or otherwise, the trust will 
                operate through mechanisms such as structured, 
                periodic, or supplemental payments, pro rata 
                distributions, matrices, or periodic review of 
                estimates of the numbers and values of present 
                claims and future demands, or other comparable 
                mechanisms, that provide reasonable assurance 
                that the trust will value, and be in a 
                financial position to pay, present claims and 
                future demands that involve similar claims in 
                substantially the same manner.
          (3)(A) If the requirements of paragraph (2)(B) are 
        met and the order confirming the plan of reorganization 
        was issued or affirmed by the district court that has 
        jurisdiction over the reorganization case, then after 
        the time for appeal of the order that issues or affirms 
        the plan--
          (i) the injunction shall be valid and enforceable and 
        may not be revoked or modified by any court except 
        through appeal in accordance with paragraph (6);
          (ii) no entity that pursuant to such plan or 
        thereafter becomes a direct or indirect transferee of, 
        or successor to any assets of, a debtor or trust that 
        is the subject of the injunction shall be liable with 
        respect to any claim or demand made against such entity 
        by reason of its becoming such a transferee or 
        successor; and
          (iii) no entity that pursuant to such plan or 
        thereafter makes a loan to such a debtor or trust or to 
        such a successor or transferee shall, by reason of 
        making the loan, be liable with respect to any claim or 
        demand made against such entity, nor shall any pledge 
        of assets made in connection with such a loan be upset 
        or impaired for that reason;
  (B) Subparagraph (A) shall not be construed to--
          (i) imply that an entity described in subparagraph 
        (A)(ii) or (iii) would, if this paragraph were not 
        applicable, necessarily be liable to any entity by 
        reason of any of the acts described in subparagraph 
        (A);
          (ii) relieve any such entity of the duty to comply 
        with, or of liability under, any Federal or State law 
        regarding the making of a fraudulent conveyance in a 
        transaction described in subparagraph (A)(ii) or (iii); 
        or
          (iii) relieve a debtor of the debtor's obligation to 
        comply with the terms of the plan of reorganization, or 
        affect the power of the court to exercise its authority 
        under sections 1141 and 1142 to compel the debtor to do 
        so.
          (4)(A)(i) Subject to subparagraph (B), an injunction 
        described in paragraph (1) shall be valid and 
        enforceable against all entities that it addresses.
  (ii) Notwithstanding the provisions of section 524(e), such 
an injunction may bar any action directed against a third party 
who is identifiable from the terms of such injunction (by name 
or as part of an identifiable group) and is alleged to be 
directly or indirectly liable for the conduct of, claims 
against, or demands on the debtor to the extent such alleged 
liability of such third party arises by reason of--
          (I) the third party's ownership of a financial 
        interest in the debtor, a past or present affiliate of 
        the debtor, or a predecessor in interest of the debtor;
          (II) the third party's involvement in the management 
        of the debtor or a predecessor in interest of the 
        debtor, or service as an officer, director or employee 
        of the debtor or a related party;
          (III) the third party's provision of insurance to the 
        debtor or a related party; or
          (IV) the third party's involvement in a transaction 
        changing the corporate structure, or in a loan or other 
        financial transaction affecting the financial 
        condition, of the debtor or a related party, including 
        but not limited to--
                  (aa) involvement in providing financing (debt 
                or equity), or advice to an entity involved in 
                such a transaction; or
                  (bb) acquiring or selling a financial 
                interest in an entity as part of such a 
                transaction.
  (iii) As used in this subparagraph, the term ``related 
party'' means--
          (I) a past or present affiliate of the debtor;
          (II) a predecessor in interest of the debtor; or
          (III) any entity that owned a financial interest in--
                  (aa) the debtor;
                  (bb) a past or present affiliate of the 
                debtor; or
                  (cc) a predecessor in interest of the debtor.
  (B) Subject to subsection (h), if, under a plan of 
reorganization, a kind of demand described in such plan is to 
be paid in whole or in part by a trust described in paragraph 
(2)(B)(i) in connection with which an injunction described in 
paragraph (1) is to be implemented, then such injunction shall 
be valid and enforceable with respect to a demand of such kind 
made, after such plan is confirmed, against the debtor or 
debtors involved, or against a third party described in 
subparagraph (A)(ii), if--
          (i) as part of the proceedings leading to issuance of 
        such injunction, the court appoints a legal 
        representative for the purpose of protecting the rights 
        of persons that might subsequently assert demands of 
        such kind, and
          (ii) the court determines, before entering the order 
        confirming such plan, that identifying such debtor or 
        debtors, or such third party (by name or as part of an 
        identifiable group), in such injunction with respect to 
        such demands for purposes of this subparagraph is fair 
        and equitable with respect to the persons that might 
        subsequently assert such demands, in light of the 
        benefits provided, or to be provided, to such trust on 
        behalf of such debtor or debtors or such third party.
          (5) In this subsection, the term ``demand'' means a 
        demand for payment, present or future, that--
          (A) was not a claim during the proceedings leading to 
        the confirmation of a plan of reorganization;
          (B) arises out of the same or similar conduct or 
        events that gave rise to the claims addressed by the 
        injunction issued under paragraph (1); and
          (C) pursuant to the plan, is to be paid by a trust 
        described in paragraph (2)(B)(i).
          (6) Paragraph (3)(A)(i) does not bar an action taken 
        by or at the direction of an appellate court on appeal 
        of an injunction issued under paragraph (1) or of the 
        order of confirmation that relates to the injunction.
          (7) This subsection does not affect the operation of 
        section 1144 or the power of the district court to 
        refer a proceeding under section 157 of title 28 or any 
        reference of a proceeding made prior to the date of the 
        enactment of this subsection.
  (h) Application to Existing Injunctions.--For purposes of 
subsection (g)--
          (1) subject to paragraph (2), if an injunction of the 
        kind described in subsection (g)(1)(B) was issued 
        before the date of the enactment of this Act, as part 
        of a plan of reorganization confirmed by an order 
        entered before such date, then the injunction shall be 
        considered to meet the requirements of subsection 
        (g)(2)(B) for purposes of subsection (g)(2)(A), and to 
        satisfy subsection (g)(4)(A)(ii), if--
                  (A) the court determined at the time the plan 
                was confirmed that the plan was fair and 
                equitable in accordance with the requirements 
                of section 1129(b);
                  (B) as part of the proceedings leading to 
                issuance of such injunction and confirmation of 
                such plan, the court had appointed a legal 
                representative for the purpose of protecting 
                the rights of persons that might subsequently 
                assert demands described in subsection 
                (g)(4)(B) with respect to such plan; and
                  (C) such legal representative did not object 
                to confirmation of such plan or issuance of 
                such injunction; and
          (2) for purposes of paragraph (1), if a trust 
        described in subsection (g)(2)(B)(i) is subject to a 
        court order on the date of the enactment of this Act 
        staying such trust from settling or paying further 
        claims--
                  (A) the requirements of subsection 
                (g)(2)(B)(ii)(V) shall not apply with respect 
                to such trust until such stay is lifted or 
                dissolved; and
                  (B) if such trust meets such requirements on 
                the date such stay is lifted or dissolved, such 
                trust shall be considered to have met such 
                requirements continuously from the date of the 
                enactment of this Act.
  (i) The willful failure of a creditor to credit payments 
received under a plan confirmed under this title, unless the 
order confirming the plan is revoked, the plan is 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.
  (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 specified in subsection (c), statement, declaration, 
motion and order described, respectively, in paragraphs (4) 
through (8), and shall be the only disclosures required in 
connection with entering into such agreement.
          (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 of debt that the debtor 
                agrees to reaffirm by entering into an 
                agreement of the kind specified in subsection 
                (c), and
                  (ii) the total of any fees and costs accrued 
                as of the date of the disclosure statement, 
                related to such total amount.
          (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 an extension of credit under an 
                open end credit plan, as the terms ``credit'' 
                and ``open end credit plan'' are defined in 
                section 103 of the Truth in Lending Act, then--
                          (I) the annual percentage rate 
                        determined under paragraphs (5) and (6) 
                        of section 127(b) of the Truth in 
                        Lending Act, as applicable, as 
                        disclosed to the debtor in the most 
                        recent periodic statement prior to 
                        entering into an agreement of the kind 
                        specified in subsection (c) or, if no 
                        such periodic statement has been given 
                        to 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 
                        to 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); or
                  (ii) if, at the time the petition is filed, 
                the debt is an extension of credit other than 
                under an open end credit plan, as the terms 
                ``credit'' and ``open end credit plan'' are 
                defined in section 103 of the Truth in Lending 
                Act, then--
                          (I) the annual percentage rate under 
                        section 128(a)(4) of the Truth in 
                        Lending Act, as disclosed to the debtor 
                        in the most recent disclosure statement 
                        given to the debtor prior to the 
                        entering into an agreement of the kind 
                        specified in subsection (c) with 
                        respect to the debt, or, if no such 
                        disclosure statement was given to the 
                        debtor, the annual percentage rate as 
                        it would have been so disclosed at the 
                        time the disclosure statement is given 
                        to 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 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, 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 debts the debtor is 
        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 agreement 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 debts 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 reaffirming a 
        debt or what the law requires, consult with the 
        attorney who helped you negotiate this agreement 
        reaffirming a debt. If you don't have an attorney 
        helping you, the judge will explain the effect of your 
        reaffirming a debt when the hearing on the 
        reaffirmation agreement 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 your 
                        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 
                        your 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 your 
                        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 
                        your 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 reaffirmation 
                        agreement. The bankruptcy court must 
                        approve your reaffirmation agreement as 
                        consistent with your best interests, 
                        except that no court approval is 
                        required if your reaffirmation 
                        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 (cancel) your 
                        reaffirmation agreement. You may 
                        rescind (cancel) your reaffirmation 
                        agreement at any time before the 
                        bankruptcy court enters a discharge 
                        order, or before the expiration of the 
                        60-day period that begins on the date 
                        your reaffirmation agreement is filed 
                        with the court, whichever occurs later. 
                        To rescind (cancel) your reaffirmation 
                        agreement, you must notify the creditor 
                        that your reaffirmation agreement is 
                        rescinded (or 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 
                        case. That means that if you default on 
                        your reaffirmed debt after your 
                        bankruptcy case 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 
                        that 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 property securing the 
                        lien 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 must 
                        make a single payment to the creditor 
                        equal to the amount of the allowed 
                        secured claim, 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 your 
                        reaffirmation agreement, your 
                        reaffirmation agreement becomes 
                        effective upon filing with the 
                        court.''.
          (4) The form of such agreement required under this 
        paragraph shall consist of the following:
          ``Part B: Reaffirmation Agreement. I (we) agree to 
        reaffirm the debts 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 these debts:
          ``Accepted by creditor:
           ``Date of creditor acceptance:''.
          (5) The declaration shall consist of the following:
          (A) The following certification:
          ``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; 
        (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) If a presumption of undue hardship has been 
        established with respect to such agreement, such 
        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 such 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 reaffirmation 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 an attorney and is 
reaffirming a debt owed to a creditor defined in section 
19(b)(1)(A)(iv) of the Federal Reserve Act, 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 reaffirmation 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 that may be used if approval of such 
        agreement by the court is required in order for it to 
        be effective, shall be signed and dated by the movant 
        and shall consist of the following:
          ``Part E: Motion for Court Approval (To be completed 
        only if the debtor is not represented by an attorney.). 
        I (we), the debtor(s), affirm the following to be true 
        and correct:
          ``I am not represented by an attorney in connection 
        with this reaffirmation agreement.
          ``I believe this reaffirmation agreement is in my 
        best interest based on the income and expenses I have 
        disclosed in my Statement in Support of this 
        reaffirmation agreement, 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 
        such agreement, shall consist of the following:
           ``Court Order: The court grants the debtor's motion 
        and approves the reaffirmation agreement described 
        above.''.
  (l) Notwithstanding any other provision of this title the 
following shall apply:
          (1) A creditor may accept payments from a debtor 
        before and after the filing of an agreement of the kind 
        specified in subsection (c) with the court.
          (2) A creditor may accept payments from a debtor 
        under such agreement that 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 an agreement of the kind specified 
in subsection (c) is filed with the court (or such additional 
period as the court, after notice and a hearing and for cause, 
orders before the expiration of such period), it shall be 
presumed that such 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 such 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 that identifies 
additional sources of funds to make the payments as agreed upon 
under the terms of such agreement. If the presumption is not 
rebutted to the satisfaction of the court, the court may 
disapprove such agreement. No agreement shall be disapproved 
without notice and a 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.

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SUBCHAPTER III--THE ESTATE

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Sec. 547. Preferences

  (a) In this section--
          (1) ``inventory'' means personal property leased or 
        furnished, held for sale or lease, or to be furnished 
        under a contract for service, raw materials, work in 
        process, or materials used or consumed in a business, 
        including farm products such as crops or livestock, 
        held for sale or lease;
          (2) ``new value'' means money or money's worth in 
        goods, services, or new credit, or release by a 
        transferee of property previously transferred to such 
        transferee in a transaction that is neither void nor 
        voidable by the debtor or the trustee under any 
        applicable law, including proceeds of such property, 
        but does not include an obligation substituted for an 
        existing obligation;
          (3) ``receivable'' means right to payment, whether or 
        not such right has been earned by performance; and
          (4) a debt for a tax is incurred on the day when such 
        tax is last payable without penalty, including any 
        extension.
  (b) Except as provided in subsections (c) and (i) of this 
section, the trustee may, based on reasonable due diligence in 
the circumstances of the case and taking into account a party's 
known or reasonably knowable affirmative defenses under 
subsection (c), avoid any transfer of an interest of the debtor 
in property--
          (1) to or for the benefit of a creditor;
          (2) for or on account of an antecedent debt owed by 
        the debtor before such transfer was made;
          (3) made while the debtor was insolvent;
          (4) made--
                  (A) on or within 90 days before the date of 
                the filing of the petition; or
                  (B) between ninety days and one year before 
                the date of the filing of the petition, if such 
                creditor at the time of such transfer was an 
                insider; and
          (5) that enables such creditor to receive more than 
        such creditor would receive if--
                  (A) the case were a case under chapter 7 of 
                this title;
                  (B) the transfer had not been made; and
                  (C) such creditor received payment of such 
                debt to the extent provided by the provisions 
                of this title.
  (c) The trustee may not avoid under this section a transfer--
          (1) to the extent that such transfer was--
                  (A) intended by the debtor and the creditor 
                to or for whose benefit such transfer was made 
                to be a contemporaneous exchange for new value 
                given to the debtor; and
                  (B) in fact a substantially contemporaneous 
                exchange;
          (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;
          (3) that creates a security interest in property 
        acquired by the debtor--
                  (A) to the extent such security interest 
                secures new value that was--
                          (i) given at or after the signing of 
                        a security agreement that contains a 
                        description of such property as 
                        collateral;
                          (ii) given by or on behalf of the 
                        secured party under such agreement;
                          (iii) given to enable the debtor to 
                        acquire such property; and
                          (iv) in fact used by the debtor to 
                        acquire such property; and
                  (B) that is perfected on or before 30 days 
                after the debtor receives possession of such 
                property;
          (4) to or for the benefit of a creditor, to the 
        extent that, after such transfer, such creditor gave 
        new value to or for the benefit of the debtor--
                  (A) not secured by an otherwise unavoidable 
                security interest; and
                  (B) on account of which new value the debtor 
                did not make an otherwise unavoidable transfer 
                to or for the benefit of such creditor;
          (5) that creates a perfected security interest in 
        inventory or a receivable or the proceeds of either, 
        except to the extent that the aggregate of all such 
        transfers to the transferee caused a reduction, as of 
        the date of the filing of the petition and to the 
        prejudice of other creditors holding unsecured claims, 
        of any amount by which the debt secured by such 
        security interest exceeded the value of all security 
        interests for such debt on the later of--
                  (A)(i) with respect to a transfer to which 
                subsection (b)(4)(A) of this section applies, 
                90 days before the date of the filing of the 
                petition; or
                          (ii) with respect to a transfer to 
                        which subsection (b)(4)(B) of this 
                        section applies, one year before the 
                        date of the filing of the petition; or
                  (B) the date on which new value was first 
                given under the security agreement creating 
                such security interest;
          (6) that is the fixing of a statutory lien that is 
        not avoidable under section 545 of this title;
          (7) to the extent such transfer was a bona fide 
        payment of a debt for a domestic support obligation;
          (8) if, in a case filed by an individual debtor whose 
        debts are primarily consumer debts, the aggregate value 
        of all property that constitutes or is affected by such 
        transfer is less than $600; or
          (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.
  (d) The trustee may avoid a transfer of an interest in 
property of the debtor transferred to or for the benefit of a 
surety to secure reimbursement of such a surety that furnished 
a bond or other obligation to dissolve a judicial lien that 
would have been avoidable by the trustee under subsection (b) 
of this section. The liability of such surety under such bond 
or obligation shall be discharged to the extent of the value of 
such property recovered by the trustee or the amount paid to 
the trustee.
  (e)(1) For the purposes of this section--
                  (A) a transfer of real property other than 
                fixtures, but including the interest of a 
                seller or purchaser under a contract for the 
                sale of real property, is perfected when a bona 
                fide purchaser of such property from the debtor 
                against whom applicable law permits such 
                transfer to be perfected cannot acquire an 
                interest that is superior to the interest of 
                the transferee; and
                  (B) a transfer of a fixture or property other 
                than real property is perfected when a creditor 
                on a simple contract cannot acquire a judicial 
                lien that is superior to the interest of the 
                transferee.
          (2) For the purposes of this section, except as 
        provided in paragraph (3) of this subsection, a 
        transfer is made--
          (A) at the time such transfer takes effect between 
        the transferor and the transferee, if such transfer is 
        perfected at, or within 30 days after, such time, 
        except as provided in subsection (c)(3)(B);
          (B) at the time such transfer is perfected, if such 
        transfer is perfected after such 30 days; or
          (C) immediately before the date of the filing of the 
        petition, if such transfer is not perfected at the 
        later of--
                  (i) the commencement of the case; or
                  (ii) 30 days after such transfer takes effect 
                between the transferor and the transferee.
          (3) For the purposes of this section, a transfer is 
        not made until the debtor has acquired rights in the 
        property transferred.
  (f) For the purposes of this section, the debtor is presumed 
to have been insolvent on and during the 90 days immediately 
preceding the date of the filing of the petition.
  (g) For the purposes of this section, the trustee has the 
burden of proving the avoidability of a transfer under 
subsection (b) of this section, and the creditor or party in 
interest against whom recovery or avoidance is sought has the 
burden of proving the nonavoidability of a transfer under 
subsection (c) of this section.
  (h) The trustee may not avoid a transfer if such transfer was 
made as a part of an alternative repayment schedule between the 
debtor and any creditor of the debtor created by an approved 
nonprofit budget and credit counseling agency.
  (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.

           *       *       *       *       *       *       *


Sec. 557. Expedited determination of interests in, and abandonment or 
                    other disposition of grain assets

  (a) This section applies only in a case concerning a debtor 
that owns or operates a grain storage facility and only with 
respect to grain and the proceeds of grain. This section does 
not affect the application of any other section of this title 
to property other than grain and proceeds of grain.
  (b) In this section--
          (1) ``grain'' means wheat, corn, flaxseed, grain 
        sorghum, barley, oats, rye, soybeans, other dry edible 
        beans, or rice;
          (2) ``grain storage facility'' means a site or 
        physical structure regularly used to store grain for 
        producers, or to store grain acquired from producers 
        for resale; and
          (3) ``producer'' means an entity which engages in the 
        growing of grain.
  (c)(1) Notwithstanding sections 362, 363, 365, and 554 of 
this title, on the court's own motion the court may, and on the 
request of the trustee or an entity that claims an interest in 
grain or the proceeds of grain the court shall, expedite the 
procedures for the determination of interests in and the 
disposition of grain and the proceeds of grain, by shortening 
to the greatest extent feasible such time periods as are 
otherwise applicable for such procedures and by establishing, 
by order, a timetable having a duration of not to exceed 120 
days for the completion of the applicable procedure specified 
in subsection (d) of this section. Such time periods and such 
timetable may be modified by the court, for cause, in 
accordance with subsection (f) of this section.
          (2) The court shall determine the extent to which 
        such time periods shall be shortened, based upon--
          (A) any need of an entity claiming an interest in 
        such grain or the proceeds of grain for a prompt 
        determination of such interest;
          (B) any need of such entity for a prompt disposition 
        of such grain;
          (C) the market for such grain;
          (D) the conditions under which such grain is stored;
          (E) the costs of continued storage or disposition of 
        such grain;
          (F) the orderly administration of the estate;
          (G) the appropriate opportunity for an entity to 
        assert an interest in such grain; and
          (H) such other considerations as are relevant to the 
        need to expedite such procedures in the case.
  (d) The procedures that may be expedited under subsection (c) 
of this section include--
          (1) the filing of and response to--
                  (A) a claim of ownership;
                  (B) a proof of claim;
                  (C) a request for abandonment;
                  (D) a request for relief from the stay of 
                action against property under section 362(a) of 
                this title;
                  (E) a request for determination of secured 
                status;
                  (F) a request for determination of whether 
                such grain or the proceeds of grain--
                          (i) is property of the estate;
                          (ii) must be turned over to the 
                        estate; or
                          (iii) may be used, sold, or leased; 
                        and
                  (G) any other request for determination of an 
                interest in such grain or the proceeds of 
                grain;
          (2) the disposition of such grain or the proceeds of 
        grain, before or after determination of interests in 
        such grain or the proceeds of grain, by way of--
                  (A) sale of such grain;
                  (B) abandonment;
                  (C) distribution; or
                  (D) such other method as is equitable in the 
                case;
          (3) subject to sections 701, 702, 703, 1104, 1183, 
        1202, and 1302 of this title, the appointment of a 
        trustee or examiner and the retention and compensation 
        of any professional person required to assist with 
        respect to matters relevant to the determination of 
        interests in or disposition of such grain or the 
        proceeds of grain; and
          (4) the determination of any dispute concerning a 
        matter specified in paragraph (1), (2), or (3) of this 
        subsection.
  (e)(1) Any governmental unit that has regulatory jurisdiction 
over the operation or liquidation of the debtor or the debtor's 
business shall be given notice of any request made or order 
entered under subsection (c) of this section.
          (2) Any such governmental unit may raise, and may 
        appear and be heard on, any issue relating to grain or 
        the proceeds of grain in a case in which a request is 
        made, or an order is entered, under subsection (c) of 
        this section.
          (3) The trustee shall consult with such governmental 
        unit before taking any action relating to the 
        disposition of grain in the possession, custody, or 
        control of the debtor or the estate.
  (f) The court may extend the period for final disposition of 
grain or the proceeds of grain under this section beyond 120 
days if the court finds that--
          (1) the interests of justice so require in light of 
        the complexity of the case; and
          (2) the interests of those claimants entitled to 
        distribution of grain or the proceeds of grain will not 
        be materially injured by such additional delay.
  (g) Unless an order establishing an expedited procedure under 
subsection (c) of this section, or determining any interest in 
or approving any disposition of grain or the proceeds of grain, 
is stayed pending appeal--
          (1) the reversal or modification of such order on 
        appeal does not affect the validity of any procedure, 
        determination, or disposition that occurs before such 
        reversal or modification, whether or not any entity 
        knew of the pendency of the appeal; and
          (2) neither the court nor the trustee may delay, due 
        to the appeal of such order, any proceeding in the case 
        in which such order is issued.
  (h)(1) The trustee may recover from grain and the proceeds of 
grain the reasonable and necessary costs and expenses allowable 
under section 503(b) of this title attributable to preserving 
or disposing of grain or the proceeds of grain, but may not 
recover from such grain or the proceeds of grain any other 
costs or expenses.
          (2) Notwithstanding section 326(a) of this title, the 
        dollar amounts of money specified in such section 
        include the value, as of the date of disposition, of 
        any grain that the trustee distributes in kind.
  (i) In all cases where the quantity of a specific type of 
grain held by a debtor operating a grain storage facility 
exceeds ten thousand bushels, such grain shall be sold by the 
trustee and the assets thereof distributed in accordance with 
the provisions of this section.

           *       *       *       *       *       *       *


                       CHAPTER 11--REORGANIZATION

                SUBCHAPTER I--OFFICERS AND ADMINISTRATION

Sec.
1101. Definitions for this chapter.
     * * * * * * *

           SUBCHAPTER V--Small business debtor reorganization

1181. Inapplicability of other sections.
1182. Definitions.
1183. Trustee.
1184. Rights and powers of a debtor in possession.
1185. Removal of debtor in possession.
1186. Property of the estate.
1187. Duties and reporting requirements of debtors.
1188. Status conference.
1189. Filing of the plan.
1190. Contents of plan.
1191. Confirmation of plan.
1192. Discharge.
1193. Modification of plan.
1194. Payments.
1195. Transactions with professionals.

SUBCHAPTER I--OFFICERS AND ADMINISTRATION

           *       *       *       *       *       *       *


Sec. 1102. Creditors' and equity security holders' committees

  (a)(1) Except as provided in paragraph (3), as soon as 
practicable after the order for relief under chapter 11 of this 
title, the United States trustee shall appoint a committee of 
creditors holding unsecured claims and may appoint additional 
committees of creditors or of equity security holders as the 
United States trustee deems appropriate.
          (2) On request of a party in interest, the court may 
        order the appointment of additional committees of 
        creditors or of equity security holders if necessary to 
        assure adequate representation of creditors or of 
        equity security holders. The United States trustee 
        shall appoint any such committee.
  [(3) On request of a party in interest in a case in which the 
debtor is a small business debtor and for cause, the court may 
order that a committee of creditors not be appointed.]
          (3) Unless the court for cause orders otherwise, a 
        committee of creditors may not be appointed in a small 
        business case or a case under subchapter V of this 
        chapter.
          (4) On request of a party in interest and after 
        notice and a hearing, the court may order the United 
        States trustee to change the membership of a committee 
        appointed under this subsection, if the court 
        determines that the change is necessary to ensure 
        adequate representation of creditors or equity security 
        holders. The court may order the United States trustee 
        to increase the number of members of a committee to 
        include a creditor that is a small business concern (as 
        described in section 3(a)(1) of the Small Business 
        Act), if the court determines that the creditor holds 
        claims (of the kind represented by the committee) the 
        aggregate amount of which, in comparison to the annual 
        gross revenue of that creditor, is disproportionately 
        large.
  (b)(1) A committee of creditors appointed under subsection 
(a) of this section shall ordinarily consist of the persons, 
willing to serve, that hold the seven largest claims against 
the debtor of the kinds represented on such committee, or of 
the members of a committee organized by creditors before the 
commencement of the case under this chapter, if such committee 
was fairly chosen and is representative of the different kinds 
of claims to be represented.
          (2) A committee of equity security holders appointed 
        under subsection (a)(2) of this section shall 
        ordinarily consist of the persons, willing to serve, 
        that hold the seven largest amounts of equity 
        securities of the debtor of the kinds represented on 
        such committee.
          (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).

           *       *       *       *       *       *       *


SUBCHAPTER III--POSTCONFIRMATION MATTERS

           *       *       *       *       *       *       *


Sec. 1146. Special tax provisions

  (a) The issuance, transfer, or exchange of a security, or the 
making or delivery of an instrument of transfer under a plan 
confirmed under section 1129 or 1191 of this title, may not be 
taxed under any law imposing a stamp tax or similar tax.
  (b) The court may authorize the proponent of a plan to 
request a determination, limited to questions of law, by a 
State or local governmental unit charged with responsibility 
for collection or determination of a tax on or measured by 
income, of the tax effects, under section 346 of this title and 
under the law imposing such tax, of the plan. In the event of 
an actual controversy, the court may declare such effects after 
the earlier of--
          (1) the date on which such governmental unit responds 
        to the request under this subsection; or
          (2) 270 days after such request.

           *       *       *       *       *       *       *


           SUBCHAPTER V--SMALL BUSINESS DEBTOR REORGANIZATION

Sec. 1181. Inapplicability of other sections

  (a) In General.--Sections 105(d), 1101(1), 1104, 1105, 1106, 
1107, 1108, 1115, 1116, 1121, 1123(a)(8), 1123(c), 1127, 
1129(a)(15), 1129(b), 1129(c), 1129(e), and 1141(d)(5) of this 
title do not apply in a case under this subchapter.
  (b) Court Authority.--Unless the court for cause orders 
otherwise, paragraphs (1), (2), and (4) of section 1102(a) and 
sections 1102(b), 1103, and 1125 of this title do not apply in 
a case under this subchapter.
  (c) Special Rule for Discharge.--If a plan is confirmed under 
section 1191(b) of this title, section 1141(d) of this title 
shall not apply, except as provided in section 1192 of this 
title.

Sec. 1182. Definitions

  In this subchapter:
          (1) Debtor.--The term ``debtor'' means a small 
        business debtor.
          (2) Debtor in possession.--The term ``debtor in 
        possession'' means the debtor, unless removed as debtor 
        in possession under section 1185(a) of this title.

Sec. 1183. Trustee

  (a) In General.--If the United States trustee has appointed 
an individual under section 586(b) of title 28 to serve as 
standing trustee in cases under this subchapter, and if such 
individual qualifies as a trustee under section 322 of this 
title, then that individual shall serve as trustee in any case 
under this subchapter. Otherwise, the United States trustee 
shall appoint 1 disinterested person to serve as trustee in the 
case or the United States trustee may serve as trustee in the 
case, as necessary.
  (b) Duties.--The trustee shall--
          (1) perform the duties specified in paragraphs (2), 
        (5), (6), (7), and (9) of section 704(a) of this title;
          (2) perform the duties specified in paragraphs (3), 
        (4), and (7) of section 1106(a) of this title, if the 
        court, for cause and on request of a party in interest, 
        the trustee, or the United States trustee, so orders;
          (3) appear and be heard at the status conference 
        under section 1188 of this title and any hearing that 
        concerns--
                  (A) the value of property subject to a lien;
                  (B) confirmation of a plan filed under this 
                subchapter;
                  (C) modification of the plan after 
                confirmation; or
                  (D) the sale of property of the estate;
          (4) ensure that the debtor commences making timely 
        payments required by a plan confirmed under this 
        subchapter;
          (5) if the debtor ceases to be a debtor in 
        possession, perform the duties specified in section 
        704(a)(8) and paragraphs (1), (2), and (6) of section 
        1106(a) of this title, including operating the business 
        of the debtor;
          (6) if there is a claim for a domestic support 
        obligation with respect to the debtor, perform the 
        duties specified in section 704(c) of this title; and
          (7) facilitate the development of a consensual plan 
        of reorganization.
  (c) Termination of Trustee Service.--
          (1) In general.--If the plan of the debtor is 
        confirmed under section 1191(a) of this title, the 
        service of the trustee in the case shall terminate when 
        the plan has been substantially consummated, except 
        that the United States trustee may reappoint a trustee 
        as needed for performance of duties under subsection 
        (b)(3)(C) of this section and section 1185(a) of this 
        title.
          (2) Service of notice of substantial consummation.--
        Not later than 14 days after the plan of the debtor is 
        substantially consummated, the debtor shall file with 
        the court and serve on the trustee, the United States 
        trustee, and all parties in interest notice of such 
        substantial consummation.

Sec. 1184. Rights and powers of a debtor in possession

  Subject to such limitations or conditions as the court may 
prescribe, a debtor in possession shall have all the rights, 
other than the right to compensation under section 330 of this 
title, and powers, and shall perform all functions and duties, 
except the duties specified in paragraphs (2), (3), and (4) of 
section 1106(a) of this title, of a trustee serving in a case 
under this chapter, including operating the business of the 
debtor.

Sec. 1185. Removal of debtor in possession

  (a) In General.--On request of a party in interest, and after 
notice and a hearing, the court shall order that the debtor 
shall not be a debtor in possession for cause, including fraud, 
dishonesty, incompetence, or gross mismanagement of the affairs 
of the debtor, either before or after the date of commencement 
of the case, or for failure to perform the obligations of the 
debtor under a plan confirmed under this subchapter.
  (b) Reinstatement.--On request of a party in interest, and 
after notice and a hearing, the court may reinstate the debtor 
in possession.

Sec. 1186. Property of the estate

  (a) Inclusions.--If a plan is confirmed under section 1191(b) 
of this title, property of the estate includes, in addition to 
the property specified in section 541 of this title--
          (1) all property of the kind specified in that 
        section that the debtor acquires after the date of 
        commencement of the case but before the case is closed, 
        dismissed, or converted to a case under chapter 7, 12, 
        or 13 of this title, whichever occurs first; and
          (2) earnings from services performed by the debtor 
        after the date of commencement of the case but before 
        the case is closed, dismissed, or converted to a case 
        under chapter 7, 12, or 13 of this title, whichever 
        occurs first.
  (b) Debtor Remaining in Possession.--Except as provided in 
section 1185 of this title, a plan confirmed under this 
subchapter, or an order confirming a plan under this 
subchapter, the debtor shall remain in possession of all 
property of the estate.

Sec. 1187. Duties and reporting requirements of debtors

  (a) Filing Requirements.--Upon electing to be a debtor under 
this subchapter, the debtor shall file the documents required 
by subparagraphs (A) and (B) of section 1116(1) of this title.
  (b) Other Applicable Provisions.--A debtor, in addition to 
the duties provided in this title and as otherwise required by 
law, shall comply with the requirements of section 308 and 
paragraphs (2), (3), (4), (5), (6), and (7) of section 1116 of 
this title.
  (c) Separate Disclosure Statement Exemption.--If the court 
orders under section 1181(b) of this title that section 1125 of 
this title applies, section 1125(f) of this title shall apply.

Sec. 1188. Status conference

  (a) In General.--Except as provided in subsection (b), not 
later than 60 days after the entry of the order for relief 
under this chapter, the court shall hold a status conference to 
further the expeditious and economical resolution of a case 
under this subchapter.
  (b) Exception.--The court may extend the period of time for 
holding a status conference under subsection (a) if the need 
for an extension is attributable to circumstances for which the 
debtor should not justly be held accountable.
  (c) Report.--Not later than 14 days before the date of the 
status conference under subsection (a), the debtor shall file 
with the court and serve on the trustee and all parties in 
interest a report that details the efforts the debtor has 
undertaken and will undertake to attain a consensual plan of 
reorganization.

Sec. 1189. Filing of the plan

  (a) Who May File a Plan.--Only the debtor may file a plan 
under this subchapter.
  (b) Deadline.--The debtor shall file a plan not later than 90 
days after the order for relief under this chapter, except that 
the court may extend the period if the need for the extension 
is attributable to circumstances for which the debtor should 
not justly be held accountable.

Sec. 1190. Contents of plan

  A plan filed under this subchapter--
          (1) shall include--
                  (A) a brief history of the business 
                operations of the debtor;
                  (B) a liquidation analysis; and
                  (C) projections with respect to the ability 
                of the debtor to make payments under the 
                proposed plan of reorganization;
          (2) shall provide for the submission of all or such 
        portion of the future earnings or other future income 
        of the debtor to the supervision and control of the 
        trustee as is necessary for the execution of the plan; 
        and
          (3) notwithstanding section 1123(b)(5) of this title, 
        may modify the rights of the holder of a claim secured 
        only by a security interest in real property that is 
        the principal residence of the debtor if the new value 
        received in connection with the granting of the 
        security interest was--
                  (A) not used primarily to acquire the real 
                property; and
                  (B) used primarily in connection with the 
                small business of the debtor.

Sec. 1191. Confirmation of plan

  (a) Terms.--The court shall confirm a plan under this 
subchapter only if all of the requirements of section 1129(a), 
other than paragraph (15) of that section, of this title are 
met.
  (b) Exception.--Notwithstanding section 510(a) of this title, 
if all of the applicable requirements of section 1129(a) of 
this title, other than paragraphs (8), (10), and (15) of that 
section, are met with respect to a plan, the court, on request 
of the debtor, shall confirm the plan notwithstanding the 
requirements of such paragraphs if the plan does not 
discriminate unfairly, and is fair and equitable, with respect 
to each class of claims or interests that is impaired under, 
and has not accepted, the plan.
  (c) Rule of Construction.--For purposes of this section, the 
condition that a plan be fair and equitable with respect to 
each class of claims or interests includes the following 
requirements:
          (1) With respect to a class of secured claims, the 
        plan meets the requirements of section 1129(b)(2)(A) of 
        this title.
          (2) As of the effective date of the plan--
                  (A) the plan provides that all of the 
                projected disposable income of the debtor to be 
                received in the 3-year period, or such longer 
                period not to exceed 5 years as the court may 
                fix, beginning on the date that the first 
                payment is due under the plan will be applied 
                to make payments under the plan; or
                  (B) the value of the property to be 
                distributed under the plan in the 3-year 
                period, or such longer period not to exceed 5 
                years as the court may fix, beginning on the 
                date on which the first distribution is due 
                under the plan is not less than the projected 
                disposable income of the debtor.
          (3)(A)(i) The debtor will be able to make all 
        payments under the plan; or
          (ii) there is a reasonable likelihood that the debtor 
        will be able to make all payments under the plan; and
          (B) the plan provides appropriate remedies, which may 
        include the liquidation of nonexempt assets, to protect 
        the holders of claims or interests in the event that 
        the payments are not made.
  (d) Disposable Income.--For purposes of this section, the 
term ``disposable income'' means the income that is received by 
the debtor and that is not reasonably necessary to be 
expended--
          (1) for--
                  (A) the maintenance or support of the debtor 
                or a dependent of the debtor; or
                  (B) a domestic support obligation that first 
                becomes payable after the date of the filing of 
                the petition; or
          (2) for the payment of expenditures necessary for the 
        continuation, preservation, or operation of the 
        business of the debtor.
  (e) Special Rule.--Notwithstanding section 1129(a)(9)(A) of 
this title, a plan that provides for the payment through the 
plan of a claim of a kind specified in paragraph (2) or (3) of 
section 507(a) of this title may be confirmed under subsection 
(b) of this section.

Sec. 1192. Discharge

  If the plan of the debtor is confirmed under section 1191(b) 
of this title, as soon as practicable after completion by the 
debtor of all payments due within the first 3 years of the 
plan, or such longer period not to exceed 5 years as the court 
may fix, unless the court approves a written waiver of 
discharge executed by the debtor after the order for relief 
under this chapter, the court shall grant the debtor a 
discharge of all debts provided in section 1141(d)(1)(A) of 
this title, and all other debts allowed under section 503 of 
this title and provided for in the plan, except any debt--
          (1) on which the last payment is due after the first 
        3 years of the plan, or such other time not to exceed 5 
        years fixed by the court; or
          (2) of the kind specified in section 523(a) of this 
        title.

Sec. 1193. Modification of plan

  (a) Modification Before Confirmation.--The debtor may modify 
a plan at any time before confirmation, but may not modify the 
plan so that the plan as modified fails to meet the 
requirements of sections 1122 and 1123 of this title, with the 
exception of subsection (a)(8) of such section 1123. After the 
modification is filed with the court, the plan as modified 
becomes the plan.
  (b) Modification After Confirmation.--If a plan has been 
confirmed under section 1191(a) of this title, the debtor may 
modify the plan at any time after confirmation of the plan and 
before substantial consummation of the plan, but may not modify 
the plan so that the plan as modified fails to meet the 
requirements of sections 1122 and 1123 of this title, with the 
exception of subsection (a)(8) of such section 1123. The plan, 
as modified under this subsection, becomes the plan only if 
circumstances warrant the modification and the court, after 
notice and a hearing, confirms the plan as modified under 
section 1191(a) of this title.
  (c) Certain Other Modifications.--If a plan has been 
confirmed under section 1191(b) of this title, the debtor may 
modify the plan at any time within 3 years, or such longer time 
not to exceed 5 years, as fixed by the court, but may not 
modify the plan so that the plan as modified fails to meet the 
requirements of section 1191(b) of this title. The plan as 
modified under this subsection becomes the plan only if 
circumstances warrant such modification and the court, after 
notice and a hearing, confirms such plan, as modified, under 
section 1191(b) of this title.
  (d) Holders of a Claim or Interest.--If a plan has been 
confirmed under section 1191(a) of this title, any holder of a 
claim or interest that has accepted or rejected the plan is 
deemed to have accepted or rejected, as the case may be, the 
plan as modified, unless, within the time fixed by the court, 
such holder changes the previous acceptance or rejection of the 
holder.

Sec. 1194. Payments

  (a) Retention and Distribution by Trustee.--Payments and 
funds received by the trustee shall be retained by the trustee 
until confirmation or denial of confirmation of a plan. If a 
plan is confirmed, the trustee shall distribute any such 
payment in accordance with the plan. If a plan is not 
confirmed, the trustee shall return any such payments to the 
debtor after deducting--
          (1) any unpaid claim allowed under section 503(b) of 
        this title;
          (2) any payment made for the purpose of providing 
        adequate protection of an interest in property due to 
        the holder of a secured claim; and
          (3) any fee owing to the trustee.
  (b) Other Plans.--If a plan is confirmed under section 
1191(b) of this title, except as otherwise provided in the plan 
or in the order confirming the plan, the trustee shall make 
payments to creditors under the plan.
  (c) Payments Prior to Confirmation.--Prior to confirmation of 
a plan, the court, after notice and a hearing, may authorize 
the trustee to make payments to the holder of a secured claim 
for the purpose of providing adequate protection of an interest 
in property.

Sec. 1195. Transactions with professionals

  Notwithstanding section 327(a) of this title, a person is not 
disqualified for employment under section 327 of this title, by 
a debtor solely because that person holds a claim of less than 
$10,000 that arose prior to commencement of the case.

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                      TITLE 28, UNITED STATES CODE



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PART II--DEPARTMENT OF JUSTICE

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CHAPTER 39--UNITED STATES TRUSTEES

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Sec. 586. Duties; supervision by Attorney General

  (a) Each United States trustee, within the region for which 
such United States trustee is appointed, shall--
          (1) establish, maintain, and supervise a panel of 
        private trustees that are eligible and available to 
        serve as trustees in cases under chapter 7 of title 11;
          (2) serve as and perform the duties of a trustee in a 
        case under title 11 when required under title 11 to 
        serve as trustee in such a case;
          (3) supervise the administration of cases and 
        trustees in cases under chapter 7, 11 (including 
        subchapter V of chapter 11), 12, 13, or 15 of title 11 
        by, whenever the United States trustee considers it to 
        be appropriate--
                  (A)(i) reviewing, in accordance with 
                procedural guidelines adopted by the Executive 
                Office of the United States Trustee (which 
                guidelines shall be applied uniformly by the 
                United States trustee except when circumstances 
                warrant different treatment), applications 
                filed for compensation and reimbursement under 
                section 330 of title 11; and
                          (ii) filing with the court comments 
                        with respect to such application and, 
                        if the United States Trustee considers 
                        it to be appropriate, objections to 
                        such application;
                  (B) monitoring plans and disclosure 
                statements filed in cases under chapter 11 of 
                title 11 and filing with the court, in 
                connection with hearings under sections 1125 
                and 1128 of such title, comments with respect 
                to such plans and disclosure statements;
                  (C) monitoring plans filed under chapters 12 
                and 13 of title 11 and filing with the court, 
                in connection with hearings under sections 
                1224, 1229, 1324, and 1329 of such title, 
                comments with respect to such plans;
                  (D) taking such action as the United States 
                trustee deems to be appropriate to ensure that 
                all reports, schedules, and fees required to be 
                filed under title 11 and this title by the 
                debtor are properly and timely filed;
                  (E) monitoring creditors' committees 
                appointed under title 11;
                  (F) notifying the appropriate United States 
                attorney of matters which relate to the 
                occurrence of any action which may constitute a 
                crime under the laws of the United States and, 
                on the request of the United States attorney, 
                assisting the United States attorney in 
                carrying out prosecutions based on such action;
                  (G) monitoring the progress of cases under 
                title 11 and taking such actions as the United 
                States trustee deems to be appropriate to 
                prevent undue delay in such progress;
                  (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
                  (I) monitoring applications filed under 
                section 327 of title 11 and, whenever the 
                United States trustee deems it to be 
                appropriate, filing with the court comments 
                with respect to the approval of such 
                applications;
          (4) deposit or invest under section 345 of title 11 
        money received as trustee in cases under title 11;
          (5) perform the duties prescribed for the United 
        States trustee under title 11 and this title, and such 
        duties consistent with title 11 and this title as the 
        Attorney General may prescribe;
          (6) make such reports as the Attorney General 
        directs, including the results of audits performed 
        under section 603(a) of the Bankruptcy Abuse Prevention 
        and Consumer Protection Act of 2005;
          (7) in each of such small business cases--
                  (A) conduct an initial debtor interview as 
                soon as practicable after the date of the order 
                for relief but before the first meeting 
                scheduled under section 341(a) of title 11, at 
                which time the United States trustee shall--
                          (i) begin to investigate the debtor's 
                        viability;
                          (ii) inquire about the debtor's 
                        business plan;
                          (iii) explain the debtor's 
                        obligations to file monthly operating 
                        reports and other required reports;
                          (iv) attempt to develop an agreed 
                        scheduling order; and
                          (v) inform the debtor of other 
                        obligations;
                  (B) if determined to be appropriate and 
                advisable, visit the appropriate business 
                premises of the debtor, ascertain the state of 
                the debtor's books and records, and verify that 
                the debtor has filed its tax returns; and
                  (C) review and monitor diligently the 
                debtor's activities, to determine 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, apply promptly after making that 
        finding to the court for relief.
  (b) If the number of cases under subchapter V of chapter 11 
or chapter 12 or 13 of title 11 commenced in a particular 
region so warrants, the United States trustee for such region 
may, subject to the approval of the Attorney General, appoint 
one or more individuals to serve as standing trustee, or 
designate one or more assistant United States trustees to serve 
in cases under such chapter. The United States trustee for such 
region shall supervise any such individual appointed as 
standing trustee in the performance of the duties of standing 
trustee.
  (c) Each United States trustee shall be under the general 
supervision of the Attorney General, who shall provide general 
coordination and assistance to the United States trustees.
  (d)(1) The Attorney General shall prescribe by rule 
qualifications for membership on the panels established by 
United States trustees under paragraph (a)(1) of this section, 
and qualifications for appointment under subsection (b) of this 
section to serve as standing trustee in cases under subchapter 
V of chapter 11 or chapter 12 or 13 of title 11. The Attorney 
General may not require that an individual be an attorney in 
order to qualify for appointment under subsection (b) of this 
section to serve as standing trustee in cases under subchapter 
V of chapter 11 or chapter 12 or 13 of title 11.
  (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 district court of the United States for the 
district for which the panel to which the trustee is appointed 
under subsection (a)(1), or in the district court of the United 
States 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.
  (e)(1) The Attorney General, after consultation with a United 
States trustee that has appointed an individual under 
subsection (b) of this section to serve as standing trustee in 
cases under subchapter V of chapter 11 or chapter 12 or 13 of 
title 11, shall fix--
          (A) a maximum annual compensation for such individual 
        consisting of--
                  (i) an amount not to exceed the highest 
                annual rate of basic pay in effect for level V 
                of the Executive Schedule; and
                  (ii) the cash value of employment benefits 
                comparable to the employment benefits provided 
                by the United States to individuals who are 
                employed by the United States at the same rate 
                of basic pay to perform similar services during 
                the same period of time; and
          (B) a percentage fee not to exceed--
                  (i) in the case of a debtor who is not a 
                family farmer, ten percent; or
                  (ii) in the case of a debtor who is a family 
                farmer, the sum of--
                          (I) not to exceed ten percent of the 
                        payments made under the plan of such 
                        debtor, with respect to payments in an 
                        aggregate amount not to exceed 
                        $450,000; and
                          (II) three percent of payments made 
                        under the plan of such debtor, with 
                        respect to payments made after the 
                        aggregate amount of payments made under 
                        the plan exceeds $450,000;
based on such maximum annual compensation and the actual, 
necessary expenses incurred by such individual as standing 
trustee.
  (2) Such individual shall collect such percentage fee from 
all payments received by such individual under plans in the 
cases under subchapter V of chapter 11 or chapter 12 or 13 of 
title 11 for which such individual serves as standing trustee. 
Such individual shall pay to the United States trustee, and the 
United States trustee shall deposit in the United States 
Trustee System Fund--
          (A) any amount by which the actual compensation of 
        such individual exceeds 5 per centum upon all payments 
        received under plans in cases under subchapter V of 
        chapter 11 or chapter 12 or 13 of title 11 for which 
        such individual serves as standing trustee; and
          (B) any amount by which the percentage for all such 
        cases exceeds--
                  (i) such individual's actual compensation for 
                such cases, as adjusted under subparagraph (A) 
                of paragraph (1); plus
                  (ii) the actual, necessary expenses incurred 
                by such individual as standing trustee in such 
                cases. Subject to the approval of the Attorney 
                General, any or all of the interest earned from 
                the deposit of payments under plans by such 
                individual may be utilized to pay actual, 
                necessary expenses without regard to the 
                percentage limitation contained in subparagraph 
                (d)(1)(B) of this section.
          (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 district court of the United States for 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.
  (5) In the event that the services of the trustee in a case 
under subchapter V of chapter 11 of title 11 are terminated by 
dismissal or conversion of the case, or upon substantial 
consummation of a plan under section 1183(c)(1) of that title, 
the court shall award compensation to the trustee consistent 
with services performed by the trustee and the limits on the 
compensation of the trustee established pursuant to paragraph 
(1) of this subsection.
  (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 
Abuse Prevention and Consumer Protection Act of 2005.
          (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 district court (or the clerk of the bankruptcy 
        court if one is certified under section 156(b) of this 
        title) 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.

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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 
        subchapter V of chapter 11 and chapters 7, 12, and 13 
        of title 11; and
          (2) periodic reports by debtors in possession or 
        trustees 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.--The uniform forms for final reports 
required under subsection (a) for use by trustees under 
subchapter V of chapter 11 and 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 subchapter V of chapter 11 and 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 
subchapter V of chapter 11 and 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.--The uniform forms for periodic reports 
required under subsection (a) for use 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 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.

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PART IV--JURISDICTION AND VENUE

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CHAPTER 87--DISTRICT COURTS; VENUE

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Sec. 1409. Venue of proceedings arising under title 11 or arising in or 
                    related to cases under title 11

  (a) Except as otherwise provided in subsections (b) and (d), 
a proceeding arising under title 11 or arising in or related to 
a case under title 11 may be commenced in the district court in 
which such case is pending.
  (b) Except as provided in subsection (d) of this section, a 
trustee in a case under title 11 may commence a proceeding 
arising in or related to such case to recover a money judgment 
of or property worth less than $1,000 or a consumer debt of 
less than $15,000, or a debt (excluding a consumer debt) 
against a noninsider of less than [$10,000] $25,000, only in 
the district court for the district in which the defendant 
resides.
  (c) Except as provided in subsection (b) of this section, a 
trustee in a case under title 11 may commence a proceeding 
arising in or related to such case as statutory successor to 
the debtor or creditors under section 541 or 544(b) of title 11 
in the district court for the district where the State or 
Federal court sits in which, under applicable nonbankruptcy 
venue provisions, the debtor or creditors, as the case may be, 
may have commenced an action on which such proceeding is based 
if the case under title 11 had not been commenced.
  (d) A trustee may commence a proceeding arising under title 
11 or arising in or related to a case under title 11 based on a 
claim arising after the commencement of such case from the 
operation of the business of the debtor only in the district 
court for the district where a State or Federal court sits in 
which, under applicable nonbankruptcy venue provisions, an 
action on such claim may have been brought.
  (e) A proceeding arising under title 11 or arising in or 
related to a case under title 11, based on a claim arising 
after the commencement of such case from the operation of the 
business of the debtor, may be commenced against the 
representative of the estate in such case in the district court 
for the district where the State or Federal court sits in which 
the party commencing such proceeding may, under applicable 
nonbankruptcy venue provisions, have brought an action on such 
claim, or in the district court in which such case is pending.

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PART V--PROCEDURE

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CHAPTER 123--FEES AND COSTS

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Sec. 1930. Bankruptcy fees

  (a) The parties commencing a case under title 11 shall pay to 
the clerk of the district court or the clerk of the bankruptcy 
court, if one has been certified pursuant to section 156(b) of 
this title, the following filing fees:
          (1) For a case commenced under--
                  (A) chapter 7 of title 11, $245, and
                  (B) chapter 13 of title 11, $235.
          (2) For a case commenced under chapter 9 of title 11, 
        equal to the fee specified in paragraph (3) for filing 
        a case under chapter 11 of title 11. The amount by 
        which the fee payable under this paragraph exceeds $300 
        shall be deposited in the fund established under 
        section 1931 of this title.
          (3) For a case commenced under chapter 11 of title 11 
        that does not concern a railroad, as defined in section 
        101 of title 11, $1,167.
          (4) For a case commenced under chapter 11 of title 11 
        concerning a railroad, as so defined, $1,000.
          (5) For a case commenced under chapter 12 of title 
        11, $200.
          (6)(A) Except as provided in subparagraph (B), in 
        addition to the filing fee paid to the clerk, a 
        quarterly fee shall be paid to the United States 
        trustee, for deposit in the Treasury, in each case 
        under chapter 11 of title 11, other than under 
        subchapter V, for each quarter (including any fraction 
        thereof) until the case is converted or dismissed, 
        whichever occurs first. The fee shall be $325 for each 
        quarter in which disbursements total less than $15,000; 
        $650 for each quarter in which disbursements total 
        $15,000 or more but less than $75,000; $975 for each 
        quarter in which disbursements total $75,000 or more 
        but less than $150,000; $1,625 for each quarter in 
        which disbursements total $150,000 or more but less 
        than $225,000; $1,950 for each quarter in which 
        disbursements total $225,000 or more but less than 
        $300,000; $4,875 for each quarter in which 
        disbursements total $300,000 or more but less than 
        $1,000,000; $6,500 for each quarter in which 
        disbursements total $1,000,000 or more but less than 
        $2,000,000; $9,750 for each quarter in which 
        disbursements total $2,000,000 or more but less than 
        $3,000,000; $10,400 for each quarter in which 
        disbursements total $3,000,000 or more but less than 
        $5,000,000; $13,000 for each quarter in which 
        disbursements total $5,000,000 or more but less than 
        $15,000,000; $20,000 for each quarter in which 
        disbursements total $15,000,000 or more but less than 
        $30,000,000; $30,000 for each quarter in which 
        disbursements total more than $30,000,000. The fee 
        shall be payable on the last day of the calendar month 
        following the calendar quarter for which the fee is 
        owed.
          (B) During each of fiscal years 2018 through 2022, if 
        the balance in the United States Trustee System Fund as 
        of September 30 of the most recent full fiscal year is 
        less than $200,000,000, the quarterly fee payable for a 
        quarter in which disbursements equal or exceed 
        $1,000,000 shall be the lesser of 1 percent of such 
        disbursements or $250,000.
          (7) In districts that are not part of a United States 
        trustee region as defined in section 581 of this title, 
        the Judicial Conference of the United States may 
        require the debtor in a case under chapter 11 of title 
        11 to pay fees equal to those imposed by paragraph (6) 
        of this subsection. Such fees shall be deposited as 
        offsetting receipts to the fund established under 
        section 1931 of this title and shall remain available 
        until expended.
An individual commencing a voluntary case or a joint case under 
title 11 may pay such fee in installments. For converting, on 
request of the debtor, a case under chapter 7, or 13 of title 
11, to a case under chapter 11 of title 11, the debtor shall 
pay to the clerk of the district court or the clerk of the 
bankruptcy court, if one has been certified pursuant to section 
156(b) of this title, a fee of the amount equal to the 
difference between the fee specified in paragraph (3) and the 
fee specified in paragraph (1).
  (b) The Judicial Conference of the United States may 
prescribe additional fees in cases under title 11 of the same 
kind as the Judicial Conference prescribes under section 
1914(b) of this title.
  (c) Upon the filing of any separate or joint notice of appeal 
or application for appeal or upon the receipt of any order 
allowing, or notice of the allowance of, an appeal or a writ of 
certiorari $5 shall be paid to the clerk of the court, by the 
appellant or petitioner.
  (d) Whenever any case or proceeding is dismissed in any 
bankruptcy court for want of jurisdiction, such court may order 
the payment of just costs.
  (e) The clerk of the court may collect only the fees 
prescribed under this section.
  (f)(1) Under the procedures prescribed by the Judicial 
Conference of the United States, the district court or the 
bankruptcy court may waive the filing fee in a case under 
chapter 7 of title 11 for an individual if the court determines 
that such individual has income less than 150 percent of the 
income official poverty line (as defined by the Office of 
Management and Budget, and revised annually in accordance with 
section 673(2) of the Omnibus Budget Reconciliation Act of 
1981) applicable to a family of the size involved and is unable 
to pay that fee in installments. For purposes of this 
paragraph, the term ``filing fee'' means the filing fee 
required by subsection (a), or any other fee prescribed by the 
Judicial Conference under subsections (b) and (c) that is 
payable to the clerk upon the commencement of a case under 
chapter 7.
          (2) The district court or the bankruptcy court may 
        waive for such debtors other fees prescribed under 
        subsections (b) and (c).
          (3) This subsection does not restrict the district 
        court or the bankruptcy court from waiving, in 
        accordance with Judicial Conference policy, fees 
        prescribed under this section for other debtors and 
        creditors.

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