[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2500 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2500

              To amend title 11 of the United States Code.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 1997

  Mr. McCollum (for himself and Mr. Boucher) introduced the following 
       bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
              To amend title 11 of the United States Code.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
                  TITLE I--CONSUMER BANKRUPTCY ISSUES

Sec. 101. Needs based bankruptcy.
Sec. 102. Adequate income shall be committed to a plan that pays 
                            unsecured creditors.
Sec. 103. Notice of alternatives.
Sec. 104. Fraudulent debts are nondischargeable in chapter 13 cases.
Sec. 105. Giving secured creditors fair treatment in chapter 13.
Sec. 106. Debts incurred to pay nondischargeable debts.
Sec. 107. Credit extensions on the eve of bankruptcy presumed 
                            nondischargeable.
Sec. 108. Stopping abusive conversions from chapter 13.
Sec. 109. Discouraging bad faith repeat filings.
Sec. 110. Restraining abusive purchases on secured credit.
Sec. 111. Fair valuation of collateral.
Sec. 112. Debtor retention of personal property security.
Sec. 113. Bankruptcy Exemption Study Commission.
Sec. 114. Timely filing and confirmation of plans in chapter 13.
Sec. 115. Definition of substantial abuse.
Sec. 116. Giving debtors the ability to keep leased personal property 
                            by assumption.
Sec. 117. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 118. Applying the co-debtor stay only when it protects the debtor.
Sec. 119. Definition of household goods.
Sec. 120. Protection of holders of claims secured by debtor's principal 
                            residence.
Sec. 121. Extend period between bankruptcy discharges.
              TITLE II--IMPROVED BANKRUPTCY ADMINISTRATION

Sec. 201. Improved bankruptcy statistics.
Sec. 202. Audit procedures.
Sec. 203. Nationwide docket of cases under title 11.
Sec. 204. Adequate preparation time for creditors before the first 
                            meeting of creditors in individual cases.
Sec. 205. Creditor representation at first meeting of creditors.
Sec. 206. Giving creditors fair notice in chapter 7 and 13 cases.
Sec. 207. Prompt relief from stay in individual cases.
Sec. 208. Relief from stay when the debtor does not complete intended 
                            surrender of consumer debt collateral.
Sec. 209. Filing proofs of claim.
Sec. 210. Debtor to provide tax returns and other information.
Sec. 211. Dismissal for failure to file schedules timely or provide 
                            required information.
Sec. 212. Adequate protection of lessors and purchase money secured 
                            creditors.
Sec. 213. Adequate time to prepare for hearing on confirmation of the 
                            plan.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Record numbers of consumer debtors are filing for 
        bankruptcy relief, and the number of consumer debtors who do so 
        are projected to continue to increase.
            (2) The present consumer bankruptcy provisions of the 
        Bankruptcy Code encourage debtors to avoid their financial and 
        moral responsibilities by giving too generous relief to debtors 
        with ability to pay some part of their debts. The cost of 
        credit is unnecessarily increased by such relief to the 
        disadvantage of responsible American consumers.
            (3) The present consumer bankruptcy provisions of the 
        Bankruptcy Code have lessened the protection which historically 
        has been given to secured credit. Such protection encourages 
        availability and lowers the cost of such credit to responsible 
        American consumers.
            (4) The present procedural provisions of the Bankruptcy 
        Code unnecessarily impose high administrative and participation 
        costs upon creditors whose borrowers file for consumer 
        bankruptcy relief.
            (5) The basic relief available for debtors under the 
        present Bankruptcy Code is reasonable and necessary for those 
        whose financial circumstances justify such relief.

                  TITLE I--CONSUMER BANKRUPTCY ISSUES

SEC. 101. NEEDS BASED BANKRUPTCY.

    Title 11, United States Code, is amended--
            (1) in section 101 as follows:
                    (A) by inserting after paragraph (10) the 
                following:
            ``(10A) `current monthly total income' means the average 
        monthly income from all sources derived which the debtor, or in 
        a joint case, the debtor and the debtor's spouse, receive 
        without regard to whether it is taxable income, in the six 
        months preceding the date of determination, and includes any 
        amount paid by anyone other than the debtor or, in a joint 
        case, the debtor and the debtor's spouse on a regular basis to 
        the household expenses of the debtor or the debtor's dependents 
        and, in a joint case, the debtor's spouse if not otherwise a 
        dependent;''; and
                    (B) by inserting after paragraph (40) the 
                following:
            ``(40A) `national median family income' and `national 
        median household income for one earner' shall mean during any 
        calendar year, the national median family income and the 
        national median household income for one earner which the 
        Bureau of the Census has reported as of January 1 of such 
calendar year for the most recent previous calendar year.'';
            (2) in section 104(b)(1) by striking ``109(e)'' and 
        inserting ``subsections (b), (e), and (h) of section 109'';
            (3) in section 109(b)--
                    (A) in paragraph (2) by striking ``or'' at the end;
                    (B) in paragraph (3) by striking the period and 
                inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(4) an individual or, in a joint case, an individual and 
        such individual's spouse, who have income available to pay 
        creditors as determined under subsection (h) of this 
        section.'';
            (4) by adding at the end of section 109 the following:
    ``(h)(1) An individual or, in a joint case, an individual and such 
individual's spouse, have income available to pay creditors if the 
individual, or, in a joint case, the individual and the individual's 
spouse combined, as of the date of the order for relief, have--
            ``(A) current monthly total income of 75 percent of the 
        national median family income for a family of equal size or, in 
        the case of a household of one person, 75 percent of the 
        national median household income for one earner, or more as of 
        the date of the order for relief;
            ``(B) projected monthly net income greater than $50; and
            ``(C) projected monthly net income sufficient to repay 
        twenty percent or more of unsecured non-priority claims during 
        a five-year repayment plan.
    ``(2) Projected monthly net income shall be sufficient under 
paragraph (1)(C) if, when multiplied by 60 months, it equals or exceeds 
20 percent of the total amount scheduled as payable to unsecured 
nonpriority creditors.
    ``(3) `Projected monthly net income' means current monthly total 
income less--
            ``(A) the expense allowances under the applicable National 
        Standards, Local Standards and Other Necessary Expenses 
        allowance (excluding payments for debts) for the debtor, the 
        debtor's dependents, and, in a joint case, the debtor's spouse 
        if not otherwise a dependent, in the area in which the debtor 
        resides as determined under the Internal Revenue Service 
        financial analysis for expenses in effect as of the date of the 
        order for relief;
            ``(B) the average monthly payment on account of secured 
        creditors, which shall be calculated as the total of all 
        amounts scheduled as contractually payable to secured creditors 
        in each month of the 60 months following the date of the 
        petition by the debtor, or, in a joint case, by the debtor and 
        the debtor's spouse combined, and dividing that total by 60 
        months; and
            ``(C) the average monthly payment on account of priority 
        creditors, which shall be calculated as the total amount of 
        debts entitled to priority, reasonably estimated by the debtor 
        as of the date of the petition, and dividing that total by 60 
        months.
    ``(4) In the event that the debtor establishes extraordinary 
circumstances that require allowance for additional expenses, projected 
monthly net income for purposes of this section shall be the amount 
calculated under paragraph (3) less such additional expenses as such 
extraordinary circumstances require.
            ``(A) This paragraph shall not apply unless the debtor 
        files with the petition--
                    ``(i) a written statement that this paragraph 
                applies in determining the debtor's eligibility for 
                relief under chapter 7 of this title;
                    ``(ii) a list itemizing each additional expense 
                which exceeds the expenses allowances provided under 
                paragraph (3)(A);
                    ``(iii) a detailed description of the extraordinary 
                circumstances which explain why each of the additional 
                expenses itemized under subparagraph (II) requires 
                allowance; and
                    ``(iv) a sworn statement signed by the debtor and, 
                if the debtor is represented by counsel, by the 
                debtor's attorney, that the information required under 
                this paragraph is true and correct.
            ``(B) Until the trustee or any party in interest objects to 
        the debtor's statement that this paragraph applies and the 
        court rejects or modifies the debtor's statement, the projected 
        monthly net income in the debtor's statement shall be the 
        projected monthly net income for the purposes of this section. 
        If an objection is filed with the court within 60 days after 
        the debtor has filed all information required to be filed under 
        section 521(1), the court, after notice and hearing, shall 
        determine whether such extraordinary circumstances exist and 
        shall establish the amount of the additional expense allowance, 
        if any. The burden of proving such extraordinary circumstances 
shall be on the debtor.'';
            (5) in section 704--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking the period at the end of paragraph 
                (9) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) with respect to an individual debtor, review all 
        materials filed by the debtor under paragraphs (6), (7) and (8) 
        of section 521, investigate and verify the debtor's projected 
        monthly net income and within 30 days after the order for 
        relief under this chapter, file a report with the court as to 
        whether the debtor qualifies for relief under this chapter 
        under section 109(b)(4).'';
            (6) in section 1302(b)--
                    (A) in paragraph (1)--
                            (i) by striking ``704(7) and'' and 
                        inserting ``704(7),''; and
                            (ii) by inserting ``and 704(10)'' after 
                        ``704(9)''; and
                    (B) in paragraph (4) by striking ``and'' at the 
                end;
                    (C) in paragraph (5) by striking the period and 
                inserting a semicolon; and
                    (D) by adding at the end the following:
            ``(6) investigate and verify the debtor's monthly net 
        income and other information provided by the debtor pursuant to 
        section 521 and 1322, and pursuant to section 111, if 
        applicable; and
            ``(7) file annual reports with the court, with copies to 
        holders of claims under the plan, as to whether a modification 
        of the amount paid creditors under the plan is appropriate 
        because of changes in the debtor's monthly net income.''.

SEC. 102. ADEQUATE INCOME SHALL BE COMMITTED TO A PLAN THAT PAYS 
              UNSECURED CREDITORS.

    Title 11, United States Code, is amended--
            (1) in section 101 by inserting after paragraph (39) the 
        following:
            ``(39A) `monthly net income' means the amount determined by 
        taking as of the date of the petition the current monthly total 
        income of the debtor less the expense allowances under the 
        applicable National Standards, Local Standards and Other 
        Necessary Expenses allowance (excluding payments for debts) for 
        the debtor, the debtor's dependents, and, in a joint case, the 
        debtor's spouse if not otherwise a dependent, in the area in 
        which the debtor resides as determined under the Internal 
        Revenue Service financial analysis for expenses in effect as of 
        the date of the order for relief.'';
            (2) in section 104(b)(1) by striking ``and 523(a)(2)(C)'' 
        and inserting ``523(a)(2)(C), and 1325(b)(1)'';
            (3) by adding after section 110 the following:
``Sec. 111. Adjustment to monthly net income
    ``(a) Monthly net income for purposes of a plan under chapter 13 of 
this title shall be adjusted under this section when the debtor's 
extraordinary circumstances require adjustment as determined herein. 
Under this section, monthly net income shall be determined by 
subtracting therefrom such loss of income or additional expenses as the 
debtor's extraordinary circumstances require as determined under this 
section. This section shall not apply unless--
            ``(1) the debtor files with the court and, in a case in 
        which a trustee has been appointed, with the trustee at the 
        times required in subsection (b) a statement of extraordinary 
        circumstances as follows--
                    ``(A) a written statement that this section applies 
                in determining the debtor's monthly net income;
                    ``(B) if applicable, an explanation of what income 
                has been lost in the six months preceding the date of 
                determination and any replacement income which has been 
                secured or is expected, and an itemization of such lost 
                and replacement income;
                    ``(C) if applicable, a list itemizing each 
                additional expense which exceeds the expense allowance 
                provided in determining monthly net income under 
                section 101(39A);
                    ``(D) if applicable, a detailed description of the 
                extraordinary circumstances which explains why each of 
                the additional expenses itemized under paragraph (C) 
                requires allowance; and
                    ``(E) a sworn statement signed by the debtor and, 
                if the debtor is represented by counsel, by the 
                debtor's attorney, of the amount of monthly net income 
                that the debtor has pursuant to this subsection and 
                that the information provided under this subsection is 
                true and correct; and
            ``(2) until the trustee or any party in interest objects to 
        the debtor's request that this section be applied and the court 
        rejects or modifies the debtor's statement, the monthly net 
        income in the debtor's statement shall be the monthly net 
        income for the purposes of the debtor's plan. If an objection 
        is filed with the court within the times provided in subsection 
        (b), the court, after notice and hearing, shall determine 
        whether such extraordinary circumstances asserted by the debtor 
        exist and establish the amount of the loss of income and such 
        additional expense allowance, if any. The burden of proving 
        such extraordinary circumstances and the amount of the loss of 
        income and the additional expense allowance, if any, shall be 
        on the debtor.
    ``(b) For the purposes of chapter 13 of this title, the statement 
of extraordinary circumstances shall be filed with the court and served 
on the trustee on or before 45 days before each anniversary of the 
confirmation of the plan in order to be applicable during the next year 
of the plan. Any objection thereto shall be filed 30 days after the 
statement is filed with the trustee. Whenever a statement is timely 
filed with the trustee, the trustee shall give notice to creditors that 
such statement has been filed and the amount of monthly net income 
stated therein within 15 days of receipt of the statement.'';
            (4) in section 1322(a)--
                    (A) by striking ``and'' at the end of paragraph 
                (2);
                    (B) by striking the period at the end of paragraph 
                (3) and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(4) state, under penalties of perjury, the amount of 
        monthly net income, which may be as adjusted under section 111, 
        if applicable, of this title and the amount of monthly net 
        income which will paid per month to unsecured non-priority 
        creditors under the plan.''; and
            (5) by amending section 1325(b)(1)(B) to read as follows:
            ``(B) the plan provides--
                    ``(i) that payments to unsecured non-priority 
                creditors who are not insiders shall equal or exceed 
                $50 in each month of the plan;
                    ``(ii) that during the applicable commitment period 
                beginning on the date that the first payment is due 
                under the plan, the total amount of monthly net income 
                received by the debtor shall be paid to unsecured 
                nonpriority creditors under the plan less only payments 
                pursuant to section 1326(b); the `applicable commitment 
                period' shall be 5 years if the debtor's total current 
                monthly income is 75 percent of the national median 
                family income for a family of equal size or, in the 
                case of a household of one person, 75 percent of the 
                national median household income for one earner, or 
                more as of the date of confirmation of the plan and 
                shall be 3 years if the debtor's total current monthly 
                income is less than 75 percent of the national median 
                family income for a family of equal size or, in the 
                case of a household of one person, and less than 75 
                percent of the national median household income for one 
                earner, as of the date of confirmation of the plan; and
                    ``(iii) that the amount payable to each class of 
                unsecured nonpriority claims under the plan shall be 
                increased or decreased during the plan proportionately 
                to the extent the debtor's monthly net income during 
                the plan increases or decreases as reasonably 
                determined by the trustee, subject to section 111 of 
                this title, no less frequently than as of each 
                anniversary of the confirmation of the plan based on 
                monthly net income as of 45 days before such 
                anniversary.''; and
            (6) by striking section 1325(b)(2).

SEC. 103. NOTICE OF ALTERNATIVES.

    (a) Title 11, United States Code, is amended--
            (1) by striking subsection (b) of section 342 and inserting 
        the following:
    ``(b) Prior to the commencement of a case under this title by an 
individual whose debts are primarily consumer debts, the individual 
shall be given or obtain (as required to be certified in section 
521(1)) a written notice which is prescribed by the United States 
Trustee for the district in which the petition is filed pursuant to 
title 28 United States Code section 586 and which contains the 
following:
            ``(1) A brief description of chapters 7, 11, 12 and 13 of 
        this title and the general purpose, benefits and costs of 
        proceeding under each of those chapters.
            ``(2) A brief description of services which may be 
        available to that individual from an independent nonprofit debt 
        counselling service.
            ``(3) The name, address and telephone number of each 
        nonprofit debt counselling service with an office located in 
        the district in which the petition is filed, if any. Any such 
        non-profit debt counselling service which has registered with 
the clerk of the bankruptcy court on or before December 10 of the 
preceding year shall be included in such list unless the chief 
bankruptcy judge of the district, after notice to the debt counselling 
service and the United States Trustee and opportunity for a hearing, 
for good cause, orders that a particular debt counselling service shall 
not be so listed.''; and
            (2) by striking ``and a statement of the debtor's financial 
        affairs;'' in paragraph (1) of section 521 and inserting the 
        following:
        ``a statement of the debtor's financial affairs and, if 
        applicable, a certificate--
                    ``(A) of an attorney whose name is on the petition 
                as the attorney for the debtor or any bankruptcy 
                petition preparer signing the petition pursuant to 
                section 110(b)(1) of this title indicating that such 
                attorney or bankruptcy petition preparer delivered to 
                the debtor any notice required by section 342(b) of 
                this title; or
                    ``(B) if no attorney for the debtor is indicated 
                and no bankruptcy petition preparer signed the 
                petition, of the debtor that such notice was obtained 
                and read by the debtor.''.
    (b) Section 586(a) of title 28, United States Code, is amended--
            (1) in paragraph (5) by striking ``and'' at the end;
            (2) in paragraph (6) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) on or before January 1 of each calendar year, and 
        also within 30 days of any change in the nonprofit debt 
        counselling services registered with the bankruptcy court, 
        prescribe and make available on request the notice described in 
        section 342(b)(3) of title 11 for each district included in the 
        region.''.

SEC. 104. FRAUDULENT DEBTS ARE NONDISCHARGEABLE IN CHAPTER 13 CASES.

    Section 1328(a)(2) of title 11, United States Code, is amended by 
inserting ``(2), (4),'' after ``paragraph''.

SEC. 105. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

    Section 1325(a)(5)(B)(i) of title 11, United States Code, is 
amended to read as follows:
                    ``(i) the plan provides that the holder of such 
                claim retain the lien securing such claim until 
                discharge under section 1328; and''.

SEC. 106. DEBTS INCURRED TO PAY NONDISCHARGEABLE DEBTS.

    Title 11, United States Code, is amended--
            (1) in section 507 by adding at the end the following:
    ``(e) For the purposes of subsection (a), a claim arising from a 
debt which is nondischargeable under section 523(a)(14) shall have the 
same priority as the claim for the underlying obligation which was paid 
by that nondischargeable debt.'';
            (2) in section 523(a) by amending paragraph (14) to read as 
        follows:
            ``(14) incurred to pay a debt that would be 
        nondischargeable pursuant to any other provision of this 
        subsection;''.

SEC. 107. CREDIT EXTENSIONS ON THE EVE OF BANKRUPTCY PRESUMED 
              NONDISCHARGEABLE.

    Section 523(a)(2)(C) of title 11, United States Code, is amended to 
read as follows:
                    ``(C) for purposes of subparagraph (A) of this 
                paragraph, consumer debts owed to a single creditor 
                incurred by an individual debtor on or within 90 days 
                before the order for relief under this title are 
                presumed to be nondischargeable.''.

SEC. 108. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13.

    Section 348(f)(1) of title 11, United States Code, is amended--
            (1) by striking in subparagraph (B) ``in the converted 
        case, with allowed secured claims'' and inserting in lieu 
        thereof ``only in a case converted to chapter 11 or 12 but not 
        in one converted to chapter 7, with allowed secured claims in 
        cases under chapters 11 and 12''; and
            (2) in subparagraph (A) by striking ``and'' at the end;
            (3) in subparagraph (B) by striking the period and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(C) with respect to cases converted from chapter 13, the 
        claim of any creditor holding security as of the date of the 
        petition shall continue to be secured by that security unless 
        the full amount of that claim determined under applicable non-
        bankruptcy law has been paid in full as of the date of 
        conversion, notwithstanding any valuation or determination of 
        the amount of an allowed secured claim made for the purposes of 
        the chapter 13 proceeding.''.

SEC. 109. DISCOURAGING BAD FAITH REPEAT FILINGS.

    Section 362(c) of title 11, United States Code, is amended--
            (1) in paragraph (1) by striking ``and'' at the end;
            (2) in paragraph (2) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraphs:
            ``(3) If a single or joint case is filed by or against an 
        individual debtor under chapter 7, 11, or 13, and if a single 
        or joint case of that debtor was pending within the previous 
        year but was dismissed, other than a case refiled under a 
        chapter other than chapter 7 after dismissal under section 
        707(b) of this title, the stay under subsection (a) with 
        respect to any action taken with respect to a debt or property 
        securing such debt or with respect to any lease will terminate 
        with respect to the debtor on the 30th day after the filing of 
        the later case. If a party in interest requests, the court may 
        extend the stay in particular cases as to any or all creditors 
        (subject to such conditions or limitations as the court may 
        then impose) after notice and a hearing completed before the 
        expiration of the 30-day period only if the party in interest 
        demonstrates that the filing of the later case is in good faith 
        as to the creditors to be stayed. A case is presumptively not 
        filed in good faith (but such presumption may be rebutted by 
        clear and convincing evidence to the contrary)--
                    ``(A) as to all creditors if--
                            ``(i) more than 1 previous case under any 
                        of chapters 7, 11, or 13 in which the 
                        individual was a debtor was pending within the 
                        1-year period;
                            ``(ii) a previous case under any of 
                        chapters 7, 11, or 13 in which the individual 
                        was a debtor was dismissed within the time 
                        period stated in this paragraph after the 
                        debtor failed to file or amend the petition or 
                        other documents as required by this title or 
                        the court without substantial excuse (but mere 
                        inadvertence or negligence shall not be 
                        substantial excuse), failed to pay adequate 
                        protection as ordered by the court, or failed 
                        to perform the terms of a plan confirmed by the 
                        court; or
                            ``(iii) there has not been a substantial 
                        change in the financial or personal affairs of 
                        the debtor since the dismissal of the next most 
                        previous case under any of chapters 7, 11, or 
                        13, or any other reason to conclude that the 
                        later case will be concluded, if a chapter 7 
                        case, with a discharge, and if a chapter 11 or 
                        13 case, a confirmed plan which will be fully 
                        performed;
                    ``(B) as to any creditor which commenced an action 
                under subsection (d) hereof in a previous case in which 
                the individual was a debtor if, as of the date of 
                dismissal of that case, that action was still pending 
                or had been resolved by terminating, conditioning, or 
                limiting the stay as to actions of that creditor.
            ``(4) If a request is made for relief from the stay under 
        subsection (a) with respect to real or personal property of any 
        kind, and such request is granted in whole or in part, the 
        court may in addition order that the relief so granted shall be 
        in rem either for a definite period not less than 1 year or 
        indefinitely. After such an order, the stay under subsection 
        (a) shall not apply to any property subject to such an in rem 
        order in any case of the debtor. If such an order so provides, 
        such stay shall also not apply in any case of any entity under 
        this title if the entity had reason to know of the order at the 
        time it obtained any interest in the property affected, or if 
        an entity was notified of the commencement of the proceeding 
        for relief from the stay at a time at which no case in which it 
        was a debtor was pending.
            ``(5) For the purposes of this section, a case is pending 
        from the time of the order for relief until the case is 
        closed.''.

SEC. 110. RESTRAINING ABUSIVE PURCHASES ON SECURED CREDIT.

    Section 506 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) In an individual case under chapter 7, 11, 12, or 13--
            ``(1) subsection (a) shall not apply to an allowed claim to 
        the extent attributable in whole or in part to the purchase 
        price of personal property acquired by the debtor within 180 
        days of the filing of the petition, except for the purpose of 
        applying paragraph (3) of this subsection;
            ``(2) if such allowed claim attributable to the purchase 
        price is secured only by the personal property so acquired, the 
        value of the personal property and the amount of the allowed 
        secured claim shall be the sum of the unpaid principal balance 
        of the purchase price and accrued and unpaid interest and 
charges at the contract rate;
            ``(3) if such allowed claim attributable to the purchase 
        price is secured by the personal property so acquired and other 
        property, the value of the security may be determined under 
        subsection (a), but the value of the security and the amount of 
        the allowed secured claim shall be not less than the unpaid 
        principal balance of the purchase price of the personal 
        property acquired and unpaid interest and charges at the 
        contract rate; and
            ``(4) in any subsequent case under this title which is 
        filed by or against the individual debtor within two years of 
        the date of filing of the original case, the value of the 
        personal property and the amount of the allowed secured claim 
        shall be deemed to be not less than the amount provided under 
        subparagraphs (2) and (3), as applicable.''.

SEC. 111. FAIR VALUATION OF COLLATERAL.

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

SEC. 112. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

    Title 11, United States Code, is amended--
            (1) in section 521--
                    (A) in paragraph (4) by striking ``and'' at the 
                end;
                    (B) in paragraph (5) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) in an individual chapter 7 case, not retain 
        possession of personal property as to which a creditor has an 
        allowed claim for the purchase price secured in whole or in 
        part by an interest in that personal property unless, in the 
        case of an individual debtor, the debtor takes one of the 
        following actions within 60 days after the filing of the 
        petition or the order for relief, whichever is later--
                    ``(A) enters into a reaffirmation agreement with 
                the creditor pursuant to section 524(c) of this title 
                with respect to the claim secured by such property; or
                    ``(B) redeems such property from the security 
                interest pursuant to section 722 of this title.
        ``If the debtor fails to so act within the 60-day period, the 
        personal property affected shall no longer be property of the 
        estate, and the creditor may take whatever action as to such 
        property as is permitted by applicable nonbankruptcy law.''; 
        and
            (2) in section 722 by inserting ``in full at the time of 
        redemption'' before the period at the end.

SEC. 113. BANKRUPTCY EXEMPTION STUDY COMMISSION.

    (a) Establishment.--There is established the Bankruptcy Exemption 
Study Commission (in this section referred to as the ``Commission'').
    (b) Duties.--The duties of the Commission are to investigate, 
study, solicit divergent views of all parties interested in the 
bankruptcy system and report on issues and problems and any proposals 
of the Commission relating to exemptions under section 522, title 11, 
United States Code, including whether exemptions under that section 
should be uniform nationally, and the size of exemptions appropriate in 
individual cases under title 11.
    (c) Membership.--The Commission shall be composed of 8 members as 
follows:
            (1) Two members shall be appointed by the President, 1 of 
        whom shall be designated chairman by the President.
            (2) Three members shall be appointed by the majority leader 
        of the Senate.
            (3) Three members shall be appointed by the Speaker of the 
        House of Representatives.
Members of Congress, and officers and employees of the executive 
branch, shall be ineligible for appointment to the Commission. Members 
of the Commission shall be appointed for the life of the Commission.
    (d) Quorum.--Three members of the Commission shall constitute a 
quorum, but a lesser number may conduct meetings.
    (e) First Appointments.--The first appointments made under 
paragraph (3) shall be made within 60 days after the date of enactment 
of this Act.
    (f) First Meeting.--The first meeting of the Commission shall be 
called by the chairman and shall be held within 100 days after the date 
of the enactment of this Act.
    (g) Vacancies.--A vacancy on the Commission resulting from the 
death or resignation of a member shall not affect its powers and shall 
be filled in the same manner in which the original appointment was 
made.
    (h) Continuation of Service.--If any member of the Commission who 
was appointed to the Commission as an officer or employee of a 
government leaves the office, or if any member of the Commission who 
was not appointed in such a capacity becomes an officer or employee of 
a government, the member may continue as a member of the Commission for 
not longer than a 90-day period beginning on the date the member leaves 
that office or becomes such an officer or employee, as the case may be.
    (i) Compensation.--A member of the Commission who is an officer or 
employee of the United States shall serve without additional 
compensation.
    (j) Expenses of Members.--Members of the Commission shall be 
reimbursed for travel, subsistence, and other necessary expenses 
incurred by them in the performance of their duties.
    (k) Personnel.--The chairman of the Commission may, without regard 
to the civil service laws and regulations, appoint, and terminate such 
personnel as are necessary to enable the Commission to perform its 
duties. The chairman of the Commission may fix the compensation of the 
personnel without regard to the provisions of chapter 51 and subchapter 
II of chapter 53 of title 5, United States Code, relating to 
classification of positions and General Schedule pay rates, except that 
the rate of pay for the executive director and other personnel may not 
exceed the rate payable for level V of the Executive Schedule under 
section 5316 of that title.
    (l) Experts and Consultants.--The Commission may procure temporary 
and intermittent services of experts and consultants under section 
3109(b) of title 5, United States Code.
    (m) Hearings.--The Commission or, on authorization of the 
Commission, a member of the Commission, may hold such hearings, sit and 
act at such time and places, take such testimony, and receive such 
evidence, as the Commission considers appropriate. The Commission or a 
member of the Commission may administer others or affirmations to 
witnesses appearing before it.
    (n) Obtaining Information.--The Commission may secure directly from 
any Federal department, agency, or court information necessary to 
enable it to carry out this section. Upon request of a Federal 
department or agency, or a chief judge of a Federal court shall furnish 
such information, consistent with law, to the Commission.
    (o) Facilities and Support Services.--The Administrator of General 
Services shall provide to the Commission on a reimbursable basis such 
facilities and support services as the Commission may request. Upon 
request of the Commission, the head of a Federal department or agency 
may make any of the facilities or services of the agency available to 
the Commission to assist the Commission in carrying out its duties 
under this section.
    (p) Expenditures and Contracts.--The Commission or, on 
authorization of the Commission, a member of the Commission, may make 
expenditures and enter into contracts for the procurement of such 
supplies, services, and property as the Commission or member considers 
appropriate for the purposes of carrying out the duties of the 
Commission. Such expenditures and contracts may be made only to such 
extent or in such amounts as are provided in appropriation action.
    (q) Use of Mails.--The Commission may use the United States mails 
in the same manner and under the same conditions as other Federal 
departments and agencies of the United States.
    (r) Donations.--The Commission may accept, use, and dispose of 
gifts or donations of services or property.
    (s) Report.--The Commission shall submit to the Congress, the Chief 
Justice of the United States, and the President a report not later than 
1 year after the date of enactment of this Act. The report shall 
contain a detailed statement of the findings and conclusions of the 
Commission, together with its recommendations for such legislative or 
administrative action as it considers appropriate.
    (t) Termination.--The Commission shall cease to exist on the date 
that is 30 days after the date on which it submits its report.
    (u) Authorization of Appropriations.--There is authorized to be 
appropriated $500,000 to carry out this section.

SEC. 114. TIMELY FILING AND CONFIRMATION OF PLANS IN CHAPTER 13.

    Title 11, United States Code, is amended--
            (1) by inserting in section 1321 after ``plan'' the 
        following:
``on or before 90 days after the filing of the petition unless the 
court, after notice and hearing, orders otherwise.''; and
            (2) in section 1324 by adding at the end the following:
``Such hearing shall be held within forty-five days of the filing of 
the plan, unless the court, after notice and hearing, orders 
otherwise.''.

SEC. 115. DEFINITION OF SUBSTANTIAL ABUSE.

    Section 707(b) of title 11, United States Code, is amended to read 
as follows:
    ``(b)(1) After notice and a hearing, the court, on its own motion 
or on motion by the United States trustee or any party in interest 
shall dismiss a case filed by an individual debtor under this chapter 
if it finds that the granting of relief would be a substantial abuse of 
the provisions of this chapter.
    ``(2) The court shall determine that substantial abuse exists if 
either--
            ``(A) the debtor is excluded from this chapter pursuant to 
        section 109 of this title; or
            ``(B) the totality of the circumstances of the debtor's 
        financial situation demonstrate substantial abuse.
    ``(3) In the case of a motion brought by a party in interest other 
than the trustee or United States Trustee under paragraph (1) which is 
denied by the court and found to be based on unsubstantiated 
allegations, the court may award against the moving party reasonable 
attorney's fees and costs which the debtor incurred in defending the 
motion.''.

SEC. 116. GIVING DEBTORS THE ABILITY TO KEEP LEASED PERSONAL PROPERTY 
              BY ASSUMPTION.

    Section 365 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(p)(1) If a lease of personal property is rejected or not timely 
assumed by the trustee under subsection (d), the leased property is no 
longer property of the estate and the stay under section 362(a) of this 
title is automatically terminated.
    ``(2) In the case of an individual under chapter 7, the debtor may 
notify the creditor in writing that the debtor desires to assume the 
lease. Upon being so notified, the creditor may, at its option, notify 
the debtor that it is willing to have the lease assumed by the debtor 
and may condition such assumption on cure of any outstanding default on 
terms set by the lessor. If within 30 days of such notice the debtor 
notifies the lessor in writing that the lease is assumed, the liability 
under the lease will be assumed by the debtor and not by the estate. 
The stay under section 362 of this title and the injunction under 
section 524(a)(2) of this title shall not be violated by notification 
of the debtor and negotiation of cure under this subsection.
    ``(3) In a chapter 11 case in which the debtor is an individual and 
in a chapter 13 case, if the debtor is the lessee with respect to 
personal property and the lease is not assumed in the plan confirmed by 
the court, the lease is deemed rejected as of the conclusion of the 
hearing on confirmation. If the lease is rejected, the stay under 
section 362 of this title and any stay under section 1301 is 
automatically terminated with respect to the property subject to the 
lease.''.

SEC. 117. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION IN CERTAIN CASES.

    Title 11, United States Code, is amended--
            (1) by amending section 1322(d) to read as follows:
    ``(d) If the total current monthly income of the debtor and in a 
joint case, the debtor and the debtor's spouse combined, is 75 percent 
of the national median family income for a family of equal size or, in 
the case of a household of one person, 75 percent of the national 
median household income for one earner, or more, the plan may not 
provide for payments over a period that is longer than 5 years, unless 
the court, for cause, approves a longer period, but the court may not 
approve a period that is longer than 7 years. If the total current 
monthly income of the debtor or in a joint case, the debtor and the 
debtor's spouse combined, is less than 75 percent of the national 
median family income for a family of equal size or, in the case of a 
household of one person, and less than, 75 percent of the national 
median household income for one earner, the plan may not provide for 
payments over a period that is longer than three years, unless the 
court, for cause, approves a longer period, but the court may not 
approve a period that is longer than five years.'';
            (2) in section 1329--
                    (A) by striking in subsection (c) ``three years'' 
                and inserting ``the applicable commitment period under 
                section 1325(b)(1)(B)(ii)'' and by striking ``five 
                years'' and inserting ``maximum duration period''; and
                    (B) by inserting at the end of subsection (c) the 
                following:
``The maximum duration period shall be 5 years if the debtor's total 
current monthly income is $2,000 or more as of the date of modification 
and shall be three years if the debtor's total current monthly income 
is less than $2,000 or less as of the date of modification.''

SEC. 118. APPLYING THE CO-DEBTOR STAY ONLY WHEN IT PROTECTS THE DEBTOR.

    Section 1301(b) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2) When the debtor did not receive the consideration for the 
claim held by a creditor, the stay provided by subsection (a) does not 
apply to such creditor, notwithstanding subsection (c), to the extent 
the creditor proceeds against the individual which received such 
consideration or against property not in the possession of the debtor 
which secures such claim.
    ``(3) When the debtor's plan provides that the debtor's interest in 
personal property subject to a lease as to which the debtor is the 
lessee will be surrendered or abandoned or no payments will be made 
under the plan on account of the debtor's obligations under the lease, 
the stay provided by subsection (a) shall terminate as of the date of 
confirmation of the plan notwithstanding subsection (c).''.

SEC. 119. DEFINITION OF HOUSEHOLD GOODS.

    Section 522(f) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(4) As used in this paragraph, `household goods' shall have the 
meaning given in the Trade Regulation Rule on Credit Practices 
promulgated by the Federal Trade Commission, 16 C.F.R. 444.1(i) as in 
existence on the date of enactment.''.

SEC. 120. PROTECTION OF HOLDERS OF CLAIMS SECURED BY DEBTOR'S PRINCIPAL 
              RESIDENCE.

    Title 11, United States Code, is amended--
            (1) in section 101 by inserting after paragraph (13) the 
        following:
            ``(13A) `debtor's principal residence' means a residential 
        structure including incidental property when the structure 
        contains one to four units, whether or not that structure is 
        attached to real property, and includes, without limitation, an 
        individual condominium or cooperative unit or mobile or 
        manufactured home or trailer;
            ``(13B) `incidental property' means property incidental to 
        such residence including, without limitation, property commonly 
        conveyed with a principal residence where the real estate is 
        located, window treatments, carpets, appliances and equipment 
        located in the residence, and easements, appurtenances, 
        fixtures, rents, royalties, mineral rights, oil and gas rights, 
        escrow funds and insurance proceeds.'';
                    (A) in paragraph (17) by striking ``or'' at the end 
                thereof;
                    (B) in paragraph (18) by striking the period at the 
                end; and
                    (C) in section 362(b) by inserting after paragraph 
                (18) the following:
            ``(19) under subsection (a), until a prepetition default is 
        cured fully in a chapter 13 of this title case by actual 
        payment of all arrears as required by the plan, of the 
        postponement, continuation or other similar delay of a 
        prepetition foreclosure proceeding or sale in accordance with 
        applicable nonbankruptcy law, but nothing herein shall imply 
        that such postponement, continuation or other similar delay is 
        a violation of the stay under subsection (a).'';
            (2) by amending section 1322(b)(2) to read as follows:
            ``(2) modify the rights of holders of secured claims, other 
        than a claim secured only by a security interest in property 
        used as the debtor's principal residence at any time during 180 
        days prior to the filing of the petition, or of holders of 
        unsecured claims, or leave unaffected the rights of holders of 
        any class of claims;''.

SEC. 121. EXTEND PERIOD BETWEEN BANKRUPTCY DISCHARGES.

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

              TITLE II--IMPROVED BANKRUPTCY ADMINISTRATION

SEC. 201. IMPROVED BANKRUPTCY STATISTICS.

    (a) Amendment.--Title 28, United States Code, is amended by adding 
after section 158 the following new section:
``Sec. 159. Bankruptcy statistics
    ``The clerk of each district shall compile statistics regarding 
individual debtors with primarily consumer debts seeking relief under 
chapters 7, 11, and 13 of title 11, United States Code. Such statistics 
shall be in a form prescribed by the Administrative Office of the 
United States Courts. The Office shall compile such statistics, and 
make them public, and report annually to the Congress on the 
information collected, and on its analysis thereof, no later than 
October 31 of each year. Such compilation shall be itemized by chapter 
of title 11 of the United States Code, shall be presented in the 
aggregate and for each district, and shall include the following:
            ``(1) Total assets and total liabilities of such debtors, 
        and in each category of assets and liabilities, as reported in 
        the schedules prescribed pursuant to 28 U.S.C. 2075 and filed 
        by such debtors.
            ``(2) The current total monthly income, projected monthly 
        net income, and average income and average expenses of such 
        debtors as reported on the schedules and statements the debtor 
        has filed under sections 111, 521 and 1322 of this title.
            ``(3) The aggregate amount of debt discharged in the 
        reporting period, determined as the difference between the 
        total amount of debt and obligations of a debtor reported on 
        the schedules and the amount of such debt reported in 
        categories which are predominantly non-dischargeable.
            ``(4) The average time between the filing of the petition 
        and the closing of the case.
            ``(5) The number of cases in the reporting period in which 
        a reaffirmation was filed and the total number of 
        reaffirmations filed in that period, and of those cases in 
        which a reaffirmation was filed, the number in which the debtor 
        was not represented by an attorney, and of those the number of 
        cases in which the reaffirmation was approved by the court.
            ``(6) With respect to cases filed under chapter 13 of title 
        11--
                    ``(A) the number of cases in which a final order 
                was entered determining the value of property securing 
                a claim less than the claim, and the total number of 
                such orders in the reporting period; and
                    ``(B) the number of cases dismissed for failure to 
                make payments under the plan.
            ``(7) The number of cases in which the debtor filed another 
        case within the 6 years previous to the filing.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 18 months after the date of the enactment of this Act.

SEC. 202. AUDIT PROCEDURES.

    (a) Amendment.--Section 586 of title 28, United States Code, is 
amended--
            (1) by amending paragraph (6) to read as follows:
            ``(6) make such reports as the Attorney General directs, 
        including the results of audits performed under subsection 
        (f).'';
            (2) by inserting at the end the following:
    ``(f)(1) The Attorney General shall establish procedures for the 
auditing of the accuracy and completeness of petitions, schedules and 
other information which the debtor is required to provide under 
sections 521 and 1322, and, if applicable, section 111, of title 11 in 
individual cases filed under chapter 7 or 13 of such title. Such audits 
shall be in accordance with generally accepted auditing standards and 
performed by independent certified public accountants or independent 
licensed public accountants. Such procedures shall--
            ``(A) establish a method of selecting appropriate qualified 
        persons to contract with the United States Trustee to perform 
        such audits;
            ``(B) establish a method of randomly selecting cases to be 
        audited according to generally accepted audit standards, 
        provided that no less than one out of every fifty cases in each 
        Federal judicial district shall be selected for audit;
            ``(C) require audits for schedules of income and expenses 
        which reflect higher than average variances from the 
        statistical norm of the district in which the schedules were 
        filed;
            ``(D) establish procedures for reporting the results of 
        such audits and any material misstatement of income, 
        expenditures or assets of a debtor to the Attorney General, the 
        United States Attorney and the court, as appropriate, and for 
        providing public information no less than annually on the 
        aggregate results of such audits including the percentage of 
        cases, by district, in which a material misstatement of income 
        or expenditures is reported; and
            ``(E) establish procedures for fully funding such audits, 
        including procedures requiring each debtor with sufficient 
        available income or assets to contribute to the payment for 
        such audits, either as an administrative expense or otherwise.
    ``(2) The United States trustee for each district is authorized to 
contract with auditors to perform audits in cases designated by the 
United States trustee according to the procedures established under 
paragraph (1) of this subsection.
    ``(3) According to procedures established under paragraph (1), upon 
request of a duly appointed auditor, the debtor shall cause the 
accounts, papers, documents, financial records, files and all other 
papers, things or property belonging to the debtor as the auditor 
requests and which are reasonably necessary to facilitate audit to be 
made available for inspection and copying.
    ``(4) The report of each such audit shall be filed with the court, 
the Attorney General, and the United States Attorney, as required under 
procedures established by the Attorney General under paragraph (1). If 
a material misstatement of income or expenditures or of assets is 
reported, a statement specifying such misstatement shall be filed with 
the court and the United States trustee shall give notice thereof to 
the creditors in the case and, in an appropriate case, in the opinion 
of the United States trustee, requires investigation with respect to 
possible criminal violations, the United States Attorney for the 
district.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of the enactment of this Act.

SEC. 203. NATIONWIDE DOCKET OF CASES UNDER TITLE 11.

    (a) Amendment.--Section 586 of title 28, United States Code, as 
amended by section 202, is amended by adding at the end the following:
    ``(g)(1) The Administrative Office of the United States Courts 
shall establish a nationwide docket of the name, address, bankruptcy 
case number, and district of filing of the debtors who file after that 
date for relief under title 11, chapter 7, 11, 12, and 13, to be 
established and maintained by the Administrative Office of the United 
States Courts. The docket may include any other information disclosed 
on the petition or otherwise which the Administrative Office of the 
United States Courts determines is necessary to assure the accuracy and 
integrity of the identification of the debtor and the debtor's case in 
the docket. The Administrative Office of the United States Courts is 
authorized to prescribe regulations, forms, and procedures for the 
prompt entry and maintenance in such central docket by the district 
court of the required information. Such docket shall be subject to 
nationwide search by users alphabetically by last name, numerically by 
the surname of the debtor, and in a joint case, the surname of the 
debtor's spouse, or by street address, or by any other category of 
identification information contained therein.
    ``(2) The Administrative Office of the United States Courts shall 
prescribe standards and procedures with respect to access to the docket 
created under paragraph (1), except that the United States trustees, 
any trustee appointed and duly serving in a case pending under chapter 
7, 11, 12, or 13 of title 11, and any creditor in such a case shall 
have access pursuant to such procedures, but such procedures may impose 
limitations and controls on such access and on the use of information 
obtained reasonably related to protecting the privacy of those 
registered.
    ``(3) The Administrative Office of the United States Courts may 
prescribe a reasonable access fee to defray the cost of creating and 
maintaining the docket created under paragraph (1), provided that such 
fee shall be charged every user of the docket including the United 
States trustee and any trustee, and provided that such fee shall not 
exceed $5 per search of any combination of information with respect to 
any one debtor.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 18 months after the date of the enactment of this Act.

SEC. 204. ADEQUATE PREPARATION TIME FOR CREDITORS BEFORE THE FIRST 
              MEETING OF CREDITORS IN INDIVIDUAL CASES.

    Section 341(a) of title 11, United States Code, is amended by 
inserting after the first sentence the following:
``If the debtor is an individual in a voluntary case under chapter 7, 
11, or 13, the first meeting of creditors shall not be convened earlier 
than 60 days (or later than 90 days) after the date of the order for 
relief, unless the court, after notice and hearing, determines unusual 
circumstances justify an earlier meeting.''.

SEC. 205. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.

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

SEC. 206. GIVING CREDITORS FAIR NOTICE IN CHAPTER 7 AND 13 CASES.

    Section 342 of title 11, United States Code, is amended--
            (1) in subsection (c)--
                    (A) by striking ``, but the failure of such notice 
                to contain such information shall not invalidate the 
                legal effect of such notice''; and
                    (B) by adding the following at the end:
``If the credit agreement between the debtor and the creditor or the 
last communication before the filing of the petition in a voluntary 
case from the creditor to a debtor who is an individual states an 
account number of the debtor which is the current account number of the 
debtor with respect to any debt held by the creditor against the 
debtor, the debtor shall include such account number in any notice to 
the creditor required to be given under this title. If the creditor has 
specified to the debtor an address at which the creditor wishes to 
receive correspondence regarding the debtor's account, any notice to 
the creditor required to be given by the debtor under this title shall 
be given at such address. For the purposes of this section, `notice' 
shall include, but shall not be limited to, any correspondence from the 
debtor to the creditor after the commencement of the case, any 
statement of the debtor's intention under section 521(2) of this title, 
notice of the commencement of any proceeding in the case to which the 
creditor is a party, and any notice of the hearing under section 
1324.'';
            (2) by adding at the end of section 342 the following:
    ``(d) At any time, a creditor in a case of an individual under 
chapter 7 or 13 may file with the court and serve on the debtor a 
notice of the address to be used to notify the creditor in that case. 
Five days after receipt of such notice, if the court or the debtor is 
required to give the creditor notice, such notice shall be given at 
that address.
    ``(e) An entity may file with the court a notice stating its 
address for notice in cases under chapters 7 and 13. After 30 days 
following the filing of such notice, any notice in any case filed under 
chapters 7 or 13 given by the court shall be to that address unless 
specific notice is given under subsection (d) with respect to a 
particular case.
    ``(f) Notice given to a creditor other than as provided in this 
section shall not be effective notice until it has been brought to the 
attention of the creditor. If the creditor has designated a person or 
department to be responsible for receiving notices concerning 
bankruptcy cases and has established reasonable procedures so that 
bankruptcy notices received by the creditor will be delivered to such 
department or person, notice will not be brought to the attention of 
the creditor until received by such person or department. No sanction 
under section 362(h) of this title or any other sanction which a court 
may impose on account of violations of the stay under section 362(a) of 
this title or failure to comply with section 542 or 543 of this title 
may be imposed on any action of the creditor unless the action takes 
place after the creditor has received notice of the commencement of the 
case effective under this section.''.

SEC. 207. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

    Section 362(e) of title 11, United States Code, is amended by 
inserting at the end the following:
``Notwithstanding the foregoing, in the case of an individual filing 
under chapter 7, 11, or 13, the stay under subsection (a) of this 
section shall terminate 60 days after a request under subsection (d) of 
this section, unless--
            ``(1) a final decision is rendered by the court within such 
        60-day period; or
            ``(2) such 60-day period is extended either by agreement of 
        all parties in interest or by the court for a specific time 
        which the court finds is required by compelling 
        circumstances.''.

SEC. 208. RELIEF FROM STAY WHEN THE DEBTOR DOES NOT COMPLETE INTENDED 
              SURRENDER OF CONSUMER DEBT COLLATERAL.

    Title 11, United States Code, is amended as follows--
            (1) in section 362--
                    (A) by striking ``(e), and (f)'' in subsection (c) 
                and inserting in lieu thereof ``(e), (f), and (h)''; 
                and
                    (B) by redesignating subsection (h) as subsection 
                (i) and by inserting after subsection (g) the 
                following:
    ``(h) In an individual case pursuant to chapter 7, 11, or 13 the 
stay provided by subsection (a) is terminated with respect to property 
of the estate securing in whole or in part a claim, or subject to an 
unexpired lease, if the debtor fails within 30 days after the 
expiration of the applicable time set by section 521(2) of this title--
            ``(1) to file timely any statement of intention required 
        under section 521(2) of this title with respect to that 
        property or to indicate therein that the debtor will either 
        surrender the property or retain it and, if retaining it, 
        either redeem the property pursuant to section 722 of this 
        title, reaffirm the debt it secures pursuant to section 524(c) 
        of this title, or assume the unexpired lease pursuant to 
        section 365(p) of this title if the trustee does not do so, as 
        applicable; or
            ``(2) to take timely the action specified in that statement 
        of intention, as it may be amended before expiration of the 
        period for taking action, unless the statement of intention 
        specifies reaffirmation and the creditor refuses to reaffirm on 
        the original contract terms.'';
            (2) in section 521--
                    (A) in subsection (2) by striking ``consumer'';
                    (B) in paragraph (2)(B)--
                            (i) by striking ``forty-five'' each place 
                        it appears and inserting ``ninety''; and
                            (ii) by striking ``the filing of a notice 
                        of intent under this section'' and inserting 
                        ``order for relief''; and
                    (C) in paragraph (2)(C) by inserting ``except as 
                provided in section 362(h)'' before the semicolon.

SEC. 209. FILING PROOFS OF CLAIM.

    Section 501 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) In a case under chapter 7 or 13, a proof of claim or interest 
is deemed filed under this section for any claim or interest that 
appears in the schedules filed under section 521(1) of this title, 
except a claim or interest that is scheduled as disputed, contingent, 
or unliquidated.''.

SEC. 210. DEBTOR TO PROVIDE TAX RETURNS AND OTHER INFORMATION.

    Section 521 of title 11, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The'';
            (2) by amending paragraph (1) to read as follows:
            ``(1) file--
                    ``(A) a list of creditors, and
                    ``(B) unless the court orders otherwise--
                            ``(i) a schedule of assets and liabilities;
                            ``(ii) a schedule of current income and 
                        current expenditures;
                            ``(iii) a statement of the debtor's 
                        financial affairs;
                            ``(iv) copies of any federal tax returns, 
                        including any schedules or attachments, filed 
                        by the debtor for the 3 years preceding the 
                        order for relief;
                            ``(v) copies of all payment advices or 
                        other evidence of payment, if any, received by 
                        the debtor from any employer of the debtor in 
                        the period 60 days prior to the filing of the 
                        petition;
                            ``(vi) a statement of the amount of 
                        projected monthly net income, itemized to show 
                        how calculated;
                            ``(vii) if applicable, any statement under 
                        paragraphs (3) and (4) of section 109(h); and
                            ``(viii) a statement disclosing any 
                        reasonably anticipated increase in income or 
                        expenditures over the next 12 months;''; and
            (3) by adding at the end the following:
    ``(b) At any time, a creditor in a case of an individual under 
chapters 7 or 13 may file with the court and serve on the debtor notice 
that the creditor requests the petition, schedules and statement of 
affairs filed by the debtor in the case. At any time, a creditor in a 
case under chapter 13 may file with the court and serve on the debtor 
notice that the creditor requests the plan filed by the debtor in the 
case. Within 10 days of the first such request in a case under this 
subsection for the petition, schedules and statement of affairs and the 
first such request for the plan under this subsection, the debtor shall 
serve on that creditor a conformed copy of the requested documents or 
plan and any amendments thereto as of that date, and shall thereafter 
promptly serve on that creditor at the time filed with the court--
            ``(1) any requested document or plan which is not filed 
        with the court at the time requested; and
            ``(2) any amendment to any requested document or plan.
    ``(c) An individual debtor in a case under chapter 7 or 13 shall 
file with the court--
            ``(1) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, with respect 
        to the period from the commencement of the case until such time 
        as the case is closed;
            ``(2) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, that were not 
        filed with the taxing authority when the schedules under 
        section 521(1) were filed with respect to the period three 
        years before the order for relief;
            ``(3) any amendments to any of the tax returns, including 
        schedules or attachments, described in paragraph (1) or (2); 
        and
            ``(4) in a case under chapter 13, from a time which is the 
        later of ninety days after the close of the debtor's tax year 
        or one year after the order for relief unless a plan has then 
        been confirmed, and thereafter on or before 45 days before each 
        anniversary of the confirmation of the plan until the case is 
        closed, a statement subject to the penalties of perjury by the 
        debtor of the debtor's income and expenditures in the preceding 
        tax year and monthly net income, showing how calculated. Such 
        statement shall disclose the amount and sources of income of 
        the debtor, the identity of any persons responsible with the 
        debtor for the support of any dependents of the debtor, and any 
        persons who contributed and the amount contributed to the 
        household in which the debtor resides. Such tax returns, 
        amendments and statement of income and expenditures shall be 
        available to the United States Trustee, any bankruptcy 
        administrator, any trustee and any party in interest for 
        inspection and copying.''.

SEC. 211. DISMISSAL FOR FAILURE TO FILE SCHEDULES TIMELY OR PROVIDE 
              REQUIRED INFORMATION.

    Section 707 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(c) Notwithstanding subsection (a), if an individual debtor in a 
voluntary case under chapters 7 or 13 fails to file all of the 
information required under section 521(1) of this title within 45 days 
after the filing of the petition, the case shall be automatically 
dismissed effective on the 16th day after the filing of the petition 
without the need for any order of court, but any party in interest may 
request the court to enter an order dismissing the case and the court 
shall, if so requested, enter an order of dismissal within 5 days of 
such request. Upon request of the debtor made within 45 days after the 
filing of the petition, the court may allow the debtor up to an 
additional 15 days to file the information required under section 
521(1) of this title if the court finds compelling justification for 
doing so.
    ``(d) If an individual debtor in a case under chapters 7 or 13 
fails to perform any of the duties imposed by paragraph (7) or (8) of 
section 521 of this title, any party in interest may request that the 
court order the debtor to comply. Within 10 days of such request the 
court shall order that the debtor do so within a period of time set by 
the court no longer than 30 days. If the debtor does not comply with 
that order within the period of time set by the court, the court shall, 
on request of any party in interest certifying that the debtor has not 
so complied, enter an order dismissing the case within 5 days of such 
request.''.

SEC. 212. ADEQUATE PROTECTION OF LESSORS AND PURCHASE MONEY SECURED 
              CREDITORS.

    Title 11, United States Code, is amended by adding after section 
1306 the following:
``Sec. 1307A. Adequate protection in chapter 13 cases
    ``(a)(1) On or before 30 days after the filing of a case under this 
chapter, the debtor shall make cash payments in the amount described 
below to any lessor of personal property and to any creditor holding a 
claim secured by personal property to the extent such claim is 
attributable to the purchase of such property by the debtor. The debtor 
or the plan shall continue such payments until the earlier of--
            ``(A) the time at which the creditor begins to receive 
        actual payments under the plan; or
            ``(B) the debtor relinquishes possession of such property 
        to the lessor or creditor, or to any third party acting under 
        claim of right, as applicable.
    ``(2) Such cash payments shall be in the amount of any weekly, 
biweekly, monthly or other periodic payment scheduled as payable under 
the contract between the debtor and creditor; shall be paid at the 
times at which such payments are scheduled to be made; and shall not 
include any arrearages, penalties, or default or delinquency charges. 
Such payments shall be deemed to be adequate protection payments under 
section 362 of this title.
    ``(b) The court may, after notice and hearing, change the amount 
and timing of the adequate protection payment under subsection (a), but 
in no event shall it be payable less frequently than monthly or in an 
amount less than the reasonable depreciation of such property month to 
month.
    ``(c) Notwithstanding section 1326(b) of this title, if a confirmed 
plan provides for payments to a creditor or lessor described in 
subsection (a) and provides that payments to such creditor or lessor 
under the plan will be deferred until payment of amounts described in 
section 1326(b) of this title, the payments required hereunder shall 
nonetheless be continued in addition to plan payments until actual 
payments to the creditor begin under the plan.
    ``(d) Notwithstanding sections 362, 542, and 543 of this title, a 
lessor or creditor described in subsection (a) may retain possession of 
property described in subsection (a) which was obtained rightfully 
prior to the date of filing of the petition until the first such 
adequate protection payment is received by the lessor or creditor. Such 
retention of possession and any acts reasonably related thereto shall 
not violate the stay imposed under section 362(a) of this title, nor 
any obligations imposed under section 542 or 543 of this title.
    ``(e) On or before 60 days after the filing of a case under this 
chapter, a debtor retaining possession of personal property subject to 
a lease or securing a claim attributable in whole or in part to the 
purchase price of that property shall provide each creditor or lessor 
reasonable evidence of the maintenance of any required insurance 
coverage with respect to the use or ownership of such property and 
continue to do so for so long as the debtor retains possession of such 
property.''.

SEC. 213. ADEQUATE TIME TO PREPARE FOR HEARING ON CONFIRMATION OF THE 
              PLAN.

    Section 1324 of title 11, United States Code, is amended--
            (1) by striking ``After'' and inserting the following:
    ``(a) Except as provided in subsection (b) and after''; and
            (2) by adding at the end the following:
    ``(b) If a creditor objects not later than 5 days after receiving 
notice of a hearing on confirmation of the plan, the hearing on 
confirmation of the plan may be held no earlier than twenty days after 
the first meeting of creditors under section 341(a) of this title.''.
                                 <all>