[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3150 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3150

  To amend title 11 of the United States Code, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 1998

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

_______________________________________________________________________

                                 A BILL


 
  To amend title 11 of the United States Code, and for other purposes.

    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 ``Bankruptcy Reform 
Act of 1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--CONSUMER BANKRUPTCY PROVISIONS

                   Subtitle A--Needs-Based Bankruptcy

Sec. 101. Needs-based bankruptcy.
Sec. 102. Adequate income shall be committed to a plan that pays 
                            unsecured creditors.
Sec. 103. Definition of inappropriate use.
             Subtitle B--Adequate Protections for Consumers

Sec. 111. Notice of alternatives.
Sec. 112. Debtor financial management training test program.
Sec. 113. Definitions.
Sec. 114. Disclosures.
Sec. 115. Debtor's bill of rights.
Sec. 116. Enforcement.
          Subtitle C--Adequate Protections for Secured Lenders

Sec. 121. Discouraging bad faith repeat filings.
Sec. 122. Definitions of household goods and antiques.
Sec. 123. Debtor retention of personal property security.
Sec. 124. Relief from stay when the debtor does not complete intended 
                            surrender of consumer debt collateral.
Sec. 125. Giving secured creditors fair treatment in chapter 13.
Sec. 126. Prompt relief from stay in individual cases.
Sec. 127. Stopping abusive conversions from chapter 13.
Sec. 128. Restraining abusive purchases on secured credit.
Sec. 129. Fair valuation of collateral.
Sec. 130. Protection of holders of claims secured by debtor's principal 
                            residence.
         Subtitle D--Adequate Protections for Unsecured Lenders

Sec. 141. Debts incurred to pay nondischargeable debts.
Sec. 142. Credit extensions on the eve of bankruptcy presumed 
                            nondischargeable.
Sec. 143. Fraudulent debts are nondischargeable in chapter 13 cases.
Sec. 144. Applying the codebtor stay only when it protects the debtor.
Sec. 145. Credit extensions without a reasonable expectation of 
                            repayment made nondischargeable.
              Subtitle E--Adequate Protections for Lessors

Sec. 161. Giving debtors the ability to keep leased personal property 
                            by assumption.
Sec. 162. Adequate protection of lessors and purchase money secured 
                            creditors.
Sec. 163. Adequate protection for lessors.
  Subtitle F--Bankruptcy Relief Less Frequently Available for Repeat 
                                 Filers

Sec. 171. Extend period between bankruptcy discharges.
                         Subtitle G--Exemptions

Sec. 181. Exemptions.
                TITLE II--BUSINESS BANKRUPTCY PROVISIONS

                     Subtitle A--General Provisions

Sec. 201. Limitation relating to the use of fee examiners.
Sec. 202. Sharing of compensation.
Sec. 203. Chapter 12 made permanent law.
Sec. 204. Meetings of creditors and equity security holders.
Sec. 205. Creditors' and equity security holders' committees.
Sec. 206. Postpetition disclosure and solicitation.
Sec. 207. Preferences.
Sec. 208. Venue of certain proceedings.
Sec. 209. Setting a date certain for trustees to accept or reject 
                            unexpired leases on nonresidential real 
                            property.
                    Subtitle B--Specific Provisions

                  Chapter 1--Small Business Bankruptcy

Sec. 231. Definitions.
Sec. 232. Flexible rules for disclosure statement and plan.
Sec. 233. Standard form disclosure statements and plans.
Sec. 234. Uniform national reporting requirements.
Sec. 235. Uniform reporting rules and forms.
Sec. 236. Duties in small business cases.
Sec. 237. Plan filing and confirmation deadlines.
Sec. 238. Plan confirmation deadline.
Sec. 239. Prohibition against extension of time.
Sec. 240. Duties of the United States trustee and bankruptcy 
                            administrator.
Sec. 241. Scheduling conferences.
Sec. 242. Serial filer provisions.
Sec. 243. Expanded grounds for dismissal or conversion and appointment 
                            of trustee.
                  Chapter 2--Single Asset Real Estate

Sec. 251. Single asset real estate defined.
Sec. 252. Plan confirmation.
Sec. 253. Payment of interest.
               TITLE III--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 301. Petition and proceedings related to petition.
                  TITLE IV--BANKRUPTCY ADMINISTRATION

                     Subtitle A--General Provisions

Sec. 401. Adequate preparation time for creditors before the first 
                            meeting of creditors in individual cases.
Sec. 402. Creditor representation at first meeting of creditors.
Sec. 403. Filing proofs of claim.
Sec. 404. Audit procedures.
Sec. 405. Giving creditors fair notice in chapter 7 and 13 cases.
Sec. 406. Timely filing and confirmation of plans in chapter 13.
Sec. 407. Debtor to provide tax returns and other information.
Sec. 408. Dismissal for failure to file schedules timely or provide 
                            required information.
Sec. 409. Adequate time to prepare for hearing on confirmation of the 
                            plan.
Sec. 410. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 411. Sense of the Congress regarding expansion of rule 9011 of the 
                            Federal Rules of Bankruptcy Procedure.
Sec. 412. Jurisdiction of courts of appeals.
                      Subtitle B--Data Provisions

Sec. 441. Improved bankruptcy statistics.
Sec. 442. Bankruptcy data.
Sec. 443. Sense of the Congress regarding availability of bankruptcy 
                            data.
                        TITLE V--TAX PROVISIONS

Sec. 501. Treatment of certain liens.
Sec. 502. Enforcement of child and spousal support.
Sec. 503. Effective notice to government.
Sec. 504. Notice of request for a determination of taxes.
Sec. 505. Rate of interest on tax claims.
Sec. 506. Tolling of priority of tax claim time periods.
Sec. 507. Assessment defined.
Sec. 508. Chapter 13 discharge of fraudulent and other taxes.
Sec. 509. Chapter 11 discharge of fraudulent taxes.
Sec. 510. The stay of proceedings in tax court.
Sec. 511. Periodic payment of taxes in chapter 11 cases.
Sec. 512. The avoidance of statutory tax liens prohibited.
Sec. 513. Course of business payment of taxes.
Sec. 514. Tardily filed priority tax claims.
Sec. 515. Income tax returns prepared by tax authorities.
Sec. 516. The discharge of the estate's liability for unpaid taxes.
Sec. 517. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 518. Standards for tax disclosure.
Sec. 519. Setoff of tax refunds.
                        TITLE VI--MISCELLANEOUS

Sec. 601. Technical amendments.
Sec. 602. Effective date; application of amendments.

                TITLE I--CONSUMER BANKRUPTCY PROVISIONS

                   Subtitle A--Needs-Based Bankruptcy

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).'';
            (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 nonpriority 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 provided all the information required under 
        subsections (a)(1) and (c)(1)(A) of section 521, 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 provided by the debtor under subsections (a)(1) and 
        (c)(1) 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 the current monthly total income of the debtor 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 it is being 
                determined;
                    ``(B) the average monthly payment on account of 
                secured creditors, which shall be calculated as of the 
                date of determination as the total of all amounts then 
                remaining to be paid on account of secured claims 
                pursuant to the plan less any of such amounts to be 
                paid from sources other than the debtor's income, 
                divided by the total months remaining of the plan; and
                    ``(C) the average monthly payment on account of 
                priority creditors, which shall be calculated as the 
                total of all amounts then remaining to be paid on 
                account of priority claims pursuant to the plan less 
                any of such amounts to be paid from sources other than 
                the debtor's income, divided by the total months 
                remaining of the plan.'';
            (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. The court may award to the party that prevails 
        with respect to such objection a reasonable attorney's fee and 
        costs incurred by the prevailing party in connection with such 
        objection if the court finds that the position of the 
        nonprevailing party was not substantially justified, but the 
        court shall not award such fee or such costs if special 
        circumstances make the award unjust.
    ``(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 be paid per month to unsecured nonpriority 
        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 nonpriority 
                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. DEFINITION OF INAPPROPRIATE USE.

    Section 707(b) of title 11, United States Code, is amended to read 
as follows:
    ``(b)(1) After notice and a hearing, the court--
            ``(A) on its own motion or on the motion of the United 
        States trustee or any party in interest, shall dismiss a case 
        filed by an individual debtor under this chapter; or
            ``(B) with the debtor's consent, convert the case to a case 
        under chapter 13 of this title;
if the court finds that the granting of relief would be an 
inappropriate use of the provisions of this chapter.
    ``(2) The court shall determine that inappropriate use of the 
provisions of this chapter exists if--
            ``(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 demonstrates such inappropriate use.
    ``(3) In the case of a motion filed by a party in interest other 
than the trustee or United States trustee under paragraph (1) that is 
denied by the court, the court shall award against the moving party a 
reasonable attorney's fee and costs that the debtor incurred in 
opposing the motion if the court finds that the position of the moving 
party was not substantially justified, but the court shall not award 
such fee and costs if special circumstances would make the award 
unjust.''.

             Subtitle B--Adequate Protections for Consumers

SEC. 111. NOTICE OF ALTERNATIVES.

    (a) Section 342(b) of title 11, United States Code, is amended to 
read as follows:
    ``(b)(1) Before 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 under section 
521(a)(1)(B)(viii)) a written notice that is prescribed by the United 
States trustee for the district in which the petition is filed pursuant 
to section 586 of title 28 and that contains the following:
            ``(A) 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 such chapters.
            ``(B) A brief description of services that may be available 
        to the individual from an independent nonprofit debt 
        counselling service.
            ``(C) The name, address, and telephone number of each 
        nonprofit debt counselling service (if any) with an office 
        located in the district in which the petition is filed.
    ``(2) Any such nonprofit debt counselling service that registers 
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 such debt counselling service shall not be 
so listed.''.
    (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)(1) of title 11 for each district included in the 
        region.''.

SEC. 112. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

    (a) Development of Financial Management and Training Curriculum and 
Materials.--The Director of the Executive Office for United States 
Trustees (in this section referred to as the ``Director'') shall, in 
consultation with trustees who are appointed under chapter 13 of title 
11 of the United States Code and who operate financial management 
education programs for debtors, develop a financial management training 
curriculum and materials that can be used to educate individual debtors 
on how to better manage their finances.
    (b) Test--(1) The Director shall select 3 judicial districts of the 
United States in which to test the effectiveness of the financial 
management training curriculum and materials developed under subsection 
(a).
    (2) For a 1-year period beginning not later than 60 days after the 
date of the enactment of this Act, such curriculum and materials shall 
be made available by the Director, directly or indirectly, on request 
to individual debtors in cases filed in such 1-year period under 
chapter 7 or 13 of title 11 of the United States Code.
    (3) The bankruptcy courts in each of such districts may require 
individual debtors in such cases to undergo such financial management 
training as a condition to receiving a discharge in such case.
    (c) Evaluation.--(1) During the 1-year period referred to in 
subsection (b), the Director shall evaluate the effectiveness of--
            (A) the financial management training curriculum and 
        materials developed under subsection (a); and
            (B) a sample of existing consumer education programs such 
        as those described in the Report of the National Bankruptcy 
        Review Commission (October 20, 1997) that are representative of 
        consumer education programs carried out by the credit industry, 
        by trustees serving under chapter 13 of title 11 of the United 
        States Code, and by consumer counselling groups.
    (2) Not later than 3 months after concluding such evaluation, the 
Director shall submit a report to the Speaker of the House of 
Representatives and the President pro tempore of the Senate, for 
referral to the appropriate committees of the Congress, containing the 
findings of the Director regarding the effectiveness of such 
curriculum, such materials, and such programs.

SEC. 113. DEFINITIONS.

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

SEC. 114. DISCLOSURES.

    (a) Disclosures.--Subchapter II of chapter 5 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 526. Disclosures
    ``(a) A debt relief counselling agency providing bankruptcy 
assistance to an assisted person shall provide the following notices to 
the assisted person:
            ``(1) the written notice required under section 342(b)(1) 
        of this title; and
            ``(2) to the extent not covered in the written notice 
        described in paragraph (1) of this section and no later than 
        three business days after the first date on which a debt relief 
        counselling agency first offers to provide any bankruptcy 
        assistance services to an assisted person, a clear and 
        conspicuous written notice advising assisted persons of the 
        following:
                    ``(A) all information the assisted person is 
                required to provide with a petition and thereafter 
                during a case under this title must be complete, 
                accurate and truthful;
                    ``(B) all assets and all liabilities must be 
                completely and accurately disclosed in the documents 
                filed to start the case, and the replacement value of 
                each asset as defined in section 506 of this title must 
                be stated in those documents where requested after 
                reasonable inquiry to establish such value;
                    ``(C) current monthly total income, projected 
                monthly net income and, in a chapter 13 case, monthly 
                net income must be stated after reasonable inquiry;
                    ``(D) that information an assisted person provides 
                during their case may be audited pursuant to this title 
                and that failure to provide such information may result 
                in dismissal of the proceeding under this title or 
                other sanction including, in some instances, criminal 
                sanctions.
    ``(b) A debt relief counselling agency providing bankruptcy 
assistance to an assisted person shall provide each assisted person at 
the same time as the notices required under subsection (a)(1) with the 
following statement, to the extent applicable, or one substantially 
similar. The statement shall be clear and conspicuous and shall be in a 
single document separate from other documents or notices provided to 
the assisted person:
    ```IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM 
AN ATTORNEY OR BANKRUPTCY PETITION PREPARER
    ```If you decide to seek bankruptcy relief, you can represent 
yourself, you can hire an attorney to represent you, or you can get 
help in some localities from a bankruptcy petition preparer who is not 
an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION 
PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR 
BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. 
Ask to see the contract before you hire anyone.
    ```The following information helps you understand what must be done 
in a routine bankruptcy case to help you evaluate how much service you 
need. Although bankruptcy can be complex, many cases are routine.
    ```Before filing a bankruptcy case either you or your attorney 
should analyze your eligibility for different forms of debt relief made 
available by the Bankruptcy Code and which form of relief is most 
likely to be beneficial for you. Be sure you understand the relief you 
can obtain and its limitations. To file a bankruptcy case, documents 
called a Petition, Schedules and Statement of Affairs, as well as in 
some cases a Statement of Intention need to be prepared correctly and 
filed with the bankruptcy court. You will have to pay a filing fee to 
the bankruptcy court. Once your case starts, you will have to attend 
the required first meeting of creditors where you may be questioned by 
a court official called a ``trustee'' and by creditors.
    ```If you select a chapter 7 proceeding, you may be asked by a 
creditor to reaffirm a debt. You may want help deciding whether to do 
so.
    ```If you select a chapter 13 proceeding in which you repay your 
creditors what you can afford over three to seven years, you may also 
want help with preparing your chapter 13 plan and with the confirmation 
hearing on your plan which will be before a bankruptcy judge.'
    ```If you select another type of proceeding under the Bankruptcy 
Code other than chapter 7 or chapter 13, you will want to find out what 
needs to be done from someone familiar with that type of proceeding.
    ```Your bankruptcy proceeding may also involve litigation. You are 
generally permitted to represent yourself in litigation in bankruptcy 
court, but only attorneys, not bankruptcy petition preparers, can 
represent you in litigation.'.
    ``(c) Except to the extent the debt relief counselling agency 
provides the required information itself after reasonably diligent 
inquiry of the assisted person or others so as to obtain such 
information reasonably accurately for inclusion on the petition, 
schedules or statement of affairs, a debt relief counselling agency 
providing bankruptcy assistance to an assisted person shall provide 
each assisted person at the time required for the notice required under 
subsection (a)(1) reasonably sufficient information (which may be 
provided orally or in a clear and conspicuous writing) to the assisted 
person on how to provide all the information the assisted person is 
required to provide under this title pursuant to section 521, 
including--
            ``(1) how to value assets at replacement value, determine 
        current monthly total income, projected monthly income and, in 
        a chapter 13 case, net monthly income, and related 
        calculations;
            ``(2) how to complete the list of creditors, including how 
        to determine what amount is owed and what address for the 
        creditor should be shown;
            ``(3) how to determine what property is exempt and how to 
        value exempt property at replacement value as defined in 
        section 506 of this title.
    ``(d) A debt relief counselling agency shall maintain a copy of the 
notices required under subsection (a) of this section for two years 
after the later of the date on which the notice is given the assisted 
person or the assisted person receives a discharge under this title in 
a case as to which the debt relief counselling agency provides 
bankruptcy assistance to the assisted person.''.
    (b) Conforming Amendment.--The table of section for chapter 5 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 525 the following:

``526. Disclosures.''.

SEC. 115. DEBTOR'S BILL OF RIGHTS.

    (a) Debtor's Bill of Rights.--Subchapter II of chapter 5 of title 
11, United States Code, as amended by section 114, is amended by adding 
at the end the following:
``Sec. 527. Debtor's bill of rights
    ``(a) A debt relief counselling agency shall--
            ``(1) no later than three business days after the first 
        date on which a debt relief counselling agency provides any 
        bankruptcy assistance services to an assisted person, execute a 
        written contract with the assisted person specifying clearly 
        and conspicuously the services the agency will provide the 
        assisted person and the basis on which fees or charges will be 
        made for such services and the terms of payment, and give the 
        assisted person a copy of the fully executed and completed 
        contract in a form the person can keep.
            ``(2) disclose in any advertisement of bankruptcy 
        assistance services or of the benefits of bankruptcy directed 
        to the general public (whether in general media, seminars or 
        specific mailings, telephonic or electronic messages or 
        otherwise) that the services or benefits are with respect to 
        proceedings under this title, clearly and conspicuously using 
        the following statement: ``We are a debt relief counselling 
        agency. We help people file Bankruptcy petitions to obtain 
        relief under the Bankruptcy Code.'' or a substantially similar 
        statement. An advertisement shall be of bankruptcy assistance 
        services if it describes or offers bankruptcy assistance with a 
        chapter 13 plan, regardless of whether chapter 13 is 
        specifically mentioned, including such statements as 
        ``federally supervised repayment plan'' or ``Federal debt 
        restructuring help'' or other similar statements which would 
        lead a reasonable consumer to believe that help with debts was 
        being offered when in fact in most cases the help available is 
        bankruptcy assistance with a chapter 13 plan.
            ``(3) if an advertisement directed to the general public 
        indicates that the debt relief counselling agency provides 
        assistance with respect to credit defaults, mortgage 
        foreclosures, lease eviction proceedings, excessive debt, debt 
        collection pressure, or inability to pay any consumer debt, 
        disclose conspicuously in that advertisement that the 
        assistance is with respect to or may involve proceedings under 
        this title, using the following statement: ``We are a debt 
        relief counselling agency. We help people file Bankruptcy 
        petitions to obtain relief under the Bankruptcy Code.'' or a 
        substantially similar statement.
    ``(b) A debt relief counselling agency shall not--
            ``(1) fail to perform any service which the debt relief 
        counseling agency has told the assisted person or prospective 
        assisted person the agency would provide that person in 
        connection with the preparation for or activities during a 
        proceeding under this title.
            ``(2) make any statement, or counsel or advise any assisted 
        person to make any statement in any document filed in a 
        proceeding under this title, which is untrue or misleading or 
        which upon the exercise of reasonable care, should be known by 
        the debt relief counselling agency to be untrue or misleading.
            ``(3) misrepresent to any assisted person or prospective 
        assisted person, directly or indirectly, affirmatively or by 
        material omission, what services the debt relief counselling 
        agency can reasonably expect to provide that person, or the 
        benefits an assisted person may obtain or the difficulties the 
        person may experience if the person seeks relief in a 
        proceeding pursuant to this title.
            ``(4) advise an assisted person or prospective assisted 
        person to incur more debt in contemplation of that person 
        filing a proceeding under this title or in order to pay an 
        attorney or bankruptcy petition preparer fee or charge for 
        services performed as part of preparing for or representing a 
        debtor in a proceeding under this title.''.
    (b) Conforming Amendment.--The table of section for chapter 5 of 
title 11, United States Code, as amended by section 114, is amended by 
inserting after the item relating to section 526, the following:

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

SEC. 116. ENFORCEMENT.

    (a) Enforcement.--Subchapter II of chapter 5 of title 11, United 
States Code, as amended by sections 114 and 115, is amended by adding 
at the end the following:
``Sec. 528. Debt relief counselling agency enforcement
    ``(a) Assisted Person Waivers Invalid.--Any waiver by any assisted 
person of any protection or right provided by or under section 526 of 
this title shall be void and may not be enforced by any Federal or 
State court or any other person.
    ``(b) Noncompliance.--
            ``(1) Any contract between a debt relief counselling agency 
        and an assisted person for bankruptcy assistance which does not 
        comply with the requirements of section 526 of this title shall 
        be treated as void and may not be enforced by any Federal or 
        State court or by any other person.
            ``(2) Any debt relief counselling agency which has been 
        found, after notice and hearing, to have
                    ``(A) failed to comply with any provision of this 
                section or of section 526 with respect to a bankruptcy 
                case or related proceeding of an assisted person, or
                    ``(B) provided bankruptcy assistance to an assisted 
                person in a case or related proceeding which is 
                dismissed or converted in lieu of dismissal under 
                section 707 of this title or because of a failure to 
                file bankruptcy papers, including papers specified in 
                section 521 of this title; or
                    ``(C) negligently or intentionally disregarded the 
                requirements of this title or the Federal Rules of 
                Bankruptcy Procedure applicable to such debt relief 
                counselling agency shall be liable to the assisted 
                person in the amount of any fees and charges in 
                connection with providing bankruptcy assistance to such 
                person which the debt relief counselling agency has 
                already been paid on account of that proceeding and if 
                the case has not been closed, the court may in addition 
                require the debt relief counselling agency to continue 
                to provide bankruptcy assistance services in the 
                pending case to the assisted person without further fee 
                or charge or upon such other terms as the court may 
                order.
            ``(3) In addition to such other remedies as are provided 
        under State law, whenever the chief law enforcement officer of 
        a State, or an official or agency designated by a State, has 
        reason to believe that any person has violated or is violating 
        section 526 of this title, the State--
                    ``(A) may bring an action to enjoin such violation;
                    ``(B) may bring an action on behalf of its 
                residents to recover the actual damages of assisted 
                persons arising from such violation, including any 
                liability under paragraph (2); and
                    ``(C) in the case of any successful action under 
                subparagraphs (A) or (B),
                shall be awarded the costs of the action and reasonable 
                attorney fees as determined by the court.
                    ``(D) the United States District Court for any 
                district located in the State shall have concurrent 
                jurisdiction of any action under subparagraphs (A) or 
                (B).
    ``(c) Relation to State Law.--This section and sections 526 and 527 
shall not annul, alter, affect or exempt any person subject to those 
sections from complying with any law of any State except to the extent 
that such law is inconsistent with those sections, and then only to the 
extent of the inconsistency.''.
    (b) Conforming Amendment.--The table of section for chapter 5 of 
title 11, United States Code, as amended by sections 114 and 115, is 
amended by inserting after the item relating to section 527, the 
following:

``528. Debt relief counselling agency enforcement.''.

          Subtitle C--Adequate Protections for Secured Lenders

SEC. 121. 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 1-
        year period 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 filed not 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 such 
                        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 such 1-year 
                        period, after the debtor failed to file or 
                        amend the petition or other documents as 
                        required by this title or the court without 
                        substantial excuse (but mere inadvertence or 
                        negligence shall not be substantial excuse 
                        unless the dismissal was caused by the 
                        negligence of the debtor's attorney), failed to 
                        provide 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) 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 order in addition 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. 122. DEFINITIONS OF HOUSEHOLD GOODS AND ANTIQUES.

    Section 101 of title 11, United States Code, is amended by 
inserting after paragraph (27) the following:
            ``(27A) `household goods' has the meaning given such term 
        in the Trade Regulation Rule on Credit Practices promulgated by 
        the Federal Trade Commission (16 C.F.R.444.1(i)), as in effect 
        on the effective date of this paragraph;''.

SEC. 123. 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 30 days after the first meeting of 
        creditors under section 341(a)--
                    ``(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 30-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. 124. 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(a)(2) of this 
title--
            ``(1) to file timely any statement of intention required 
        under section 521(a)(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 paragraph (2) by striking ``consumer'';
                    (B) in paragraph (2)(B)--
                            (i) by striking ``forty-five days after the 
                        filing of a notice of intent under this 
                        section'' and inserting ``30 days after the 
                        first meeting of creditors under section 
                        341(a)''; and
                            (ii) by striking ``forty-five-day'' the 
                        second place it appears and inserting ``30-
                        day'';
                    (C) in paragraph (2)(C) by inserting ``except as 
                provided in section 362(h)'' before the semicolon; and
                    (D) by adding at the end the following:
    ``(g) If the debtor fails timely to take the action specified in 
subsection (a)(6) of this section, or in paragraphs (1) and (2) of 
section 362(h) of this title, with respect to property which a lessor 
or bailor owns and has leased, rented, or bailed to the debtor or as to 
which a creditor holds a security interest not otherwise voidable under 
section 522(f), 544, 545, 547, 548, 549, or 553, nothing in this title 
shall prevent or limit the operation of a provision in the underlying 
lease or agreement which has the effect of placing the debtor in 
default under such lease or agreement by reason of the occurrence, 
pendency, or existence of a proceeding under this title or the 
insolvency of the debtor. Nothing in this subsection shall be deemed to 
justify limiting such a provision in any other circumstance.''.

SEC. 125. 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 the 
                earlier of payment of the underlying debt determined 
                under nonbankruptcy law or discharge under section 
                1328, and that if the chapter 13 proceeding is 
                dismissed or converted without completion of the plan, 
                such lien shall also be retained by such holder to the 
                extent recognized by applicable nonbankruptcy law; 
                and''.

SEC. 126. 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) 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. 127. 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 
        nonbankruptcy law has been paid in full as of the date of 
        conversion, notwithstanding any valuation or determination of 
        the amount of an allowed secured claim made for the purposes of 
        the chapter 13 proceeding. Unless a prebankruptcy default has 
        been fully cured pursuant to the plan at the time of 
        conversion, in any proceeding under this title or otherwise, 
        the default shall have the effect given under applicable 
        nonbankruptcy law.''.

SEC. 128. 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 that is filed 
        by or against the debtor in the 2-year period beginning on the 
        date the petition is filed in 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).''.

SEC. 129. 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 the price a retail 
merchant would charge for property of that kind considering the age and 
condition of the property at the time value is determined.''.

SEC. 130. 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.'';
            (2) in section 362(b)--
                    (A) in paragraph (17) by striking ``or'' at the end 
                thereof;
                    (B) in paragraph (18) by striking the period at the 
                end; and
                    (C) 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).''; and
            (3) by amending section 1322(b)(2) to read as follows:
            ``(2) modify the rights of holders of secured claims, other 
        than a claim secured primarily 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;''.

         Subtitle D--Adequate Protections for Unsecured Lenders

SEC. 141. 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. 142. 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. 143. FRAUDULENT DEBTS ARE NONDISCHARGEABLE IN CHAPTER 13 CASES.

    Section 1328(a)(2) of title 11, United States Code, is amended--
    (1) by inserting ``(2), (4),'' after ``paragraph''; and
    (2) by inserting ``(6),'' after ``(5),''.

SEC. 144. APPLYING THE CODEBTOR 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. 145. CREDIT EXTENSIONS WITHOUT A REASONABLE EXPECTATION OF 
              REPAYMENT MADE NONDISCHARGEABLE.

    Section 523(a)(2) of title 11, United States Code, is amended--
            (1) in subparagraph (A) by striking ``or actual fraud,'' 
        and inserting ``actual fraud, or use of a credit card or other 
        device to access a credit line without a reasonable expectation 
        or ability to repay,'', and
            (2) in subparagraph (B)(iv) by striking ``with intent to 
        deceive'' and inserting ``without taking reasonable steps to 
        ensure the accuracy of the statement''.

              Subtitle E--Adequate Protections for Lessors

SEC. 161. 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. 162. 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. 163. ADEQUATE PROTECTION FOR LESSORS.

    Section 362(b)(10) of title 11, United States Code, is amended by 
striking ``nonresidential''.

  Subtitle F--Bankruptcy Relief Less Frequently Available for Repeat 
                                 Filers

SEC. 171. 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.''.

                         Subtitle G--Exemptions

SEC. 181. EXEMPTIONS.

    Section 522(b)(2)(A) of title 11, United States Code, is amended--
            (1) by striking ``180'' and inserting ``365''; and
            (2) by striking ``180-day'' and inserting ``365-day''.

                TITLE II--BUSINESS BANKRUPTCY PROVISIONS

                     Subtitle A--General Provisions

SEC. 201. LIMITATION RELATING TO THE USE OF FEE EXAMINERS.

    Section 330 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) The court may not appoint any person to examine any request 
for compensation or reimbursement payable under this section.''.

SEC. 202. SHARING OF COMPENSATION.

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

SEC. 203. CHAPTER 12 MADE PERMANENT LAW.

    Section 302(f) of the Bankruptcy Judges, United States Trustees, 
and Family Farmer Bankruptcy Act of 1986 (11 U.S.C. 1201 note) is 
repealed.

SEC. 204. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

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

SEC. 205. CREDITORS' AND EQUITY SECURITY HOLDERS' COMMITTEES.

    Section 1102(b) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(3) The court on its own motion or on request of a party in 
interest, and after notice and a hearing, may order a change in 
membership of a committee appointed under subsection (a) if necessary 
to ensure adequate representation of creditors or of equity security 
holders. On the request of a party in interest and after notice and a 
hearing, the court may order a change in the membership of a committee 
appointed under subsection (a) if necessary to ensure adequate 
representation of creditors or of equity security holders.''.

SEC. 206. POSTPETITION DISCLOSURE AND SOLICITATION.

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

SEC. 207. PREFERENCES.

    Section 547(c) of title 11, United States Code, is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) to the extent that such transfer was in payment of a 
        debt incurred by the debtor in the ordinary course of business 
        or financial affairs of the debtor and the transferee, and such 
        transfer was--
                    ``(A) made in the ordinary course of business or 
                financial affairs of the debtor and the transferee; or
                    ``(B) made according to ordinary business terms;'';
            (2) in paragraph (7) by striking ``or'' at the end;
            (3) in paragraph (8) by striking the period at the end and 
        inserting ``; or''; and
            (4) by adding at the end the following:
            ``(9) if, in a case filed by a debtor whose debts are not 
        primarily consumer debts, the aggregate value of all property 
        that constitutes or is affected by such transfer is less than 
        $5000.''.

SEC. 208. VENUE OF CERTAIN PROCEEDINGS.

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

SEC. 209. SETTING A DATE CERTAIN FOR TRUSTEES TO ACCEPT OR REJECT 
              UNEXPIRED LEASES ON NONRESIDENTIAL REAL PROPERTY.

    Section 365(d)(4) of title 11, United States Code, is amended--
            (1) by striking ``Notwithstanding'' and inserting ``(A) 
        Subject to subparagraph (B) and notwithstanding'';
            (2) by striking ``60'' each place it appears and inserting 
        ``120''; and
            (3) by adding at the end the following:
    ``(B) The court may not extend the period to assume or reject a 
lease of nonresidential property beyond the date the plan is 
confirmed.''.

                    Subtitle B--Specific Provisions

                  CHAPTER 1--SMALL BUSINESS BANKRUPTCY

SEC. 231. DEFINITIONS.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended by striking paragraph (51C) and inserting the following:
            ``(51C) `small business case' means a case filed under 
        chapter 11 of this title in which the debtor is a small 
        business debtor;''.
            ``(51D) `small business debtor' means--
                    ``(A) a person (including affiliates of such 
                person) that has aggregate noncontingent, liquidated 
                secured and unsecured debts as of the date of the 
                petition or the order for relief of $5,000,000 or less 
                (excluding debts owed to 1 or more affiliates or 
                insiders); or
                    ``(B) a debtor of the kind described in paragraph 
                (51B) but without regard to the amount of such debtor's 
                debts, except that if a group of affiliated debtors has 
                aggregate noncontingent liquidated secured and 
                unsecured debts greater than $5,000,000 (excluding debt 
                owed to 1 or more affiliates or insiders), then no 
                member of such group is a small business debtor;
    (b) Conforming Amendment.--Section 1102(a)(3) is amended by 
inserting ``debtor'' after ``small business''.

SEC. 232. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

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

SEC. 233. STANDARD FORM DISCLOSURE STATEMENTS AND PLANS.

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

SEC. 234. UNIFORM NATIONAL REPORTING REQUIREMENTS.

    (a) Reporting Required.--(1) Title 11 of the United States Code is 
amended by inserting after section 307 the following:
``Sec. 308. Debtor reporting requirements
    ``A small business debtor shall file periodic financial and other 
reports containing information including--
            ``(1) the debtor's profitability, that is, approximately 
        how much money the debtor has been earning or losing during 
        current and recent fiscal periods;
            ``(2) reasonable approximations of the debtor's projected 
        cash receipts and cash disbursements over a reasonable period;
            ``(3) comparisons of actual cash receipts and disbursements 
        with projections in prior reports;
            ``(4) whether the debtor is--
                    ``(A) in compliance in all material respects with 
                postpetition requirements imposed by this title and the 
                Federal Rules of Bankruptcy Procedure; and
                    ``(B) timely filing tax returns and paying taxes 
                and other administrative claims when due, and, if not, 
                what the failures are and how, at what cost, and when 
                the debtor intends to remedy such failures; and
            ``(5) such other matters as are in the best interests of 
        the debtor and creditors, and in the public interest in fair 
        and efficient procedures under chapter 11 of this title.''.
    (2) The table of sections of chapter 3 of title 11, United States 
Code, is amended by inserting after the item relating to section 307 
the following:

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

SEC. 235. UNIFORM REPORTING RULES AND FORMS.

    The Advisory Committee on Bankruptcy Rules of the Judicial 
Conference of the United States shall propose for adoption amended 
Federal Rules of Bankruptcy Procedure and Official Bankruptcy Forms to 
be used by small business debtors to comply with section 308 of title 
11, United States Code, as added by section 234 of this Act to achieve 
a practical balance between--
            (1) the reasonable needs of the courts, the United States 
        trustee or bankruptcy administrator, creditors, and other 
        parties in interest for reasonably complete information; and
            (2) economy and simplicity for debtors in cases under such 
        title.

SEC. 236. DUTIES IN SMALL BUSINESS CASES.

    (a) Duties in Chapter 11 Cases.--Title 11 of the United States Code 
is amended by inserting after section 1114 the following:
``Sec. 1115. Duties of trustee or debtor in possession in small 
              business cases
    ``In a small business case, a trustee or the debtor in possession, 
in addition to the duties provided in this title and as otherwise 
required by law, shall--
            ``(1) append to the voluntary petition or, in an 
        involuntary case, file within 3 days after the date of the 
        order for relief--
                    ``(A) its most recent balance sheet, statement of 
                operations, cash-flow statement, Federal income tax 
                return; or
                    ``(B) a statement made under penalty of perjury 
                that no balance sheet, statement of operations, or 
                cash-flow statement has been prepared and no Federal 
                tax return has been filed;
            ``(2) attend, through its senior management personnel and 
        counsel, meetings scheduled by the court or the United States 
        trustee, including initial debtor interviews, scheduling 
        conferences, and meetings of creditors convened under section 
        341 of this title;
            ``(3) timely file all schedules and statements of financial 
        affairs, unless the court, after notice and a hearing, grants 
        an extension, which shall not extend such time period to a date 
        later than 30 days after the date of the order for relief, 
        absent extraordinary and compelling circumstances;
            ``(4) file all postpetition financial and other reports 
        required by the Federal Rules of Bankruptcy Procedure or by 
        local rule of the district court;
            ``(5) maintain insurance customary and appropriate to the 
        industry;
            ``(6)(A) timely file tax returns;
            ``(B) timely pay all administrative expense tax claims, 
        except those being contested by appropriate proceedings being 
        diligently prosecuted; and
            ``(C) establish 1 or more separate deposit accounts not 
        later than 10 business days after the date of order for relief 
        (or as soon thereafter as possible if all banks contacted 
        decline the business) and deposit therein, not later than 1 
        business day after receipt thereof, all taxes collected or 
        withheld by it for governmental units; and
            ``(7) allow the United States trustee or bankruptcy 
        administrator, or its designated representative, to inspect the 
        debtor's business premises, books, and records at reasonable 
        times, after reasonable prior written notice, unless notice is 
        waived by the debtor.''.
    (b) Technical Amendment.--The table of sections of chapter 11, 
United States Code, is amended by inserting after the item relating to 
section 1114 the following:

``1115. Duties of trustee or debtor in possession in small business 
                            cases.''.

SEC. 237. PLAN FILING AND CONFIRMATION DEADLINES.

    Section 1121(e) of title 11, United States Code, is amended to read 
as follows:
    ``(e) In a small business case--
            ``(1) only the debtor may file a plan until after 90 days 
        after the date of the order for relief, unless on request of a 
        party in interest made during the 90-day period, or unless 
        extended as provided by this subsection, after notice and 
        hearing the court, for cause, orders otherwise;
            ``(2) the plan, and any necessary disclosure statement, 
        shall be filed not later than 90 days after the date of the 
        order for relief; and
            ``(3) the time periods specified in paragraphs (1) and (2), 
        and the time fixed in section 1129(e) of this title, within 
        which the plan shall be confirmed may be extended only if--
                    ``(A) the debtor, after providing notice to parties 
                in interest (including the United States trustee), 
                demonstrates by a preponderance of the evidence that it 
                is more likely than not that the court will confirm a 
                plan within a reasonable time;
                    ``(B) a new deadline is imposed at the time the 
                extension is granted; and
                    ``(C) the order extending time is signed before the 
                existing deadline has expired.''.

SEC. 238. PLAN CONFIRMATION DEADLINE.

    Section 1129 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) In a small business case, the plan shall be confirmed not 
later than 150 days after the date of the order for relief unless such 
150-day period is extended as provided in section 1121(e)(3) of this 
title.''.

SEC. 239. PROHIBITION AGAINST EXTENSION OF TIME.

    Section 105(d) of title 11, United States Code, is amended--
            (1) in subparagraph (B) by striking the period at the end 
        and inserting ``; and''; and
            (2) by adding at the end the following:
            ``(3) in a small business case, not extend the time periods 
        specified in sections 1121(e) and 1129(e) of this title except 
        as provided in section 1121(e)(3) of this title.''.

SEC. 240. DUTIES OF THE UNITED STATES TRUSTEE AND BANKRUPTCY 
              ADMINISTRATOR.

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

SEC. 241. SCHEDULING CONFERENCES.

    Section 105(d) of title 11, United States Code, is amended--
            (1) in the matter preceding paragraph (1) by striking ``, 
        may'';
            (2) by amending paragraph (1) to read as follows:
            ``(1) shall hold such status conferences as are necessary 
        to further the expeditious and economical resolution of the 
        case; and''; and
            (3) in paragraph (2) by striking ``unless inconsistent with 
        another provision of this title or with applicable Federal 
        Rules of Bankruptcy Procedure,'' and inserting ``may''.

SEC. 242. SERIAL FILER PROVISIONS.

    Section 362 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(i) The filing of a petition under chapter 11 of this title does 
not operate as a stay of the acts described in subsection (a) in a 
voluntary or collusive involuntary case in which the debtor--
            ``(1) is a debtor in a small business case pending at the 
        time the petition is filed;
            ``(2) was a debtor in a small business case which was 
        dismissed for any reason by an order that became final in the 
        2-year period ending on the date of the order for relief 
        entered with respect to the petition;
            ``(3) was a debtor in a small business case in which a plan 
        was confirmed in the 2-year period ending on the date of the 
        order for relief entered with respect to the petition; or
            ``(4) is an entity that has succeeded to substantially all 
        of the assets or business of a small business debtor described 
        in subparagraph (A), (B), or (C) unless the debtor proves, by a 
        preponderance of the evidence, that the filing of such petition 
        resulted from circumstances beyond the control of the debtor 
        not foreseeable at the time the case then pending was filed; 
        and that it is more likely than not that the court will confirm 
        a feasible plan, but not a liquidating plan, within a 
        reasonable time.''.

SEC. 243. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND APPOINTMENT 
              OF TRUSTEE.

    (a) Expanded Grounds for Dismissal or Conversion.--Section 1112(b) 
of title 11, United States Code, is amended to read as follows:
    ``(b)(1) Except as provided in paragraph (2), in subsection (c), 
and in section 1104(a)(3) of this title, on request of a party in 
interest, and after notice and a hearing, the court shall convert a 
case under this chapter to a case under chapter 7 of this title or 
dismiss a case under this chapter, whichever is in the best interest of 
creditors and the estate, if the movant establishes cause.
    ``(2) The relief provided in paragraph (1) shall not be granted if 
the debtor or another party in interest objects and establishes, by a 
preponderance of the evidence that--
            ``(A) it is more likely than not that a plan will be 
        confirmed within a time as fixed by this title or by order of 
        the court entered pursuant to section 1121(e)(3), or within a 
        reasonable time if no time has been fixed; and
            ``(B) if the reason is an act or omission of the debtor 
        that--
                    ``(i) there exists a reasonable justification for 
                the act or omission; and
                    ``(ii) the act or omission will be cured within a 
                reasonable time fixed by the court not to exceed 30 
                days after the court decides the motion, unless the 
                movant expressly consents to a continuance for a 
                specific period of time, or compelling circumstances 
                beyond the control of the debtor justify an extension.
    ``(3) For purposes of this subsection, cause includes--
            ``(A) substantial or continuing loss to or diminution of 
        the estate;
            ``(B) gross mismanagement of the estate;
            ``(C) failure to maintain appropriate insurance;
            ``(D) unauthorized use of cash collateral harmful to one or 
        more creditors;
            ``(E) failure to comply with an order of the court;
            ``(F) failure timely to satisfy any filing or reporting 
        requirement established by this title or by any rule applicable 
        to a case under this chapter;
            ``(G) failure to attend the meeting of creditors convened 
        under section 341(a) of this title or an examination ordered 
        under Federal Rules of Bankruptcy Procedure 2004;
            ``(H) failure timely to provide information or attend 
        meetings reasonably requested by the United States trustee;
            ``(I) failure timely to pay taxes due after the date of the 
        order for relief or to file tax returns due after the order for 
        relief;
            ``(J) failure to file a disclosure statement, or to file or 
        confirm a plan, within the time fixed by this title or by order 
        of the court; and
            ``(K) failure to pay any fees or charges required under 
        chapter 123 of title 28.
    ``(4) The court shall commence the hearing on any motion under this 
subsection not later than 30 days after filing of the motion, and shall 
decide the motion within 15 days after commencement of the hearing, 
unless the movant expressly consents to a continuance for a specific 
period of time or compelling circumstances prevent the court from 
meeting the time limits established by this paragraph.''.
    (b) Additional Grounds for Appointment of Trustee.--Section 1104(a) 
of title 11, United States Code, is amended--
            (1) in paragraph (1) by striking ``or'' at the end;
            (2) in paragraph (2) by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(3) if grounds exist to convert or dismiss the case under 
        section 1112 of this title, but the court determines that the 
        appointment of a trustee is in the best interests of creditors 
        and the estate.''.

                  CHAPTER 2--SINGLE ASSET REAL ESTATE

SEC. 251. SINGLE ASSET REAL ESTATE DEFINED.

    Section 101(51B) of title 11, United States Code is amended to read 
as follows:
            ``(51B) `single asset real estate' means undeveloped real 
        property or other real property constituting a single property 
        or project, other than residential real property with fewer 
        than 4 residential units, on which is located a single 
        development or project which property or project generates 
        substantially all of the gross income of a debtor and on which 
        no substantial business is being conducted by a debtor, or by a 
        commonly controlled group of entities all of which are 
        concurrently debtors in a case under chapter 11 of this title, 
        other than the business of operating the real property and 
        activities incidental thereto;''.

SEC. 252. PLAN CONFIRMATION.

    Section 1129(b)(2)(A) of title 11, United States Code, is amended--
            (1) in clause (ii) by striking ``or'' at the end;
            (2) in clause (iii) by striking the period at the end; and
            (3) by adding at the end the following:
                    ``(iv) in any case where--
                            ``(I) the provisions of this subparagraph 
                        are being invoked by a class of secured claims;
                            ``(II) such class of secured claims has not 
                        made the election provided for under section 
                        1111(b)(1)(a)(i) of this title;
                            ``(III) the plan proponent seeks to confirm 
                        a plan over the rejection by the class of 
                        unsecured claims that includes the deficiency 
                        claim held by the class of secured claims, and 
                        which deficiency claim would not be paid in 
                        full under the plan; and
                            ``(IV) the plan is for a debtor which owns, 
                        leases, or otherwise holds single asset real 
                        estate;
                the court may find the plan to be fair and equitable 
                only if, in addition to the fulfillment of all other 
                requirements of this subparagraph, any new value that 
                is contributed by or on behalf of the plan proponent is 
                contributed in cash on or before the effective date of 
                the plan and in a manner where the only permissible 
                accounting treatment is for the new value to be 
                accounted for as equity capital that is not convertible 
                for or exchangeable into any other form of capital 
                including debt capital, and is required by the plan to 
                be applied on the effective date of the plan to pay 
                down in cash the allowed secured claims of such class 
                of secured claims in an amount such that, after such 
                payment, the principal amount of debt secured by the 
                single asset real estate is no greater than 75% of the 
                value of the single asset real estate, and the payment 
                and other terms for the debt remaining after the 
                mandatory application of new value as provided in this 
                subparagraph satisfy in all material particulars all 
                relevant, then-prevailing market terms in the locality 
                for new loans secured by liens on comparable real 
                estate regarding maturity date, amortization, interest 
                rate, fixed-charge coverage and loan documentation.''.

SEC. 253. PAYMENT OF INTEREST.

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

               TITLE III--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 301. PETITION AND PROCEEDINGS RELATED TO PETITION.

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

                  TITLE IV--BANKRUPTCY ADMINISTRATION

                     Subtitle A--General Provisions

SEC. 401. 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. 402. 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. 403. 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(a)(1) of this title, 
except a claim or interest that is scheduled as disputed, contingent, 
or unliquidated.''.

SEC. 404. AUDIT PROCEDURES.

    (a) Amendment.--Section 586 of title 28, United States Code, as 
amended by section 111, is amended--
            (1) by amending subsection (a)(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.
    ``(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 an 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. 405. 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(a)(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 debtor 
under chapter 7 or 13 may file with the court and serve on the debtor a 
notice of the address to be used to notify the creditor in that case. 
Five days after receipt of such notice, if the court or the debtor is 
required to give the creditor notice, such notice shall be given at 
that address.
    ``(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 
chapter 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. 406. 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 30 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 45 days of the filing of the plan, 
unless the court, after notice and hearing, orders otherwise.''.

SEC. 407. 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 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;
                            ``(v) a statement of the amount of 
                        projected monthly net income, itemized to show 
                        how calculated;
                            ``(vi) if applicable, any statement under 
                        paragraphs (3) and (4) of section 109(h);
                            ``(vii) a statement disclosing any 
                        reasonably anticipated increase in income or 
                        expenditures over the next 12 months; and
                            ``(viii) a certificate, if applicable--
                                    ``(I) of an attorney whose name is 
                                on the petition as the attorney for the 
                                debtor, or of any bankruptcy petition 
                                preparer who signed 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)(1) of this title; or
                                    ``(II) if no attorney for the 
                                debtor is indicated and no bankruptcy 
                                petition preparer signed the petition 
                                of the debtor, that such notice was 
                                obtained and read by the debtor.''; and
            (3) by adding at the end the following:
    ``(b) At any time, a creditor in a case of an individual debtor 
under chapter 7 or 13 may file with the court and serve on the debtor 
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)(1) An individual debtor in a case under chapter 7 or 13 shall 
provide to the United States trustee--
            ``(A) copies of all Federal tax returns (including any 
        schedules and attachments) filed by the debtor for the 3 most 
        recent tax years preceding the order for relief;
            ``(B) at the time the debtor files them with the 
        Commissioner of Internal Revenue, all Federal tax returns 
        (including any schedules and attachments) for the debtor's tax 
        years ending while such case is pending; and
            ``(C) at the time the debtor files them with the 
        Commissioner of Internal Revenue, all amendments to the tax 
        returns (including schedules and attachments) described in 
        subparagraphs (A) and (B).
    ``(2)(A) The United States trustee shall make such Federal tax 
returns (including schedules, attachments, and amendments) available to 
any party in interest for inspection and copying not later than 10 days 
after receiving a request by such party.
    ``(B) If the United States trustee does not comply with 
subparagraph (A), on the motion of such party, the court shall issue an 
order compelling the United States trustee to comply with subparagraph 
(A).
    ``(d) A debtor in a case under chapter 13 shall file, from a time 
which is the later of 90 days after the close of the debtor's tax year 
or 1 year after the order for relief unless a plan has 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. 408. DISMISSAL FOR FAILURE TO FILE SCHEDULES TIMELY OR PROVIDE 
              REQUIRED INFORMATION.

    Section 521 of title 11, United States Code, as amended by section 
407, is amended by adding at the end the following:
    ``(e) Notwithstanding section 707(a) of this title, if an 
individual debtor in a voluntary case under chapter 7 or 13 fails to 
provide all of the information required under subsections (a)(1) and 
(c)(1)(A) within 45 days after the filing of the petition, the case 
shall be automatically dismissed effective on the 46th 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 provide the information 
required under subsections (a)(1) and (c)(1)(A) if the court finds 
compelling justification for doing so.
    ``(f) If an individual debtor in a case under chapter 7 or 13 fails 
to perform any of the duties imposed by subsections (b), (c)(1)(B), 
(c)(1)(C), and (d), 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. 409. ADEQUATE TIME TO PREPARE FOR HEARING ON CONFIRMATION OF THE 
              PLAN.

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

SEC. 410. 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 exceeds 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 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 3 years, unless the court, for cause, approves a longer 
period, but the court may not approve a period that is longer than 5 
years.'';
            (2) in section 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 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 1 
person, 75 percent of the national median household income for 1 
earner, or more as of the date of the modification and shall be 3 years 
if the 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 1 person, less than 75 percent of the national 
median household income for 1 earner as of the date of the 
modification.''.

SEC. 411. SENSE OF THE CONGRESS REGARDING EXPANSION OF RULE 9011 OF THE 
              FEDERAL RULES OF BANKRUPTCY PROCEDURE.

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

SEC. 412. JURISDICTION OF COURTS OF APPEALS.

    (a) Jurisdiction.--Title 28 of the United States Code is amended--
            (1) by striking section 158;
            (2) by inserting after section 1292 the following:
``Sec. 1293. Bankruptcy appeals
    ``The courts of appeals (other the United States Court of Appeals 
for the Federal Circuit) shall have jurisdiction of appeals from the 
following:
            ``(1) Final orders and judgments of bankruptcy courts 
        entered under--
                    ``(A) section 157(b) of this title in core 
                proceedings arising under title 11, or arising in or 
                related to a case under title 11; or
                    ``(B) section 157(c)(2) of this title in 
                proceedings referred to such courts.
            ``(2) Final orders and judgments of district courts entered 
        under section 157 of this title in--
                    ``(A) core proceedings arising under title 11, or 
                arising in or related to a case under title 11; or
                    ``(B) proceedings that are not core proceedings, 
                but that are otherwise related to a case under title 
                11.
            ``(3) Orders, process, and judgments of bankruptcy courts 
        or district courts entered under section 105 of title 11, or 
        the refusal to enter an order, process, or judgment under such 
        section.
            ``(4) Orders of bankruptcy courts or district courts 
        entered under section 1104(a) or 1121(d) of title 11, or the 
        refusal to enter an order under such section.
            ``(5) An interlocutory order of a bankruptcy court or 
        district court entered in a case under title 11, in a 
        proceeding arising under title 11, or in a proceeding arising 
        in or related to a case under title 11, if--
                    ``(A) such court is of the opinion that--
                            ``(i) such order involves a controlling 
                        question of law as to which there is 
                        substantial ground for difference of opinion; 
                        and
                            ``(ii) an immediate appeal from such order 
                        may materially advance the ultimate termination 
                        of such case or such proceeding; or
                    ``(B) the court of appeals that would have 
                jurisdiction of an appeal of a final order entered in 
                such case or such proceeding permits, in its 
                discretion, appeal to be taken from such interlocutory 
                order.''; and
            (3) in--
                    (A) the table of sections for chapter 6 by striking 
                the item relating to section 158; and
                    (B) the table of sections for chapter 83 by 
                inserting after the item relating to section 1292 the 
                following:

``1293. Bankruptcy appeals.''.

    (b) Conforming Amendments.--Section 305(c) of title 11, the United 
States Code, is amended by striking ``158(d), 1291, or 1292'' and 
inserting ``1291, 1292, or 1293''; and
    (2) Title 28 of the United States Code is amended--
            (A) in subsections (b)(1) and (c)(2) of section 157 by 
        striking ``section 158'' and inserting ``section 1293'';
            (B) in section 1334(d) by striking ``158(d), 1291, or 
        1292'' and inserting ``1291, 1292, or 1293''; and
            (C) in section 1452(b) by striking ``158(d), 1291, or 
        1292'' and inserting ``1291, 1292, or 1293''.

                      Subtitle B--Data Provisions

SEC. 441. 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 Director of the Executive Office for United States Trustees 
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 section 2075 of this title 
        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 title 11.
            ``(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 nondischargeable.
            ``(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. 442. BANKRUPTCY DATA.

    (a) Amendment.--Title 28 of the United States Code is amended by 
inserting after section 589a the following:
``Sec. 589b. Bankruptcy data
    ``(a) Rules.--The Attorney General shall, within a reasonable time 
after the effective date of this section, issue rules requiring uniform 
forms for (and from time to time thereafter to appropriately modify and 
approve)--
            ``(1) final reports by trustees in cases under chapters 7, 
        12, and 13 of title 11; and
            ``(2) periodic reports by debtors in possession or 
        trustees, as the case may be, in cases under chapter 11 of 
        title 11.
    ``(b) Reports.--All reports 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 1 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 judge 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; 
        and
            ``(2) economy, simplicity, and lack of undue burden on 
        persons with a duty to file reports.
    ``(d) Final Reports.--Final reports proposed for adoption by 
trustees under chapters 7, 12, and 13 of title 11 shall, in addition to 
such other matters as are required by law or as the Attorney General in 
the discretion of the Attorney General, shall propose, include with 
respect to a case under such title--
            ``(1) information about the length of time the case was 
        pending;
            ``(2) assets abandoned;
            ``(3) assets exempted;
            ``(4) receipts and disbursements of the estate;
            ``(5) expenses of administration;
            ``(6) claims asserted;
            ``(7) claims allowed;
            ``(8) distributions to claimants and claims discharged 
        without payment;
in each case by appropriate category and, in cases under chapters 12 
and 13 of title 11, date of confirmation of the plan, each modification 
thereto, and defaults by the debtor in performance under the plan.
    ``(e) Periodic Reports.--Periodic reports proposed for adoption by 
trustees or debtors in possession under chapter 11 of title 11 shall, 
in addition to such other matters as are required by law or as the 
Attorney General, in the discretion of the Attorney General, shall 
propose, include--
            ``(1) information about the standard industry 
        classification, published by the Department of Commerce, for 
        the businesses conducted by the debtor;
            ``(2) length of time the case has been pending;
            ``(3) number of full-time employees as at the date of the 
        order for relief and at 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, in the case of 
        the professional fees incurred by or on behalf of the debtor, 
        between those that would have been incurred absent a bankruptcy 
        proceeding and those not); and
            ``(7) plans of reorganization filed and confirmed and, with 
        respect thereto, by class, the recoveries of the holders, 
        expressed in aggregate dollar values and, in the case of 
        claims, as a percentage of total claims of the class 
        allowed.''.
    (b) Technical Amendment.--The table of sections of chapter 39 of 
title 28, United States Code, is amended by adding at the end the 
following:

``589b. Bankruptcy data.''.

SEC. 443. SENSE OF THE CONGRESS REGARDING AVAILABILITY OF BANKRUPTCY 
              DATA.

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

                        TITLE V--TAX PROVISIONS

SEC. 501. TREATMENT OF CERTAIN LIENS.

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

SEC. 502. ENFORCEMENT OF CHILD AND SPOUSAL SUPPORT.

    Section 522(c)(1) of title 11, United States Code, is amended by 
inserting ``, except that, notwithstanding any other Federal law or 
State law relating to exempted property, exempt property shall be 
liable for debts of a kind specified in section 523(a) (1) or (5) of 
this title'' before the semicolon at the end of the paragraph.

SEC. 503. EFFECTIVE NOTICE TO GOVERNMENT.

    (a) Effective Notice to Governmental Units.--Section 342 of title 
11, United States Code, as amended by section 405, is amended by adding 
at the end the following:
    ``(g) If a debtor lists a governmental unit as a creditor in a list 
or schedule, any notice required to be given by the debtor under this 
title, any rule, any applicable law, or any order of the court, shall 
identify the department, agency, or instrumentality through which the 
debtor is indebted. The debtor shall also identify (with information 
such as a taxpayer identification number, loan, account or contract 
number, or real estate parcel number, where applicable) and describe 
the underlying basis for the governmental unit s claim. If the debtor s 
liability to a governmental unit arises from a debt or obligation owed 
or incurred by another individual, entity, or organization, or under a 
different name, the debtor shall identify such individual, entity, 
organization or name.
    ``(h) The clerk shall keep and update quarterly, in the form and 
manner as the Director of the Administrative Office for the United 
States Courts prescribes, and make available to debtors, a register in 
which a governmental unit may designate a safe harbor mailing address 
for service of notice in cases pending in the district. A governmental 
unit may file a statement with the clerk designating a safe harbor 
address to which notices are to be sent, unless such governmental unit 
files a notice of change of address.''.
    (b) Adoption of Rules Providing Notice.--The Advisory Committee on 
Bankruptcy Rules of the Judicial Conference shall, within a reasonable 
period of time after the date of the enactment of this Act, propose for 
adoption enhanced rules for providing notice to State, Federal, and 
local government units that have regulatory authority over the debtor 
or which may be creditors in the debtor's case. Such rules shall be 
reasonably calculated to ensure that notice will reach the 
representatives of the governmental unit, or subdivision thereof, who 
will be the proper persons authorized to act upon the notice. At a 
minimum, the rules should require that the debtor--
            ``(1) identify in the schedules and the notice, the 
        subdivision, agency, or entity in respect of which such notice 
        should be received;
            ``(2) provide sufficient information (such as case 
        captions, permit numbers, taxpayer identification numbers, or 
        similar identifying information) to permit the governmental 
        unit or subdivision thereof, entitled to receive such notice, 
        to identify the debtor or the person or entity on behalf of 
        which the debtor is providing notice where the debtor may be a 
        successor in interest or may not be the same as the person or 
        entity which incurred the debt or obligation; and
            ``(3) identify, in appropriate schedules, served together 
        with the notice, the property in respect of which the claim or 
        regulatory obligation may have arisen, if any, the nature of 
        such claim or regulatory obligation and the purpose for which 
        notice is being given.''.
    (c) Effect of Failure of Notice.--Section 342 of title 11, United 
States Code, as amended by subsection (a) and section 405, is amended 
by adding at the end the following:
    ``(i)(1) A notice that does not comply with subsections (d) and (e) 
shall have no effect unless the debtor demonstrates, by clear and 
convincing evidence, that timely notice was given in a manner 
reasonably calculated to satisfy the requirements of this section was 
given, and that--
            ``(A) either the notice was timely sent to the safe harbor 
        address provided in the register maintained by the clerk of the 
        district in which the case was pending for such purposes; or
            ``(B) no safe harbor address was provided in such list for 
        the governmental unit and that an officer of the governmental 
        unit who is responsible for the matter or claim had actual 
        knowledge of the case in sufficient time to act.
    ``(2) 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 unless the action takes place 
after notice of the commencement of the case as required by this 
section has been received.''.

SEC. 504. NOTICE OF REQUEST FOR A DETERMINATION OF TAXES.

    Section 505(b) of title 11, United States Code, is amended by 
striking ``Unless'' at the beginning of the second sentence thereof and 
inserting ``If the request is made in the manner designated by the 
governmental unit and unless''.

SEC. 505. RATE OF INTEREST ON TAX CLAIMS.

    Chapter 5 of title 11, United States Code, is amended by adding at 
the end the following:
``Sec. 511. Rate of interest on tax claims
    ``If the holder of a claim for taxes arising before the date of the 
order for relief is entitled to receive interest on such claim, the 
rate of interest to be applied shall be the rate provided in section 
6621(a)(2) of the Internal Revenue Code of 1986.''.

SEC. 506. TOLLING OF PRIORITY OF TAX CLAIM TIME PERIODS.

    Section 507(a)(8)(A) of title 11, United States Code, is amended--
            (1) in clause (i) by inserting after ``petition'' and 
        before the semicolon ``, plus any time, plus 6 months, during 
        which the stay of proceedings was in effect in a prior case 
        under this title''; and
            (2) amend clause (ii) to read as follows:
                    ``(ii) assessed within 240 days before the date of 
                the filing of the petition, exclusive of--
                            ``(I) any time plus 30 days during which an 
                        offer in compromise or installment agreement 
                        with respect of such tax, was pending or in 
                        effect during such 240-day period, and
                            ``(II) any time plus 6 months during which 
                        a stay of proceedings against collections was 
                        in effect in a prior case under this title 
                        during such 240-day period.''.

SEC. 507. ASSESSMENT DEFINED.

    Section 101 of title 11, United States Code, is amended by 
inserting after paragraph (2) the following:
            ``(3) `assessment'--
                    ``(A) for purposes of State and local taxes, means 
                that action which is sufficiently final so that 
                thereafter a taxing authority may commence an action to 
                collect the tax, and
                    ``(B) for Federal tax purposes has the meaning 
                given such term in the Internal Revenue Code of 1986;
        and `assessed' and `assessable' shall be interpreted in light 
        of the definition of assessment in this paragraph;''.

SEC. 508. CHAPTER 13 DISCHARGE OF FRAUDULENT AND OTHER TAXES.

    Section 1328(a)(2) of title 11, United States Code, is amended by 
inserting ``(1),'' after ``paragraph'' and before ``(5)''.

SEC. 509. CHAPTER 11 DISCHARGE OF FRAUDULENT TAXES.

    Section 1141(d) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(4) Notwithstanding the provisions of paragraph (1), the 
confirmation of a plan does not discharge a debtor which is a 
corporation from any debt for a tax or customs duty with respect to 
which the debtor made a fraudulent return or willfully attempted in any 
manner to evade or defeat such tax.''.

SEC. 510. THE STAY OF TAX PROCEEDINGS.

    (a) The Section 362 Stay Limited to Prepetition Taxes.--Section 
362(a)(8) of title 11, United States Code, is amended by striking the 
period at the end and inserting ``, in respect of a tax liability for a 
taxable period ending before the order for relief.''.
    (b) The Appeal of Tax Court Decisions Permitted.--Section 362(b)(9) 
of title 11, United States Code, is amended--
            (1) in subparagraph (C) by striking ``or'' at the end,
            (2) in subparagraph (D) by striking the period at the end 
        and inserting ``; or'', and
            (3) by adding at the end the following:
                    ``(E) the appeal of a decision by a court or 
                administrative tribunal which determines a tax 
                liability of the debtor.''.

SEC. 511. PERIODIC PAYMENT OF TAXES IN CHAPTER 11 CASES.

    Section 1129(a)(9) of title 11, United States Code, is amended--
            (1) in subparagraph (B) by striking ``and'' at the end,
            (2) in subparagraph (C)--
                    (A) by inserting ``in at least quarterly 
                installments designed to pay at least 15 percent of the 
                claim in each of the first 5 years of the plan and no 
                more than 20 percent of the claim in the final year of 
                the plan,'' after ``payments,'' and before ``over'', 
                and
                    (B) by striking the period at the end and inserting 
                ``; and'', and
            (3) by adding at the end the following:
                    ``(D) with respect to a secured claim which would 
                be described in section 507(a)(8) of this title, but 
                for its secured status, the holder of such claim will 
                receive on account of such claim cash payments in the 
                same manner and over the same period as is required in 
                subparagraph (C) of this subsection.''.

SEC. 512. THE AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

    Section 545(2) of title 11, United States Code, is amended by 
striking the semicolon at the end and inserting ``, except where such 
purchaser is a purchaser described in section 6323 of the Internal 
Revenue Code of 1986 or similar provision of State or local law;''.

SEC. 513. COURSE OF BUSINESS PAYMENT OF TAXES.

    (a) Payment of Taxes Required.--Section 960 of title 28, United 
States Code, is amended by striking the period at the end and inserting 
after ``corporation'' the following:
``, and shall pay the same when due in the course of such business, 
unless the tax is a property tax secured by a lien against property of 
the estate which is abandoned by the trustee of a bankruptcy estate, 
pursuant to section 554 of title 11, United States Code, within a 
reasonable time after the lien attaches.''.
    (b) Payment of Ad Valorem Taxes Required.--Section 503(b)(1)(B) of 
title 11, United States Code, is amended in clause (i) by inserting 
after ``estate,'' and before ``except'' the following: ``whether 
secured or unsecured, including property taxes for which liability is 
in rem only, in personam or both,''.
    (c) Request for Payment of Administrative Expense Taxes 
Eliminated.--Section 503(b)(1) of title 11, United States Code, is 
amended by adding at the end the following:
                    ``(D) notwithstanding the requirements of 
                subsection (a) of this section, a governmental unit 
                shall not be required to file a request for the payment 
                of a claim described in subparagraph (B) or (C);''.

SEC. 514. TARDILY FILED PRIORITY TAX CLAIMS.

    Section 726(a)(1) of title 11, United States Code, is amended by 
striking ``the trustee commences distribution under this section;'' and 
inserting ``the court approves the final report and accounting of the 
trustee;''.

SEC. 515. INCOME TAX RETURNS PREPARED BY TAX AUTHORITIES.

    Section 523(a)(1)(B) of title 11, United States Code, is amended--
            (1) in clause (ii) by striking ``or'' at the end, and
            (2) by adding at the end the following:
                            ``(iii) for purposes of this subsection, a 
                        return--
                                    ``(I) must satisfy the requirements 
                                of applicable nonbankruptcy law, and 
                                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 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 
                                similar State or local law, and
                                    ``(II) must have been filed in a 
                                manner permitted by applicable 
                                nonbankruptcy law; or''.

SEC. 516. THE DISCHARGE OF THE ESTATE'S LIABILITY FOR UNPAID TAXES.

    Section 505(b) of title 11, United States Code, is amended in the 
second sentence by inserting ``the estate,'' after 
``misrepresentation,''.

SEC. 517. REQUIREMENT TO FILE TAX RETURNS TO CONFIRM CHAPTER 13 PLANS.

    (a) Filing of Prepetition Tax Returns Required for Plan 
Confirmation.--Section 1325(a) of title 11, United States Code, is 
amended--
            (1) in subparagraph (5)(C) 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) if the debtor has filed all Federal, State, and local 
        tax returns as required by section 1308 of this title.''.
    (b) Additional Time Permitted for Filing Tax Returns.--(1) Chapter 
13 of title 11, United States Code, is amended by adding at the end the 
following:
``Sec. 1308. Filing of prepetition tax returns
    ``(a) On or before the day prior to the day on which the first 
meeting of the creditors is convened under section 341(a) of this 
title, the debtor shall have filed with appropriate tax authorities all 
tax returns for all taxable periods ending in the 6-year period ending 
on the date of filing of the petition.
    ``(b) If the tax returns required by subsection (a) have not been 
filed by the date on which the first meeting of creditors is convened 
under section 341(a) of this title, the trustee may continue such 
meeting for a reasonable period of time, to allow the debtor additional 
time to file any unfiled returns, but such additional time shall be no 
more than--
            ``(1) for returns that are past due as of the date of the 
        filing of the petition, 120 days from such date, and
            ``(2) for returns which are not past due as of the date of 
        the filing of the petition, the later of 120 days from such 
        date or the due date for such returns under the last automatic 
        extension of time for filing such returns to which the debtor 
        is entitled, and for which request has been timely made, 
        according to applicable nonbankruptcy law,
            ``(3) upon notice and hearing, and order entered before the 
        lapse of any deadline fixed according to this subsection, where 
        the debtor demonstrates, by clear and convincing evidence, that 
        the failure to file the returns as required is because of 
        circumstances beyond the control of the debtor, the court may 
        extend the deadlines set by the trustee as provided in this 
        subsection for--
                    ``(A) a period of no more than 30 days for returns 
                described in paragraph (1) of this subsection, and
                    ``(B) for no more than the period of time ending on 
                the applicable extended due date for the returns 
                described in paragraph (2).
    ``(c) For purposes of this section, a return--
            ``(1) must satisfy the requirements of applicable 
        nonbankruptcy law, and 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 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 similar State or local law, 
        and
            ``(2) must have been filed in a manner permitted by 
        applicable nonbankruptcy law.''.
    (2) The table of sections of chapter 13 of title 11, United States 
Code, is amended by inserting after the item relating to section 1307 
the following:

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

SEC. 518. STANDARDS FOR TAX DISCLOSURE.

    Section 1125(a) of title 11, United States Code, is amended in 
paragraph (1)--
            (1) by inserting after ``records,'' and before ``that'' the 
        following: ``including a full discussion of the potential 
        material Federal and State tax consequences of the plan to the 
        debtor, any successor to the debtor, and a hypothetical 
        investor typical of the holders of claims or interests in the 
        case,'',
            (2) by inserting ``such'' after ``enable'' and before 
        ``a'', and
            (3) by striking ``reasonable'' where it appears after 
        ``hypothetical'' and before ``investor'' and by striking 
        ``typical of the holders of claims or interests'' after 
        ``investor'' and before ``of''.

SEC. 519. SETOFF OF TAX REFUNDS.

    Section 362(b) of title 11, United States Code, as amended by 
section 130, is amended--
            (1) in paragraph (18) by striking ``or'',
            (2) in paragraph (19) by striking the period at the end and 
        inserting ``; or'', and
            (3) by inserting after paragraph (19) the following:
            ``(20) under subsection (a) of the setoff of an income tax 
        refund, by a governmental unit, in respect of a taxable period 
        which ended before the order for relief against an income tax 
        liability for a taxable period which also ended before the 
        order for relief, unless--
                    ``(A) prior to such setoff, an action to determine 
                the amount or legality of such tax liability under 
                section 505(a) was commenced;
                    ``(B) where the setoff of an income tax refund is 
                not permitted because of a pending action to determine 
                the amount or legality of a tax liability, the 
                governmental unit may hold the refund pending the 
                resolution of the action.''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. TECHNICAL AMENDMENTS.

    Title 11 of the United States Code is amended--
            (1) in section 109(b)(2) by striking ``subsection (c) or 
        (d) of'';
            (2) in section 541(b)(4) by adding ``or'' at the end; and
            (3) in section 552(b)(1) by striking ``product'' each place 
        it appears and inserting ``products''.

SEC. 602. APPLICATION OF AMENDMENTS.

    The amendments made by this Act shall apply only with respect to 
cases commenced under title 11 of the United States Code after the date 
of the enactment of this Act.
                                 <all>