[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3150 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 457

105th CONGRESS

  2d Session

                               H. R. 3150

_______________________________________________________________________

                                 AN ACT

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

_______________________________________________________________________

                              July 7, 1998

            Read the second time and placed on the calendar
                                                       Calendar No. 457
105th CONGRESS
  2d Session
                                H. R. 3150


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 11, 1998

                                Received

                              July 6, 1998

                          Read the first time

                              July 7, 1998

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 AN ACT


 
  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 chapter 13 plan that 
                            pays unsecured creditors.
Sec. 103. Definition of inappropriate use.
Sec. 104. Debtor participation in credit counseling program.
Sec. 105. Who may be a debtor under chapter 11.
             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.
Sec. 117. Sense of the Congress.
Sec. 118. Charitable contributions.
Sec. 119. Reinforce the fresh start.
Sec. 119A. Chapter 11 discharge of debts arising from tobacco-related 
                            debts.
         Subtitle C--Adequate Protections for Secured Creditors

Sec. 121. Discouraging bad faith repeat filings.
Sec. 122. Definition of household goods.
Sec. 123. Debtor retention of personal property security.
Sec. 124. Relief from the automatic 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 the automatic 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.
Sec. 131. Aircraft equipment and vessels.
        Subtitle D--Adequate Protections for Unsecured Creditors

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. Debts for alimony, maintenance, and support.
Sec. 146. Nondischargeability of certain debts for alimony, 
                            maintenance, and support.
Sec. 147. Other exceptions to discharge.
Sec. 148. Fees arising from certain ownership interests.
Sec. 149. Protection of child support and alimony.
Sec. 150. Adequate protection for investors.
Sec. 151. Higher priority for debts for alimony, maintenance, and 
                            support.
              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.
Sec. 182. Limitation.
                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. Period for filing plan under chapter 11.
Sec. 210. Period for filing plan under chapter 12.
Sec. 211. Cases ancillary to foreign proceedings involving foreign 
                            insurance companies that are engaged in the 
                            business of insurance or reinsurance in the 
                            United States.
Sec. 212. Rejection of executory contracts affecting intellectual 
                            property rights to recordings of artistic 
                            performance.
Sec. 213. Unexpired leases of nonresidential real property.
Sec. 214. Definition of disinterested person.
Sec. 215. Defaults based on nonmonetary obligations.
                    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 statement and plan.
Sec. 234. Uniform national reporting requirements.
Sec. 235. Uniform reporting rules and forms for small business cases.
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.
Sec. 244. Study of operation of title 11 of the United States Code with 
                            respect to small businesses.
                  Chapter 2--Single Asset Real Estate

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

Sec. 301. Petition and proceedings related to petition.
Sec. 302. Applicability of other sections to chapter 9.
                  TITLE IV--BANKRUPTCY ADMINISTRATION

                     Subtitle A--General Provisions

Sec. 401. Adequate preparation time for creditors before the 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. Debtor to provide tax returns and other information.
Sec. 407. Dismissal for failure to file schedules timely or provide 
                            required information.
Sec. 408. Adequate time to prepare for hearing on confirmation of the 
                            plan.
Sec. 409. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 410. Sense of the Congress regarding expansion of rule 9011 of the 
                            Federal Rules of Bankruptcy Procedure.
Sec. 411. Jurisdiction of courts of appeals.
Sec. 412. Establishment of official forms.
Sec. 413. Elimination of certain fees payable in chapter 11 bankruptcy 
                            cases.
Sec. 414. Study of bankruptcy impact of credit extended to dependent 
                            students.
                      Subtitle B--Data Provisions

Sec. 441. Improved bankruptcy statistics.
Sec. 442. Uniform rules for the collection of 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. Stay of tax proceedings.
Sec. 511. Periodic payment of taxes in chapter 11 cases.
Sec. 512. Avoidance of statutory tax liens prohibited.
Sec. 513. Payment of taxes in the conduct of business.
Sec. 514. Tardily filed priority tax claims.
Sec. 515. Income tax returns prepared by tax authorities.
Sec. 516. 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--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 601. Amendment to add a chapter 6 to title 11, United States Code.
Sec. 602. Amendments to other chapters in title 11, United States Code.
                        TITLE VII--MISCELLANEOUS

Sec. 701. Technical amendments.
Sec. 702. 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 1 earner' shall mean during any 
        calendar year, the national median family income and the 
        national median household income for 1 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 not less than the 
        highest national median family income reported for a family of 
        equal or lesser size or, in the case of a household of 1 
        person, of not less than the national median household income 
        for 1 earner, 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), issued by the 
        Internal Revenue Service, 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 by the Internal Revenue Service allowance for 
        such 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 or 
adjustment of current monthly total income, projected monthly net 
income for purposes of this section shall be the amount calculated 
under paragraph (3) less such additional expenses or income adjustment 
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) if adjustment of current monthly total 
                income is claimed, an explanation of any income that 
                has been lost in the 6 months preceding the date of 
                determination and any replacement income that has been 
                offered or secured, or is expected, and an itemization 
                of such lost and replacement income;
                    ``(iii) if allowance for additional expenses is 
                claimed, a list itemizing each additional expense which 
                exceeds the expenses allowances provided under 
                paragraph (3)(A);
                    ``(iv) a detailed description of the extraordinary 
                circumstances that explain why each loss of income 
                described under clause (ii) will not be replaced or 
                each additional expense itemized under clause (iii) 
                requires allowance; and
                    ``(v) 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 such 
        materials are so provided--
                    ``(A) file a report with the court as to whether 
                the debtor qualifies for relief under this chapter 
                under section 109(b)(4); and
                    ``(B) if the trustee determines that the debtor 
                does not qualify for such relief, the trustee shall 
                provide a copy of such report to the parties in 
                interest.'';
            (6) in section 1302(b)--
                    (A) in paragraph (4) by striking ``and'' at the 
                end;
                    (B) in paragraph (5) by striking the period and 
                inserting a semicolon; and
                    (C) 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 
        sections 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 CHAPTER 13 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), 
                issued by the Internal Revenue Service, 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 by the 
                Internal Revenue Service allowance for such 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 under 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 under 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)''; and
            (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 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 any income 
                that 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 ``; and''; 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 not less than 5 years if the debtor's 
                current monthly total income is not less than the 
                highest national median family income reported for a 
                family of equal or lesser size or, in the case of a 
                household of 1 person, is not less than the national 
                median household income for 1 earner, as of the date of 
                confirmation of the plan and shall be not less than 3 
                years if the debtor's current monthly total income is 
                less than the highest national median family income 
                reported for a family of equal or lesser size or, in 
                the case of a household of 1 person, is less than the 
                national median household income for 1 earner, as of 
                the date of confirmation of the plan;
                    ``(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
                    ``(iv) nothing in subparagraph (i) or (ii) shall 
                prevent the payment of obligations described in section 
                507(a)(7) at the times provided for in the plan, and 
                the plan shall specify how payments to other creditors 
                under subparagraph (ii) will be accordingly 
                adjusted.''; 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.
    ``(4)(A) If a trustee appointed under this title or the United 
States Trustee files a motion under this subsection and the case is 
subsequently dismissed or converted to another chapter, the court shall 
award to such party in interest a reasonable attorney's fee and costs 
incurred in connection with such motion, payable by the debtor, unless 
the court finds that awarding such fee and costs would impose an 
unreasonable hardship on the debtor, considering the debtor's conduct.
    ``(B) The signature of the debtor's attorney on any petition, 
pleading, motion, or other paper filed with the court in the case of 
the debtor shall constitute a certificate that the attorney has--
            ``(i) performed a reasonable investigation into the 
        circumstances that gave rise to the petition, schedules, and 
        statement of financial affairs or the pleading, as applicable; 
        and
            ``(ii) determined that the petition, schedules, and 
        statement of financial affairs or the pleading, as applicable, 
        including the choice of this chapter--
                    ``(I) is well grounded in fact; and
                    ``(II) is warranted by existing law or a good-faith 
                argument for the extension, modification, or reversal 
                of existing law and does not constitute an 
                inappropriate use of the provisions of this chapter.
    ``(C) If the court finds that the attorney for the debtor signed a 
paper in violation of subparagraph (B), at a minimum, the court shall 
order--
            ``(i) the assessment of an appropriate civil penalty 
        against the attorney for the debtor; and
            ``(ii) the payment of the civil penalty to the trustee or 
        the United States Trustee.''.

SEC. 104. DEBTOR PARTICIPATION IN CREDIT COUNSELING PROGRAM.

    (a) Who May Be a Debtor.--Section 109 of title 11, United States 
Code, as amended by section 102, is amended by adding at the end the 
following:
    ``(i)(1) Subject to paragraph (2) and notwithstanding any other 
provision of this section, an individual may not be a debtor under this 
title unless such individual has, during the 90-day period preceding 
the date of filing of the petition, made a good-faith attempt to create 
a debt repayment plan, through a credit counseling program offered 
through credit counseling services described in section 342(b)(2) that 
has been approved by--
            ``(A) the United States trustee; or
            ``(B) the bankruptcy administrator for the district in 
        which the petition is filed.
    ``(2) The United States trustee or bankruptcy administrator may not 
approve a program for inclusion on the list under paragraph (1) unless 
the counseling service offering the program offers the program without 
charge, or at an appropriately reduced charge, if payment of the 
regular charge would impose a hardship on the debtor or the debtor's 
dependents.
    ``(3) The United States trustee or bankruptcy administrator shall 
designate any geographical areas in the United States trustee region or 
judicial district, as the case may be, as to which the United States 
trustee or bankruptcy administrator has determined that credit 
counseling services needed to comply with this subsection are not 
available or are too geographically remote for debtors residing within 
the designated geographical areas. The clerk of the bankruptcy court 
for each judicial district shall maintain a list of the designated 
areas within the district.
    ``(4) The clerk shall exclude a particular counseling service from 
the list maintained under section 342(b)(2) of this title if the United 
States trustee or bankruptcy administrator orders that the counseling 
service not be included in the list.
    ``(5) The court may waive the requirement specified in paragraph 
(1) if--
            ``(A) no credit counseling services are available as 
        designated under paragraphs (2) and (3);
            ``(B) the providers of credit counseling services available 
        in the district are unable or unwilling to provide such 
        services to the debtor in a timely manner; or
            ``(C) foreclosure, garnishment, attachment, eviction, levy 
        of execution, or similar claim enforcement procedure that would 
        have deprived the individual of property had commenced before 
        the debtor could complete a good-faith attempt to create such a 
        repayment plan.
    ``(6) A debtor who is subject to the exemption under paragraph 
(5)(C) shall be required to make a good-faith attempt to create a debt 
repayment plan outside the judicial system in the manner prescribed in 
paragraph (1) during the 30-day period beginning on the date of filing 
of the petition of that debtor.
    ``(7) A debtor shall be exempted from the bad faith presumption for 
repeat filing under section 362(c) of title 11 if the case is dismissed 
due to the creation of a debt repayment plan.
    ``(8) Only the United States trustee may make a motion for 
dismissal on the ground that the debtor did not comply with this 
subsection.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by sections 406 and 407, is amended by adding at the end the 
following:
    ``(g)(1) In addition to the requirements under subsection (a), an 
individual debtor shall file with the court--
            ``(A) a certificate from the credit counseling services 
        that provided the debtor services under section 109(i), or a 
        verified statement by the debtor as to why such attempt was not 
        required under section 109(i) or other substantial evidence of 
        a good-faith attempt to create a debt repayment plan outside 
        the bankruptcy system in the manner prescribed in section 
        109(i); and
            ``(B) a copy of the debt repayment plan, if any, developed 
        under section 109(i) through the credit counseling service 
        referred to in paragraph (1).
    ``(2) Only the United States trustee may make a motion for 
dismissal on the ground that the debtor did not comply with this 
subsection.''.

SEC. 105. WHO MAY BE A DEBTOR UNDER CHAPTER 11.

    Section 109(d) of title 11, United States Code, is amended by 
inserting ``, or a person described in subsection (b)(4)),'' after 
``chapter 7''.

             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)--
                    ``(i)(I) with an office located in the district in 
                which the petition is filed; or
                    ``(II) that offers toll-free telephone 
                communication to debtors in such district; and
                    ``(ii) that offers its services to debtors without 
                charge, or at an appropriately reduced charge if 
                payment of any regular charge would impose a hardship 
                on the debtor or a dependent of the debtor.
    ``(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 or on the motion of the United States 
trustee and, after notice to the debt counselling service and 
opportunity for a hearing, for good cause, orders that such debt 
counselling service shall not be so listed.
    ``(3) The clerk shall make such notice available to individuals 
whose debts are primarily consumer debts.''.
    (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 
consult with a wide range of individuals who are experts in the field 
of debtor education, including trustees who are appointed under chapter 
13 of title 11 of the United States Code and who operate financial 
management education programs for debtors, and shall develop a 
financial management training curriculum and materials that can be used 
to educate individual debtors on how to better manage their finances.
    (b) Test--(1) 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 180 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 (3) the following:
            ``(3A) `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''.

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 commence the case, and the replacement value 
                of each asset as defined in section 506 of this title 
                must be stated in those documents where requested after 
                reasonable inquiry to establish such value;
                    ``(C) current monthly total income, projected 
                monthly net income and, in a chapter 13 case, monthly 
                net income must be stated after reasonable inquiry; and
                    ``(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 Financial Affairs, as 
well as in some cases a Statement of Intention need to be prepared 
correctly and filed with the bankruptcy court. You will have to pay a 
filing fee to the bankruptcy court. Once your case starts, you will 
have to attend the required first meeting of creditors where you may be 
questioned by a court official called a ``trustee'' and by creditors.
    ```If you choose to file a chapter 7 case, you may be asked by a 
creditor to reaffirm a debt. You may want help deciding whether to do 
so.
    ```If you choose to file a chapter 13 case 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 relief under the Bankruptcy Code 
other than chapter 7 or chapter 13, you will want to find out what 
needs to be done from someone familiar with that type of relief.
    ```Your bankruptcy case may also involve litigation. You are 
generally permitted to represent yourself in litigation in bankruptcy 
court, but only attorneys, not bankruptcy petition preparers, can give 
you legal advice.'.
    ``(c) Except to the extent the debt relief 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 financial affairs, a debt relief counselling 
agency providing bankruptcy assistance to an assisted person, to the 
extent permitted by nonbankruptcy law, shall provide each assisted 
person at the time required for the notice required under subsection 
(a)(1) reasonably sufficient information (which 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; and
            ``(3) how to determine what property is exempt and how to 
        value exempt property at replacement value as defined in 
        section 506 of this title.
    ``(d) A debt relief 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.''.
    (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; and
            ``(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 and 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; or
            ``(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 or 
527 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 or 527 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 
                section 526 or 527 with respect to a bankruptcy case or 
                related proceeding of an assisted person;
                    ``(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 or 527 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 
                subparagraph (A) or (B), shall be awarded the costs of 
                the action and reasonable attorney fees as determined 
                by the court.
            ``(4) The United States District Court for any district 
        located in the State shall have concurrent jurisdiction of any 
        action under subparagraph (A) or (B) of paragraph (3).
            ``(5) Notwithstanding any other provision of Federal law, 
        if the court, on its own motion or on the motion of the United 
        States trustee, finds that a person intentionally violated 
        section 526 or 527 of this title, or engaged in a clear and 
        consistent pattern or practice of violating section 526 or 527 
        of this title, the court may--
                    ``(A) enjoin the violation of such section; or
                    ``(B) impose an appropriate civil penalty against 
                such person.
    ``(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.''.

SEC. 117. SENSE OF THE CONGRESS.

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

SEC. 118. CHARITABLE CONTRIBUTIONS.

    (a) Definitions.--Section 548(d) of title 11, United States Code, 
is amended by adding at the end the following:
    ``(3) In this section, the term `charitable contribution' means a 
charitable contribution as defined in section 170(c) of the Internal 
Revenue Code of 1986, if such contribution--
            ``(A) is made by a natural person; and
            ``(B) consists of--
                    ``(i) a financial instrument (as defined in section 
                731(c)(2)(C) of the Internal Revenue Code of 1986); or
                    ``(ii) cash.
    ``(4) In this section, the term `qualified religious or charitable 
entity or organization' means--
            ``(A) an entity described in section 170(c)(1) of the 
        Internal Revenue Code of 1986; or
            ``(B) an entity or organization described in section 
        170(c)(2) of the Internal Revenue Code of 1986.''.
    (b) Treatment of Prepetition Qualified Charitable Contributions.--
            (1) In general.--Section 548(a) of title 11, United States 
        Code, is amended--
                    (A) by inserting ``(1)'' after ``(a)'';
                    (B) by striking ``(1) made'' and inserting ``(A) 
                made'';
                    (C) by striking ``(2)(A)'' and inserting 
                ``(B)(i)'';
                    (D) by striking ``(B)(i)'' and inserting 
                ``(ii)(I)'';
                    (E) by striking ``(ii) was'' and inserting ``(II) 
                was'';
                    (F) by striking ``(iii)'' and inserting ``(III)''; 
                and
                    (G) by adding at the end the following:
    ``(2) A transfer of a charitable contribution to a qualified 
religious or charitable entity or organization shall not be considered 
to be a transfer covered under paragraph (1)(B) in any case in which--
            ``(A) the amount of such contribution, together with any 
        other such contribution, does not exceed 15 percent of the 
        gross annual income of the debtor for the year in which the 
        transfer of the contribution is made; or
            ``(B) the contribution made by a debtor exceeded the 
        percentage amount of gross annual income specified in 
        subparagraph (A), if the transfer was consistent with the 
        practices of the debtor in making charitable contributions.''.
            (2) Trustee as lien creditor and as successor to certain 
        creditors and purchasers.--Section 544(b) of title 11, United 
        States Code, is amended--
                    (A) by striking ``(b) The trustee'' and inserting 
                ``(b)(1) Except as provided in paragraph (2), the 
                trustee''; and
                    (B) by adding at the end the following:
    ``(2) Paragraph (1) shall not apply to a transfer of a charitable 
contribution (as defined in section 548(d)(3) of this title) that is 
not covered under section 548(a)(1)(B) of this title by reason of 
section 548(a)(2) of this title. Any claim by any person to recover a 
transferred contribution described in the preceding sentence under 
Federal or State law in a Federal or State court shall be preempted by 
the commencement of the case.''.
            (3) Conforming amendments.--Section 546 of title 11, United 
        States Code, is amended--
                    (A)in subsection (e)--
                            (i) by striking ``548(a)(2)'' and inserting 
                        ``548(a)(1)(B)''; and
                            (ii) by striking ``548(a)(1)'' and 
                        inserting ``548(a)(1)(A)'';
                    (B) in subsection (f)--
                            (i) by striking ``548(a)(2)'' and inserting 
                        ``548(a)(1)(B)''; and
                            (ii) by striking ``548(a)(1)'' and 
                        inserting ``548(a)(1)(A)''; and
                    (C) in the first subsection (g)--
                            (i) by striking ``section 548(a)(1)'' and 
                        inserting ``section 548(a)(1)(A)''; and
                            (ii) by striking ``548(a)(2)'' and 
                        inserting ``548(a)(1)(B)''.
    (c) Treatment of Post-Petition Charitable Contributions Under 
Chapter 7.--Section 707 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(c) In making a determination whether to dismiss a case under 
this section, the court may not take into consideration whether a 
debtor has made, or continues to make, charitable contributions (that 
meet the definition of `charitable contribution' under section 
548(d)(3)) to any qualified religious or charitable entity or 
organization (as defined in section 548(d)(4)).''.
    (d) Treatment of Post-Petition Charitable Contributions Under 
Chapter 13.--Section 111 of title 11, United States Code, as added by 
section 102, is amended by adding at the end the following:
    ``(c) For purposes of subsection (a), charitable contributions 
(that meet the definition of `charitable contribution' under section 
548(d)(3)) to any qualified religious or charitable entity or 
organization (defined in section 548(d)(4)), but not to exceed 15 
percent of the debtor's gross income for the year in which such 
contributions are made, shall be considered to be additional expenses 
of the debtor required by extraordinary circumstances.''.
    (e) Rule of Construction.--Nothing in the amendments made by this 
section is intended to limit the applicability of the Religious Freedom 
Restoration Act of 1993 (42 U.S.C. 2000bb et seq.).

SEC. 119. REINFORCE THE FRESH START.

    (a) Restoration of an Effective Discharge.--Section 523(a)(17) of 
title 11, United States Code, is amended--
            (1) by striking ``by a court'' and inserting ``on a 
        prisoner by any court'',
            (2) by striking ``section 1915(b) or (f)'' and inserting 
        ``subsection (b) or (f)(2) of section 1915'', and
            (3) by inserting ``(or a similar non-Federal law)'' after 
        ``title 28'' each place it appears.
    (b) Protection of Retirement Funds in Bankruptcy.--Section 522 of 
title 11, United States Code, is amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (A) by striking ``and'' at the 
                end;
                    (B) in subparagraph (B) by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(C) retirement funds to the extent exempt from taxation 
        under section 401, 403, 408, 414, 457, or 501(a) of the 
        Internal Revenue Code of 1986.''; and
            (2) in subsection (d) by adding at the end the following:
            ``(12) Retirement funds to the extent exempt from taxation 
        under 401, 403, 408, 414, 457, or 501(a) of the Internal 
        Revenue Code of 1986.''.
    (c) Effective Protection for Utility Service in the Wake of 
Deregulation.--Section 366 of title 11, United States Code, is amended 
by adding at the end the following:
    ``(c) For the purposes of this section, the term `utility' includes 
any provider of gas, electric, telephone, telecommunication, cable 
television, satellite communication, water, or sewer service, whether 
or not such service is a regulated monopoly.''.

SEC. 119A. CHAPTER 11 DISCHARGE OF DEBTS ARISING FROM TOBACCO-RELATED 
              DEBTS.

    Section 1141(d) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(5) The confirmation of a plan does not discharge a debtor that 
is a corporation from any debt arising from a judicial, administrative, 
or other action or proceeding that is--
            ``(A) related to the consumption or consumer purchase of a 
        tobacco product; and
            ``(B) based in whole or in part on false pretenses, a false 
        representation, or actual fraud.''.

         Subtitle C--Adequate Protections for Secured Creditors

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 a semicolon; 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. Upon motion by a party in interest for 
        continuation of the automatic stay and upon notice and a 
        hearing, the court may extend the stay in particular cases as 
        to any or all creditors (subject to such conditions or 
        limitations as the court may then impose) after notice and a 
        hearing completed before the expiration of the 30-day period 
        only if the party in interest demonstrates that the filing of 
        the later case is in good faith as to the creditors to be 
        stayed. 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 of this title, or any other reason to 
                        conclude that the later case will be concluded, 
                        if a case under chapter 7 of this title, with a 
                        discharge, and if a chapter 11 or 13 case, a 
                        confirmed plan which will be fully performed;
                    ``(B) as to any creditor that commenced an action 
                under subsection (d) in a previous case in which the 
                individual was a debtor if, as of the date of dismissal 
                of 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 single or joint case is filed by or against an 
        individual debtor under this title, and if 2 or more single or 
        joint cases of that debtor were pending within the previous 
        year but were dismissed, other than a case refiled under 
        section 707(b) of this title, the stay under subsection (a) 
        will not go into effect upon the filing of the later case. On 
        request of a party in interest, the court shall promptly enter 
        an order confirming that no stay is in effect. If a party in 
        interest requests within 30 days of the filing of the later 
        case, the court may order the stay to take effect in the case 
        as to any or all creditors (subject to such conditions or 
        limitations as the court may impose), after notice and hearing, 
        only if the party in interest demonstrates that the filing of 
        the later case is in good faith as to the creditors to be 
        stayed. A stay imposed pursuant to the preceding sentence will 
        be effective on the date of entry of the order allowing the 
        stay to go into effect. A case is presumptively not filed in 
        good faith (but such presumption may be rebutted by clear and 
        convincing evidence to the contrary)--
                    ``(A) as to all creditors if--
                            ``(i) 2 or more previous cases under this 
                        title in which the individual was a debtor were 
                        pending within the 1-year period;
                            ``(ii) a previous case under this title in 
                        which the individual was a debtor was dismissed 
                        within the time period stated in this paragraph 
                        after the debtor failed to file or amend the 
                        petition or other documents as required by this 
                        title or the court without substantial excuse 
                        (but mere inadvertence or negligence shall not 
                        be substantial excuse unless the dismissal was 
                        caused by the negligence of the debtor's 
                        attorney), failed to pay adequate protection as 
                        ordered by the court, or failed to perform the 
                        terms of a plan confirmed by the court; or
                            ``(iii) there has not been a substantial 
                        change in the financial or personal affairs of 
                        the debtor since the dismissal of the next most 
                        previous case under this title, or any other 
                        reason to conclude that the later case will not 
                        be concluded, if a case under chapter 7, with a 
                        discharge, and if a case under chapter 11 or 
                        13, with a confirmed plan that will be fully 
                        performed; or
                    ``(B) as to any creditor that commenced an action 
                under subsection (d) in a previous case in which the 
                individual was a debtor if, as of the date of dismissal 
                of that case, that action was still pending or had been 
                resolved by terminating, conditioning, or limiting the 
                stay as to action of that creditor.
            ``(5)(A) 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 the issuance of 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 under 
        this title. If such an order so provides, such stay shall also 
        not apply in any pending or later-filed case of any entity 
        under this title that claims or has an interest in the subject 
        property other than those entities identified in the court's 
        order.
            ``(B) The court shall cause any order entered pursuant to 
        this paragraph with respect to real property to be recorded in 
        the applicable real property records, which recording shall 
        constitute notice to all parties having or claiming an interest 
        in such real property for purpose of this section.
            ``(6) 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. DEFINITION OF HOUSEHOLD GOODS.

    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, except that the term 
        shall also include any tangible personal property reasonably 
        necessary for the maintenance and support of a dependent 
        child;''.

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 case under chapter 7 of this title, 
        not retain possession of personal property as to which a 
        creditor has an allowed claim for the purchase price secured in 
        whole or in part by an interest in that personal property 
        unless, in the case of an individual debtor, the debtor takes 1 
        of the following actions within 30 days after the first meeting 
        of creditors under section 341(a)--
                    ``(A) enters into an agreement with the creditor 
                pursuant to section 524(c) of this title with respect 
                to the claim secured by such property; or
                    ``(B) redeems such property from the security 
                interest pursuant to section 722 of this title.
        ``If the debtor fails to so act within the 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, 
        unless the court determines on the motion of the trustee, and 
        after notice and a hearing, that such property is of 
        consequential value or benefit to the estate.''; and
            (2) in section 722 by inserting ``in full at the time of 
        redemption'' before the period at the end.

SEC. 124. RELIEF FROM THE AUTOMATIC 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 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;
unless the court determines on the motion of the trustee, and after 
notice and a hearing, that such property is of consequential value or 
benefit to the estate.'';
            (2) in section 521, as amended by sections 104, 406, and 
        407--
                    (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 date set for the 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:
    ``(h) If the debtor fails timely to take the action specified in 
subsection (a)(6) of this section, or in paragraphs (1) and (2) of 
section 362(h) of this title, with respect to property which a lessor 
or bailor owns and has leased, rented, or bailed to the debtor or as to 
which a creditor holds a security interest not otherwise voidable under 
section 522(f), 544, 545, 547, 548, or 549, 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 case under this chapter is 
                dismissed or converted without completion of the plan, 
                such lien shall also be retained by such holder to the 
                extent recognized by applicable nonbankruptcy law; 
                and''.

SEC. 126. PROMPT RELIEF FROM THE AUTOMATIC 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 
        as described in findings made by the court.''.

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 a case 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 case under chapter of this title. 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 paragraphs (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 personal property securing an allowed claim shall 
be determined based on the replacement value of such property as of the 
date of filing the petition without deduction for costs of sale or 
marketing. With respect to property acquired for personal, family, or 
household purpose, replacement value shall mean the price a retail 
merchant would charge for property of that kind considering the age and 
condition of the property at the time value is determined.''.

SEC. 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 1 to 4 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 inserting ``; or''; and
                    (C) by inserting after paragraph (18) the 
                following:
            ``(19) under subsection (a), until a prepetition default is 
        cured fully in a case under chapter 13 of this title 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;''.

SEC. 131. AIRCRAFT EQUIPMENT AND VESSELS.

    Section 1110(a)(1) of title 11, United States Code, is amended--
            (1) in subparagraph (A) by striking ``that become due on or 
        after the date of the order'';
            (2) in subparagraph (B)--
                    (A) in clause (i) by striking ``and'' at the end; 
                and
                    (B) in clause (ii)--
                            (i) by inserting ``and within such 60-day 
                        period'' after ``order''; and
                            (ii) in subclause (II) by striking the 
                        period at the end and inserting ``; and''; and
                    (3) by adding at the end the following:
                    ``(iii) that occurs after the date of the order and 
                such 60-day period is cured in accordance with the 
                terms of such security agreement, lease, or conditional 
                sale contract.''.

        Subtitle D--Adequate Protections for Unsecured Creditors

SEC. 141. DEBTS INCURRED TO PAY NONDISCHARGEABLE DEBTS.

    (a) Priority of Claims for Debts Incurred To Pay Nondischargeable 
Debts.--Section 507(a) of title 11, United States Code, is amended by 
adding at the end the following:
            ``(10) Tenth, remaining allowed unsecured claims for debts 
        that are nondischargeable under section 523(a)(19), but which 
        shall be payable under this paragraph in the higher order of 
        priority (if any) as the respective claims paid by incurring 
        such debts.''.
    (b) Nondischargeability of Debts Incurred To Pay Nondischargeable 
Debts.--Section 523(a) of title 11, United States Code, is amended--
            (1) in paragraph (17) by striking ``or'' at the end;
            (2) in paragraph (18) by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(19) incurred to pay a debt that is nondischargeable by 
        reason of any other provision of this subsection or section 
        727, 1141, 1228(a), 1228(b), or 1328(b), except for any debt 
        incurred to pay such a nondischargeable debt in any case in 
        which--
                    ``(A)(i) the debtor who paid the nondischargeable 
                debt is a single custodial parent who has 1 or more 
                dependent children at the time of the order for relief; 
                or
                    ``(ii) there is an allowed claim for alimony to, 
                maintenance for, or support of a spouse, former spouse, 
                or child of the debtor payable under a judicial or 
                administrative order to such spouse or child (but not 
                to any other person) which was unpaid as of the date of 
                the petition; and
                    ``(B) the creditor is unable to demonstrate that 
                the debtor intentionally incurred the debt to pay the 
                debt which is nondischargeable;''.

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), consumer 
                debts owed to a single creditor, excluding debts 
                incurred for necessaries that do not exceed $250 in the 
                aggregate, 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), (3)(B), (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, but this subsection shall not apply if the 
debtor is primarily obligated to pay the creditor in whole or in part 
with respect to the claim under a legally binding separation agreement, 
divorce decree, or other order of a court of record, with respect to 
such individual or the person who has possession of such property.
    ``(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. DEBTS FOR ALIMONY, MAINTENANCE, AND SUPPORT.

    (a) Nondischargeability.--Title 11, United States Code, is 
amended--
            (1) in section 523(a)(18)--
                    (A) by inserting ``(including interest)'' after 
                ``law''; and
                    (B) in subparagraph (A) by striking ``and'' at the 
                end and inserting ``or''; and
            (2) in section 1328(a)(2) by striking ``or (9)'' and 
        inserting ``(9), or (18)''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 130, is amended--
            (1) in paragraph (19) by striking ``or'' at the end;
            (2) in paragraph (19) by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(20) under subsection (a) with respect to the withholding 
        of income pursuant to an order as specified in section 466(b) 
        of the Social Security Act; or
            ``(21) under subsection (a) with respect to the 
        withholding, suspension, or restriction of drivers' licenses, 
        professional and occupational licenses, and recreational 
        licenses pursuant to State law as specified in section 
        466(a)(15) of the Social Security Act or with respect to the 
        reporting of overdue support owed by an absent parent to any 
        consumer reporting agency as specified in section 466(a)(7) of 
        the Social Security Act.''.
    (c) Continued Liability of Property.--Section 522(c) of title 11, 
United States Code, is amended by striking ``section 523(a)(1) or 
523(a)(5)'' and inserting ``paragraph (1), (5), or (18) of section 
523(a)''.
    (d) Priority of Claims.--Section 507(a) of title 11, United States 
Code, as amended by section 141, is amended--
            (1) in the matter preceding paragraph (1) by inserting 
        before the colon the following:
``, except that, notwithstanding any other provision of this title, any 
expense or claim entitled to priority under paragraph (3) shall have 
first priority over any other expense or claim that has priority under 
any other provision of this subsection'';
            (2) in paragraph (10) by striking ``(10) Tenth'' and 
        inserting ``(11) Eleventh'';
            (3) in paragraph (9) by striking ``(9) Ninth'' and 
        inserting ``(10) Tenth'';
            (4) in paragraph (8) by striking ``(8) Eighth '' and 
        inserting ``(9) Ninth''; and
            (5) by inserting after paragraph (7) the following:
            ``(8) Eighth, allowed unsecured claims for debts that are 
        nondischargeable under section 523(a)(18).''.
    (e) Contents of Plans.--Section 1322(b)(1) of title 11, United 
States Code, is amended by striking the semicolon at the end and 
inserting the following:
        ``and provide for the payment of any claim entitled to priority 
        under section 507(a)(3) of this title before the payment of any 
        other claim entitled to priority under section 507(a), 
        notwithstanding the priorities established under section 
        507(a);''.
    (f) Confirmation of Plans.--Title 11 of the United States Code is 
amended--
            (1) in section 1129(a) by adding at the end the following:
            ``(14) If the debtor is required by a judicial or 
        administrative order to pay alimony to, maintenance for, or 
        support of a spouse, former spouse, or child of the debtor, the 
        debtor has paid all amounts payable under such order for 
        alimony, maintenance, or support that are due after the date 
        the petition is filed.'';
            (2) in section 1225(a)--
                    (A) in paragraph (5) by striking ``and'' at the 
                end;
                    (B) in paragraph (6) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) the debtor is required by a judicial or 
        administrative order to pay alimony to, maintenance for, or 
        support of a spouse, former spouse, or child of the debtor, the 
        debtor has paid all amounts payable under such order for 
        alimony, maintenance, or support that are due after the date 
        the petition is filed.''; and
            (3) in section 1325(a)--
                    (A) in paragraph (5) by striking ``and'' at the 
                end;
                    (B) in paragraph (6) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) if the debtor is required by a judicial or 
        administrative order to pay alimony to, maintenance for, or 
        support of a spouse, former spouse, or child of the debtor, the 
        debtor has paid all amounts payable under such order for 
        alimony, maintenance, or support that are due after the date 
        the petition is filed.''.
    (g) Discharge.--Title 11 United States Code is amended--
            (1) in section 1228(a) by inserting ``and only after a 
        debtor who is required by a judicial or administrative order to 
        pay alimony to, maintenance for, or support of a spouse, former 
        spouse, or child of the debtor, certifies that all amounts 
        payable under such order for alimony, maintenance, or support 
        that are due after the date the petition is filed have been 
        paid,'' after ``this title,''; and
            (2) in section 1328(a) by inserting ``and only after a 
        debtor who is required by a judicial or administrative order to 
        pay alimony to, maintenance for, or support of a spouse, former 
        spouse, or child of the debtor, certifies that all amounts 
        payable under such order for alimony, maintenance, or support 
        that are due after the date the petition is filed have been 
        paid,'' after ``plan,'' the 1st place it appears.
    (h) Conforming Amendments.--Section 456(b) of the Social Security 
Act (42 U.S.C. 656(b)) is amended--
            (1) by inserting ``, including interest,'' after ``Code)'';
            (2) by striking ``and'' and inserting ``or''; and
            (3) by striking ``released by a discharge'' and inserting 
        ``dischargeable''.

SEC. 146. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
              MAINTENANCE, AND SUPPORT.

    Section 523(a)(5) of title 11, United States Code, is amended to 
read as follows:
            ``(5) to a spouse, former spouse, or child of the debtor 
        for alimony to, maintenance for, or support of such spouse or 
        child, or to a spouse, former spouse, or child of the debtor, 
        to the extent such debt is the result of a property settlement 
        agreement, a hold harmless agreement, or any other type of debt 
        that is not in the nature of alimony, maintenance, or support 
        in connection with or incurred by the debtor in the course of a 
        separation agreement, divorce decree, any modifications 
        thereof, or other order of a court of record, determination 
        made in accordance with State or territorial law by a 
        governmental unit, but not to the extent that such debt is 
        assigned to another entity, voluntarily, by operation of law, 
        or otherwise (other than debts assigned pursuant to section 
        408(a)(3) of the Social Security Act, or such debt that has 
        been assigned to the Federal government, or to a State or 
        political subdivision of such State, or the creditor's 
        attorney);''.

SEC. 147. OTHER EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, is amended--
            (1) by striking subsection (a)(15), as added by section 
        304(e)(1) of Public Law 103-394;
            (2) in subsection (a)(7) by inserting ``an order of 
        disgorgement or restitution obtained by a governmental unit,'' 
        after ``such debt is for''; and
            (3) in subsection (c)(1) by striking ``(6), or (15)'' and 
        inserting ``or (6)''.

SEC. 148. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

    (a) Exception to Discharge.--Section 523(a)(16) of title 11, United 
States Code, is amended--
            (1) by striking ``dwelling'' the 1st place it appears;
            (2) by striking ``ownership or'' and inserting 
        ``ownership,'';
            (3) by striking ``housing'' the 1st place it appears; and
            (4) by striking ``but only'' and all that follows through 
        ``such period,'', and inserting ``or a lot in a homeowners 
        association, for as long as the debtor or the trustee has a 
        legal, equitable, or possessory ownership interest in such 
        unit, such corporation, or such lot,''.
    (b) Executory Contracts.--Section 365 of title 11, United States 
Code, as amended by section 161, is amended by adding at the end the 
following:
    ``(q) A debt of a kind described in section 523(a)(16) of this 
title shall not be considered to be a debt arising from an executory 
contract.''

SEC. 149. PROTECTION OF CHILD SUPPORT AND ALIMONY.

    (a) Amendment.--Title 11 of the United States Code, as amended by 
section 116, is amended by inserting after section 528 the following:
``Sec. 529. Protection of child support and alimony payments after 
              discharge
    ``Notwithstanding the provisions of the constitution or law of any 
State providing a different priority, any debts of the individual who 
has received a discharge under this title to a spouse, former spouse, 
or child for alimony to, maintenance for, or support of such spouse or 
child, in connection with a separation agreement, divorce decree, or 
other order of a court of record, determination made in accordance with 
State or territorial law by a governmental unit, or property settlement 
agreement, but not to the extent that such debt--
            ``(1) is assigned to another entity, voluntarily, by 
        operation of law, or otherwise; or
            ``(2) includes a liability designated as alimony, 
        maintenance, or support, unless such liability is actually in 
        the nature of alimony, maintenance, or support,
shall have priority in payment and collection over a creditor's claim 
which is not discharged in the individual's case pursuant to paragraph 
(2), (4), or (19) of section 523(a) of this title, but such priority 
shall not affect the priority of any consensual lien, mortgage, or 
security interest securing such creditor's claim except with respect to 
any property of the debtor acquired after the date of the filing of the 
petition. A creditor that receives a payment, or collects money or 
property, in satisfaction of all or part of any debt excepted from 
discharge under paragraph (2), (4), or (14) of section 523(a) of this 
title shall not later than 20 days after receiving such payment or 
collecting such money or property, distribute such payment, such money, 
or such property ratably to individuals who then hold debts entitled to 
priority under section 507(a)(3) of this title. Not later than 2 years 
after receiving such payment or collecting such money or property, such 
creditor shall make the distribution required by this section to all 
individuals whose identity is known to such creditor at the time of 
distribution.''.
    (b) Conforming Amendment.--The table of sections of chapter 5 of 
title 11, United States Code, as amended by section 116, is amended by 
inserting after the item relating to section 528 the following:

``529. Protection of child support and alimony payments after 
                            discharge.''.

SEC. 150. ADEQUATE PROTECTION FOR INVESTORS.

    (a) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (48) the following:
            ``(48A) `securities self regulatory organization' means 
        either a securities association registered with the Securities 
        and Exchange Commission pursuant to section 15A of the 
        Securities Exchange Act of 1934 or a national securities 
        exchange registered with the Securities and Exchange Commission 
        pursuant to section 6 of the Securities Exchange Act of 
        1934;''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by sections 130 and 146, is amended--
            (1) in paragraph (20) by striking ``or'' at the end;
            (2) in paragraph (21) by striking the period at the end and 
        a inserting ``; or''; and
            (3) by adding at the end the following:
            ``(22) under subsection (a) of this section, of the 
        commencement or continuation of an investigation or action by a 
        securities self regulatory organization to enforce such 
        organization's regulatory power; of the enforcement of an order 
        or decision, other than for monetary sanctions, obtained in an 
        action by the securities self regulatory organization to 
        enforce such organization's regulatory power; or of any act 
        taken by the securities self regulatory organization to delist, 
        delete, or refuse to permit quotation of any stock that does 
        not meet applicable regulatory requirements.''.

SEC. 151. HIGHER PRIORITY FOR DEBTS FOR ALIMONY, MAINTENANCE, AND 
              SUPPORT.

    Section 507(a) of title 11, United States Code, is amended--
            (1) by striking paragraph (7);
            (2) in paragraph (6) by striking ``(6) Sixth'' and 
        inserting ``(7) Seventh'';
            (3) in paragraph (5) by striking ``(5) Fifth'' and 
        inserting ``(6) Sixth'';
            (4) in paragraph (4) by striking ``(4) Fourth'' and 
        inserting ``(5) Fifth'';
            (5) in paragraph (3) by striking ``(3) Third'' and 
        inserting ``(4) Fourth''; and
            (6) by inserting after paragraph (2) the following:
            ``(3) Third, allowed claims for debts to a spouse, former 
        spouse, or child of the debtor for alimony to, maintenance for, 
        or support of such spouse or child, in connection with a 
        separation agreement, divorce decree or other order of a court 
        of record, determination made in accordance with State or 
        territorial law by a governmental unit, or property settlement 
        agreement, but not to the extent that such debt--
                    ``(A) is assigned to another entity, voluntarily, 
                by operation of law, or otherwise; or
                    ``(B) includes a liability designed as alimony, 
                maintenance, or support, unless such liability is 
                actually in the nature of alimony, maintenance, or 
                support.''.

              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 case under chapter 11 of this title in which the debtor 
is an individual and in a case under chapter 13 of this title, 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 
1307 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 ``, or for a longer portion of such 180-day 
        period than in any other place''.

SEC. 182. LIMITATION.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (b)(2)(A) by inserting ``subject to 
        subsection (n),'' before ``any property''; and
            (2) by adding at the end the following:
    ``(n) For purposes of subsection (b)(2)(A) and notwithstanding 
subsection (a), the value of an interest in--
            ``(1) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
            ``(2) a cooperative that owns property that the debtor or a 
        dependent of the debtor uses as a residence; or
            ``(3) a burial plot for the debtor or a dependent of the 
        debtor;
shall be reduced to the extent such value is attributable to any 
portion of any property that the debtor disposed of in the 365-day 
period ending of the date of the filing of the petition, with the 
intent to hinder, delay, or defraud a creditor and that the debtor 
could not exempt, or that portion that the debtor could not exempt, 
under subsection (b) if on such date the debtor had held the property 
so disposed of.''.

                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) A person appointed to examine a request for compensation or 
reimbursement payable under this section may not be paid on the basis 
of the amount of any reduction recommended by such person in the amount 
or rate of such compensation or such reimbursement.''.

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 and after notice and a hearing, for 
cause may order that the United States trustee not convene a meeting of 
creditors or equity security holders if the debtor has filed a plan as 
to which the debtor solicited acceptances prior to the commencement of 
the case.''.

SEC. 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)(A) The court on its own motion or, subject to subparagraph 
(B), 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.
    ``(B) A request to change the membership of a committee appointed 
under subsection (a) may be made under subparagraph (A) by a party in 
interest only after such request is submitted to and denied by the 
United States trustee.''.

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

SEC. 209. PERIOD FOR FILING PLAN UNDER CHAPTER 11.

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

SEC. 210. PERIOD FOR FILING PLAN UNDER CHAPTER 12.

    (a) Extension of Period.--Section 1221 of title 11, United States 
Code, is amended by inserting ``to any period not later than 150 days 
after the order for relief'' after ``period''.
    (b) Relief From the Stay.--Section 362(d) of title 11, United 
States Code, is amended--
            (1) in paragraph (2) by striking ``or'' at the end;
            (2) in paragraph (3) by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) with respect to a stay of an act against property 
        under subsection (a) of a debtor in a case under chapter 12, by 
        a creditor whose claim is secured by an interest in such 
        property, unless the debtor has filed a plan in accordance with 
        section 1221.''.
    (c) Special Treatment of Secured Claims.--(1) Chapter 12 of title 
11, United States Code, is amended by inserting after section 1231 the 
following:
``Sec. 1232. Special treatment of secured claims
    ``(a)(1) A claim secured by a lien on property of the estate shall 
be allowed or disallowed under section 502 of this title the same as if 
the holder of such claim had recourse against the debtor on account of 
such claim, whether or not such holder has such recourse, unless--
            ``(A) subject to paragraph (2), the holder of such claim 
        elects to apply subsection (b); or
            ``(B) such holder does not have such recourse, and such 
        property is sold under section 363 of this title or is to be 
        sold under the plan.
    ``(2) A holder of a claim may not elect to apply subsection (b) 
if--
            ``(A) such claim is of inconsequential value; or
            ``(B) the holder of a claim has recourse against the debtor 
        on account of such claim, and such property is sold under 
        section 363 of this title or is to be sold under the plan.
    ``(b) If such an election is made to apply this subsection, then 
notwithstanding section 506(a) of this title, such claim is a secured 
claim to the extent such claim is allowed.''.
    (2) The table of sections of chapter 12 of title 11, United States 
Code, is amended by inserting after the item relating to section 1231 
the following:

``1232. Special treatment of secured claims.''.

SEC. 211. CASES ANCILLARY TO FOREIGN PROCEEDINGS INVOLVING FOREIGN 
              INSURANCE COMPANIES THAT ARE ENGAGED IN THE BUSINESS OF 
              INSURANCE OR REINSURANCE IN THE UNITED STATES.

    Section 304 of title 11, United States Code, is amended--
            (1) in subsection (b) by striking ``provisions of 
        subsection (c)'' and inserting ``subsections (c) and (d)''; and
            (2) by adding at the end the following:
    ``(d) The court may not grant to a foreign representative of the 
estate of an insurance company that is not organized under the law of a 
State and that is engaged in the business of insurance, or reinsurance, 
in the United States relief under subsection (b) with respect to 
property that is--
            ``(1) a deposit required by a State law relating to 
        insurance or reinsurance;
            ``(2) a multibeneficiary trust required by a State law 
        relating to insurance or reinsurance to protect holders of 
        insurance policies issued in the United States or to protect 
        holders or claimants against such policies; or
            ``(3) a multibeneficiary trust authorized by a State law 
        relating to insurance or reinsurance to allow a person engaged 
        in the business of insurance in the United States--
                    ``(A) to cede reinsurance to such an insurance 
                company; and
                    ``(B) to treat so ceded reinsurance as an asset, or 
                deduction from liability, in financial statements of 
                such person.''.

SEC. 212. REJECTION OF EXECUTORY CONTRACTS AFFECTING INTELLECTUAL 
              PROPERTY RIGHTS TO RECORDINGS OF ARTISTIC PERFORMANCE.

    Section 365(n) of title 11, United States Code, is amended at the 
end the following:
            ``(5) Where the court finds that a personal services 
        contract is property of the estate, the trustee may not reject 
        an executory contract for personal services in which advances 
        are paid for the creation of copyrighted sound recordings in 
        the future if a material purpose for commencing a case under 
        this title is to reject such contract, unless, absent such 
        rejection, economic rehabilitation of the debtor's finances, 
        including such contract, cannot be achieved.''.

SEC. 213. UNEXPIRED LEASES OF NONRESIDENTIAL REAL PROPERTY.

    Section 365(d)(4) of title 11, United States Code, is amended to 
read as follows:
    ``(4) In a case under any chapter of this title, if the trustee 
does not assume or reject an unexpired lease of nonresidential real 
property under which the debtor is the lessee before the earlier of (A) 
120 days after the date of the order for relief, or (B) the entry of an 
order confirming a plan, then such lease is deemed rejected, and the 
trustee shall immediately surrender such nonresidential real property 
to the lessor but in no event shall such time period exceed 120 days. 
Notwithstanding the immediately preceding sentence, and provided no 
plan has been confirmed, upon motion of the trustee, and after notice 
and a hearing, the court may within such 120-day period extend the 120-
day period by a period not to exceed 150 days, contingent upon written 
consent of the affected lessor or with the approval of the court, and 
provided the trustee has timely performed all post-petition lease 
obligations, but in no circumstance shall such period extend beyond the 
earlier of (i) 270 days from the date of the order for relief or (ii) 
the entry of an order approving a disclosure statement, without the 
consent of the lessor.''.

SEC. 214. DEFINITION OF DISINTERESTED PERSON.

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

SEC. 215. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

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

                    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 are also debtors under this title) that has 
                aggregate noncontingent, liquidated secured and 
                unsecured debts as of the date of the petition or the 
                order for relief in an amount not more than $5,000,000 
                (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) of title 11, United 
States Code, 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; and
            ``(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 STATEMENT AND PLAN.

    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 FOR SMALL BUSINESS CASES.

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

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) subject to section 363(c)(2), maintain insurance 
        customary and appropriate to the industry;
            ``(6)(A) timely file tax returns;
            ``(B) subject to section 363(c)(2), timely pay all 
        administrative expense tax claims, except those being contested 
        by appropriate proceedings being diligently prosecuted; and
            ``(C) subject to section 363(c)(2), 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 payable for periods beginning after the date the case 
        is commenced that are collected or withheld by the debtor 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 shortened 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 paragraph (2)(B)(vi) 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, as amended by section 111, 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 (6) by striking ``and'' at the end;
            (3) in paragraph (7) by striking the period at the end and 
        inserting ``; and''; and
            (4) by inserting after paragraph (7) the following:
            ``(8) 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; and
            ``(9) in cases in which the United States trustee finds 
        material grounds for any relief under section 1112 of title 11, 
        the United States trustee shall apply promptly to the court for 
        relief.''.
    (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--
            (1) in subsection (i) as so redesignated by section 124--
                    (A) by striking ``An'' and inserting ``(1) Except 
                as provided in paragraph (2), an''; and
                    (B) by adding at the end the following:
    ``(2) If such violation is based on an action taken by an entity in 
the good-faith belief that subsection (h) applies to the debtor, then 
recovery under paragraph (1) against such entity shall be limited to 
actual damages.''; and
            (2) by inserting after subsection (i), as redesignated by 
        section 124, the following:
    ``(j) The filing of a petition under chapter 11 of this title 
operates as a stay of the acts described in subsection (a) only in an 
involuntary case involving no collusion by the debtor with creditors 
and 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 1 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 rule 2004 of the Federal Rules of Bankruptcy Procedure;
            ``(H) failure timely to provide information or attend 
        meetings reasonably requested by the United States trustee;
            ``(I) failure timely to pay taxes due after the date of the 
        order for relief or to file tax returns due after the order for 
        relief;
            ``(J) failure to file a disclosure statement, or to file or 
        confirm a plan, within the time fixed by this title or by order 
        of the court;
            ``(K) failure to pay any fees or charges required under 
        chapter 123 of title 28;
            ``(L) revocation of an order of confirmation under section 
        1144 of this title;
            ``(M) inability to effectuate substantial consummation of a 
        confirmed plan;
            ``(N) material default by the debtor with respect to a 
        confirmed plan; and
            ``(O) termination of a plan by reason of the occurrence of 
        a condition specified in the plan.
    ``(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.''.

SEC. 244. STUDY OF OPERATION OF TITLE 11 OF THE UNITED STATES CODE WITH 
              RESPECT TO SMALL BUSINESSES.

    Not later than 2 years after the date of the enactment of this Act, 
the Small Business Administration, in consultation with the Attorney 
General, the Director of the Administrative Office of United States 
Trustees, and the Director of the Administrative Office of the United 
States Courts, shall--
            (1) conduct a study to determine--
                    (A) the internal and external factors that cause 
                small businesses to become debtors in cases under title 
                11 of the United States Code and that cause certain 
                small businesses to successfully complete cases under 
                chapter 11 of such title; and
                    (B) how Federal laws relating to bankruptcy can be 
                made more effective and efficient in assisting small 
                businesses to remain viable; and
            (2) submit to the Speaker of the House of Representatives 
        and the President pro tempore of the Senate a report 
        summarizing such study.

                  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. 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; or''.

               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.''.

SEC. 302. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

    Section 901 of title 11, United States Code, is amended--
            (1) by inserting ``555, 556,'' after ``553,''; and
            (2) by inserting ``559, 560,'' after ``557,''.

                  TITLE IV--BANKRUPTCY ADMINISTRATION

                     Subtitle A--General Provisions

SEC. 401. ADEQUATE PREPARATION TIME FOR CREDITORS BEFORE THE 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 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 1 creditor) shall be permitted to 
appear at and participate in the meeting of creditors in a case under 
chapter 7 or 13 either alone or in conjunction with an attorney for the 
creditor. Nothing in this subsection shall be construed to require any 
creditor to be represented by an attorney at any meeting of 
creditors.''.

SEC. 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 sections 111 and 240, 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 1 out of every 100 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 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. 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 financial affairs filed by the debtor in the case. At any 
time, a creditor in a case under chapter 13 of this title 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 financial 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 of this title 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. 407. DISMISSAL FOR FAILURE TO FILE SCHEDULES TIMELY OR PROVIDE 
              REQUIRED INFORMATION.

    Section 521 of title 11, United States Code, as amended by section 
406, 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. 408. 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 meeting of 
creditors under section 341(a) of this title.''.

SEC. 409. 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 current monthly total income of the debtor and in a 
joint case, the debtor and the debtor's spouse combined, is not less 
than the highest national median family income reported for a family of 
equal or lesser size or, in the case of a household of 1 person, not 
less than the national median household income for 1 earner, 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 current monthly 
total income of the debtor or in a joint case, the debtor and the 
debtor's spouse combined, is less than the highest national median 
family income reported for a family of equal or lesser size, or in the 
case of a household of 1 person less than the national median household 
income for 1 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 current monthly 
total income of the debtor, and in a joint case, the debtor and the 
debtor's spouse combined, is not less than the highest national median 
family income reported for a family of equal or lesser size or, in the 
case of a household of 1 person, not less than the national median 
household income for 1 earner, as of the date of the modification and 
shall be 3 years if the current monthly total income is less than the 
highest national median family income reported for a family of equal or 
lesser size or, in the case of a household of 1 person, less than the 
national median household income for 1 earner as of the date of the 
modification.''.

SEC. 410. 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. 411. 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 and judgments of bankruptcy courts or district 
        courts entered under section 105 of title 11, or the refusal to 
        enter an order 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.--(1) 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''.
    (2) Title 28, 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''.

SEC. 412. ESTABLISHMENT OF OFFICIAL FORMS.

    The Judicial Conference of the United States shall establish 
official forms to facilitate compliance with the amendments made by 
sections 101 and 102.

SEC. 413. ELIMINATION OF CERTAIN FEES PAYABLE IN CHAPTER 11 BANKRUPTCY 
              CASES.

    (a) Amendments.--Section 1930(a)(6) of title 28, United States 
Code, is amended--
            (1) in the 1st sentence by striking ``until the case is 
        converted or dismissed, whichever occurs first''; and
            (2) in the 2d sentence--
                    (A) by striking ``The'' and inserting ``Until the 
                plan is confirmed or the case is converted (whichever 
                occurs first) the''; and
                    (B) by striking ``less than $300,000;'' and 
                inserting ``less than $300,000. Until the case is 
                converted, dismissed, or closed (whichever occurs first 
                and without regard to confirmation of the plan) the fee 
                shall be''.
    (b) Delayed Effective Date.--The amendments made by subsection (a) 
shall take effect on October 1, 1999.

SEC. 414. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT 
              STUDENTS.

    Not later than 1 year after the date of the enactment of this Act, 
the Comptroller General of the United States shall--
            (1) conduct a study regarding the impact that the extension 
        of credit to individuals who are--
                    (A) claimed as dependents for purposes of the 
                Internal Revenue Code of 1986; and
                    (B) enrolled in post-secondary educational 
                institutions,
        has on the rate of cases filed under title 11 of the United 
        States Code; and
            (2) submit to the Speaker of the House of Representatives 
        and the President pro tempore of the Senate a report 
        summarizing such study.

                      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. 
The Executive Office for United States Trustees shall compile such 
statistics, in such form as shall be determined by such Office, in 
consultation with the Administrative Office of the United States 
Courts, 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, 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 monthly total 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. UNIFORM RULES FOR THE COLLECTION OF 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 evaluate the efficiency and 
practicality of the Federal bankruptcy system. In issuing rules 
proposing the forms referred to in subsection (a), the Attorney General 
shall strike the best achievable practical balance between--
            ``(1) the reasonable needs of the public for information 
        about the operational results of the Federal bankruptcy system; 
        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; and
            ``(8) distributions to claimants and claims discharged 
        without payment,
in each case by appropriate category and, in cases under chapters 12 
and 13 of title 11, date of confirmation of the plan, each modification 
thereto, and defaults by the debtor in performance under the plan.
    ``(e) Periodic Reports.--Periodic reports proposed for adoption by 
trustees or debtors in possession under chapter 11 of title 11 shall, 
in addition to such other matters as are required by law or as the 
Attorney General, in the discretion of the Attorney General, shall 
propose, include--
            ``(1) information about the standard industry 
        classification, published by the Department of Commerce, for 
        the businesses conducted by the debtor;
            ``(2) length of time the case has been pending;
            ``(3) number of full-time employees as 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 for the 
        professional fees incurred by or on behalf of the debtor, 
        between those that would have been incurred absent a bankruptcy 
        case and those not); and
            ``(7) plans of reorganization filed and confirmed and, with 
        respect thereto, by class, the recoveries of the holders, 
        expressed in aggregate dollar values and, in the case of 
        claims, as a percentage of total claims of the class 
        allowed.''.
    (b) 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 a usable electronic form in bulk to the public 
        subject to such appropriate privacy concerns and safeguards as 
        the Judicial Conference of the United States may determine; and
            (2) there should be established a bankruptcy data system in 
        which--
                    (A) a single set of data definitions and forms are 
                used to collect data nationwide; and
                    (B) data for any particular bankruptcy case are 
                aggregated in the same electronic record.

                        TITLE 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 to 
read as follows:
            ``(1) a debt of a kind specified in paragraph (1) or (5) of 
        section 523(a) of this title, and such property shall be liable 
        for a debt of a kind specified in such paragraph (5) 
        notwithstanding any State law to the contrary;''.

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 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 of 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
    ``Notwithstanding any provision of this title that requires the 
payment of interest on a claim, if interest is required to be paid on a 
tax claim, the rate of interest shall be as follows:
            ``(1) In the case of ad valorem tax claims, whether secured 
        or unsecured, other unsecured tax claims where interest is 
        required to be paid under section 726(a)(5) of this title and 
        secured tax claims the rate shall be determined under 
        applicable nonbankruptcy law.
            ``(2) In the case of unsecured claims for taxes arising 
        before the date of the order for relief and paid under a plan 
        of reorganization, the minimum rate of interest to be applied 
        during the period after the filing of the petition shall be the 
        Federal short-term rate rounded to the nearest full percent, 
        determined under section 1274(d) of the Internal Revenue Code 
        of 1986, for the calendar month in which the plan is confirmed, 
        plus 3 percentage points.''.

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

    Section 507(a)(9)(A) of title 11, United States Code, as so 
redesignated, 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 with 
                                respect of such tax, was pending or in 
                                effect during such 240-day period;
                                    ``(II) any time plus 30 days during 
                                which an installment agreement with 
                                respect of such tax was pending or in 
                                effect during such 240-day period, up 
                                to 1 year; and
                                    ``(III) 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.

    (a) Assessment Defined for Priority Purposes.--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 point in time when all actions required have been 
                taken 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;''.
    (b) Assessment Defined for the Stay of Proceedings.--Section 
362(b)(9)(D) of title 11, United States Code, is amended by inserting 
after ``the making of an assessment'' the following: ``as defined by 
applicable nonbankruptcy law notwithstanding the definition of an 
`assessment' elsewhere in this title''.

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''.

SEC. 509. CHAPTER 11 DISCHARGE OF FRAUDULENT TAXES.

    Section 1141(d) of title 11, United States Code, as amended by 
section 119A, is amended by adding at the end the following:
    ``(6) 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. STAY OF TAX PROCEEDINGS.

    (a) 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) 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 without regard to whether such 
                determination was made prepetition or postpetition.''.

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; and
            (2) in subparagraph (C)--
                    (A) by striking ``deferred cash payments, over a 
                period not exceeding six years after the date of 
                assessment of such claim,'' and inserting ``regular 
                installment payments in cash, but in no case with a 
                balloon provision, and no more than three months apart, 
                beginning no later than the effective date of the plan 
                and ending on the earlier of five years after the 
                petition date or the last date payments are to be made 
                under the plan to unsecured creditors,'';
                    (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 of not 
                less than is required in subparagraph (C) and over a 
                period no greater than is required in such 
                subparagraph.''.

SEC. 512. 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. PAYMENT OF TAXES IN THE CONDUCT OF BUSINESS.

    (a) Payment of Taxes Required.--Section 960 of title 28, United 
States Code, is amended--
            (1) by inserting ``(a)'' before ``Any''; and
            (2) by adding at the end the following:
    ``(b) Such taxes shall be paid when due in the conduct of such 
business unless--
            ``(1) the tax is a property tax secured by a lien against 
        property that is abandoned within a reasonable time after the 
        lien attaches, by the trustee of a bankruptcy estate, pursuant 
        to section 554 of title 11; or
            ``(2) payment of the tax is excused under a specific 
        provision of title 11.
    ``(c) In a case pending under chapter 7 of title 11, payment of a 
tax may be deferred until final distribution is made under section 726 
of title 11 if--
            ``(1) the tax was not incurred by a trustee duly appointed 
        under chapter 7 of title 11; or
            ``(2) before the due date of the tax, the court has made a 
        finding of probable insufficiency of funds of the estate to pay 
        in full the administrative expenses allowed under section 
        503(b) of title 11 that have the same priority in distribution 
        under section 726(b) of title 11 as such tax.''.
    (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);''.
    (d) Payment of Taxes and Fees as Secured Claims.--Section 506 of 
title 11, United States Code, is amended--
            (1) in subsection (b) by inserting ``or State statute'' 
        after ``agreement''; and
            (2) in subsection (c) by inserting ``, including the 
        payment of all ad valorem property taxes in respect of the 
        property'' before the period at the end.

SEC. 514. TARDILY FILED PRIORITY TAX CLAIMS.

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

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

    Section 523(a)(1)(B) of title 11, United States Code, is amended--
            (1) by inserting ``or equivalent report or notice,'' after 
        ``a return,'';
            (2) in clause (i)--
                    (A) by inserting ``or given'' after ``filed''; and
                    (B) by striking ``or'' at the end;
            (3) in clause (ii)--
                    (A) by inserting ``or given'' after ``filed''; and
                    (B) by inserting ``, report, or notice'' after 
                ``return''; and
            (4) 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. 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, as 
amended by section 146, is amended--
            (1) in paragraph (6) by striking ``and'' at the end;
            (2) in paragraph (7) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) 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;
            ``(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; and
            ``(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 only, a return includes a return 
prepared pursuant to section 6020 (a) or (b) 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.''.
    (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 the 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, United 
        States Code; 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 such 
        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,'' the following: 
        ``including a full discussion of the potential material 
        Federal, State, and local tax consequences of the plan to the 
        debtor, any successor to the debtor, and a hypothetical 
        investor domiciled in the State in which the debtor resides or 
        has its principal place of business typical of the holders of 
        claims or interests in the case,'';
            (2) by inserting ``such'' after ``enable''; and
            (3) by striking ``reasonable'' where it appears after 
        ``hypothetical'' and by striking ``typical of holders of claims 
        or interests'' after ``investor''.

SEC. 519. SETOFF OF TAX REFUNDS.

    Section 362(b) of title 11, United States Code, as amended by 
sections 130, 146, and 150 is amended--
            (1) in paragraph (21) by striking ``or'';
            (2) in paragraph (22) by striking the period at the end and 
        inserting ``; or''; and
            (3) by inserting after paragraph (22) (as so redesignated) 
        the following:
            ``(23) 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; or
                    ``(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--ANCILLARY AND OTHER CROSS-BORDER CASES

SEC. 601. AMENDMENT TO ADD A CHAPTER 6 TO TITLE 11, UNITED STATES CODE.

    (a) In General.--Title 11, United States Code, is amended by 
inserting after chapter 5 the following:

          ``CHAPTER 6--ANCILLARY AND OTHER CROSS-BORDER CASES

``Sec.
``601. Purpose and scope of application.
                   ``SUBCHAPTER I--GENERAL PROVISIONS

``602. Definitions.
``603. International obligations of the United States.
``604. Commencement of ancillary case.
``605. Authorization to act in a foreign country.
``606. Public policy exception.
``607. Additional assistance.
``608. Interpretation.
``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``609. Right of direct access.
``610. Limited jurisdiction.
``611. Commencement of bankruptcy case under section 301 or 303.
``612. Participation of a foreign representative in a case under this 
                            title.
``613. Access of foreign creditors to a case under this title.
``614. Notification to foreign creditors concerning a case under this 
                            title.
    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``615. Application for recognition of a foreign proceeding.
``616. Presumptions concerning recognition.
``617. Order recognizing a foreign proceeding.
``618. Subsequent information.
``619. Relief that may be granted upon petition for recognition of a 
                            foreign proceeding.
``620. Effects of recognition of a foreign main proceeding.
``621. Relief that may be granted upon recognition of a foreign 
                            proceeding.
``622. Protection of creditors and other interested persons.
``623. Actions to avoid acts detrimental to creditors.
``624. Intervention by a foreign representative.
     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``625. Cooperation and direct communication between the court and 
                            foreign courts or foreign representatives.
``626. Cooperation and direct communication between the trustee and 
                            foreign courts or foreign representatives.
``627. Forms of cooperation.
                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``628. Commencement of a case under this title after recognition of a 
                            foreign main proceeding.
``629. Coordination of a case under this title and a foreign 
                            proceeding.
``630. Coordination of more than 1 foreign proceeding.
``631. Presumption of insolvency based on recognition of a foreign main 
                            proceeding.
``632. Rule of payment in concurrent proceedings.
``Sec. 601. Purpose and scope of application
    ``(a) The purpose of this chapter is to incorporate the Model Law 
on Cross-Border Insolvency so as to provide effective mechanisms for 
dealing with cases of cross-border insolvency with the objectives of--
            ``(1) cooperation between--
                    ``(A) United States courts, United States Trustees, 
                trustees, examiners, debtors, and debtors in 
                possession; and
                    ``(B) the courts and other competent authorities of 
                foreign countries involved in cross-border insolvency 
                cases;
            ``(2) greater legal certainty for trade and investment;
            ``(3) fair and efficient administration of cross-border 
        insolvencies that protects the interests of all creditors, and 
        other interested entities, including the debtor;
            ``(4) protection and maximization of the value of the 
        debtor's assets; and
            ``(5) facilitation of the rescue of financially troubled 
        businesses, thereby protecting investment and preserving 
        employment.
    ``(b) This chapter applies where--
            ``(1) assistance is sought in the United States by a 
        foreign court or a foreign representative in connection with a 
        foreign proceeding;
            ``(2) assistance is sought in a foreign country in 
        connection with a case under this title;
            ``(3) a foreign proceeding and a case under this title with 
        respect to the same debtor are taking place concurrently; or
            ``(4) creditors or other interested persons in a foreign 
        country have an interest in requesting the commencement of, or 
        participating in, a case or proceeding under this title.
    ``(c) This chapter does not apply to--
            ``(1) a proceeding concerning an entity identified by 
        exclusion in subsection 109(b);
            ``(2) an individual, or to an individual and such 
        individual's spouse, who have debts within the limits specified 
        in under section 109(e) and who are citizens of the United 
        States or aliens lawfully admitted for permanent residence in 
        the United States; or
            ``(3) an entity subject to a proceeding under the 
        Securities Investor Protection Act, a stockbroker subject to 
        subchapter III of chapter 7 of this title, or a commodity 
        broker subject to subchapter IV of chapter 7 of this title.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 602. Definitions
    ``For the purposes of this chapter, the term--
            ``(1) `debtor' means an entity that is the subject of a 
        foreign proceeding;
            ``(2) `establishment' means any place of operations where 
        the debtor carries out a nontransitory economic activity;
            ``(3) `foreign court' means a judicial or other authority 
        competent to control or supervise a foreign proceeding;
            ``(4) `foreign main proceeding' means a foreign proceeding 
        taking place in the country where the debtor has the center of 
        its main interests;
            ``(5) `foreign nonmain proceeding' means a foreign 
        proceeding, other than a foreign main proceeding, taking place 
        in a country where the debtor has an establishment;
            ``(6) `trustee' includes a trustee, a debtor in possession 
        in a case under any chapter of this title, or a debtor under 
        chapters 9 or 13 of this title; and
            ``(7) `within the territorial jurisdiction of the United 
        States' when used with reference to property of a debtor refers 
        to tangible property located within the territory of the United 
        States and intangible property deemed under applicable 
        nonbankruptcy law to be located within that territory, 
        including any property subject to attachment or garnishment 
        that may properly be seized or garnished by an action in a 
        Federal or State court in the United States.
``Sec. 603. International obligations of the United States
    ``To the extent that this chapter conflicts with an obligation of 
the United States arising out of any treaty or other form of agreement 
to which it is a party with 1 or more other countries, the requirements 
of the treaty or agreement prevail.
``Sec. 604. Commencement of ancillary case
    ``A case under this chapter is commenced by the filing of a 
petition for recognition of a foreign proceeding under section 615.
``Sec. 605. Authorization to act in a foreign country
    ``A trustee or another entity (including an examiner) authorized by 
the court may be authorized by the court to act in a foreign country on 
behalf of an estate created under section 541. An entity authorized to 
act under this section may act in any way permitted by the applicable 
foreign law.
``Sec. 606. Public policy exception
    ``Nothing in this chapter prevents the court from refusing to take 
an action governed by this chapter if the action would be manifestly 
contrary to the public policy of the United States.
``Sec. 607. Additional assistance
    ``(a) Subject to the specific limitations stated elsewhere in this 
chapter the court, upon recognition of a foreign proceeding, to provide 
additional assistance to a foreign representative under this title or 
under other laws of the United States.
    ``(b) In determining whether to provide additional assistance under 
this title or under other laws of the United States, the court shall 
consider whether such additional assistance, consistent with the 
principles of comity, will reasonably assure--
            ``(1) just treatment of all holders of claims against or 
        interests in the debtor's property;
            ``(2) protection of claim holders in the United States 
        against prejudice and inconvenience in the processing of claims 
        in such foreign proceeding;
            ``(3) prevention of preferential or fraudulent dispositions 
        of property of the debtor;
            ``(4) distribution of proceeds of the debtor's property 
        substantially in accordance with the order prescribed by this 
        title; and
            ``(5) if appropriate, the provision of an opportunity for a 
        fresh start for the individual that such foreign proceeding 
        concerns.
``Sec. 608. Interpretation
    ``In interpreting this chapter, the court shall consider its 
international origin, and the need to promote an application of this 
chapter that is consistent with the application of similar statutes 
adopted by foreign jurisdictions.

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

``Sec. 609. Right of direct access
    ``(a) A foreign representative is entitled to commence a case under 
section 604 by filing a petition for recognition under section 615, and 
upon recognition, to apply directly to other Federal and State courts 
for appropriate relief in those courts.
    ``(b) Upon recognition, and subject to section 610, a foreign 
representative has the capacity to sue and be sued, and shall be 
subject to the laws of the United States of general applicability.
    ``(c) Subject to section 610 of this title, a foreign 
representative is subject to laws of general application.
    ``(d) Recognition under this chapter is prerequisite to the 
granting of comity or cooperation to a foreign representative in any 
State or Federal court in the United States. Any request for comity or 
cooperation by a foreign representative in any court shall be 
accompanied by a sworn statement setting forth whether recognition 
under section 615 has been sought and the status of any such petition.
    ``(e) Upon denial of recognition under this chapter, the court may 
issue appropriate orders necessary to prevent an attempt to obtain 
comity or cooperation from courts in the United States without such 
recognition.
``Sec. 610. Limited jurisdiction
    ``The sole fact that a foreign representative files a petition 
under section 615 does not subject the foreign representative to the 
jurisdiction of any court in the United States for any other purpose.
``Sec. 611. Commencement of case under section 301 or 303
    ``(a) Upon recognition, a foreign representative may commence--
            ``(1) an involuntary case under section 303; or
            ``(2) a voluntary case under section 301 or 302, if the 
        foreign proceeding is a foreign main proceeding.
    ``(b) The petition commencing a case under subsection (a) of this 
section must be accompanied by a statement describing the petition for 
recognition and its current status. The court where the petition for 
recognition has been filed must be advised of the foreign 
representative's intent to commence a case under subsection (a) of this 
section prior to such commencement.
``Sec. 612. Participation of a foreign representative in a case under 
              this title
    ``Upon recognition of a foreign proceeding, the foreign 
representative in that proceeding is entitled to participate as a party 
in interest in a case regarding the debtor under this title.
``Sec. 613. Access of foreign creditors to a case under this title
    ``(a) Foreign creditors have the same rights regarding the 
commencement of, and participation in, a case under this title as 
domestic creditors.
    ``(b)(1) Subsection (a) of this section does not change or codify 
present law as to the priority of claims under section 507 or 726 of 
this title, except that the claim of a foreign creditor under those 
sections shall not be given a lower priority than that of general 
unsecured claims without priority solely because the holder of such 
claim is a foreign creditor.
    ``(2)(A) Subsection (a) of this section and paragraph (1) of this 
subsection do not change or codify present law as to the allowability 
of foreign revenue claims or other foreign public law claims in a 
proceeding under this title.
    ``(B) Allowance and priority as to a foreign tax claim or other 
foreign public law claim shall be governed by any applicable tax treaty 
of the United States, under the conditions and circumstances specified 
therein.
``Sec. 614. Notification to foreign creditors concerning a case under 
              this title
    ``(a) Whenever in a case under this title notice is to be given to 
creditors generally or to any class or category of creditors, such 
notice shall also be given to the known creditors generally, or to 
creditors in the notified class or category, that do not have addresses 
in the United States. The court may order that appropriate steps be 
taken with a view to notifying any creditor whose address is not yet 
known.
    ``(b) Such notification to creditors with foreign addresses 
described in subsection (a) shall be given individually, unless the 
court considers that, under the circumstances, some other form of 
notification would be more appropriate. No letters rogatory or other 
similar formality is required.
    ``(c) When a notification of commencement of a case is to be given 
to foreign creditors, the notification shall--
            ``(1) indicate the time period for filing proofs of claim 
        and specify the place for their filing;
            ``(2) indicate whether secured creditors need to file their 
        proofs of claim; and
            ``(3) contain any other information required to be included 
        in such a notification to creditors pursuant to this title and 
        the orders of the court.
    ``(d) Any rule of procedure or order of the court as to notice or 
the filing of a claim shall provide such additional time to creditors 
with foreign addresses as is reasonable under the circumstances.

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

``Sec. 615. Application for recognition of a foreign proceeding
    ``(a) A foreign representative applies to the court for recognition 
of the foreign proceeding in which the foreign representative has been 
appointed by filing a petition for recognition.
    ``(b) A petition for recognition shall be accompanied by--
            ``(1) a certified copy of the decision commencing the 
        foreign proceeding and appointing the foreign representative;
            ``(2) a certificate from the foreign court affirming the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative; or
            ``(3) in the absence of evidence referred to in paragraphs 
        (1) and (2), any other evidence acceptable to the court of the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative.
    ``(c) A petition for recognition shall also be accompanied by a 
statement identifying all foreign proceedings with respect to the 
debtor that are known to the foreign representative.
    ``(d) The documents referred to in paragraphs (1) and (2) of 
subsection (b) must be translated into English. The court may require a 
translation into English of additional documents.
``Sec. 616. Presumptions concerning recognition
    ``(a) If the decision or certificate referred to in section 615(b) 
indicates that the foreign proceeding is a foreign proceeding within 
the meaning of section 101(23) and that the person or body is a foreign 
representative within the meaning of section 101(24), the court is 
entitled to so presume.
    ``(b) The court is entitled to presume that documents submitted in 
support of the petition for recognition are authentic, whether or not 
they have been legalized.
    ``(c) In the absence of evidence to the contrary, the debtor's 
registered office, or habitual residence in the case of an individual, 
is presumed to be the center of the debtor's main interests.
``Sec. 617. Order recognizing a foreign proceeding
    ``(a) Subject to section 606, after notice and a hearing an order 
recognizing a foreign proceeding shall be entered if--
            ``(1) the foreign proceeding is a foreign main proceeding 
        or foreign nonmain proceeding within the meaning of section 
        602;
            ``(2) the foreign representative applying for recognition 
        is a person or body within the meaning of section 101(24); and
            ``(3) the petition meets the requirements of section 615.
    ``(b) The foreign proceeding shall be recognized--
            ``(1) as a foreign main proceeding if it is taking place in 
        the country where the debtor has the center of its main 
        interests; or
            ``(2) as a foreign nonmain proceeding if the debtor has an 
        establishment within the meaning of section 602 in the foreign 
        country where the proceeding is pending.
    ``(c) A petition for recognition of a foreign proceeding shall be 
decided upon at the earliest possible time. Entry of an order 
recognizing a foreign proceeding shall constitute recognition under 
this chapter.
    ``(d) The provisions of this subchapter do not prevent modification 
or termination of recognition if it is shown that the grounds for 
granting it were fully or partially lacking or have ceased to exist, 
but in considering such action the court shall give due weight to 
possible prejudice to parties that have relied upon the granting of 
recognition. The case under this chapter may be closed in the manner 
prescribed for a case under section 350.
``Sec. 618. Subsequent information
    ``From the time of filing the petition for recognition of the 
foreign proceeding, the foreign representative shall file with the 
court promptly a notice of change of status concerning--
            ``(1) any substantial change in the status of the foreign 
        proceeding or the status of the foreign representative's 
        appointment; and
            ``(2) any other foreign proceeding regarding the debtor 
        that becomes known to the foreign representative.
``Sec. 619. Relief that may be granted upon petition for recognition of 
              a foreign proceeding
    ``(a) From the time of filing a petition for recognition until the 
petition is decided upon, the court may, at the request of the foreign 
representative, where relief is urgently needed to protect the assets 
of the debtor or the interests of the creditors, grant relief of a 
provisional nature, including--
            ``(1) staying execution against the debtor's assets;
            ``(2) entrusting the administration or realization of all 
        or part of the debtor's assets located in the United States to 
        the foreign representative or another person authorized by the 
        court, including an examiner, in order to protect and preserve 
        the value of assets that, by their nature or because of other 
        circumstances, are perishable, susceptible to devaluation or 
        otherwise in jeopardy; and
            ``(3) any relief referred to in paragraph (3), (4), or (7) 
        of section 621(a).
    ``(b) Unless extended under section 621(a)(6), the relief granted 
under this section terminates when the petition for recognition is 
decided upon.
    ``(c) It is a ground for denial of relief under this section that 
such relief would interfere with the administration of a foreign main 
proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under this section.
``Sec. 620. Effects of recognition of a foreign main proceeding
    ``(a) Upon recognition of a foreign proceeding that is a foreign 
main proceeding--
            ``(1) section 362 applies with respect to the debtor and 
        that property of the debtor that is within the territorial 
        jurisdiction of the United States; and
            ``(2) transfer, encumbrance, or any other disposition of an 
        interest of the debtor in property within the territorial 
        jurisdiction of the United States is restrained as and to the 
        extent that is provided for property of an estate under 
        sections 363, 549, and 552.
Unless the court orders otherwise, the foreign representative may 
operate the debtor's business and may exercise the powers of a trustee 
under section 549, subject to sections 363 and 552.
    ``(b) The scope, and the modification or termination, of the stay 
and restraints referred to in subsection (a) of this section are 
subject to the exceptions and limitations provided in subsections (b), 
(c), and (d) of section 362, subsections (b) and (c) of section 363, 
and sections 552, 555 through 557, 559, and 560.
    ``(c) Subsection (a) of this section does not affect the right to 
commence individual actions or proceedings in a foreign country to the 
extent necessary to preserve a claim against the debtor.
    ``(d) Subsection (a) of this section does not affect the right of a 
foreign representative or an entity to file a petition commencing a 
case under this title or the right of any party to file claims or take 
other proper actions in such a case.
``Sec. 621. Relief that may be granted upon recognition of a foreign 
              proceeding
    ``(a) Upon recognition of a foreign proceeding, whether main or 
nonmain, where necessary to effectuate the purpose of this chapter and 
to protect the assets of the debtor or the interests of the creditors, 
the court may, at the request of the foreign representative, grant any 
appropriate relief, including--
            ``(1) staying the commencement or continuation of 
        individual actions or individual proceedings concerning the 
        debtor's assets, rights, obligations or liabilities to the 
        extent they have not been stayed under section 620(a);
            ``(2) staying execution against the debtor's assets to the 
        extent it has not been stayed under section 620(a);
            ``(3) suspending the right to transfer, encumber or 
        otherwise dispose of any assets of the debtor to the extent 
        this right has not been suspended under section 620(a);
            ``(4) providing for the examination of witnesses, the 
        taking of evidence or the delivery of information concerning 
        the debtor's assets, affairs, rights, obligations or 
        liabilities;
            ``(5) entrusting the administration or realization of all 
        or part of the debtor's assets within the territorial 
        jurisdiction of the United States to the foreign representative 
        or another person, including an examiner, authorized by the 
        court;
            ``(6) extending relief granted under section 619(a); and
            ``(7) granting any additional relief that may be available 
        to a trustee, except for relief available under sections 522, 
        544, 545, 547, 548, 550, and 724(a).
    ``(b) Upon recognition of a foreign proceeding, whether main or 
nonmain, the court may, at the request of the foreign representative, 
entrust the distribution of all or part of the debtor's assets located 
in the United States to the foreign representative or another person, 
including an examiner, authorized by the court, provided that the court 
is satisfied that the interests of creditors in the United States are 
sufficiently protected.
    ``(c) In granting relief under this section to a representative of 
a foreign nonmain proceeding, the court must be satisfied that the 
relief relates to assets that, under the law of the United States, 
should be administered in the foreign nonmain proceeding or concerns 
information required in that proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under paragraphs (1), (2), (3), and 
(6) of subsection (a).
``Sec. 622. Protection of creditors and other interested persons
    ``(a) The court may grant relief under section 619 or 621, or may 
modify or terminate relief under subsection (c) of this section, only 
if the interests of the creditors and other interested persons or 
entities, including the debtor, are sufficiently protected.
    ``(b) The court may subject relief granted under section 619 or 
621, or the operation of the debtor's business under section 620(a)(2) 
of this title, to conditions it considers appropriate, including the 
giving of security or the filing of a bond.
    ``(c) The court may, at the request of the foreign representative 
or an entity affected by relief granted under section 619 or 621, or at 
its own motion, modify or terminate such relief.
    ``(d) Section 1104(d) shall apply to the appointment of an examiner 
under this chapter. Any examiner shall comply with the qualification 
requirements imposed on a trustee by section 322.
``Sec. 623. Actions to avoid acts detrimental to creditors
    ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a pending case under another chapter of 
this title to initiate actions under sections 522, 544, 545, 547, 548, 
550, and 724(a).
    ``(b) When the foreign proceeding is a foreign nonmain proceeding, 
the court must be satisfied that an action under subsection (a) of this 
section relates to assets that, under United States law, should be 
administered in the foreign nonmain proceeding.
``Sec. 624. Intervention by a foreign representative
    ``Upon recognition of a foreign proceeding, the foreign 
representative may intervene in any proceedings in a State or Federal 
court in the United States in which the debtor is a party.

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

``Sec. 625. Cooperation and direct communication between the court and 
              foreign courts or foreign representatives
    ``(a) Consistent with section 601, the court shall cooperate to the 
maximum extent possible with foreign courts or foreign representatives, 
either directly or through the trustee.
    ``(b) The court is entitled to communicate directly with, or to 
request information or assistance directly from, foreign courts or 
foreign representatives, subject to the rights of parties in interest 
to notice and participation.
``Sec. 626. Cooperation and direct communication between the trustee 
              and foreign courts or foreign representatives
    ``(a) Consistent with section 601, the trustee or other person, 
including an examiner, authorized by the court, shall, subject to the 
supervision of the court, cooperate to the maximum extent possible with 
foreign courts or foreign representatives.
    ``(b) The trustee or other person, including an examiner, 
authorized by the court is entitled, subject to the supervision of the 
court, to communicate directly with foreign courts or foreign 
representatives.
``Sec. 627. Forms of cooperation
    ``Cooperation referred to in sections 625 and 626 may be 
implemented by any appropriate means, including--
            ``(1) appointment of a person or body, including an 
        examiner, to act at the direction of the court;
            ``(2) communication of information by any means considered 
        appropriate by the court;
            ``(3) coordination of the administration and supervision of 
        the debtor's assets and affairs;
            ``(4) approval or implementation of agreements concerning 
        the coordination of proceedings; and
            ``(5) coordination of concurrent proceedings regarding the 
        same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``Sec. 628. Commencement of a case under this title after recognition 
              of a foreign main proceeding
    ``After recognition of a foreign main proceeding, a case under 
another chapter of this title may be commenced only if the debtor has 
assets in the United States. The effects of that case shall be 
restricted to the assets of the debtor that are within the territorial 
jurisdiction of the United States and, to the extent necessary to 
implement cooperation and coordination under sections 625, 626, and 
627, to other assets of the debtor that are within the jurisdiction of 
the court under sections 541(a) of this title, and 1334(e) of title 28, 
to the extent that such other assets are not subject to the 
jurisdiction and control of a foreign proceeding that has been 
recognized under this chapter.
``Sec. 629. Coordination of a case under this title and a foreign 
              proceeding
    ``Where a foreign proceeding and a case under another chapter of 
this title are taking place concurrently regarding the same debtor, the 
court shall seek cooperation and coordination under sections 625, 626, 
and 627, and the following shall apply:
            ``(1) When the case in the United States is taking place at 
        the time the petition for recognition of the foreign proceeding 
        is filed--
                    ``(A) any relief granted under sections 619 or 621 
                must be consistent with the relief granted in the case 
                in the United States; and
                    ``(B) even if the foreign proceeding is recognized 
                as a foreign main proceeding, section 620 does not 
                apply.
            ``(2) When a case in the United States under this title 
        commences after recognition, or after the filing of the 
        petition for recognition, of the foreign proceeding--
                    ``(A) any relief in effect under sections 619 or 
                621 shall be reviewed by the court and shall be 
                modified or terminated if inconsistent with the case in 
                the United States; and
                    ``(B) if the foreign proceeding is a foreign main 
                proceeding, the stay and suspension referred to in 
                section 620(a) shall be modified or terminated if 
                inconsistent with the relief granted in the case in the 
                United States.
            ``(3) In granting, extending, or modifying relief granted 
        to a representative of a foreign nonmain proceeding, the court 
        must be satisfied that the relief relates to assets that, under 
        the law of the United States, should be administered in the 
        foreign nonmain proceeding or concerns information required in 
        that proceeding.
            ``(4) In achieving cooperation and coordination under 
        sections 628 and 629, the court may grant any of the relief 
        authorized under section 305.
``Sec. 630. Coordination of more than 1 foreign proceeding
    ``In matters referred to in section 601, with respect to more than 
1 foreign proceeding regarding the debtor, the court shall seek 
cooperation and coordination under sections 625, 626, and 627, and the 
following shall apply:
            ``(1) Any relief granted under section 619 or 621 to a 
        representative of a foreign nonmain proceeding after 
        recognition of a foreign main proceeding must be consistent 
        with the foreign main proceeding.
            ``(2) If a foreign main proceeding is recognized after 
        recognition, or after the filing of a petition for recognition, 
        of a foreign nonmain proceeding, any relief in effect under 
        section 619 or 621 shall be reviewed by the court and shall be 
        modified or terminated if inconsistent with the foreign main 
        proceeding.
            ``(3) If, after recognition of a foreign nonmain 
        proceeding, another foreign nonmain proceeding is recognized, 
        the court shall grant, modify, or terminate relief for the 
        purpose of facilitating coordination of the proceedings.
``Sec. 631. Presumption of insolvency based on recognition of a foreign 
              main proceeding
    ``In the absence of evidence to the contrary, recognition of a 
foreign main proceeding is for the purpose of commencing a proceeding 
under section 303, proof that the debtor is generally not paying its 
debts.
``Sec. 632. Rule of payment in concurrent proceedings
    ``Without prejudice to secured claims or rights in rem, a creditor 
who has received payment with respect to its claim in a foreign 
proceeding pursuant to a law relating to insolvency may not receive a 
payment for the same claim in a case under any other chapter of this 
title regarding the debtor, so long as the payment to other creditors 
of the same class is proportionately less than the payment the creditor 
has already received.''.
    (b) Clerical Amendment.--The table of chapters for title 11, United 
States Code, is amended by inserting after the item relating to chapter 
5 the following:

``6. Ancillary and Other Cross-Border Cases.................     601''.

SEC. 602. AMENDMENTS TO OTHER CHAPTERS IN TITLE 11, UNITED STATES CODE.

    (a) Applicability of Chapters.--Section 103 of title 11, United 
States Code, is amended--
            (1) in subsection (a), by inserting before the period the 
        following: ``and this chapter, sections 307, 555 through 557, 
        559, and 560 apply in a case under chapter 6''; and
            (2) by adding at the end the following:
    ``(j) Chapter 6 applies only in a case under that chapter, except 
that section 605 applies to trustees and to any other entity authorized 
by the court, including an examiner, under chapters 7, 11, and 12, to 
debtors in possession under chapters 11 and 12, and to debtors or 
trustees under chapters 9 and 13 who are authorized to act under 
section 605.''.
    (b) Definitions.--Section 101 of title 11, United States Code, is 
amended by striking paragraphs (23) and (24) and inserting the 
following:
            ``(23) `foreign proceeding' means a collective judicial or 
        administrative proceeding in a foreign state, including an 
        interim proceeding, pursuant to a law relating to insolvency in 
        which proceeding the assets and affairs of the debtor are 
        subject to control or supervision by a foreign court, for the 
        purpose of reorganization or liquidation;
            ``(24) `foreign representative' means a person or body, 
        including a person or body appointed on an interim basis, 
        authorized in a foreign proceeding to administer the 
        reorganization or the liquidation of the debtor's assets or 
        affairs or to act as a representative of the foreign 
        proceeding;''.
    (c) Amendments to Title 28, United States Code.--
            (1) Procedures.--Section 157(b)(2) of title 28, United 
        States Code, is amended--
                    (A) in subparagraph (N), by striking ``and'' at the 
                end;
                    (B) in subparagraph (O), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(P) recognition of foreign proceedings and other matters 
        under chapter 6 of title 11.''.
            (2) Bankruptcy cases and proceedings.--Section 1334(c)(1) 
        of title 28, United States Code, is amended by striking 
        ``Nothing in'' and inserting ``Except with respect to a case 
        under chapter 6 of title 11, nothing in''.
            (3) Duties of trustees.--Section 586(a)(3) of title 28, 
        United States Code, is amended by inserting ``6,'' after 
        ``chapter''.

                        TITLE VII--MISCELLANEOUS

SEC. 701. 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. 702. APPLICATION OF AMENDMENTS.

    Except as otherwise provided in this Act, the amendments made by 
this 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.

            Passed the House of Representatives June 10, 1998.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.