[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 625 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 625

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 16, 1999

Mr. Grassley (for himself, Mr. Torricelli, Mr. Biden, and Mr. Sessions) 
introduced the following bill; which was read twice and referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
     To amend title 11, 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 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--NEEDS-BASED BANKRUPTCY

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Notice of alternatives.
Sec. 104. Debtor financial management training test program.
Sec. 105. Credit counseling.
                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

Sec. 201. Promotion of alternative dispute resolution.
Sec. 202. Effect of discharge.
Sec. 203. Violations of the automatic stay.
Sec. 204. Discouraging abuse of reaffirmation practices.
                   Subtitle B--Priority Child Support

Sec. 211. Priorities for claims for domestic support obligations.
Sec. 212. Requirements to obtain confirmation and discharge in cases 
                            involving domestic support obligations.
Sec. 213. Exceptions to automatic stay in domestic support obligation 
                            proceedings.
Sec. 214. Nondischargeability of certain debts for alimony, 
                            maintenance, and support.
Sec. 215. Continued liability of property.
Sec. 216. Protection of domestic support claims against preferential 
                            transfer motions.
Sec. 217. Amendment to section 1325 of title 11, United States Code.
Sec. 218. Definition of domestic support obligation.
Sec. 219. Collection of child support.
                 Subtitle C--Other Consumer Protections

Sec. 221. Definitions.
Sec. 222. Disclosures.
Sec. 223. Debtor's bill of rights.
Sec. 224. Enforcement.
Sec. 225. Sense of Congress.
Sec. 226. Additional amendments to title 11, United States Code.
                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

Sec. 301. Reinforcement of the fresh start.
Sec. 302. Discouraging bad faith repeat filings.
Sec. 303. Curbing abusive filings.
Sec. 304. Debtor retention of personal property security.
Sec. 305. Relief from the automatic stay when the debtor does not 
                            complete intended surrender of consumer 
                            debt collateral.
Sec. 306. Giving secured creditors fair treatment in chapter 13.
Sec. 307. Exemptions.
Sec. 308. Residency requirement for homestead exemption.
Sec. 309. Protecting secured creditors in chapter 13 cases.
Sec. 310. Limitation on luxury goods.
Sec. 311. Automatic stay.
Sec. 312. Extension of period between bankruptcy discharges.
Sec. 313. Definition of household goods and antiques.
Sec. 314. Debt incurred to pay nondischargeable debts.
Sec. 315. Giving creditors fair notice in chapters 7 and 13 cases.
Sec. 316. Dismissal for failure to timely file schedules or provide 
                            required information.
Sec. 317. Adequate time to prepare for hearing on confirmation of the 
                            plan.
Sec. 318. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 319. Sense of the Congress regarding expansion of rule 9011 of the 
                            Federal Rules of Bankruptcy Procedure.
Sec. 320. Prompt relief from stay in individual cases.
       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

Sec. 401. Rolling stock equipment.
Sec. 402. Adequate protection for investors.
Sec. 403. Meetings of creditors and equity security holders.
Sec. 404. Protection of refinance of security interest.
Sec. 405. Executory contracts and unexpired leases.
Sec. 406. Creditors and equity security holders committees.
Sec. 407. Amendment to section 546 of title 11, United States Code.
Sec. 408. Limitation.
Sec. 409. Amendment to section 330(a) of title 11, United States Code.
Sec. 410. Postpetition disclosure and solicitation.
Sec. 411. Preferences.
Sec. 412. Venue of certain proceedings.
Sec. 413. Period for filing plan under chapter 11.
Sec. 414. Fees arising from certain ownership interests.
Sec. 415. Creditor representation at first meeting of creditors.
Sec. 416. Elimination of certain fees payable in chapter 11 bankruptcy 
                            cases.
Sec. 417. Definition of disinterested person.
Sec. 418. Factors for compensation of professional persons.
Sec. 419. Appointment of elected trustee.
            Subtitle B--Small Business Bankruptcy Provisions

Sec. 421. Flexible rules for disclosure statement and plan.
Sec. 422. Definitions; effect of discharge.
Sec. 423. Standard form disclosure statement and plan.
Sec. 424. Uniform national reporting requirements.
Sec. 425. Uniform reporting rules and forms for small business cases.
Sec. 426. Duties in small business cases.
Sec. 427. Plan filing and confirmation deadlines.
Sec. 428. Plan confirmation deadline.
Sec. 429. Prohibition against extension of time.
Sec. 430. Duties of the United States trustee.
Sec. 431. Scheduling conferences.
Sec. 432. Serial filer provisions.
Sec. 433. Expanded grounds for dismissal or conversion and appointment 
                            of trustee.
Sec. 434. Study of operation of title 11, United States Code, with 
                            respect to small businesses.
Sec. 435. Payment of interest.
                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.
           TITLE VI--IMPROVED BANKRUPTCY STATISTICS AND DATA

Sec. 601. Audit procedures.
Sec. 602. Improved bankruptcy statistics.
Sec. 603. Uniform rules for the collection of bankruptcy data.
Sec. 604. Sense of Congress regarding availability of bankruptcy data.
                  TITLE VII--BANKRUPTCY TAX PROVISIONS

Sec. 701. Treatment of certain liens.
Sec. 702. Effective notice to government.
Sec. 703. Notice of request for a determination of taxes.
Sec. 704. Rate of interest on tax claims.
Sec. 705. Tolling of priority of tax claim time periods.
Sec. 706. Priority property taxes incurred.
Sec. 707. Chapter 13 discharge of fraudulent and other taxes.
Sec. 708. Chapter 11 discharge of fraudulent taxes.
Sec. 709. Stay of tax proceedings.
Sec. 710. Periodic payment of taxes in chapter 11 cases.
Sec. 711. Avoidance of statutory tax liens prohibited.
Sec. 712. Payment of taxes in the conduct of business.
Sec. 713. Tardily filed priority tax claims.
Sec. 714. Income tax returns prepared by tax authorities.
Sec. 715. Discharge of the estate's liability for unpaid taxes.
Sec. 716. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 717. Standards for tax disclosure.
Sec. 718. Setoff of tax refunds.
           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 801. Amendment to add chapter 15 to title 11, United States Code.
Sec. 802. Amendments to other chapters in title 11, United States Code.
Sec. 803. Claims relating to insurance deposits in cases ancillary to 
                            foreign proceedings.
                TITLE IX--FINANCIAL CONTRACT PROVISIONS

Sec. 901. Bankruptcy Code amendments.
Sec. 902. Damage measure.
Sec. 903. Asset-backed securitizations.
Sec. 904. Effective date; application of amendments.
                 TITLE X--PROTECTION OF FAMILY FARMERS

Sec. 1001. Reenactment of chapter 12.
Sec. 1002. Debt limit increase.
Sec. 1003. Elimination of requirement that family farmer and spouse 
                            receive over 50 percent of income from 
                            farming operation in year prior to 
                            bankruptcy.
Sec. 1004. Certain claims owed to governmental units.
              TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

Sec. 1101. Definitions.
Sec. 1102. Disposal of patient records.
Sec. 1103. Administrative expense claim for costs of closing a health 
                            care business.
Sec. 1104. Appointment of ombudsman to act as patient advocate.
Sec. 1105. Debtor in possession; duty of trustee to transfer patients.
                    TITLE XII--TECHNICAL AMENDMENTS

Sec. 1201. Definitions.
Sec. 1202. Adjustment of dollar amounts.
Sec. 1203. Extension of time.
Sec. 1204. Technical amendments.
Sec. 1205. Penalty for persons who negligently or fraudulently prepare 
                            bankruptcy petitions.
Sec. 1206. Limitation on compensation of professional persons.
Sec. 1207. Special tax provisions.
Sec. 1208. Effect of conversion.
Sec. 1209. Allowance of administrative expenses.
Sec. 1210. Priorities.
Sec. 1211. Exemptions.
Sec. 1212. Exceptions to discharge.
Sec. 1213. Effect of discharge.
Sec. 1214. Protection against discriminatory treatment.
Sec. 1215. Property of the estate.
Sec. 1216. Preferences.
Sec. 1217. Postpetition transactions.
Sec. 1218. Disposition of property of the estate.
Sec. 1219. General provisions.
Sec. 1220. Abandonment of railroad line.
Sec. 1221. Contents of plan.
Sec. 1222. Discharge under chapter 12.
Sec. 1223. Bankruptcy cases and proceedings.
Sec. 1224. Knowing disregard of bankruptcy law or rule.
Sec. 1225. Transfers made by nonprofit charitable corporations.
Sec. 1226. Protection of valid purchase money security interests.
Sec. 1227. Extensions.
Sec. 1228. Bankruptcy judgeships.
     TITLE XIII--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 1301. Effective date; application of amendments.

                    TITLE I--NEEDS-BASED BANKRUPTCY

SEC. 101. CONVERSION.

    Section 706(c) of title 11, United States Code, is amended by 
inserting ``or consents to'' after ``requests''.

SEC. 102. DISMISSAL OR CONVERSION.

    (a) In General.--Section 707 of title 11, United States Code, is 
amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 707. Dismissal of a case or conversion to a case under chapter 
              13'';
        and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) in paragraph (1), as redesignated by 
                subparagraph (A) of this paragraph--
                            (i) in the first sentence--
                                    (I) by striking ``but not at the 
                                request or suggestion'' and inserting 
                                ``, panel trustee or'';
                                    (II) by inserting ``, or, with the 
                                debtor's consent, convert such a case 
                                to a case under chapter 13 of this 
                                title,'' after ``consumer debts''; and
                                    (III) by striking ``substantial 
                                abuse'' and inserting ``abuse''; and
                            (ii) by striking the next to last sentence; 
                        and
                    (C) by adding at the end the following:
    ``(2)(A)(i) In considering under paragraph (1) whether the granting 
of relief would be an abuse of the provisions of this chapter, the 
court shall presume abuse exists if the debtor's current monthly income 
reduced by the amounts determined under clauses (ii), (iii), and (iv), 
and multiplied by 60 is not less than the lesser of--
            ``(I) 25 percent of the debtor's nonpriority unsecured 
        claims in the case; or
            ``(II) $15,000.
    ``(ii) The debtor's monthly expenses shall be the applicable 
monthly (excluding payments for debts) expenses under standards issued 
by the Internal Revenue Service for the area in which the debtor 
resides, as in effect on the date of the entry of the order for relief, 
for the debtor, the dependents of the debtor, and the spouse of the 
debtor in a joint case, if the spouse is not otherwise a dependent.
    ``(iii) The debtor's average monthly payments on account of secured 
debts shall be calculated as--
            ``(I) the total of all amounts scheduled as contractually 
        due to secured creditors in each month of the 60 months 
        following the date of the petition; divided by
            ``(II) 60.
    ``(iv) The debtor's expenses for payment of all priority claims 
(including priority child support and alimony claims) shall be 
calculated as--
            ``(I) the total amount of debts entitled to priority; 
        divided by
            ``(II) 60.
    ``(B)(i) In any proceeding brought under this subsection, the 
presumption of abuse may be rebutted by demonstrating special 
circumstances that justify additional expenses or adjustments of 
current monthly total income. In order to establish special 
circumstances, the debtor shall be required to--
            ``(I) itemize each additional expense or adjustment of 
        income; and
            ``(II) provide--
                    ``(aa) documentation for such expenses; and
                    ``(bb) a detailed explanation of the special 
                circumstances that make such expenses necessary and 
                reasonable.
    ``(ii) The debtor, and the attorney for the debtor if the debtor 
has an attorney, shall attest under oath to the accuracy of any 
information provided to demonstrate that additional expenses or 
adjustments to income are required.
    ``(iii) The presumption of abuse may be rebutted if the additional 
expenses or adjustments to income referred to in clause (i) cause the 
product of the debtor's current monthly income reduced by the amounts 
determined under clauses (ii), (iii), and (iv) of subparagraph (A) 
multiplied by 60 to be less than the lesser of--
            ``(I) 25 percent of the debtor's nonpriority unsecured 
        claims; or
            ``(II) $15,000.
    ``(C)(i) As part of the schedule of current income and expenditures 
required under section 521, the debtor shall include a statement of the 
debtor's current monthly income, and the calculations that determine 
whether a presumption arises under subparagraph (A)(i), that shows how 
each such amount is calculated.
    ``(ii) The Supreme Court shall promulgate rules under section 2075 
of title 28, that prescribe a form for a statement under clause (i) and 
may provide general rules on the content of the statement.
    ``(3) In considering under paragraph (1) whether the granting of 
relief would be an abuse of the provisions of this chapter in a case in 
which the presumption in subparagraph (A)(i) of such paragraph does not 
apply or has been rebutted, the court shall consider--
            ``(A) whether the debtor filed the petition in bad faith; 
        or
            ``(B) the totality of the circumstances (including whether 
        the debtor seeks to reject a personal services contract and the 
        financial need for such rejection as sought by the debtor) of 
        the debtor's financial situation demonstrates abuse.''.
    (b) Definition.--Title 11, United States Code, is amended--
            (1) in section 101, by inserting after paragraph (10) the 
        following:
            ``(10A) `current monthly income'--
                    ``(A) means the average monthly income from all 
                sources which the debtor, or in a joint case, the 
                debtor and the debtor's spouse, receive without regard 
                to whether the income is taxable income, derived during 
                the 180-day period preceding the date of determination; 
                and
                    ``(B) includes any amount paid by any entity other 
                than the debtor (or, in a joint case, the debtor and 
                the debtor's spouse), on a regular basis to the 
                household expenses of the debtor or the debtor's 
                dependents (and, in a joint case, the debtor's spouse 
                if not otherwise a dependent);''; and
            (2) in section 704--
                    (A) by inserting ``(a)'' before ``The trustee 
                shall--''; and
                    (B) by adding at the end the following:
    ``(b)(1) With respect to an individual debtor under this chapter--
            ``(A) the United States trustee or bankruptcy administrator 
        shall review all materials filed by the debtor and, not later 
        than 10 days before the first meeting of creditors, file with 
        the court a statement as to whether the debtor's case would be 
        presumed to be an abuse under section 707(b); and
            ``(B) not later than 5 days after receiving a statement 
        under subparagraph (A), the court shall provide a copy of the 
        statement to all creditors.
    ``(2) The United States trustee or bankruptcy administrator shall 
not later than 30 days after receiving a statement filed under 
paragraph (1) file a motion to dismiss or convert under section 707(b), 
or file a statement setting forth the reasons the United States trustee 
or bankruptcy administrator does not believe that such a motion would 
be appropriate. If, based on the filing of such statement with the 
court, the United States trustee or bankruptcy administrator determines 
that the debtor's case should be presumed to be an abuse under section 
707(b) and the product of the debtor's current monthly income, 
multiplied by 12 is not less than--
            ``(A) the highest national or applicable State median 
        family income reported for a family of equal or lesser size, 
        whichever is greater; or
            ``(B) in the case of a household of 1 person, the national 
        or applicable State median household income for 1 earner, 
        whichever is greater.
    ``(3)(A) The court shall order the counsel for the debtor to 
reimburse the panel trustee for all reasonable costs in prosecuting a 
motion brought under section 707(b), including reasonable attorneys' 
fees, if--
            ``(i) a panel trustee appointed under section 586(a)(1) of 
        title 28 brings a motion for dismissal or conversion under this 
        subsection; and
            ``(ii) the court--
                    ``(I) grants that motion; and
                    ``(II) finds that the action of the counsel for the 
                debtor in filing under this chapter was not 
                substantially justified.
    ``(B) If the court finds that the attorney for the debtor violated 
Rule 9011, at a minimum, the court shall order--
            ``(i) the assessment of an appropriate civil penalty 
        against the counsel for the debtor; and
            ``(ii) the payment of the civil penalty to the panel 
        trustee or the United States trustee.
    ``(C) In the case of a petition referred to in subparagraph (B), 
the signature of an attorney shall constitute a certificate that the 
attorney has--
            ``(i) performed a reasonable investigation into the 
        circumstances that gave rise to the petition; and
            ``(ii) determined that the petition--
                    ``(I) is well grounded in fact; and
                    ``(II) is warranted by existing law or a good faith 
                argument for the extension, modification, or reversal 
                of existing law and does not constitute an abuse under 
                paragraph (1).
    ``(4)(A) Except as provided in subparagraph (B) and subject to 
paragraph (5), the court may award a debtor all reasonable costs in 
contesting a motion brought by a party in interest (other than a panel 
trustee or United States trustee) under this subsection (including 
reasonable attorneys' fees) if--
            ``(i) the court does not grant the motion; and
            ``(ii) the court finds that--
                    ``(I) the position of the party that brought the 
                motion was not substantially justified; or
                    ``(II) the party brought the motion solely for the 
                purpose of coercing a debtor into waiving a right 
                guaranteed to the debtor under this title.
    ``(B) A party in interest that has a claim of an aggregate amount 
less than $1,000 shall not be subject to subparagraph (A).
    ``(5) Only the judge, United States trustee, bankruptcy 
administrator, or panel trustee may bring a motion under this section 
if the debtor and the debtor's spouse combined, as of the date of the 
order for relief, have a total current monthly income equal to or less 
than the national or applicable State median family monthly income 
calculated on a monthly basis for a family of equal size.''.
    (c) Clerical Amendment.--The table of sections for chapter 7 of 
title 11, United States Code, is amended by striking the item relating 
to section 707 and inserting the following:

``707. Dismissal of a case or conversion to a case under chapter 13.''.

SEC. 103. NOTICE OF ALTERNATIVES.

    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, that individual 
shall be given or obtain (as required in section 521(a)(1), as part of 
the certification process under subchapter I of chapter 5) a written 
notice prescribed by the United States trustee for the district in 
which the petition is filed under section 586 of title 28.
    ``(2) The notice shall contain the following:
            ``(A) A brief description of chapters 7, 11, 12, and 13 and 
        the general purpose, benefits, and costs of proceeding under 
        each of those chapters.
            ``(B) A brief description of services that may be available 
        to that individual from a credit counseling service that is 
        approved by the United States trustee for that district.''.

SEC. 104. 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--
            (1) consult with a wide range of individuals who are 
        experts in the field of debtor education, including trustees 
        who are appointed under chapter 13 of title 11, United States 
        Code, and who operate financial management education programs 
        for debtors; and
            (2) develop a financial management training curriculum and 
        materials that may be used to educate individual debtors 
        concerning how to better manage their finances.
    (b) Test.--
            (1) In general.--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) Availability of curriculum and materials.--For a 1-year 
        period beginning not later than 270 days after the date of 
        enactment of this Act, the curriculum and materials referred to 
        in paragraph (1) shall be made available by the Director, 
        directly or indirectly, on request to individual debtors in 
        cases filed during that 1-year period under chapter 7 or 13 of 
        title 11, United States Code.
    (c) Evaluation.--
            (1) In general.--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 issued on October 
                20, 1997, that are representative of consumer education 
programs carried out by--
                            (i) the credit industry;
                            (ii) trustees serving under chapter 13 of 
                        title 11, United States Code; and
                            (iii) consumer counseling groups.
            (2) Report.--Not later than 3 months after concluding the 
        evaluation under paragraph (1), 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 Congress, containing the findings of 
        the Director regarding the effectiveness of such curriculum, 
        such materials, and such programs.

SEC. 105. CREDIT COUNSELING.

    (a) Who May Be a Debtor.--Section 109 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(h)(1) Subject to paragraphs (2) and (3), and notwithstanding any 
other provision of this section, an individual may not be a debtor 
under this title unless that individual has, during the 90-day period 
preceding the date of filing of the petition of that individual, 
received from an approved nonprofit credit counseling service described 
in section 111(a) an individual or group briefing that outlined the 
opportunities for available credit counseling and assisted that 
individual in performing a related budget analysis.
    ``(2)(A) Paragraph (1) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of the bankruptcy court of that district determines that 
the approved nonprofit credit counseling services for that district are 
not reasonably able to provide adequate services to the additional 
individuals who would otherwise seek credit counseling from those 
programs by reason of the requirements of paragraph (1).
    ``(B) Each United States trustee or bankruptcy administrator that 
makes a determination described in subparagraph (A) shall review that 
determination not later than 1 year after the date of that 
determination, and not less frequently than every year thereafter.
    ``(3)(A) Subject to subparagraph (B), the requirements of paragraph 
(1) shall not apply with respect to a debtor who submits to the court a 
certification that--
            ``(i) describes exigent circumstances that merit a waiver 
        of the requirements of paragraph (1);
            ``(ii) states that the debtor requested credit counseling 
        services from an approved nonprofit credit counseling service, 
        but was unable to obtain the services referred to in paragraph 
        (1) during the 5-day period beginning on the date on which the 
        debtor made that request; and
            ``(iii) is satisfactory to the court.
    ``(B) With respect to a debtor, an exemption under subparagraph (A) 
shall cease to apply to that debtor on the date on which the debtor 
meets the requirements of paragraph (1), but in no case may the 
exemption apply to that debtor after the date that is 30 days after the 
debtor files a petition.''.
    (b) Chapter 7 Discharge.--Section 727(a) of title 11, United States 
Code, is amended--
            (1) in paragraph (9), by striking ``or'' at the end;
            (2) in paragraph (10), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(11) after the filing of the petition, the debtor failed 
        to complete an instructional course concerning personal 
        financial management described in section 111.''.
    (c) Chapter 13 Discharge.--Section 1328 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(g) The court shall not grant a discharge under this section to a 
debtor, unless after filing a petition the debtor has completed an 
instructional course concerning personal financial management described 
in section 111.
    ``(h) Subsection (g) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of the bankruptcy court of that district determines that 
the approved instructional courses are not adequate to service the 
additional individuals who would be required to complete the 
instructional course by reason of the requirements of this section.
    ``(i) Each United States trustee or bankruptcy administrator that 
makes a determination described in subsection (h) shall review that 
determination not later than 1 year after the date of that 
determination, and not less frequently than every year thereafter.''.
    (d) Debtor's Duties.--Section 521 of title 11, United States Code, 
is amended--
            (1) by inserting ``(a)'' before ``The debtor shall--''; and
            (2) by adding at the end the following:
    ``(b) In addition to the requirements under subsection (a), an 
individual debtor shall file with the court--
            ``(1) a certificate from the credit counseling service that 
        provided the debtor services under section 109(h); and
            ``(2) a copy of the debt repayment plan, if any, developed 
        under section 109(h) through the credit counseling service 
        referred to in paragraph (1).''.
    (e) General Provisions.--
            (1) In general.--Chapter 1 of title 11, United States Code, 
        is amended by adding at the end the following:
``Sec. 111. Credit counseling services; financial management 
              instructional courses
    ``(a) The clerk of each district shall maintain a list of credit 
counseling services that provide 1 or more programs described in 
section 109(h) and a list of instructional courses concerning personal 
financial management that have been approved by--
            ``(1) the United States trustee; or
            ``(2) the bankruptcy administrator for the district.''.
            (2) Clerical amendment.--The table of sections for chapter 
        1 of title 11, United States Code, is amended by adding at the 
        end the following:

``111. Credit counseling services; financial management instructional 
                            courses.''.

    (f) Limitation.--Section 362 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(i) If a case commenced under chapter 7, 11, or 13 of this title 
is dismissed due to the creation of a debt repayment plan, for purposes 
of subsection (c)(3), any subsequent case commenced by the debtor under 
any such chapter shall not be presumed to be filed not in good 
faith.''.

                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.

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

SEC. 202. EFFECT OF DISCHARGE.

    Section 524 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(i) The willful failure of a creditor to credit payments received 
under a plan confirmed under this title (including a plan of 
reorganization confirmed under chapter 11 of this title) in the manner 
required by the plan (including crediting the amounts required under 
the plan) shall constitute a violation of an injunction under 
subsection (a)(2).''.

SEC. 203. VIOLATIONS OF THE AUTOMATIC STAY.

    Section 362(a) of title 11, United States Code, is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(9) any communication (other than a recitation of the 
        creditor's legal rights) threatening a debtor (for the purpose 
        of coercing an agreement for the reaffirmation of debt), at any 
        time after the commencement and before the granting of a 
        discharge in a case under this title, of an intention to--
                    ``(A) file a motion to--
                            ``(i) determine the dischargeability of a 
                        debt; or
                            ``(ii) under section 707(b), to dismiss or 
                        convert a case; or
                    ``(B) repossess collateral from the debtor to which 
                the stay applies.''.

SEC. 204. DISCOURAGING ABUSE OF REAFFIRMATION PRACTICES.

    (a) In General.--Section 524 of title 11, United States Code, as 
amended by section 202 of this Act, is amended--
            (1) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by inserting 
                        ``and'' at the end; and
                            (iii) by adding at the end the following:
                    ``(C)(i) the consideration for such agreement is 
                based on a wholly unsecured consumer debt; and
                    ``(ii) such agreement contains a clear and 
                conspicuous statement that advises the debtor that--
                            ``(I) the debtor is entitled to a hearing 
                        before the court at which--
                                    ``(aa) the debtor shall appear in 
                                person; and
                                    ``(bb) the court shall decide 
                                whether the agreement constitutes an 
                                undue hardship, is not in the debtor's 
                                best interest, or is not the result of 
                                a threat by the creditor to take an 
                                action that, at the time of the threat, 
                                that the creditor may not legally take 
                                or does not intend to take; and
                            ``(II) if the debtor is represented by 
                        counsel, the debtor may waive the debtor's 
                        right to a hearing under subclause (I) by 
                        signing a statement--
                                    ``(aa) waiving the hearing;
                                    ``(bb) stating that the debtor is 
                                represented by counsel; and
                                    ``(cc) identifying the counsel.''; 
                                and
                    (B) in paragraph (6)(A)--
                            (i) in clause (i), by striking ``and'' at 
                        the end;
                            (ii) in clause (ii), by striking the period 
                        and inserting ``and''; and
                            (iii) by adding at the end the following:
            ``(iii) not an agreement that the debtor entered into as a 
        result of a threat by the creditor to take an action that, at 
        the time of the threat, the creditor could not legally take or 
        did not intend to take.''; and
            (2) in subsection (d), in the third sentence, by inserting 
        after ``during the course of negotiating an agreement'' the 
        following: ``(or if the consideration by such agreement is 
        based on a wholly secured consumer debt, and the debtor has not 
        waived the right to a hearing under subsection (c)(2)(C))''.
    (b) Law Enforcement.--
            (1) In general.--Chapter 9 of title 18, United States Code, 
        is amended by adding at the end the following:
``Sec. 158. Designation of United States attorneys and agents of the 
              Federal Bureau of Investigation to address abusive 
              reaffirmations of debt
    ``(a) In General.--The Attorney General of the United States shall 
designate the individuals described in subsection (b) to have primary 
responsibility in carrying out enforcement activities in addressing 
violations of section 152 or 157 relating to abusive reaffirmations of 
debt.
    ``(b) United States District Attorneys and Agents of the Federal 
Bureau of Investigation--The individuals referred to in subsection (a) 
are
            ``(1) a United States attorney for each judicial district 
        of the United States; and
            ``(2) an agent of the Federal Bureau of Investigation 
        (within the meaning of section 3107) for each field office of 
        the Federal Bureau of Investigation.
    ``(c) Bankruptcy Investigations.--Each United States attorney 
designated under this section shall have primary responsibility for 
carrying out the duties of a United States attorney under section 
3057.''.
            (2) Clerical amendment.--The analysis for chapter 9 of 
        title 18, United States Code, is amended by adding at the end 
        the following:

``158. Designation of United States attorneys and agents of the Federal 
                            Bureau of Investigation to address abusive 
                            reaffirmations of debt.''.
    (c) Exceptions to Discharge.--Section 523 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(f) Nothing in this section or in any other provision of this 
title shall preempt any State law relating to unfair trade practices 
that imposes restrictions on creditor conduct that would give rise to 
liability--
            ``(1) under this section; or
            ``(2) under section 524, for failure to comply with 
        applicable requirements for seeking a reaffirmation of debt.
    ``(g) Actions by States.--The attorney general of a State, or an 
official or agency designated by a State--
            ``(1) may bring an action on behalf of its residents to 
        recover damages on their behalf under subsection (d) or section 
        524(c); and
            ``(2) may bring an action in a State court to enforce a 
        State criminal law that is similar to section 152 or 157 of 
        title 18.''.

                   Subtitle B--Priority Child Support

SEC. 211. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT OBLIGATIONS.

    Section 507(a) of title 11, United States Code, is amended--
            (1) by striking paragraph (7);
            (2) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
            (3) in paragraph (2), as redesignated, by striking 
        ``First'' and inserting ``Second'';
            (4) in paragraph (3), as redesignated, by striking 
        ``Second'' and inserting ``Third'';
            (5) in paragraph (4), as redesignated, by striking 
        ``Third'' and inserting ``Fourth'';
            (6) in paragraph (5), as redesignated, by striking 
        ``Fourth'' and inserting ``Fifth'';
            (7) in paragraph (6), as redesignated, by striking 
        ``Fifth'' and inserting ``Sixth'';
            (8) in paragraph (7), as redesignated, by striking 
        ``Sixth'' and inserting ``Seventh''; and
            (9) by inserting before paragraph (2), as redesignated, the 
        following:
    ``(1) First, allowed claims for domestic support obligations to be 
paid in the following order on the condition that funds received under 
this paragraph by a governmental unit in a case under this title be 
applied:
            ``(A) Claims that, as of the date of entry of the order for 
        relief, are owed directly to a spouse, former spouse, or child 
        of the debtor, or the parent of such child, without regard to 
        whether the claim is filed by the spouse, former spouse, child, 
        or parent, or is filed by a governmental unit on behalf of that 
        person.
            ``(B) Claims that, as of the date of entry of the order for 
        relief, are assigned by a spouse, former spouse, child of the 
        debtor, or the parent of that child to a governmental unit or 
        are owed directly to a governmental unit under applicable 
        nonbankruptcy law.''.

SEC. 212. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE IN CASES 
              INVOLVING DOMESTIC SUPPORT OBLIGATIONS.

    Title 11, United States Code, is amended--
            (1) in section 1129(a), by adding at the end the following:
            ``(14) If the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order or statute for such obligation that become payable after 
        the date on which the petition is filed.'';
            (2) 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 or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order for such obligation that become payable after the date on 
        which the petition is filed.''; and
            (3) in section 1328(a), in the matter preceding paragraph 
        (1), by inserting ``, and with respect to a debtor who is 
        required by a judicial or administrative order to pay a 
        domestic support obligation, certifies that all amounts payable 
        under such order or statute that are due on or before the date 
        of the certification (including amounts due before or after the 
        petition was filed) have been paid'' after ``completion by the 
        debtor of all payments under the plan''.

SEC. 213. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
              PROCEEDINGS.

    Section 362(b) of title 11, United States Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) under subsection (a)--
                    ``(A) of the commencement of an action or 
                proceeding for--
                            ``(i) the establishment of paternity as a 
                        part of an effort to collect domestic support 
                        obligations; or
                            ``(ii) the establishment or modification of 
                        an order for domestic support obligations; or
                    ``(B) the collection of a domestic support 
                obligation from property that is not property of the 
                estate;'';
            (2) in paragraph (17), by striking ``or'' at the end;
            (3) in paragraph (18), by striking the period at the end 
        and inserting a semicolon; and
            (4) by inserting after paragraph (18) the following:
            ``(19) under subsection (a) with respect to the withholding 
        of income under an order as specified in section 466(b) of the 
        Social Security Act (42 U.S.C. 666(b)); or
            ``(20) under subsection (a) with respect to--
                    ``(A) the withholding, suspension, or restriction 
                of drivers' licenses, professional and occupational 
                licenses, and recreational licenses under State law, as 
                specified in section 466(a)(16) of the Social Security 
                Act (42 U.S.C. 666(a)(16)) 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 (42 U.S.C. 
                666(a)(7));
                    ``(B) the interception of tax refunds, as specified 
                in sections 464 and 466(a)(3) of the Social Security 
                Act (42 U.S.C. 664 and 666(a)(3)); or
                    ``(C) the enforcement of medical obligations as 
                specified under title IV of the Social Security Act (42 
                U.S.C. 601 et seq.).''.

SEC. 214. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
              MAINTENANCE, AND SUPPORT.

    Section 523 of title 11, United States Code, is amended--
            (1) in subsection (a), by striking paragraph (5) and 
        inserting the following:
            ``(5) for a domestic support obligation;'';
            (2) in subsection (c), by striking ``(6), or (15)'' and 
        inserting ``or (6)''; and
            (3) in paragraph (15), by striking ``governmental unit'' 
        and all through the end of the paragraph and inserting a 
        semicolon.

SEC. 215. CONTINUED LIABILITY OF PROPERTY.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (c), by striking paragraph (1) and 
        inserting the following:
            ``(1) a debt of a kind specified in paragraph (1) or (5) of 
        section 523(a) (in which case, notwithstanding any provision of 
        applicable nonbankruptcy law to the contrary, such property 
        shall be liable for a debt of a kind specified in section 
        523(a)(5));''; and
            (2) in subsection (f)(1)(A), by striking the dash and all 
        that follows through the end of the subparagraph and inserting 
        ``of a kind that is specified in section 523(a)(5); or''.

SEC. 216. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST PREFERENTIAL 
              TRANSFER MOTIONS.

    Section 547(c)(7) of title 11, United States Code, is amended to 
read as follows:
            ``(7) to the extent such transfer was a bona fide payment 
        of a debt for a domestic support obligation; or''.

SEC. 217. AMENDMENT TO SECTION 1325 OF TITLE 11, UNITED STATES CODE.

    Section 1325(b)(2) of title 11, United States Code, is amended by 
inserting ``(other than child support payments, foster care payments, 
or disability payments for a dependent child made in accordance with 
applicable nonbankruptcy law and which is reasonably necessary to be 
expended)'' after ``received by the debtor''.

SEC. 218. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

    Section 101 of title 11, United States Code, is amended--
            (1) by striking paragraph (12A); and
            (2) by inserting after paragraph (14) the following:
            ``(14A) `domestic support obligation' means a debt that 
        accrues before or after the entry of an order for relief under 
        this title that is--
                    ``(A) owed to or recoverable by--
                            ``(i) a spouse, former spouse, or child of 
                        the debtor or that child's legal guardian; or
                            ``(ii) a governmental unit;
                    ``(B) in the nature of alimony, maintenance, or 
                support (including assistance provided by a 
                governmental unit) of such spouse, former spouse, or 
                child, without regard to whether such debt is expressly 
                so designated;
                    ``(C) established or subject to establishment 
                before or after entry of an order for relief under this 
                title, by reason of applicable provisions of--
                            ``(i) a separation agreement, divorce 
                        decree, or property settlement agreement;
                            ``(ii) an order of a court of record; or
                            ``(iii) a determination made in accordance 
                        with applicable nonbankruptcy law by a 
                        governmental unit; and
                    ``(D) not assigned to a nongovernmental entity, 
                unless that obligation is assigned voluntarily by the 
                spouse, former spouse, child, or parent solely for the 
                purpose of collecting the debt.''.

SEC. 219. COLLECTION OF CHILD SUPPORT.

    (a) Duties of Trustee Under Chapter 7.--Section 704 of title 11, 
United States Code, as amended by section 102(b) of this Act, is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (8), by striking ``and'' at the 
                end;
                    (B) in paragraph (9), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) if, with respect to an individual debtor, there is a 
        claim for support of a child of the debtor or a custodial 
        parent of such child entitled to receive priority under section 
        507(a)(1), provide the applicable notification specified in 
        subsection (c).''; and
            (2) by adding at the end the following:
    ``(c)(1) In any case described in subsection (a)(10), the trustee 
shall--
            ``(A)(i) notify in writing the holder of the claim of the 
        right of that holder to use the services of a State child 
        support enforcement agency established under sections 464 and 
        466 of the Social Security Act (42 U.S.C. 654 and 666, 
        respectively) for the State in which the holder resides; and
            ``(ii) include in the notice under this paragraph the 
        address and telephone number of the child support enforcement 
        agency; and
            ``(B)(i) notify in writing the State child support agency 
        of the State in which the holder of the claim resides of the 
        claim;
            ``(ii) include in the notice under this paragraph the name, 
        address, and telephone number of the holder of the claim; and
            ``(iii) at such time as the debtor is granted a discharge 
        under section 727, notify the holder of that claim and the 
        State child support agency of the State in which that holder 
        resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the debtor; 
                and
                    ``(III) with respect to the debtor's case, the name 
                of each creditor that holds a claim--
                            ``(aa) that is not discharged under 
                        paragraph (2), (4), or (14A) of section 523(a); 
                        or
                            ``(bb) that was reaffirmed by the debtor 
                        under section 524(c).
    ``(2)(A) If, after receiving a notice under paragraph (1)(B)(iii), 
a holder of a claim or a State child support agency is unable to locate 
the debtor that is the subject of the notice, that party may request 
from a creditor described in paragraph (1)(B)(iii)(III) (aa) or (bb) 
the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable to the 
debtor or any other person by reason of making that disclosure.''.
    (b) Duties of Trustee Under Chapter 13.--Section 1302 of title 11, 
United States Code, as amended by section 102(b) of this Act, is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) if, with respect to an individual debtor, there is a 
        claim for support of a child of the debtor or a custodial 
        parent of such child entitled to receive priority under section 
        507(a)(1), provide the applicable notification specified in 
        subsection (d).''; and
            (s) by adding at the end the following:
    ``(d)(1) In any case described in subsection (b)(6), the trustee 
shall--
            ``(A)(i) notify in writing the holder of the claim of the 
        right of that holder to use the services of a State child 
        support enforcement agency established under sections 464 and 
        466 of the Social Security Act (42 U.S.C. 654 and 666, 
        respectively) for the State in which the holder resides; and
            ``(ii) include in the notice under this paragraph the 
        address and telephone number of the child support enforcement 
        agency; and
            ``(B)(i) notify in writing the State child support agency 
        of the State in which the holder of the claim resides of the 
        claim; and
            ``(ii) include in the notice under this paragraph the name, 
        address, and telephone number of the holder of the claim;
            ``(iii) at such time as the debtor is granted a discharge 
        under section 1328, notify the holder of the claim and the 
        State child support agency of the State in which that holder 
        resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the debtor; 
                and
                    ``(III) with respect to the debtor's case, the name 
                of each creditor that holds a claim--
                            ``(aa) that is not discharged under 
                        paragraph (2), (4), or (14A) of section 523(a); 
                        or
                            ``(bb) that was reaffirmed by the debtor 
                        under section 524(c).
    ``(2)(A) If, after receiving a notice under paragraph (1)(B)(iii), 
a holder of a claim or a State child support agency is unable to locate 
the debtor that is the subject of the notice, that party may request 
from a creditor described in paragraph (1)(B)(iii)(III) (aa) or (bb) 
the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable to the 
debtor or any other person by reason of making that disclosure.''.

                 Subtitle C--Other Consumer Protections

SEC. 221. 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 nonexempt 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 agency' means any person who provides 
        any bankruptcy assistance to an assisted person in return for 
        the payment of money or other valuable consideration, or who is 
        a bankruptcy petition preparer under section 110, but does not 
        include 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 (12 
                U.S.C. 1813)) or any Federal credit union or State 
                credit union (as those terms are defined in section 101 
                of the Federal Credit Union Act (12 U.S.C. 1751)), or 
                any affiliate or subsidiary of such a depository 
                institution or credit union;''.
    (b) Conforming Amendment.--Section 104(b)(1) of title 11, United 
States Code, is amended by inserting ``101(3),'' after ``sections''.

SEC. 222. 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 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).
            ``(2) To the extent not covered in the written notice 
        described in paragraph (1) and not later than 3 business days 
        after the first date on which a debt relief agency first offers 
        to provide any bankruptcy assistance services to an assisted 
        person, a clear and conspicuous written notice advising 
        assisted persons that--
                    ``(A) all information the assisted person is 
                required to provide with a petition and thereafter 
                during a case under this title shall be complete, 
                accurate, and truthful;
                    ``(B) all assets and all liabilities shall 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, shall be 
                stated in those documents if requested after reasonable 
                inquiry to establish such value;
                    ``(C) total current monthly income, projected 
                monthly net income and, in a case under chapter 13, 
                monthly net income shall be stated after reasonable 
                inquiry; and
                    ``(D) information an assisted person provides 
                during the case of that person may be audited under 
                this title and the failure to provide such information 
                may result in dismissal of the proceeding under this 
                title or other sanction including, in some instances, 
                criminal sanctions.
    ``(b) A debt relief agency providing bankruptcy assistance to an 
assisted person shall provide each assisted person at the same time as 
the notices required under subsection (a)(1) with the following 
statement, to the extent applicable, or a substantially similar 
statement. The statement shall be clear and conspicuous and shall be in 
a single document separate from other documents or notices provided to 
the assisted person:
    ```IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM 
AN ATTORNEY OR BANKRUPTCY PETITION PREPARER
    ```If you decide to seek bankruptcy relief, you can represent 
yourself, you can hire an attorney to represent you, or you can get 
help in some localities from a bankruptcy petition preparer who is not 
an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION 
PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR 
BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. 
Ask to see the contract before you hire anyone.
    ```The following information helps you understand what must be done 
in a routine bankruptcy case to help you evaluate how much service you 
need. Although bankruptcy can be complex, many cases are routine.
    ```Before filing a bankruptcy case, either you or your attorney 
should analyze your eligibility for different forms of debt relief made 
available by the Bankruptcy Code and which form of relief is most 
likely to be beneficial for you. Be sure you understand the relief you 
can obtain and its limitations. To file a bankruptcy case, documents 
called a Petition, Schedules and Statement of Financial Affairs, as 
well as in some cases a Statement of Intention need to be prepared 
correctly and filed with the bankruptcy court. You will have to pay a 
filing fee to the bankruptcy court. Once your case starts, you will 
have to attend the required first meeting of creditors where you may be 
questioned by a court official called a ``trustee'' and by creditors.
    ```If you choose to file a chapter 7 case, you may be asked by a 
creditor to reaffirm a debt. You may want help deciding whether to do 
so and a creditor is not permitted to coerce you into reaffirming your 
debts.
    ```If you choose to file a chapter 13 case in which you repay your 
creditors what you can afford over 3 to 5 years, you may also want help 
with preparing your chapter 13 plan and with the confirmation hearing 
on your plan which will be before a bankruptcy judge.
    ```If you select another type of relief under the Bankruptcy Code 
other than chapter 7 or chapter 13, you will want to find out what 
needs to be done from someone familiar with that type of relief.
    ```Your bankruptcy case may also involve litigation. You are 
generally permitted to represent yourself in litigation in bankruptcy 
court, but only attorneys, not bankruptcy petition preparers, can give 
you legal advice.'.
    ``(c) Except to the extent the debt relief agency provides the 
required information itself after reasonably diligent inquiry of the 
assisted person or others so as to obtain such information reasonably 
accurately for inclusion on the petition, schedules or statement of 
financial affairs, a debt relief agency providing bankruptcy assistance 
to an assisted person, to the extent permitted by nonbankruptcy law, 
shall provide each assisted person at the time required for the notice 
required under subsection (a)(1) reasonably sufficient information 
(which 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 
        total current monthly income, projected monthly income and, in 
        a case under chapter 13, 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--
                    ``(A) determine what property is exempt; and
                    ``(B) value exempt property at replacement value, 
                as defined in section 506.
    ``(d) A debt relief agency shall maintain a copy of the notices 
required under subsection (a) of this section for a period of 2 years 
after the latest date on which the notice is given the assisted 
person.''.
    (b) Conforming Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 525 the following:

``526. Disclosures.''.

SEC. 223. 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 222 of this Act, is 
amended by adding at the end the following:
``Sec. 527. Debtor's bill of rights
    ``(a)(1) A debt relief agency shall--
            ``(A) not later than 5 business days after the first date 
        on which a debt relief agency provides any bankruptcy 
        assistance services to an assisted person, but before that 
        assisted person's petition under this title is filed--
                    ``(i) 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
                    ``(ii) give the assisted person a copy of the fully 
                executed and completed contract in a form the person is 
                able to retain;
            ``(B) 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 statement: `We are a debt relief agency. We help people 
        file bankruptcy petitions to obtain relief under the Bankruptcy 
        Code.' or a substantially similar statement; and
            ``(C) if an advertisement directed to the general public 
        indicates that the debt relief 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 agency. We help people file 
        bankruptcy petitions to obtain relief under the Bankruptcy 
        Code.' or a substantially similar statement.
    ``(2) For purposes of paragraph (1)(B), an advertisement shall be 
of bankruptcy assistance services if that advertisement describes or 
offers bankruptcy assistance with a plan under chapter 12, without 
regard to whether chapter 13 is specifically mentioned. A statement 
such as `federally supervised repayment plan' or `Federal debt 
restructuring help' or any other similar statement that would lead a 
reasonable consumer to believe that help with debts is being offered 
when in fact in most cases the help available is bankruptcy assistance 
with a plan under chapter 13 is a statement covered under the preceding 
sentence.
    ``(b) A debt relief agency shall not--
            ``(1) fail to perform any service that the debt relief 
        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, that--
                    ``(A) is untrue and misleading; or
                    ``(B) upon the exercise of reasonable care, should 
                be known by the debt relief 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 agency may 
        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 under 
        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 sections for chapter 5 of 
title 11, United States Code, as amended by section 222 of this Act, is 
amended by inserting after the item relating to section 526 of title 
11, United States Code, the following:

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

SEC. 224. ENFORCEMENT.

    (a) Enforcement.--Subchapter II of chapter 5 of title 11, United 
States Code, as amended by section 223 of this Act, is amended by 
adding at the end the following:
``Sec. 528. Debt relief agency enforcement
    ``(a) Any waiver by any assisted person of any protection or right 
provided by or under section 526 or 527 shall be void and may not be 
enforced by any Federal or State court or any other person.
    ``(b)(1) Any contract between a debt relief agency and an assisted 
person for bankruptcy assistance that does not comply with the material 
requirements of section 526 or 527 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 agency that has been found, after notice and 
hearing, to have--
            ``(A) negligently 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 
        because the debt relief agency's negligent failure to file 
        bankruptcy papers, including papers specified in section 521; 
        or
            ``(C) negligently or intentionally disregarded the material 
        requirements of this title or the Federal Rules of Bankruptcy 
        Procedure applicable to such debt relief 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 
        that the debt relief agency has already been paid on account of 
        that proceeding.
    ``(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, 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, or 
engaged in a clear and consistent pattern or practice of violating 
section 526 or 527, the court may--
            ``(A) enjoin the violation of such section; or
            ``(B) impose an appropriate civil penalty against such 
        person.
    ``(c) 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 sections for chapter 5 of 
title 11, United States Code, as amended by section 223 of this Act, is 
amended by inserting after the item relating to section 527 of title 
11, United States Code, the following:

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

SEC. 225. SENSE OF CONGRESS.

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

SEC. 226. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.

    (a) Section 507(a) of title 11, United States Code, as amended by 
section 211 of this Act, is amended by inserting after paragraph (9) 
the following:
            ``(10) Tenth, allowed claims for death or personal injuries 
        resulting from the operation of a motor vehicle or vessel if 
        such operation was unlawful because the debtor was intoxicated 
        from using alcohol, a drug, or another substance.''.
    (b) Section 523(a)(9) of title 11, United States Code, is amended 
by inserting ``or vessel'' after ``vehicle''.

                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

SEC. 301. REINFORCEMENT OF THE FRESH START.

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

SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS.

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

SEC. 303. CURBING ABUSIVE FILINGS.

    (a) In General.--Section 362(d) of title 11, United States Code, is 
amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) with respect to a stay of an act against real 
        property under subsection (a), by a creditor whose claim is 
        secured by an interest in such real estate, if the court finds 
        that the filing of the bankruptcy petition was part of a scheme 
        to delay, hinder, and defraud creditors that involved either--
                    ``(A) transfer of all or part ownership of, or 
                other interest in, the real property without the 
                consent of the secured creditor or court approval; or
                    ``(B) multiple bankruptcy filings affecting the 
                real property.

If recorded in compliance with applicable State laws governing notices 
of interests or liens in real property, an order entered under this 
subsection shall be binding in any other case under this title 
purporting to affect the real property filed not later than 2 years 
after that recording, except that a debtor in a subsequent case may 
move for relief from such order based upon changed circumstances or for 
good cause shown, after notice and a hearing.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 213 of this Act, is amended--
            (1) in paragraph (19), by striking ``or'' at the end;
            (2) in paragraph (20), by striking the period at the end; 
        and
            (3) by inserting after paragraph (20) the following:
            ``(21) under subsection (a), of any act to enforce any lien 
        against or security interest in real property following the 
        entry of an order under section 362(d)(4) as to that property 
        in any prior bankruptcy case for a period of 2 years after 
        entry of such an order, except that the debtor, in a subsequent 
        case, may move the court for relief from such order based upon 
        changed circumstances or for other good cause shown, after 
        notice and a hearing; or
            ``(22) under subsection (a), of any act to enforce any lien 
        against or security interest in real property--
                    ``(A) if the debtor is ineligible under section 
                109(g) to be a debtor in a bankruptcy case; or
                    ``(B) if the bankruptcy case was filed in violation 
                of a bankruptcy court order in a prior bankruptcy case 
                prohibiting the debtor from being a debtor in another 
                bankruptcy case.''.

SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

    Title 11, United States Code, is amended--
            (1) in section 521(a), as so redesignated--
                    (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 within 
        45 days after the first meeting of creditors under section 
        341(a)--
                    ``(A) enters into an agreement with the creditor 
                under section 524(c) with respect to the claim secured 
                by such property; or
                    ``(B) redeems such property from the security 
                interest under section 722.''; and
                    (C) by adding at the end the following:
    ``(b) If the debtor fails to so act within the 45-day period 
specified in subsection (a)(6), 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. 305. RELIEF FROM THE AUTOMATIC STAY WHEN THE DEBTOR DOES NOT 
              COMPLETE INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.

    Title 11, United States Code, is amended--
            (1) in section 362--
                    (A) in subsection (c), by striking ``(e), and (f)'' 
                and inserting ``(e), (f), and (h)''; and
                    (B) by redesignating subsection (h), as amended by 
                section 227 of this Act, as subsection (j) and by 
                inserting after subsection (g) the following:
    ``(h)(1) Subject to paragraph (2), in an individual case under 
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 period of time set by section 521(a)(2) to--
            ``(A) file timely any statement of intention required under 
        section 521(a)(2) with respect to that property or to indicate 
        therein that the debtor--
                    ``(i) will either surrender the property or retain 
                the property; and
                    ``(ii) if retaining the property, will, as 
                applicable--
                            ``(I) redeem the property under section 
                        722;
                            ``(II) reaffirm the debt the property 
                        secures under section 524(c); or
                            ``(III) assume the unexpired lease under 
                        section 365(p) if the trustee does not do so; 
                        or
            ``(B) take timely the action specified in that statement of 
        intention, as the statement may be amended before expiration of 
        the period for taking action, unless the statement of intention 
        specifies reaffirmation and the creditor refuses to reaffirm on 
        the original contract terms.
    ``(2) Paragraph (1) shall not apply if 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 521, as amended by section 304 of this Act--
                    (A) in subsection (a)(2), as redesignated--
                            (i) by striking ``consumer'';
                            (ii) in subparagraph (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 
                                period'' and inserting ``30-day 
                                period''; and
                            (iii) in subparagraph (C), by inserting 
                        ``except as provided in section 362(h)'' before 
                        the semicolon; and
                    (B) by adding at the end the following:
    ``(c) If the debtor fails timely to take the action specified in 
subsection (a)(6), or in paragraph (1) or (2) of section 362(h), 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 that has 
the effect of placing the debtor in default under that lease or 
agreement by reason of the occurrence, pendency, or existence of a 
proceeding under this title or the insolvency of the debtor. Nothing in 
this subsection shall be deemed to justify limiting such a provision in 
any other circumstance.''.

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

    (a) In General.--Section 1325(a)(5)(B)(i) of title 11, United 
States Code, is amended to read as follows:
                    ``(i) the plan provides that--
                            ``(I) the holder of such claim retain the 
                        lien securing such claim until the earlier of--
                                    ``(aa) the payment of the 
                                underlying debt determined under 
                                nonbankruptcy law; or
                                    ``(bb) discharge under section 
                                1328; and
                            ``(II) if the case under this chapter is 
                        dismissed or converted without completion of 
                        the plan, such lien shall also be retained by 
                        such holder to the extent recognized by 
                        applicable nonbankruptcy law; and''.
    (b) Restoring the Foundation for Secured Credit.--Section 1325(a) 
of title 11, United States Code, is amended by adding at the end the 
following flush sentence:
``For purposes of paragraph (5), section 506 shall not apply to a claim 
described in that paragraph if the debt that is the subject of the 
claim was incurred within the 5-year period preceding the filing of the 
petition and the collateral for that debt consists of a motor vehicle 
(as defined in section 30102 of title 49) acquired for the personal use 
of the debtor, or if collateral for that debt consists of any other 
thing of value, if the debt was incurred during the 6-month period 
preceding that filing.''.
    (c) Definitions.--Section 101 of title 11, United States Code, as 
amended by section 221 of this Act, is amended--
            (1) by inserting after paragraph (13) the following:
            ``(13A) `debtor's principal residence'--
                    ``(A) means a residential structure, including 
                incidental property, without regard to whether that 
                structure is attached to real property; and
                    ``(B) includes an individual condominium or 
                cooperative unit;''; and
            (2) by inserting after paragraph (27), the following:
            ``(27A) `incidental property' means, with respect to a 
        debtor's principal residence--
                    ``(A) property commonly conveyed with a principal 
                residence in the area where the real estate is located;
                    ``(B) all easements, rights, appurtenances, 
                fixtures, rents, royalties, mineral rights, oil or gas 
                rights or profits, water rights, escrow funds, or 
                insurance proceeds; and
                    ``(C) all replacements or additions;''.

SEC. 307. EXEMPTIONS.

    Section 522(b)(2)(A) of title 11, United States Code, is amended--
            (1) by striking ``180'' and inserting ``730''; and
            (2) by striking ``, or for a longer portion of such 180-day 
        period than in any other place''.

SEC. 308. RESIDENCY REQUIREMENT FOR HOMESTEAD EXEMPTION.

    Section 522 of title 11, United States Code, as amended by section 
307 of this Act, 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 730-day 
period ending on the date of the filing of the petition, with the 
intent to hinder, delay, or defraud a creditor and that the debtor 
could not exempt, or that portion that the debtor could not exempt, 
under subsection (b) if on such date the debtor had held the property 
so disposed of.''.

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

    (a) Stopping Abusive Conversions From Chapter 13.--Section 
348(f)(1) of title 11, United States Code, is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B)--
                    (A) by striking ``in the converted case, with 
                allowed secured claims'' and inserting ``only in a case 
                converted to chapter 11 or 12 but not in a case 
                converted to chapter 7, with allowed secured claims in 
                cases under chapters 11 and 12''; and
                    (B) by striking the period and inserting ``; and''; 
                and
            (3) by adding at the end the following:
            ``(C) with respect to cases converted from chapter 13--
                    ``(i) the claim of any creditor holding security as 
                of the date of the petition shall continue to be 
                secured by that security unless the full amount of such 
                claim determined under applicable nonbankruptcy law has 
                been paid in full as of the date of conversion, 
                notwithstanding any valuation or determination of the 
                amount of an allowed secured claim made for the 
                purposes of the chapter 13 proceeding; and
                    ``(ii) unless a prebankruptcy default has been 
                fully cured under the plan at the time of conversion, 
                in any proceeding under this title or otherwise, the 
                default shall have the effect given under applicable 
                nonbankruptcy law.''.
    (b) Giving Debtors the Ability To Keep Leased Personal Property by 
Assumption.--Section 365 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(p)(1) If a lease of personal property is rejected or not timely 
assumed by the trustee under subsection (d), the leased property is no 
longer property of the estate and the stay under section 362(a) is 
automatically terminated.
    ``(2)(A) In the case of an individual under chapter 7, the debtor 
may notify the creditor in writing that the debtor desires to assume 
the lease. Upon being so notified, the creditor may, at its option, 
notify the debtor that it is willing to have the lease assumed by the 
debtor and may condition such assumption on cure of any outstanding 
default on terms set by the contract.
    ``(B) If within 30 days after notice is provided under subparagraph 
(A), the debtor notifies the lessor in writing that the lease is 
assumed, the liability under the lease will be assumed by the debtor 
and not by the estate.
    ``(C) The stay under section 362 and the injunction under section 
524(a)(2) shall not be violated by notification of the debtor and 
negotiation of cure under this subsection.
    ``(3) In a case under chapter 11 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 and any stay under 
section 1301 is automatically terminated with respect to the property 
subject to the lease.''.
    (c) Adequate Protection of Lessors and Purchase Money Secured 
Creditors.--
            (1) In general.--Subchapter I of chapter 13 of title 11, 
        United States Code, is amended by inserting after section 1307 
        the following:
``Sec. 1308. Adequate protection in chapter 13 cases
    ``(a)(1)(A) On or before the date that is 30 days after the filing 
of a case under this chapter, the debtor shall make cash payments in an 
amount determined under paragraph (2), to--
            ``(i) any lessor of personal property; and
            ``(ii) any creditor holding a claim secured by personal 
        property to the extent that the claim is attributable to the 
        purchase of that property by the debtor.
    ``(B) The debtor or the plan shall continue making the adequate 
protection payments until the earlier of the date on which--
            ``(i) the creditor begins to receive actual payments under 
        the plan; or
            ``(ii) the debtor relinquishes possession of the property 
        referred to in subparagraph (A) to--
                    ``(I) the lessor or creditor; or
                    ``(II) any third party acting under claim of right.
    ``(2) The payments referred to in paragraph (1)(A) shall be the 
contract amount.
    ``(b)(1) Subject to the limitations under paragraph (2), the court 
may, after notice and hearing, change the amount, and timing of the 
dates of payment, of payments made under subsection (a).
    ``(2)(A) The payments referred to in paragraph (1) shall be payable 
not less frequently than monthly.
    ``(B) The amount of payments referred to in paragraph (1) shall not 
be less than the amount of any weekly, biweekly, monthly, or other 
periodic payment schedules as payable under the contract between the 
debtor and creditor.
    ``(c) Notwithstanding section 1326(b), the payments referred to in 
subsection (a)(1)(A) shall be continued in addition to plan payments 
under a confirmed plan until actual payments to the creditor begin 
under that plan, if the confirmed plan provides for--
            ``(1) payments to a creditor or lessor described in 
        subsection (a)(1); and
            ``(2) the deferral of payments to such creditor or lessor 
        under the plan until the payment of amounts described in 
        section 1326(b).
    ``(d) Notwithstanding sections 362, 542, and 543, a lessor or 
creditor described in subsection (a) may retain possession of property 
described in that subsection that was obtained in accordance with 
applicable law before the date of filing of the petition until the 
first payment under subsection (a)(1)(A) is received by the lessor or 
creditor.
    ``(e) On or before the date that is 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 such 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.''.
            (2) Clerical amendment.--The table of sections for chapter 
        13 of title 11, United States Code, is amended, in the matter 
        relating to subchapter I, by inserting after the item relating 
        to section 1307 the following:

``1308. Adequate protection in chapter 13 cases.''.

SEC. 310. LIMITATION ON LUXURY GOODS.

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

SEC. 311. AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, as amended by 
section 303(b) of this Act, is amended--
            (1) in paragraph (21), by striking ``or'' at the end;
            (2) in paragraph (22), by striking the period at the end 
        and inserting a semicolon; and
            (3) by inserting after paragraph (22) the following:
            ``(23) under subsection (a)(3), of the continuation of any 
        eviction, unlawful detainer action, or similar proceeding by a 
        lessor against a debtor involving residential real property in 
        which the debtor resides as a tenant under a rental agreement;
            ``(24) under subsection (a)(3), of the commencement of any 
        eviction, unlawful detainer action, or similar proceeding by a 
        lessor against a debtor involving residential real property in 
        which the debtor resides as a tenant under a rental agreement 
        that has terminated under the lease agreement or applicable 
        State law; or
            ``(25) under subsection (a)(3), of eviction actions based 
        on endangerment to property or person or the use of illegal 
        drugs.''.

SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY DISCHARGES.

    Title 11, United States Code, is amended--
            (1) in section 727(a)(8), by striking ``six'' and inserting 
        ``8''; and
            (2) in section 1328, by 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 if the debtor has received a discharge in any case 
filed under this title within 5 years before the order for relief under 
this chapter.''.

SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

    Section 522(f) of title 11, United States Code, is amended by 
adding at the end the following:
            ``(4)(A) Subject to subparagraph (B), for purposes of 
        paragraph (1)(B), the term `household goods' means--
                    ``(i) clothing;
                    ``(ii) furniture;
                    ``(iii) appliances;
                    ``(iv) 1 radio;
                    ``(v) 1 television;
                    ``(vi) 1 VCR;
                    ``(vii) linens;
                    ``(viii) china;
                    ``(ix) crockery;
                    ``(x) kitchenware;
                    ``(xi) educational materials and educational 
                equipment primarily for the use of minor dependent 
                children of the debtor, but only 1 personal computer 
                only if used primarily for the education or 
                entertainment of such minor children;
                    ``(xii) medical equipment and supplies;
                    ``(xiii) furniture exclusively for the use of minor 
                children, or elderly or disabled dependents of the 
                debtor; and
                    ``(xiv) personal effects (including wedding rings 
                and the toys and hobby equipment of minor dependent 
                children) of the debtor and the dependents of the 
                debtor.
            ``(B) The term `household goods' does not include--
                    ``(i) works of art (unless by or of the debtor or 
                the dependents of the debtor);
                    ``(ii) electronic entertainment equipment (except 1 
                television, 1 radio, and 1 VCR);
                    ``(iii) items acquired as antiques;
                    ``(iv) jewelry (except wedding rings); and
                    ``(v) a computer (except as otherwise provided for 
                in this section), motor vehicle (including a tractor or 
                lawn tractor), boat, or a motorized recreational 
                device, conveyance, vehicle, watercraft, or 
                aircraft.''.

SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE DEBTS.

    Section 523(a) of title 11, United States Code, is amended by 
inserting after paragraph (14) the following:
            ``(14A)(A) incurred to pay a debt that is nondischargeable 
        by reason of section 727, 1141, 1228(a), 1228(b), or 1328(b), 
        or any other provision of this subsection, if the debtor 
        incurred the debt to pay such a nondischargeable debt with the 
        intent to discharge in bankruptcy the newly created debt;
            ``(B) except that all debts incurred to pay 
        nondischargeable debts shall be presumed to be nondischargeable 
        debts if incurred within 70 days before the filing of the 
        petition (except that, in any case in which there is an allowed 
        claim under section 502 for child support or spousal support 
        entitled to priority under section 507(a)(1) and that was filed 
        in a timely manner, debts that would otherwise be presumed to 
        be nondischargeable debts by reason of this subparagraph shall 
        be treated as dischargeable debts);''.
    (b) Discharge Under Chapter 13.
    Section 1328(a) of title 11, United States Code, is amended by 
striking paragraphs (1) through (3) and inserting the following:
            ``(1) provided for under section 1322(b)(5);
            ``(2) of the kind specified in paragraph (2), (4), (3)(B), 
        (5), (8), or (9) of section 523(a);
            ``(3) for restitution, or a criminal fine, included in a 
        sentence on the debtor's conviction of a crime; or
            ``(4) for restitution, or damages, awarded in a civil 
        action against the debtor as a result of willful or malicious 
        injury by the debtor that caused personal injury to an 
        individual or the death of an individual.''.

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

    (a) Notice.--Section 342 of title 11, United States Code, is 
amended--
            (1) in subsection (c)--
                    (A) by inserting ``(1)'' after ``(c)''; and
                    (B) by striking ``, but the failure of such notice 
                to contain such information shall not invalidate the 
                legal effect of such notice''; and
            (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)(1) Notice given to a creditor other than as provided in this 
section shall not be effective notice until that notice has been 
brought to the attention of the creditor. If the creditor designates a 
person or department to be responsible for receiving notices concerning 
bankruptcy cases and establishes reasonable procedures so that 
bankruptcy notices received by the creditor are to be delivered to such 
department or person, notice shall not be considered to have been 
brought to the attention of the creditor until received by such person 
or department.
    ``(2) No sanction under section 362(h) or any other sanction that a 
court may impose on account of violations of the stay under section 
362(a) or failure to comply with section 542 or 543 may be imposed on 
any action of the creditor unless the action takes place after the 
creditor has received notice of the commencement of the case effective 
under this section.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by section 305 of this Act, is amended--
            (1) in subsection (a), by striking paragraph (1) and 
        inserting the following:
            ``(1) file--
                    ``(A) a list of creditors; and
                    ``(B) unless the court orders otherwise--
                            ``(i) a schedule of assets and liabilities;
                            ``(ii) a schedule of current income and 
                        current expenditures;
                            ``(iii) a statement of the debtor's 
                        financial affairs and, if applicable, a 
                        certificate--
                                    ``(I) of an attorney whose name is 
                                on the petition as the attorney for the 
                                debtor or any bankruptcy petition 
                                preparer signing the petition under 
                                section 110(b)(1) indicating that such 
                                attorney or bankruptcy petition 
                                preparer delivered to the debtor any 
                                notice required by section 342(b); or
                                    ``(II) if no attorney for the 
                                debtor is indicated and no bankruptcy 
                                petition preparer signed the petition, 
                                of the debtor that such notice was 
                                obtained and read by the debtor;
                            ``(iv) copies of any Federal tax returns, 
                        including any schedules or attachments, filed 
                        by the debtor for the 3-year period preceding 
                        the order for relief;
                            ``(v) copies of all payment advices or 
                        other evidence of payment, if any, received by 
                        the debtor from any employer of the debtor in 
                        the period 60 days before the filing of the 
                        petition;
                            ``(vi) a statement of the amount of 
                        projected monthly net income, itemized to show 
                        how the amount is calculated; and
                            ``(vii) a statement disclosing any 
                        reasonably anticipated increase in income or 
                        expenditures over the 12-month period following 
                        the date of filing;''; and
            (2) by adding at the end the following:
    ``(d)(1) At any time, a creditor, in the case of an individual 
under chapter 7 or 13, may file with the court notice that the creditor 
requests the petition, schedules, and a statement of affairs filed by 
the debtor in the case and the court shall make those documents 
available to the creditor who requests those documents.
    ``(2)(A) At any time, a creditor in a case under chapter 13 may 
file with the court notice that the creditor requests the plan filed by 
the debtor in the case.
    ``(B) The court shall make such plan available to the creditor who 
requests such plan--
            ``(i) at a reasonable cost; and
            ``(ii) not later than 5 days after such request.
    ``(e) An individual debtor in a case under chapter 7 or 13 shall 
file with the court--
            ``(1) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, with respect 
        to the period from the commencement of the case until such time 
        as the case is closed;
            ``(2) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, that were not 
        filed with the taxing authority when the schedules under 
        subsection (a)(1) were filed with respect to the period that is 
        3 years before the order for relief;
            ``(3) any amendments to any of the tax returns, including 
        schedules or attachments, described in paragraph (1) or (2); 
        and
            ``(4) in a case under chapter 13, a statement subject to 
        the penalties of perjury by the debtor of the debtor's income 
        and expenditures in the preceding tax year and monthly income, 
        that shows how the amounts are calculated--
                    ``(A) beginning on the date that is the later of 90 
                days after the close of the debtor's tax year or 1 year 
                after the order for relief, unless a plan has been 
                confirmed; and
                    ``(B) thereafter, on or before the date that is 45 
                days before each anniversary of the confirmation of the 
                plan until the case is closed.
    ``(f)(1) A statement referred to in subsection (e)(4) shall 
disclose--
            ``(A) the amount and sources of income of the debtor;
            ``(B) the identity of any person responsible with the 
        debtor for the support of any dependent of the debtor; and
            ``(C) the identity of any person who contributed, and the 
        amount contributed, to the household in which the debtor 
        resides.
    ``(2) The tax returns, amendments, and statement of income and 
expenditures described in paragraph (1) shall be available to the 
United States trustee, any bankruptcy administrator, any trustee, and 
any party in interest for inspection and copying, subject to the 
requirements of subsection (f).
    ``(g)(1) Not later than 30 days after the date of enactment of the 
Bankruptcy Reform Act of 1999, the Director of the Administrative 
Office of the United States Courts shall establish procedures for 
safeguarding the confidentiality of any tax information required to be 
provided under this section.
    ``(2) The procedures under paragraph (1) shall include restrictions 
on creditor access to tax information that is required to be provided 
under this section.
    ``(3) Not later than 1 year after the date of enactment of the 
Bankruptcy Reform Act of 1999, the Director of the Administrative 
Office of the United States Courts shall prepare and submit to Congress 
a report that--
            ``(A) assesses the effectiveness of the procedures under 
        paragraph (1); and
            ``(B) if appropriate, includes proposed legislation to--
                    ``(i) further protect the confidentiality of tax 
                information; and
                    ``(ii) provide penalties for the improper use by 
                any person of the tax information required to be 
                provided under this section.
    ``(h) If requested by the United States trustee or a trustee 
serving in the case, the debtor shall provide--
            ``(1) a document that establishes the identity of the 
        debtor, including a driver's license, passport, or other 
        document that contains a photograph of the debtor; and
            ``(2) such other personal identifying information relating 
        to the debtor that establishes the identity of the debtor.''.

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

    Section 521 of title 11, United States Code, as amended by section 
315 of this Act, is amended by adding at the end the following:
    ``(i)(1) Notwithstanding section 707(a), and subject to paragraph 
(2), if an individual debtor in a voluntary case under chapter 7 or 13 
fails to file all of the information required under subsection (a)(1) 
within 45 days after the filing of the petition commencing the case, 
the case shall be automatically dismissed effective on the 46th day 
after the filing of the petition.
    ``(2) With respect to a case described in paragraph (1), any party 
in interest may request the court to enter an order dismissing the 
case. If requested, the court shall enter an order of dismissal not 
later than 5 days after such request.
    ``(3) Upon request of the debtor made within 45 days after the 
filing of the petition commencing a case described in paragraph (1), 
the court may allow the debtor an additional period of not to exceed 45 
days to file the information required under subsection (a)(1) if the 
court finds justification for extending the period for the filing.''.

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

    (a) Hearing.--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 later 
than 45 days after the meeting of creditors under section 341(a).''.
    (b) Filing of Plan.--Section 1321 of title 11, United States Code, 
is amended to read as follows:
``Sec. 1321. Filing of plan
    ``Not later than 90 days after the order for relief under this 
chapter, the debtor shall file a plan, except that the court may extend 
such period if the need for an extension is attributable to 
circumstances for which the debtor should not justly be held 
accountable.''.

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

    Section 1322(d) of title 11, United States Code, is amended to read 
as follows:
    ``(d)(1) Except as provided in paragraph (2), the plan may not 
provide for payments over a period that is longer than 3 years.
    ``(2) The plan may provide for payments over a period that is 
longer than 3 years if--
            ``(A) the plan is for a case that was converted to a case 
        under this chapter from a case under chapter 7, in which case 
        the plan shall provide for payments over a period of 5 years; 
        or
            ``(B) the plan is for a case that is not described in 
        subparagraph (A), and the court, for cause, approves a period 
        longer than 3 years, but not to exceed 5 years.''.

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

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

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

    Section 362(e) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e)''; and
            (2) by adding at the end the following:
    ``(2) Notwithstanding paragraph (1), in the case of an individual 
filing under chapter 7, 11, or 13, the stay under subsection (a) shall 
terminate on the date that is 60 days after a request is made by a 
party in interest under subsection (d), unless--
            ``(A) a final decision is rendered by the court during the 
        60-day period beginning on the date of the request; or
            ``(B) that 60-day period is extended--
                    ``(i) by agreement of all parties in interest; or
                    ``(ii) by the court for such specific period of 
                time as the court finds is required for good cause, as 
                described in findings made by the court.''.

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

SEC. 401. ROLLING STOCK EQUIPMENT.

    (a) In General.--Section 1168 of title 11, United States Code, is 
amended to read as follows:
``Sec. 1168. Rolling stock equipment
    ``(a)(1) The right of a secured party with a security interest in 
or of a lessor or conditional vendor of equipment described in 
paragraph (2) to take possession of such equipment in compliance with 
an equipment security agreement, lease, or conditional sale contract, 
and to enforce any of its other rights or remedies under such security 
agreement, lease, or conditional sale contract, to sell, lease, or 
otherwise retain or dispose of such equipment, is not limited or 
otherwise affected by any other provision of this title or by any power 
of the court, except that the right to take possession and enforce 
those other rights and remedies shall be subject to section 362, if--
            ``(A) before the date that is 60 days after the date of 
        commencement of a case under this chapter, the trustee, subject 
        to the court's approval, agrees to perform all obligations of 
        the debtor under such security agreement, lease, or conditional 
        sale contract; and
            ``(B) any default, other than a default of a kind described 
        in section 365(b)(2), under such security agreement, lease, or 
        conditional sale contract that--
                    ``(i) occurs before the date of commencement of the 
                case and is an event of default therewith is cured 
                before the expiration of such 60-day period;
                    ``(ii) occurs or becomes an event of default after 
                the date of commencement of the case and before the 
                expiration of such 60-day period is cured before the 
                later of--
                            ``(I) the date that is 30 days after the 
                        date of the default or event of the default; or
                            ``(II) the expiration of such 60-day 
                        period; and
                    ``(iii) occurs on or after the expiration of such 
                60-day period is cured in accordance with the terms of 
                such security agreement, lease, or conditional sale 
                contract, if cure is permitted under that agreement, 
                lease, or conditional sale contract.
    ``(2) The equipment described in this paragraph--
            ``(A) is rolling stock equipment or accessories used on 
        rolling stock equipment, including superstructures or racks, 
        that is subject to a security interest granted by, leased to, 
        or conditionally sold to a debtor; and
            ``(B) includes all records and documents relating to such 
        equipment that are required, under the terms of the security 
        agreement, lease, or conditional sale contract, to be 
        surrendered or returned by the debtor in connection with the 
        surrender or return of such equipment.
    ``(3) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the court's approval, to extend the 60-day period 
specified in subsection (a)(1).
    ``(c)(1) In any case under this chapter, the trustee shall 
immediately surrender and return to a secured party, lessor, or 
conditional vendor, described in subsection (a)(1), equipment described 
in subsection (a)(2), if at any time after the date of commencement of 
the case under this chapter such secured party, lessor, or conditional 
vendor is entitled under subsection (a)(1) to take possession of such 
equipment and makes a written demand for such possession of the 
trustee.
    ``(2) At such time as the trustee is required under paragraph (1) 
to surrender and return equipment described in subsection (a)(2), any 
lease of such equipment, and any security agreement or conditional sale 
contract relating to such equipment, if such security agreement or 
conditional sale contract is an executory contract, shall be deemed 
rejected.
    ``(d) With respect to equipment first placed in service on or 
before October 22, 1994, for purposes of this section--
            ``(1) the term `lease' includes any written agreement with 
        respect to which the lessor and the debtor, as lessee, have 
        expressed in the agreement or in a substantially 
        contemporaneous writing that the agreement is to be treated as 
        a lease for Federal income tax purposes; and
            ``(2) the term `security interest' means a purchase-money 
        equipment security interest.
    ``(e) With respect to equipment first placed in service after 
October 22, 1994, for purposes of this section, the term `rolling stock 
equipment' includes rolling stock equipment that is substantially 
rebuilt and accessories used on such equipment.''.
    (b) Aircraft Equipment and Vessels.--Section 1110 of title 11, 
United States Code, is amended to read as follows:
``Sec. 1110. Aircraft equipment and vessels
    ``(a)(1) Except as provided in paragraph (2) and subject to 
subsection (b), the right of a secured party with a security interest 
in equipment described in paragraph (3), or of a lessor or conditional 
vendor of such equipment, to take possession of such equipment in 
compliance with a security agreement, lease, or conditional sale 
contract, and to enforce any of its other rights or remedies, under 
such security agreement, lease, or conditional sale contract, to sell, 
lease, or otherwise retain or dispose of such equipment, is not limited 
or otherwise affected by any other provision of this title or by any 
power of the court.
    ``(2) The right to take possession and to enforce the other rights 
and remedies described in paragraph (1) shall be subject to section 362 
if--
            ``(A) before the date that is 60 days after the date of the 
        order for relief under this chapter, the trustee, subject to 
        the approval of the court, agrees to perform all obligations of 
        the debtor under such security agreement, lease, or conditional 
        sale contract; and
            ``(B) any default, other than a default of a kind specified 
        in section 365(b)(2), under such security agreement, lease, or 
        conditional sale contract that occurs--
                    ``(i) before the date of the order is cured before 
                the expiration of such 60-day period;
                    ``(ii) after the date of the order and before the 
                expiration of such 60-day period is cured before the 
                later of--
                            ``(I) the date that is 30 days after the 
                        date of the default; or
                            ``(II) the expiration of such 60-day 
                        period; and
                    ``(iii) on or after the expiration of such 60-day 
                period is cured in compliance with the terms of such 
                security agreement, lease, or conditional sale 
                contract, if a cure is permitted under that agreement, 
                lease, or contract.
    ``(3) The equipment described in this paragraph--
            ``(A) is--
                    ``(i) an aircraft, aircraft engine, propeller, 
                appliance, or spare part (as defined in section 40102 
                of title 49) that is subject to a security interest 
                granted by, leased to, or conditionally sold to a 
                debtor that, at the time such transaction is entered 
                into, holds an air carrier operating certificate issued 
                under chapter 447 of title 49 for aircraft capable of 
                carrying 10 or more individuals or 6,000 pounds or more 
                of cargo; or
                    ``(ii) a documented vessel (as defined in section 
                30101(1) of title 46) that is subject to a security 
                interest granted by, leased to, or conditionally sold 
                to a debtor that is a water carrier that, at the time 
                such transaction is entered into, holds a certificate 
                of public convenience and necessity or permit issued by 
                the Department of Transportation; and
            ``(B) includes all records and documents relating to such 
        equipment that are required, under the terms of the security 
        agreement, lease, or conditional sale contract, to be 
        surrendered or returned by the debtor in connection with the 
        surrender or return of such equipment.
    ``(4) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the approval of the court, to extend the 60-day 
period specified in subsection (a)(1).
    ``(c)(1) In any case under this chapter, the trustee shall 
immediately surrender and return to a secured party, lessor, or 
conditional vendor, described in subsection (a)(1), equipment described 
in subsection (a)(3), if at any time after the date of the order for 
relief under this chapter such secured party, lessor, or conditional 
vendor is entitled under subsection (a)(1) to take possession of such 
equipment and makes a written demand for such possession to the 
trustee.
    ``(2) At such time as the trustee is required under paragraph (1) 
to surrender and return equipment described in subsection (a)(3), any 
lease of such equipment, and any security agreement or conditional sale 
contract relating to such equipment, if such security agreement or 
conditional sale contract is an executory contract, shall be deemed 
rejected.
    ``(d) With respect to equipment first placed in service on or 
before October 22, 1994, for purposes of this section--
            ``(1) the term `lease' includes any written agreement with 
        respect to which the lessor and the debtor, as lessee, have 
        expressed in the agreement or in a substantially 
        contemporaneous writing that the agreement is to be treated as 
        a lease for Federal income tax purposes; and
            ``(2) the term `security interest' means a purchase-money 
        equipment security interest.''.

SEC. 402. 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 under section 15A of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78o-3) or a national securities 
        exchange registered with the Securities and Exchange Commission 
        under section 6 of the Securities Exchange Act of 1934 (15 
        U.S.C. 78f);''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 311 of this Act, is amended--
            (1) in paragraph (24), by striking ``or'' at the end;
            (2) in paragraph (25), by striking the period at the end 
        and inserting ``; or''; and
            (3) by inserting after paragraph (25) the following:
            ``(26) under subsection (a), of--
                    ``(A) the commencement or continuation of an 
                investigation or action by a securities self regulatory 
                organization to enforce such organization's regulatory 
                power;
                    ``(B) the enforcement of an order or decision, 
                other than for monetary sanctions, obtained in an 
                action by the securities self regulatory organization 
                to enforce such organization's regulatory power; or
                    ``(C) any act taken by the securities self 
                regulatory organization to delist, delete, or refuse to 
                permit quotation of any stock that does not meet 
                applicable regulatory requirements.''.

SEC. 403. 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. 404. PROTECTION OF REFINANCE OF SECURITY INTEREST.

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

SEC. 405. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

    Section 365(d)(4) of title 11, United States Code, is amended to 
read as follows:
    ``(4)(A) Subject to subparagraph (B), in any case under any chapter 
of this title, an unexpired lease of nonresidential real property under 
which the debtor is the lessee shall be deemed rejected and the trustee 
shall immediately surrender that nonresidential real property to the 
lessor if the trustee does not assume or reject the unexpired lease by 
the earlier of--
            ``(i) the date that is 120 days after the date of the order 
        for relief; or
            ``(ii) the date of the entry of an order confirming a plan.
    ``(B) The court may extend the period determined under subparagraph 
(A) only upon a motion of the lessor.''.

SEC. 406. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

    Section 1102(a)(2) of title 11, United States Code, is amended by 
inserting before the first sentence the following: ``On its own motion 
or on request of a party in interest, and after notice and hearing, the 
court may order a change in the membership of a committee appointed 
under this subsection, if the court determines that the change is 
necessary to ensure adequate representation of creditors or equity 
security holders.''.

SEC. 407. AMENDMENT TO SECTION 546 OF TITLE 11, UNITED STATES CODE.

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

SEC. 408. LIMITATION.

    Section 546(c)(1)(B) of title 11, United States Code, is amended by 
striking ``20'' and inserting ``45''.

SEC. 409. AMENDMENT TO SECTION 330(A) OF TITLE 11, UNITED STATES CODE.

    Section 330(a)(3) of title 11, United States Code, is amended--
            (1) by striking ``(A) the; and inserting ``(i) the'';
            (2) by striking ``(B)'' and inserting ``(ii)'';
            (3) by striking ``(C)'' and inserting ``(iii)'';
            (4) by striking ``(D)'' and inserting ``(iv)'';
            (5) by striking ``(E)'' and inserting ``(v)'';
            (6) in subparagraph (A), by inserting ``to an examiner, 
        trustee under chapter 11, or professional person'' after 
        ``awarded''; and
            (7) by adding at the end the following:
    ``(B) In determining the amount of reasonable compensation to be 
awarded a trustee, the court shall treat such compensation as a 
commission based on the results achieved.''.

SEC. 410. 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. 411. PREFERENCES.

    Section 547(c) of title 11, United States Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) to the extent that such transfer was in payment of a 
        debt incurred by the debtor in the ordinary course of business 
        or financial affairs of the debtor and the transferee, and such 
        transfer was--
                    ``(A) made in the ordinary course of business or 
                financial affairs of the debtor and the transferee; or
                    ``(B) made according to ordinary business terms;'';
            (2) in paragraph (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 
        $5,000.''.

SEC. 412. 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. 413. 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) The 120-day period specified in paragraph (1) may not be 
extended beyond a date that is 18 months after the date of the order 
for relief under this chapter.
    ``(B) The 180-day period specified in paragraph (1) may not be 
extended beyond a date that is 20 months after the date of the order 
for relief under this chapter.''.

SEC. 414. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

    Section 523(a)(16) of title 11, United States Code, is amended--
            (1) by striking ``dwelling'' the first place it appears;
            (2) by striking ``ownership or'' and inserting 
        ``ownership,'';
            (3) by striking ``housing'' the first place it appears; and
            (4) by striking ``but only'' and all that follows through 
        ``but nothing in this paragraph'' 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, and until 
        such time as the debtor or trustee has surrendered any legal, 
        equitable or possessory interest in such unit, such 
        corporation, or such lot, but nothing in this paragraph''.

SEC. 415. 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 Federal 
or State law that is not a bankruptcy law, or other requirement that 
representation at the meeting of creditors under subsection (a) be by 
an attorney, a creditor holding a consumer debt or any representative 
of the creditor (which may include an entity or an employee of an 
entity and may be a representative for more than 1 creditor) shall be 
permitted to appear at and participate in the meeting of creditors in a 
case under chapter 7 or 13, either alone or in conjunction with an 
attorney for the creditor. Nothing in this subsection shall be 
construed to require any creditor to be represented by an attorney at 
any meeting of creditors.''.

SEC. 416. 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 first sentence by striking ``until the case is 
        converted or dismissed, whichever occurs first''; and
            (2) in the second 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. 417. 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. 418. FACTORS FOR COMPENSATION OF PROFESSIONAL PERSONS.

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

SEC. 419. APPOINTMENT OF ELECTED TRUSTEE.

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

            Subtitle B--Small Business Bankruptcy Provisions

SEC. 421. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

    Section 1125 of title 11, United States Code, is amended by 
striking subsection (f) and inserting the following:
    ``(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 
        under 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 later than 20 days 
        before the date of the hearing on confirmation of the plan; and
            ``(C) the hearing on the disclosure statement may be 
        combined with the hearing on confirmation of a plan.''.

SEC. 422. DEFINITIONS; EFFECT OF DISCHARGE.

    (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'--
                    ``(A) subject to subparagraph (B), means a person 
                (including any affiliate of such person that is also a 
                debtor 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 $4,000,000 (excluding debts 
                owed to 1 or more affiliates or insiders) for a case in 
                which the United States trustee has appointed under 
                section 1102(a)(1) a committee of unsecured creditors 
                that the court has determined is sufficiently active 
                and representative to provide effective oversight of 
                the debtor; and
                    ``(B) does not include any member of a group of 
                affiliated debtors that has aggregate noncontingent 
                liquidated secured and unsecured debts in an amount 
                greater than $4,000,000 (excluding debt owed to 1 or 
                more affiliates or insiders);''.
    (b) Effect of Discharge.--Section 524 of title 11, United States 
Code, as amended by section 204 of this Act, is amended by adding at 
the end the following:
    ``(j)(1) An individual who is injured by the willful failure of a 
creditor to substantially comply with the requirements specified in 
subsections (c) and (d), or by any willful violation of the injunction 
operating under subsection (a)(2), shall be entitled to recover--
            ``(A) the greater of--
                    ``(i) the amount of actual damages; or
                    ``(ii) $1,000; and
            ``(B) costs and attorneys' fees.
    ``(2) An action to recover for a violation specified in paragraph 
(1) may not be brought as a class action.''.
    (c) Conforming Amendment.--Section 1102(a)(3) of title 11, United 
States Code, is amended by inserting ``debtor'' after ``small 
business''.

SEC. 423. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

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

SEC. 424. UNIFORM NATIONAL REPORTING REQUIREMENTS.

    (a) Reporting Required.--
            (1) In general.--Chapter 3 of title 11, United States Code, 
        is amended by inserting after section 307 the following:
``Sec. 308. Debtor reporting requirements
    ``(1) For purposes of this section, the term `profitability' means, 
with respect to a debtor, the amount of money that the debtor has 
earned or lost during current and recent fiscal periods.
    ``(2) A small business debtor shall file periodic financial and 
other reports containing information including--
            ``(A) the debtor's profitability;
            ``(B) reasonable approximations of the debtor's projected 
        cash receipts and cash disbursements over a reasonable period;
            ``(C) comparisons of actual cash receipts and disbursements 
        with projections in prior reports;
            ``(D)(i) whether the debtor is--
                    ``(I) in compliance in all material respects with 
                postpetition requirements imposed by this title and the 
                Federal Rules of Bankruptcy Procedure; and
                    ``(II) timely filing tax returns and paying taxes 
                and other administrative claims when due; and
            ``(ii) if the debtor is not in compliance with the 
        requirements referred to in clause (i)(I) or filing tax returns 
        and making the payments referred to in clause (i)(II), what the 
        failures are and how, at what cost, and when the debtor intends 
        to remedy such failures; and
            ``(iii) such other matters as are in the best interests of 
        the debtor and creditors, and in the public interest in fair 
        and efficient procedures under chapter 11 of this title.''.
            (2) Clerical amendment.--The table of sections for chapter 
        3 of title 11, United States Code, is amended by inserting 
        after the item relating to section 307 the following:

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

SEC. 425. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.

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

SEC. 426. DUTIES IN SMALL BUSINESS CASES.

    (a) Duties in Chapter 11 Cases.--Title 11, 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 unless the court waives that requirement after notice 
and hearing, upon a finding of extraordinary and compelling 
circumstances;
            ``(3) timely file all schedules and statements of financial 
        affairs, unless the court, after notice and a hearing, grants 
        an extension, which shall not extend such time period to a date 
        later than 30 days after the date of the order for relief, 
        absent extraordinary and compelling circumstances;
            ``(4) file all postpetition financial and other reports 
        required by the Federal Rules of Bankruptcy Procedure or by 
        local rule of the district court;
            ``(5) subject to section 363(c)(2), maintain insurance 
        customary and appropriate to the industry;
            ``(6)(A) timely file tax returns;
            ``(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, unless the court waives that requirement 
        after notice and hearing, upon a finding of extraordinary and 
        compelling circumstances; and
            ``(7) allow the United States trustee, or a designated 
        representative of the United States trustee, to inspect the 
        debtor's business premises, books, and records at reasonable 
        times, after reasonable prior written notice, unless notice is 
        waived by the debtor.''.
    (b) Technical Amendment.--The table of sections for 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. 427. PLAN FILING AND CONFIRMATION DEADLINES.

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

SEC. 428. 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).''.

SEC. 429. PROHIBITION AGAINST EXTENSION OF TIME.

    Section 105(d) of title 11, United States Code, is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2)(B)(vi), by striking the period at the 
        end and inserting ``; and''; and
            (3) 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), except as provided 
        in section 1121(e)(3).''.

SEC. 430. DUTIES OF THE UNITED STATES TRUSTEE.

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

SEC. 431. SCHEDULING CONFERENCES.

    Section 105(d) of title 11, United States Code, as amended by 
section 429 of this Act, is amended--
            (1) in the matter preceding paragraph (1) by striking
        ``, may'';
            (2) by striking paragraph (1) and inserting the following:
            ``(1) shall hold such status conferences as are necessary 
        to further the expeditious and economical resolution of the 
        case; and''; 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. 432. SERIAL FILER PROVISIONS.

    Section 362 of title 11, United States Code, is amended--
            (1) in subsection (j), as redesignated by section 305(1) of 
        this Act--
                    (A) by striking ``An'' and inserting ``(1) Except 
                as provided in paragraph (2), an''; and
                    (B) by adding at the end the following:
    ``(2) If such violation is based on an action taken by an entity in 
the good faith belief that subsection (h) applies to the debtor, the 
recovery under paragraph (1) against such entity shall be limited to 
actual damages.''; and
            (2) by inserting after subsection (j), as added by section 
        419 of this Act, the following:
    ``(k)(1) Except as provided in paragraph (2), 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--
            ``(A) is a debtor in a small business case pending at the 
        time the petition is filed;
            ``(B) was a debtor in a small business case that was 
        dismissed for any reason by an order that became final in the 
        2-year period ending on the date of the order for relief 
        entered with respect to the petition;
            ``(C) was a debtor in a small business case in which a plan 
        was confirmed in the 2-year period ending on the date of the 
        order for relief entered with respect to the petition; or
            ``(D) is an entity that has succeeded to substantially all 
        of the assets or business of a small business debtor described 
        in subparagraph (A), (B), or (C).
    ``(2) Paragraph (1) does not apply to the filing of a petition if 
the debtor proves by a preponderance of the evidence that--
            ``(A) the filing of that petition resulted from 
        circumstances beyond the control of the debtor not foreseeable 
        at the time the case then pending was filed; and
            ``(B) it is more likely than not that the court will 
        confirm a feasible plan, but not a liquidating plan, within a 
        reasonable period of time.''.

SEC. 433. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND APPOINTMENT 
              OF TRUSTEE.

    (a) Expanded Grounds for Dismissal or Conversion.--Section 1112 of 
title 11, United States Code, is amended by striking subsection (b) and 
inserting the following:
    ``(b)(1) Except as provided in paragraph (2), in subsection (c), 
and section 1104(a)(3), on request of a party in interest, and after 
notice and a hearing, the court shall convert a case under this chapter 
to a case under chapter 7 or dismiss a case under this chapter, 
whichever is in the best interest of creditors and the estate, if the 
movant establishes cause.
    ``(2) The relief provided in paragraph (1) shall not be granted if 
the debtor or another party in interest objects and establishes by a 
preponderance of the evidence that--
            ``(A) it is more likely than not that a plan will be 
        confirmed within--
                    ``(i) a period of time fixed under this title or by 
                order of the court entered under section 1121(e)(3); or
                    ``(ii) a reasonable period of time if no period of 
                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)(I) the act or omission will be cured within 
                a reasonable period of time fixed by the court, but 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
                    ``(II) compelling circumstances beyond the control 
                of the debtor justify an extension.
    ``(3) The court shall commence the hearing on any motion under this 
subsection not later than 30 days after filing of the motion, and shall 
decide the motion 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.
    ``(4) 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) 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;
            ``(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.
    ``(5) The court shall commence the hearing on any motion under this 
subsection not later than 30 days after filing of the motion, and shall 
decide the motion 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, but the court determines that the appointment of 
        a trustee is in the best interests of creditors and the 
        estate.''.

SEC. 434. STUDY OF OPERATION OF TITLE 11, UNITED STATES CODE, WITH 
              RESPECT TO SMALL BUSINESSES.

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

SEC. 435. PAYMENT OF INTEREST.

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

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETITION.

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

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

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

           TITLE VI--IMPROVED BANKRUPTCY STATISTICS AND DATA

SEC. 601. AUDIT PROCEDURES.

    (a) Amendments.--Section 586 of title 28, United States Code, is 
amended--
            (1) in subsection (a), by striking paragraph (6) and 
        inserting the following:
            ``(6) make such reports as the Attorney General directs, 
        including the results of audits performed under subsection (f); 
        and''; and
            (2) by adding at the end the following:
    ``(f)(1)(A) The Attorney General shall establish procedures to 
determine the accuracy, veracity, and completeness of petitions, 
schedules, and other information which the debtor is required to 
provide under sections 521 and 1322 of title 11, and, if applicable, 
section 111 of title 11, in individual cases filed under chapter 7 or 
13 of such title.
    ``(B) Those procedures shall--
            ``(i) establish a method of selecting appropriate qualified 
        persons to contract to perform those audits;
            ``(ii) establish a method of randomly selecting cases to be 
        audited, except that not less than 1 out of every 250 cases in 
        each Federal judicial district shall be selected for audit;
            ``(iii) require audits for schedules of income and expenses 
        which reflect greater than average variances from the 
        statistical norm of the district in which the schedules were 
        filed if those variances occur by reason of higher income or 
        higher expenses than the statistical norm of the disctrict in 
        which the schedules were filed; and
            ``(iv) include procedures for providing, not less 
        frequently than annually, public information concerning the 
        aggregate results of the audits referred to in this 
        subparagraph, including the percentage of cases, by district, 
        in which a material misstatement of income or expenditures is 
        reported.
    ``(2) The United States trustee for each district may contract with 
auditors to perform audits in cases designated by the United States 
trustee according to the procedures established under paragraph (1).
    ``(3)(A) The report of each audit conducted under this subsection 
shall be filed with the court and transmitted to the United States 
trustee. Each report shall clearly and conspicuously specify any 
material misstatement of income or expenditures or of assets identified 
by the person performing the audit. In any case where a material 
misstatement of income or expenditures or of assets has been reported, 
the clerk of the bankruptcy court shall give notice of the misstatement 
to the creditors in the case.
    ``(B) If a material misstatement of income or expenditures or of 
assets is reported, the United States trustee shall--
            ``(i) report the material misstatement, if appropriate, to 
        the United States Attorney under section 3057 of title 18; and
            ``(ii) if advisable, take appropriate action, including 
        commencing an adversary proceeding to revoke the debtor's 
        discharge under section 727(d) of title 11.''.
    (b) Amendments to Section 521 of Title 11, United States Code.--
Paragraphs (3) and (4) of section 521(a) of title 11, United States 
Code, as amended by section 315 of this Act, are each amended by 
inserting ``or an auditor appointed under section 586 of title 28'' 
after ``serving in the case'' each place that term appears.
    (c) Amendments to Section 727 of Title 11, United States Code.--
Section 727(d) of title 11, United States Code, is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) the debtor has failed to explain satisfactorily--
                    ``(A) a material misstatement in an audit performed 
                under section 586(f) of title 28; or
                    ``(B) a failure to make available for inspection 
                all necessary accounts, papers, documents, financial 
                records, files, and any other papers, things, or 
                property belonging to the debtor that are requested for 
                an audit conducted under section 586(f).''.
    (d) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

SEC. 602. IMPROVED BANKRUPTCY STATISTICS.

    (a) Amendment.--Chapter 6 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 159. Bankruptcy statistics
    ``(a) The clerk of each district court shall compile statistics 
regarding individual debtors with primarily consumer debts seeking 
relief under chapters 7, 11, and 13 of title 11. Those statistics shall 
be in a form prescribed by the Director of the Administrative Office of 
the United States Courts (referred to in this section as the `Office').
    ``(b) The Director shall--
            ``(1) compile the statistics referred to in subsection (a);
            ``(2) make the statistics available to the public; and
            ``(3) not later than October 31, 1999, and annually 
        thereafter, prepare, and submit to Congress a report concerning 
        the information collected under subsection (a) that contains an 
        analysis of the information.
    ``(c) The compilation required under subsection (b) shall--
            ``(1) be itemized, by chapter, with respect to title 11;
            ``(2) be presented in the aggregate and for each district; 
        and
            ``(3) include information concerning--
                    ``(A) the total assets and total liabilities of the 
                debtors described in subsection (a), and in each 
                category of assets and liabilities, as reported in the 
                schedules prescribed under section 2075 and filed by 
                those debtors;
                    ``(B) the total current monthly income, projected 
                monthly net income, and average income, and average 
                expenses of those debtors as reported on the schedules 
                and statements that each such debtor files under 
                sections 111, 521, and 1322 of title 11;
                    ``(C) the aggregate amount of debt discharged in 
                the reporting period, determined as the difference 
                between the total amount of debt and obligations of a 
                debtor reported on the schedules and the amount of such 
                debt reported in categories which are predominantly 
                nondischargeable;
                    ``(D) the average period of time between the filing 
                of the petition and the closing of the case;
                    ``(E) for the reporting period--
                            ``(i) the number of cases in which a 
                        reaffirmation was filed; and
                            ``(ii)(I) the total number of 
                        reaffirmations filed;
                            ``(II) of those cases in which a 
                        reaffirmation was filed, the number in which 
                        the debtor was not represented by an attorney; 
                        and
                            ``(III) of the cases under each of 
                        subclauses (I) and (II), the number of cases in 
                        which the reaffirmation was approved by the 
                        court;
                    ``(F) with respect to cases filed under chapter 13 
                of title 11, for the reporting period--
                            ``(i)(I) the number of cases in which a 
                        final order was entered determining the value 
                        of property securing a claim in an amount less 
                        than the amount of the claim; and
                            ``(II) the number of final orders 
                        determining the value of property securing a 
                        claim issued;
                            ``(ii) the number of cases dismissed for 
                        failure to make payments under the plan; and
                            ``(iii) the number of cases in which the 
                        debtor filed another case during the 6-year 
                        period preceding the date of filing;
                    ``(G) the number of cases in which creditors were 
                fined for misconduct and any amount of punitive damages 
                awarded by the court for creditor misconduct; and
                    ``(H) the number of cases in which sanctions under 
                Rule 9011 of the Federal Rules of Bankruptcy Procedure 
                were imposed against debtor's counsel and damages 
                awarded under such rule.''.
    (b) Clerical Amendment.--The table of sections for chapter 6 of 
title 28, United States Code, is amended by adding at the end the 
following:

``159. Bankruptcy statistics.''.

    (c) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

SEC. 603. UNIFORM RULES FOR THE COLLECTION OF BANKRUPTCY DATA.

    (a) Amendment.--Chapter 39 of title 28, United States Code, is 
amended by inserting after section 589a the following:
``Sec. 589b. Bankruptcy data
    ``(a) Within a reasonable period of time after the effective date 
of this section, the Attorney General of the United States shall 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) Each report referred to in subsection (a) shall be designed 
(and the requirements as to place and manner of filing shall be 
established) so as to facilitate compilation of data and maximum 
practicable access of the public, by--
            ``(1) physical inspection at 1 or more central filing 
        locations; and
            ``(2) electronic access through the Internet or other 
        appropriate media.
    ``(c)(1) The information required to be filed in the reports 
referred to in subsection (b) shall be information that is--
            ``(A) in the best interests of debtors and creditors, and 
        in the public interest; and
            ``(B) reasonable and adequate information to evaluate the 
        efficiency and practicality of the Federal bankruptcy system.
    ``(2) In issuing rules proposing the forms referred to in 
subsection (a), the Attorney General shall strike the best achievable 
practical balance between--
            ``(A) the reasonable needs of the public for information 
        about the operational results of the Federal bankruptcy system; 
        and
            ``(B) economy, simplicity, and lack of undue burden on 
        persons with a duty to file reports.
    ``(d)(1) Final reports proposed for adoption by trustees under 
chapters 7, 12, and 13 of title 11 shall include with respect to a case 
under such title, by appropriate category--
            ``(A) information about the length of time the case was 
        pending;
            ``(B) assets abandoned;
            ``(C) assets exempted;
            ``(D) receipts and disbursements of the estate;
            ``(E) expenses of administration;
            ``(F) claims asserted;
            ``(G) claims allowed; and
            ``(H) distributions to claimants and claims discharged 
        without payment.
    ``(2) In cases under chapters 12 and 13 of title 11, final reports 
proposed for adoption by trustees shall include--
            ``(A) the date of confirmation of the plan;
            ``(B) each modification to the plan; and
            ``(C) defaults by the debtor in performance under the plan.
    ``(3) The information described in paragraphs (1) and (2) shall be 
in addition to such other matters as are required by law for a final 
report or as the Attorney General, in the discretion of the Attorney 
General, may propose for a final report.
    ``(e)(1) Periodic reports proposed for adoption by trustees or 
debtors in possession under chapter 11 of title 11 shall include--
            ``(A) information about the standard industry 
        classification, published by the Department of Commerce, for 
        the businesses conducted by the debtor;
            ``(B) the length of time the case has been pending;
            ``(C) the number of full-time employees--
                    ``(i) as of the date of the order for relief; and
                    ``(ii) at the end of each reporting period since 
                the case was filed;
            ``(D) cash receipts, cash disbursements, and profitability 
        of the debtor for the most recent period and cumulatively since 
        the date of the order for relief;
            ``(E) 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;
            ``(F) all professional fees approved by the court in the 
        case for the most recent period and cumulatively since the date 
        of the order for relief (separately reported, for the 
        professional fees incurred by or on behalf of the debtor, 
        between those that would have been incurred absent a bankruptcy 
        case and those that would not have been so incurred); and
            ``(G) 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.
    ``(2) The information described in paragraph (1) shall be in 
addition to such other matters as are required by law for a periodic 
report or as the Attorney General, in the discretion of the Attorney 
General, may propose for a periodic report.''.
    (b) Technical Amendment.--The table of sections for chapter 39 of 
title 28, United States Code, is amended by adding at the end the 
following:

``589b. Bankruptcy data.''.

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

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

                  TITLE VII--BANKRUPTCY TAX PROVISIONS

SEC. 701. TREATMENT OF CERTAIN LIENS.

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

SEC. 702. EFFECTIVE NOTICE TO GOVERNMENT.

    (a) Effective Notice to Governmental Units.--Section 342 of title 
11, United States Code, as amended by section 315(a) of this Act, is 
amended by adding at the end the following:
    ``(g)(1) 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, applicable rule, other provision of law, or order of the 
court, shall identify the department, agency, or instrumentality 
through which the debtor is indebted.
    ``(2) The debtor shall identify (with information such as a 
taxpayer identification number, loan, account or contract number, or 
real estate parcel number, if applicable), and describe the underlying 
basis for the claim of the governmental unit.
    ``(3) If the liability of the debtor 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 that individual, entity, organization, or name.
    ``(h) The clerk shall keep and update on a quarterly basis, in such 
form and manner as the Director of the Administrative Office of the 
United States Courts prescribes, a register in which a governmental 
unit may designate or redesignate a mailing address for service of 
notice in cases pending in the district. The clerk shall make such 
register available to debtors.''.
    (b) Adoption of Rules Providing Notice.--
            (1) In general.--Within a reasonable period of time after 
        the date of enactment of this Act, the Advisory Committee on 
        Bankruptcy Rules of the Judicial Conference shall propose for 
        adoption enhanced rules for providing notice to Federal, State, 
        and local government units that have regulatory authority over 
        the debtor or that may be creditors in the debtor's case.
            (2) Persons notified.--The rules proposed under paragraph 
        (1) shall be reasonably calculated to ensure that notice will 
        reach the representatives of the governmental unit (or 
        subdivision thereof) who will be the appropriate persons 
        authorized to act upon the notice.
            (3) Rules required.--At a minimum, the rules under 
        paragraph (1) should require that the debtor--
                    (A) identify in the schedules and the notice, the 
                subdivision, agency, or entity with respect to which 
                such notice should be received;
                    (B) 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 in any case in which--
                            (i) the debtor may be a successor in 
                        interest; or
                            (ii) may not be the same entity as the 
                        entity that incurred the debt or obligation; 
                        and
                    (C) identify, in appropriate schedules, served 
                together with the notice--
                            (i) the property with respect to which the 
                        claim or regulatory obligation may have arisen, 
                        if applicable;
                            (ii) the nature of such claim or regulatory 
                        obligation; and
                            (iii) 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), is amended by adding at the 
end the following:
    ``(i) A notice that does not comply with subsections (d) and (e) 
shall not be effective unless the debtor demonstrates by clear and 
convincing evidence that--
            ``(1) timely notice was given in a manner reasonably 
        calculated to satisfy the requirements of this section; and
            ``(2) either--
                    ``(A) the notice was timely sent to the address 
                provided in the register maintained by the clerk of the 
                district in which the case was pending for such 
                purposes; or
                    ``(B) no 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.''.

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

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

SEC. 704. RATE OF INTEREST ON TAX CLAIMS.

    (a) In General.--Subchapter I of chapter 5 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 511. Rate of interest on tax claims
    ``If any provision of this title requires the payment of interest 
on a tax claim or the payment of interest to enable a creditor to 
receive the present value of the allowed amount of a tax claim, the 
rate of interest shall be as follows:
            ``(1) In the case of secured tax claims, unsecured ad 
        valorem tax claims, other unsecured tax claims in which 
        interest is required to be paid under section 726(a)(5), and 
        administrative tax claims paid under section 503(b)(1), the 
        rate shall be determined under applicable nonbankruptcy law.
            ``(2)(A) In the case of any tax claim other than a claim 
        described in paragraph (1), the minimum rate of interest shall 
        be a percentage equal to the sum of--
                    ``(i) 3; plus
                    ``(ii) the Federal short-term rate rounded to the 
                nearest full percent, determined under section 1274(d) 
                of the Internal Revenue Code of 1986.
            ``(B) In the case of any claim for Federal income taxes, 
        the minimum rate of interest shall be subject to any adjustment 
        that may be required under section 6621(d) of the Internal 
        Revenue Code of 1986.
            ``(C) In the case of taxes paid under a confirmed plan or 
        reorganization under this title, the minimum rate of interest 
        shall be determined as of the calendar month in which the plan 
        is confirmed.''.
    (b) Clerical Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 510 the following:

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

SEC. 705. TOLLING OF PRIORITY OF TAX CLAIM TIME PERIODS.

    Section 507(a)(8)(A) of title 11, United States Code, as 
redesignated by section 221 of this Act, is amended--
            (1) in clause (i), by inserting before the semicolon at the 
        end, the following: ``, plus any time during which the stay of 
        proceedings was in effect in a prior case under this title, 
        plus 6 months''; and
            (2) by striking clause (ii) and inserting the following:
                            ``(ii) assessed within 240 days before the 
                        date of the filing of the petition, exclusive 
                        of--
                                    ``(I) any time during which an 
                                offer in compromise with respect to 
                                that tax, was pending or in effect 
                                during that 240-day period, plus 30 
                                days;
                                    ``(II) the lesser of--
                                            ``(aa) any time during 
                                        which an installment agreement 
                                        with respect to that tax was 
                                        pending or in effect during 
                                        that 240-day period, plus 30 
                                        days; or
                                            ``(bb) 1 year; and
                                    ``(III) any time during which a 
                                stay of proceedings against collections 
                                was in effect in a prior case under 
                                this title during that 240-day period; 
                                plus 6 months.''.

SEC. 706. PRIORITY PROPERTY TAXES INCURRED.

    Section 507(a)(9)(B) of title 11, United States Code, as 
redesignated by section 221 of this Act, is amended by striking 
``assessed'' and inserting ``incurred''.

SEC. 707. CHAPTER 13 DISCHARGE OF FRAUDULENT AND OTHER TAXES.

    Section 1328(a)(2) of title 11, United States Code, as amended by 
section 228 of this Act, is amended by inserting ``(1),'' after 
``paragraph''.

SEC. 708. CHAPTER 11 DISCHARGE OF FRAUDULENT TAXES.

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

SEC. 709. STAY OF TAX PROCEEDINGS.

    (a) Section 362 Stay Limited to Prepetition Taxes.--Section 
362(a)(8) of title 11, United States Code, is amended by inserting 
before the semicolon at the end the following: ``, with respect to a 
tax liability for a taxable period ending before the order for relief 
under section 301, 302, or 303''.
    (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. 710. PERIODIC PAYMENT OF TAXES IN CHAPTER 11 CASES.

    Section 1129(a)(9) of title 11, United States Code, is amended--
            (1) in subparagraph (B), by striking ``and'' at the end; 
        and
            (2) in subparagraph (C), by striking ``deferred cash 
        payments, over a period not exceeding six years after the date 
        of assessment of such claim,'' and all that follows through the 
        end of the subparagraph, and inserting ``regular installment 
        payments--
                            ``(i) of a total value, as of the effective 
                        date of the claim, equal to the allowed amount 
                        of such claim in cash, but in no case with a 
                        balloon payment; and
                            ``(ii) beginning not later than the 
                        effective date of the plan and ending on the 
                        earlier of--
                                    ``(I) the date that is 5 years 
                                after the date of the filing of the 
                                petition; or
                                    ``(II) the last date payments are 
                                to be made under the plan to unsecured 
                                creditors; and''; and
            (3) by adding at the end the following:
                    ``(D) with respect to a secured claim which would 
                otherwise meet the description on an unsecured claim of 
                a governmental unit under section 507(a)(8), but for 
                the secured status of that claim, the holder of that 
                claim will receive on account of that claim, cash 
                payments, in the same manner and over the same period, 
                as prescribed in subparagraph (C).''.

SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

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

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

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

SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS.

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

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

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

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

    The second sentence of section 505(b) of title 11, United States 
Code, as amended by section 703 of this Act, is amended by inserting 
``the estate,'' after ``misrepresentation,''.

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

    (a) Filing of Prepetition Tax Returns Required for Plan 
Confirmation.--Section 1325(a) of title 11, United States Code, as 
amended by section 212 of this Act, 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 applicable Federal, 
        State, and local tax returns as required by section 1309.''.
    (b) Additional Time Permitted for Filing Tax Returns.--
            (1) In general.--Chapter 13 of title 11, United States 
        Code, as amended by section 309(c) of this Act, is amended by 
        adding at the end the following:
``Sec. 1309. Filing of prepetition tax returns
    ``(a) Not later than the day before the day on which the first 
meeting of the creditors is convened under section 341(a), the debtor 
shall file with appropriate tax authorities all tax returns for all 
taxable periods ending during the 3-year period ending on the date of 
the filing of the petition.
    ``(b)(1) Subject to paragraph (2), if the tax returns required by 
subsection (a) have not been filed by the date on which the first 
meeting of creditors is convened under section 341(a), the trustee may 
continue that meeting for a reasonable period of time to allow the 
debtor an additional period of time to file any unfiled returns, but 
such additional period of time shall not extend beyond--
            ``(A) for any return that is past due as of the date of the 
        filing of the petition, the date that is 120 days after the 
        date of that first meeting; or
            ``(B) for any return that is not past due as of the date of 
        the filing of the petition, the later of--
                    ``(i) the date that is 120 days after the date of 
                that first meeting; or
                    ``(ii) the date on which the return is due under 
                the last automatic extension of time for filing that 
                return to which the debtor is entitled, and for which 
                request has been timely made, according to applicable 
                nonbankruptcy law.
    ``(2) Upon notice and hearing, and order entered before the tolling 
of any applicable filing period determined under this subsection, if 
the debtor demonstrates by clear and convincing evidence that the 
failure to file a return as required under this subsection is 
attributable to circumstances beyond the control of the debtor, the 
court may extend the filing period established by the trustee under 
this subsection for--
            ``(A) a period of not more than 30 days for returns 
        described in paragraph (1); and
            ``(B) a period not to extend after the applicable extended 
        due date for a return described in paragraph (2).
    ``(c) For purposes of this section, the term `return' includes a 
return prepared pursuant to section 6020 (a) or (b) of the Internal 
Revenue Code of 1986, or a similar State or local law, or written 
stipulation to a judgment entered by a nonbankruptcy tribunal.''.
    (2) Conforming amendment.--The table of sections for chapter 13 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 1308 the following:

``1309. Filing of prepetition tax returns.''.

    (c) Dismissal or Conversion on Failure To Comply.--Section 1307 of 
title 11, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d), the following:
    ``(e) Upon the failure of the debtor to file a tax return under 
section 1309, on request of a party in interest or the United States 
trustee and after notice and a hearing, the court shall dismiss the 
case.''.
    (d) Timely Filed Claims.--Section 502(b)(9) of title 11, United 
States Code, is amended by inserting before the period at the end the 
following ``, and except that in a case under chapter 13 of this title, 
a claim of a governmental unit for a tax with respect to a return filed 
under section 1309 shall be timely if the claim is filed on or before 
the date that is 60 days after that return was filed in accordance with 
applicable requirements''.
    (e) Rules for Objections to Claims and to Confirmation.--It is the 
sense of Congress that the Advisory Committee on Bankruptcy Rules of 
the Judicial Conference should, within a reasonable period of time 
after the date of 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 the date that is 60 days after the date on which the 
        debtor files all tax returns required under sections 1309 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 with respect to which a return is required to be filed 
        under section 1309 of title 11, United States Code, shall be 
        filed until such return has been filed as required.

SEC. 717. STANDARDS FOR TAX DISCLOSURE.

    Section 1125(a)(1) of title 11, United States Code, is amended--
            (1) by inserting ``including a 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,'' after 
        ``records''; and
            (2) by striking ``a hypothetical reasonable investor 
        typical of holders of claims or interests'' and inserting 
        ``such a hypothetical investor''.

SEC. 718. SETOFF OF TAX REFUNDS.

    Section 362(b) of title 11, United States Code, as amended by 
section 402 of this Act, is amended--
            (1) in paragraph (25), by striking ``or'' at the end;
            (2) in paragraph (26), by striking the period at the end 
        and inserting ``; or''; and
            (3) by inserting after paragraph (26) the following:
            ``(27) under subsection (a), of the setoff of an income tax 
        refund, by a governmental unit, with respect to a taxable 
        period that ended before the order for relief against an income 
        tax liability for a taxable period that also ended before the 
        order for relief, unless--
                    ``(A) before that setoff, an action to determine 
                the amount or legality of that tax liability under 
                section 505(a) was commenced; or
                    ``(B) in any case in which 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, 
                in which case the governmental unit may hold the refund 
                pending the resolution of the action.''.

           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

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

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

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

``Sec.
``1501. Purpose and scope of application.
                   ``SUBCHAPTER I--GENERAL PROVISIONS

``1502. Definitions.
``1503. International obligations of the United States.
``1504. Commencement of ancillary case.
``1505. Authorization to act in a foreign country.
``1506. Public policy exception.
``1507. Additional assistance.
``1508. Interpretation.
``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``1509. Right of direct access.
``1510. Limited jurisdiction.
``1511. Commencement of case under section 301 or 303.
``1512. Participation of a foreign representative in a case under this 
                            title.
``1513. Access of foreign creditors to a case under this title.
``1514. Notification to foreign creditors concerning a case under this 
                            title.
    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``1515. Application for recognition of a foreign proceeding.
``1516. Presumptions concerning recognition.
``1517. Order recognizing a foreign proceeding.
``1518. Subsequent information.
``1519. Relief that may be granted upon petition for recognition of a 
                            foreign proceeding.
``1520. Effects of recognition of a foreign main proceeding.
``1521. Relief that may be granted upon recognition of a foreign 
                            proceeding.
``1522. Protection of creditors and other interested persons.
``1523. Actions to avoid acts detrimental to creditors.
``1524. Intervention by a foreign representative.
     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

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

``1528. Commencement of a case under this title after recognition of a 
                            foreign main proceeding.
``1529. Coordination of a case under this title and a foreign 
                            proceeding.
``1530. Coordination of more than 1 foreign proceeding.
``1531. Presumption of insolvency based on recognition of a foreign 
                            main proceeding.
``1532. Rule of payment in concurrent proceedings.
``Sec. 1501. Purpose and scope of application
    ``(a) The purpose of this chapter is to incorporate the Model Law 
on Cross-Border Insolvency so as to provide effective mechanisms for 
dealing with cases of cross-border insolvency with the objectives of--
            ``(1) cooperation between--
                    ``(A) United States courts, United States Trustees, 
                trustees, examiners, debtors, and debtors in 
                possession; and
                    ``(B) the courts and other competent authorities of 
                foreign countries involved in cross-border insolvency 
                cases;
            ``(2) greater legal certainty for trade and investment;
            ``(3) fair and efficient administration of cross-border 
        insolvencies that protects the interests of all creditors, and 
        other interested entities, including the debtor;
            ``(4) protection and maximization of the value of the 
        debtor's assets; and
            ``(5) facilitation of the rescue of financially troubled 
        businesses, thereby protecting investment and preserving 
        employment.
    ``(b) This chapter applies if--
            ``(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 section 109(e) and who are citizens of the United States or 
        aliens lawfully admitted for permanent residence in the United 
        States; or
            ``(3) an entity subject to a proceeding under the 
        Securities Investor Protection Act of 1970 (84 Stat. 1636 et 
        seq.), 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. 1502. Definitions
    ``For the purposes of this chapter, the term--
            ``(1) `debtor' means an entity that is the subject of a 
        foreign proceeding;
            ``(2) `establishment' means any place of operations where 
        the debtor carries out a nontransitory economic activity;
            ``(3) `foreign court' means a judicial or other authority 
        competent to control or supervise a foreign proceeding;
            ``(4) `foreign main proceeding' means a foreign proceeding 
        taking place in the country where the debtor has the center of 
        its main interests;
            ``(5) `foreign nonmain proceeding' means a foreign 
        proceeding, other than a foreign main proceeding, taking place 
        in a country where the debtor has an establishment;
            ``(6) `trustee' includes a trustee, a debtor in possession 
        in a case under any chapter of this title, or a debtor under 
        chapter 9 of this title; 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. 1503. International obligations of the United States
    ``To the extent that this chapter conflicts with an obligation of 
the United States arising out of any treaty or other form of agreement 
to which it is a party with 1 or more other countries, the requirements 
of the treaty or agreement prevail.
``Sec. 1504. Commencement of ancillary case
    ``A case under this chapter is commenced by the filing of a 
petition for recognition of a foreign proceeding under section 1515.
``Sec. 1505. Authorization to act in a foreign country
    ``A trustee or another entity, including an examiner, may be 
authorized by the court to act in a foreign country on behalf of an 
estate created under section 541. An entity authorized to act under 
this section may act in any way permitted by the applicable foreign 
law.
``Sec. 1506. Public policy exception
    ``Nothing in this chapter prevents the court from refusing to take 
an action governed by this chapter if the action would be manifestly 
contrary to the public policy of the United States.
``Sec. 1507. Additional assistance
    ``(a) Subject to the specific limitations under other provisions of 
this chapter, the court, upon recognition of a foreign proceeding, may 
provide additional assistance to a foreign representative under this 
title or under other laws of the United States.
    ``(b) In determining whether to provide additional assistance under 
this title or under other laws of the United States, the court shall 
consider whether such additional assistance, consistent with the 
principles of comity, will reasonably assure--
            ``(1) just treatment of all holders of claims against or 
        interests in the debtor's property;
            ``(2) protection of claim holders in the United States 
        against prejudice and inconvenience in the processing of claims 
        in such foreign proceeding;
            ``(3) prevention of preferential or fraudulent dispositions 
        of property of the debtor;
            ``(4) distribution of proceeds of the debtor's property 
        substantially in accordance with the order prescribed by this 
        title; and
            ``(5) if appropriate, the provision of an opportunity for a 
        fresh start for the individual that such foreign proceeding 
        concerns.
``Sec. 1508. Interpretation
    ``In interpreting this chapter, the court shall consider its 
international origin, and the need to promote an application of this 
chapter that is consistent with the application of similar statutes 
adopted by foreign jurisdictions.

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

``Sec. 1509. Right of direct access
    ``(a) A foreign representative is entitled to commence a case under 
section 1504 by filing a petition for recognition under section 1515, 
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 1510, a foreign 
representative shall have 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 1510, 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 
Federal or State 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 1515 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. 1510. Limited jurisdiction
    ``The sole fact that a foreign representative files a petition 
under section 1515 does not subject the foreign representative to the 
jurisdiction of any court in the United States for any other purpose.
``Sec. 1511. Commencement of case under section 301 or 303
    ``(a) Upon recognition, a foreign representative may commence--
            ``(1) an involuntary case under section 303; or
            ``(2) a voluntary case under section 301 or 302, if the 
        foreign proceeding is a foreign main proceeding.
    ``(b) The petition commencing a case under subsection (a) must be 
accompanied by a 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) prior to such commencement.
``Sec. 1512. Participation of a foreign representative in a case under 
              this title
    ``Upon recognition of a foreign proceeding, the foreign 
representative in that proceeding is entitled to participate as a party 
in interest in a case regarding the debtor under this title.
``Sec. 1513. Access of foreign creditors to a case under this title
    ``(a) Foreign creditors have the same rights regarding the 
commencement of, and participation in, a case under this title as 
domestic creditors.
    ``(b)(1) Subsection (a) does not change or codify law in effect on 
the date of enactment of this chapter as to the priority of claims 
under section 507 or 726, except that the claim of a foreign creditor 
under section 507 or 726 shall not be given a lower priority than that 
of general unsecured claims without priority solely because the holder 
of such claim is a foreign creditor.
    ``(2)(A) Subsection (a) and paragraph (1) do not change or codify 
law in effect on the date of enactment of this chapter as to the 
allowability of foreign revenue claims or other foreign public law 
claims in a proceeding under this title.
    ``(B) Allowance and priority as to a foreign tax claim or other 
foreign public law claim shall be governed by any applicable tax treaty 
of the United States, under the conditions and circumstances specified 
therein.
``Sec. 1514. Notification to foreign creditors concerning a case under 
              this title
    ``(a) Whenever in a case under this title notice is to be given to 
creditors generally or to any class or category of creditors, such 
notice shall also be given to the known creditors generally, or to 
creditors in the notified class or category, that do not have addresses 
in the United States. The court may order that appropriate steps be 
taken with a view to notifying any creditor whose address is not yet 
known.
    ``(b) Such notification to creditors with foreign addresses 
described in subsection (a) shall be given individually, unless the 
court considers that, under the circumstances, some other form of 
notification would be more appropriate. No 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. 1515. 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. 1516. Presumptions concerning recognition
    ``(a) If the decision or certificate referred to in section 1515(b) 
indicates that the foreign proceeding is a foreign proceeding as 
defined in section 101 and that the person or body is a foreign 
representative as defined in section 101, the court is entitled to so 
presume.
    ``(b) The court is entitled to presume that documents submitted in 
support of the petition for recognition are authentic, whether or not 
they have been legalized.
    ``(c) In the absence of evidence to the contrary, the debtor's 
registered office, or habitual residence in the case of an individual, 
is presumed to be the center of the debtor's main interests.
``Sec. 1517. Order recognizing a foreign proceeding
    ``(a) Subject to section 1506, 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 
        1502;
            ``(2) the foreign representative applying for recognition 
        is a person or body as defined in section 101; and
            ``(3) the petition meets the requirements of section 1515.
    ``(b) The foreign proceeding shall be recognized--
            ``(1) as a foreign main proceeding if it is taking place in 
        the country where the debtor has the center of its main 
        interests; or
            ``(2) as a foreign nonmain proceeding if the debtor has an 
        establishment within the meaning of section 1502 in the foreign 
        country where the proceeding is pending.
    ``(c) A petition for recognition of a foreign proceeding shall be 
decided upon at the earliest possible time. Entry of an order 
recognizing a foreign proceeding 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. 1518. Subsequent information
    ``After the the petition for recognition of the foreign proceeding 
is filed, the foreign representative shall file with the court promptly 
a notice of change of status concerning--
            ``(1) any substantial change in the status of the foreign 
        proceeding or the status of the foreign representative's 
        appointment; and
            ``(2) any other foreign proceeding regarding the debtor 
        that becomes known to the foreign representative.
``Sec. 1519. Relief that may be granted upon petition for recognition 
              of a foreign proceeding
    ``(a) Beginning on the date on which a petition for recognition is 
filed and ending on the date on which 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 1521(a).
    ``(b) Unless extended under section 1521(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. 1520. 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;
            ``(2) a transfer, an 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; and
            ``(3) 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) 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) 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) does not affect the right of a foreign 
representative or an entity to file a petition commencing a case under 
this title or the right of any party to file claims or take other 
proper actions in such a case.
``Sec. 1521. Relief that may be granted upon recognition 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 the actions or proceedings have not been stayed under 
        section 1520(a);
            ``(2) staying execution against the debtor's assets to the 
        extent the execution has not been stayed under section 1520(a);
            ``(3) suspending the right to transfer, encumber or 
        otherwise dispose of any assets of the debtor to the extent 
        that right has not been suspended under section 1520(a);
            ``(4) providing for the examination of witnesses, the 
        taking of evidence or the delivery of information concerning 
        the debtor's assets, affairs, rights, obligations or 
        liabilities;
            ``(5) entrusting the administration or realization of all 
        or part of the debtor's assets within the territorial 
        jurisdiction of the United States to the foreign representative 
        or another person, including an examiner, authorized by the 
        court;
            ``(6) extending relief granted under section 1519(a); and
            ``(7) granting any additional relief that may be available 
        to a trustee, except for relief available under sections 522, 
        544, 545, 547, 548, 550, and 724(a).
    ``(b) Upon recognition of a foreign proceeding, whether main or 
nonmain, the court may, at the request of the foreign representative, 
entrust the distribution of all or part of the debtor's assets located 
in the United States to the foreign representative or another person, 
including an examiner, authorized by the court, if 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. 1522. Protection of creditors and other interested persons
    ``(a) The court may grant relief under section 1519 or 1521, or may 
modify or terminate relief under subsection (c), only if the interests 
of the creditors and other interested entities, including the debtor, 
are sufficiently protected.
    ``(b) The court may subject relief granted under section 1519 or 
1521, or the operation of the debtor's business under section 
1520(a)(2), to conditions that the court considers to be appropriate, 
including the giving of security or the filing of a bond.
    ``(c) The court may, at the request of the foreign representative 
or an entity affected by relief granted under section 1519 or 1521, or 
at its own motion, modify or terminate the relief referred to in 
subsection (b).
    ``(d) Section 1104(d) shall apply to the appointment of an examiner 
under this chapter. Any examiner shall comply with the qualification 
requirements imposed on a trustee by section 322.
``Sec. 1523. Actions to avoid acts detrimental to creditors
    ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a case concerning the debtor pending 
under another chapter of this title to initiate actions under sections 
522, 544, 545, 547, 548, 550, and 724(a).
    ``(b) In any case in which the foreign proceeding is a foreign 
nonmain proceeding, the court must be satisfied that an action under 
subsection (a) relates to assets that, under United States law, should 
be administered in the foreign nonmain proceeding.
``Sec. 1524. Intervention by a foreign representative
    ``Upon recognition of a foreign proceeding, the foreign 
representative may intervene in any proceedings in a State or Federal 
court in the United States in which the debtor is a party.

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

``Sec. 1525. Cooperation and direct communication between the court and 
              foreign courts or foreign representatives
    ``(a) Consistent with section 1501, the court shall cooperate to 
the maximum extent possible with foreign courts or foreign 
representatives, either directly or through the trustee.
    ``(b) The court is entitled to communicate directly with, or to 
request information or assistance directly from, foreign courts or 
foreign representatives, subject to the rights of parties in interest 
to notice and participation.
``Sec. 1526. Cooperation and direct communication between the trustee 
              and foreign courts or foreign representatives
    ``(a) Consistent with section 1501, the trustee or other person, 
including an examiner, authorized by the court, shall, subject to the 
supervision of the court, cooperate to the maximum extent possible with 
foreign courts or foreign representatives.
    ``(b) The trustee or other person, including an examiner, 
authorized by the court is entitled, subject to the supervision of the 
court, to communicate directly with foreign courts or foreign 
representatives.
``Sec. 1527. Forms of cooperation
    ``Cooperation referred to in sections 1525 and 1526 may be 
implemented by any appropriate means, including--
            ``(1) appointment of a person or body, including an 
        examiner, to act at the direction of the court;
            ``(2) communication of information by any means considered 
        appropriate by the court;
            ``(3) coordination of the administration and supervision of 
        the debtor's assets and affairs;
            ``(4) approval or implementation of agreements concerning 
        the coordination of proceedings; and
            ``(5) coordination of concurrent proceedings regarding the 
        same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``Sec. 1528. Commencement of a case under this title after recognition 
              of a foreign main proceeding
    ``After recognition of a foreign main proceeding, a case under 
another chapter of this title may be commenced only if the debtor has 
assets in the United States. The effects of such case shall be 
restricted to the assets of the debtor that are within the territorial 
jurisdiction of the United States and, to the extent necessary to 
implement cooperation and coordination under sections 1525, 1526, and 
1527, to other assets of the debtor that are within the jurisdiction of 
the court under sections 541(a), and 1334(e) of title 28, to the extent 
that such other assets are not subject to the jurisdiction and control 
of a foreign proceeding that has been recognized under this chapter.
``Sec. 1529. Coordination of a case under this title and a foreign 
              proceeding
    ``In any case in which a foreign proceeding and a case under 
another chapter of this title are taking place concurrently regarding 
the same debtor, the court shall seek cooperation and coordination 
under sections 1525, 1526, and 1527, and the following shall apply:
            ``(1) If the case in the United States is taking place at 
        the time the petition for recognition of the foreign proceeding 
        is filed--
                    ``(A) any relief granted under sections 1519 or 
                1521 must be consistent with the relief granted in the 
                case in the United States; and
                    ``(B) even if the foreign proceeding is recognized 
                as a foreign main proceeding, section 1520 does not 
                apply.
            ``(2) If a case in the United States under this title 
        commences after recognition, or after the filing of the 
        petition for recognition, of the foreign proceeding--
                    ``(A) any relief in effect under sections 1519 or 
                1521 shall be reviewed by the court and shall be 
                modified or terminated if inconsistent with the case in 
                the United States; and
                    ``(B) if the foreign proceeding is a foreign main 
                proceeding, the stay and suspension referred to in 
                section 1520(a) shall be modified or terminated if 
                inconsistent with the relief granted in the case in the 
                United States.
            ``(3) In granting, extending, or modifying relief granted 
        to a representative of a foreign nonmain proceeding, the court 
        must be satisfied that the relief relates to assets that, under 
        the 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 1528 and 1529, the court may grant any of the relief 
        authorized under section 305.
``Sec. 1530. Coordination of more than 1 foreign proceeding
    ``In matters referred to in section 1501, with respect to more than 
1 foreign proceeding regarding the debtor, the court shall seek 
cooperation and coordination under sections 1525, 1526, and 1527, and 
the following shall apply:
            ``(1) Any relief granted under section 1519 or 1521 to a 
        representative of a foreign nonmain proceeding after 
        recognition of a foreign main proceeding must be consistent 
        with the foreign main proceeding.
            ``(2) If a foreign main proceeding is recognized after 
        recognition, or after the filing of a petition for recognition, 
        of a foreign nonmain proceeding, any relief in effect under 
        section 1519 or 1521 shall be reviewed by the court and shall 
        be modified or terminated if inconsistent with the foreign main 
        proceeding.
            ``(3) If, after recognition of a foreign nonmain 
        proceeding, another foreign nonmain proceeding is recognized, 
        the court shall grant, modify, or terminate relief for the 
        purpose of facilitating coordination of the proceedings.
``Sec. 1531. Presumption of insolvency based on recognition of a 
              foreign main proceeding
    ``In the absence of evidence to the contrary, recognition of a 
foreign main proceeding is for the purpose of commencing a proceeding 
under section 303, proof that the debtor is generally not paying its 
debts as such debts become due.
``Sec. 1532. Rule of payment in concurrent proceedings
    ``Without prejudice to secured claims or rights in rem, a creditor 
who has received payment with respect to its claim in a foreign 
proceeding pursuant to a law relating to insolvency may not receive a 
payment for the same claim in a case under any other chapter of this 
title regarding the debtor, so long as the payment to other creditors 
of the same class is proportionately less than the payment the creditor 
has already received.''.
    (b) Clerical Amendment.--The table of chapters for title 11, United 
States Code, is amended by inserting after the item relating to chapter 
13 the following:

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

SEC. 802. 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, 304, 555 through 
        557, 559, and 560 apply in a case under chapter 15''; and
            (2) by adding at the end the following:
    ``(j) Chapter 15 applies only in a case under such chapter, except 
that--
            ``(1) sections 1513 and 1514 apply in all cases under this 
        title; and
            ``(2) section 1505 applies to trustees and to any other 
        entity (including an examiner) authorized by the court under 
        chapter 7, 11, or 12, to debtors in possession under chapter 11 
        or 12, and to debtors under chapter 9 who are authorized to act 
        under section 1505.''.
    (b) Definitions.--Paragraphs (23) and (24) of section 101 of title 
11, United States Code, are amended to read as follows:
            ``(23) `foreign proceeding' means a collective judicial or 
        administrative proceeding in a foreign country, 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 15 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 15 of title 11, nothing in''.
            (3) Duties of trustees.--Section 586(a)(3) of title 28, 
        United States Code, is amended by inserting ``15,'' after 
        ``chapter''.

SEC. 803. CLAIMS RELATING TO INSURANCE DEPOSITS IN CASES ANCILLARY TO 
              FOREIGN PROCEEDINGS.

    Section 304 of title 11, United States Code, is amended to read as 
follows:
``Sec. 304. Cases ancillary to foreign proceedings
    ``(a) For purposes of this section--
            ``(1) the term `domestic insurance company' means a 
        domestic insurance company, as such term is used in section 
        109(b)(2);
            ``(2) the term `foreign insurance company' means a foreign 
        insurance company, as such term is used in section 109(b)(3);
            ``(3) the term `United States claimant' means a beneficiary 
        of any deposit referred to in subsection (b) or any 
        multibeneficiary trust referred to in subsection (b);
            ``(4) the term `United States creditor' means, with respect 
        to a foreign insurance company--
                    ``(i) a United States claimant; or
                    ``(ii) any business entity that operates in the 
                United States and that is a creditor; and
            ``(5) the term `United States policyholder' means a holder 
        of an insurance policy issued in the United States.
    ``(b) The court may not grant relief under chapter 15 of this title 
with respect to any deposit, escrow, trust fund, or other security 
required or permitted under any applicable State insurance law or 
regulation for the benefit of claim holders in the United States.''.

                TITLE IX--FINANCIAL CONTRACT PROVISIONS

SEC. 901. BANKRUPTCY CODE AMENDMENTS.

    (a) Definitions of Forward Contract, Repurchase Agreement, 
Securities Clearing Agency, Swap Agreement, Commodity Contract, and 
Securities Contract.--Title 11, United States Code, is amended--
            (1) in section 101--
                    (A) in paragraph (25)--
                            (i) by striking ``means a contract'' and 
                        inserting ``means--
                    ``(A) a contract'';
                            (ii) by striking ``, or any combination 
                        thereof or option thereon;'' and inserting ``, 
                        or any other similar agreement;''; and
                            (iii) by adding at the end the following:
                    ``(B) a combination of agreements or transactions 
                referred to in subparagraphs (A) and (C);
                    ``(C) an option to enter into an agreement or 
                transaction referred to in subparagraph (A) or (B);
                    ``(D) a master netting agreement that provides for 
                an agreement or transaction referred to in subparagraph 
                (A), (B), or (C), together with all supplements to such 
                master netting agreement, without regard to whether 
                such master netting agreement provides for an agreement 
                or transaction that is not a forward contract under 
                this paragraph, except that such master netting 
                agreement shall be considered to be a forward contract 
                under this paragraph only with respect to each 
                agreement or transaction under such master netting 
                agreement that is referred to in subparagraph (A), (B) 
or (C); or
                    ``(E) a security agreement or arrangement, or other 
                credit enhancement, directly pertaining to a contract, 
                option, agreement, or transaction referred to in 
                subparagraph (A), (B), (C), or (D), but not to exceed 
                the actual value of such contract, option, agreement, 
                or transaction on the date of the filing of the 
                petition;'';
                    (B) by striking paragraph (47) and inserting the 
                following:
            ``(47) `repurchase agreement' and `reverse repurchase 
        agreement'--
                    ``(A) mean--
                            ``(i) an agreement, including related 
                        terms, which provides for the transfer of--
                                    ``(I) a certificate of deposit, 
                                mortgage related security (as defined 
                                in section 3 of the Securities Exchange 
                                Act of 1934), mortgage loan, interest 
                                in a mortgage related security or 
                                mortgage loan, eligible bankers' 
                                acceptance, or qualified foreign 
                                government security (defined for 
                                purposes of this paragraph to mean a 
                                security that is a direct obligation 
                                of, or that is fully guaranteed by, the 
                                central government of a member of the 
                                Organization for Economic Cooperation 
                                and Development); or
                                    ``(II) a security that is a direct 
                                obligation of, or that is fully 
                                guaranteed by, the United States or an 
                                agency of the United States against the 
                                transfer of funds by the transferee of 
                                such certificate of deposit, eligible 
                                bankers' acceptance, security, loan, or 
                                interest;
                        with a simultaneous agreement by such 
                        transferee to transfer to the transferor 
                        thereof a certificate of deposit, eligible 
                        bankers' acceptance, security, loan, or 
                        interest of the kind described in subclause (I) 
                        or (II), at a date certain that is not later 
                        than 1 year after the date of the transferor's 
                        transfer or on demand, against the transfer of 
                        funds;
                            ``(ii) a combination of agreements or 
                        transactions referred to in clauses (i) and 
                        (iii);
                            ``(iii) an option to enter into an 
                        agreement or transaction referred to in clause 
                        (i) or (ii); or
                            ``(iv) a master netting agreement that 
                        provides for an agreement or transaction 
                        referred to in clause (i), (ii), or (iii), 
                        together with all supplements to such master 
                        netting agreement, without regard to whether 
                        such master netting agreement provides for an 
                        agreement or transaction that is not a 
                        repurchase agreement under this subparagraph, 
                        except that such master netting agreement shall 
                        be considered to be a repurchase agreement 
                        under this subparagraph only with respect to 
                        each agreement or transaction under such master 
                        netting agreement that is referred to in clause 
                        (i), (ii), or (iii); or
                            ``(v) a security agreement or arrangement, 
                        or other credit enhancement, directly 
                        pertaining to a contract referred to in clause 
                        (i), (ii), (iii), or (iv), but not to exceed 
                        the actual value of such contract on the date 
                        of the filing of the petition; and
                    ``(B) do not include a repurchase obligation under 
                a participation in a commercial mortgage loan;'';
                    (C) in paragraph (48) by inserting ``, or exempt 
                from such registration under such section pursuant to 
                an order of the Securities and Exchange Commission'' 
                after ``1934''; and
                    (D) by striking paragraph (53B) and inserting the 
                following:
            ``(53B) `swap agreement'--
                    ``(A) means--
                            ``(i) an agreement, including the terms and 
                        conditions incorporated by reference in such 
                        agreement, that is--
                                    ``(I) an interest rate swap, 
                                option, future, or forward agreement, 
                                including a rate floor, rate cap, rate 
                                collar, cross-currency rate swap, and 
                                basis swap;
                                    ``(II) a spot, same day-tomorrow, 
                                tomorrow-next, forward, or other 
                                foreign exchange or precious metals 
                                agreement;
                                    ``(III) a currency swap, option, 
                                future, or forward agreement;
                                    ``(IV) an equity index or an equity 
                                swap, option, future, or forward 
                                agreement;
                                    ``(V) a debt index or a debt swap, 
                                option, future, or forward agreement;
                                    ``(VI) a credit spread or a credit 
                                swap, option, future, or forward 
                                agreement; or
                                    ``(VII) a commodity index or a 
                                commodity swap, option, future, or 
                                forward agreement;
                            ``(ii) an agreement or transaction that is 
                        similar to an agreement or transaction referred 
                        to in clause (i) that--
                                    ``(I) is currently, or in the 
                                future becomes, regularly entered into 
                                in the swap market (including terms and 
                                conditions incorporated by reference 
                                therein); and
                                    ``(II) is a forward, swap, future, 
                                or option on a rate, currency, 
                                commodity, equity security, or other 
                                equity instrument, on a debt security 
                                or other debt instrument, or on an 
                                economic index or measure of economic 
                                risk or value;
                            ``(iii) a combination of agreements or 
                        transactions referred to in clauses (i) and 
                        (ii);
                            ``(iv) an option to enter into an agreement 
                        or transaction referred to in this 
                        subparagraph;
                            ``(v) a master netting agreement that 
                        provides for an agreement or transaction 
                        referred to in clause (i), (ii), (iii), or 
                        (iv), together with all supplements to such 
                        master netting agreement and without regard to 
                        whether such master netting agreement contains 
                        an agreement or transaction described in any 
                        such clause, but only with respect to each 
                        agreement or transaction referred to in any 
                        such clause that is under such master netting 
                        agreement; except that
                    ``(B) the definition under subparagraph (A) is 
                applicable for purposes of this title only, and shall 
                not be construed or applied so as to challenge or 
                affect the characterization, definition, or treatment 
                of any swap agreement under any other statute, 
                regulation, or rule, including the Securities Act of 
                1933, the Securities Exchange Act of 1934, the Public 
                Utility Holding Company Act of 1935, the Trust 
                Indenture Act of 1939, the Investment Company Act of 
                1940, the Investment Advisers Act of 1940, the 
                Securities Investor Protection Act of 1970, the 
                Commodity Exchange Act, and the regulations prescribed 
                by the Securities and Exchange Commission or the 
                Commodity Futures Trading Commission.'';
            (2) in section 741, by striking paragraph (7) and inserting 
        the following:
            ``(7) `securities contract'--
                    ``(A) means--
                            ``(i) a contract for the purchase, sale, or 
                        loan of a security, a mortgage loan or an 
                        interest in a mortgage loan, a group or index 
                        of securities, or mortgage loans or interests 
                        therein (including an interest therein or based 
                        on the value thereof), or option on any of the 
                        foregoing, including an option to purchase or 
                        sell any of the foregoing;
                            ``(ii) an option entered into on a national 
                        securities exchange relating to foreign 
                        currencies;
                            ``(iii) the guarantee by or to a securities 
                        clearing agency of a settlement of cash, 
                        securities, mortgage loans or interests 
                        therein, group or index of securities, or 
                        mortgage loans or interests therein (including 
                        any interest therein or based on the value 
                        thereof), or option on any of the foregoing, 
                        including an option to purchase or sell any of 
                        the foregoing;
                            ``(iv) a margin loan;
                            ``(v) any other agreement or transaction 
                        that is similar to an agreement or transaction 
                        referred to in this subparagraph;
                            ``(vi) a combination of the agreements or 
                        transactions referred to in this subparagraph;
                            ``(vii) an option to enter into an 
                        agreement or transaction referred to in this 
                        subparagraph;
                            ``(viii) a master netting agreement that 
                        provides for an agreement or transaction 
                        referred to in clause (i), (ii), (iii), (iv), 
                        (v), (vi), or (vii), together with all 
                        supplements to such master netting agreement, 
                        without regard to whether such master netting 
                        agreement provides for an agreement or 
                        transaction that is not a securities contract 
                        under this subparagraph, except that such 
                        master netting agreement shall be considered to 
                        be a securities contract under this 
                        subparagraph only with respect to each 
                        agreement or transaction under such master 
                        netting agreement that is referred to in clause 
                        (i), (ii), (iii), (iv), (v), (vi), or (vii); or
                            ``(ix) a security agreement or arrangement, 
                        or other credit enhancement, directly 
                        pertaining to a contract referred to in this 
                        subparagraph, but not to exceed the actual 
                        value of such contract on the date of the 
                        filing of the petition; and
                    ``(B) does not include a purchase, sale, or 
                repurchase obligation under a participation in a 
                commercial mortgage loan;''; and
            (3) in section 761(4)--
                    (A) by striking ``or'' at the end of subparagraph 
                (D);
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) any other agreement or transaction that is 
                similar to an agreement or transaction referred to in 
                this paragraph;
                    ``(G) a combination of the agreements or 
                transactions referred to in this paragraph;
                    ``(H) an option to enter into an agreement or 
                transaction referred to in this paragraph;
                    ``(I) a master netting agreement that provides for 
                an agreement or transaction referred to in subparagraph 
                (A), (B), (C), (D), (E), (F), (G), or (H), together 
                with all supplements to such master netting agreement, 
                without regard to whether such master netting agreement 
                provides for an agreement or transaction that is not a 
                commodity contract under this paragraph, except that 
                such master netting agreement shall be considered to be 
                a commodity contract under this paragraph only with 
                respect to each agreement or transaction under such 
                master netting agreement that is referred to in 
                subparagraph (A), (B), (C), (D), (E), (F), (G), or (H); 
                or
                    ``(J) a security agreement or arrangement, or other 
                credit enhancement, directly pertaining to a contract 
                referred to in this paragraph, but not to exceed the 
                actual value of such contract on the date of the filing 
                of the petition.''.
    (b) Definitions of Financial Institution, Financial Participant, 
and Forward Contract Merchant.--Section 101 of title 11, United States 
Code, is amended--
            (1) by striking paragraph (22) and inserting the following:
            ``(22) `financial institution' means--
                    ``(A)(i) a Federal reserve bank, or an entity that 
                is a commercial or savings bank, industrial savings 
                bank, savings and loan association, trust company, or 
                receiver or conservator for such entity; and
                    ``(ii) if such Federal reserve bank, receiver, or 
                conservator or entity is acting as agent or custodian 
                for a customer in connection with a securities 
                contract, as defined in section 741, such customer; or
                    ``(B) in connection with a securities contract, as 
                defined in section 741 of this title, an investment 
                company registered under the Investment Company Act of 
                1940;'';
            (2) by inserting after paragraph (22) the following:
            ``(22A) `financial participant' means an entity that is a 
        party to a securities contract, commodity contract or forward 
        contract, or on the date of the filing of the petition, has a 
        commodity contract (as defined in section 761) with the debtor 
        or any other entity (other than an affiliate) of a total gross 
        dollar value of not less than $1,000,000,000 in notional or 
        actual principal amount outstanding on any day during the 
        previous 15-month period, or has gross mark-to-market positions 
        of not less than $100,000,000 (aggregated across 
        counterparties) in any such agreement or transaction with the 
        debtor or any other entity (other than an affiliate) on any day 
        during the previous 15-month period;''; and
            (3) by striking paragraph (26) and inserting the following:
            ``(26) `forward contract merchant' means a Federal reserve 
        bank, or an entity, the business of which consists in whole or 
        in part of entering into forward contracts as or with merchants 
        or in a commodity, as defined or in section 761, or any similar 
        good, article, service, right, or interest that is presently or 
        in the future becomes the subject of dealing or in the forward 
        contract trade;''.
    (c) Definition of Master Netting Agreement and Master Netting 
Agreement Participant.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (38) the following new paragraphs:
            ``(38A) the term `master netting agreement'--
                    ``(A) means an agreement providing for the exercise 
                of rights, including rights of netting, setoff, 
                liquidation, termination, acceleration, or closeout, 
                under or in connection with 1 or more contracts that 
                are described in any 1 or more of paragraphs (1) 
                through (5) of section 561(a), or any security 
                agreement or arrangement or other credit enhancement 
                related to 1 or more of the foregoing; except that
                    ``(B) if a master netting agreement contains 
                provisions relating to agreements or transactions that 
                are not contracts described in paragraphs (1) through 
                (5) of section 561(a), the master netting agreement 
                shall be deemed to be a master netting agreement only 
with respect to those agreements or transactions that are described in 
any 1 or more of the paragraphs (1) through (5) of section 561(a);
            ``(38B) the term `master netting agreement participant' 
        means an entity that, at any time before the filing of the 
        petition, is a party to an outstanding master netting agreement 
        with the debtor;''.
    (d) Swap Agreements, Securities Contracts, Commodity Contracts, 
Forward Contracts, Repurchase Agreements, and Master Netting Agreements 
Under the Automatic Stay.--
            (1) In general.--Section 362(b) of title 11, United States 
        Code, as amended by section 718 of this Act, is amended--
                    (A) in paragraph (6), by inserting ``, pledged to, 
                and under the control of,'' after ``held by'';
                    (B) in paragraph (7), by inserting ``, pledged to, 
                and under the control of,'' after ``held by'';
                    (C) by striking paragraph (17) and inserting the 
                following:
            ``(17) under subsection (a), of the setoff by a swap 
        participant of a mutual debt and claim under or in connection 
        with a swap agreement that constitutes the setoff of a claim 
        against the debtor for a payment or transfer due from the 
        debtor under or in connection with a swap agreement against a 
        payment due to the debtor from the swap participant under or in 
        connection with a swap agreement or against cash, securities, 
        or other property held by, pledged to, and under the control 
        of, or due from such swap participant to guarantee, secure, or 
        settle a swap agreement;'';
                    (D) in paragraph (26), by striking ``or'' at the 
                end;
                    (E) in paragraph (27), by striking the period at 
                the end and inserting ``; or''; and
                    (F) by inserting after paragraph (27) the 
                following:
            ``(28) under subsection (a), of the setoff by a master 
        netting agreement participant of a mutual debt and claim under 
        or in connection with 1 or more master netting agreements or 
        any contract or agreement subject to such agreements that 
        constitutes the setoff of a claim against the debtor for any 
        payment or other transfer of property due from the debtor under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements against any payment due to 
        the debtor from such master netting agreement participant under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements or against cash, 
        securities, or other property held by, pledged or and under the 
        control of, or due from such master netting agreement 
        participant to margin, guarantee, secure, or settle such 
        agreements or any contract or agreement subject to such 
        agreements, to the extent such participant is eligible to 
        exercise such offset rights under paragraph (6), (7), or (17) 
        for each individual contract covered by the master netting 
        agreement in issue.''.
            (2) Limitation.--Section 362 of title 11, United States 
        Code, as amended by section 432(2) of this Act, is amended by 
        adding at the end the following:
    ``(l) Limitation.--The exercise of rights not subject to the stay 
arising under subsection (a) pursuant to paragraph (6), (7), or (17) of 
subsection (b) shall not be stayed by an order of a court or 
administrative agency in any proceeding under this title.''.
    (e) Limitation of Avoidance Powers Under Master Netting 
Agreement.--Section 546 of title 11, United States Code, is amended--
            (1) in subsection (g) (as added by section 103 of Public 
        Law 101-311 (104 Stat. 267 et seq.))--
                    (A) by striking ``under a swap agreement''; and
                    (B) by striking ``in connection with a swap 
                agreement'' and inserting ``under or in connection with 
                any swap agreement''; and
            (2) by inserting before subsection (i) (as redesignated by 
        section 407 of this Act) the following new subsection:
    ``(h) Notwithstanding sections 544, 545, 547, 548(a)(2)(B), and 
548(b), the trustee may not avoid a transfer made by or to a master 
netting agreement participant under or in connection with any master 
netting agreement or any individual contract covered thereby that is 
made before the commencement of the case, and except to the extent that 
the trustee could otherwise avoid such a transfer made under an 
individual contract covered by such master netting agreement (except 
under section 548(a)(1)(A)).''.
    (f) Fraudulent Transfers of Master Netting Agreements.--Section 
548(d)(2) of title 11, United States Code, is amended--
            (1) in subparagraph (C), by striking ``and'';
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) a master netting agreement participant that 
                receives a transfer in connection with a master netting 
                agreement or any individual contract covered thereby 
                takes for value to the extent of such transfer, except, 
                with respect to a transfer under any individual 
                contract covered thereby, to the extent that such 
                master netting agreement participant otherwise did not 
                take (or is otherwise not deemed to have taken) such 
                transfer for value.''.
    (g) Termination or Acceleration of Securities Contracts.--Section 
555 of title 11, United States Code, is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 555. Contractual right to liquidate, terminate, or accelerate a 
              securities contract'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (h) Termination or Acceleration of Commodities or Forward 
Contracts.--Section 556 of title 11, United States Code, is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 556. Contractual right to liquidate, terminate, or accelerate a 
              commodities contract or forward contract'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (i) Termination or Acceleration of Repurchase Agreements.--Section 
559 of title 11, United States Code, is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 559. Contractual right to liquidate, terminate, or accelerate a 
              repurchase agreement'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (j) Liquidation, Termination, or Acceleration of Swap Agreements.--
Section 560 of title 11, United States Code, is amended--
            (1) by striking the section heading and inserting 
        following:
``Sec. 560. Contractual right to liquidate, terminate, or accelerate a 
              swap agreement'';
            (2) in the first sentence, by striking ``termination of a 
        swap agreement'' and inserting ``liquidation, termination, or 
        acceleration of a swap agreement''; and
            (3) by striking ``in connection with any swap agreement'' 
        and inserting ``in connection with the termination, 
        liquidation, or acceleration of a swap agreement''.
    (k) Liquidation, Termination, Acceleration, or Offset Under a 
Master Netting Agreement and Across Contracts.--Title 11, United States 
Code, is amended by inserting after section 560 the following new 
section:
``Sec. 561. Contractual right to terminate, liquidate, accelerate, or 
              offset under a master netting agreement and across 
              contracts
    ``(a) Subject to subsection (b), the exercise of any contractual 
right, because of a condition of the kind specified in section 
365(e)(1), to cause the termination, liquidation, or acceleration of or 
to offset or net termination values, payment amounts or other transfer 
obligations arising under or in connection with 1 or more (or the 
termination, liquidation, or acceleration of 1 or more)--
            ``(1) securities contracts, as defined in section 741(7);
            ``(2) commodity contracts, as defined in section 761(4);
            ``(3) forward contracts;
            ``(4) repurchase agreements;
            ``(5) swap agreements; or
            ``(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation of any 
provision of this title or by any order of a court or administrative 
agency in any proceeding under this title.
    ``(b)(1) A party may exercise a contractual right described in 
subsection (a) to terminate, liquidate, or accelerate only to the 
extent that such party could exercise such a right under section 555, 
556, 559, or 560 for each individual contract covered by the master 
netting agreement in issue.
    ``(2) If a debtor is a commodity broker subject to subchapter IV of 
chapter 7 of this title--
            ``(A) a party may not net or offset an obligation to the 
        debtor arising under, or in connection with, a commodity 
        contract against any claim arising under, or in connection 
        with, other instruments, contracts, or agreements listed in 
        subsection (a), except to the extent that the party has no 
        positive net equity in the commodity accounts at the debtor, as 
        calculated under subchapter IV; and
            ``(B) another commodity broker may not net or offset an 
        obligation to the debtor arising under, or in connection with, 
        a commodity contract entered into or held on behalf of a 
        customer of the debtor against any claim arising under, or in 
        connection with, other instruments, contracts, or agreements 
        referred to in subsection (a).
    ``(c) As used in this section, the term `contractual right' 
includes a right set forth in a rule or bylaw of a national securities 
exchange, a national securities association, or a securities clearing 
agency, a right set forth in a bylaw of a clearing organization or 
contract market or in a resolution of the governing board thereof, and 
a right, whether or not evidenced in writing, arising under common law, 
under law merchant, or by reason of normal business practice.''.
    (l) Ancillary Proceedings.--Section 304 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(d) Any provisions of this title relating to securities 
contracts, commodity contracts, forward contracts, repurchase 
agreements, swap agreements, or master netting agreements shall apply 
in a case ancillary to a foreign proceeding under this section or any 
other section of this title, so that enforcement of contractual 
provisions of such contracts and agreements in accordance with their 
terms--
            ``(1) shall not be stayed or otherwise limited by--
                    ``(A) operation of any provision of this title; or
                    ``(B) order of a court in any case under this 
                title;
            ``(2) shall limit avoidance powers to the same extent as in 
        a proceeding under chapter 7 or 11; and
            ``(3) shall not be limited based on the presence or absence 
        of assets of the debtor in the United States.''.
    (m) Commodity Broker Liquidations.--Title 11, United States Code, 
is amended by inserting after section 766 the following:
``Sec. 767. Commodity broker liquidation and forward contract 
              merchants, commodity brokers, stockbrokers, financial 
              institutions, securities clearing agencies, swap 
              participants, repo participants, and master netting 
              agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, or master netting agreement participant 
under this title shall not affect the priority of any unsecured claim 
it may have after the exercise of such rights.''.
    (n) Stockbroker Liquidations.--Title 11, United States Code, is 
amended by inserting after section 752 the following:
``Sec. 753. Stockbroker liquidation and forward contract merchants, 
              commodity brokers, stockbrokers, financial institutions, 
              securities clearing agencies, swap participants, repo 
              participants, and master netting agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, financial participant, or master netting 
agreement participant under this title shall not affect the priority of 
any unsecured claim it may have after the exercise of such rights.''.
    (o) Setoff.--Section 553 of title 11, United States Code, is 
amended--
            (1) in subsection (a)(3)(C), by inserting ``(except for a 
        setoff of a kind described in section 362(b)(6), 362(b)(7), 
        362(b)(17), 362(b)(19), 555, 556, 559, or 560)'' before the 
        period; and
            (2) in subsection (b)(1), by striking ``362(b)(14),'' and 
        inserting ``362(b)(17), 362(b)(19), 555, 556, 559, 560,''.
    (p) Securities Contracts, Commodity Contracts, and Forward 
Contracts.--Title 11, United States Code, is amended--
            (1) in section 362(b)(6), by striking ``financial 
        institutions,'' each place such term appears and inserting 
        ``financial institution, financial participant'';
            (2) in section 546(e), by inserting ``financial 
        participant'' after ``financial institution,'';
            (3) in section 548(d)(2)(B), by inserting ``financial 
        participant'' after ``financial institution,'';
            (4) in section 555--
                    (A) by inserting ``financial participant'' after 
                ``financial institution,''; and
                    (B) by inserting before the period ``, a right set 
                forth in a bylaw of a clearing organization or contract 
                market or in a resolution of the governing board 
                thereof, and a right, whether or not in writing, 
                arising under common law, under law merchant, or by 
                reason of normal business practice''; and
            (5) in section 556, by inserting ``, financial 
        participant'' after ``commodity broker''.
    (q) Conforming Amendments.--Title 11 of the United States Code is 
amended--
            (1) in the table of sections for chapter 5--
                    (A) by striking the items relating to sections 555 
                and 556 and inserting the following:

``555. Contractual right to liquidate, terminate, or accelerate a 
                            securities contract.
``556. Contractual right to liquidate, terminate, or accelerate a 
                            commodities contract or forward 
                            contract.'';
                    (B) by striking the items relating to sections 559 
                and 560 and inserting the following:

``559. Contractual right to liquidate, terminate, or accelerate a 
                            repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap 
                            agreement.'';
                and
                    (C) by adding after the item relating to section 
                560 the following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
                            under a master netting agreement and across 
                            contracts.'';
                and
            (2) in the table of sections for chapter 7--
                    (A) by inserting after the item relating to section 
                766 the following:

``767. Commodity broker liquidation and forward contract merchants, 
                            commodity brokers, stockbrokers, financial 
                            institutions, securities clearing agencies, 
                            swap participants, repo participants, and 
                            master netting agreement participants.'';
                and
                    (B) by inserting after the item relating to section 
                752 the following:

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

SEC. 902. DAMAGE MEASURE.

    (a) In General.--Title 11, United States Code, is amended--
            (1) by inserting after section 561 the following:
``Sec. 562. Damage measure in connection with swap agreements, 
              securities contracts, forward contracts, commodity 
              contracts, repurchase agreements, or master netting 
              agreements
    ``If the trustee rejects a swap agreement, securities contract (as 
defined in section 741), forward contract, commodity contract (as 
defined in section 761) repurchase agreement, or master netting 
agreement under section 365(a), or if a forward contract merchant, 
stockbroker, financial institution, securities clearing agency, repo 
participant, financial participant, master netting agreement 
participant, or swap participant liquidates, terminates, or accelerates 
such contract or agreement, damages shall be measured as of the earlier 
of--
            ``(1) the date of such rejection; or
            ``(2) the date of such liquidation, termination, or 
        acceleration.''; and
            (2) in the table of sections for chapter 5 by inserting 
        after the item relating to section 561 the following:

``562. Damage measure in connection with swap agreements, securities 
                            contracts, forward contracts, commodity 
                            contracts, repurchase agreements, or master 
                            netting agreements.''.
    (b) Claims Arising From Rejection.--Section 502(g) of title 11, 
United States Code, is amended--
            (1) by inserting ``(1)'' after ``(g)''; and
            (2) by adding at the end the following:
    ``(2) A claim for damages calculated in accordance with section 561 
shall be allowed under subsection (a), (b), or (c) of this section, or 
disallowed under subsection (d) or (e) of this section, as if such 
claim had arisen before the date of the filing of the petition.''.

SEC. 903. ASSET-BACKED SECURITIZATIONS.

    Section 541 of title 11, United States Code, is amended--
            (1) in subsection (b), by striking ``or'' at the end of 
        paragraph (4);
            (2) by redesignating paragraph (5) of subsection (b) as 
        paragraph (6);
            (3) by inserting after paragraph (4) of subsection (b) the 
        following new paragraph:
            ``(5) any eligible asset (or proceeds thereof), to the 
        extent that such eligible asset was transferred by the debtor, 
        before the date of commencement of the case, to an eligible 
        entity in connection with an asset-backed securitization, 
        except to the extent that such asset (or proceeds or value 
        thereof) may be recovered by the trustee under section 550 by 
        virtue of avoidance under section 548(a); or''; and
            (4) by adding at the end the following new subsection:
    ``(e) For purposes of this section, the following definitions shall 
apply:
            ``(1) The term `asset-backed securitization' means a 
        transaction in which eligible assets transferred to an eligible 
        entity are used as the source of payment on securities, the 
        most senior of which are rated investment grade by 1 or more 
        nationally recognized securities rating organizations, issued 
        by an issuer.
            ``(2) The term `eligible asset' means--
                    ``(A) financial assets (including interests therein 
                and proceeds thereof), either fixed or revolving, 
                including residential and commercial mortgage loans, 
                consumer receivables, trade receivables, and lease 
                receivables, that, by their terms, convert into cash 
                within a finite time period, plus any rights or other 
                assets designed to assure the servicing or timely 
                distribution of proceeds to security holders;
                    ``(B) cash; and
                    ``(C) securities.
            ``(3) The term `eligible entity' means--
                    ``(A) an issuer; or
                    ``(B) a trust, corporation, partnership, or other 
                entity engaged exclusively in the business of acquiring 
                and transferring eligible assets directly or indirectly 
                to an issuer and taking actions ancillary thereto.
            ``(4) The term `issuer' means a trust, corporation, 
        partnership, or other entity engaged exclusively in the 
        business of acquiring and holding eligible assets, issuing 
        securities backed by eligible assets, and taking actions 
        ancillary thereto.
            ``(5) The term `transferred' means the debtor, under a 
        written agreement, represented and warranted that eligible 
        assets were sold, contributed, or otherwise conveyed with the 
        intention of removing them from the estate of the debtor 
        pursuant to subsection (b)(5), irrespective, without limitation 
        of--
                    ``(A) whether the debtor directly or indirectly 
                obtained or held an interest in the issuer or in any 
                securities issued by the issuer;
                    ``(B) whether the debtor had an obligation to 
                repurchase or to service or supervise the servicing of 
                all or any portion of such eligible assets; or
                    ``(C) the characterization of such sale, 
                contribution, or other conveyance for tax, accounting, 
                regulatory reporting, or other purposes.''.

SEC. 904. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--This title shall take effect on the date of 
enactment of this Act.
    (b) Application of Amendments.--The amendments made by this title 
shall apply with respect to cases commenced or appointments made under 
any Federal or State law after the date of enactment of this Act, but 
shall not apply with respect to cases commenced or appointments made 
under any Federal or State law before the date of enactment of this 
Act.

                 TITLE X--PROTECTION OF FAMILY FARMERS

SEC. 1001. REENACTMENT OF CHAPTER 12.

    (a) Reenactment.--
            (1) In general.--Chapter 12 of title 11, United States 
        Code, as reenacted by section 149 of division C of the Omnibus 
        Consolidated and Emergency Supplemental Appropriations Act, 
        1999 (Public Law 105-277), and amended by this Act, is 
        reenacted.
            (2) Effective date.--Subsection (a) shall take effect on 
        April 1, 1999.
    (b) Conforming Amendment.--Section 302 of the Bankruptcy, Judges, 
United States Trustees, and Family Farmer Bankruptcy Act of 1986 (28 
U.S.C. 581 note) is amended by striking subsection (f).

SEC. 1002. DEBT LIMIT INCREASE.

    Section 104(b) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(4) The dollar amount in section 101(18) shall be adjusted at the 
same times and in the same manner as the dollar amounts in paragraph 
(1) of this subsection, beginning with the adjustment to be made on 
April 1, 2001.''.

SEC. 1003. ELIMINATION OF REQUIREMENT THAT FAMILY FARMER AND SPOUSE 
              RECEIVE OVER 50 PERCENT OF INCOME FROM FARMING OPERATION 
              IN YEAR PRIOR TO BANKRUPTCY.

    Section 101(18)(A) of title 11, United States Code, is amended by 
striking ``the taxable year preceding the taxable year'' and inserting 
``at least 1 of the 3 calendar years preceding the year''.

    SEC. 1004. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS.

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

              TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

SEC. 1101. DEFINITIONS.

    (a) Health Care Business Defined.--Section 101 of title 11, United 
States Code, as amended by section 1004(a) of this Act, is amended--
            (1) by redesignating paragraph (27A) as paragraph (27C); 
        and
            (2) inserting after paragraph (27) the following:
            ``(27A) `health care business'--
                    ``(A) means any public or private entity (without 
                regard to whether that entity is organized for profit 
                or not for profit) that is primarily engaged in 
                offering to the general public facilities and services 
                for--
                            ``(i) the diagnosis or treatment of injury, 
                        deformity, or disease; and
                            ``(ii) surgical, drug treatment, 
                        psychiatric or obstetric care; and
                    ``(B) includes--
                            ``(i) any--
                                    ``(I) general or specialized 
                                hospital;
                                    ``(II) ancillary ambulatory, 
                                emergency, or surgical treatment 
                                facility;
                                    ``(III) hospice;
                                    ``(IV) health maintenance 
                                organization;
                                    ``(V) home health agency; and
                                    ``(VI) other health care 
                                institution that is similar to an 
                                entity referred to in subclause (I), 
                                (II), (III), (IV), or (V); and
                            ``(ii) any long-term care facility, 
                        including any--
                                    ``(I) skilled nursing facility;
                                    ``(II) intermediate care facility;
                                    ``(III) assisted living facility;
                                    ``(IV) home for the aged;
                                    ``(V) domicilary care facility; and
                                    ``(VI) health care institution that 
                                is related to a facility referred to in 
                                subclause (I), (II), (III), (IV), or 
                                (V), if that institution is primarily 
                                engaged in offering room, board, 
                                laundry, or personal assistance with 
                                activities of daily living and 
                                incidentals to activities of daily 
                                living;''.
    (b) Health Maintenance Organization Defined.--Section 101 of title 
11, United States Code, as amended by subsection (a), is amended by 
inserting after paragraph (27A) the following:
            ``(27B) `health maintenance organization' means any person 
        that undertakes to provide or arrange for basic health care 
        services through an organized system that--
                    ``(A)(i) combines the delivery and financing of 
                health care to enrollees; and
                    ``(ii)(I) provides--
                            ``(aa) physician services directly through 
                        physicians or 1 or more groups of physicians; 
                        and
                            ``(bb) basic health care services directly 
                        or under a contractual arrangement; and
                    ``(II) if reasonable and appropriate, provides 
                physician services and basic health care services 
                through arrangements other than the arrangements 
                referred to in clause (i); and
                    ``(B) includes any organization described in 
                subparagraph (A) that provides, or arranges for, health 
                care services on a prepayment or other financial 
                basis;''.
    (c) Patient.--Section 101 of title 11, United States Code, as 
amended by subsection (b), is amended by inserting after paragraph (40) 
the following:
            ``(40A) `patient' means any person who obtains or receives 
        services from a health care business;''.
    (d) Patient Records.--Section 101 of title 11, United States Code, 
as amended by subsection (c), is amended by inserting after paragraph 
(40A) the following:
            ``(40B) `patient records' means any written document 
        relating to a patient or record recorded in a magnetic, 
        optical, or other form of electronic medium;''.

SEC. 1102. DISPOSAL OF PATIENT RECORDS.

    (a) In General.--Subchapter III of chapter 3 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 351. Disposal of patient records
    ``If a health care business commences a case under chapter 7, 9, or 
11, and the trustee does not have a sufficient amount of funds to pay 
for the storage of patient records in the manner required under 
applicable Federal or State law, the following requirements shall 
apply:
            ``(1) The trustee shall mail, by certified mail, a written 
        request to each appropriate Federal or State agency to request 
        permission from that agency to deposit the patient records with 
        that agency.
            ``(2) If no appropriate Federal or State agency agrees to 
        permit the deposit of patient records referred to in paragraph 
        (1) by the date that is 60 days after the trustee mails a 
        written request under that paragraph, the trustee shall--
                    ``(A) publish notice, in 1 or more appropriate 
                newspapers, that if those patient records are not 
                claimed by the patient or an insurance provider (if 
                applicable law permits the insurance provider to make 
                that claim) by the date that is 60 days after the date 
                of that notification, the trustee will destroy the 
                patient records; and
                    ``(B) during the 60-day period described in 
                subparagraph (A), the trustee shall attempt to notify 
                directly each patient that is the subject of the 
                patient records concerning the patient records by 
                mailing to the last known address of that patient an 
                appropriate notice regarding the claiming or disposing 
                of patient records.
            ``(3) If, after providing the notification under paragraph 
        (2), patient records are not claimed during the 60-day period 
        described in paragraph (2)(A) or in any case in which a notice 
        is mailed under paragraph (2)(B), during the 90-day period 
        beginning on the date on which the notice is mailed, by a 
        patient or insurance provider in accordance with that 
        paragraph, the trustee shall destroy those records by--
                    ``(A) if the records are written, shredding or 
                burning the records; or
                    ``(B) if the records are magnetic, optical, or 
                other electronic records, by otherwise destroying those 
                records so that those records cannot be retrieved.''.
    (b) Clerical Amendment.--The chapter analysis for chapter 3 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 350 the following:

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

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

    Section 503(b) of title 11, United States Code, is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) the actual, necessary costs and expenses of closing a 
        health care business incurred by a trustee, including any cost 
        or expense incurred--
                    ``(A) in disposing of patient records in accordance 
                with section 351; or
                    ``(B) in connection with transferring patients from 
                the health care business that is in the process of 
                being closed to another health care business.''.

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

    (a) In General.--
            (1) Appointment of ombudsman.--Subchapter II of chapter 3 
        of title 11, United States Code, is amended by inserting after 
        section 331 the following:
``Sec. 332. Appointment of ombudsman
    ``(a) Not later than 30 days after a case is commenced by a health 
care business under chapter 7, 9, or 11, the court shall appoint an 
ombudsman to represent the interests of the patients of the health care 
business.
    ``(b) An ombudsman appointed under subsection (a) shall--
            ``(1) monitor the quality of patient care, to the extent 
        necessary under the circumstances, including reviewing records 
        and interviewing patients and physicians;
            ``(2) not later than 60 days after the date of appointment, 
        and not less frequently than every 60 days thereafter, report 
        to the court, at a hearing or in writing, regarding the quality 
        of patient care at the health care business involved; and
            ``(3) if the ombudsman determines that the quality of 
        patient care is declining significantly or is otherwise being 
        materially compromised, notify the court by motion or written 
        report, with notice to appropriate parties in interest, 
        immediately upon making that determination.
    ``(c) An ombudsman shall maintain any information obtained by the 
ombudsman under this section that relates to patients (including 
information relating to patient records) as confidential 
information.''.
            (2) Clerical amendment.--The chapter analysis for chapter 3 
        of title 11, United States Code, is amended by inserting after 
        the item relating to section 331 the following:

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

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

    (a) In General.--Section 704(a) of title 11, United States Code, as 
amended by section 219 of this Act, is amended--
            (1) in paragraph (9), by striking ``and'' at the end;
            (2) in paragraph (10), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(11) use all reasonable and best efforts to transfer 
        patients from a health care business that is in the process of 
        being closed to an appropriate health care business that--
                    ``(A) is in the vicinity of the health care 
                business that is closing;
                    ``(B) provides the patient with services that are 
                substantially similar to those provided by the health 
                care business that is in the process of being closed; 
                and
                    ``(C) maintains a reasonable quality of care.''.
    (b) Conforming Amendment.--Section 1106(a)(1) of title 11, United 
States Code, is amended by striking ``and 704(9)'' and inserting 
``704(9), and 704(10)''.

                    TITLE XII--TECHNICAL AMENDMENTS

SEC. 1201. DEFINITIONS.

    Section 101 of title 11, United States Code, as amended by section 
1101 of this Act, is amended--
            (1) by striking ``In this title--'' and inserting ``In this 
        title:'';
            (2) in each paragraph, by inserting ``The term'' after the 
        paragraph designation;
            (3) in paragraph (35)(B), by striking ``paragraphs (21B) 
        and (33)(A)'' and inserting ``paragraphs (23) and (35)'';
            (4) in each of paragraphs (35A) and (38), by striking ``; 
        and'' at the end and inserting a period;
            (5) in paragraph (51B)--
                    (A) by inserting ``who is not a family farmer'' 
                after ``debtor'' the first place it appears; and
                    (B) by striking ``thereto having aggregate'' and 
                all that follows through the end of the paragraph;
            (6) by striking paragraph (54) and inserting the following:
            ``(54) The term `transfer' means--
                    ``(A) the creation of a lien;
                    ``(B) the retention of title as a security 
                interest;
                    ``(C) the foreclosure of a debtor's equity of 
                redemption; or
                    ``(D) each mode, direct or indirect, absolute or 
                conditional, voluntary or involuntary, of disposing of 
                or parting with--
                            ``(i) property; or
                            ``(ii) an interest in property;'';
            (7) in each of paragraphs (1) through (35), in each of 
        paragraphs (36) and (37), and in each of paragraphs (40) 
        through (55) (including paragraph (54), as amended by paragraph 
        (6) of this section), by striking the semicolon at the end and 
        inserting a period; and
            (8) by redesignating paragraphs (4) through (55), including 
        paragraph (54), as amended by paragraph (6) of this section, in 
        entirely numerical sequence.

SEC. 1202. ADJUSTMENT OF DOLLAR AMOUNTS.

    Section 104 of title 11, United States Code, is amended by 
inserting ``522(f)(3), 707(b)(5),'' after ``522(d),'' each place it 
appears.

SEC. 1203. EXTENSION OF TIME.

    Section 108(c)(2) of title 11, United States Code, is amended by 
striking ``922'' and all that follows through ``or'', and inserting 
``922, 1201, or''.

SEC. 1204. TECHNICAL AMENDMENTS.

    Title 11 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. 1205. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE 
              BANKRUPTCY PETITIONS.

    Section 110(j)(3) of title 11, United States Code, is amended by 
striking ``attorney's'' and inserting ``attorneys'''.

SEC. 1206. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

    Section 328(a) of title 11, United States Code, is amended by 
inserting ``on a fixed or percentage fee basis,'' after ``hourly 
basis,''.

SEC. 1207. SPECIAL TAX PROVISIONS.

    Section 346(g)(1)(C) of title 11, United States Code, is amended by 
striking ``, except'' and all that follows through ``1986''.

SEC. 1208. EFFECT OF CONVERSION.

    Section 348(f)(2) of title 11, United States Code, is amended by 
inserting ``of the estate'' after ``property'' the first place it 
appears.

SEC. 1209. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

    Section 503(b)(4) of title 11, United States Code, is amended by 
inserting ``subparagraph (A), (B), (C), (D), or (E) of'' before 
``paragraph (3)''.

SEC. 1210. PRIORITIES.

    Section 507(a) of title 11, United States Code, as amended by 
sections 211 and 229 of this Act, is amended--
            (1) in paragraph (4)(B), by striking the semicolon at the 
        end and inserting a period; and
            (2) in paragraph (8), by inserting ``unsecured'' after 
        ``allowed''.

SEC. 1211. EXEMPTIONS.

    Section 522(g)(2) of title 11, United States Code, as amended by 
section 311 of this Act, is amended by striking ``subsection (f)(2)'' 
and inserting ``subsection (f)(1)(B)''.

SEC. 1212. EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, as amended by section 
229 of this Act, is amended--
            (1) as amended by section 304(e) of Public Law 103-394 (108 
        Stat. 4133), in paragraph (15), by transferring such paragraph 
        so as to insert it after paragraph (14) of subsection (a);
            (2) in subsection (a)--
                    (A) in paragraph (3), by striking ``or (6)'' each 
                place it appears and inserting ``(6), or (15)'';
                    (B) in paragraph (9), by striking ``motor vehicle 
                or vessel'' and inserting ``motor vehicle, vessel, or 
                aircraft''; and
                    (C) in paragraph (15), as so redesignated by 
                paragraph (1) of this subsection, by inserting ``to a 
                spouse, former spouse, or child of the debtor and'' 
                after ``(15)''; and
            (3) in subsection (e), by striking ``a insured'' and 
        inserting ``an insured''.

SEC. 1213. EFFECT OF DISCHARGE.

    Section 524(a)(3) of title 11, United States Code, is amended by 
striking ``section 523'' and all that follows through ``or that'' and 
inserting ``section 523, 1228(a)(1), or 1328(a)(1), or that''.

SEC. 1214. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

    Section 525(c) of title 11, United States Code, is amended--
            (1) in paragraph (1), by inserting ``student'' before 
        ``grant'' the second place it appears; and
            (2) in paragraph (2), by striking ``the program operated 
        under part B, D, or E of'' and inserting ``any program operated 
        under''.

SEC. 1215. PROPERTY OF THE ESTATE.

    Section 541(b)(4)(B)(ii) of title 11, United States Code, is 
amended by inserting ``365 or'' before ``542''.

SEC. 1216. PREFERENCES.

    (a) In General.--Section 547 of title 11, United States Code, is 
amended--
            (1) in subsection (b), by striking ``subsection (c)'' and 
        inserting ``subsections (c) and (i)''; and
            (2) by adding at the end the following:
    ``(i) If the trustee avoids under subsection (b) a security 
interest given between 90 days and 1 year before the date of the filing 
of the petition, by the debtor to an entity that is not an insider for 
the benefit of a creditor that is an insider, such security interest 
shall be considered to be avoided under this section only with respect 
to the creditor that is an insider.''.
    (b) Applicability.--The amendments made by this section shall apply 
to any case that pending or commenced on or after the date of enactment 
of this Act.

SEC. 1217. POSTPETITION TRANSACTIONS.

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

SEC. 1218. DISPOSITION OF PROPERTY OF THE ESTATE.

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

SEC. 1219. GENERAL PROVISIONS.

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

SEC. 1220. ABANDONMENT OF RAILROAD LINE.

    Section 1170(e)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 1221. CONTENTS OF PLAN.

    Section 1172(c)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 1222. DISCHARGE UNDER CHAPTER 12.

    Subsections (a) and (c) of section 1228 of title 11, United States 
Code, are amended by striking ``1222(b)(10)'' each place it appears and 
inserting ``1222(b)(9)''.

SEC. 1223. BANKRUPTCY CASES AND PROCEEDINGS.

    Section 1334(d) of title 28, United States Code, is amended--
            (1) by striking ``made under this subsection'' and 
        inserting ``made under subsection (c)''; and
            (2) by striking ``This subsection'' and inserting 
        ``Subsection (c) and this subsection''.

SEC. 1224. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

    Section 156(a) of title 18, United States Code, is amended--
            (1) in the first undesignated paragraph--
                    (A) by inserting ``(1) the term'' before 
                ```bankruptcy''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (2) in the second undesignated paragraph--
                    (A) by inserting ``(2) the term'' before 
                ```document''; and
                    (B) by striking ``this title'' and inserting 
                ``title 11''.

SEC. 1225. TRANSFERS MADE BY NONPROFIT CHARITABLE CORPORATIONS.

    (a) Sale of Property of Estate.--Section 363(d) of title 11, United 
States Code, is amended by striking ``only'' and all that follows 
through the end of the subsection and inserting ``only--
            ``(1) in accordance with applicable nonbankruptcy law that 
        governs the transfer of property by a corporation or trust that 
        is not a moneyed, business, or commercial corporation or trust; 
        and
            ``(2) to the extent not inconsistent with any relief 
        granted under subsection (c), (d), (e), or (f) of section 
        362.''.
    (b) Confirmation of Plan for Reorganization.--Section 1129(a) of 
title 11, United States Code, as amended by section 212 of this Act, is 
amended by adding at the end the following:
            ``(15) All transfers of property of the plan shall be made 
        in accordance with any applicable provisions of nonbankruptcy 
        law that govern the transfer of property by a corporation or 
        trust that is not a moneyed, business, or commercial 
        corporation or trust.''.
    (c) Transfer of Property.--Section 541 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(f) Notwithstanding any other provision of this title, property 
that is held by a debtor that is a corporation described in section 
501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax 
under section 501(a) of such Code may be transferred to an entity that 
is not such a corporation, but only under the same conditions as would 
apply if the debtor had not filed a case under this title.''.
    (d) Applicability.--The amendments made by this section shall apply 
to a case pending under title 11, United States Code, on the date of 
enactment of this Act, except that the court shall not confirm a plan 
under chapter 11 of this title without considering whether this section 
would substantially affect the rights of a party in interest who first 
acquired rights with respect to the debtor after the date of the 
petition. The parties who may appear and be heard in a proceeding under 
this section include the attorney general of the State in which the 
debtor is incorporated, was formed, or does business.
    (e) Rule of Construction.--Nothing in this section shall be 
construed to require the court in which a case under chapter 11 is 
pending to remand or refer any proceeding, issue, or controversy to any 
other court or to require the approval of any other court for the 
transfer of property.

SEC. 1226. PROTECTION OF VALID PURCHASE MONEY SECURITY INTERESTS.

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

SEC. 1227. EXTENSIONS.

    Section 302(d)(3) of the Bankruptcy, Judges, United States 
Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) 
is amended--
            (1) in subparagraph (A), in the matter following clause 
        (ii), by striking ``or October 1, 2002, whichever occurs 
        first''; and
            (2) in subparagraph (F)--
                    (A) in clause (i)--
                            (i) in subclause (II), by striking ``or 
                        October 1, 2002, whichever occurs first''; and
                            (ii) in the matter following subclause 
                        (II), by striking ``October 1, 2003, or''; and
                    (B) in clause (ii), in the matter following 
                subclause (II)--
                            (i) by striking ``before October 1, 2003, 
                        or''; and
                            (ii) by striking ``, whichever occurs 
                        first''.

SEC. 1228. BANKRUPTCY JUDGESHIPS.

    (a) Short Title.--This section may be cited as the ``Bankruptcy 
Judgeship Act of 1999''.
    (b) Temporary Judgeships.--
            (1) Appointments.--The following judgeship positions shall 
        be filled in the manner prescribed in section 152(a)(1) of 
        title 28, United States Code, for the appointment of bankruptcy 
        judges provided for in section 152(a)(2) of such title:
                    (A) One additional bankruptcy judgeship for the 
                eastern district of California.
                    (B) Four additional bankruptcy judgeships for the 
                central district of California.
                    (C) One additional bankruptcy judgeship for the 
                southern district of Florida.
                    (D) Two additional bankruptcy judgeships for the 
                district of Maryland.
                    (E) One additional bankruptcy judgeship for the 
                eastern district of Michigan.
                    (F) One additional bankruptcy judgeship for the 
                southern district of Mississippi.
                    (G) One additional bankruptcy judgeship for the 
                district of New Jersey.
                    (H) One additional bankruptcy judgeship for the 
                eastern district of New York.
                    (I) One additional bankruptcy judgeship for the 
                northern district of New York.
                    (J) One additional bankruptcy judgeship for the 
                southern district of New York.
                    (K) One additional bankruptcy judgeship for the 
                eastern district of Pennsylvania.
                    (L) One additional bankruptcy judgeship for the 
                middle district of Pennsylvania.
                    (M) One additional bankruptcy judgeship for the 
                western district of Tennessee.
                    (N) One additional bankruptcy judgeship for the 
                eastern district of Virginia.
            (2) Vacancies.--The first vacancy occurring in the office 
        of a bankruptcy judge in each of the judicial districts set 
        forth in paragraph (1) that--
                    (A) results from the death, retirement, 
                resignation, or removal of a bankruptcy judge; and
                    (B) occurs 5 years or more after the appointment 
                date of a bankruptcy judge appointed under paragraph 
                (1);

        shall not be filled.
    (c) Extensions.--
            (1) In general.--The temporary bankruptcy judgeship 
        positions authorized for the northern district of Alabama, the 
        district of Delaware, the district of Puerto Rico, the district 
        of South Carolina, and the eastern district of Tennessee under 
        section 3(a) (1), (3), (7), (8), and (9) of the Bankruptcy 
        Judgeship Act of 1992 (28 U.S.C. 152 note) are extended until 
        the first vacancy occurring in the office of a bankruptcy judge 
        in the applicable district resulting from the death, 
        retirement, resignation, or removal of a bankruptcy judge and 
        occurring--
                    (A) 8 years or more after November 8, 1993, with 
                respect to the northern district of Alabama;
                    (B) 10 years or more after October 28, 1993, with 
                respect to the district of Delaware;
                    (C) 8 years or more after August 29, 1994, with 
                respect to the district of Puerto Rico;
                    (D) 8 years or more after June 27, 1994, with 
                respect to the district of South Carolina; and
                    (E) 8 years or more after November 23, 1993, with 
                respect to the eastern district of Tennessee.
            (2) Applicability of other provisions.--All other 
        provisions of section 3 of the Bankruptcy Judgeship Act of 1992 
        remain applicable to such temporary judgeship positions.
    (d) Technical Amendment.--The first sentence of section 152(a)(1) 
of title 28, United States Code, is amended to read as follows: ``Each 
bankruptcy judge to be appointed for a judicial district as provided in 
paragraph (2) shall be appointed by the United States court of appeals 
for the circuit in which such district is located.''.
    (e) Travel Expenses of Bankruptcy Judges.--Section 156 of title 28, 
United States Code, is amended by adding at the end the following:
    ``(g)(1) In this subsection, the term `travel expenses'--
            ``(A) means the expenses incurred by a bankruptcy judge for 
        travel that is not directly related to any case assigned to 
        such bankruptcy judge; and
            ``(B) shall not include the travel expenses of a bankruptcy 
        judge if--
                    ``(i) the payment for the travel expenses is paid 
                by such bankruptcy judge from the personal funds of 
                such bankruptcy judge; and
                    ``(ii) such bankruptcy judge does not receive funds 
                (including reimbursement) from the United States or any 
                other person or entity for the payment of such travel 
                expenses.
    ``(2) Each bankruptcy judge shall annually submit the information 
required under paragraph (3) to the chief bankruptcy judge for the 
district in which the bankruptcy judge is assigned.
    ``(3)(A) Each chief bankruptcy judge shall submit an annual report 
to the Director of the Administrative Office of the United States 
Courts on the travel expenses of each bankruptcy judge assigned to the 
applicable district (including the travel expenses of the chief 
bankruptcy judge of such district).
    ``(B) The annual report under this paragraph shall include--
            ``(i) the travel expenses of each bankruptcy judge, with 
        the name of the bankruptcy judge to whom the travel expenses 
        apply;
            ``(ii) a description of the subject matter and purpose of 
        the travel relating to each travel expense identified under 
        clause (i), with the name of the bankruptcy judge to whom the 
        travel applies; and
            ``(iii) the number of days of each travel described under 
        clause (ii), with the name of the bankruptcy judge to whom the 
        travel applies.
    ``(4)(A) The Director of the Administrative Office of the United 
States Courts shall--
            ``(i) consolidate the reports submitted under paragraph (3) 
        into a single report; and
            ``(ii) annually submit such consolidated report to 
        Congress.
    ``(B) The consolidated report submitted under this paragraph shall 
include the specific information required under paragraph (3)(B), 
including the name of each bankruptcy judge with respect to clauses 
(i), (ii), and (iii) of paragraph (3)(B).''.

     TITLE XIII--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 1301. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

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