[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2820 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2820

 To increase the priority dollar amount for unsecured claims, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 30, 2002

  Mrs. Carnahan (for herself and Mr. Leahy) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL


 
 To increase the priority dollar amount for unsecured claims, 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. FAIR TREATMENT OF COMPENSATION IN BANKRUPTCY.

    (a) Increased Priority Claim Amount for Employee Wages and 
Benefits.--Section 507(a) of title 11, United States Code, is amended--
            (1) in paragraph (3), by striking ``$4,000'' and inserting 
        ``$13,500''; and
            (2) in paragraph (4), by striking ``$4,000'' and inserting 
        ``$13,500''.
    (b) Recovery of Excessive Compensation.--Section 547 of title 11, 
United States Code, is amended by adding at the end the following:
    ``(h) The court, on motion of a party of interest, may avoid any 
transfer of compensation made to a present or former employee, officer, 
or member of the board of directors of the debtor on or within 90 days 
before the date of the filing of the petition that the court finds, 
after notice and a hearing, to be--
            ``(1) out of the ordinary course of business; or
            ``(2) unjust enrichment.''.
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