[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1787 Introduced in Senate (IS)]


109th CONGRESS
  1st Session
                                S. 1787

To provide bankruptcy relief for victims of natural disasters, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2005

 Mr. Vitter (for himself, Mr. Grassley, Mr. Cornyn, and Mr. DeWine) 
        introduced the following bill; which was read twice and 
        referred to the Committee on the JudiciaryYYYYYYYYYYYYYYYYYYYYY

_______________________________________________________________________

                                 A BILL


 
 To provide bankruptcy relief for victims of natural disasters, 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.

    This Act may be cited as the ``Relief to Victims of Hurricane 
Katrina and Other Natural Disasters Act''.

SEC. 2. DEFINITIONS; WHO MAY BE A DEBTOR.

    (a) Current Monthly Income.--Section 101(10A)(B) of title 11, 
United States Code, is amended--
            (1) by striking ``and payments'' and inserting 
        ``payments''; and
            (2) by inserting before the period at the end the 
        following: ``, and payments to victims of a natural disaster by 
        a governmental unit or by a qualified religious or charitable 
        entity or organization, as defined in section 548(d)(4), which 
        were made solely on account of their status as victims of such 
        natural disaster''.
    (b) Natural Disaster; Natural Disaster Zone.--Section 101 of title 
11, United States Code, is amended--
            (1) by redesignating paragraphs (40A) and (40B) as 
        paragraphs (40C) and (40D), respectively; and
            (2) by inserting after paragraph (40) the following:
            ``(40A) The term `natural disaster' means a major disaster, 
        as defined in section 102 of the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act.
            ``(40B) The term `natural disaster zone' means the 
        geographical area included in the determination of a natural 
        disaster.''.
    (c) Victim of Natural Disaster.--Section 101 of title 11, United 
States Code, is amended by adding at the end the following:
            ``(56) The term `victim of a natural disaster' means an 
        individual whose financial condition is materially adversely 
        affected due to--
                    ``(A) damage sustained to the principal residence 
                of that person, where such residence is located in a 
                natural disaster zone, as a result of a natural 
                disaster;
                    ``(B) an inability to remain at the principal 
                residence of that person, where such residence is 
                located in a natural disaster zone, as a result of a 
                natural disaster; or
                    ``(C) an inability to work at the principal place 
                of employment of that person, where such place of 
                employment is located in a natural disaster zone, as a 
                result of a natural disaster.''.
    (d) Who May Be a Debtor.--Section 109(h)(4) of title 11, United 
States Code, is amended by inserting ``natural disaster,'' after 
``disability,''.

SEC. 3. AMENDMENTS TO CHAPTER 5.

    Section 521 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(k) The court, after notice and a hearing upon motion of the 
debtor, may extend any time period specified in this section as may be 
necessary, if the court finds that--
            ``(1) the debtor is a victim of a natural disaster; and
            ``(2) the status of the debtor as a victim of a natural 
        disaster necessitates such extension of time.''.

SEC. 4. AMENDMENTS TO CHAPTER 7.

    (a) Reasonable Necessary Expenses.--Section 707(b)(2)(A)(ii) of 
title 11, United States Code, is amended by adding at the end the 
following:
    ``(VI) In addition, the monthly expenses of the debtor may include 
the actual reasonably necessary expenses incurred as a result of being 
a victim of a natural disaster if the debtor provides documentation of 
such expenses, and a detailed explanation of why such expenses are 
reasonable and necessary, and why such expenses are not accounted for 
by the national standards, local standards, and other necessary 
expenses referred to in subclause (I).''.
    (b) Natural Disaster.--Section 707(b)(2)(B)(i) of title 11, United 
States Code, is amended by inserting ``or a natural disaster'' after 
``such as a serious medical condition or a call or order to active duty 
in the Armed Forces''.

SEC. 5. AMENDMENTS TO CHAPTER 11.

    (a) Conversion of Case.--Section 1112(b) of title 11, United States 
Code, is amended--
            (1) in paragraph (2)(B)(i), by inserting ``, including a 
        natural disaster'' before the semicolon; and
            (2) in paragraph (3), by inserting ``(including a natural 
        disaster)'' after ``circumstances''.
    (b) Who May File a Plan.--Section 1121(e)(3) of title 11, United 
States Code, is amended--
            (1) in subparagraph (A), by inserting ``(i)'' after 
        ``(A)'';
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; or'';
            (3) by redesignating subparagraphs (B) and (C) as clauses 
        (ii) and (iii), respectively; and
            (4) by adding at the end the following:
                    ``(B) the debtor, after providing notice to parties 
                in interest (including the United States trustee) 
                demonstrates that the debtor is unable to meet the 
                deadline because of a natural disaster and a new 
                deadline is imposed at the time the extension is 
                granted and the order extending the time is signed 
                before the expiration of the existing deadline.''.
    (c) Extension of Time for Small Businesses.--Chapter 11 of title 
11, United States Code, is amended--
            (1) in the table of sections, by adding at the end the 
        following:

``Sec. 1117. Extension of time for small businesses'';
        and
            (2) in subchapter I, by adding at the end the following:
``Sec. 1117. Extension of time for small businesses
    ``In a small business case, the court after notice and a hearing 
may extend any deadline specified in this chapter if the court finds 
that such extension is--
            ``(1) necessary to protect the best interests of creditors 
        and the estate; and
            ``(2) warranted by a natural disaster.''.

SEC. 6. AMENDMENTS TO CHAPTER 13.

    (a) Conversion or Dismissal.--Section 1307(e) of title 11, United 
States Code, is amended by adding at the end the following:
``The court, after notice and a hearing on motion of the debtor, may 
extend any time period specified in this subsection as may be 
necessary, if--
            ``(1) the debtor is a victim of a natural disaster;
            ``(2) the status of the debtor as a victim of a natural 
        disaster necessitates such extension of time; and
            ``(3) the debtor files an affidavit stating that such tax 
        return was destroyed or lost as a result of such natural 
        disaster, and that the debtor has requested a copy of such tax 
        return from the taxing authority.''.
    (b) Filing of Prepetition Tax Returns.--Section 1308 of title 11, 
United States Code, is amended by adding at the end the following:
    ``(d) The court, after notice and a hearing on motion of the 
debtor, may extend any time period specified in this subsection as may 
be necessary, if--
            ``(1) the debtor is a victim of a natural disaster;
            ``(2) the status of the debtor as a victim of a natural 
        disaster necessitates such extension of time; and
            ``(3) the debtor files an affidavit stating that such tax 
        return was destroyed or lost as a result of such natural 
        disaster and that the debtor has requested a copy of such tax 
        return from the taxing authority.''.

SEC. 7. VENUE IN CASE OF NATURAL DISASTER.

    Section 1408 of title 28, United States Code, is amended--
            (1) by striking ``Except'' and inserting the following:
    ``(a) In General.--Except''; and
            (2) by adding at the end the following:
    ``(b) Alternative Venue in Case of Natural Disaster.--
            ``(1) In general.--If an individual cannot file a case 
        under title 11 in a district court described in subsection (a) 
        because the individual is a victim of a natural disaster (as 
        defined in section 101 of title 11), then such case may be 
        filed by such individual in the district court for the district 
        in which the individual has resided during the 30-day period 
        preceding the date of filing, upon providing the affidavit 
        required under paragraph (2).
            ``(2) Affidavit required.--An individual described in 
        paragraph (1) shall provide to the court an affidavit stating 
        that--
                    ``(A) such individual is a victim of a natural 
                disaster (as defined in section 101 of title 11); and
                    ``(B) a venue change is necessary because, due to 
                the natural disaster, the individual is not able to 
                reside in the district in which that individual would 
                otherwise be required to commence the case under 
                subsection (a).''.

SEC. 8. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--This Act and the amendments made by this Act 
shall take effect on October 18, 2005.
    (b) Application of Amendments.--The amendments made by this Act 
shall apply only with respect to cases commenced under title 11, United 
States Code, after October 17, 2005.
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