[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 256 Enrolled Bill (ENR)]

        S.256

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
            the fourth day of January, two thousand and five


                                 An Act


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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Bankruptcy Abuse 
Prevention and Consumer Protection Act of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; references; table of contents.

                     TITLE I--NEEDS-BASED BANKRUPTCY

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Sense of Congress and study.
Sec. 104. Notice of alternatives.
Sec. 105. Debtor financial management training test program.
Sec. 106. Credit counseling.
Sec. 107. Schedules of reasonable and necessary expenses.

                 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. Discouraging abuse of reaffirmation agreement practices.
Sec. 204. Preservation of claims and defenses upon sale of predatory 
          loans.
Sec. 205. GAO study and report on reaffirmation agreement process.

                   Subtitle B--Priority Child Support

Sec. 211. Definition of domestic support obligation.
Sec. 212. Priorities for claims for domestic support obligations.
Sec. 213. Requirements to obtain confirmation and discharge in cases 
          involving domestic support obligations.
Sec. 214. Exceptions to automatic stay in domestic support obligation 
          proceedings.
Sec. 215. Nondischargeability of certain debts for alimony, maintenance, 
          and support.
Sec. 216. Continued liability of property.
Sec. 217. Protection of domestic support claims against preferential 
          transfer motions.
Sec. 218. Disposable income defined.
Sec. 219. Collection of child support.
Sec. 220. Nondischargeability of certain educational benefits and loans.

                 Subtitle C--Other Consumer Protections

Sec. 221. Amendments to discourage abusive bankruptcy filings.
Sec. 222. Sense of Congress.
Sec. 223. Additional amendments to title 11, United States Code.
Sec. 224. Protection of retirement savings in bankruptcy.
Sec. 225. Protection of education savings in bankruptcy.
Sec. 226. Definitions.
Sec. 227. Restrictions on debt relief agencies.
Sec. 228. Disclosures.
Sec. 229. Requirements for debt relief agencies.
Sec. 230. GAO study.
Sec. 231. Protection of personally identifiable information.
Sec. 232. Consumer privacy ombudsman.
Sec. 233. Prohibition on disclosure of name of minor children.
Sec. 234. Protection of personal information.

                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

Sec. 301. Technical amendments.
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. Domiciliary requirements for exemptions.
Sec. 308. Reduction of homestead exemption for fraud.
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 Congress regarding expansion of rule 9011 of the 
          Federal Rules of Bankruptcy Procedure.
Sec. 320. Prompt relief from stay in individual cases.
Sec. 321. Chapter 11 cases filed by individuals.
Sec. 322. Limitations on homestead exemption.
Sec. 323. Excluding employee benefit plan participant contributions and 
          other property from the estate.
Sec. 324. Exclusive jurisdiction in matters involving bankruptcy 
          professionals.
Sec. 325. United States trustee program filing fee increase.
Sec. 326. Sharing of compensation.
Sec. 327. Fair valuation of collateral.
Sec. 328. Defaults based on nonmonetary obligations.
Sec. 329. Clarification of postpetition wages and benefits.
Sec. 330. Delay of discharge during pendency of certain proceedings.
Sec. 331. Limitation on retention bonuses, severance pay, and certain 
          other payments.
Sec. 332. Fraudulent involuntary bankruptcy.

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

Sec. 401. Adequate protection for investors.
Sec. 402. Meetings of creditors and equity security holders.
Sec. 403. Protection of refinance of security interest.
Sec. 404. Executory contracts and unexpired leases.
Sec. 405. Creditors and equity security holders committees.
Sec. 406. Amendment to section 546 of title 11, United States Code.
Sec. 407. Amendments to section 330(a) of title 11, United States Code.
Sec. 408. Postpetition disclosure and solicitation.
Sec. 409. Preferences.
Sec. 410. Venue of certain proceedings.
Sec. 411. Period for filing plan under chapter 11.
Sec. 412. Fees arising from certain ownership interests.
Sec. 413. Creditor representation at first meeting of creditors.
Sec. 414. Definition of disinterested person.
Sec. 415. Factors for compensation of professional persons.
Sec. 416. Appointment of elected trustee.
Sec. 417. Utility service.
Sec. 418. Bankruptcy fees.
Sec. 419. More complete information regarding assets of the estate.

            Subtitle B--Small Business Bankruptcy Provisions

Sec. 431. Flexible rules for disclosure statement and plan.
Sec. 432. Definitions.
Sec. 433. Standard form disclosure statement and plan.
Sec. 434. Uniform national reporting requirements.
Sec. 435. Uniform reporting rules and forms for small business cases.
Sec. 436. Duties in small business cases.
Sec. 437. Plan filing and confirmation deadlines.
Sec. 438. Plan confirmation deadline.
Sec. 439. Duties of the United States trustee.
Sec. 440. Scheduling conferences.
Sec. 441. Serial filer provisions.
Sec. 442. Expanded grounds for dismissal or conversion and appointment 
          of trustee.
Sec. 443. Study of operation of title 11, United States Code, with 
          respect to small businesses.
Sec. 444. Payment of interest.
Sec. 445. Priority for administrative expenses.
Sec. 446. Duties with respect to a debtor who is a plan administrator of 
          an employee benefit plan.
Sec. 447. Appointment of committee of retired employees.

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.

                        TITLE VI--BANKRUPTCY DATA

Sec. 601. Improved bankruptcy statistics.
Sec. 602. Uniform rules for the collection of bankruptcy data.
Sec. 603. Audit procedures.
Sec. 604. Sense of Congress regarding availability of bankruptcy data.

                  TITLE VII--BANKRUPTCY TAX PROVISIONS

Sec. 701. Treatment of certain liens.
Sec. 702. Treatment of fuel tax claims.
Sec. 703. Notice of request for a determination of taxes.
Sec. 704. Rate of interest on tax claims.
Sec. 705. Priority of tax claims.
Sec. 706. Priority property taxes incurred.
Sec. 707. No discharge of fraudulent taxes in chapter 13.
Sec. 708. No discharge of fraudulent taxes in chapter 11.
Sec. 709. Stay of tax proceedings limited to prepetition taxes.
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.
Sec. 719. Special provisions related to the treatment of State and local 
          taxes.
Sec. 720. Dismissal for failure to timely file tax returns.

           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 801. Amendment to add chapter 15 to title 11, United States Code.
Sec. 802. Other amendments to titles 11 and 28, United States Code.

                 TITLE IX--FINANCIAL CONTRACT PROVISIONS

Sec. 901. Treatment of certain agreements by conservators or receivers 
          of insured depository institutions.
Sec. 902. Authority of the FDIC and NCUAB with respect to failed and 
          failing institutions.
Sec. 903. Amendments relating to transfers of qualified financial 
          contracts.
Sec. 904. Amendments relating to disaffirmance or repudiation of 
          qualified financial contracts.
Sec. 905. Clarifying amendment relating to master agreements.
Sec. 906. Federal Deposit Insurance Corporation Improvement Act of 1991.
Sec. 907. Bankruptcy law amendments.
Sec. 908. Recordkeeping requirements.
Sec. 909. Exemptions from contemporaneous execution requirement.
Sec. 910. Damage measure.
Sec. 911. SIPC stay.

       TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN

Sec. 1001. Permanent reenactment of chapter 12.
Sec. 1002. Debt limit increase.
Sec. 1003. Certain claims owed to governmental units.
Sec. 1004. Definition of family farmer.
Sec. 1005. Elimination of requirement that family farmer and spouse 
          receive over 50 percent of income from farming operation in 
          year prior to bankruptcy.
Sec. 1006. Prohibition of retroactive assessment of disposable income.
Sec. 1007. Family fishermen.

               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 and other administrative expenses.
Sec. 1104. Appointment of ombudsman to act as patient advocate.
Sec. 1105. Debtor in possession; duty of trustee to transfer patients.
Sec. 1106. Exclusion from program participation not subject to automatic 
          stay.

                     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. Effect of conversion.
Sec. 1208. Allowance of administrative expenses.
Sec. 1209. Exceptions to discharge.
Sec. 1210. Effect of discharge.
Sec. 1211. Protection against discriminatory treatment.
Sec. 1212. Property of the estate.
Sec. 1213. Preferences.
Sec. 1214. Postpetition transactions.
Sec. 1215. Disposition of property of the estate.
Sec. 1216. General provisions.
Sec. 1217. Abandonment of railroad line.
Sec. 1218. Contents of plan.
Sec. 1219. Bankruptcy cases and proceedings.
Sec. 1220. Knowing disregard of bankruptcy law or rule.
Sec. 1221. Transfers made by nonprofit charitable corporations.
Sec. 1222. Protection of valid purchase money security interests.
Sec. 1223. Bankruptcy Judgeships.
Sec. 1224. Compensating trustees.
Sec. 1225. Amendment to section 362 of title 11, United States Code.
Sec. 1226. Judicial education.
Sec. 1227. Reclamation.
Sec. 1228. Providing requested tax documents to the court.
Sec. 1229. Encouraging creditworthiness.
Sec. 1230. Property no longer subject to redemption.
Sec. 1231. Trustees.
Sec. 1232. Bankruptcy forms.
Sec. 1233. Direct appeals of bankruptcy matters to courts of appeals.
Sec. 1234. Involuntary cases.
Sec. 1235. Federal election law fines and penalties as nondischargeable 
          debt.

                 TITLE XIII--CONSUMER CREDIT DISCLOSURE

Sec. 1301. Enhanced disclosures under an open end credit plan.
Sec. 1302. Enhanced disclosure for credit extensions secured by a 
          dwelling.
Sec. 1303. Disclosures related to ``introductory rates''.
Sec. 1304. Internet-based credit card solicitations.
Sec. 1305. Disclosures related to late payment deadlines and penalties.
Sec. 1306. Prohibition on certain actions for failure to incur finance 
          charges.
Sec. 1307. Dual use debit card.
Sec. 1308. Study of bankruptcy impact of credit extended to dependent 
          students.
Sec. 1309. Clarification of clear and conspicuous.

            TITLE XIV--PREVENTING CORPORATE BANKRUPTCY ABUSE

Sec. 1401. Employee wage and benefit priorities.
Sec. 1402. Fraudulent transfers and obligations.
Sec. 1403. Payment of insurance benefits to retired employees.
Sec. 1404. Debts nondischargeable if incurred in violation of securities 
          fraud laws.
Sec. 1405. Appointment of trustee in cases of suspected fraud.
Sec. 1406. Effective date; application of amendments.

       TITLE XV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 1501. Effective date; application of amendments.
Sec. 1502. Technical corrections.

                    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 
            11 or 13'';

    and
        (2) in subsection (b)--
            (A) by inserting ``(1)'' after ``(b)'';
            (B) in paragraph (1), as so redesignated by subparagraph 
        (A) of this paragraph--
                (i) in the first sentence--

                    (I) by striking ``but not at the request or 
                suggestion of'' and inserting ``trustee (or bankruptcy 
                administrator, if any), or'';
                    (II) by inserting ``, or, with the debtor's 
                consent, convert such a case to a case under chapter 11 
                or 13 of this title,'' after ``consumer debts''; and
                    (III) by striking ``a substantial abuse'' and 
                inserting ``an 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 $6,000, whichever is greater; or
        ``(II) $10,000.
    ``(ii)(I) The debtor's monthly expenses shall be the debtor's 
applicable monthly expense amounts specified under the National 
Standards and Local Standards, and the debtor's actual monthly expenses 
for the categories specified as Other Necessary Expenses issued by the 
Internal Revenue Service for the area in which the debtor resides, as 
in effect on the date 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. Such expenses shall include 
reasonably necessary health insurance, disability insurance, and health 
savings account expenses for the debtor, the spouse of the debtor, or 
the dependents of the debtor. Notwithstanding any other provision of 
this clause, the monthly expenses of the debtor shall not include any 
payments for debts. In addition, the debtor's monthly expenses shall 
include the debtor's reasonably necessary expenses incurred to maintain 
the safety of the debtor and the family of the debtor from family 
violence as identified under section 309 of the Family Violence 
Prevention and Services Act, or other applicable Federal law. The 
expenses included in the debtor's monthly expenses described in the 
preceding sentence shall be kept confidential by the court. In 
addition, if it is demonstrated that it is reasonable and necessary, 
the debtor's monthly expenses may also include an additional allowance 
for food and clothing of up to 5 percent of the food and clothing 
categories as specified by the National Standards issued by the 
Internal Revenue Service.
    ``(II) In addition, the debtor's monthly expenses may include, if 
applicable, the continuation of actual expenses paid by the debtor that 
are reasonable and necessary for care and support of an elderly, 
chronically ill, or disabled household member or member of the debtor's 
immediate family (including parents, grandparents, siblings, children, 
and grandchildren of the debtor, the dependents of the debtor, and the 
spouse of the debtor in a joint case who is not a dependent) and who is 
unable to pay for such reasonable and necessary expenses.
    ``(III) In addition, for a debtor eligible for chapter 13, the 
debtor's monthly expenses may include the actual administrative 
expenses of administering a chapter 13 plan for the district in which 
the debtor resides, up to an amount of 10 percent of the projected plan 
payments, as determined under schedules issued by the Executive Office 
for United States Trustees.
    ``(IV) In addition, the debtor's monthly expenses may include the 
actual expenses for each dependent child less than 18 years of age, not 
to exceed $1,500 per year per child, to attend a private or public 
elementary or secondary school 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 already 
accounted for in the National Standards, Local Standards, or Other 
Necessary Expenses referred to in subclause (I).
    ``(V) In addition, the debtor's monthly expenses may include an 
allowance for housing and utilities, in excess of the allowance 
specified by the Local Standards for housing and utilities issued by 
the Internal Revenue Service, based on the actual expenses for home 
energy costs if the debtor provides documentation of such actual 
expenses and demonstrates that such actual expenses are reasonable and 
necessary.
    ``(iii) The debtor's average monthly payments on account of secured 
debts shall be calculated as the sum of--
        ``(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; and
        ``(II) any additional payments to secured creditors necessary 
    for the debtor, in filing a plan under chapter 13 of this title, to 
    maintain possession of the debtor's primary residence, motor 
    vehicle, or other property necessary for the support of the debtor 
    and the debtor's dependents, that serves as collateral for secured 
    debts;
divided by 60.
    ``(iv) The debtor's expenses for payment of all priority claims 
(including priority child support and alimony claims) shall be 
calculated as the total amount of debts entitled to priority, divided 
by 60.
    ``(B)(i) In any proceeding brought under this subsection, the 
presumption of abuse may only be rebutted by demonstrating special 
circumstances, such as a serious medical condition or a call or order 
to active duty in the Armed Forces, to the extent such special 
circumstances that justify additional expenses or adjustments of 
current monthly income for which there is no reasonable alternative.
    ``(ii) In order to establish special circumstances, the debtor 
shall be required to itemize each additional expense or adjustment of 
income and to provide--
        ``(I) documentation for such expense or adjustment to income; 
    and
        ``(II) a detailed explanation of the special circumstances that 
    make such expenses or adjustment to income necessary and 
    reasonable.
    ``(iii) The debtor shall attest under oath to the accuracy of any 
information provided to demonstrate that additional expenses or 
adjustments to income are required.
    ``(iv) The presumption of abuse may only 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) when multiplied by 60 to be less than the lesser of--
        ``(I) 25 percent of the debtor's nonpriority unsecured claims, 
    or $6,000, whichever is greater; or
        ``(II) $10,000.
    ``(C) 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 show how 
each such amount is calculated.
    ``(D) Subparagraphs (A) through (C) shall not apply, and the court 
may not dismiss or convert a case based on any form of means testing, 
if the debtor is a disabled veteran (as defined in section 3741(1) of 
title 38), and the indebtedness occurred primarily during a period 
during which he or she was--
        ``(i) on active duty (as defined in section 101(d)(1) of title 
    10); or
        ``(ii) performing a homeland defense activity (as defined in 
    section 901(1) of title 32).
    ``(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 
arise or is 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.
    ``(4)(A) The court, on its own initiative or on the motion of a 
party in interest, in accordance with the procedures described in rule 
9011 of the Federal Rules of Bankruptcy Procedure, may order the 
attorney for the debtor to reimburse the trustee for all reasonable 
costs in prosecuting a motion filed under section 707(b), including 
reasonable attorneys' fees, if--
        ``(i) a trustee files a motion for dismissal or conversion 
    under this subsection; and
        ``(ii) the court--
            ``(I) grants such motion; and
            ``(II) finds that the action of the attorney for the debtor 
        in filing a case under this chapter violated rule 9011 of the 
        Federal Rules of Bankruptcy Procedure.
    ``(B) If the court finds that the attorney for the debtor violated 
rule 9011 of the Federal Rules of Bankruptcy Procedure, the court, on 
its own initiative or on the motion of a party in interest, in 
accordance with such procedures, may order--
        ``(i) the assessment of an appropriate civil penalty against 
    the attorney for the debtor; and
        ``(ii) the payment of such civil penalty to the trustee, the 
    United States trustee (or the bankruptcy administrator, if any).
    ``(C) The signature of an attorney on a petition, pleading, or 
written motion shall constitute a certification that the attorney has--
        ``(i) performed a reasonable investigation into the 
    circumstances that gave rise to the petition, pleading, or written 
    motion; and
        ``(ii) determined that the petition, pleading, or written 
    motion--
            ``(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).
    ``(D) The signature of an attorney on the petition shall constitute 
a certification that the attorney has no knowledge after an inquiry 
that the information in the schedules filed with such petition is 
incorrect.
    ``(5)(A) Except as provided in subparagraph (B) and subject to 
paragraph (6), the court, on its own initiative or on the motion of a 
party in interest, in accordance with the procedures described in rule 
9011 of the Federal Rules of Bankruptcy Procedure, may award a debtor 
all reasonable costs (including reasonable attorneys' fees) in 
contesting a motion filed by a party in interest (other than a trustee 
or United States trustee (or bankruptcy administrator, if any)) under 
this subsection if--
        ``(i) the court does not grant the motion; and
        ``(ii) the court finds that--
            ``(I) the position of the party that filed the motion 
        violated rule 9011 of the Federal Rules of Bankruptcy 
        Procedure; or
            ``(II) the attorney (if any) who filed the motion did not 
        comply with the requirements of clauses (i) and (ii) of 
        paragraph (4)(C), and the motion was made solely for the 
        purpose of coercing a debtor into waiving a right guaranteed to 
        the debtor under this title.
    ``(B) A small business that has a claim of an aggregate amount less 
than $1,000 shall not be subject to subparagraph (A)(ii)(I).
    ``(C) For purposes of this paragraph--
        ``(i) the term `small business' means an unincorporated 
    business, partnership, corporation, association, or organization 
    that--
            ``(I) has fewer than 25 full-time employees as determined 
        on the date on which the motion is filed; and
            ``(II) is engaged in commercial or business activity; and
        ``(ii) the number of employees of a wholly owned subsidiary of 
    a corporation includes the employees of--
            ``(I) a parent corporation; and
            ``(II) any other subsidiary corporation of the parent 
        corporation.
    ``(6) Only the judge or United States trustee (or bankruptcy 
administrator, if any) may file a motion under section 707(b), if the 
current monthly income of the debtor, or in a joint case, the debtor 
and the debtor's spouse, as of the date of the order for relief, when 
multiplied by 12, is equal to or less than--
        ``(A) in the case of a debtor in a household of 1 person, the 
    median family income of the applicable State for 1 earner;
        ``(B) in the case of a debtor in a household of 2, 3, or 4 
    individuals, the highest median family income of the applicable 
    State for a family of the same number or fewer individuals; or
        ``(C) in the case of a debtor in a household exceeding 4 
    individuals, the highest median family income of the applicable 
    State for a family of 4 or fewer individuals, plus $525 per month 
    for each individual in excess of 4.
    ``(7)(A) No judge, United States trustee (or bankruptcy 
administrator, if any), trustee, or other party in interest may file a 
motion under paragraph (2) if the current monthly income of the debtor, 
including a veteran (as that term is defined in section 101 of title 
38), and the debtor's spouse combined, as of the date of the order for 
relief when multiplied by 12, is equal to or less than--
        ``(i) in the case of a debtor in a household of 1 person, the 
    median family income of the applicable State for 1 earner;
        ``(ii) in the case of a debtor in a household of 2, 3, or 4 
    individuals, the highest median family income of the applicable 
    State for a family of the same number or fewer individuals; or
        ``(iii) in the case of a debtor in a household exceeding 4 
    individuals, the highest median family income of the applicable 
    State for a family of 4 or fewer individuals, plus $525 per month 
    for each individual in excess of 4.
    ``(B) In a case that is not a joint case, current monthly income of 
the debtor's spouse shall not be considered for purposes of 
subparagraph (A) if--
        ``(i)(I) the debtor and the debtor's spouse are separated under 
    applicable nonbankruptcy law; or
        ``(II) the debtor and the debtor's spouse are living separate 
    and apart, other than for the purpose of evading subparagraph (A); 
    and
        ``(ii) the debtor files a statement under penalty of perjury--
            ``(I) specifying that the debtor meets the requirement of 
        subclause (I) or (II) of clause (i); and
            ``(II) disclosing the aggregate, or best estimate of the 
        aggregate, amount of any cash or money payments received from 
        the debtor's spouse attributed to the debtor's current monthly 
        income.''.
    (b) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (10) the following:
        ``(10A) `current monthly income'--
            ``(A) means the average monthly income from all sources 
        that the debtor receives (or in a joint case the debtor and the 
        debtor's spouse receive) without regard to whether such income 
        is taxable income, derived during the 6-month period ending 
        on--
                ``(i) the last day of the calendar month immediately 
            preceding the date of the commencement of the case if the 
            debtor files the schedule of current income required by 
            section 521(a)(1)(B)(ii); or
                ``(ii) the date on which current income is determined 
            by the court for purposes of this title if the debtor does 
            not file the schedule of current income required by section 
            521(a)(1)(B)(ii); 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 for 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), but excludes benefits 
        received under the Social Security Act, payments to victims of 
        war crimes or crimes against humanity on account of their 
        status as victims of such crimes, and payments to victims of 
        international terrorism (as defined in section 2331 of title 
        18) or domestic terrorism (as defined in section 2331 of title 
        18) on account of their status as victims of such terrorism;''.
    (c) United States Trustee and Bankruptcy Administrator Duties.--
Section 704 of title 11, United States Code, is amended--
        (1) by inserting ``(a)'' before ``The trustee shall--''; and
        (2) by adding at the end the following:
    ``(b)(1) With respect to a debtor who is an individual in a case 
under this chapter--
        ``(A) the United States trustee (or the bankruptcy 
    administrator, if any) shall review all materials filed by the 
    debtor and, not later than 10 days after the date of 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, if 
any) shall, not later than 30 days after the date of filing a statement 
under paragraph (1), either file a motion to dismiss or convert under 
section 707(b) or file a statement setting forth the reasons the United 
States trustee (or the bankruptcy administrator, if any) does not 
consider such a motion to be appropriate, if the United States trustee 
(or the bankruptcy administrator, if any) 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) in the case of a debtor in a household of 1 person, the 
    median family income of the applicable State for 1 earner; or
        ``(B) in the case of a debtor in a household of 2 or more 
    individuals, the highest median family income of the applicable 
    State for a family of the same number or fewer individuals.''.
    (d) Notice.--Section 342 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(d) In a case under chapter 7 of this title in which the debtor 
is an individual and in which the presumption of abuse arises under 
section 707(b), the clerk shall give written notice to all creditors 
not later than 10 days after the date of the filing of the petition 
that the presumption of abuse has arisen.''.
    (e) Nonlimitation of Information.--Nothing in this title shall 
limit the ability of a creditor to provide information to a judge 
(except for information communicated ex parte, unless otherwise 
permitted by applicable law), United States trustee (or bankruptcy 
administrator, if any), or trustee.
    (f) Dismissal for Certain Crimes.--Section 707 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(c)(1) In this subsection--
        ``(A) the term `crime of violence' has the meaning given such 
    term in section 16 of title 18; and
        ``(B) the term `drug trafficking crime' has the meaning given 
    such term in section 924(c)(2) of title 18.
    ``(2) Except as provided in paragraph (3), after notice and a 
hearing, the court, on a motion by the victim of a crime of violence or 
a drug trafficking crime, may when it is in the best interest of the 
victim dismiss a voluntary case filed under this chapter by a debtor 
who is an individual if such individual was convicted of such crime.
    ``(3) The court may not dismiss a case under paragraph (2) if the 
debtor establishes by a preponderance of the evidence that the filing 
of a case under this chapter is necessary to satisfy a claim for a 
domestic support obligation.''.
    (g) Confirmation of Plan.--Section 1325(a) 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 and inserting a 
    semicolon; and
        (3) by inserting after paragraph (6) the following:
        ``(7) the action of the debtor in filing the petition was in 
    good faith;''.
    (h) Applicability of Means Test to Chapter 13.--Section 1325(b) of 
title 11, United States Code, is amended--
        (1) in paragraph (1)(B), by inserting ``to unsecured 
    creditors'' after ``to make payments''; and
        (2) by striking paragraph (2) and inserting the following:
        ``(2) For purposes of this subsection, the term `disposable 
    income' means current monthly income received by the debtor (other 
    than child support payments, foster care payments, or disability 
    payments for a dependent child made in accordance with applicable 
    nonbankruptcy law to the extent reasonably necessary to be expended 
    for such child) less amounts reasonably necessary to be expended--
            ``(A)(i) for the maintenance or support of the debtor or a 
        dependent of the debtor, or for a domestic support obligation, 
        that first becomes payable after the date the petition is 
        filed; and
            ``(ii) for charitable contributions (that meet the 
        definition of `charitable contribution' under section 548(d)(3) 
        to a qualified religious or charitable entity or organization 
        (as defined in section 548(d)(4)) in an amount not to exceed 15 
        percent of gross income of the debtor for the year in which the 
        contributions are made; and
            ``(B) if the debtor is engaged in business, for the payment 
        of expenditures necessary for the continuation, preservation, 
        and operation of such business.
        ``(3) Amounts reasonably necessary to be expended under 
    paragraph (2) shall be determined in accordance with subparagraphs 
    (A) and (B) of section 707(b)(2), if the debtor has current monthly 
    income, when multiplied by 12, greater than--
            ``(A) in the case of a debtor in a household of 1 person, 
        the median family income of the applicable State for 1 earner;
            ``(B) in the case of a debtor in a household of 2, 3, or 4 
        individuals, the highest median family income of the applicable 
        State for a family of the same number or fewer individuals; or
            ``(C) in the case of a debtor in a household exceeding 4 
        individuals, the highest median family income of the applicable 
        State for a family of 4 or fewer individuals, plus $525 per 
        month for each individual in excess of 4.''.
    (i) Special Allowance for Health Insurance.--Section 1329(a) 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) reduce amounts to be paid under the plan by the actual 
    amount expended by the debtor to purchase health insurance for the 
    debtor (and for any dependent of the debtor if such dependent does 
    not otherwise have health insurance coverage) if the debtor 
    documents the cost of such insurance and demonstrates that--
            ``(A) such expenses are reasonable and necessary;
            ``(B)(i) if the debtor previously paid for health 
        insurance, the amount is not materially larger than the cost 
        the debtor previously paid or the cost necessary to maintain 
        the lapsed policy; or
            ``(ii) if the debtor did not have health insurance, the 
        amount is not materially larger than the reasonable cost that 
        would be incurred by a debtor who purchases health insurance, 
        who has similar income, expenses, age, and health status, and 
        who lives in the same geographical location with the same 
        number of dependents who do not otherwise have health insurance 
        coverage; and
            ``(C) the amount is not otherwise allowed for purposes of 
        determining disposable income under section 1325(b) of this 
        title;
    and upon request of any party in interest, files proof that a 
    health insurance policy was purchased.''.
    (j) Adjustment of Dollar Amounts.--Section 104(b) of title 11, 
United States Code, is amended by striking ``and 523(a)(2)(C)'' each 
place it appears and inserting ``523(a)(2)(C), 707(b), and 
1325(b)(3)''.
    (k) Definition of `Median Family Income'.--Section 101 of title 11, 
United States Code, is amended by inserting after paragraph (39) the 
following:
        ``(39A) `median family income' means for any year--
            ``(A) the median family income both calculated and reported 
        by the Bureau of the Census in the then most recent year; and
            ``(B) if not so calculated and reported in the then current 
        year, adjusted annually after such most recent year until the 
        next year in which median family income is both calculated and 
        reported by the Bureau of the Census, to reflect the percentage 
        change in the Consumer Price Index for All Urban Consumers 
        during the period of years occurring after such most recent 
        year and before such current year;''.
    (k) 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 11 or 
          13.''.

SEC. 103. SENSE OF CONGRESS AND STUDY.

    (a) Sense of Congress.--It is the sense of Congress that the 
Secretary of the Treasury has the authority to alter the Internal 
Revenue Service standards established to set guidelines for repayment 
plans as needed to accommodate their use under section 707(b) of title 
11, United States Code.
    (b) Study.--
        (1) In general.--Not later than 2 years after the date of 
    enactment of this Act, the Director of the Executive Office for 
    United States Trustees shall submit a report to the Committee on 
    the Judiciary of the Senate and the Committee on the Judiciary of 
    the House of Representatives containing the findings of the 
    Director regarding the utilization of Internal Revenue Service 
    standards for determining--
            (A) the current monthly expenses of a debtor under section 
        707(b) of title 11, United States Code; and
            (B) the impact that the application of such standards has 
        had on debtors and on the bankruptcy courts.
        (2) Recommendation.--The report under paragraph (1) may include 
    recommendations for amendments to title 11, United States Code, 
    that are consistent with the findings of the Director under 
    paragraph (1).

SEC. 104. NOTICE OF ALTERNATIVES.

    Section 342(b) of title 11, United States Code, is amended to read 
as follows:
    ``(b) Before the commencement of a case under this title by an 
individual whose debts are primarily consumer debts, the clerk shall 
give to such individual written notice containing--
        ``(1) a brief description of--
            ``(A) chapters 7, 11, 12, and 13 and the general purpose, 
        benefits, and costs of proceeding under each of those chapters; 
        and
            ``(B) the types of services available from credit 
        counseling agencies; and
        ``(2) statements specifying that--
            ``(A) a person who knowingly and fraudulently conceals 
        assets or makes a false oath or statement under penalty of 
        perjury in connection with a case under this title shall be 
        subject to fine, imprisonment, or both; and
            ``(B) all information supplied by a debtor in connection 
        with a case under this title is subject to examination by the 
        Attorney General.''.

SEC. 105. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

    (a) Development of Financial Management and Training Curriculum and 
Materials.--The Director of the Executive Office for United States 
Trustees (in this section referred to as the ``Director'') shall 
consult with a wide range of individuals who are experts in the field 
of debtor education, including trustees who serve in cases under 
chapter 13 of title 11, United States Code, and who operate financial 
management education programs for debtors, and shall develop a 
financial management training curriculum and materials that can be used 
to educate debtors who are individuals on how to better manage their 
finances.
    (b) Test.--
        (1) Selection of districts.--The Director shall select 6 
    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) Use.--For an 18-month period beginning not later than 270 
    days after the date of the enactment of this Act, such curriculum 
    and materials shall be, for the 6 judicial districts selected under 
    paragraph (1), used as the instructional course concerning personal 
    financial management for purposes of section 111 of title 11, 
    United States Code.
    (c) Evaluation.--
        (1) In general.--During the 18-month period referred to in 
    subsection (b), the Director shall evaluate the effectiveness of--
            (A) the financial management training curriculum and 
        materials developed under subsection (a); and
            (B) a sample of existing consumer education programs such 
        as those described in the Report of the National Bankruptcy 
        Review Commission (October 20, 1997) that are representative of 
        consumer education programs carried out by the credit industry, 
        by trustees serving under chapter 13 of title 11, United States 
        Code, and by consumer counseling groups.
        (2) Report.--Not later than 3 months after concluding such 
    evaluation, the Director shall submit a report to the Speaker of 
    the House of Representatives and the President pro tempore of the 
    Senate, for referral to the appropriate committees of the Congress, 
    containing the findings of the Director regarding the effectiveness 
    of such curriculum, such materials, and such programs and their 
    costs.

SEC. 106. 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 such individual has, during the 180-day period 
preceding the date of filing of the petition by such individual, 
received from an approved nonprofit budget and credit counseling agency 
described in section 111(a) an individual or group briefing (including 
a briefing conducted by telephone or on the Internet) that outlined the 
opportunities for available credit counseling and assisted such 
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 the 
bankruptcy administrator, if any) determines that the approved 
nonprofit budget and credit counseling agencies for such district are 
not reasonably able to provide adequate services to the additional 
individuals who would otherwise seek credit counseling from such 
agencies by reason of the requirements of paragraph (1).
    ``(B) The United States trustee (or the bankruptcy administrator, 
if any) who makes a determination described in subparagraph (A) shall 
review such determination not later than 1 year after the date of such 
determination, and not less frequently than annually thereafter. 
Notwithstanding the preceding sentence, a nonprofit budget and credit 
counseling agency may be disapproved by the United States trustee (or 
the bankruptcy administrator, if any) at any time.
    ``(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 budget and credit counseling 
    agency, 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, except that the court, for cause, may order an 
additional 15 days.
    ``(4) The requirements of paragraph (1) shall not apply with 
respect to a debtor whom the court determines, after notice and 
hearing, is unable to complete those requirements because of 
incapacity, disability, or active military duty in a military combat 
zone. For the purposes of this paragraph, incapacity means that the 
debtor is impaired by reason of mental illness or mental deficiency so 
that he is incapable of realizing and making rational decisions with 
respect to his financial responsibilities; and ``disability'' means 
that the debtor is so physically impaired as to be unable, after 
reasonable effort, to participate in an in person, telephone, or 
Internet briefing required under paragraph (1).''.
    (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 filing the petition, the debtor failed to complete 
    an instructional course concerning personal financial management 
    described in section 111, except that this paragraph shall not 
    apply with respect to a debtor who is a person described in section 
    109(h)(4) or who resides in a district for which the United States 
    trustee (or the bankruptcy administrator, if any) determines that 
    the approved instructional courses are not adequate to service the 
    additional individuals who would otherwise be required to complete 
    such instructional courses under this section (The United States 
    trustee (or the bankruptcy administrator, if any) who makes a 
    determination described in this paragraph shall review such 
    determination not later than 1 year after the date of such 
    determination, and not less frequently than annually 
    thereafter.).''.
    (c) Chapter 13 Discharge.--Section 1328 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(g)(1) 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.
    ``(2) Paragraph (1) shall not apply with respect to a debtor who is 
a person described in section 109(h)(4) or who resides in a district 
for which the United States trustee (or the bankruptcy administrator, 
if any) determines that the approved instructional courses are not 
adequate to service the additional individuals who would otherwise be 
required to complete such instructional course by reason of the 
requirements of paragraph (1).
    ``(3) The United States trustee (or the bankruptcy administrator, 
if any) who makes a determination described in paragraph (2) shall 
review such determination not later than 1 year after the date of such 
determination, and not less frequently than annually 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), a 
debtor who is an individual shall file with the court--
        ``(1) a certificate from the approved nonprofit budget and 
    credit counseling agency that provided the debtor services under 
    section 109(h) describing the services provided to the debtor; and
        ``(2) a copy of the debt repayment plan, if any, developed 
    under section 109(h) through the approved nonprofit budget and 
    credit counseling agency 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. Nonprofit budget and credit counseling agencies; financial 
            management instructional courses

    ``(a) The clerk shall maintain a publicly available list of--
        ``(1) nonprofit budget and credit counseling agencies that 
    provide 1 or more services described in section 109(h) currently 
    approved by the United States trustee (or the bankruptcy 
    administrator, if any); and
        ``(2) instructional courses concerning personal financial 
    management currently approved by the United States trustee (or the 
    bankruptcy administrator, if any), as applicable.
    ``(b) The United States trustee (or bankruptcy administrator, if 
any) shall only approve a nonprofit budget and credit counseling agency 
or an instructional course concerning personal financial management as 
follows:
        ``(1) The United States trustee (or bankruptcy administrator, 
    if any) shall have thoroughly reviewed the qualifications of the 
    nonprofit budget and credit counseling agency or of the provider of 
    the instructional course under the standards set forth in this 
    section, and the services or instructional courses that will be 
    offered by such agency or such provider, and may require such 
    agency or such provider that has sought approval to provide 
    information with respect to such review.
        ``(2) The United States trustee (or bankruptcy administrator, 
    if any) shall have determined that such agency or such 
    instructional course fully satisfies the applicable standards set 
    forth in this section.
        ``(3) If a nonprofit budget and credit counseling agency or 
    instructional course did not appear on the approved list for the 
    district under subsection (a) immediately before approval under 
    this section, approval under this subsection of such agency or such 
    instructional course shall be for a probationary period not to 
    exceed 6 months.
        ``(4) At the conclusion of the applicable probationary period 
    under paragraph (3), the United States trustee (or bankruptcy 
    administrator, if any) may only approve for an additional 1-year 
    period, and for successive 1-year periods thereafter, an agency or 
    instructional course that has demonstrated during the probationary 
    or applicable subsequent period of approval that such agency or 
    instructional course--
            ``(A) has met the standards set forth under this section 
        during such period; and
            ``(B) can satisfy such standards in the future.
        ``(5) Not later than 30 days after any final decision under 
    paragraph (4), an interested person may seek judicial review of 
    such decision in the appropriate district court of the United 
    States.
    ``(c)(1) The United States trustee (or the bankruptcy 
administrator, if any) shall only approve a nonprofit budget and credit 
counseling agency that demonstrates that it will provide qualified 
counselors, maintain adequate provision for safekeeping and payment of 
client funds, provide adequate counseling with respect to client credit 
problems, and deal responsibly and effectively with other matters 
relating to the quality, effectiveness, and financial security of the 
services it provides.
    ``(2) To be approved by the United States trustee (or the 
bankruptcy administrator, if any), a nonprofit budget and credit 
counseling agency shall, at a minimum--
        ``(A) have a board of directors the majority of which--
            ``(i) are not employed by such agency; and
            ``(ii) will not directly or indirectly benefit financially 
        from the outcome of the counseling services provided by such 
        agency;
        ``(B) if a fee is charged for counseling services, charge a 
    reasonable fee, and provide services without regard to ability to 
    pay the fee;
        ``(C) provide for safekeeping and payment of client funds, 
    including an annual audit of the trust accounts and appropriate 
    employee bonding;
        ``(D) provide full disclosures to a client, including funding 
    sources, counselor qualifications, possible impact on credit 
    reports, and any costs of such program that will be paid by such 
    client and how such costs will be paid;
        ``(E) provide adequate counseling with respect to a client's 
    credit problems that includes an analysis of such client's current 
    financial condition, factors that caused such financial condition, 
    and how such client can develop a plan to respond to the problems 
    without incurring negative amortization of debt;
        ``(F) provide trained counselors who receive no commissions or 
    bonuses based on the outcome of the counseling services provided by 
    such agency, and who have adequate experience, and have been 
    adequately trained to provide counseling services to individuals in 
    financial difficulty, including the matters described in 
    subparagraph (E);
        ``(G) demonstrate adequate experience and background in 
    providing credit counseling; and
        ``(H) have adequate financial resources to provide continuing 
    support services for budgeting plans over the life of any repayment 
    plan.
    ``(d) The United States trustee (or the bankruptcy administrator, 
if any) shall only approve an instructional course concerning personal 
financial management--
        ``(1) for an initial probationary period under subsection 
    (b)(3) if the course will provide at a minimum--
            ``(A) trained personnel with adequate experience and 
        training in providing effective instruction and services;
            ``(B) learning materials and teaching methodologies 
        designed to assist debtors in understanding personal financial 
        management and that are consistent with stated objectives 
        directly related to the goals of such instructional course;
            ``(C) adequate facilities situated in reasonably convenient 
        locations at which such instructional course is offered, except 
        that such facilities may include the provision of such 
        instructional course by telephone or through the Internet, if 
        such instructional course is effective;
            ``(D) the preparation and retention of reasonable records 
        (which shall include the debtor's bankruptcy case number) to 
        permit evaluation of the effectiveness of such instructional 
        course, including any evaluation of satisfaction of 
        instructional course requirements for each debtor attending 
        such instructional course, which shall be available for 
        inspection and evaluation by the Executive Office for United 
        States Trustees, the United States trustee (or the bankruptcy 
        administrator, if any), or the chief bankruptcy judge for the 
        district in which such instructional course is offered; and
        ``(E) if a fee is charged for the instructional course, charge 
    a reasonable fee, and provide services without regard to ability to 
    pay the fee.
        ``(2) for any 1-year period if the provider thereof has 
    demonstrated that the course meets the standards of paragraph (1) 
    and, in addition--
            ``(A) has been effective in assisting a substantial number 
        of debtors to understand personal financial management; and
            ``(B) is otherwise likely to increase substantially the 
        debtor's understanding of personal financial management.
    ``(e) The district court may, at any time, investigate the 
qualifications of a nonprofit budget and credit counseling agency 
referred to in subsection (a), and request production of documents to 
ensure the integrity and effectiveness of such agency. The district 
court may, at any time, remove from the approved list under subsection 
(a) a nonprofit budget and credit counseling agency upon finding such 
agency does not meet the qualifications of subsection (b).
    ``(f) The United States trustee (or the bankruptcy administrator, 
if any) shall notify the clerk that a nonprofit budget and credit 
counseling agency or an instructional course is no longer approved, in 
which case the clerk shall remove it from the list maintained under 
subsection (a).
    ``(g)(1) No nonprofit budget and credit counseling agency may 
provide to a credit reporting agency information concerning whether a 
debtor has received or sought instruction concerning personal financial 
management from such agency.
    ``(2) A nonprofit budget and credit counseling agency that 
willfully or negligently fails to comply with any requirement under 
this title with respect to a debtor shall be liable for damages in an 
amount equal to the sum of--
        ``(A) any actual damages sustained by the debtor as a result of 
    the violation; and
        ``(B) any court costs or reasonable attorneys' fees (as 
    determined by the court) incurred in an action to recover those 
    damages.''.
        (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. Nonprofit budget and credit counseling agencies; 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 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.
    ``(j) On request of a party in interest, the court shall issue an 
order under subsection (c) confirming that the automatic stay has been 
terminated.''.

SEC. 107. SCHEDULES OF REASONABLE AND NECESSARY EXPENSES.

    For purposes of section 707(b) of title 11, United States Code, as 
amended by this Act, the Director of the Executive Office for United 
States Trustees shall, not later than 180 days after the date of 
enactment of this Act, issue schedules of reasonable and necessary 
administrative expenses of administering a chapter 13 plan for each 
judicial district of the United States.

                 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 
an unsecured consumer debt 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 on behalf of the debtor by an approved nonprofit budget 
    and credit counseling agency described in section 111;
        ``(B) the offer of the debtor under subparagraph (A)--
            ``(i) was made at least 60 days before the date of 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 
    prior to expiration of 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 schedule between the debtor 
and any creditor of the debtor created by an approved nonprofit budget 
and 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, unless the order confirming 
the plan is revoked, the plan is in default, or the creditor has not 
received payments required to be made under the plan 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) if the act of the creditor to collect and failure to 
credit payments in the manner required by the plan caused material 
injury to the debtor.
    ``(j) Subsection (a)(2) does not operate as an injunction against 
an act by a creditor that is the holder of a secured claim, if--
        ``(1) such creditor retains a security interest in real 
    property that is the principal residence of the debtor;
        ``(2) such act is in the ordinary course of business between 
    the creditor and the debtor; and
        ``(3) such act is limited to seeking or obtaining periodic 
    payments associated with a valid security interest in lieu of 
    pursuit of in rem relief to enforce the lien.''.

SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION AGREEMENT PRACTICES.

    (a) In General.--Section 524 of title 11, United States Code, as 
amended section 202, is amended--
        (1) in subsection (c), by striking paragraph (2) and inserting 
    the following:
        ``(2) the debtor received the disclosures described in 
    subsection (k) at or before the time at which the debtor signed the 
    agreement;''; and
        (2) by adding at the end the following:
    ``(k)(1) The disclosures required under subsection (c)(2) shall 
consist of the disclosure statement described in paragraph (3), 
completed as required in that paragraph, together with the agreement 
specified in subsection (c), statement, declaration, motion and order 
described, respectively, in paragraphs (4) through (8), and shall be 
the only disclosures required in connection with entering into such 
agreement.
    ``(2) Disclosures made under paragraph (1) shall be made clearly 
and conspicuously and in writing. The terms `Amount Reaffirmed' and 
`Annual Percentage Rate' shall be disclosed more conspicuously than 
other terms, data or information provided in connection with this 
disclosure, except that the phrases `Before agreeing to reaffirm a 
debt, review these important disclosures' and `Summary of Reaffirmation 
Agreement' may be equally conspicuous. Disclosures may be made in a 
different order and may use terminology different from that set forth 
in paragraphs (2) through (8), except that the terms `Amount 
Reaffirmed' and `Annual Percentage Rate' must be used where indicated.
    ``(3) The disclosure statement required under this paragraph shall 
consist of the following:
        ``(A) The statement: `Part A: Before agreeing to reaffirm a 
    debt, review these important disclosures:';
        ``(B) Under the heading `Summary of Reaffirmation Agreement', 
    the statement: `This Summary is made pursuant to the requirements 
    of the Bankruptcy Code';
        ``(C) The `Amount Reaffirmed', using that term, which shall 
    be--
            ``(i) the total amount of debt that the debtor agrees to 
        reaffirm by entering into an agreement of the kind specified in 
        subsection (c), and
            ``(ii) the total of any fees and costs accrued as of the 
        date of the disclosure statement, related to such total amount.
        ``(D) In conjunction with the disclosure of the `Amount 
    Reaffirmed', the statements--
            ``(i) `The amount of debt you have agreed to reaffirm'; and
            ``(ii) `Your credit agreement may obligate you to pay 
        additional amounts which may come due after the date of this 
        disclosure. Consult your credit agreement.'.
        ``(E) The `Annual Percentage Rate', using that term, which 
    shall be disclosed as--
            ``(i) if, at the time the petition is filed, the debt is an 
        extension of credit under an open end credit plan, as the terms 
        `credit' and `open end credit plan' are defined in section 103 
        of the Truth in Lending Act, then--
                ``(I) the annual percentage rate determined under 
            paragraphs (5) and (6) of section 127(b) of the Truth in 
            Lending Act, as applicable, as disclosed to the debtor in 
            the most recent periodic statement prior to entering into 
            an agreement of the kind specified in subsection (c) or, if 
            no such periodic statement has been given to the debtor 
            during the prior 6 months, the annual percentage rate as it 
            would have been so disclosed at the time the disclosure 
            statement is given to the debtor, or to the extent this 
            annual percentage rate is not readily available or not 
            applicable, then
                ``(II) the simple interest rate applicable to the 
            amount reaffirmed as of the date the disclosure statement 
            is given to the debtor, or if different simple interest 
            rates apply to different balances, the simple interest rate 
            applicable to each such balance, identifying the amount of 
            each such balance included in the amount reaffirmed, or
                ``(III) if the entity making the disclosure elects, to 
            disclose the annual percentage rate under subclause (I) and 
            the simple interest rate under subclause (II); or
            ``(ii) if, at the time the petition is filed, the debt is 
        an extension of credit other than under an open end credit 
        plan, as the terms `credit' and `open end credit plan' are 
        defined in section 103 of the Truth in Lending Act, then--
                ``(I) the annual percentage rate under section 
            128(a)(4) of the Truth in Lending Act, as disclosed to the 
            debtor in the most recent disclosure statement given to the 
            debtor prior to the entering into an agreement of the kind 
            specified in subsection (c) with respect to the debt, or, 
            if no such disclosure statement was given to the debtor, 
            the annual percentage rate as it would have been so 
            disclosed at the time the disclosure statement is given to 
            the debtor, or to the extent this annual percentage rate is 
            not readily available or not applicable, then
                ``(II) the simple interest rate applicable to the 
            amount reaffirmed as of the date the disclosure statement 
            is given to the debtor, or if different simple interest 
            rates apply to different balances, the simple interest rate 
            applicable to each such balance, identifying the amount of 
            such balance included in the amount reaffirmed, or
                ``(III) if the entity making the disclosure elects, to 
            disclose the annual percentage rate under (I) and the 
            simple interest rate under (II).
        ``(F) If the underlying debt transaction was disclosed as a 
    variable rate transaction on the most recent disclosure given under 
    the Truth in Lending Act, by stating `The interest rate on your 
    loan may be a variable interest rate which changes from time to 
    time, so that the annual percentage rate disclosed here may be 
    higher or lower.'.
        ``(G) If the debt is secured by a security interest which has 
    not been waived in whole or in part or determined to be void by a 
    final order of the court at the time of the disclosure, by 
    disclosing that a security interest or lien in goods or property is 
    asserted over some or all of the debts the debtor is reaffirming 
    and listing the items and their original purchase price that are 
    subject to the asserted security interest, or if not a purchase-
    money security interest then listing by items or types and the 
    original amount of the loan.
        ``(H) At the election of the creditor, a statement of the 
    repayment schedule using 1 or a combination of the following--
            ``(i) by making the statement: `Your first payment in the 
        amount of $___ is due on ___ but the future payment amount may 
        be different. Consult your reaffirmation agreement or credit 
        agreement, as applicable.', and stating the amount of the first 
        payment and the due date of that payment in the places 
        provided;
            ``(ii) by making the statement: `Your payment schedule will 
        be:', and describing the repayment schedule with the number, 
        amount, and due dates or period of payments scheduled to repay 
        the debts reaffirmed to the extent then known by the disclosing 
        party; or
            ``(iii) by describing the debtor's repayment obligations 
        with reasonable specificity to the extent then known by the 
        disclosing party.
        ``(I) The following statement: `Note: When this disclosure 
    refers to what a creditor ``may'' do, it does not use the word 
    ``may'' to give the creditor specific permission. The word ``may'' 
    is used to tell you what might occur if the law permits the 
    creditor to take the action. If you have questions about your 
    reaffirming a debt or what the law requires, consult with the 
    attorney who helped you negotiate this agreement reaffirming a 
    debt. If you don't have an attorney helping you, the judge will 
    explain the effect of your reaffirming a debt when the hearing on 
    the reaffirmation agreement is held.'.
        ``(J)(i) The following additional statements:
    ```Reaffirming a debt is a serious financial decision. The law 
requires you to take certain steps to make sure the decision is in your 
best interest. If these steps are not completed, the reaffirmation 
agreement is not effective, even though you have signed it.
        ```1. Read the disclosures in this Part A carefully. Consider 
    the decision to reaffirm carefully. Then, if you want to reaffirm, 
    sign the reaffirmation agreement in Part B (or you may use a 
    separate agreement you and your creditor agree on).
        ```2. Complete and sign Part D and be sure you can afford to 
    make the payments you are agreeing to make and have received a copy 
    of the disclosure statement and a completed and signed 
    reaffirmation agreement.
        ```3. If you were represented by an attorney during the 
    negotiation of your reaffirmation agreement, the attorney must have 
    signed the certification in Part C.
        ```4. If you were not represented by an attorney during the 
    negotiation of your reaffirmation agreement, you must have 
    completed and signed Part E.
        ```5. The original of this disclosure must be filed with the 
    court by you or your creditor. If a separate reaffirmation 
    agreement (other than the one in Part B) has been signed, it must 
    be attached.
        ```6. If you were represented by an attorney during the 
    negotiation of your reaffirmation agreement, your reaffirmation 
    agreement becomes effective upon filing with the court unless the 
    reaffirmation is presumed to be an undue hardship as explained in 
    Part D.
        ```7. If you were not represented by an attorney during the 
    negotiation of your reaffirmation agreement, it will not be 
    effective unless the court approves it. The court will notify you 
    of the hearing on your reaffirmation agreement. You must attend 
    this hearing in bankruptcy court where the judge will review your 
    reaffirmation agreement. The bankruptcy court must approve your 
    reaffirmation agreement as consistent with your best interests, 
    except that no court approval is required if your reaffirmation 
    agreement is for a consumer debt secured by a mortgage, deed of 
    trust, security deed, or other lien on your real property, like 
    your home.
    ```Your right to rescind (cancel) your reaffirmation agreement. You 
may rescind (cancel) your reaffirmation agreement at any time before 
the bankruptcy court enters a discharge order, or before the expiration 
of the 60-day period that begins on the date your reaffirmation 
agreement is filed with the court, whichever occurs later. To rescind 
(cancel) your reaffirmation agreement, you must notify the creditor 
that your reaffirmation agreement is rescinded (or canceled).
    ```What are your obligations if you reaffirm the debt? A reaffirmed 
debt remains your personal legal obligation. It is not discharged in 
your bankruptcy case. That means that if you default on your reaffirmed 
debt after your bankruptcy case is over, your creditor may be able to 
take your property or your wages. Otherwise, your obligations will be 
determined by the reaffirmation agreement which may have changed the 
terms of the original agreement. For example, if you are reaffirming an 
open end credit agreement, the creditor may be permitted by that 
agreement or applicable law to change the terms of that agreement in 
the future under certain conditions.
    ```Are you required to enter into a reaffirmation agreement by any 
law? No, you are not required to reaffirm a debt by any law. Only agree 
to reaffirm a debt if it is in your best interest. Be sure you can 
afford the payments you agree to make.
    ```What if your creditor has a security interest or lien? Your 
bankruptcy discharge does not eliminate any lien on your property. A 
``lien'' is often referred to as a security interest, deed of trust, 
mortgage or security deed. Even if you do not reaffirm and your 
personal liability on the debt is discharged, because of the lien your 
creditor may still have the right to take the security property if you 
do not pay the debt or default on it. If the lien is on an item of 
personal property that is exempt under your State's law or that the 
trustee has abandoned, you may be able to redeem the item rather than 
reaffirm the debt. To redeem, you make a single payment to the creditor 
equal to the current value of the security property, as agreed by the 
parties or determined by the court.'.
        ``(ii) In the case of a reaffirmation under subsection (m)(2), 
    numbered paragraph 6 in the disclosures required by clause (i) of 
    this subparagraph shall read as follows:
        ```6. If you were represented by an attorney during the 
    negotiation of your reaffirmation agreement, your reaffirmation 
    agreement becomes effective upon filing with the court.'.
    ``(4) The form of such agreement required under this paragraph 
shall consist of the following:
    ```Part B: Reaffirmation Agreement. I (we) agree to reaffirm the 
debts arising under the credit agreement described below.
    ```Brief description of credit agreement:
    ```Description of any changes to the credit agreement made as part 
of this reaffirmation agreement:
    ```Signature:                    Date:
    ```Borrower:
    ```Co-borrower, if also reaffirming these debts:
    ```Accepted by creditor:
    ```Date of creditor acceptance:'.
    ``(5) The declaration shall consist of the following:
        ``(A) The following certification:
    ```Part C: Certification by Debtor's Attorney (If Any).
    ```I hereby certify that (1) this agreement represents a fully 
informed and voluntary agreement by the debtor; (2) this agreement does 
not impose an undue hardship on the debtor or any dependent of the 
debtor; and (3) I have fully advised the debtor of the legal effect and 
consequences of this agreement and any default under this agreement.
    ```Signature of Debtor's Attorney:      Date:'.
        ``(B) If a presumption of undue hardship has been established 
    with respect to such agreement, such certification shall state that 
    in the opinion of the attorney, the debtor is able to make the 
    payment.
    ``(C) In the case of a reaffirmation agreement under subsection 
(m)(2), subparagraph (B) is not applicable.
    ``(6)(A) The statement in support of such agreement, which the 
debtor shall sign and date prior to filing with the court, shall 
consist of the following:
    ```Part D: Debtor's Statement in Support of Reaffirmation 
Agreement.
    ```1. I believe this reaffirmation agreement will not impose an 
undue hardship on my dependents or me. I can afford to make the 
payments on the reaffirmed debt because my monthly income (take home 
pay plus any other income received) is $___, and my actual current 
monthly expenses including monthly payments on post-bankruptcy debt and 
other reaffirmation agreements total $___, leaving $___ to make the 
required payments on this reaffirmed debt. I understand that if my 
income less my monthly expenses does not leave enough to make the 
payments, this reaffirmation agreement is presumed to be an undue 
hardship on me and must be reviewed by the court. However, this 
presumption may be overcome if I explain to the satisfaction of the 
court how I can afford to make the payments here: ___.
    ```2. I received a copy of the Reaffirmation Disclosure Statement 
in Part A and a completed and signed reaffirmation agreement.'.
    ``(B) Where the debtor is represented by an attorney and is 
reaffirming a debt owed to a creditor defined in section 
19(b)(1)(A)(iv) of the Federal Reserve Act, the statement of support of 
the reaffirmation agreement, which the debtor shall sign and date prior 
to filing with the court, shall consist of the following:
    ```I believe this reaffirmation agreement is in my financial 
interest. I can afford to make the payments on the reaffirmed debt. I 
received a copy of the Reaffirmation Disclosure Statement in Part A and 
a completed and signed reaffirmation agreement.'.
    ``(7) The motion that may be used if approval of such agreement by 
the court is required in order for it to be effective, shall be signed 
and dated by the movant and shall consist of the following:
    ```Part E: Motion for Court Approval (To be completed only if the 
debtor is not represented by an attorney.). I (we), the debtor(s), 
affirm the following to be true and correct:
    ```I am not represented by an attorney in connection with this 
reaffirmation agreement.
    ```I believe this reaffirmation agreement is in my best interest 
based on the income and expenses I have disclosed in my Statement in 
Support of this reaffirmation agreement, and because (provide any 
additional relevant reasons the court should consider):
    ```Therefore, I ask the court for an order approving this 
reaffirmation agreement.'.
    ``(8) The court order, which may be used to approve such agreement, 
shall consist of the following:
    ```Court Order: The court grants the debtor's motion and approves 
the reaffirmation agreement described above.'.
    ``(l) Notwithstanding any other provision of this title the 
following shall apply:
        ``(1) A creditor may accept payments from a debtor before and 
    after the filing of an agreement of the kind specified in 
    subsection (c) with the court.
        ``(2) A creditor may accept payments from a debtor under such 
    agreement that the creditor believes in good faith to be effective.
        ``(3) The requirements of subsections (c)(2) and (k) shall be 
    satisfied if disclosures required under those subsections are given 
    in good faith.
    ``(m)(1) Until 60 days after an agreement of the kind specified in 
subsection (c) is filed with the court (or such additional period as 
the court, after notice and a hearing and for cause, orders before the 
expiration of such period), it shall be presumed that such agreement is 
an undue hardship on the debtor if the debtor's monthly income less the 
debtor's monthly expenses as shown on the debtor's completed and signed 
statement in support of such agreement required under subsection 
(k)(6)(A) is less than the scheduled payments on the reaffirmed debt. 
This presumption shall be reviewed by the court. The presumption may be 
rebutted in writing by the debtor if the statement includes an 
explanation that identifies additional sources of funds to make the 
payments as agreed upon under the terms of such agreement. If the 
presumption is not rebutted to the satisfaction of the court, the court 
may disapprove such agreement. No agreement shall be disapproved 
without notice and a hearing to the debtor and creditor, and such 
hearing shall be concluded before the entry of the debtor's discharge.
    ``(2) This subsection does not apply to reaffirmation agreements 
where the creditor is a credit union, as defined in section 
19(b)(1)(A)(iv) of the Federal Reserve Act.''.
    (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 and materially fraudulent statements 
            in bankruptcy schedules

    ``(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. In addition to addressing the violations referred to in the 
preceding sentence, the individuals described under subsection (b) 
shall address violations of section 152 or 157 relating to materially 
fraudulent statements in bankruptcy schedules that are intentionally 
false or intentionally misleading.
    ``(b) United States Attorneys and Agents of the Federal Bureau of 
Investigation.--The individuals referred to in subsection (a) are--
        ``(1) the United States attorney for each judicial district of 
    the United States; and
        ``(2) an agent of the Federal Bureau of Investigation for each 
    field office of the Federal Bureau of Investigation.
    ``(c) Bankruptcy Investigations.--Each United States attorney 
designated under this section shall, in addition to any other 
responsibilities, have primary responsibility for carrying out the 
duties of a United States attorney under section 3057.
    ``(d) Bankruptcy Procedures.--The bankruptcy courts shall establish 
procedures for referring any case that may contain a materially 
fraudulent statement in a bankruptcy schedule to the individuals 
designated under this section.''.
        (2) Clerical amendment.--The table of sections 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 and materially fraudulent statements in bankruptcy 
          schedules.''.

SEC. 204. PRESERVATION OF CLAIMS AND DEFENSES UPON SALE OF PREDATORY 
              LOANS.

    Section 363 of title 11, United States Code, is amended--
        (1) by redesignating subsection (o) as subsection (p), and
        (2) by inserting after subsection (n) the following:
    ``(o) Notwithstanding subsection (f), if a person purchases any 
interest in a consumer credit transaction that is subject to the Truth 
in Lending Act or any interest in a consumer credit contract (as 
defined in section 433.1 of title 16 of the Code of Federal Regulations 
(January 1, 2004), as amended from time to time), and if such interest 
is purchased through a sale under this section, then such person shall 
remain subject to all claims and defenses that are related to such 
consumer credit transaction or such consumer credit contract, to the 
same extent as such person would be subject to such claims and defenses 
of the consumer had such interest been purchased at a sale not under 
this section.''.

SEC. 205. GAO STUDY AND REPORT ON REAFFIRMATION AGREEMENT PROCESS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the reaffirmation agreement process that occurs 
under title 11 of the United States Code, to determine the overall 
treatment of consumers within the context of such process, and shall 
include in such study consideration of--
        (1) the policies and activities of creditors with respect to 
    reaffirmation agreements; and
        (2) whether consumers are fully, fairly, and consistently 
    informed of their rights pursuant to such title.
    (b) Report to the Congress.--Not later than 18 months after the 
date of the enactment of this Act, the Comptroller General shall submit 
to the President pro tempore of the Senate and the Speaker of the House 
of Representatives a report on the results of the study conducted under 
subsection (a), together with recommendations for legislation (if any) 
to address any abusive or coercive tactics found in connection with the 
reaffirmation agreement process that occurs under title 11 of the 
United States Code.

                   Subtitle B--Priority Child Support

SEC. 211. 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, on, or after the date of the order for relief in a case 
    under this title, including interest that accrues on that debt as 
    provided under applicable nonbankruptcy law notwithstanding any 
    other provision of this title, that is--
            ``(A) owed to or recoverable by--
                ``(i) a spouse, former spouse, or child of the debtor 
            or such child's parent, legal guardian, or responsible 
            relative; 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 of the debtor or such child's 
        parent, without regard to whether such debt is expressly so 
        designated;
            ``(C) established or subject to establishment before, on, 
        or after the date of the order for relief in a case 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 of the debtor, or such child's parent, legal 
        guardian, or responsible relative for the purpose of collecting 
        the debt;''.

SEC. 212. 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 so redesignated, by striking ``First'' 
    and inserting ``Second'';
        (4) in paragraph (3), as so redesignated, by striking 
    ``Second'' and inserting ``Third'';
        (5) in paragraph (4), as so redesignated--
            (A) by striking ``Third'' and inserting ``Fourth''; and
            (B) by striking the semicolon at the end and inserting a 
        period;
        (6) in paragraph (5), as so redesignated, by striking 
    ``Fourth'' and inserting ``Fifth'';
        (7) in paragraph (6), as so redesignated, by striking ``Fifth'' 
    and inserting ``Sixth'';
        (8) in paragraph (7), as so redesignated, by striking ``Sixth'' 
    and inserting ``Seventh''; and
        (9) by inserting before paragraph (2), as so redesignated, the 
    following:
        ``(1) First:
            ``(A) Allowed unsecured claims for domestic support 
        obligations that, as of the date of the filing of the petition 
        in a case under this title, are owed to or recoverable by a 
        spouse, former spouse, or child of the debtor, or such child's 
        parent, legal guardian, or responsible relative, without regard 
        to whether the claim is filed by such person or is filed by a 
        governmental unit on behalf of such person, on the condition 
        that funds received under this paragraph by a governmental unit 
        under this title after the date of the filing of the petition 
        shall be applied and distributed in accordance with applicable 
        nonbankruptcy law.
            ``(B) Subject to claims under subparagraph (A), allowed 
        unsecured claims for domestic support obligations that, as of 
        the date of the filing of the petition, are assigned by a 
        spouse, former spouse, child of the debtor, or such child's 
        parent, legal guardian, or responsible relative to a 
        governmental unit (unless such obligation is assigned 
        voluntarily by the spouse, former spouse, child, parent, legal 
        guardian, or responsible relative of the child for the purpose 
        of collecting the debt) or are owed directly to or recoverable 
        by a governmental unit under applicable nonbankruptcy law, on 
        the condition that funds received under this paragraph by a 
        governmental unit under this title after the date of the filing 
        of the petition be applied and distributed in accordance with 
        applicable nonbankruptcy law.
            ``(C) If a trustee is appointed or elected under section 
        701, 702, 703, 1104, 1202, or 1302, the administrative expenses 
        of the trustee allowed under paragraphs (1)(A), (2), and (6) of 
        section 503(b) shall be paid before payment of claims under 
        subparagraphs (A) and (B), to the extent that the trustee 
        administers assets that are otherwise available for the payment 
        of such claims.''.

SEC. 213. 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 by statute, to pay a domestic support 
    obligation, the debtor has paid all amounts payable under such 
    order or such statute for such obligation that first become payable 
    after the date of the filing of the petition.'';
        (2) in section 1208(c)--
            (A) in paragraph (8), by striking ``or'' at the end;
            (B) in paragraph (9), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(10) failure of the debtor to pay any domestic support 
    obligation that first becomes payable after the date of the filing 
    of the petition.'';
        (3) in section 1222(a)--
            (A) in paragraph (2), by striking ``and'' at the end;
            (B) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(4) notwithstanding any other provision of this section, a 
    plan may provide for less than full payment of all amounts owed for 
    a claim entitled to priority under section 507(a)(1)(B) only if the 
    plan provides that all of the debtor's projected disposable income 
    for a 5-year period beginning on the date that the first payment is 
    due under the plan will be applied to make payments under the 
    plan.'';
        (4) in section 1222(b)--
            (A) in paragraph (10), by striking ``and'' at the end;
            (B) by redesignating paragraph (11) as paragraph (12); and
            (C) by inserting after paragraph (10) the following:
        ``(11) provide for the payment of interest accruing after the 
    date of the filing of the petition on unsecured claims that are 
    nondischargeable under section 1228(a), except that such interest 
    may be paid only to the extent that the debtor has disposable 
    income available to pay such interest after making provision for 
    full payment of all allowed claims; and'';
        (5) in section 1225(a)--
            (A) in paragraph (5), by striking ``and'' at the end;
            (B) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(7) the debtor has paid all amounts that are required to be 
    paid under a domestic support obligation and that first become 
    payable after the date of the filing of the petition if the debtor 
    is required by a judicial or administrative order, or by statute, 
    to pay such domestic support obligation.'';
        (6) in section 1228(a), in the matter preceding paragraph (1), 
    by inserting ``, and in the case of a debtor who is required by a 
    judicial or administrative order, or by statute, to pay a domestic 
    support obligation, after such debtor certifies that all amounts 
    payable under such order or such statute that are due on or before 
    the date of the certification (including amounts due before the 
    petition was filed, but only to the extent provided for by the 
    plan) have been paid'' after ``completion by the debtor of all 
    payments under the plan'';
        (7) in section 1307(c)--
            (A) in paragraph (9), by striking ``or'' at the end;
            (B) in paragraph (10), by striking the period at the end 
        and inserting ``; or''; and
            (C) by adding at the end the following:
        ``(11) failure of the debtor to pay any domestic support 
    obligation that first becomes payable after the date of the filing 
    of the petition.'';
        (8) in section 1322(a)--
            (A) in paragraph (2), by striking ``and'' at the end;
            (B) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(4) notwithstanding any other provision of this section, a 
    plan may provide for less than full payment of all amounts owed for 
    a claim entitled to priority under section 507(a)(1)(B) only if the 
    plan provides that all of the debtor's projected disposable income 
    for a 5-year period beginning on the date that the first payment is 
    due under the plan will be applied to make payments under the 
    plan.'';
        (9) in section 1322(b)--
            (A) in paragraph (9), by striking ``; and'' and inserting a 
        semicolon;
            (B) by redesignating paragraph (10) as paragraph (11); and
            (C) inserting after paragraph (9) the following:
        ``(10) provide for the payment of interest accruing after the 
    date of the filing of the petition on unsecured claims that are 
    nondischargeable under section 1328(a), except that such interest 
    may be paid only to the extent that the debtor has disposable 
    income available to pay such interest after making provision for 
    full payment of all allowed claims; and'';
        (10) in section 1325(a), as amended by section 102, by 
    inserting after paragraph (7) the following:
        ``(8) the debtor has paid all amounts that are required to be 
    paid under a domestic support obligation and that first become 
    payable after the date of the filing of the petition if the debtor 
    is required by a judicial or administrative order, or by statute, 
    to pay such domestic support obligation; and'';
        (11) in section 1328(a), in the matter preceding paragraph (1), 
    by inserting ``, and in the case of a debtor who is required by a 
    judicial or administrative order, or by statute, to pay a domestic 
    support obligation, after such debtor certifies that all amounts 
    payable under such order or such statute that are due on or before 
    the date of the certification (including amounts due before the 
    petition was filed, but only to the extent provided for by the 
    plan) have been paid'' after ``completion by the debtor of all 
    payments under the plan''.

SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
              PROCEEDINGS.

    Section 362(b) of title 11, United States Code, is amended by 
striking paragraph (2) and inserting the following:
        ``(2) under subsection (a)--
            ``(A) of the commencement or continuation of a civil action 
        or proceeding--
                ``(i) for the establishment of paternity;
                ``(ii) for the establishment or modification of an 
            order for domestic support obligations;
                ``(iii) concerning child custody or visitation;
                ``(iv) for the dissolution of a marriage, except to the 
            extent that such proceeding seeks to determine the division 
            of property that is property of the estate; or
                ``(v) regarding domestic violence;
            ``(B) of the collection of a domestic support obligation 
        from property that is not property of the estate;
            ``(C) with respect to the withholding of income that is 
        property of the estate or property of the debtor for payment of 
        a domestic support obligation under a judicial or 
        administrative order or a statute;
            ``(D) of the withholding, suspension, or restriction of a 
        driver's license, a professional or occupational license, or a 
        recreational license, under State law, as specified in section 
        466(a)(16) of the Social Security Act;
            ``(E) of the reporting of overdue support owed by a parent 
        to any consumer reporting agency as specified in section 
        466(a)(7) of the Social Security Act;
            ``(F) of the interception of a tax refund, as specified in 
        sections 464 and 466(a)(3) of the Social Security Act or under 
        an analogous State law; or
            ``(G) of the enforcement of a medical obligation, as 
        specified under title IV of the Social Security Act;''.

SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
              MAINTENANCE, AND SUPPORT.

    Section 523 of title 11, United States Code, is amended--
        (1) in subsection (a)--
            (A) by striking paragraph (5) and inserting the following:
        ``(5) for a domestic support obligation;''; and
            (B) by striking paragraph (18);
        (2) in subsection (c), by striking ``(6), or (15)'' each place 
    it appears and inserting ``or (6)''; and
        (3) in paragraph (15), as added by Public Law 103-394 (108 
    Stat. 4133)--
            (A) by inserting ``to a spouse, former spouse, or child of 
        the debtor and'' before ``not of the kind'';
            (B) by inserting ``or'' after ``court of record,''; and
            (C) by striking ``unless--'' and all that follows through 
        the end of the paragraph and inserting a semicolon.

SEC. 216. 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));'';
        (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''; and
        (3) in subsection (g)(2), by striking ``subsection (f)(2)'' and 
    inserting ``subsection (f)(1)(B)''.

SEC. 217. 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;''.

SEC. 218. DISPOSABLE INCOME DEFINED.

    Section 1225(b)(2)(A) of title 11, United States Code, is amended 
by inserting ``or for a domestic support obligation that first becomes 
payable after the date of the filing of the petition'' after 
``dependent of the debtor''.

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, 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 
        a semicolon; and
            (C) by adding at the end the following:
        ``(10) if with respect to the debtor there is a claim for a 
    domestic support obligation, provide the applicable notice 
    specified in subsection (c); and''; and
        (2) by adding at the end the following:
    ``(c)(1) In a case described in subsection (a)(10) to which 
subsection (a)(10) applies, the trustee shall--
        ``(A)(i) provide written notice to the holder of the claim 
    described in subsection (a)(10) of such claim and of the right of 
    such holder to use the services of the State child support 
    enforcement agency established under sections 464 and 466 of the 
    Social Security Act for the State in which such holder resides, for 
    assistance in collecting child support during and after the case 
    under this title;
        ``(ii) include in the notice provided under clause (i) the 
    address and telephone number of such State child support 
    enforcement agency; and
        ``(iii) include in the notice provided under clause (i) an 
    explanation of the rights of such holder to payment of such claim 
    under this chapter;
        ``(B)(i) provide written notice to such State child support 
    enforcement agency of such claim; and
        ``(ii) include in the notice provided under clause (i) the 
    name, address, and telephone number of such holder; and
        ``(C) at such time as the debtor is granted a discharge under 
    section 727, provide written notice to such holder and to such 
    State child support enforcement agency of--
            ``(i) the granting of the discharge;
            ``(ii) the last recent known address of the debtor;
            ``(iii) the last recent known name and address of the 
        debtor's employer; and
            ``(iv) the name of each creditor that holds a claim that--
                ``(I) is not discharged under paragraph (2), (4), or 
            (14A) of section 523(a); or
                ``(II) was reaffirmed by the debtor under section 
            524(c).
    ``(2)(A) The holder of a claim described in subsection (a)(10) or 
the State child support enforcement agency of the State in which such 
holder resides may request from a creditor described in paragraph 
(1)(C)(iv) 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 by 
reason of making such disclosure.''.
    (b) Duties of Trustee Under Chapter 11.--Section 1106 of title 11, 
United States Code, is amended--
        (1) in subsection (a)--
            (A) in paragraph (6), by striking ``and'' at the end;
            (B) in paragraph (7), by striking the period and inserting 
        ``; and''; and
            (C) by adding at the end the following:
        ``(8) if with respect to the debtor there is a claim for a 
    domestic support obligation, provide the applicable notice 
    specified in subsection (c).''; and
        (2) by adding at the end the following:
    ``(c)(1) In a case described in subsection (a)(8) to which 
subsection (a)(8) applies, the trustee shall--
        ``(A)(i) provide written notice to the holder of the claim 
    described in subsection (a)(8) of such claim and of the right of 
    such holder to use the services of the State child support 
    enforcement agency established under sections 464 and 466 of the 
    Social Security Act for the State in which such holder resides, for 
    assistance in collecting child support during and after the case 
    under this title; and
        ``(ii) include in the notice required by clause (i) the address 
    and telephone number of such State child support enforcement 
    agency;
        ``(B)(i) provide written notice to such State child support 
    enforcement agency of such claim; and
        ``(ii) include in the notice required by clause (i) the name, 
    address, and telephone number of such holder; and
        ``(C) at such time as the debtor is granted a discharge under 
    section 1141, provide written notice to such holder and to such 
    State child support enforcement agency of--
            ``(i) the granting of the discharge;
            ``(ii) the last recent known address of the debtor;
            ``(iii) the last recent known name and address of the 
        debtor's employer; and
            ``(iv) the name of each creditor that holds a claim that--
                ``(I) is not discharged under paragraph (2), (4), or 
            (14A) of section 523(a); or
                ``(II) was reaffirmed by the debtor under section 
            524(c).
    ``(2)(A) The holder of a claim described in subsection (a)(8) or 
the State child enforcement support agency of the State in which such 
holder resides may request from a creditor described in paragraph 
(1)(C)(iv) 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 by 
reason of making such disclosure.''.
    (c) Duties of Trustee Under Chapter 12.--Section 1202 of title 11, 
United States Code, 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 the debtor there is a claim for a 
    domestic support obligation, provide the applicable notice 
    specified in subsection (c).''; and
        (2) by adding at the end the following:
    ``(c)(1) In a case described in subsection (b)(6) to which 
subsection (b)(6) applies, the trustee shall--
        ``(A)(i) provide written notice to the holder of the claim 
    described in subsection (b)(6) of such claim and of the right of 
    such holder to use the services of the State child support 
    enforcement agency established under sections 464 and 466 of the 
    Social Security Act for the State in which such holder resides, for 
    assistance in collecting child support during and after the case 
    under this title; and
        ``(ii) include in the notice provided under clause (i) the 
    address and telephone number of such State child support 
    enforcement agency;
        ``(B)(i) provide written notice to such State child support 
    enforcement agency of such claim; and
        ``(ii) include in the notice provided under clause (i) the 
    name, address, and telephone number of such holder; and
        ``(C) at such time as the debtor is granted a discharge under 
    section 1228, provide written notice to such holder and to such 
    State child support enforcement agency of--
            ``(i) the granting of the discharge;
            ``(ii) the last recent known address of the debtor;
            ``(iii) the last recent known name and address of the 
        debtor's employer; and
            ``(iv) the name of each creditor that holds a claim that--
                ``(I) is not discharged under paragraph (2), (4), or 
            (14A) of section 523(a); or
                ``(II) was reaffirmed by the debtor under section 
            524(c).
    ``(2)(A) The holder of a claim described in subsection (b)(6) or 
the State child support enforcement agency of the State in which such 
holder resides may request from a creditor described in paragraph 
(1)(C)(iv) 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 by 
reason of making that disclosure.''.
    (d) Duties of Trustee Under Chapter 13.--Section 1302 of title 11, 
United States Code, 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 the debtor there is a claim for a 
    domestic support obligation, provide the applicable notice 
    specified in subsection (d).''; and
        (2) by adding at the end the following:
    ``(d)(1) In a case described in subsection (b)(6) to which 
subsection (b)(6) applies, the trustee shall--
        ``(A)(i) provide written notice to the holder of the claim 
    described in subsection (b)(6) of such claim and of the right of 
    such holder to use the services of the State child support 
    enforcement agency established under sections 464 and 466 of the 
    Social Security Act for the State in which such holder resides, for 
    assistance in collecting child support during and after the case 
    under this title; and
        ``(ii) include in the notice provided under clause (i) the 
    address and telephone number of such State child support 
    enforcement agency;
        ``(B)(i) provide written notice to such State child support 
    enforcement agency of such claim; and
        ``(ii) include in the notice provided under clause (i) the 
    name, address, and telephone number of such holder; and
        ``(C) at such time as the debtor is granted a discharge under 
    section 1328, provide written notice to such holder and to such 
    State child support enforcement agency of--
            ``(i) the granting of the discharge;
            ``(ii) the last recent known address of the debtor;
            ``(iii) the last recent known name and address of the 
        debtor's employer; and
            ``(iv) the name of each creditor that holds a claim that--
                ``(I) is not discharged under paragraph (2) or (4) of 
            section 523(a); or
                ``(II) was reaffirmed by the debtor under section 
            524(c).
    ``(2)(A) The holder of a claim described in subsection (b)(6) or 
the State child support enforcement agency of the State in which such 
holder resides may request from a creditor described in paragraph 
(1)(C)(iv) 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 by 
reason of making that disclosure.''.

SEC. 220. NONDISCHARGEABILITY OF CERTAIN EDUCATIONAL BENEFITS AND 
              LOANS.

    Section 523(a) of title 11, United States Code, is amended by 
striking paragraph (8) and inserting the following:
        ``(8) unless excepting such debt from discharge under this 
    paragraph would impose an undue hardship on the debtor and the 
    debtor's dependents, for--
            ``(A)(i) an educational benefit overpayment or loan made, 
        insured, or guaranteed by a governmental unit, or made under 
        any program funded in whole or in part by a governmental unit 
        or nonprofit institution; or
            ``(ii) an obligation to repay funds received as an 
        educational benefit, scholarship, or stipend; or
            ``(B) any other educational loan that is a qualified 
        education loan, as defined in section 221(d)(1) of the Internal 
        Revenue Code of 1986, incurred by a debtor who is an 
        individual;''.

                 Subtitle C--Other Consumer Protections

SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY FILINGS.

    Section 110 of title 11, United States Code, is amended--
        (1) in subsection (a)(1), by striking ``or an employee of an 
    attorney'' and inserting ``for the debtor or an employee of such 
    attorney under the direct supervision of such attorney'';
        (2) in subsection (b)--
            (A) in paragraph (1), by adding at the end the following: 
        ``If a bankruptcy petition preparer is not an individual, then 
        an officer, principal, responsible person, or partner of the 
        bankruptcy petition preparer shall be required to--
        ``(A) sign the document for filing; and
        ``(B) print on the document the name and address of that 
    officer, principal, responsible person, or partner.''; and
            (B) by striking paragraph (2) and inserting the following:
    ``(2)(A) Before preparing any document for filing or accepting any 
fees from a debtor, the bankruptcy petition preparer shall provide to 
the debtor a written notice which shall be on an official form 
prescribed by the Judicial Conference of the United States in 
accordance with rule 9009 of the Federal Rules of Bankruptcy Procedure.
    ``(B) The notice under subparagraph (A)--
        ``(i) shall inform the debtor in simple language that a 
    bankruptcy petition preparer is not an attorney and may not 
    practice law or give legal advice;
        ``(ii) may contain a description of examples of legal advice 
    that a bankruptcy petition preparer is not authorized to give, in 
    addition to any advice that the preparer may not give by reason of 
    subsection (e)(2); and
        ``(iii) shall--
            ``(I) be signed by the debtor and, under penalty of 
        perjury, by the bankruptcy petition preparer; and
            ``(II) be filed with any document for filing.'';
        (3) in subsection (c)--
            (A) in paragraph (2)--
                (i) by striking ``(2) For purposes'' and inserting 
            ``(2)(A) Subject to subparagraph (B), for purposes''; and
                (ii) by adding at the end the following:
    ``(B) If a bankruptcy petition preparer is not an individual, the 
identifying number of the bankruptcy petition preparer shall be the 
Social Security account number of the officer, principal, responsible 
person, or partner of the bankruptcy petition preparer.''; and
            (B) by striking paragraph (3);
        (4) in subsection (d)--
            (A) by striking ``(d)(1)'' and inserting ``(d)''; and
            (B) by striking paragraph (2);
        (5) in subsection (e)--
            (A) by striking paragraph (2); and
            (B) by adding at the end the following:
    ``(2)(A) A bankruptcy petition preparer may not offer a potential 
bankruptcy debtor any legal advice, including any legal advice 
described in subparagraph (B).
    ``(B) The legal advice referred to in subparagraph (A) includes 
advising the debtor--
        ``(i) whether--
            ``(I) to file a petition under this title; or
            ``(II) commencing a case under chapter 7, 11, 12, or 13 is 
        appropriate;
        ``(ii) whether the debtor's debts will be discharged in a case 
    under this title;
        ``(iii) whether the debtor will be able to retain the debtor's 
    home, car, or other property after commencing a case under this 
    title;
        ``(iv) concerning--
            ``(I) the tax consequences of a case brought under this 
        title; or
            ``(II) the dischargeability of tax claims;
        ``(v) whether the debtor may or should promise to repay debts 
    to a creditor or enter into a reaffirmation agreement with a 
    creditor to reaffirm a debt;
        ``(vi) concerning how to characterize the nature of the 
    debtor's interests in property or the debtor's debts; or
        ``(vii) concerning bankruptcy procedures and rights.'';
        (6) in subsection (f)--
            (A) by striking ``(f)(1)'' and inserting ``(f)''; and
            (B) by striking paragraph (2);
        (7) in subsection (g)--
            (A) by striking ``(g)(1)'' and inserting ``(g)''; and
            (B) by striking paragraph (2);
        (8) in subsection (h)--
            (A) by redesignating paragraphs (1) through (4) as 
        paragraphs (2) through (5), respectively;
            (B) by inserting before paragraph (2), as so redesignated, 
        the following:
    ``(1) The Supreme Court may promulgate rules under section 2075 of 
title 28, or the Judicial Conference of the United States may prescribe 
guidelines, for setting a maximum allowable fee chargeable by a 
bankruptcy petition preparer. A bankruptcy petition preparer shall 
notify the debtor of any such maximum amount before preparing any 
document for filing for a debtor or accepting any fee from the 
debtor.'';
            (C) in paragraph (2), as so redesignated--
                (i) by striking ``Within 10 days after the date of the 
            filing of a petition, a bankruptcy petition preparer shall 
            file a'' and inserting ``A'';
                (ii) by inserting ``by the bankruptcy petition preparer 
            shall be filed together with the petition,'' after 
            ``perjury''; and
                (iii) by adding at the end the following: ``If rules or 
            guidelines setting a maximum fee for services have been 
            promulgated or prescribed under paragraph (1), the 
            declaration under this paragraph shall include a 
            certification that the bankruptcy petition preparer 
            complied with the notification requirement under paragraph 
            (1).'';
            (D) by striking paragraph (3), as so redesignated, and 
        inserting the following:
    ``(3)(A) The court shall disallow and order the immediate turnover 
to the bankruptcy trustee any fee referred to in paragraph (2) found to 
be in excess of the value of any services--
        ``(i) rendered by the bankruptcy petition preparer during the 
    12-month period immediately preceding the date of the filing of the 
    petition; or
        ``(ii) found to be in violation of any rule or guideline 
    promulgated or prescribed under paragraph (1).
    ``(B) All fees charged by a bankruptcy petition preparer may be 
forfeited in any case in which the bankruptcy petition preparer fails 
to comply with this subsection or subsection (b), (c), (d), (e), (f), 
or (g).
    ``(C) An individual may exempt any funds recovered under this 
paragraph under section 522(b).''; and
            (E) in paragraph (4), as so redesignated, by striking ``or 
        the United States trustee'' and inserting ``the United States 
        trustee (or the bankruptcy administrator, if any) or the court, 
        on the initiative of the court,'';
        (9) in subsection (i)(1), by striking the matter preceding 
    subparagraph (A) and inserting the following:
    ``(i)(1) If a bankruptcy petition preparer violates this section or 
commits any act that the court finds to be fraudulent, unfair, or 
deceptive, on the motion of the debtor, trustee, United States trustee 
(or the bankruptcy administrator, if any), and after notice and a 
hearing, the court shall order the bankruptcy petition preparer to pay 
to the debtor--'';
        (10) in subsection (j)--
            (A) in paragraph (2)--
                (i) in subparagraph (A)(i)(I), by striking ``a 
            violation of which subjects a person to criminal penalty'';
                (ii) in subparagraph (B)--

                    (I) by striking ``or has not paid a penalty'' and 
                inserting ``has not paid a penalty''; and
                    (II) by inserting ``or failed to disgorge all fees 
                ordered by the court'' after ``a penalty imposed under 
                this section,'';

            (B) by redesignating paragraph (3) as paragraph (4); and
            (C) by inserting after paragraph (2) the following:
    ``(3) The court, as part of its contempt power, may enjoin a 
bankruptcy petition preparer that has failed to comply with a previous 
order issued under this section. The injunction under this paragraph 
may be issued on the motion of the court, the trustee, or the United 
States trustee (or the bankruptcy administrator, if any).''; and
        (11) by adding at the end the following:
    ``(l)(1) A bankruptcy petition preparer who fails to comply with 
any provision of subsection (b), (c), (d), (e), (f), (g), or (h) may be 
fined not more than $500 for each such failure.
    ``(2) The court shall triple the amount of a fine assessed under 
paragraph (1) in any case in which the court finds that a bankruptcy 
petition preparer--
        ``(A) advised the debtor to exclude assets or income that 
    should have been included on applicable schedules;
        ``(B) advised the debtor to use a false Social Security account 
    number;
        ``(C) failed to inform the debtor that the debtor was filing 
    for relief under this title; or
        ``(D) prepared a document for filing in a manner that failed to 
    disclose the identity of the bankruptcy petition preparer.
    ``(3) A debtor, trustee, creditor, or United States trustee (or the 
bankruptcy administrator, if any) may file a motion for an order 
imposing a fine on the bankruptcy petition preparer for any violation 
of this section.
    ``(4)(A) Fines imposed under this subsection in judicial districts 
served by United States trustees shall be paid to the United States 
trustee, who shall deposit an amount equal to such fines in a special 
account of the United States Trustee System Fund referred to in section 
586(e)(2) of title 28. Amounts deposited under this subparagraph shall 
be available to fund the enforcement of this section on a national 
basis.
    ``(B) Fines imposed under this subsection in judicial districts 
served by bankruptcy administrators shall be deposited as offsetting 
receipts to the fund established under section 1931 of title 28, and 
shall remain available until expended to reimburse any appropriation 
for the amount paid out of such appropriation for expenses of the 
operation and maintenance of the courts of the United States.''.

SEC. 222. 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. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.

    Section 507(a) of title 11, United States Code, as amended by 
section 212, is amended by inserting after paragraph (9) the following:
        ``(10) Tenth, allowed claims for death or personal injury 
    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.''.

SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

    (a) In General.--Section 522 of title 11, United States Code, is 
amended--
        (1) in subsection (b)--
            (A) in paragraph (2)--
                (i) in subparagraph (A), by striking ``and'' at the 
            end;
                (ii) in subparagraph (B), by striking the period at the 
            end and inserting ``; and'';
                (iii) by adding at the end the following:
        ``(C) retirement funds to the extent that those funds are in a 
    fund or account that is exempt from taxation under section 401, 
    403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 
    1986.''; and
                (iv) by striking ``(2)(A) any property'' and inserting:
    ``(3) Property listed in this paragraph is--
        ``(A) any property'';
            (B) by striking paragraph (1) and inserting:
    ``(2) Property listed in this paragraph is property that is 
specified under subsection (d), unless the State law that is applicable 
to the debtor under paragraph (3)(A) specifically does not so 
authorize.'';
            (C) by striking ``(b) Notwithstanding'' and inserting 
        ``(b)(1) Notwithstanding'';
            (D) by striking ``paragraph (2)'' each place it appears and 
        inserting ``paragraph (3)'';
            (E) by striking ``paragraph (1)'' each place it appears and 
        inserting ``paragraph (2)'';
            (F) by striking ``Such property is--''; and
            (G) by adding at the end the following:
    ``(4) For purposes of paragraph (3)(C) and subsection (d)(12), the 
following shall apply:
        ``(A) If the retirement funds are in a retirement fund that has 
    received a favorable determination under section 7805 of the 
    Internal Revenue Code of 1986, and that determination is in effect 
    as of the date of the filing of the petition in a case under this 
    title, those funds shall be presumed to be exempt from the estate.
        ``(B) If the retirement funds are in a retirement fund that has 
    not received a favorable determination under such section 7805, 
    those funds are exempt from the estate if the debtor demonstrates 
    that--
            ``(i) no prior determination to the contrary has been made 
        by a court or the Internal Revenue Service; and
            ``(ii)(I) the retirement fund is in substantial compliance 
        with the applicable requirements of the Internal Revenue Code 
        of 1986; or
            ``(II) the retirement fund fails to be in substantial 
        compliance with the applicable requirements of the Internal 
        Revenue Code of 1986 and the debtor is not materially 
        responsible for that failure.
        ``(C) A direct transfer of retirement funds from 1 fund or 
    account that is exempt from taxation under section 401, 403, 408, 
    408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986, 
    under section 401(a)(31) of the Internal Revenue Code of 1986, or 
    otherwise, shall not cease to qualify for exemption under paragraph 
    (3)(C) or subsection (d)(12) by reason of such direct transfer.
        ``(D)(i) Any distribution that qualifies as an eligible 
    rollover distribution within the meaning of section 402(c) of the 
    Internal Revenue Code of 1986 or that is described in clause (ii) 
    shall not cease to qualify for exemption under paragraph (3)(C) or 
    subsection (d)(12) by reason of such distribution.
        ``(ii) A distribution described in this clause is an amount 
    that--
            ``(I) has been distributed from a fund or account that is 
        exempt from taxation under section 401, 403, 408, 408A, 414, 
        457, or 501(a) of the Internal Revenue Code of 1986; and
            ``(II) to the extent allowed by law, is deposited in such a 
        fund or account not later than 60 days after the distribution 
        of such amount.''; and
        (2) in subsection (d)--
            (A) in the matter preceding paragraph (1), by striking 
        ``subsection (b)(1)'' and inserting ``subsection (b)(2)''; and
            (B) by adding at the end the following:
        ``(12) Retirement funds to the extent that those funds are in a 
    fund or account that is exempt from taxation under section 401, 
    403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 
    1986.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, is amended--
        (1) in paragraph (17), by striking ``or'' at the end;
        (2) in paragraph (18), by striking the period and inserting a 
    semicolon; and
        (3) by inserting after paragraph (18) the following:
        ``(19) under subsection (a), of withholding of income from a 
    debtor's wages and collection of amounts withheld, under the 
    debtor's agreement authorizing that withholding and collection for 
    the benefit of a pension, profit-sharing, stock bonus, or other 
    plan established under section 401, 403, 408, 408A, 414, 457, or 
    501(c) of the Internal Revenue Code of 1986, that is sponsored by 
    the employer of the debtor, or an affiliate, successor, or 
    predecessor of such employer--
            ``(A) to the extent that the amounts withheld and collected 
        are used solely for payments relating to a loan from a plan 
        under section 408(b)(1) of the Employee Retirement Income 
        Security Act of 1974 or is subject to section 72(p) of the 
        Internal Revenue Code of 1986; or
            ``(B) a loan from a thrift savings plan permitted under 
        subchapter III of chapter 84 of title 5, that satisfies the 
        requirements of section 8433(g) of such title;
    but nothing in this paragraph may be construed to provide that any 
    loan made under a governmental plan under section 414(d), or a 
    contract or account under section 403(b), of the Internal Revenue 
    Code of 1986 constitutes a claim or a debt under this title;''.
    (c) Exceptions To Discharge.--Section 523(a) of title 11, United 
States Code, as amended by section 215, is amended by inserting after 
paragraph (17) the following:
        ``(18) owed to a pension, profit-sharing, stock bonus, or other 
    plan established under section 401, 403, 408, 408A, 414, 457, or 
    501(c) of the Internal Revenue Code of 1986, under--
            ``(A) a loan permitted under section 408(b)(1) of the 
        Employee Retirement Income Security Act of 1974, or subject to 
        section 72(p) of the Internal Revenue Code of 1986; or
            ``(B) a loan from a thrift savings plan permitted under 
        subchapter III of chapter 84 of title 5, that satisfies the 
        requirements of section 8433(g) of such title;
    but nothing in this paragraph may be construed to provide that any 
    loan made under a governmental plan under section 414(d), or a 
    contract or account under section 403(b), of the Internal Revenue 
    Code of 1986 constitutes a claim or a debt under this title; or''.
    (d) Plan Contents.--Section 1322 of title 11, United States Code, 
is amended by adding at the end the following:
    ``(f) A plan may not materially alter the terms of a loan described 
in section 362(b)(19) and any amounts required to repay such loan shall 
not constitute `disposable income' under section 1325.''.
    (e) Asset Limitation.--
        (1) Limitation.--Section 522 of title 11, United States Code, 
    is amended by adding at the end the following:
    ``(n) For assets in individual retirement accounts described in 
section 408 or 408A of the Internal Revenue Code of 1986, other than a 
simplified employee pension under section 408(k) of such Code or a 
simple retirement account under section 408(p) of such Code, the 
aggregate value of such assets exempted under this section, without 
regard to amounts attributable to rollover contributions under section 
402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8) of the Internal 
Revenue Code of 1986, and earnings thereon, shall not exceed $1,000,000 
in a case filed by a debtor who is an individual, except that such 
amount may be increased if the interests of justice so require.''.
        (2) Adjustment of dollar amounts.--Paragraphs (1) and (2) of 
    section 104(b) of title 11, United States Code, are amended by 
    inserting ``522(n),'' after ``522(d),''.

SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANKRUPTCY.

    (a) Exclusions.--Section 541 of title 11, United States Code, is 
amended--
        (1) in subsection (b)--
            (A) in paragraph (4), by striking ``or'' at the end;
            (B) by redesignating paragraph (5) as paragraph (9); and
            (C) by inserting after paragraph (4) the following:
        ``(5) funds placed in an education individual retirement 
    account (as defined in section 530(b)(1) of the Internal Revenue 
    Code of 1986) not later than 365 days before the date of the filing 
    of the petition in a case under this title, but--
            ``(A) only if the designated beneficiary of such account 
        was a child, stepchild, grandchild, or stepgrandchild of the 
        debtor for the taxable year for which funds were placed in such 
        account;
            ``(B) only to the extent that such funds--
                ``(i) are not pledged or promised to any entity in 
            connection with any extension of credit; and
                ``(ii) are not excess contributions (as described in 
            section 4973(e) of the Internal Revenue Code of 1986); and
            ``(C) in the case of funds placed in all such accounts 
        having the same designated beneficiary not earlier than 720 
        days nor later than 365 days before such date, only so much of 
        such funds as does not exceed $5,000;
        ``(6) funds used to purchase a tuition credit or certificate or 
    contributed to an account in accordance with section 529(b)(1)(A) 
    of the Internal Revenue Code of 1986 under a qualified State 
    tuition program (as defined in section 529(b)(1) of such Code) not 
    later than 365 days before the date of the filing of the petition 
    in a case under this title, but--
            ``(A) only if the designated beneficiary of the amounts 
        paid or contributed to such tuition program was a child, 
        stepchild, grandchild, or stepgrandchild of the debtor for the 
        taxable year for which funds were paid or contributed;
            ``(B) with respect to the aggregate amount paid or 
        contributed to such program having the same designated 
        beneficiary, only so much of such amount as does not exceed the 
        total contributions permitted under section 529(b)(7) of such 
        Code with respect to such beneficiary, as adjusted beginning on 
        the date of the filing of the petition in a case under this 
        title by the annual increase or decrease (rounded to the 
        nearest tenth of 1 percent) in the education expenditure 
        category of the Consumer Price Index prepared by the Department 
        of Labor; and
            ``(C) in the case of funds paid or contributed to such 
        program having the same designated beneficiary not earlier than 
        720 days nor later than 365 days before such date, only so much 
        of such funds as does not exceed $5,000;''; and
        (2) by adding at the end the following:
    ``(e) In determining whether any of the relationships specified in 
paragraph (5)(A) or (6)(A) of subsection (b) exists, a legally adopted 
child of an individual (and a child who is a member of an individual's 
household, if placed with such individual by an authorized placement 
agency for legal adoption by such individual), or a foster child of an 
individual (if such child has as the child's principal place of abode 
the home of the debtor and is a member of the debtor's household) shall 
be treated as a child of such individual by blood.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by section 106, is amended by adding at the end the 
following:
    ``(c) In addition to meeting the requirements under subsection (a), 
a debtor shall file with the court a record of any interest that a 
debtor has in an education individual retirement account (as defined in 
section 530(b)(1) of the Internal Revenue Code of 1986) or under a 
qualified State tuition program (as defined in section 529(b)(1) of 
such Code).''.

SEC. 226. DEFINITIONS.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended--
        (1) by inserting after paragraph (2) the following:
        ``(3) `assisted person' means any person whose debts consist 
    primarily of consumer debts and the value of whose nonexempt 
    property is 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 case or proceeding on behalf of another or providing 
    legal representation with respect to a case or proceeding under 
    this title;''; and
        (3) by inserting after paragraph (12) the following:
        ``(12A) `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--
            ``(A) any person who is an officer, director, employee, or 
        agent of a person who provides such assistance or of the 
        bankruptcy petition preparer;
            ``(B) a nonprofit organization that is exempt from taxation 
        under section 501(c)(3) of the Internal Revenue Code of 1986;
            ``(C) a creditor of such assisted person, to the extent 
        that the creditor is assisting such assisted person to 
        restructure any debt owed by such assisted person to the 
        creditor;
            ``(D) a depository institution (as defined in section 3 of 
        the Federal Deposit Insurance Act) or any Federal credit union 
        or State credit union (as those terms are defined in section 
        101 of the Federal Credit Union Act), or any affiliate or 
        subsidiary of such depository institution or credit union; or
            ``(E) an author, publisher, distributor, or seller of works 
        subject to copyright protection under title 17, when acting in 
        such capacity.''.
    (b) Conforming Amendment.--Section 104(b) of title 11, United 
States Code, is amended by inserting ``101(3),'' after ``sections'' 
each place it appears.

SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES.

    (a) Enforcement.--Subchapter II of chapter 5 of title 11, United 
States Code, is amended by adding at the end the following:

``Sec. 526. Restrictions on debt relief agencies

    ``(a) A debt relief agency shall not--
        ``(1) fail to perform any service that such agency informed an 
    assisted person or prospective assisted person it would provide in 
    connection with a case or proceeding under this title;
        ``(2) make any statement, or counsel or advise any assisted 
    person or prospective assisted person to make a statement in a 
    document filed in a case or proceeding under this title, that is 
    untrue and misleading, or that upon the exercise of reasonable 
    care, should have been known by such agency to be untrue or 
    misleading;
        ``(3) misrepresent to any assisted person or prospective 
    assisted person, directly or indirectly, affirmatively or by 
    material omission, with respect to--
            ``(A) the services that such agency will provide to such 
        person; or
            ``(B) the benefits and risks that may result if such person 
        becomes a debtor in a case under this title; or
        ``(4) advise an assisted person or prospective assisted person 
    to incur more debt in contemplation of such person filing a case 
    under this title or 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 case under this title.
    ``(b) Any waiver by any assisted person of any protection or right 
provided under this section shall not be enforceable against the debtor 
by any Federal or State court or any other person, but may be enforced 
against a debt relief agency.
    ``(c)(1) Any contract for bankruptcy assistance between a debt 
relief agency and an assisted person that does not comply with the 
material requirements of this section, section 527, or section 528 
shall be void and may not be enforced by any Federal or State court or 
by any other person, other than such assisted person.
    ``(2) Any debt relief agency shall be liable to an assisted person 
in the amount of any fees or charges in connection with providing 
bankruptcy assistance to such person that such debt relief agency has 
received, for actual damages, and for reasonable attorneys' fees and 
costs if such agency is found, after notice and a hearing, to have--
        ``(A) intentionally or negligently failed to comply with any 
    provision of this section, section 527, or section 528 with respect 
    to a case or proceeding under this title for such assisted person;
        ``(B) provided bankruptcy assistance to an assisted person in a 
    case or proceeding under this title that is dismissed or converted 
    to a case under another chapter of this title because of such 
    agency's intentional or negligent failure to file any required 
    document including those specified in section 521; or
        ``(C) intentionally or negligently disregarded the material 
    requirements of this title or the Federal Rules of Bankruptcy 
    Procedure applicable to such agency.
    ``(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 this section, 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 
    attorneys' fees as determined by the court.
    ``(4) The district courts of the United States for districts 
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 and in 
addition to any other remedy provided under Federal or State law, if 
the court, on its own motion or on the motion of the United States 
trustee or the debtor, finds that a person intentionally violated this 
section, or engaged in a clear and consistent pattern or practice of 
violating this section, the court may--
        ``(A) enjoin the violation of such section; or
        ``(B) impose an appropriate civil penalty against such person.
    ``(d) No provision of this section, section 527, or section 528 
shall--
        ``(1) annul, alter, affect, or exempt any person subject to 
    such 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; or
        ``(2) be deemed to limit or curtail the authority or ability--
            ``(A) of a State or subdivision or instrumentality thereof, 
        to determine and enforce qualifications for the practice of law 
        under the laws of that State; or
            ``(B) of a Federal court to determine and enforce the 
        qualifications for the practice of law before that court.''.
    (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. Restrictions on debt relief agencies.''.

SEC. 228. DISCLOSURES.

    (a) Disclosures.--Subchapter II of chapter 5 of title 11, United 
States Code, as amended by section 227, is amended by adding at the end 
the following:

``Sec. 527. Disclosures

    ``(a) A debt relief agency providing bankruptcy assistance to an 
assisted person shall provide--
        ``(1) the written notice required under section 342(b)(1); and
        ``(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 that the assisted person is required 
        to provide with a petition and thereafter during a case under 
        this title is required to be complete, accurate, and truthful;
            ``(B) all assets and all liabilities are required to 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 must be stated in those documents where 
        requested after reasonable inquiry to establish such value;
            ``(C) current monthly income, the amounts specified in 
        section 707(b)(2), and, in a case under chapter 13 of this 
        title, disposable income (determined in accordance with section 
        707(b)(2)), are required to be stated after reasonable inquiry; 
        and
            ``(D) information that an assisted person provides during 
        their case may be audited pursuant to this title, and that 
        failure to provide such information may result in dismissal of 
        the case under this title or other sanction, including a 
        criminal sanction.
    ``(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) the following statement, 
to the extent applicable, or one substantially similar. The statement 
shall be clear and conspicuous and shall be in a single document 
separate from other documents or notices provided to the assisted 
person:
    ```IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM 
AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.
    ```If you decide to seek bankruptcy relief, you can represent 
yourself, you can hire an attorney to represent you, or you can get 
help in some localities from a bankruptcy petition preparer who is not 
an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION 
PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR 
BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. 
Ask to see the contract before you hire anyone.
    ```The following information helps you understand what must be done 
in a routine bankruptcy case to help you evaluate how much service you 
need. Although bankruptcy can be complex, many cases are routine.
    ```Before filing a bankruptcy case, either you or your attorney 
should analyze your eligibility for different forms of debt relief 
available under 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. 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 
should 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 shall be provided in a clear and conspicuous writing) to the 
assisted person on how to provide all the information the assisted 
person is required to provide under this title pursuant to section 521, 
including--
        ``(1) how to value assets at replacement value, determine 
    current monthly income, the amounts specified in section 707(b)(2) 
    and, in a chapter 13 case, how to determine disposable income in 
    accordance with section 707(b)(2) and related calculations;
        ``(2) how to complete the list of creditors, including how to 
    determine what amount is owed and what address for the creditor 
    should be shown; and
        ``(3) how to determine what property is exempt and how to value 
    exempt property at replacement value as defined in section 506.
    ``(d) A debt relief agency shall maintain a copy of the notices 
required under subsection (a) of this section for 2 years after the 
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, as amended by section 227, is amended by 
inserting after the item relating to section 526 the following:

``527. Disclosures.''.

SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES.

    (a) Enforcement.--Subchapter II of chapter 5 of title 11, United 
States Code, as amended by sections 227 and 228, is amended by adding 
at the end the following:

``Sec. 528. Requirements for debt relief agencies

    ``(a) A debt relief agency shall--
        ``(1) not later than 5 business days after the first date on 
    which such agency provides any bankruptcy assistance services to an 
    assisted person, but prior to such assisted person's petition under 
    this title being filed, execute a written contract with such 
    assisted person that explains clearly and conspicuously--
            ``(A) the services such agency will provide to such 
        assisted person; and
            ``(B) the fees or charges for such services, and the terms 
        of payment;
        ``(2) provide the assisted person with a copy of the fully 
    executed and completed contract;
        ``(3) clearly and conspicuously 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 
    bankruptcy relief under this title; and
        ``(4) clearly and conspicuously use the following statement in 
    such advertisement: `We are a debt relief agency. We help people 
    file for bankruptcy relief under the Bankruptcy Code.' or a 
    substantially similar statement.
    ``(b)(1) An advertisement of bankruptcy assistance services or of 
the benefits of bankruptcy directed to the general public includes--
        ``(A) descriptions of bankruptcy assistance in connection with 
    a chapter 13 plan whether or not chapter 13 is specifically 
    mentioned in such advertisement; and
        ``(B) statements such as `federally supervised repayment plan' 
    or `Federal debt restructuring help' or other similar statements 
    that could lead a reasonable consumer to believe that debt 
    counseling was being offered when in fact the services were 
    directed to providing bankruptcy assistance with a chapter 13 plan 
    or other form of bankruptcy relief under this title.
    ``(2) An advertisement, directed to the general public, indicating 
that the debt relief agency provides assistance with respect to credit 
defaults, mortgage foreclosures, eviction proceedings, excessive debt, 
debt collection pressure, or inability to pay any consumer debt shall--
        ``(A) disclose clearly and conspicuously in such advertisement 
    that the assistance may involve bankruptcy relief under this title; 
    and
        ``(B) include the following statement: `We are a debt relief 
    agency. We help people file for bankruptcy relief under the 
    Bankruptcy Code.' or a substantially similar statement.''.
    (b) Conforming Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, as amended by section 227 and 228, is 
amended by inserting after the item relating to section 527, the 
following:

``528. Requirements for debt relief agencies.''.

SEC. 230. GAO STUDY.

    (a) Study.--Not later than 270 days after the date of enactment of 
this Act, the Comptroller General of the United States shall conduct a 
study of the feasibility, effectiveness, and cost of requiring trustees 
appointed under title 11, United States Code, or the bankruptcy courts, 
to provide to the Office of Child Support Enforcement promptly after 
the commencement of cases by debtors who are individuals under such 
title, the names and social security account numbers of such debtors 
for the purposes of allowing such Office to determine whether such 
debtors have outstanding obligations for child support (as determined 
on the basis of information in the Federal Case Registry or other 
national database).
    (b) Report.--Not later than 300 days after the date of enactment of 
this Act, the Comptroller General shall submit to the President pro 
tempore of the Senate and the Speaker of the House of Representatives a 
report containing the results of the study required by subsection (a).

SEC. 231. PROTECTION OF PERSONALLY IDENTIFIABLE INFORMATION.

    (a) Limitation.--Section 363(b)(1) of title 11, United States Code, 
is amended by striking the period at the end and inserting the 
following:
``, except that if the debtor in connection with offering a product or 
a service discloses to an individual a policy prohibiting the transfer 
of personally identifiable information about individuals to persons 
that are not affiliated with the debtor and if such policy is in effect 
on the date of the commencement of the case, then the trustee may not 
sell or lease personally identifiable information to any person 
unless--
        ``(A) such sale or such lease is consistent with such policy; 
    or
        ``(B) after appointment of a consumer privacy ombudsman in 
    accordance with section 332, and after notice and a hearing, the 
    court approves such sale or such lease--
            ``(i) giving due consideration to the facts, circumstances, 
        and conditions of such sale or such lease; and
            ``(ii) finding that no showing was made that such sale or 
        such lease would violate applicable nonbankruptcy law.''.
    (b) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (41) the following:
        ``(41A) `personally identifiable information' means--
            ``(A) if provided by an individual to the debtor in 
        connection with obtaining a product or a service from the 
        debtor primarily for personal, family, or household purposes--
                ``(i) the first name (or initial) and last name of such 
            individual, whether given at birth or time of adoption, or 
            resulting from a lawful change of name;
                ``(ii) the geographical address of a physical place of 
            residence of such individual;
                ``(iii) an electronic address (including an e-mail 
            address) of such individual;
                ``(iv) a telephone number dedicated to contacting such 
            individual at such physical place of residence;
                ``(v) a social security account number issued to such 
            individual; or
                ``(vi) the account number of a credit card issued to 
            such individual; or
            ``(B) if identified in connection with 1 or more of the 
        items of information specified in subparagraph (A)--
                ``(i) a birth date, the number of a certificate of 
            birth or adoption, or a place of birth; or
                ``(ii) any other information concerning an identified 
            individual that, if disclosed, will result in contacting or 
            identifying such individual physically or 
            electronically;''.

SEC. 232. CONSUMER PRIVACY OMBUDSMAN.

    (a) Consumer Privacy Ombudsman.--Title 11 of the United States Code 
is amended by inserting after section 331 the following:

``Sec. 332. Consumer privacy ombudsman

    ``(a) If a hearing is required under section 363(b)(1)(B), the 
court shall order the United States trustee to appoint, not later than 
5 days before the commencement of the hearing, 1 disinterested person 
(other than the United States trustee) to serve as the consumer privacy 
ombudsman in the case and shall require that notice of such hearing be 
timely given to such ombudsman.
    ``(b) The consumer privacy ombudsman may appear and be heard at 
such hearing and shall provide to the court information to assist the 
court in its consideration of the facts, circumstances, and conditions 
of the proposed sale or lease of personally identifiable information 
under section 363(b)(1)(B). Such information may include presentation 
of--
        ``(1) the debtor's privacy policy;
        ``(2) the potential losses or gains of privacy to consumers if 
    such sale or such lease is approved by the court;
        ``(3) the potential costs or benefits to consumers if such sale 
    or such lease is approved by the court; and
        ``(4) the potential alternatives that would mitigate potential 
    privacy losses or potential costs to consumers.
    ``(c) A consumer privacy ombudsman shall not disclose any 
personally identifiable information obtained by the ombudsman under 
this title.''.
    (b) Compensation of Consumer Privacy Ombudsman.--Section 330(a)(1) 
of title 11, United States Code, is amended in the matter preceding 
subparagraph (A), by inserting ``a consumer privacy ombudsman appointed 
under section 332,'' before ``an examiner''.
    (c) Conforming Amendment.--The table of sections for subchapter II 
of chapter 3 of title 11, United States Code, is amended by adding at 
the end the following:

``332. Consumer privacy ombudsman.''.

SEC. 233. PROHIBITION ON DISCLOSURE OF NAME OF MINOR CHILDREN.

    (a) Prohibition.--Title 11 of the United States Code, as amended by 
section 106, is amended by inserting after section 111 the following:

``Sec. 112. Prohibition on disclosure of name of minor children

    ``The debtor may be required to provide information regarding a 
minor child involved in matters under this title but may not be 
required to disclose in the public records in the case the name of such 
minor child. The debtor may be required to disclose the name of such 
minor child in a nonpublic record that is maintained by the court and 
made available by the court for examination by the United States 
trustee, the trustee, and the auditor (if any) serving under section 
586(f) of title 28, in the case. The court, the United States trustee, 
the trustee, and such auditor shall not disclose the name of such minor 
child maintained in such nonpublic record.''.
    (b) Clerical Amendment.--The table of sections for chapter 1 of 
title 11, United States Code, as amended by section 106, is amended by 
inserting after the item relating to section 111 the following:

``112. Prohibition on disclosure of name of minor children.''.
    (c) Conforming Amendment.--Section 107(a) of title 11, United 
States Code, is amended by inserting ``and subject to section 112'' 
after ``section''.

SEC. 234. PROTECTION OF PERSONAL INFORMATION.

    (a) Restriction of Public Access to Certain Information Contained 
in Bankruptcy Case Files.--Section 107 of title 11, United States Code, 
is amended by adding at the end the following:
    ``(c)(1) The bankruptcy court, for cause, may protect an 
individual, with respect to the following types of information to the 
extent the court finds that disclosure of such information would create 
undue risk of identity theft or other unlawful injury to the individual 
or the individual's property:
        ``(A) Any means of identification (as defined in section 
    1028(d) of title 18) contained in a paper filed, or to be filed, in 
    a case under this title.
        ``(B) Other information contained in a paper described in 
    subparagraph (A).
    ``(2) Upon ex parte application demonstrating cause, the court 
shall provide access to information protected pursuant to paragraph (1) 
to an entity acting pursuant to the police or regulatory power of a 
domestic governmental unit.
    ``(3) The United States trustee, bankruptcy administrator, trustee, 
and any auditor serving under section 586(f) of title 28--
        ``(A) shall have full access to all information contained in 
    any paper filed or submitted in a case under this title; and
        ``(B) shall not disclose information specifically protected by 
    the court under this title.''.
    (b) Security of Social Security Account Number of Debtor in Notice 
to Creditor.--Section 342(c) of title 11, United States Code, is 
amended--
        (1) by inserting ``last 4 digits of the'' before ``taxpayer 
    identification number''; and
        (2) by adding at the end the following: ``If the notice 
    concerns an amendment that adds a creditor to the schedules of 
    assets and liabilities, the debtor shall include the full taxpayer 
    identification number in the notice sent to that creditor, but the 
    debtor shall include only the last 4 digits of the taxpayer 
    identification number in the copy of the notice filed with the 
    court.''.
    (c) Conforming Amendment.--Section 107(a) of title 11, United 
States Code, is amended by striking ``subsection (b),'' and inserting 
``subsections (b) and (c),''.

                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

SEC. 301. TECHNICAL AMENDMENTS.

    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 debtor 
    who is an individual in a case 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 shall terminate with respect 
        to the debtor on the 30th day after the filing of the later 
        case;
            ``(B) on the motion of 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 
                chapters 7, 11, and 13 in which the individual was a 
                debtor was pending within the preceding 1-year period;
                    ``(II) a previous case under any of chapters 7, 11, 
                and 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 or any other reason to conclude 
                that the later case will be concluded--

                        ``(aa) if a case under chapter 7, with a 
                    discharge; or
                        ``(bb) if a case under chapter 11 or 13, with a 
                    confirmed plan that 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 a 
    debtor who is an individual 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 a 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 the entry of the order allowing the stay to go into 
    effect; and
        ``(D) 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) 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 provide adequate 
            protection as ordered by the court, or failed to perform 
            the terms of a plan confirmed by the court; or
                ``(III) there has not been a substantial change in the 
            financial or personal affairs of the debtor since the 
            dismissal of the next most previous case under 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 such 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 property, if the court finds that the filing 
    of the 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, such real property without the consent of the 
        secured creditor or court approval; or
            ``(B) multiple bankruptcy filings affecting such real 
        property.
If recorded in compliance with applicable State laws governing notices 
of interests or liens in real property, an order entered under 
paragraph (4) shall be binding in any other case under this title 
purporting to affect such real property filed not later than 2 years 
after the date of the entry of such order by the court, except that a 
debtor in a subsequent case under this title may move for relief from 
such order based upon changed circumstances or for good cause shown, 
after notice and a hearing. Any Federal, State, or local governmental 
unit that accepts notices of interests or liens in real property shall 
accept any certified copy of an order described in this subsection for 
indexing and recording.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 224, is amended by inserting after 
paragraph (19), the following:
        ``(20) under subsection (a), of any act to enforce any lien 
    against or security interest in real property following entry of 
    the order under subsection (d)(4) as to such real property in any 
    prior case under this title, for a period of 2 years after the date 
    of the entry of such an order, except that the debtor, in a 
    subsequent case under this title, may move for relief from such 
    order based upon changed circumstances or for other good cause 
    shown, after notice and a hearing;
        ``(21) 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 case under this title; or
            ``(B) if the case under this title was filed in violation 
        of a bankruptcy court order in a prior case under this title 
        prohibiting the debtor from being a debtor in another case 
        under this title;''.

SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

    Title 11, United States Code, is amended--
        (1) in section 521(a), as so designated by section 106--
            (A) in paragraph (4), by striking ``, and'' at the end and 
        inserting a semicolon;
            (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 a case under chapter 7 of this title in which the 
    debtor is an individual, 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 such personal 
    property unless the debtor, not later than 45 days after the first 
    meeting of creditors under section 341(a), either--
            ``(A) enters into an agreement with the creditor pursuant 
        to section 524(c) with respect to the claim secured by such 
        property; or
            ``(B) redeems such property from the security interest 
        pursuant to section 722.
If the debtor fails to so act within the 45-day period referred to in 
paragraph (6), the stay under section 362(a) is terminated with respect 
to the personal property of the estate or of the debtor which is 
affected, such property 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 filed before the expiration of such 45-day 
period, and after notice and a hearing, that such property is of 
consequential value or benefit to the estate, orders appropriate 
adequate protection of the creditor's interest, and orders the debtor 
to deliver any collateral in the debtor's possession to the trustee.''; 
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, as amended by section 106--
            (A) in subsection (c), by striking ``(e), and (f)'' and 
        inserting ``(e), (f), and (h)'';
            (B) by redesignating subsection (h) as subsection (k) and 
        transferring such subsection so as to insert it after 
        subsection (j) as added by section 106; and
            (C) by inserting after subsection (g) the following:
    ``(h)(1) In a case in which the debtor is an individual, the stay 
provided by subsection (a) is terminated with respect to personal 
property of the estate or of the debtor securing in whole or in part a 
claim, or subject to an unexpired lease, and such personal property 
shall no longer be property of the estate if the debtor fails within 
the applicable time set by section 521(a)(2)--
        ``(A) to file timely any statement of intention required under 
    section 521(a)(2) with respect to such personal property or to 
    indicate in such statement that the debtor will either surrender 
    such personal property or retain it and, if retaining such personal 
    property, either redeem such personal property pursuant to section 
    722, enter into an agreement of the kind specified in section 
    524(c) applicable to the debt secured by such personal property, or 
    assume such unexpired lease pursuant to section 365(p) if the 
    trustee does not do so, as applicable; and
        ``(B) to take timely the action specified in such statement, as 
    it may be amended before expiration of the period for taking 
    action, unless such statement specifies the debtor's intention to 
    reaffirm such debt on the original contract terms and the creditor 
    refuses to agree to the reaffirmation on such terms.
    ``(2) Paragraph (1) does not apply if the court determines, on the 
motion of the trustee filed before the expiration of the applicable 
time set by section 521(a)(2), after notice and a hearing, that such 
personal property is of consequential value or benefit to the estate, 
and orders appropriate adequate protection of the creditor's interest, 
and orders the debtor to deliver any collateral in the debtor's 
possession to the trustee. If the court does not so determine, the stay 
provided by subsection (a) shall terminate upon the conclusion of the 
hearing on the motion.''; and
        (2) in section 521, as amended by sections 106 and 225--
            (A) in subsection (a)(2) by striking ``consumer'';
            (B) in subsection (a)(2)(B)--
                (i) by striking ``forty-five days after the filing of a 
            notice of intent under this section'' and inserting ``30 
            days after the first date set for the meeting of creditors 
            under section 341(a)''; and
                (ii) by striking ``forty-five day'' and inserting ``30-
            day'';
            (C) in subsection (a)(2)(C) by inserting ``, except as 
        provided in section 362(h)'' before the semicolon; and
            (D) by adding at the end the following:
    ``(d) If the debtor fails timely to take the action specified in 
subsection (a)(6) of this section, or in paragraphs (1) and (2) of 
section 362(h), 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 
such lease or agreement by reason of the occurrence, pendency, or 
existence of a proceeding under this title or the insolvency of the 
debtor. Nothing in this subsection shall be deemed to justify limiting 
such a provision in any other circumstance.''.

SEC. 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:
``For purposes of paragraph (5), section 506 shall not apply to a claim 
described in that paragraph if the creditor has a purchase money 
security interest securing the debt that is the subject of the claim, 
the debt was incurred within the 910-day preceding the date of 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 1-year 
period preceding that filing.''.
    (c) Definitions.--Section 101 of title 11, United States Code, 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, a mobile or manufactured home, or trailer;''; 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 property 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. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.

    Section 522(b)(3) of title 11, United States Code, as so designated 
by section 106, is amended--
        (1) in subparagraph (A)--
            (A) by striking ``180 days'' and inserting ``730 days''; 
        and
            (B) by striking ``, or for a longer portion of such 180-day 
        period than in any other place'' and inserting ``or if the 
        debtor's domicile has not been located at a single State for 
        such 730-day period, the place in which the debtor's domicile 
        was located for 180 days immediately preceding the 730-day 
        period or for a longer portion of such 180-day period than in 
        any other place''; and
        (2) by adding at the end the following:
``If the effect of the domiciliary requirement under subparagraph (A) 
is to render the debtor ineligible for any exemption, the debtor may 
elect to exempt property that is specified under subsection (d).''.

SEC. 308. REDUCTION OF HOMESTEAD EXEMPTION FOR FRAUD.

    Section 522 of title 11, United States Code, as amended by section 
224, is amended--
        (1) in subsection (b)(3)(A), as so designated by this Act, by 
    inserting ``subject to subsections (o) and (p),'' before ``any 
    property''; and
        (2) by adding at the end the following:
    ``(o) For purposes of subsection (b)(3)(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;
        ``(3) a burial plot for the debtor or a dependent of the 
    debtor; or
        ``(4) real or personal property that the debtor or a dependent 
    of the debtor claims as a homestead;
shall be reduced to the extent that such value is attributable to any 
portion of any property that the debtor disposed of in the 10-year 
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 a 
        case under chapter 11 or 12, but not in a case converted to a 
        case under 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 case under chapter 13; 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) If the debtor in a case under chapter 7 is an individual, 
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, not later than 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 in which the debtor is an 
individual and in a case under chapter 13, 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) Confirmation of plan.--Section 1325(a)(5)(B) of title 11, 
    United States Code, as amended by section 306, is amended--
            (A) in clause (i), by striking ``and'' at the end;
            (B) in clause (ii), by striking ``or'' at the end and 
        inserting ``and''; and
            (C) by adding at the end the following:
            ``(iii) if--
                ``(I) property to be distributed pursuant to this 
            subsection is in the form of periodic payments, such 
            payments shall be in equal monthly amounts; and
                ``(II) the holder of the claim is secured by personal 
            property, the amount of such payments shall not be less 
            than an amount sufficient to provide to the holder of such 
            claim adequate protection during the period of the plan; 
            or''.
        (2) Payments.--Section 1326(a) of title 11, United States Code, 
    is amended to read as follows:
    ``(a)(1) Unless the court orders otherwise, the debtor shall 
commence making payments not later than 30 days after the date of the 
filing of the plan or the order for relief, whichever is earlier, in 
the amount--
        ``(A) proposed by the plan to the trustee;
        ``(B) scheduled in a lease of personal property directly to the 
    lessor for that portion of the obligation that becomes due after 
    the order for relief, reducing the payments under subparagraph (A) 
    by the amount so paid and providing the trustee with evidence of 
    such payment, including the amount and date of payment; and
        ``(C) that provides adequate protection directly to a creditor 
    holding an allowed claim secured by personal property to the extent 
    the claim is attributable to the purchase of such property by the 
    debtor for that portion of the obligation that becomes due after 
    the order for relief, reducing the payments under subparagraph (A) 
    by the amount so paid and providing the trustee with evidence of 
    such payment, including the amount and date of payment.
    ``(2) A payment made under paragraph (1)(A) shall be retained by 
the trustee until confirmation or denial of confirmation. If a plan is 
confirmed, the trustee shall distribute any such payment in accordance 
with the plan as soon as is practicable. If a plan is not confirmed, 
the trustee shall return any such payments not previously paid and not 
yet due and owing to creditors pursuant to paragraph (3) to the debtor, 
after deducting any unpaid claim allowed under section 503(b).
    ``(3) Subject to section 363, the court may, upon notice and a 
hearing, modify, increase, or reduce the payments required under this 
subsection pending confirmation of a plan.
    ``(4) Not later than 60 days after the date of 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 the lessor or 
secured creditor reasonable evidence of the maintenance of any required 
insurance coverage with respect to the use or ownership of such 
property and continue to do so for so long as the debtor retains 
possession of such property.''.

SEC. 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 $500 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 terms `consumer', `credit', and `open end 
            credit plan' have the same meanings as in section 103 of 
            the Truth in Lending Act; and
                ``(II) 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.

    (a) In general.--Section 362(b) of title 11, United States Code, as 
amended by sections 224 and 303, is amended by inserting after 
paragraph (21), the following:
        ``(22) subject to subsection (l), under subsection (a)(3), of 
    the continuation of any eviction, unlawful detainer action, or 
    similar proceeding by a lessor against a debtor involving 
    residential property in which the debtor resides as a tenant under 
    a lease or rental agreement and with respect to which the lessor 
    has obtained before the date of the filing of the bankruptcy 
    petition, a judgment for possession of such property against the 
    debtor;
        ``(23) subject to subsection (m), under subsection (a)(3), of 
    an eviction action that seeks possession of the residential 
    property in which the debtor resides as a tenant under a lease or 
    rental agreement based on endangerment of such property or the 
    illegal use of controlled substances on such property, but only if 
    the lessor files with the court, and serves upon the debtor, a 
    certification under penalty of perjury that such an eviction action 
    has been filed, or that the debtor, during the 30-day period 
    preceding the date of the filing of the certification, has 
    endangered property or illegally used or allowed to be used a 
    controlled substance on the property;
        ``(24) under subsection (a), of any transfer that is not 
    avoidable under section 544 and that is not avoidable under section 
    549;''.
    (b) Limitations.--Section 362 of title 11, United States Code, as 
amended by sections 106 and 305, is amended by adding at the end the 
following:
    ``(l)(1) Except as otherwise provided in this subsection, 
subsection (b)(22) shall apply on the date that is 30 days after the 
date on which the bankruptcy petition is filed, if the debtor files 
with the petition and serves upon the lessor a certification under 
penalty of perjury that--
        ``(A) under nonbankruptcy law applicable in the jurisdiction, 
    there are circumstances under which the debtor would be permitted 
    to cure the entire monetary default that gave rise to the judgment 
    for possession, after that judgment for possession was entered; and
        ``(B) the debtor (or an adult dependent of the debtor) has 
    deposited with the clerk of the court, any rent that would become 
    due during the 30-day period after the filing of the bankruptcy 
    petition.
    ``(2) If, within the 30-day period after the filing of the 
bankruptcy petition, the debtor (or an adult dependent of the debtor) 
complies with paragraph (1) and files with the court and serves upon 
the lessor a further certification under penalty of perjury that the 
debtor (or an adult dependent of the debtor) has cured, under 
nonbankrupcty law applicable in the jurisdiction, the entire monetary 
default that gave rise to the judgment under which possession is sought 
by the lessor, subsection (b)(22) shall not apply, unless ordered to 
apply by the court under paragraph (3).
    ``(3)(A) If the lessor files an objection to any certification 
filed by the debtor under paragraph (1) or (2), and serves such 
objection upon the debtor, the court shall hold a hearing within 10 
days after the filing and service of such objection to determine if the 
certification filed by the debtor under paragraph (1) or (2) is true.
    ``(B) If the court upholds the objection of the lessor filed under 
subparagraph (A)--
        ``(i) subsection (b)(22) shall apply immediately and relief 
    from the stay provided under subsection (a)(3) shall not be 
    required to enable the lessor to complete the process to recover 
    full possession of the property; and
        ``(ii) the clerk of the court shall immediately serve upon the 
    lessor and the debtor a certified copy of the court's order 
    upholding the lessor's objection.
    ``(4) If a debtor, in accordance with paragraph (5), indicates on 
the petition that there was a judgment for possession of the 
residential rental property in which the debtor resides and does not 
file a certification under paragraph (1) or (2)--
        ``(A) subsection (b)(22) shall apply immediately upon failure 
    to file such certification, and relief from the stay provided under 
    subsection (a)(3) shall not be required to enable the lessor to 
    complete the process to recover full possession of the property; 
    and
        ``(B) the clerk of the court shall immediately serve upon the 
    lessor and the debtor a certified copy of the docket indicating the 
    absence of a filed certification and the applicability of the 
    exception to the stay under subsection (b)(22).
    ``(5)(A) Where a judgment for possession of residential property in 
which the debtor resides as a tenant under a lease or rental agreement 
has been obtained by the lessor, the debtor shall so indicate on the 
bankruptcy petition and shall provide the name and address of the 
lessor that obtained that pre-petition judgment on the petition and on 
any certification filed under this subsection.
    ``(B) The form of certification filed with the petition, as 
specified in this subsection, shall provide for the debtor to certify, 
and the debtor shall certify--
        ``(i) whether a judgment for possession of residential rental 
    housing in which the debtor resides has been obtained against the 
    debtor before the date of the filing of the petition; and
        ``(ii) whether the debtor is claiming under paragraph (1) that 
    under nonbankruptcy law applicable in the jurisdiction, there are 
    circumstances under which the debtor would be permitted to cure the 
    entire monetary default that gave rise to the judgment for 
    possession, after that judgment of possession was entered, and has 
    made the appropriate deposit with the court.
    ``(C) The standard forms (electronic and otherwise) used in a 
bankruptcy proceeding shall be amended to reflect the requirements of 
this subsection.
    ``(D) The clerk of the court shall arrange for the prompt 
transmittal of the rent deposited in accordance with paragraph (1)(B) 
to the lessor.
    ``(m)(1) Except as otherwise provided in this subsection, 
subsection (b)(23) shall apply on the date that is 15 days after the 
date on which the lessor files and serves a certification described in 
subsection (b)(23).
    ``(2)(A) If the debtor files with the court an objection to the 
truth or legal sufficiency of the certification described in subsection 
(b)(23) and serves such objection upon the lessor, subsection (b)(23) 
shall not apply, unless ordered to apply by the court under this 
subsection.
    ``(B) If the debtor files and serves the objection under 
subparagraph (A), the court shall hold a hearing within 10 days after 
the filing and service of such objection to determine if the situation 
giving rise to the lessor's certification under paragraph (1) existed 
or has been remedied.
    ``(C) If the debtor can demonstrate to the satisfaction of the 
court that the situation giving rise to the lessor's certification 
under paragraph (1) did not exist or has been remedied, the stay 
provided under subsection (a)(3) shall remain in effect until the 
termination of the stay under this section.
    ``(D) If the debtor cannot demonstrate to the satisfaction of the 
court that the situation giving rise to the lessor's certification 
under paragraph (1) did not exist or has been remedied--
        ``(i) relief from the stay provided under subsection (a)(3) 
    shall not be required to enable the lessor to proceed with the 
    eviction; and
        ``(ii) the clerk of the court shall immediately serve upon the 
    lessor and the debtor a certified copy of the court's order 
    upholding the lessor's certification.
    ``(3) If the debtor fails to file, within 15 days, an objection 
under paragraph (2)(A)--
        ``(A) subsection (b)(23) shall apply immediately upon such 
    failure and relief from the stay provided under subsection (a)(3) 
    shall not be required to enable the lessor to complete the process 
    to recover full possession of the property; and
        ``(B) the clerk of the court shall immediately serve upon the 
    lessor and the debtor a certified copy of the docket indicating 
    such failure.''.

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 inserting after subsection (e) the 
    following:
    ``(f) Notwithstanding subsections (a) and (b), the court shall not 
grant a discharge of all debts provided for in the plan or disallowed 
under section 502, if the debtor has received a discharge--
        ``(1) in a case filed under chapter 7, 11, or 12 of this title 
    during the 4-year period preceding the date of the order for relief 
    under this chapter, or
        ``(2) in a case filed under chapter 13 of this title during the 
    2-year period preceding the date of such order.''.

SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

    (a) Definition.--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;
        (xii) medical equipment and supplies;
        ``(xiii) furniture exclusively for the use of minor children, 
    or elderly or disabled dependents of the debtor;
        ``(xiv) personal effects (including the toys and hobby 
    equipment of minor dependent children and wedding rings) of the 
    debtor and the dependents of the debtor; and
        ``(xv) 1 personal computer and related equipment.
    ``(B) The term `household goods' does not include--
        ``(i) works of art (unless by or of the debtor, or any relative 
    of the debtor);
        ``(ii) electronic entertainment equipment with a fair market 
    value of more than $500 in the aggregate (except 1 television, 1 
    radio, and 1 VCR);
        ``(iii) items acquired as antiques with a fair market value of 
    more than $500 in the aggregate;
        ``(iv) jewelry with a fair market value of more than $500 in 
    the aggregate (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.''.
    (b) Study.--Not later than 2 years after the date of enactment of 
this Act, the Director of the Executive Office for United States 
Trustees shall submit a report to the Committee on the Judiciary of the 
Senate and the Committee on the Judiciary of the House of 
Representatives containing its findings regarding utilization of the 
definition of household goods, as defined in section 522(f)(4) of title 
11, United States Code, as added by subsection (a), with respect to the 
avoidance of nonpossessory, nonpurchase money security interests in 
household goods under section 522(f)(1)(B) of title 11, United States 
Code, and the impact such section 522(f)(4) has had on debtors and on 
the bankruptcy courts. Such report may include recommendations for 
amendments to such section 522(f)(4) consistent with the Director's 
findings.

SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE DEBTS.

    (a) In General.--Section 523(a) of title 11, United States Code, is 
amended by inserting after paragraph (14) the following:
        ``(14A) incurred to pay a tax to a governmental unit, other 
    than the United States, that would be nondischargeable under 
    paragraph (1);''.
    (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), (3), (4), (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, as 
amended by section 102, is amended--
        (1) in subsection (c)--
            (A) by inserting ``(1)'' after ``(c)'';
            (B) by striking ``, but the failure of such notice to 
        contain such information shall not invalidate the legal effect 
        of such notice''; and
            (C) by adding at the end the following:
    ``(2)(A) If, within the 90 days before the commencement of a 
voluntary case, a creditor supplies the debtor in at least 2 
communications sent to the debtor with the current account number of 
the debtor and the address at which such creditor requests to receive 
correspondence, then any notice required by this title to be sent by 
the debtor to such creditor shall be sent to such address and shall 
include such account number.
    ``(B) If a creditor would be in violation of applicable 
nonbankruptcy law by sending any such communication within such 90-day 
period and if such creditor supplies the debtor in the last 2 
communications with the current account number of the debtor and the 
address at which such creditor requests to receive correspondence, then 
any notice required by this title to be sent by the debtor to such 
creditor shall be sent to such address and shall include such account 
number.''; and
        (2) by adding at the end the following:
    ``(e)(1) In a case under chapter 7 or 13 of this title of a debtor 
who is an individual, a creditor at any time may both file with the 
court and serve on the debtor a notice of address to be used to provide 
notice in such case to such creditor.
    ``(2) Any notice in such case required to be provided to such 
creditor by the debtor or the court later than 5 days after the court 
and the debtor receive such creditor's notice of address, shall be 
provided to such address.
    ``(f)(1) An entity may file with any bankruptcy court a notice of 
address to be used by all the bankruptcy courts or by particular 
bankruptcy courts, as so specified by such entity at the time such 
notice is filed, to provide notice to such entity in all cases under 
chapters 7 and 13 pending in the courts with respect to which such 
notice is filed, in which such entity is a creditor.
    ``(2) In any case filed under chapter 7 or 13, any notice required 
to be provided by a court with respect to which a notice is filed under 
paragraph (1), to such entity later than 30 days after the filing of 
such notice under paragraph (1) shall be provided to such address 
unless with respect to a particular case a different address is 
specified in a notice filed and served in accordance with subsection 
(e).
    ``(3) A notice filed under paragraph (1) may be withdrawn by such 
entity.
    ``(g)(1) Notice provided to a creditor by the debtor or the court 
other than in accordance with this section (excluding this subsection) 
shall not be effective notice until such notice is brought to the 
attention of such creditor. If such creditor designates a person or an 
organizational subdivision of such creditor to be responsible for 
receiving notices under this title and establishes reasonable 
procedures so that such notices receivable by such creditor are to be 
delivered to such person or such subdivision, then a notice provided to 
such creditor other than in accordance with this section (excluding 
this subsection) shall not be considered to have been brought to the 
attention of such creditor until such notice is received by such person 
or such subdivision.
    ``(2) A monetary penalty may not be imposed on a creditor for a 
violation of a stay in effect under section 362(a) (including a 
monetary penalty imposed under section 362(k)) or for failure to comply 
with section 542 or 543 unless the conduct that is the basis of such 
violation or of such failure occurs after such creditor receives notice 
effective under this section of the order for relief.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by sections 106, 225, and 305, is amended--
        (1) in subsection (a), as so designated by section 106, by 
    amending paragraph (1) to read as follows:
        ``(1) file--
            ``(A) a list of creditors; and
            ``(B) unless the court orders otherwise--
                ``(i) a schedule of assets and liabilities;
                ``(ii) a schedule of current income and current 
            expenditures;
                ``(iii) a statement of the debtor's financial affairs 
            and, if section 342(b) applies, a certificate--

                    ``(I) of an attorney whose name is indicated on the 
                petition as the attorney for the debtor, or a 
                bankruptcy petition preparer signing the petition under 
                section 110(b)(1), indicating that such attorney or the 
                bankruptcy petition preparer delivered to the debtor 
                the notice required by section 342(b); or
                    ``(II) if no attorney is so indicated, and no 
                bankruptcy petition preparer signed the petition, of 
                the debtor that such notice was received and read by 
                the debtor;

                ``(iv) copies of all payment advices or other evidence 
            of payment received within 60 days before the date of the 
            filing of the petition, by the debtor from any employer of 
            the debtor;
                ``(v) a statement of the amount of monthly net income, 
            itemized to show how the amount is calculated; and
                ``(vi) a statement disclosing any reasonably 
            anticipated increase in income or expenditures over the 12-
            month period following the date of the filing of the 
            petition;''; and
        (2) by adding at the end the following:
    ``(e)(1) If the debtor in a case under chapter 7 or 13 is an 
individual and if a creditor files with the court at any time a request 
to receive a copy of the petition, schedules, and statement of 
financial affairs filed by the debtor, then the court shall make such 
petition, such schedules, and such statement available to such 
creditor.
    ``(2)(A) The debtor shall provide--
        ``(i) not later than 7 days before the date first set for the 
    first meeting of creditors, to the trustee a copy of the Federal 
    income tax return required under applicable law (or at the election 
    of the debtor, a transcript of such return) for the most recent tax 
    year ending immediately before the commencement of the case and for 
    which a Federal income tax return was filed; and
        ``(ii) at the same time the debtor complies with clause (i), a 
    copy of such return (or if elected under clause (i), such 
    transcript) to any creditor that timely requests such copy.
    ``(B) If the debtor fails to comply with clause (i) or (ii) of 
subparagraph (A), the court shall dismiss the case unless the debtor 
demonstrates that the failure to so comply is due to circumstances 
beyond the control of the debtor.
    ``(C) If a creditor requests a copy of such tax return or such 
transcript and if the debtor fails to provide a copy of such tax return 
or such transcript to such creditor at the time the debtor provides 
such tax return or such transcript to the trustee, then the court shall 
dismiss the case unless the debtor demonstrates that the failure to 
provide a copy of such tax return or such transcript is due to 
circumstances beyond the control of the debtor.
    ``(3) If a creditor in a case under chapter 13 files with the court 
at any time a request to receive a copy of the plan filed by the 
debtor, then the court shall make available to such creditor a copy of 
the plan--
        ``(A) at a reasonable cost; and
        ``(B) not later than 5 days after such request is filed.
    ``(f) At the request of the court, the United States trustee, or 
any party in interest in a case under chapter 7, 11, or 13, a debtor 
who is an individual shall file with the court--
        ``(1) at the same time filed with the taxing authority, a copy 
    of each Federal income tax return required under applicable law (or 
    at the election of the debtor, a transcript of such tax return) 
    with respect to each tax year of the debtor ending while the case 
    is pending under such chapter;
        ``(2) at the same time filed with the taxing authority, each 
    Federal income tax return required under applicable law (or at the 
    election of the debtor, a transcript of such tax return) that had 
    not been filed with such authority as of the date of the 
    commencement of the case and that was subsequently filed for any 
    tax year of the debtor ending in the 3-year period ending on the 
    date of the commencement of the case;
        ``(3) a copy of each amendment to any Federal income tax return 
    or transcript filed with the court under paragraph (1) or (2); and
        ``(4) in a case under chapter 13--
            ``(A) on the date that is either 90 days after the end of 
        such tax year or 1 year after the date of the commencement of 
        the case, whichever is later, if a plan is not confirmed before 
        such later date; and
            ``(B) annually after the plan is confirmed and until the 
        case is closed, not later than the date that is 45 days before 
        the anniversary of the confirmation of the plan;
    a statement, under penalty of perjury, of the income and 
    expenditures of the debtor during the tax year of the debtor most 
    recently concluded before such statement is filed under this 
    paragraph, and of the monthly income of the debtor, that shows how 
    income, expenditures, and monthly income are calculated.
    ``(g)(1) A statement referred to in subsection (f)(4) shall 
disclose--
        ``(A) the amount and sources of the 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 subsections (e)(2)(A) and (f) shall be 
available to the United States trustee (or the bankruptcy 
administrator, if any), the trustee, and any party in interest for 
inspection and copying, subject to the requirements of section 315(c) 
of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
    ``(h) If requested by the United States trustee or by the trustee, 
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; or
        ``(2) such other personal identifying information relating to 
    the debtor that establishes the identity of the debtor.''.
    (c)(1) Not later than 180 days after the date of the enactment of 
this Act, 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 540 days after the date of enactment of this 
Act, the Director of the Administrative Office of the United States 
Courts shall prepare and submit to the President pro tempore of the 
Senate and the Speaker of the House of Representatives a report that--
        (A) assesses the effectiveness of the procedures established 
    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.

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

    Section 521 of title 11, United States Code, as amended by sections 
106, 225, 305, and 315, is amended by adding at the end the following:
    ``(i)(1) Subject to paragraphs (2) and (4) and notwithstanding 
section 707(a), 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 date of the filing of the 
petition, the case shall be automatically dismissed effective on the 
46th day after the date of the filing of the petition.
    ``(2) Subject to paragraph (4) and 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) Subject to paragraph (4) and upon request of the debtor made 
within 45 days after the date of the filing of the petition 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.
    ``(4) Notwithstanding any other provision of this subsection, on 
the motion of the trustee filed before the expiration of the applicable 
period of time specified in paragraph (1), (2), or (3), and after 
notice and a hearing, the court may decline to dismiss the case if the 
court finds that the debtor attempted in good faith to file all the 
information required by subsection (a)(1)(B)(iv) and that the best 
interests of creditors would be served by administration of the 
case.''.

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

    Section 1324 of title 11, United States Code, is amended--
        (1) by striking ``After'' and inserting the following:
    ``(a) Except as provided in subsection (b) and after''; and
        (2) by adding at the end the following:
    ``(b) The hearing on confirmation of the plan may be held not 
earlier than 20 days and not later than 45 days after the date of the 
meeting of creditors under section 341(a), unless the court determines 
that it would be in the best interests of the creditors and the estate 
to hold such hearing at an earlier date and there is no objection to 
such earlier date.''.

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

    Title 11, United States Code, is amended--
        (1) by amending section 1322(d) to read as follows:
    ``(d)(1) If the current monthly income of the debtor and the 
debtor's spouse combined, when multiplied by 12, is not less than--
        ``(A) in the case of a debtor in a household of 1 person, the 
    median family income of the applicable State for 1 earner;
        ``(B) in the case of a debtor in a household of 2, 3, or 4 
    individuals, the highest median family income of the applicable 
    State for a family of the same number or fewer individuals; or
        ``(C) in the case of a debtor in a household exceeding 4 
    individuals, the highest median family income of the applicable 
    State for a family of 4 or fewer individuals, plus $525 per month 
    for each individual in excess of 4,
the plan may not provide for payments over a period that is longer than 
5 years.
    ``(2) If the current monthly income of the debtor and the debtor's 
spouse combined, when multiplied by 12, is less than--
        ``(A) in the case of a debtor in a household of 1 person, the 
    median family income of the applicable State for 1 earner;
        ``(B) in the case of a debtor in a household of 2, 3, or 4 
    individuals, the highest median family income of the applicable 
    State for a family of the same number or fewer individuals; or
        ``(C) in the case of a debtor in a household exceeding 4 
    individuals, the highest median family income of the applicable 
    State for a family of 4 or fewer individuals, plus $525 per month 
    for each individual in excess of 4,
the plan may not provide for payments over a period that is longer than 
3 years, unless the court, for cause, approves a longer period, but the 
court may not approve a period that is longer than 5 years.'';
        (2) in section 1325(b)(1)(B), by striking ``three-year period'' 
    and inserting ``applicable commitment period''; and
        (3) in section 1325(b), as amended by section 102, by adding at 
    the end the following:
    ``(4) For purposes of this subsection, the `applicable commitment 
period'--
        ``(A) subject to subparagraph (B), shall be--
            ``(i) 3 years; or
            ``(ii) not less than 5 years, if the current monthly income 
        of the debtor and the debtor's spouse combined, when multiplied 
        by 12, is not less than--
                ``(I) in the case of a debtor in a household of 1 
            person, the median family income of the applicable State 
            for 1 earner;
                ``(II) in the case of a debtor in a household of 2, 3, 
            or 4 individuals, the highest median family income of the 
            applicable State for a family of the same number or fewer 
            individuals; or
                ``(III) in the case of a debtor in a household 
            exceeding 4 individuals, the highest median family income 
            of the applicable State for a family of 4 or fewer 
            individuals, plus $525 per month for each individual in 
            excess of 4; and
        ``(B) may be less than 3 or 5 years, whichever is applicable 
    under subparagraph (A), but only if the plan provides for payment 
    in full of all allowed unsecured claims over a shorter period.''; 
    and
        (4) in section 1329(c), by striking ``three years'' and 
    inserting ``the applicable commitment period under section 
    1325(b)(1)(B)''.

SEC. 319. SENSE OF 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 attorneys be 
submitted only after the debtors or the debtors' attorneys have 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 a case under chapter 7, 11, 
or 13 in which the debtor is an individual, 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) such 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.''.

SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.

    (a) Property of the Estate.--
        (1) In general.--Subchapter I of chapter 11 of title 11, United 
    States Code, is amended by adding at the end the following:

``Sec. 1115. Property of the estate

    ``(a) In a case in which the debtor is an individual, property of 
the estate includes, in addition to the property specified in section 
541--
        ``(1) all property of the kind specified in section 541 that 
    the debtor acquires after the commencement of the case but before 
    the case is closed, dismissed, or converted to a case under chapter 
    7, 12, or 13, whichever occurs first; and
        ``(2) earnings from services performed by the debtor after the 
    commencement of the case but before the case is closed, dismissed, 
    or converted to a case under chapter 7, 12, or 13, whichever occurs 
    first.
    ``(b) Except as provided in section 1104 or a confirmed plan or 
order confirming a plan, the debtor shall remain in possession of all 
property of the estate.''.
        (2) Clerical amendment.--The table of sections for subchapter I 
    of chapter 11 of title 11, United States Code, is amended by adding 
    at the end the following:

``1115. Property of the estate.''.
    (b) Contents of Plan.--Section 1123(a) of title 11, United States 
Code, is amended--
        (1) in paragraph (6), by striking ``and'' at the end;
        (2) in paragraph (7), by striking the period and inserting ``; 
    and''; and
        (3) by adding at the end the following:
        ``(8) in a case in which the debtor is an individual, provide 
    for the payment to creditors under the plan of all or such portion 
    of earnings from personal services performed by the debtor after 
    the commencement of the case or other future income of the debtor 
    as is necessary for the execution of the plan.''.
    (c) Confirmation of Plan.--
        (1) Requirements relating to value of property.--Section 
    1129(a) of title 11, United States Code, as amended by section 213, 
    is amended by adding at the end the following:
        ``(15) In a case in which the debtor is an individual and in 
    which the holder of an allowed unsecured claim objects to the 
    confirmation of the plan--
            ``(A) the value, as of the effective date of the plan, of 
        the property to be distributed under the plan on account of 
        such claim is not less than the amount of such claim; or
            ``(B) the value of the property to be distributed under the 
        plan is not less than the projected disposable income of the 
        debtor (as defined in section 1325(b)(2)) to be received during 
        the 5-year period beginning on the date that the first payment 
        is due under the plan, or during the period for which the plan 
        provides payments, whichever is longer.''.
        (2) Requirement relating to interests in property.--Section 
    1129(b)(2)(B)(ii) of title 11, United States Code, is amended by 
    inserting before the period at the end the following: ``, except 
    that in a case in which the debtor is an individual, the debtor may 
    retain property included in the estate under section 1115, subject 
    to the requirements of subsection (a)(14) of this section''.
    (d) Effect of Confirmation.--Section 1141(d) of title 11, United 
States Code, is amended--
        (1) in paragraph (2), by striking ``The confirmation of a plan 
    does not discharge an individual debtor'' and inserting ``A 
    discharge under this chapter does not discharge a debtor who is an 
    individual''; and
        (2) by adding at the end the following:
    ``(5) In a case in which the debtor is an individual--
        ``(A) unless after notice and a hearing the court orders 
    otherwise for cause, confirmation of the plan does not discharge 
    any debt provided for in the plan until the court grants a 
    discharge on completion of all payments under the plan;
        ``(B) at any time after the confirmation of the plan, and after 
    notice and a hearing, the court may grant a discharge to the debtor 
    who has not completed payments under the plan if--
            ``(i) the value, as of the effective date of the plan, of 
        property actually distributed under the plan on account of each 
        allowed unsecured claim is not less than the amount that would 
        have been paid on such claim if the estate of the debtor had 
        been liquidated under chapter 7 on such date; and
            ``(ii) modification of the plan under section 1127 is not 
        practicable; and''.
    (e) Modification of Plan.--Section 1127 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(e) If the debtor is an individual, the plan may be modified at 
any time after confirmation of the plan but before the completion of 
payments under the plan, whether or not the plan has been substantially 
consummated, upon request of the debtor, the trustee, the United States 
trustee, or the holder of an allowed unsecured claim, to--
        ``(1) increase or reduce the amount of payments on claims of a 
    particular class provided for by the plan;
        ``(2) extend or reduce the time period for such payments; or
        ``(3) alter the amount of the distribution to a creditor whose 
    claim is provided for by the plan to the extent necessary to take 
    account of any payment of such claim made other than under the 
    plan.
    ``(f)(1) Sections 1121 through 1128 and the requirements of section 
1129 apply to any modification under subsection (a).
    ``(2) The plan, as modified, shall become the plan only after there 
has been disclosure under section 1125 as the court may direct, notice 
and a hearing, and such modification is approved.''.

SEC. 322. LIMITATIONS ON HOMESTEAD EXEMPTION.

    (a) Exemptions.--Section 522 of title 11, United States Code, as 
amended by sections 224 and 308, is amended by adding at the end the 
following:
    ``(p)(1) Except as provided in paragraph (2) of this subsection and 
sections 544 and 548, as a result of electing under subsection 
(b)(3)(A) to exempt property under State or local law, a debtor may not 
exempt any amount of interest that was acquired by the debtor during 
the 1215-day period preceding the date of the filing of the petition 
that exceeds in the aggregate $125,000 in value in--
        ``(A) real or personal property that the debtor or a dependent 
    of the debtor uses as a residence;
        ``(B) a cooperative that owns property that the debtor or a 
    dependent of the debtor uses as a residence;
        ``(C) a burial plot for the debtor or a dependent of the 
    debtor; or
        ``(D) real or personal property that the debtor or dependent of 
    the debtor claims as a homestead.
    ``(2)(A) The limitation under paragraph (1) shall not apply to an 
exemption claimed under subsection (b)(3)(A) by a family farmer for the 
principal residence of such farmer.
    ``(B) For purposes of paragraph (1), any amount of such interest 
does not include any interest transferred from a debtor's previous 
principal residence (which was acquired prior to the beginning of such 
1215-day period) into the debtor's current principal residence, if the 
debtor's previous and current residences are located in the same State.
    ``(q)(1) As a result of electing under subsection (b)(3)(A) to 
exempt property under State or local law, a debtor may not exempt any 
amount of an interest in property described in subparagraphs (A), (B), 
(C), and (D) of subsection (p)(1) which exceeds in the aggregate 
$125,000 if--
        ``(A) the court determines, after notice and a hearing, that 
    the debtor has been convicted of a felony (as defined in section 
    3156 of title 18), which under the circumstances, demonstrates that 
    the filing of the case was an abuse of the provisions of this 
    title; or
        ``(B) the debtor owes a debt arising from--
            ``(i) any violation of the Federal securities laws (as 
        defined in section 3(a)(47) of the Securities Exchange Act of 
        1934), any State securities laws, or any regulation or order 
        issued under Federal securities laws or State securities laws;
            ``(ii) fraud, deceit, or manipulation in a fiduciary 
        capacity or in connection with the purchase or sale of any 
        security registered under section 12 or 15(d) of the Securities 
        Exchange Act of 1934 or under section 6 of the Securities Act 
        of 1933;
            ``(iii) any civil remedy under section 1964 of title 18; or
            ``(iv) any criminal act, intentional tort, or willful or 
        reckless misconduct that caused serious physical injury or 
        death to another individual in the preceding 5 years.
    ``(2) Paragraph (1) shall not apply to the extent the amount of an 
interest in property described in subparagraphs (A), (B), (C), and (D) 
of subsection (p)(1) is reasonably necessary for the support of the 
debtor and any dependent of the debtor.''.
    (b) Adjustment of Dollar Amounts.--Paragraphs (1) and (2) of 
section 104(b) of title 11, United States Code, as amended by section 
224, are amended by inserting ``522(p), 522(q),'' after ``522(n),''.

SEC. 323. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICIPANT CONTRIBUTIONS AND 
              OTHER PROPERTY FROM THE ESTATE.

    Section 541(b) of title 11, United States Code, as amended by 
section 225, is amended by adding after paragraph (6), as added by 
section 225(a)(1)(C), the following:
        ``(7) any amount--
            ``(A) withheld by an employer from the wages of employees 
        for payment as contributions--
                ``(i) to--

                    ``(I) an employee benefit plan that is subject to 
                title I of the Employee Retirement Income Security Act 
                of 1974 or under an employee benefit plan which is a 
                governmental plan under section 414(d) of the Internal 
                Revenue Code of 1986;
                    ``(II) a deferred compensation plan under section 
                457 of the Internal Revenue Code of 1986; or
                    ``(III) a tax-deferred annuity under section 403(b) 
                of the Internal Revenue Code of 1986;

            except that such amount under this subparagraph shall not 
            constitute disposable income as defined in section 
            1325(b)(2); or
                ``(ii) to a health insurance plan regulated by State 
            law whether or not subject to such title; or
            ``(B) received by an employer from employees for payment as 
        contributions--
                ``(i) to--

                    ``(I) an employee benefit plan that is subject to 
                title I of the Employee Retirement Income Security Act 
                of 1974 or under an employee benefit plan which is a 
                governmental plan under section 414(d) of the Internal 
                Revenue Code of 1986;
                    ``(II) a deferred compensation plan under section 
                457 of the Internal Revenue Code of 1986; or
                    ``(III) a tax-deferred annuity under section 403(b) 
                of the Internal Revenue Code of 1986;

            except that such amount under this subparagraph shall not 
            constitute disposable income, as defined in section 
            1325(b)(2); or
                ``(ii) to a health insurance plan regulated by State 
            law whether or not subject to such title;''.

SEC. 324. EXCLUSIVE JURISDICTION IN MATTERS INVOLVING BANKRUPTCY 
              PROFESSIONALS.

    (a) In General.--Section 1334 of title 28, United States Code, is 
amended--
        (1) in subsection (b), by striking ``Notwithstanding'' and 
    inserting ``Except as provided in subsection (e)(2), and 
    notwithstanding''; and
        (2) by striking subsection (e) and inserting the following:
    ``(e) The district court in which a case under title 11 is 
commenced or is pending shall have exclusive jurisdiction--
        ``(1) of all the property, wherever located, of the debtor as 
    of the commencement of such case, and of property of the estate; 
    and
        ``(2) over all claims or causes of action that involve 
    construction of section 327 of title 11, United States Code, or 
    rules relating to disclosure requirements under section 327.''.
    (b) Applicability.--This section shall only apply to cases filed 
after the date of enactment of this Act.

SEC. 325. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.

    (a) Actions Under Chapter 7, 11, or 13 of Title 11, United States 
Code.--Section 1930(a) of title 28, United States Code, is amended--
        (1) by striking paragraph (1) and inserting the following:
        ``(1) For a case commenced under--
            ``(A) chapter 7 of title 11, $200; and
            ``(B) chapter 13 of title 11, $150.''; and
        (2) in paragraph (3), by striking ``$800'' and inserting 
    ``$1000''.
    (b) United States Trustee System Fund.--Section 589a(b) of title 
28, United States Code, is amended--
        (1) by striking paragraph (1) and inserting the following:
        ``(1)(A) 40.63 percent of the fees collected under section 
    1930(a)(1)(A) of this title; and
        ``(B) 70.00 percent of the fees collected under section 
    1930(a)(1)(B);'';
        (2) in paragraph (2), by striking ``one-half'' and inserting 
    ``75 percent''; and
        (3) in paragraph (4), by striking ``one-half'' and inserting 
    ``100 percent''.
    (c) Collection and Deposit of Miscellaneous Bankruptcy Fees.--
Section 406(b) of the Judiciary Appropriations Act, 1990 (28 U.S.C. 
1931 note) is amended by striking ``pursuant to 28 U.S.C. section 
1930(b)'' and all that follows through ``28 U.S.C. section 1931'' and 
inserting ``under section 1930(b) of title 28, United States Code, 
31.25 of the fees collected under section 1930(a)(1)(A) of that title, 
30.00 percent of the fees collected under section 1930(a)(1)(B) of that 
title, and 25 percent of the fees collected under section 1930(a)(3) of 
that title shall be deposited as offsetting receipts to the fund 
established under section 1931 of that title''.
    (d) Sunset Date.--The amendments made by subsections (b) and (c) 
shall be effective during the 2-year period beginning on the date of 
enactment of this Act.
    (e) Use of Increased Receipts.--
        (1) Judges' salaries and benefits.--The amount of fees 
    collected under paragraphs (1) and (3) of section 1930(a) of title 
    28, United States Code, during the 5-year period beginning on the 
    date of enactment of this Act, that is greater than the amount that 
    would have been collected if the amendments made by subsection (a) 
    had not taken effect shall be used, to the extent necessary, to pay 
    the salaries and benefits of the judges appointed pursuant to 
    section 1223 of this Act.
        (2) Remainder.--Any amount described in paragraph (1), which is 
    not used for the purpose described in paragraph (1), shall be 
    deposited into the Treasury of the United States to the extent 
    necessary to offset the decrease in governmental receipts resulting 
    from the amendments made by subsections (b) and (c).

SEC. 326. SHARING OF COMPENSATION.

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

SEC. 327. FAIR VALUATION OF COLLATERAL.

    Section 506(a) of title 11, United States Code, is amended by--
        (1) inserting ``(1)'' after ``(a)''; and
        (2) by adding at the end the following:
    ``(2) If the debtor is an individual in a case under chapter 7 or 
13, such value with respect to personal property securing an allowed 
claim shall be determined based on the replacement value of such 
property as of the date of the filing of the petition without deduction 
for costs of sale or marketing. With respect to property acquired for 
personal, family, or household purposes, replacement value shall mean 
the price a retail merchant would charge for property of that kind 
considering the age and condition of the property at the time value is 
determined.''.

SEC. 328. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

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

SEC. 329. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

    Section 503(b)(1)(A) of title 11, United States Code, is amended to 
read as follows:
    ``(A) the actual, necessary costs and expenses of preserving the 
    estate including--
            ``(i) wages, salaries, and commissions for services 
        rendered after the commencement of the case; and
            ``(ii) wages and benefits awarded pursuant to a judicial 
        proceeding or a proceeding of the National Labor Relations 
        Board as back pay attributable to any period of time occurring 
        after commencement of the case under this title, as a result of 
        a violation of Federal or State law by the debtor, without 
        regard to the time of the occurrence of unlawful conduct on 
        which such award is based or to whether any services were 
        rendered, if the court determines that payment of wages and 
        benefits by reason of the operation of this clause will not 
        substantially increase the probability of layoff or termination 
        of current employees, or of nonpayment of domestic support 
        obligations, during the case under this title;''.

SEC. 330. DELAY OF DISCHARGE DURING PENDENCY OF CERTAIN PROCEEDINGS.

    (a) Chapter 7.--Section 727(a) of title 11, United States Code, as 
amended by section 106, is amended--
        (1) in paragraph (10), by striking ``or'' at the end;
        (2) in paragraph (11) by striking the period at the end and 
    inserting ``; or''; and
        (3) by inserting after paragraph (11) the following:
        ``(12) the court after notice and a hearing held not more than 
    10 days before the date of the entry of the order granting the 
    discharge finds that there is reasonable cause to believe that--
            ``(A) section 522(q)(1) may be applicable to the debtor; 
        and
            ``(B) there is pending any proceeding in which the debtor 
        may be found guilty of a felony of the kind described in 
        section 522(q)(1)(A) or liable for a debt of the kind described 
        in section 522(q)(1)(B).''.
    (b) Chapter 11.--Section 1141(d) of title 11, United States Code, 
as amended by section 321, is amended by adding at the end the 
following:
        ``(C) unless after notice and a hearing held not more than 10 
    days before the date of the entry of the order granting the 
    discharge, the court finds that there is no reasonable cause to 
    believe that--
            ``(i) section 522(q)(1) may be applicable to the debtor; 
        and
            ``(ii) there is pending any proceeding in which the debtor 
        may be found guilty of a felony of the kind described in 
        section 522(q)(1)(A) or liable for a debt of the kind described 
        in section 522(q)(1)(B).''.
    (c) Chapter 12.--Section 1228 of title 11, United States Code, is 
amended--
        (1) in subsection (a) by striking ``As'' and inserting 
    ``Subject to subsection (d), as'',
        (2) in subsection (b) by striking ``At'' and inserting 
    ``Subject to subsection (d), at'', and
        (3) by adding at the end the following:
    ``(f) The court may not grant a discharge under this chapter unless 
the court after notice and a hearing held not more than 10 days before 
the date of the entry of the order granting the discharge finds that 
there is no reasonable cause to believe that--
        ``(1) section 522(q)(1) may be applicable to the debtor; and
        ``(2) there is pending any proceeding in which the debtor may 
    be found guilty of a felony of the kind described in section 
    522(q)(1)(A) or liable for a debt of the kind described in section 
    522(q)(1)(B).''.
    (d) Chapter 13.--Section 1328 of title 11, United States Code, as 
amended by section 106, is amended--
        (1) in subsection (a) by striking ``As'' and inserting 
    ``Subject to subsection (d), as'',
        (2) in subsection (b) by striking ``At'' and inserting 
    ``Subject to subsection (d), at'', and
        (3) by adding at the end the following:
    ``(h) The court may not grant a discharge under this chapter unless 
the court after notice and a hearing held not more than 10 days before 
the date of the entry of the order granting the discharge finds that 
there is no reasonable cause to believe that--
        ``(1) section 522(q)(1) may be applicable to the debtor; and
        ``(2) there is pending any proceeding in which the debtor may 
    be found guilty of a felony of the kind described in section 
    522(q)(1)(A) or liable for a debt of the kind described in section 
    522(q)(1)(B).''.

SEC. 331. LIMITATION ON RETENTION BONUSES, SEVERANCE PAY, AND CERTAIN 
              OTHER PAYMENTS.

    Section 503 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(c) Notwithstanding subsection (b), there shall neither be 
allowed, nor paid--
        ``(1) a transfer made to, or an obligation incurred for the 
    benefit of, an insider of the debtor for the purpose of inducing 
    such person to remain with the debtor's business, absent a finding 
    by the court based on evidence in the record that--
            ``(A) the transfer or obligation is essential to retention 
        of the person because the individual has a bona fide job offer 
        from another business at the same or greater rate of 
        compensation;
            ``(B) the services provided by the person are essential to 
        the survival of the business; and
            ``(C) either--
                ``(i) the amount of the transfer made to, or obligation 
            incurred for the benefit of, the person is not greater than 
            an amount equal to 10 times the amount of the mean transfer 
            or obligation of a similar kind given to nonmanagement 
            employees for any purpose during the calendar year in which 
            the transfer is made or the obligation is incurred; or
                ``(ii) if no such similar transfers were made to, or 
            obligations were incurred for the benefit of, such 
            nonmanagement employees during such calendar year, the 
            amount of the transfer or obligation is not greater than an 
            amount equal to 25 percent of the amount of any similar 
            transfer or obligation made to or incurred for the benefit 
            of such insider for any purpose during the calendar year 
            before the year in which such transfer is made or 
            obligation is incurred;
        ``(2) a severance payment to an insider of the debtor, unless--
            ``(A) the payment is part of a program that is generally 
        applicable to all full-time employees; and
            ``(B) the amount of the payment is not greater than 10 
        times the amount of the mean severance pay given to 
        nonmanagement employees during the calendar year in which the 
        payment is made; or
        ``(3) other transfers or obligations that are outside the 
    ordinary course of business and not justified by the facts and 
    circumstances of the case, including transfers made to, or 
    obligations incurred for the benefit of, officers, managers, or 
    consultants hired after the date of the filing of the petition.''.

SEC. 332. FRAUDULENT INVOLUNTARY BANKRUPTCY.

    (a) Short Title.--This section may be cited as the ``Involuntary 
Bankruptcy Improvement Act of 2005''.
    (b) Involuntary Cases.--Section 303 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(l)(1) If--
        ``(A) the petition under this section is false or contains any 
    materially false, fictitious, or fraudulent statement;
        ``(B) the debtor is an individual; and
        ``(C) the court dismisses such petition,
the court, upon the motion of the debtor, shall seal all the records of 
the court relating to such petition, and all references to such 
petition.
    ``(2) If the debtor is an individual and the court dismisses a 
petition under this section, the court may enter an order prohibiting 
all consumer reporting agencies (as defined in section 603(f) of the 
Fair Credit Reporting Act (15 U.S.C. 1681a(f))) from making any 
consumer report (as defined in section 603(d) of that Act) that 
contains any information relating to such petition or to the case 
commenced by the filing of such petition.
    ``(3) Upon the expiration of the statute of limitations described 
in section 3282 of title 18, for a violation of section 152 or 157 of 
such title, the court, upon the motion of the debtor and for good 
cause, may expunge any records relating to a petition filed under this 
section.''.
    (c) Bankruptcy Fraud.--Section 157 of title 18, United States Code, 
is amended by inserting ``, including a fraudulent involuntary 
bankruptcy petition under section 303 of such title'' after ``title 
11''.

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS
           Subtitle A--General Business Bankruptcy Provisions

SEC. 401. 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 or a national securities exchange registered with the 
    Securities and Exchange Commission under section 6 of the 
    Securities Exchange Act of 1934;''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by sections 224, 303, and 311, is amended by inserting 
after paragraph (24) the following:
        ``(25) 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 such 
        securities self regulatory organization to enforce such 
        organization's regulatory power; or
            ``(C) any act taken by such securities self regulatory 
        organization to delist, delete, or refuse to permit quotation 
        of any stock that does not meet applicable regulatory 
        requirements;''.

SEC. 402. 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. 403. 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. 404. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

    (a) In General.--Section 365(d)(4) of title 11, United States Code, 
is amended to read as follows:
    ``(4)(A) Subject to subparagraph (B), 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)(i) The court may extend the period determined under 
subparagraph (A), prior to the expiration of the 120-day period, for 90 
days on the motion of the trustee or lessor for cause.
    ``(ii) If the court grants an extension under clause (i), the court 
may grant a subsequent extension only upon prior written consent of the 
lessor in each instance.''.
    (b) Exception.--Section 365(f)(1) of title 11, United States Code, 
is amended by striking ``subsection'' the first place it appears and 
inserting ``subsections (b) and''.

SEC. 405. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

    (a) Appointment.--Section 1102(a) of title 11, United States Code, 
is amended by adding at the end the following:
    ``(4) On request of a party in interest and after notice and a 
hearing, the court may order the United States trustee to change 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. The court may 
order the United States trustee to increase the number of members of a 
committee to include a creditor that is a small business concern (as 
described in section 3(a)(1) of the Small Business Act), if the court 
determines that the creditor holds claims (of the kind represented by 
the committee) the aggregate amount of which, in comparison to the 
annual gross revenue of that creditor, is disproportionately large.''.
    (b) Information.--Section 1102(b) of title 11, United States Code, 
is amended by adding at the end the following:
    ``(3) A committee appointed under subsection (a) shall--
        ``(A) provide access to information for creditors who--
            ``(i) hold claims of the kind represented by that 
        committee; and
            ``(ii) are not appointed to the committee;
        ``(B) solicit and receive comments from the creditors described 
    in subparagraph (A); and
        ``(C) be subject to a court order that compels any additional 
    report or disclosure to be made to the creditors described in 
    subparagraph (A).''.

SEC. 406. 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 (g) (as added by 
    section 222(a) of Public Law 103-394) as subsection (h);
        (2) in subsection (h), as so redesignated, by inserting ``and 
    subject to the prior rights of holders of security interests in 
    such goods or the proceeds of such goods'' after ``consent of a 
    creditor''; and
        (3) by adding at the end the following:
    ``(i)(1) Notwithstanding paragraphs (2) and (3) of section 545, 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 State statute applicable to such lien that 
is similar to section 7-209 of the Uniform Commercial Code, as in 
effect on the date of enactment of the Bankruptcy Abuse Prevention and 
Consumer Protection Act of 2005, or any successor to such section 7-
209.''.

SEC. 407. AMENDMENTS TO SECTION 330(A) OF TITLE 11, UNITED STATES CODE.

    Section 330(a) of title 11, United States Code, is amended--
        (1) in paragraph (3)--
            (A) by striking ``(A) In'' and inserting ``In''; and
            (B) by inserting ``to an examiner, trustee under chapter 
        11, or professional person'' after ``awarded''; and
        (2) by adding at the end the following:
    ``(7) In determining the amount of reasonable compensation to be 
awarded to a trustee, the court shall treat such compensation as a 
commission, based on section 326.''.

SEC. 408. 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. 409. 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 (8), by striking the period at the end and 
    inserting ``; or''; and
        (3) 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. 410. VENUE OF CERTAIN PROCEEDINGS.

    Section 1409(b) of title 28, United States Code, is amended by 
inserting ``, or a debt (excluding a consumer debt) against a 
noninsider of less than $10,000,'' after ``$5,000''. Section 1409(b) of 
title 28, United States Code, is further amended by striking ``$5,000'' 
and inserting ``$15,000''.

SEC. 411. 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 
    (2), 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. 412. 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 
    ``such period,'' and inserting ``or a lot in a homeowners 
    association, for as long as the debtor or the trustee has a legal, 
    equitable, or possessory ownership interest in such unit, such 
    corporation, or such lot,''.

SEC. 413. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.

    Section 341(c) of title 11, United States Code, is amended by 
inserting at the end the following: ``Notwithstanding any local court 
rule, provision of a State constitution, any otherwise applicable 
nonbankruptcy law, or any 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. 414. 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. 415. 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; and''.

SEC. 416. 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) The court shall resolve any dispute arising out of an 
election described in subparagraph (A).''.

SEC. 417. UTILITY SERVICE.

    Section 366 of title 11, United States Code, is amended--
        (1) in subsection (a), by striking ``subsection (b)'' and 
    inserting ``subsections (b) and (c)''; and
        (2) by adding at the end the following:
    ``(c)(1)(A) For purposes of this subsection, the term `assurance of 
payment' means--
        ``(i) a cash deposit;
        ``(ii) a letter of credit;
        ``(iii) a certificate of deposit;
        ``(iv) a surety bond;
        ``(v) a prepayment of utility consumption; or
        ``(vi) another form of security that is mutually agreed on 
    between the utility and the debtor or the trustee.
    ``(B) For purposes of this subsection an administrative expense 
priority shall not constitute an assurance of payment.
    ``(2) Subject to paragraphs (3) and (4), with respect to a case 
filed under chapter 11, a utility referred to in subsection (a) may 
alter, refuse, or discontinue utility service, if during the 30-day 
period beginning on the date of the filing of the petition, the utility 
does not receive from the debtor or the trustee adequate assurance of 
payment for utility service that is satisfactory to the utility.
    ``(3)(A) On request of a party in interest and after notice and a 
hearing, the court may order modification of the amount of an assurance 
of payment under paragraph (2).
    ``(B) In making a determination under this paragraph whether an 
assurance of payment is adequate, the court may not consider--
        ``(i) the absence of security before the date of the filing of 
    the petition;
        ``(ii) the payment by the debtor of charges for utility service 
    in a timely manner before the date of the filing of the petition; 
    or
        ``(iii) the availability of an administrative expense priority.
    ``(4) Notwithstanding any other provision of law, with respect to a 
case subject to this subsection, a utility may recover or set off 
against a security deposit provided to the utility by the debtor before 
the date of the filing of the petition without notice or order of the 
court.''.

SEC. 418. BANKRUPTCY FEES.

    Section 1930 of title 28, United States Code, is amended--
        (1) in subsection (a), by striking ``Notwithstanding section 
    1915 of this title, the'' and inserting ``The''; and
        (2) by adding at the end the following:
    ``(f)(1) Under the procedures prescribed by the Judicial Conference 
of the United States, the district court or the bankruptcy court may 
waive the filing fee in a case under chapter 7 of title 11 for an 
individual if the court determines that such individual has income less 
than 150 percent of the income official poverty line (as defined by the 
Office of Management and Budget, and revised annually in accordance 
with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) 
applicable to a family of the size involved and is unable to pay that 
fee in installments. For purposes of this paragraph, the term `filing 
fee' means the filing fee required by subsection (a), or any other fee 
prescribed by the Judicial Conference under subsections (b) and (c) 
that is payable to the clerk upon the commencement of a case under 
chapter 7.
    ``(2) The district court or the bankruptcy court may waive for such 
debtors other fees prescribed under subsections (b) and (c).
    ``(3) This subsection does not restrict the district court or the 
bankruptcy court from waiving, in accordance with Judicial Conference 
policy, fees prescribed under this section for other debtors and 
creditors.''.

SEC. 419. MORE COMPLETE INFORMATION REGARDING ASSETS OF THE ESTATE.

    (a) In General.--
        (1) Disclosure.--The Judicial Conference of the United States, 
    in accordance with section 2075 of title 28 of the United States 
    Code and after consideration of the views of the Director of the 
    Executive Office for United States Trustees, shall propose amended 
    Federal Rules of Bankruptcy Procedure and in accordance with rule 
    9009 of the Federal Rules of Bankruptcy Procedure shall prescribe 
    official bankruptcy forms directing debtors under chapter 11 of 
    title 11 of United States Code, to disclose the information 
    described in paragraph (2) by filing and serving periodic financial 
    and other reports designed to provide such information.
        (2) Information.--The information referred to in paragraph (1) 
    is the value, operations, and profitability of any closely held 
    corporation, partnership, or of any other entity in which the 
    debtor holds a substantial or controlling interest.
    (b) Purpose.--The purpose of the rules and reports under subsection 
(a) shall be to assist parties in interest taking steps to ensure that 
the debtor's interest in any entity referred to in subsection (a)(2) is 
used for the payment of allowed claims against debtor.

            Subtitle B--Small Business Bankruptcy Provisions

SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

    Section 1125 of title 11, United States Code, is amended--
        (1) in subsection (a)(1), by inserting before the semicolon 
    ``and 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''; and
        (2) by striking subsection (f), and inserting the following:
    ``(f) Notwithstanding subsection (b), in a small business case--
        ``(1) the court may determine that the plan itself provides 
    adequate information and that a separate disclosure statement is 
    not necessary;
        ``(2) the court may approve a disclosure statement submitted on 
    standard forms approved by the court or adopted under section 2075 
    of title 28; and
        ``(3)(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 25 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. 432. DEFINITIONS.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended by striking paragraph (51C) and inserting the following:
        ``(51C) `small business case' means a case filed under chapter 
    11 of this title in which the debtor is a small business debtor;
        ``(51D) `small business debtor'--
            ``(A) subject to subparagraph (B), means a person engaged 
        in commercial or business activities (including any affiliate 
        of such person that is also a debtor under this title and 
        excluding a person whose primary activity is the business of 
        owning or operating real property or activities incidental 
        thereto) that has aggregate noncontingent liquidated secured 
        and unsecured debts as of the date of the petition or the date 
        of the order for relief in an amount not more than $2,000,000 
        (excluding debts owed to 1 or more affiliates or insiders) for 
        a case in which the United States trustee has not appointed 
        under section 1102(a)(1) a committee of unsecured creditors or 
        where the court has determined that the committee of unsecured 
        creditors is not 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 $2,000,000 (excluding 
        debt owed to 1 or more affiliates or insiders);''.
    (b) Conforming Amendment.--Section 1102(a)(3) of title 11, United 
States Code, is amended by inserting ``debtor'' after ``small 
business''.
    (c) Adjustment of Dollar Amounts.--Section 104(b) of title 11, 
United States Code, as amended by section 226, is amended by inserting 
``101(51D),'' after ``101(3),'' each place it appears.

SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

    Within a reasonable period of time after the date of enactment of 
this Act, the Judicial Conference of the United States shall prescribe 
in accordance with rule 9009 of the Federal Rules of Bankruptcy 
Procedure official 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. 434. 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

    ``(a) 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.
    ``(b) A small business debtor shall file periodic financial and 
other reports containing information including--
        ``(1) the debtor's profitability;
        ``(2) reasonable approximations of the debtor's projected cash 
    receipts and cash disbursements over a reasonable period;
        ``(3) comparisons of actual cash receipts and disbursements 
    with projections in prior reports;
        ``(4)(A) 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 other required 
        government filings and paying taxes and other administrative 
        expenses when due;
        ``(B) if the debtor is not in compliance with the requirements 
    referred to in subparagraph (A)(i) or filing tax returns and other 
    required government filings and making the payments referred to in 
    subparagraph (A)(ii), what the failures are and how, at what cost, 
    and when the debtor intends to remedy such failures; and
        ``(C) 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. 435. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.

    (a) Proposal of Rules and Forms.--The Judicial Conference of the 
United States shall propose in accordance with section 2073 of title 28 
of the United States Code amended Federal Rules of Bankruptcy 
Procedure, and shall prescribe in accordance with rule 9009 of the 
Federal Rules of Bankruptcy Procedure official bankruptcy forms, 
directing 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 expenses 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) a 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 
    such debtor to understand such debtor's financial condition and 
    plan the such debtor's future.

SEC. 436. DUTIES IN SMALL BUSINESS CASES.

    (a) Duties in Chapter 11 Cases.--Subchapter I of chapter 11 of 
title 11, United States Code, as amended by section 321, is amended by 
adding at the end the following:

``Sec. 1116. 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 not later than 7 days after the date of the order for 
    relief--
            ``(A) its most recent balance sheet, statement of 
        operations, cash-flow statement, and 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, after notice and a hearing, waives that 
    requirement 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 and other required government 
    filings; and
        ``(B) subject to section 363(c)(2), timely pay all taxes 
    entitled to administrative expense priority except those being 
    contested by appropriate proceedings being diligently prosecuted; 
    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) Clerical Amendment.--The table of sections for chapter 11 of 
title 11, United States Code, as amended by section 321, is amended by 
inserting after the item relating to section 1115 the following:

``1116. Duties of trustee or debtor in possession in small business 
          cases.''.

SEC. 437. 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 180 days 
    after the date of the order for relief, unless that period is--
            ``(A) extended as provided by this subsection, after notice 
        and a hearing; or
            ``(B) the court, for cause, orders otherwise;
        ``(2) the plan and a disclosure statement (if any) shall be 
    filed not later than 300 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. 438. 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 court shall confirm a plan that 
complies with the applicable provisions of this title and that is filed 
in accordance with section 1121(e) not later than 45 days after the 
plan is filed unless the time for confirmation is extended in 
accordance with section 1121(e)(3).''.

SEC. 439. 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; and'';
        (2) in paragraph (5), by striking ``and'' at the end;
        (3) in paragraph (6), by striking the period at the end and 
    inserting a semicolon; and
        (4) by adding at the end the following:
        ``(7) in each of such small business cases--
            ``(A) conduct an initial debtor interview as soon as 
        practicable after the date of the 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, 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. 440. SCHEDULING CONFERENCES.

    Section 105(d) of title 11, United States Code, is amended--
        (1) in the matter preceding paragraph (1), by striking ``, 
    may''; and
        (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''.

SEC. 441. SERIAL FILER PROVISIONS.

    Section 362 of title 11, United States Code, as amended by sections 
106, 305, and 311, is amended--
        (1) in subsection (k), as so redesignated by section 305--
            (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) of this subsection against such entity 
shall be limited to actual damages.''; and
        (2) by adding at the end the following:
    ``(n)(1) Except as provided in paragraph (2), subsection (a) does 
not apply in a case 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 acquired substantially all of the 
    assets or business of a small business debtor described in 
    subparagraph (A), (B), or (C), unless such entity establishes by a 
    preponderance of the evidence that such entity acquired 
    substantially all of the assets or business of such small business 
    debtor in good faith and not for the purpose of evading this 
    paragraph.
    ``(2) Paragraph (1) does not apply--
        ``(A) to an involuntary case involving no collusion by the 
    debtor with creditors; or
        ``(B) to the filing of a petition if--
            ``(i) the debtor proves by a preponderance of the evidence 
        that the filing of the petition resulted from circumstances 
        beyond the control of the debtor not foreseeable at the time 
        the case then pending was filed; and
            ``(ii) 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. 442. 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) of this subsection, 
subsection (c) of this section, and section 1104(a)(3), on request of a 
party in interest, and after notice and a hearing, absent unusual 
circumstances specifically identified by the court that establish that 
the requested conversion or dismissal is not in the best interests of 
creditors and the estate, 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 interests of creditors and the estate, if the 
movant establishes cause.
    ``(2) The relief provided in paragraph (1) shall not be granted 
absent unusual circumstances specifically identified by the court that 
establish that such relief is not in the best interests of creditors 
and the estate, if the debtor or another party in interest objects and 
establishes that--
        ``(A) there is a reasonable likelihood that a plan will be 
    confirmed within the timeframes established in sections 1121(e) and 
    1129(e) of this title, or if such sections do not apply, within a 
    reasonable period of time; and
        ``(B) the grounds for granting such relief include an act or 
    omission of the debtor other than under paragraph (4)(A)--
            ``(i) for which there exists a reasonable justification for 
        the act or omission; and
            ``(ii) that will be cured within a reasonable period of 
        time fixed by the court.
    ``(3) The court shall commence the hearing on a motion under this 
subsection not later than 30 days after filing of the motion, and shall 
decide the motion not later than 15 days after commencement of such 
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, the term `cause' includes--
        ``(A) substantial or continuing loss to or diminution of the 
    estate and the absence of a reasonable likelihood of 
    rehabilitation;
        ``(B) gross mismanagement of the estate;
        ``(C) failure to maintain appropriate insurance that poses a 
    risk to the estate or to the public;
        ``(D) unauthorized use of cash collateral substantially harmful 
    to 1 or more creditors;
        ``(E) failure to comply with an order of the court;
        ``(F) unexcused failure to satisfy timely 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 without good cause shown by 
    the debtor;
        ``(H) failure timely to provide information or attend meetings 
    reasonably requested by the United States trustee (or the 
    bankruptcy administrator, if any);
        ``(I) failure timely to pay taxes owed after the date of the 
    order for relief or to file tax returns due after the date of 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;
        ``(O) termination of a confirmed plan by reason of the 
    occurrence of a condition specified in the plan; and
        ``(P) failure of the debtor to pay any domestic support 
    obligation that first becomes payable after the date of the filing 
    of the petition.''.
    (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 or an examiner is in the best interests of creditors and 
    the estate.''.

SEC. 443. STUDY OF OPERATION OF TITLE 11, UNITED STATES CODE, WITH 
              RESPECT TO SMALL BUSINESSES.

    Not later than 2 years after the date of enactment of this Act, the 
Administrator of the Small Business Administration, in consultation 
with the Attorney General, the Director of the Executive Office for 
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. 444. 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, on, or after the date of 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''.

SEC. 445. PRIORITY FOR ADMINISTRATIVE EXPENSES.

    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 a semicolon; and
        (3) by adding at the end the following:
        ``(7) with respect to a nonresidential real property lease 
    previously assumed under section 365, and subsequently rejected, a 
    sum equal to all monetary obligations due, excluding those arising 
    from or relating to a failure to operate or a penalty provision, 
    for the period of 2 years following the later of the rejection date 
    or the date of actual turnover of the premises, without reduction 
    or setoff for any reason whatsoever except for sums actually 
    received or to be received from an entity other than the debtor, 
    and the claim for remaining sums due for the balance of the term of 
    the lease shall be a claim under section 502(b)(6);''.

SEC. 446. DUTIES WITH RESPECT TO A DEBTOR WHO IS A PLAN ADMINISTRATOR 
              OF AN EMPLOYEE BENEFIT PLAN.

    (a) In General.--Section 521(a) of title 11, United States Code, as 
amended by sections 106 and 304, 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 after paragraph (6) the following:
        ``(7) unless a trustee is serving in the case, continue to 
    perform the obligations required of the administrator (as defined 
    in section 3 of the Employee Retirement Income Security Act of 
    1974) of an employee benefit plan if at the time of the 
    commencement of the case the debtor (or any entity designated by 
    the debtor) served as such administrator.''.
    (b) Duties of Trustees.--Section 704(a) of title 11, United States 
Code, as amended by sections 102 and 219, is amended--
        (1) in paragraph (10), by striking ``and'' at the end; and
        (2) by adding at the end the following:
        ``(11) if, at the time of the commencement of the case, the 
    debtor (or any entity designated by the debtor) served as the 
    administrator (as defined in section 3 of the Employee Retirement 
    Income Security Act of 1974) of an employee benefit plan, continue 
    to perform the obligations required of the administrator; and''.
    (c) Conforming Amendment.--Section 1106(a)(1) of title 11, United 
States Code, is amended to read as follows:
        ``(1) perform the duties of the trustee, as specified in 
    paragraphs (2), (5), (7), (8), (9), (10), and (11) of section 
    704;''.

SEC. 447. APPOINTMENT OF COMMITTEE OF RETIRED EMPLOYEES.

    Section 1114(d) of title 11, United States Code, is amended--
        (1) by striking ``appoint'' and inserting ``order the 
    appointment of'', and
        (2) by adding at the end the following: ``The United States 
    trustee shall appoint any such committee.''.

                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(a) of title 11, United States Code, is amended--
        (1) by inserting ``555, 556,'' after ``553,''; and
        (2) by inserting ``559, 560, 561, 562,'' after ``557,''.

                       TITLE VI--BANKRUPTCY DATA

SEC. 601. IMPROVED BANKRUPTCY STATISTICS.

    (a) In General.--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 the district court, or the clerk of the 
bankruptcy court if one is certified pursuant to section 156(b) of this 
title, shall collect statistics regarding debtors who are individuals 
with primarily consumer debts seeking relief under chapters 7, 11, and 
13 of title 11. Those statistics shall be in a standardized format 
prescribed by the Director of the Administrative Office of the United 
States Courts (referred to in this section as the `Director').
    ``(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 July 1, 2008, 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 pursuant 
        to section 2075 of this title and filed by debtors;
            ``(B) the current monthly income, average income, and 
        average expenses of debtors as reported on the schedules and 
        statements that each such debtor files under sections 521 and 
        1322 of title 11;
            ``(C) the aggregate amount of debt discharged in cases 
        filed during 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 date of the 
        filing of the petition and the closing of the case for cases 
        closed during the reporting period;
            ``(E) for cases closed during the reporting period--
                ``(i) the number of cases in which a reaffirmation 
            agreement was filed; and
                ``(ii)(I) the total number of reaffirmation agreements 
            filed;
                ``(II) of those cases in which a reaffirmation 
            agreement was filed, the number of cases in which the 
            debtor was not represented by an attorney; and
                ``(III) of those cases in which a reaffirmation 
            agreement was filed, the number of cases in which the 
            reaffirmation agreement 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 entered determining 
            the value of property securing a claim;
                ``(ii) the number of cases dismissed, the number of 
            cases dismissed for failure to make payments under the 
            plan, the number of cases refiled after dismissal, and the 
            number of cases in which the plan was completed, separately 
            itemized with respect to the number of modifications made 
            before completion of the plan, if any; and
                ``(iii) the number of cases in which the debtor filed 
            another case during the 6-year period preceding the 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 attorney or 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. 602. UNIFORM RULES FOR THE COLLECTION OF BANKRUPTCY DATA.

    (a) Amendment.--Chapter 39 of title 28, United States Code, is 
amended by adding at the end the following:

``Sec. 589b. Bankruptcy data

    ``(a) Rules.--The Attorney General shall, within a reasonable time 
after the effective date of this section, issue rules requiring uniform 
forms for (and from time to time thereafter to appropriately modify and 
approve)--
        ``(1) final reports by trustees in cases under chapters 7, 12, 
    and 13 of title 11; and
        ``(2) periodic reports by debtors in possession or trustees in 
    cases under chapter 11 of title 11.
    ``(b) Reports.--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 
possible access of the public, both by physical inspection at one or 
more central filing locations, and by electronic access through the 
Internet or other appropriate media.
    ``(c) Required Information.--The information required to be filed 
in the reports referred to in subsection (b) shall be that which is in 
the best interests of debtors and creditors, and in the public interest 
in reasonable and adequate information to evaluate the efficiency and 
practicality of the Federal bankruptcy system. In issuing rules 
proposing the forms referred to in subsection (a), the Attorney General 
shall strike the best achievable practical balance between--
        ``(1) the reasonable needs of the public for information about 
    the operational results of the Federal bankruptcy system;
        ``(2) economy, simplicity, and lack of undue burden on persons 
    with a duty to file reports; and
        ``(3) appropriate privacy concerns and safeguards.
    ``(d) Final Reports.--The uniform forms for final reports required 
under subsection (a) for use by trustees under chapters 7, 12, and 13 
of title 11 shall, in addition to such other matters as are required by 
law or as the Attorney General in the discretion of the Attorney 
General shall propose, include with respect to a case under such 
title--
        ``(1) information about the length of time the case was 
    pending;
        ``(2) assets abandoned;
        ``(3) assets exempted;
        ``(4) receipts and disbursements of the estate;
        ``(5) expenses of administration, including for use under 
    section 707(b), actual costs of administering cases under chapter 
    13 of title 11;
        ``(6) claims asserted;
        ``(7) claims allowed; and
        ``(8) distributions to claimants and claims discharged without 
    payment,
in each case by appropriate category and, in cases under chapters 12 
and 13 of title 11, date of confirmation of the plan, each modification 
thereto, and defaults by the debtor in performance under the plan.
    ``(e) Periodic Reports.--The uniform forms for periodic reports 
required under subsection (a) for use by trustees or debtors in 
possession under chapter 11 of title 11 shall, in addition to such 
other matters as are required by law or as the Attorney General in the 
discretion of the Attorney General shall propose, include--
        ``(1) information about the industry classification, published 
    by the Department of Commerce, for the businesses conducted by the 
    debtor;
        ``(2) length of time the case has been pending;
        ``(3) number of full-time employees as of the date of the order 
    for relief and at the end of each reporting period since the case 
    was filed;
        ``(4) cash receipts, cash disbursements and profitability of 
    the debtor for the most recent period and cumulatively since the 
    date of the order for relief;
        ``(5) compliance with title 11, whether or not tax returns and 
    tax payments since the date of the order for relief have been 
    timely filed and made;
        ``(6) all professional fees approved by the court in the case 
    for the most recent period and cumulatively since the date of the 
    order for relief (separately reported, for the professional fees 
    incurred by or on behalf of the debtor, between those that would 
    have been incurred absent a bankruptcy case and those not); and
        ``(7) plans of reorganization filed and confirmed and, with 
    respect thereto, by class, the recoveries of the holders, expressed 
    in aggregate dollar values and, in the case of claims, as a 
    percentage of total claims of the class allowed.''.
    (b) Clerical 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. 603. AUDIT PROCEDURES.

    (a) In General.--
        (1) Establishment of procedures.--The Attorney General (in 
    judicial districts served by United States trustees) and the 
    Judicial Conference of the United States (in judicial districts 
    served by bankruptcy administrators) shall establish procedures to 
    determine the accuracy, veracity, and completeness of petitions, 
    schedules, and other information that the debtor is required to 
    provide under sections 521 and 1322 of title 11, United States 
    Code, and, if applicable, section 111 of such title, in cases filed 
    under chapter 7 or 13 of such title in which the debtor is an 
    individual. Such audits shall be in accordance with generally 
    accepted auditing standards and performed by independent certified 
    public accountants or independent licensed public accountants, 
    provided that the Attorney General and the Judicial Conference, as 
    appropriate, may develop alternative auditing standards not later 
    than 2 years after the date of enactment of this Act.
        (2) Procedures.--Those procedures required by paragraph (1) 
    shall--
            (A) establish a method of selecting appropriate qualified 
        persons to contract to perform those audits;
            (B) 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;
            (C) require audits of schedules of income and expenses that 
        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 district in which the 
        schedules were filed; and
            (D) establish procedures for providing, not less frequently 
        than annually, public information concerning the aggregate 
        results of such audits including the percentage of cases, by 
        district, in which a material misstatement of income or 
        expenditures is reported.
    (b) 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 section 603(a) of 
    the Bankruptcy Abuse Prevention and Consumer Protection Act of 
    2005;''; and
        (2) by adding at the end the following:
    ``(f)(1) The United States trustee for each district is authorized 
to contract with auditors to perform audits in cases designated by the 
United States trustee, in accordance with the procedures established 
under section 603(a) of the Bankruptcy Abuse Prevention and Consumer 
Protection Act of 2005.
    ``(2)(A) The report of each audit referred to in paragraph (1) 
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 in which a material 
misstatement of income or expenditures or of assets has been reported, 
the clerk of the district court (or the clerk of the bankruptcy court 
if one is certified under section 156(b) of this title) 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 pursuant to section 3057 of title 18; and
        ``(ii) if advisable, take appropriate action, including but not 
    limited to commencing an adversary proceeding to revoke the 
    debtor's discharge pursuant to section 727(d) of title 11.''.
    (c) Amendments to Section 521 of Title 11, U.S.C.--Section 521(a) 
of title 11, United States Code, as so designated by section 106, is 
amended in each of paragraphs (3) and (4) by inserting ``or an auditor 
serving under section 586(f) of title 28'' after ``serving in the 
case''.
    (d) Amendments to Section 727 of Title 11, U.S.C.--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 referred to in 
        section 586(f) of title 28; or
            ``(B) a failure to make available for inspection all 
        necessary accounts, papers, documents, financial records, 
        files, and all other papers, things, or property belonging to 
        the debtor that are requested for an audit referred to in 
        section 586(f) of title 28.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

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

    It is the sense of Congress that--
        (1) the national policy of the United States should be that all 
    data held by bankruptcy clerks in electronic form, to the extent 
    such data reflects only public records (as defined in section 107 
    of title 11, 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 Congress and 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 
    that arise after the date of the filing of the 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 such 
    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)(4).
        ``(2) Claims for contributions to an employee benefit plan 
    entitled to priority under section 507(a)(5).''.
    (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. TREATMENT OF FUEL TAX CLAIMS.

    Section 501 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) A claim arising from the liability of a debtor for fuel use 
tax assessed consistent with the requirements of section 31705 of title 
49 may be filed by the base jurisdiction designated pursuant to the 
International Fuel Tax Agreement (as defined in section 31701 of title 
49) and, if so filed, shall be allowed as a single claim.''.

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

    Section 505(b) of title 11, United States Code, is amended--
        (1) in the first sentence, by inserting ``at the address and in 
    the manner designated in paragraph (1)'' after ``determination of 
    such tax'';
        (2) by striking ``(1) upon payment'' and inserting ``(A) upon 
    payment'';
        (3) by striking ``(A) such governmental unit'' and inserting 
    ``(i) such governmental unit'';
        (4) by striking ``(B) such governmental unit'' and inserting 
    ``(ii) such governmental unit'';
        (5) by striking ``(2) upon payment'' and inserting ``(B) upon 
    payment'';
        (6) by striking ``(3) upon payment'' and inserting ``(C) upon 
    payment'';
        (7) by striking ``(b)'' and inserting ``(2)''; and
        (8) by inserting before paragraph (2), as so designated, the 
    following:
    ``(b)(1)(A) The clerk shall maintain a list under which a Federal, 
State, or local governmental unit responsible for the collection of 
taxes within the district may--
        ``(i) designate an address for service of requests under this 
    subsection; and
        ``(ii) describe where further information concerning additional 
    requirements for filing such requests may be found.
    ``(B) If such governmental unit does not designate an address and 
provide such address to the clerk under subparagraph (A), any request 
made under this subsection may be served at the address for the filing 
of a tax return or protest with the appropriate taxing authority of 
such governmental unit.''.

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

    ``(a) If any provision of this title requires the payment of 
interest on a tax claim or on an administrative expense tax, 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 the 
rate determined under applicable nonbankruptcy law.
    ``(b) In the case of taxes paid under a confirmed plan under this 
title, the 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 subchapter I of 
chapter 5 of title 11, United States Code, is amended by adding at the 
end the following:

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

SEC. 705. PRIORITY OF TAX CLAIMS.

    Section 507(a)(8) of title 11, United States Code, is amended--
        (1) in subparagraph (A)--
            (A) in the matter preceding clause (i), by inserting ``for 
        a taxable year ending on or before the date of the filing of 
        the petition'' after ``gross receipts'';
            (B) in clause (i), by striking ``for a taxable year ending 
        on or before the date of the filing of the petition''; and
            (C) 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; and
                    ``(II) 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 90 days.''; 
                and

        (2) by adding at the end the following:
    ``An otherwise applicable time period specified in this paragraph 
    shall be suspended for any period during which a governmental unit 
    is prohibited under applicable nonbankruptcy law from collecting a 
    tax as a result of a request by the debtor for a hearing and an 
    appeal of any collection action taken or proposed against the 
    debtor, plus 90 days; plus any time during which the stay of 
    proceedings was in effect in a prior case under this title or 
    during which collection was precluded by the existence of 1 or more 
    confirmed plans under this title, plus 90 days.''.

SEC. 706. PRIORITY PROPERTY TAXES INCURRED.

    Section 507(a)(8)(B) of title 11, United States Code, is amended by 
striking ``assessed'' and inserting ``incurred''.

SEC. 707. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 13.

    Section 1328(a)(2) of title 11, United States Code, as amended by 
section 314, is amended by striking ``paragraph'' and inserting 
``section 507(a)(8)(C) or in paragraph (1)(B), (1)(C),''.

SEC. 708. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 11.

    Section 1141(d) of title 11, United States Code, as amended by 
sections 321 and 330, is amended by adding at the end the following:
    ``(6) Notwithstanding paragraph (1), the confirmation of a plan 
does not discharge a debtor that is a corporation from any debt--
        ``(A) of a kind specified in paragraph (2)(A) or (2)(B) of 
    section 523(a) that is owed to a domestic governmental unit, or 
    owed to a person as the result of an action filed under subchapter 
    III of chapter 37 of title 31 or any similar State statute; or
        ``(B) for a tax or customs duty with respect to which the 
    debtor--
            ``(i) made a fraudulent return; or
            ``(ii) willfully attempted in any manner to evade or to 
        defeat such tax or such customs duty.''.

SEC. 709. STAY OF TAX PROCEEDINGS LIMITED TO PREPETITION TAXES.

    Section 362(a)(8) of title 11, United States Code, is amended by 
striking ``the debtor'' and inserting ``a corporate debtor's tax 
liability for a taxable period the bankruptcy court may determine or 
concerning the tax liability of a debtor who is an individual for a 
taxable period ending before the date of the order for relief under 
this title''.

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;
        (2) in subparagraph (C), by striking ``deferred cash 
    payments,'' and all that follows through the end of the 
    subparagraph, and inserting ``regular installment payments in 
    cash--
                ``(i) of a total value, as of the effective date of the 
            plan, equal to the allowed amount of such claim;
                ``(ii) over a period ending not later than 5 years 
            after the date of the order for relief under section 301, 
            302, or 303; and
                ``(iii) in a manner not less favorable than the most 
            favored nonpriority unsecured claim provided for by the 
            plan (other than cash payments made to a class of creditors 
            under section 1122(b)); and''; and
        (3) by adding at the end the following:
            ``(D) with respect to a secured claim which would otherwise 
        meet the description of 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 
inserting before the semicolon at the end the following: ``, 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 on or before the due 
date of the tax under applicable nonbankruptcy law, unless--
        ``(1) the tax is a property tax secured by a lien against 
    property that is abandoned under section 554 of title 11, within a 
    reasonable period of time after the lien attaches, by the trustee 
    in a case under 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 or 
    elected under chapter 7 of title 11; or
        ``(2) before the due date of the tax, an order of 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 an expense described in subparagraph (B) or (C), as a 
    condition of its being an allowed administrative expense;''.
    (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, as amended by 
sections 215 and 224, is amended--
        (1) in paragraph (1)(B)--
            (A) in the matter preceding clause (i), by inserting ``or 
        equivalent report or notice,'' after ``a return,'';
            (B) in clause (i), by inserting ``or given'' after 
        ``filed''; 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:
``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 or a final order 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.

    Section 505(b)(2) of title 11, United States Code, as amended by 
section 703, 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 sections 102, 213, and 306, is amended by inserting after 
paragraph (8) the following:
        ``(9) the debtor has filed all applicable Federal, State, and 
    local tax returns as required by section 1308.''.
    (b) Additional Time Permitted for Filing Tax Returns.--
        (1) In general.--Subchapter I of chapter 13 of title 11, United 
    States Code, is amended by adding at the end the following:

``Sec. 1308. Filing of prepetition tax returns

    ``(a) Not later than the day before the date on which the meeting 
of the creditors is first scheduled to be held under section 341(a), if 
the debtor was required to file a tax return under applicable 
nonbankruptcy law, the debtor shall file with appropriate tax 
authorities all tax returns for all taxable periods ending during the 
4-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 meeting of 
creditors is first scheduled to be held under section 341(a), the 
trustee may hold open 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 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 
        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 is timely made, in 
        accordance with applicable nonbankruptcy law.
    ``(2) After notice and a hearing, and order entered before the 
tolling of any applicable filing period determined under this 
subsection, if the debtor demonstrates by a preponderance of the 
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 subsection (a) or (b) of section 6020 of 
the Internal Revenue Code of 1986, or a similar State or local law, or 
a written stipulation to a judgment or a final order entered by a 
nonbankruptcy tribunal.''.
        (2) Conforming amendment.--The table of sections for subchapter 
    I of chapter 13 of title 11, United States Code, is amended by 
    adding at the end the following:

``1308. Filing of prepetition tax returns.''.
    (c) Dismissal or Conversion on Failure To Comply.--Section 1307 of 
title 11, United States Code, is amended--
        (1) by redesignating subsections (e) and (f) as subsections (f) 
    and (g), respectively; and
        (2) by inserting after subsection (d) the following:
    ``(e) Upon the failure of the debtor to file a tax return under 
section 1308, on request of a party in interest or the United States 
trustee and after notice and a hearing, the court shall dismiss a case 
or convert a case under this chapter to a case under chapter 7 of this 
title, whichever is in the best interest of the creditors and the 
estate.''.
    (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, a claim of a 
governmental unit for a tax with respect to a return filed under 
section 1308 shall be timely if the claim is filed on or before the 
date that is 60 days after the date on which such return was filed as 
required''.
    (e) Rules for Objections to Claims and to Confirmation.--It is the 
sense of Congress that the Judicial Conference of the United States 
should, as soon as practicable after the date of enactment of this Act, 
propose amended Federal Rules of Bankruptcy Procedure that provide--
        (1) notwithstanding the provisions of Rule 3015(f), in cases 
    under chapter 13 of title 11, United States Code, that an objection 
    to the confirmation of a plan filed by a governmental unit on or 
    before the date that is 60 days after the date on which the debtor 
    files all tax returns required under sections 1308 and 1325(a)(7) 
    of title 11, United States Code, shall be treated for all purposes 
    as if such objection had been timely filed before such 
    confirmation; and
        (2) in addition to the provisions of Rule 3007, in a case under 
    chapter 13 of title 11, United States Code, that no objection to a 
    claim for a tax with respect to which a return is required to be 
    filed under section 1308 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 discussion of the potential 
    material Federal tax consequences of the plan to the debtor, any 
    successor to the debtor, and a hypothetical investor typical of the 
    holders of claims or interests in the case,'' 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 
sections 224, 303, 311, and 401, is amended by inserting after 
paragraph (25) the following:
        ``(26) under subsection (a), of the setoff under applicable 
    nonbankruptcy law of an income tax refund, by a governmental unit, 
    with respect to a taxable period that ended before the date of the 
    order for relief against an income tax liability for a taxable 
    period that also ended before the date of the order for relief, 
    except that in any case in which the setoff of an income tax refund 
    is not permitted under applicable nonbankruptcy law because of a 
    pending action to determine the amount or legality of a tax 
    liability, the governmental unit may hold the refund pending the 
    resolution of the action, unless the court, on the motion of the 
    trustee and after notice and a hearing, grants the taxing authority 
    adequate protection (within the meaning of section 361) for the 
    secured claim of such authority in the setoff under section 
    506(a);''.

SEC. 719. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF STATE AND 
              LOCAL TAXES.

    (a) In General.--
        (1) Special provisions.--Section 346 of title 11, United States 
    Code, is amended to read as follows:

``Sec. 346. Special provisions related to the treatment of State and 
            local taxes

    ``(a) Whenever the Internal Revenue Code of 1986 provides that a 
separate taxable estate or entity is created in a case concerning a 
debtor under this title, and the income, gain, loss, deductions, and 
credits of such estate shall be taxed to or claimed by the estate, a 
separate taxable estate is also created for purposes of any State and 
local law imposing a tax on or measured by income and such income, 
gain, loss, deductions, and credits shall be taxed to or claimed by the 
estate and may not be taxed to or claimed by the debtor. The preceding 
sentence shall not apply if the case is dismissed. The trustee shall 
make tax returns of income required under any such State or local law.
    ``(b) Whenever the Internal Revenue Code of 1986 provides that no 
separate taxable estate shall be created in a case concerning a debtor 
under this title, and the income, gain, loss, deductions, and credits 
of an estate shall be taxed to or claimed by the debtor, such income, 
gain, loss, deductions, and credits shall be taxed to or claimed by the 
debtor under a State or local law imposing a tax on or measured by 
income and may not be taxed to or claimed by the estate. The trustee 
shall make such tax returns of income of corporations and of 
partnerships as are required under any State or local law, but with 
respect to partnerships, shall make such returns only to the extent 
such returns are also required to be made under such Code. The estate 
shall be liable for any tax imposed on such corporation or partnership, 
but not for any tax imposed on partners or members.
    ``(c) With respect to a partnership or any entity treated as a 
partnership under a State or local law imposing a tax on or measured by 
income that is a debtor in a case under this title, any gain or loss 
resulting from a distribution of property from such partnership, or any 
distributive share of any income, gain, loss, deduction, or credit of a 
partner or member that is distributed, or considered distributed, from 
such partnership, after the commencement of the case, is gain, loss, 
income, deduction, or credit, as the case may be, of the partner or 
member, and if such partner or member is a debtor in a case under this 
title, shall be subject to tax in accordance with subsection (a) or 
(b).
    ``(d) For purposes of any State or local law imposing a tax on or 
measured by income, the taxable period of a debtor in a case under this 
title shall terminate only if and to the extent that the taxable period 
of such debtor terminates under the Internal Revenue Code of 1986.
    ``(e) The estate in any case described in subsection (a) shall use 
the same accounting method as the debtor used immediately before the 
commencement of the case, if such method of accounting complies with 
applicable nonbankruptcy tax law.
    ``(f) For purposes of any State or local law imposing a tax on or 
measured by income, a transfer of property from the debtor to the 
estate or from the estate to the debtor shall not be treated as a 
disposition for purposes of any provision assigning tax consequences to 
a disposition, except to the extent that such transfer is treated as a 
disposition under the Internal Revenue Code of 1986.
    ``(g) Whenever a tax is imposed pursuant to a State or local law 
imposing a tax on or measured by income pursuant to subsection (a) or 
(b), such tax shall be imposed at rates generally applicable to the 
same types of entities under such State or local law.
    ``(h) The trustee shall withhold from any payment of claims for 
wages, salaries, commissions, dividends, interest, or other payments, 
or collect, any amount required to be withheld or collected under 
applicable State or local tax law, and shall pay such withheld or 
collected amount to the appropriate governmental unit at the time and 
in the manner required by such tax law, and with the same priority as 
the claim from which such amount was withheld or collected was paid.
    ``(i)(1) To the extent that any State or local law imposing a tax 
on or measured by income provides for the carryover of any tax 
attribute from one taxable period to a subsequent taxable period, the 
estate shall succeed to such tax attribute in any case in which such 
estate is subject to tax under subsection (a).
    ``(2) After such a case is closed or dismissed, the debtor shall 
succeed to any tax attribute to which the estate succeeded under 
paragraph (1) to the extent consistent with the Internal Revenue Code 
of 1986.
    ``(3) The estate may carry back any loss or tax attribute to a 
taxable period of the debtor that ended before the date of the order 
for relief under this title to the extent that--
        ``(A) applicable State or local tax law provides for a 
    carryback in the case of the debtor; and
        ``(B) the same or a similar tax attribute may be carried back 
    by the estate to such a taxable period of the debtor under the 
    Internal Revenue Code of 1986.
    ``(j)(1) For purposes of any State or local law imposing a tax on 
or measured by income, income is not realized by the estate, the 
debtor, or a successor to the debtor by reason of discharge of 
indebtedness in a case under this title, except to the extent, if any, 
that such income is subject to tax under the Internal Revenue Code of 
1986.
    ``(2) Whenever the Internal Revenue Code of 1986 provides that the 
amount excluded from gross income in respect of the discharge of 
indebtedness in a case under this title shall be applied to reduce the 
tax attributes of the debtor or the estate, a similar reduction shall 
be made under any State or local law imposing a tax on or measured by 
income to the extent such State or local law recognizes such 
attributes. Such State or local law may also provide for the reduction 
of other attributes to the extent that the full amount of income from 
the discharge of indebtedness has not been applied.
    ``(k)(1) Except as provided in this section and section 505, the 
time and manner of filing tax returns and the items of income, gain, 
loss, deduction, and credit of any taxpayer shall be determined under 
applicable nonbankruptcy law.
    ``(2) For Federal tax purposes, the provisions of this section are 
subject to the Internal Revenue Code of 1986 and other applicable 
Federal nonbankruptcy law.''.
        (2) Clerical Amendment.--The table of sections for chapter 3 of 
    title 11, United States Code, is amended by striking the item 
    relating to section 346 and inserting the following:

``346. Special provisions related to the treatment of State and local 
          taxes.''.
    (b) Conforming Amendments.--Title 11 of the United States Code is 
amended--
        (1) by striking section 728;
        (2) in the table of sections for chapter 7 by striking the item 
    relating to section 728;
        (3) in section 1146--
            (A) by striking subsections (a) and (b); and
            (B) by redesignating subsections (c) and (d) as subsections 
        (a) and (b), respectively; and
        (4) in section 1231--
            (A) by striking subsections (a) and (b); and
            (B) by redesignating subsections (c) and (d) as subsections 
        (a) and (b), respectively.

SEC. 720. DISMISSAL FOR FAILURE TO TIMELY FILE TAX RETURNS.

    Section 521 of title 11, United States Code, as amended by sections 
106, 225, 305, 315, and 316, is amended by adding at the end the 
following:
    ``(j)(1) Notwithstanding any other provision of this title, if the 
debtor fails to file a tax return that becomes due after the 
commencement of the case or to properly obtain an extension of the due 
date for filing such return, the taxing authority may request that the 
court enter an order converting or dismissing the case.
    ``(2) If the debtor does not file the required return or obtain the 
extension referred to in paragraph (1) within 90 days after a request 
is filed by the taxing authority under that paragraph, the court shall 
convert or dismiss the case, whichever is in the best interests of 
creditors and the estate.''.

           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.
``1516. Presumptions concerning recognition.
``1517. Order granting recognition.
``1518. Subsequent information.
``1519. Relief that may be granted upon filing petition for recognition.
``1520. Effects of recognition of a foreign main proceeding.
``1521. Relief that may be granted upon recognition.
``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) courts of the United States, United States trustees, 
        trustees, examiners, debtors, and debtors in possession; and
            ``(B) the courts and other competent authorities of foreign 
        countries involved in cross-border insolvency cases;
        ``(2) greater legal certainty for trade and investment;
        ``(3) fair and efficient administration of cross-border 
    insolvencies that protects the interests of all creditors, and 
    other interested entities, including the debtor;
        ``(4) protection and maximization of the value of the debtor's 
    assets; and
        ``(5) facilitation of the rescue of financially troubled 
    businesses, thereby protecting investment and preserving 
    employment.
    ``(b) This chapter applies where--
        ``(1) assistance is sought in the United States by a foreign 
    court or a foreign representative in connection with a foreign 
    proceeding;
        ``(2) assistance is sought in a foreign country in connection 
    with a case under this title;
        ``(3) a foreign proceeding and a case under this title with 
    respect to the same debtor are pending 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, other than a foreign 
    insurance company, identified by exclusion in section 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, 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.
    ``(d) The court may not grant relief under this chapter 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.

                   ``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 
    pending 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, pending 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;
        ``(7) `recognition' means the entry of an order granting 
    recognition of a foreign main proceeding or foreign nonmain 
    proceeding under this chapter; and
        ``(8) `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 one 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 stated elsewhere in this 
chapter the court, if recognition is granted, 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 may commence a case under section 
1504 by filing directly with the court a petition for recognition of a 
foreign proceeding under section 1515.
    ``(b) If the court grants recognition under section 1517, and 
subject to any limitations that the court may impose consistent with 
the policy of this chapter--
        ``(1) the foreign representative has the capacity to sue and be 
    sued in a court in the United States;
        ``(2) the foreign representative may apply directly to a court 
    in the United States for appropriate relief in that court; and
        ``(3) a court in the United States shall grant comity or 
    cooperation to the foreign representative.
    ``(c) A request for comity or cooperation by a foreign 
representative in a court in the United States other than the court 
which granted recognition shall be accompanied by a certified copy of 
an order granting recognition under section 1517.
    ``(d) If the court denies recognition under this chapter, the court 
may issue any appropriate order necessary to prevent the foreign 
representative from obtaining comity or cooperation from courts in the 
United States.
    ``(e) Whether or not the court grants recognition, and subject to 
sections 306 and 1510, a foreign representative is subject to 
applicable nonbankruptcy law.
    ``(f) Notwithstanding any other provision of this section, the 
failure of a foreign representative to commence a case or to obtain 
recognition under this chapter does not affect any right the foreign 
representative may have to sue in a court in the United States to 
collect or recover a claim which is the property of the debtor.

``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 certified copy of an order granting recognition. 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 the recognized 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 present law as to 
the priority of claims under section 507 or 726, except that the claim 
of a foreign creditor under those sections shall not be given a lower 
priority than that of general unsecured claims without priority solely 
because the holder of such claim is a foreign creditor.
    ``(2)(A) Subsection (a) and paragraph (1) do not change or codify 
present law as to the allowability of foreign revenue claims or other 
foreign public law claims in a proceeding under this title.
    ``(B) Allowance and priority as to a foreign tax claim or other 
foreign public law claim shall be governed by any applicable tax treaty 
of the United States, under the conditions and circumstances specified 
therein.

``Sec. 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 letter or other formality is 
required.
    ``(c) When a notification of commencement of a case is to be given 
to foreign creditors, such notification shall--
        ``(1) indicate the time period for filing proofs of claim and 
    specify the place for filing such proofs of claim;
        ``(2) indicate whether secured creditors need to file proofs of 
    claim; and
        ``(3) contain any other information required to be included in 
    such notification to creditors under 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 proof of 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

    ``(a) A foreign representative applies to the court for recognition 
of a 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 such foreign 
    proceeding and appointing the foreign representative;
        ``(2) a certificate from the foreign court affirming the 
    existence of such 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 such 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) shall 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 and that 
the person or body is a foreign representative, 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 granting recognition

    ``(a) Subject to section 1506, after notice and a hearing, an order 
recognizing a foreign proceeding shall be entered if--
        ``(1) such foreign proceeding for which recognition is sought 
    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; and
        ``(3) the petition meets the requirements of section 1515.
    ``(b) Such foreign proceeding shall be recognized--
        ``(1) as a foreign main proceeding if it is pending 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 constitutes 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 order granting 
recognition. A case under this chapter may be closed in the manner 
prescribed under section 350.

``Sec. 1518. Subsequent information

    ``From the time of filing the petition for recognition of a foreign 
proceeding, the foreign representative shall file with the court 
promptly a notice of change of status concerning--
        ``(1) any substantial change in the status of such 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 filing petition for 
            recognition

    ``(a) From the time of filing a petition for recognition until the 
court rules on the petition, 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 
granted.
    ``(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.
    ``(f) The exercise of rights not subject to the stay arising under 
section 362(a) pursuant to paragraph (6), (7), (17), or (27) of section 
362(b) or pursuant to section 362(n) shall not be stayed by any order 
of a court or administrative agency in any proceeding under this 
chapter.

``Sec. 1520. Effects of recognition of a foreign main proceeding

    ``(a) Upon recognition of a foreign proceeding that is a foreign 
main proceeding--
        ``(1) sections 361 and 362 apply with respect to the debtor and 
    the property of the debtor that is within the territorial 
    jurisdiction of the United States;
        ``(2) sections 363, 549, and 552 apply to a transfer of an 
    interest of the debtor in property that is within the territorial 
    jurisdiction of the United States to the same extent that the 
    sections would apply to property of an estate;
        ``(3) unless the court orders otherwise, the foreign 
    representative may operate the debtor's business and may exercise 
    the rights and powers of a trustee under and to the extent provided 
    by sections 363 and 552; and
        ``(4) section 552 applies to property of the debtor that is 
    within the territorial jurisdiction of the United States.
    ``(b) Subsection (a) does not affect the right to commence an 
individual action or proceeding in a foreign country to the extent 
necessary to preserve a claim against the debtor.
    ``(c) 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

    ``(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 an individual 
    action or proceeding concerning the debtor's assets, rights, 
    obligations or liabilities to the extent they have not been stayed 
    under section 1520(a);
        ``(2) staying execution against the debtor's assets to the 
    extent it 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 this 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, provided that the court 
is satisfied that the interests of creditors in the United States are 
sufficiently protected.
    ``(c) In granting relief under this section to a representative of 
a foreign nonmain proceeding, the court must be satisfied that the 
relief relates to assets that, under the law of the United States, 
should be administered in the foreign nonmain proceeding or concerns 
information required in that proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under paragraphs (1), (2), (3), and 
(6) of subsection (a).
    ``(f) The exercise of rights not subject to the stay arising under 
section 362(a) pursuant to paragraph (6), (7), (17), or (27) of section 
362(b) or pursuant to section 362(n) shall not be stayed by any order 
of a court or administrative agency in any proceeding under this 
chapter.

``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)(3), to conditions it considers appropriate, including the 
giving of security or the filing of a bond.
    ``(c) The court may, at the request of the foreign representative 
or an entity affected by relief granted under section 1519 or 1521, or 
at its own motion, modify or terminate such relief.
    ``(d) Section 1104(d) shall apply to the appointment of an examiner 
under this chapter. Any examiner shall comply with the qualification 
requirements imposed on a trustee by section 322.

``Sec. 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, 553, and 724(a).
    ``(b) When a 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 a foreign court or a foreign 
representative, either directly or through the trustee.
    ``(b) The court is entitled to communicate directly with, or to 
request information or assistance directly from, a foreign court or a 
foreign representative, subject to the rights of a party 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 
a foreign court or a foreign representative.
    ``(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 a foreign court or a foreign 
representative.

``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) of this title, and 1334(e) of title 28, 
to the extent that such other assets are not subject to the 
jurisdiction and control of a foreign proceeding that has been 
recognized under this chapter.

``Sec. 1529. Coordination of a case under this title and a foreign 
            proceeding

    ``If a foreign proceeding and a case under another chapter of this 
title are pending 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 pending at the time the 
    petition for recognition of such foreign proceeding is filed--
            ``(A) any relief granted under section 1519 or 1521 must be 
        consistent with the relief granted in the case in the United 
        States; and
            ``(B) section 1520 does not apply even if such foreign 
        proceeding is recognized as a foreign main proceeding.
        ``(2) If a case in the United States under this title commences 
    after recognition, or after the date of the filing of the petition 
    for recognition, of such foreign proceeding--
            ``(A) 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 case in the United States; and
            ``(B) if such 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 laws 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. OTHER AMENDMENTS TO TITLES 11 AND 28, 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, 362(n), 555 through 
    557, and 559 through 562 apply in a case under chapter 15''; and
        (2) by adding at the end the following:
    ``(k) Chapter 15 applies only in a case under such chapter, except 
that--
        ``(1) sections 1505, 1513, and 1514 apply in all cases under 
    this title; and
        ``(2) section 1509 applies whether or not a case under this 
    title is pending.''.
    (b) Definitions.--Section 101 of title 11, United States Code, is 
amended by striking paragraphs (23) and (24) and inserting the 
following:
        ``(23) `foreign proceeding' means a collective judicial or 
    administrative proceeding in a foreign country, including an 
    interim proceeding, under a law relating to insolvency or 
    adjustment of debt 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 such 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) 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 striking ``or 13'' and inserting ``13, 
    or 15''.
        (4) Venue of cases ancillary to foreign proceedings.--Section 
    1410 of title 28, United States Code, is amended to read as 
    follows:

``Sec. 1410. Venue of cases ancillary to foreign proceedings

    ``A case under chapter 15 of title 11 may be commenced in the 
district court of the United States for the district--
        ``(1) in which the debtor has its principal place of business 
    or principal assets in the United States;
        ``(2) if the debtor does not have a place of business or assets 
    in the United States, in which there is pending against the debtor 
    an action or proceeding in a Federal or State court; or
        ``(3) in a case other than those specified in paragraph (1) or 
    (2), in which venue will be consistent with the interests of 
    justice and the convenience of the parties, having regard to the 
    relief sought by the foreign representative.''.
    (d) Other Sections of Title 11.--Title 11 of the United States Code 
is amended--
        (1) in section 109(b), by striking paragraph (3) and inserting 
    the following:
        ``(3)(A) a foreign insurance company, engaged in such business 
    in the United States; or
        ``(B) a foreign bank, savings bank, cooperative bank, savings 
    and loan association, building and loan association, or credit 
    union, that has a branch or agency (as defined in section 1(b) of 
    the International Banking Act of 1978 in the United States.'';
        (2) in section 303, by striking subsection (k);
        (3) by striking section 304;
        (4) in the table of sections for chapter 3 by striking the item 
    relating to section 304;
        (5) in section 306 by striking ``, 304,'' each place it 
    appears;
        (6) in section 305(a) by striking paragraph (2) and inserting 
    the following:
        ``(2)(A) a petition under section 1515 for recognition of a 
    foreign proceeding has been granted; and
        ``(B) the purposes of chapter 15 of this title would be best 
    served by such dismissal or suspension.''; and
        (7) in section 508--
            (A) by striking subsection (a); and
            (B) in subsection (b), by striking ``(b)''.

                TITLE IX--FINANCIAL CONTRACT PROVISIONS

SEC. 901. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS 
              OF INSURED DEPOSITORY INSTITUTIONS.

    (a) Definition of Qualified Financial Contract.--
        (1) FDIC-insured depository institutions.--Section 11(e)(8)(D) 
    of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)) is 
    amended--
            (A) by striking ``subsection--'' and inserting 
        ``subsection, the following definitions shall apply:''; and
            (B) in clause (i), by inserting ``, resolution, or order'' 
        after ``any similar agreement that the Corporation determines 
        by regulation''.
        (2) Insured credit unions.--Section 207(c)(8)(D) of the Federal 
    Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended--
            (A) by striking ``subsection--'' and inserting 
        ``subsection, the following definitions shall apply:''; and
            (B) in clause (i), by inserting ``, resolution, or order'' 
        after ``any similar agreement that the Board determines by 
        regulation''.
    (b) Definition of Securities Contract.--
        (1) FDIC-insured depository institutions.--Section 
    11(e)(8)(D)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 
    1821(e)(8)(D)(ii)) is amended to read as follows:
                ``(ii) Securities contract.--The term `securities 
            contract'--

                    ``(I) means a contract for the purchase, sale, or 
                loan of a security, a certificate of deposit, a 
                mortgage loan, or any interest in a mortgage loan, a 
                group or index of securities, certificates of deposit, 
                or mortgage loans or interests therein (including any 
                interest therein or based on the value thereof) or any 
                option on any of the foregoing, including any option to 
                purchase or sell any such security, certificate of 
                deposit, mortgage loan, interest, group or index, or 
                option, and including any repurchase or reverse 
                repurchase transaction on any such security, 
                certificate of deposit, mortgage loan, interest, group 
                or index, or option;
                    ``(II) does not include any purchase, sale, or 
                repurchase obligation under a participation in a 
                commercial mortgage loan unless the Corporation 
                determines by regulation, resolution, or order to 
                include any such agreement within the meaning of such 
                term;
                    ``(III) means any option entered into on a national 
                securities exchange relating to foreign currencies;
                    ``(IV) means the guarantee by or to any securities 
                clearing agency of any settlement of cash, securities, 
                certificates of deposit, mortgage loans or interests 
                therein, group or index of securities, certificates of 
                deposit, or mortgage loans or interests therein 
                (including any interest therein or based on the value 
                thereof) or option on any of the foregoing, including 
                any option to purchase or sell any such security, 
                certificate of deposit, mortgage loan, interest, group 
                or index, or option;
                    ``(V) means any margin loan;
                    ``(VI) means any other agreement or transaction 
                that is similar to any agreement or transaction 
                referred to in this clause;
                    ``(VII) means any combination of the agreements or 
                transactions referred to in this clause;
                    ``(VIII) means any option to enter into any 
                agreement or transaction referred to in this clause;
                    ``(IX) means a master agreement that provides for 
                an agreement or transaction referred to in subclause 
                (I), (III), (IV), (V), (VI), (VII), or (VIII), together 
                with all supplements to any such master agreement, 
                without regard to whether the master agreement provides 
                for an agreement or transaction that is not a 
                securities contract under this clause, except that the 
                master agreement shall be considered to be a securities 
                contract under this clause only with respect to each 
                agreement or transaction under the master agreement 
                that is referred to in subclause (I), (III), (IV), (V), 
                (VI), (VII), or (VIII); and
                    ``(X) means any security agreement or arrangement 
                or other credit enhancement related to any agreement or 
                transaction referred to in this clause, including any 
                guarantee or reimbursement obligation in connection 
                with any agreement or transaction referred to in this 
                clause.''.

        (2) Insured credit unions.--Section 207(c)(8)(D)(ii) of the 
    Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(ii)) is amended 
    to read as follows:
                ``(ii) Securities contract.--The term `securities 
            contract'--

                    ``(I) means a contract for the purchase, sale, or 
                loan of a security, a certificate of deposit, a 
                mortgage loan, or any interest in a mortgage loan, a 
                group or index of securities, certificates of deposit, 
                or mortgage loans or interests therein (including any 
                interest therein or based on the value thereof) or any 
                option on any of the foregoing, including any option to 
                purchase or sell any such security, certificate of 
                deposit, mortgage loan, interest, group or index, or 
                option, and including any repurchase or reverse 
                repurchase transaction on any such security, 
                certificate of deposit, mortgage loan, interest, group 
                or index, or option;
                    ``(II) does not include any purchase, sale, or 
                repurchase obligation under a participation in a 
                commercial mortgage loan unless the Board determines by 
                regulation, resolution, or order to include any such 
                agreement within the meaning of such term;
                    ``(III) means any option entered into on a national 
                securities exchange relating to foreign currencies;
                    ``(IV) means the guarantee by or to any securities 
                clearing agency of any settlement of cash, securities, 
                certificates of deposit, mortgage loans or interests 
                therein, group or index of securities, certificates of 
                deposit, or mortgage loans or interests therein 
                (including any interest therein or based on the value 
                thereof) or option on any of the foregoing, including 
                any option to purchase or sell any such security, 
                certificate of deposit, mortgage loan, interest, group 
                or index, or option;
                    ``(V) means any margin loan;
                    ``(VI) means any other agreement or transaction 
                that is similar to any agreement or transaction 
                referred to in this clause;
                    ``(VII) means any combination of the agreements or 
                transactions referred to in this clause;
                    ``(VIII) means any option to enter into any 
                agreement or transaction referred to in this clause;
                    ``(IX) means a master agreement that provides for 
                an agreement or transaction referred to in subclause 
                (I), (III), (IV), (V), (VI), (VII), or (VIII), together 
                with all supplements to any such master agreement, 
                without regard to whether the master agreement provides 
                for an agreement or transaction that is not a 
                securities contract under this clause, except that the 
                master agreement shall be considered to be a securities 
                contract under this clause only with respect to each 
                agreement or transaction under the master agreement 
                that is referred to in subclause (I), (III), (IV), (V), 
                (VI), (VII), or (VIII); and
                    ``(X) means any security agreement or arrangement 
                or other credit enhancement related to any agreement or 
                transaction referred to in this clause, including any 
                guarantee or reimbursement obligation in connection 
                with any agreement or transaction referred to in this 
                clause.''.

    (c) Definition of Commodity Contract.--
        (1) FDIC-insured depository institutions.--Section 
    11(e)(8)(D)(iii) of the Federal Deposit Insurance Act (12 U.S.C. 
    1821(e)(8)(D)(iii)) is amended to read as follows:
                ``(iii) Commodity contract.--The term `commodity 
            contract' means--

                    ``(I) with respect to a futures commission 
                merchant, a contract for the purchase or sale of a 
                commodity for future delivery on, or subject to the 
                rules of, a contract market or board of trade;
                    ``(II) with respect to a foreign futures commission 
                merchant, a foreign future;
                    ``(III) with respect to a leverage transaction 
                merchant, a leverage transaction;
                    ``(IV) with respect to a clearing organization, a 
                contract for the purchase or sale of a commodity for 
                future delivery on, or subject to the rules of, a 
                contract market or board of trade that is cleared by 
                such clearing organization, or commodity option traded 
                on, or subject to the rules of, a contract market or 
                board of trade that is cleared by such clearing 
                organization;
                    ``(V) with respect to a commodity options dealer, a 
                commodity option;
                    ``(VI) any other agreement or transaction that is 
                similar to any agreement or transaction referred to in 
                this clause;
                    ``(VII) any combination of the agreements or 
                transactions referred to in this clause;
                    ``(VIII) any option to enter into any agreement or 
                transaction referred to in this clause;
                    ``(IX) a master agreement that provides for an 
                agreement or transaction referred to in subclause (I), 
                (II), (III), (IV), (V), (VI), (VII), or (VIII), 
                together with all supplements to any such master 
                agreement, without regard to whether the master 
                agreement provides for an agreement or transaction that 
                is not a commodity contract under this clause, except 
                that the master agreement shall be considered to be a 
                commodity contract under this clause only with respect 
                to each agreement or transaction under the master 
                agreement that is referred to in subclause (I), (II), 
                (III), (IV), (V), (VI), (VII), or (VIII); or
                    ``(X) any security agreement or arrangement or 
                other credit enhancement related to any agreement or 
                transaction referred to in this clause, including any 
                guarantee or reimbursement obligation in connection 
                with any agreement or transaction referred to in this 
                clause.''.

        (2) Insured credit unions.--Section 207(c)(8)(D)(iii) of the 
    Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(iii)) is amended 
    to read as follows:
                ``(iii) Commodity contract.--The term `commodity 
            contract' means--

                    ``(I) with respect to a futures commission 
                merchant, a contract for the purchase or sale of a 
                commodity for future delivery on, or subject to the 
                rules of, a contract market or board of trade;
                    ``(II) with respect to a foreign futures commission 
                merchant, a foreign future;
                    ``(III) with respect to a leverage transaction 
                merchant, a leverage transaction;
                    ``(IV) with respect to a clearing organization, a 
                contract for the purchase or sale of a commodity for 
                future delivery on, or subject to the rules of, a 
                contract market or board of trade that is cleared by 
                such clearing organization, or commodity option traded 
                on, or subject to the rules of, a contract market or 
                board of trade that is cleared by such clearing 
                organization;
                    ``(V) with respect to a commodity options dealer, a 
                commodity option;
                    ``(VI) any other agreement or transaction that is 
                similar to any agreement or transaction referred to in 
                this clause;
                    ``(VII) any combination of the agreements or 
                transactions referred to in this clause;
                    ``(VIII) any option to enter into any agreement or 
                transaction referred to in this clause;
                    ``(IX) a master agreement that provides for an 
                agreement or transaction referred to in subclause (I), 
                (II), (III), (IV), (V), (VI), (VII), or (VIII), 
                together with all supplements to any such master 
                agreement, without regard to whether the master 
                agreement provides for an agreement or transaction that 
                is not a commodity contract under this clause, except 
                that the master agreement shall be considered to be a 
                commodity contract under this clause only with respect 
                to each agreement or transaction under the master 
                agreement that is referred to in subclause (I), (II), 
                (III), (IV), (V), (VI), (VII), or (VIII); or
                    ``(X) any security agreement or arrangement or 
                other credit enhancement related to any agreement or 
                transaction referred to in this clause, including any 
                guarantee or reimbursement obligation in connection 
                with any agreement or transaction referred to in this 
                clause.''.

    (d) Definition of Forward Contract.--
        (1) FDIC-insured depository institutions.--Section 
    11(e)(8)(D)(iv) of the Federal Deposit Insurance Act (12 U.S.C. 
    1821(e)(8)(D)(iv)) is amended to read as follows:
                ``(iv) Forward contract.--The term `forward contract' 
            means--

                    ``(I) a contract (other than a commodity contract) 
                for the purchase, sale, or transfer of a commodity or 
                any similar good, article, service, right, or interest 
                which is presently or in the future becomes the subject 
                of dealing in the forward contract trade, or product or 
                byproduct thereof, with a maturity date more than 2 
                days after the date the contract is entered into, 
                including, a repurchase transaction, reverse repurchase 
                transaction, consignment, lease, swap, hedge 
                transaction, deposit, loan, option, allocated 
                transaction, unallocated transaction, or any other 
                similar agreement;
                    ``(II) any combination of agreements or 
                transactions referred to in subclauses (I) and (III);
                    ``(III) any option to enter into any agreement or 
                transaction referred to in subclause (I) or (II);
                    ``(IV) a master agreement that provides for an 
                agreement or transaction referred to in subclauses (I), 
                (II), or (III), together with all supplements to any 
                such master agreement, without regard to whether the 
                master agreement provides for an agreement or 
                transaction that is not a forward contract under this 
                clause, except that the master agreement shall be 
                considered to be a forward contract under this clause 
                only with respect to each agreement or transaction 
                under the master agreement that is referred to in 
                subclause (I), (II), or (III); or
                    ``(V) any security agreement or arrangement or 
                other credit enhancement related to any agreement or 
                transaction referred to in subclause (I), (II), (III), 
                or (IV), including any guarantee or reimbursement 
                obligation in connection with any agreement or 
                transaction referred to in any such subclause.''.

        (2) Insured credit unions.--Section 207(c)(8)(D)(iv) of the 
    Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(iv)) is amended 
    to read as follows:
                ``(iv) Forward contract.--The term `forward contract' 
            means--

                    ``(I) a contract (other than a commodity contract) 
                for the purchase, sale, or transfer of a commodity or 
                any similar good, article, service, right, or interest 
                which is presently or in the future becomes the subject 
                of dealing in the forward contract trade, or product or 
                byproduct thereof, with a maturity date more than 2 
                days after the date the contract is entered into, 
                including, a repurchase transaction, reverse repurchase 
                transaction, consignment, lease, swap, hedge 
                transaction, deposit, loan, option, allocated 
                transaction, unallocated transaction, or any other 
                similar agreement;
                    ``(II) any combination of agreements or 
                transactions referred to in subclauses (I) and (III);
                    ``(III) any option to enter into any agreement or 
                transaction referred to in subclause (I) or (II);
                    ``(IV) a master agreement that provides for an 
                agreement or transaction referred to in subclauses (I), 
                (II), or (III), together with all supplements to any 
                such master agreement, without regard to whether the 
                master agreement provides for an agreement or 
                transaction that is not a forward contract under this 
                clause, except that the master agreement shall be 
                considered to be a forward contract under this clause 
                only with respect to each agreement or transaction 
                under the master agreement that is referred to in 
                subclause (I), (II), or (III); or
                    ``(V) any security agreement or arrangement or 
                other credit enhancement related to any agreement or 
                transaction referred to in subclause (I), (II), (III), 
                or (IV), including any guarantee or reimbursement 
                obligation in connection with any agreement or 
                transaction referred to in any such subclause.''.

    (e) Definition of Repurchase Agreement.--
        (1) FDIC-insured depository institutions.--Section 
    11(e)(8)(D)(v) of the Federal Deposit Insurance Act (12 U.S.C. 
    1821(e)(8)(D)(v)) is amended to read as follows:
                ``(v) Repurchase agreement.--The term `repurchase 
            agreement' (which definition also applies to a reverse 
            repurchase agreement)--

                    ``(I) means an agreement, including related terms, 
                which provides for the transfer of one or more 
                certificates of deposit, mortgage-related securities 
                (as such term is defined in the Securities Exchange Act 
                of 1934), mortgage loans, interests in mortgage-related 
                securities or mortgage loans, eligible bankers' 
                acceptances, qualified foreign government securities or 
                securities that are direct obligations of, or that are 
                fully guaranteed by, the United States or any agency of 
                the United States against the transfer of funds by the 
                transferee of such certificates of deposit, eligible 
                bankers' acceptances, securities, mortgage loans, or 
                interests with a simultaneous agreement by such 
                transferee to transfer to the transferor thereof 
                certificates of deposit, eligible bankers' acceptances, 
                securities, mortgage loans, or interests as described 
                above, at a date certain not later than 1 year after 
                such transfers or on demand, against the transfer of 
                funds, or any other similar agreement;
                    ``(II) does not include any repurchase obligation 
                under a participation in a commercial mortgage loan 
                unless the Corporation determines by regulation, 
                resolution, or order to include any such participation 
                within the meaning of such term;
                    ``(III) means any combination of agreements or 
                transactions referred to in subclauses (I) and (IV);
                    ``(IV) means any option to enter into any agreement 
                or transaction referred to in subclause (I) or (III);
                    ``(V) means a master agreement that provides for an 
                agreement or transaction referred to in subclause (I), 
                (III), or (IV), together with all supplements to any 
                such master agreement, without regard to whether the 
                master agreement provides for an agreement or 
                transaction that is not a repurchase agreement under 
                this clause, except that the master agreement shall be 
                considered to be a repurchase agreement under this 
                subclause only with respect to each agreement or 
                transaction under the master agreement that is referred 
                to in subclause (I), (III), or (IV); and
                    ``(VI) means any security agreement or arrangement 
                or other credit enhancement related to any agreement or 
                transaction referred to in subclause (I), (III), (IV), 
                or (V), including any guarantee or reimbursement 
                obligation in connection with any agreement or 
                transaction referred to in any such subclause.

            For purposes of this clause, the term `qualified foreign 
            government security' means 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 (as determined by regulation or 
            order adopted by the appropriate Federal banking 
            authority).''.
        (2) Insured credit unions.--Section 207(c)(8)(D)(v) of the 
    Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(v)) is amended to 
    read as follows:
                ``(v) Repurchase agreement.--The term `repurchase 
            agreement' (which definition also applies to a reverse 
            repurchase agreement)--

                    ``(I) means an agreement, including related terms, 
                which provides for the transfer of one or more 
                certificates of deposit, mortgage-related securities 
                (as such term is defined in the Securities Exchange Act 
                of 1934), mortgage loans, interests in mortgage-related 
                securities or mortgage loans, eligible bankers' 
                acceptances, qualified foreign government securities or 
                securities that are direct obligations of, or that are 
                fully guaranteed by, the United States or any agency of 
                the United States against the transfer of funds by the 
                transferee of such certificates of deposit, eligible 
                bankers' acceptances, securities, mortgage loans, or 
                interests with a simultaneous agreement by such 
                transferee to transfer to the transferor thereof 
                certificates of deposit, eligible bankers' acceptances, 
                securities, mortgage loans, or interests as described 
                above, at a date certain not later than 1 year after 
                such transfers or on demand, against the transfer of 
                funds, or any other similar agreement;
                    ``(II) does not include any repurchase obligation 
                under a participation in a commercial mortgage loan 
                unless the Board determines by regulation, resolution, 
                or order to include any such participation within the 
                meaning of such term;
                    ``(III) means any combination of agreements or 
                transactions referred to in subclauses (I) and (IV);
                    ``(IV) means any option to enter into any agreement 
                or transaction referred to in subclause (I) or (III);
                    ``(V) means a master agreement that provides for an 
                agreement or transaction referred to in subclause (I), 
                (III), or (IV), together with all supplements to any 
                such master agreement, without regard to whether the 
                master agreement provides for an agreement or 
                transaction that is not a repurchase agreement under 
                this clause, except that the master agreement shall be 
                considered to be a repurchase agreement under this 
                subclause only with respect to each agreement or 
                transaction under the master agreement that is referred 
                to in subclause (I), (III), or (IV); and
                    ``(VI) means any security agreement or arrangement 
                or other credit enhancement related to any agreement or 
                transaction referred to in subclause (I), (III), (IV), 
                or (V), including any guarantee or reimbursement 
                obligation in connection with any agreement or 
                transaction referred to in any such subclause.

            For purposes of this clause, the term `qualified foreign 
            government security' means 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 (as determined by regulation or 
            order adopted by the appropriate Federal banking 
            authority).''.
    (f) Definition of Swap Agreement.--
        (1) FDIC-insured depository institutions.--Section 
    11(e)(8)(D)(vi) of the Federal Deposit Insurance Act (12 U.S.C. 
    1821(e)(8)(D)(vi)) is amended to read as follows:
                ``(vi) Swap agreement.--The term `swap agreement' 
            means--

                    ``(I) any agreement, including the terms and 
                conditions incorporated by reference in any such 
                agreement, which is an interest rate swap, option, 
                future, or forward agreement, including a rate floor, 
                rate cap, rate collar, cross-currency rate swap, and 
                basis swap; a spot, same day-tomorrow, tomorrow-next, 
                forward, or other foreign exchange or precious metals 
                agreement; a currency swap, option, future, or forward 
                agreement; an equity index or equity swap, option, 
                future, or forward agreement; a debt index or debt 
                swap, option, future, or forward agreement; a total 
                return, credit spread or credit swap, option, future, 
                or forward agreement; a commodity index or commodity 
                swap, option, future, or forward agreement; or a 
                weather swap, weather derivative, or weather option;
                    ``(II) any agreement or transaction that is similar 
                to any other agreement or transaction referred to in 
                this clause and that is of a type that has been, is 
                presently, or in the future becomes, the subject of 
                recurrent dealings in the swap markets (including terms 
                and conditions incorporated by reference in such 
                agreement) and that is a forward, swap, future, or 
                option on one or more rates, currencies, commodities, 
                equity securities or other equity instruments, debt 
                securities or other debt instruments, quantitative 
                measures associated with an occurrence, extent of an 
                occurrence, or contingency associated with a financial, 
                commercial, or economic consequence, or economic or 
                financial indices or measures of economic or financial 
                risk or value;
                    ``(III) any combination of agreements or 
                transactions referred to in this clause;
                    ``(IV) any option to enter into any agreement or 
                transaction referred to in this clause;
                    ``(V) a master agreement that provides for an 
                agreement or transaction referred to in subclause (I), 
                (II), (III), or (IV), together with all supplements to 
                any such master agreement, without regard to whether 
                the master agreement contains an agreement or 
                transaction that is not a swap agreement under this 
                clause, except that the master agreement shall be 
                considered to be a swap agreement under this clause 
                only with respect to each agreement or transaction 
                under the master agreement that is referred to in 
                subclause (I), (II), (III), or (IV); and
                    ``(VI) any security agreement or arrangement or 
                other credit enhancement related to any agreements or 
                transactions referred to in subclause (I), (II), (III), 
                (IV), or (V), including any guarantee or reimbursement 
                obligation in connection with any agreement or 
                transaction referred to in any such subclause.

            Such term is applicable for purposes of this subsection 
            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, the Gramm-Leach-
            Bliley Act, and the Legal Certainty for Bank Products Act 
            of 2000.''.
        (2) Insured credit unions.--Section 207(c)(8)(D) of the Federal 
    Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended by adding at 
    the end the following new clause:
                ``(vi) Swap agreement.--The term `swap agreement' 
            means--

                    ``(I) any agreement, including the terms and 
                conditions incorporated by reference in any such 
                agreement, which is an interest rate swap, option, 
                future, or forward agreement, including a rate floor, 
                rate cap, rate collar, cross-currency rate swap, and 
                basis swap; a spot, same day-tomorrow, tomorrow-next, 
                forward, or other foreign exchange or precious metals 
                agreement; a currency swap, option, future, or forward 
                agreement; an equity index or equity swap, option, 
                future, or forward agreement; a debt index or debt 
                swap, option, future, or forward agreement; a total 
                return, credit spread or credit swap, option, future, 
                or forward agreement; a commodity index or commodity 
                swap, option, future, or forward agreement; or a 
                weather swap, weather derivative, or weather option;
                    ``(II) any agreement or transaction that is similar 
                to any other agreement or transaction referred to in 
                this clause and that is of a type that has been, is 
                presently, or in the future becomes, the subject of 
                recurrent dealings in the swap markets (including terms 
                and conditions incorporated by reference in such 
                agreement) and that is a forward, swap, future, or 
                option on one or more rates, currencies, commodities, 
                equity securities or other equity instruments, debt 
                securities or other debt instruments, quantitative 
                measures associated with an occurrence, extent of an 
                occurrence, or contingency associated with a financial, 
                commercial, or economic consequence, or economic or 
                financial indices or measures of economic or financial 
                risk or value;
                    ``(III) any combination of agreements or 
                transactions referred to in this clause;
                    ``(IV) any option to enter into any agreement or 
                transaction referred to in this clause;
                    ``(V) a master agreement that provides for an 
                agreement or transaction referred to in subclause (I), 
                (II), (III), or (IV), together with all supplements to 
                any such master agreement, without regard to whether 
                the master agreement contains an agreement or 
                transaction that is not a swap agreement under this 
                clause, except that the master agreement shall be 
                considered to be a swap agreement under this clause 
                only with respect to each agreement or transaction 
                under the master agreement that is referred to in 
                subclause (I), (II), (III), or (IV); and
                    ``(VI) any security agreement or arrangement or 
                other credit enhancement related to any agreements or 
                transactions referred to in subclause (I), (II), (III), 
                (IV), or (V), including any guarantee or reimbursement 
                obligation in connection with any agreement or 
                transaction referred to in any such subclause.

            Such term is applicable for purposes of this subsection 
            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, the Gramm-Leach-
            Bliley Act, and the Legal Certainty for Bank Products Act 
            of 2000.''.
    (g) Definition of Transfer.--
        (1) FDIC-insured depository institutions.--Section 
    11(e)(8)(D)(viii) of the Federal Deposit Insurance Act (12 U.S.C. 
    1821(e)(8)(D)(viii)) is amended to read as follows:
                ``(viii) Transfer.--The term `transfer' means every 
            mode, direct or indirect, absolute or conditional, 
            voluntary or involuntary, of disposing of or parting with 
            property or with an interest in property, including 
            retention of title as a security interest and foreclosure 
            of the depository institution's equity of redemption.''.
        (2) Insured credit unions.--Section 207(c)(8)(D) of the Federal 
    Credit Union Act (12 U.S.C. 1787(c)(8)(D)) (as amended by 
    subsection (f) of this section) is amended by adding at the end the 
    following new clause:
                ``(viii) Transfer.--The term `transfer' means every 
            mode, direct or indirect, absolute or conditional, 
            voluntary or involuntary, of disposing of or parting with 
            property or with an interest in property, including 
            retention of title as a security interest and foreclosure 
            of the depository institution's equity of redemption.''.
    (h) Treatment of Qualified Financial Contracts.--
        (1) FDIC-insured depository institutions.--Section 11(e)(8) of 
    the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)) is 
    amended--
            (A) in subparagraph (A)--
                (i) by striking ``paragraph (10)'' and inserting 
            ``paragraphs (9) and (10)'';
                (ii) in clause (i), by striking ``to cause the 
            termination or liquidation'' and inserting ``such person 
            has to cause the termination, liquidation, or 
            acceleration''; and
                (iii) by striking clause (ii) and inserting the 
            following new clause:
                ``(ii) any right under any security agreement or 
            arrangement or other credit enhancement related to one or 
            more qualified financial contracts described in clause 
            (i);''; and
            (B) in subparagraph (E), by striking clause (ii) and 
        inserting the following:
                ``(ii) any right under any security agreement or 
            arrangement or other credit enhancement related to one or 
            more qualified financial contracts described in clause 
            (i);''.
        (2) Insured credit unions.--Section 207(c)(8) of the Federal 
    Credit Union Act (12 U.S.C. 1787(c)(8)) is amended--
            (A) in subparagraph (A)--
                (i) by striking ``paragraph (12)'' and inserting 
            ``paragraphs (9) and (10)'';
                (ii) in clause (i), by striking ``to cause the 
            termination or liquidation'' and inserting ``such person 
            has to cause the termination, liquidation, or 
            acceleration''; and
                (iii) by striking clause (ii) and inserting the 
            following new clause:
                ``(ii) any right under any security agreement or 
            arrangement or other credit enhancement related to 1 or 
            more qualified financial contracts described in clause 
            (i);''; and
            (B) in subparagraph (E), by striking clause (ii) and 
        inserting the following new clause:
                ``(ii) any right under any security agreement or 
            arrangement or other credit enhancement related to 1 or 
            more qualified financial contracts described in clause 
            (i);''.
    (i) Avoidance of Transfers.--
        (1) FDIC-insured depository institutions.--Section 
    11(e)(8)(C)(i) of the Federal Deposit Insurance Act (12 U.S.C. 
    1821(e)(8)(C)(i)) is amended by inserting ``section 5242 of the 
    Revised Statutes of the United States or any other Federal or State 
    law relating to the avoidance of preferential or fraudulent 
    transfers,'' before ``the Corporation''.
        (2) Insured credit unions.--Section 207(c)(8)(C)(i) of the 
    Federal Credit Union Act (12 U.S.C. 1787(c)(8)(C)(i)) is amended by 
    inserting ``section 5242 of the Revised Statutes of the United 
    States or any other Federal or State law relating to the avoidance 
    of preferential or fraudulent transfers,'' before ``the Board''.

SEC. 902. AUTHORITY OF THE FDIC AND NCUAB WITH RESPECT TO FAILED AND 
              FAILING INSTITUTIONS.

    (a) Federal Deposit Insurance Corporation.--
        (1) In general.--Section 11(e)(8) of the Federal Deposit 
    Insurance Act (12 U.S.C. 1821(e)(8)) is amended--
            (A) in subparagraph (E), by striking ``other than paragraph 
        (12) of this subsection, subsection (d)(9)'' and inserting 
        ``other than subsections (d)(9) and (e)(10)''; and
            (B) by adding at the end the following new subparagraphs:
            ``(F) Clarification.--No provision of law shall be 
        construed as limiting the right or power of the Corporation, or 
        authorizing any court or agency to limit or delay, in any 
        manner, the right or power of the Corporation to transfer any 
        qualified financial contract in accordance with paragraphs (9) 
        and (10) of this subsection or to disaffirm or repudiate any 
        such contract in accordance with subsection (e)(1) of this 
        section.
            ``(G) Walkaway clauses not effective.--
                ``(i) In general.--Notwithstanding the provisions of 
            subparagraphs (A) and (E), and sections 403 and 404 of the 
            Federal Deposit Insurance Corporation Improvement Act of 
            1991, no walkaway clause shall be enforceable in a 
            qualified financial contract of an insured depository 
            institution in default.
                ``(ii) Walkaway clause defined.--For purposes of this 
            subparagraph, the term `walkaway clause' means a provision 
            in a qualified financial contract that, after calculation 
            of a value of a party's position or an amount due to or 
            from 1 of the parties in accordance with its terms upon 
            termination, liquidation, or acceleration of the qualified 
            financial contract, either does not create a payment 
            obligation of a party or extinguishes a payment obligation 
            of a party in whole or in part solely because of such 
            party's status as a nondefaulting party.''.
        (2) Technical and conforming amendment.--Section 11(e)(12)(A) 
    of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(12)(A)) is 
    amended by inserting ``or the exercise of rights or powers by'' 
    after ``the appointment of''.
    (b) National Credit Union Administration Board.--
        (1) In general.--Section 207(c)(8) of the Federal Credit Union 
    Act (12 U.S.C. 1787(c)(8)) is amended--
            (A) in subparagraph (E) (as amended by section 901(h)), by 
        striking ``other than paragraph (12) of this subsection, 
        subsection (b)(9)'' and inserting ``other than subsections 
        (b)(9) and (c)(10)''; and
            (B) by adding at the end the following new subparagraphs:
            ``(F) Clarification.--No provision of law shall be 
        construed as limiting the right or power of the Board, or 
        authorizing any court or agency to limit or delay, in any 
        manner, the right or power of the Board to transfer any 
        qualified financial contract in accordance with paragraphs (9) 
        and (10) of this subsection or to disaffirm or repudiate any 
        such contract in accordance with subsection (c)(1) of this 
        section.
            ``(G) Walkaway clauses not effective.--
                ``(i) In general.--Notwithstanding the provisions of 
            subparagraphs (A) and (E), and sections 403 and 404 of the 
            Federal Deposit Insurance Corporation Improvement Act of 
            1991, no walkaway clause shall be enforceable in a 
            qualified financial contract of an insured credit union in 
            default.
                ``(ii) Walkaway clause defined.--For purposes of this 
            subparagraph, the term `walkaway clause' means a provision 
            in a qualified financial contract that, after calculation 
            of a value of a party's position or an amount due to or 
            from 1 of the parties in accordance with its terms upon 
            termination, liquidation, or acceleration of the qualified 
            financial contract, either does not create a payment 
            obligation of a party or extinguishes a payment obligation 
            of a party in whole or in part solely because of such 
            party's status as a nondefaulting party.''.
        (2) Technical and conforming amendment.--Section 207(c)(12)(A) 
    of the Federal Credit Union Act (12 U.S.C. 1787(c)(12)(A)) is 
    amended by inserting ``or the exercise of rights or powers by'' 
    after ``the appointment of''.

SEC. 903. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED FINANCIAL 
              CONTRACTS.

    (a) FDIC-Insured Depository Institutions.--
        (1) Transfers of Qualified Financial Contracts to Financial 
    Institutions.--Section 11(e)(9) of the Federal Deposit Insurance 
    Act (12 U.S.C. 1821(e)(9)) is amended to read as follows:
        ``(9) Transfer of qualified financial contracts.--
            ``(A) In general.--In making any transfer of assets or 
        liabilities of a depository institution in default which 
        includes any qualified financial contract, the conservator or 
        receiver for such depository institution shall either--
                ``(i) transfer to one financial institution, other than 
            a financial institution for which a conservator, receiver, 
            trustee in bankruptcy, or other legal custodian has been 
            appointed or which is otherwise the subject of a bankruptcy 
            or insolvency proceeding--

                    ``(I) all qualified financial contracts between any 
                person or any affiliate of such person and the 
                depository institution in default;
                    ``(II) all claims of such person or any affiliate 
                of such person against such depository institution 
                under any such contract (other than any claim which, 
                under the terms of any such contract, is subordinated 
                to the claims of general unsecured creditors of such 
                institution);
                    ``(III) all claims of such depository institution 
                against such person or any affiliate of such person 
                under any such contract; and
                    ``(IV) all property securing or any other credit 
                enhancement for any contract described in subclause (I) 
                or any claim described in subclause (II) or (III) under 
                any such contract; or

                ``(ii) transfer none of the qualified financial 
            contracts, claims, property or other credit enhancement 
            referred to in clause (i) (with respect to such person and 
            any affiliate of such person).
            ``(B) Transfer to foreign bank, foreign financial 
        institution, or branch or agency of a foreign bank or financial 
        institution.--In transferring any qualified financial contracts 
        and related claims and property under subparagraph (A)(i), the 
        conservator or receiver for the depository institution shall 
        not make such transfer to a foreign bank, financial institution 
        organized under the laws of a foreign country, or a branch or 
        agency of a foreign bank or financial institution unless, under 
        the law applicable to such bank, financial institution, branch 
        or agency, to the qualified financial contracts, and to any 
        netting contract, any security agreement or arrangement or 
        other credit enhancement related to one or more qualified 
        financial contracts, the contractual rights of the parties to 
        such qualified financial contracts, netting contracts, security 
        agreements or arrangements, or other credit enhancements are 
        enforceable substantially to the same extent as permitted under 
        this section.
            ``(C) Transfer of contracts subject to the rules of a 
        clearing organization.--In the event that a conservator or 
        receiver transfers any qualified financial contract and related 
        claims, property, and credit enhancements pursuant to 
        subparagraph (A)(i) and such contract is cleared by or subject 
        to the rules of a clearing organization, the clearing 
        organization shall not be required to accept the transferee as 
        a member by virtue of the transfer.
            ``(D) Definitions.--For purposes of this paragraph, the 
        term `financial institution' means a broker or dealer, a 
        depository institution, a futures commission merchant, or any 
        other institution, as determined by the Corporation by 
        regulation to be a financial institution, and the term 
        `clearing organization' has the same meaning as in section 402 
        of the Federal Deposit Insurance Corporation Improvement Act of 
        1991.''.
        (2) Notice to qualified financial contract counterparties.--
    Section 11(e)(10)(A) of the Federal Deposit Insurance Act (12 
    U.S.C. 1821(e)(10)(A)) is amended in the material immediately 
    following clause (ii) by striking ``the conservator'' and all that 
    follows through the period and inserting the following: ``the 
    conservator or receiver shall notify any person who is a party to 
    any such contract of such transfer by 5:00 p.m. (eastern time) on 
    the business day following the date of the appointment of the 
    receiver in the case of a receivership, or the business day 
    following such transfer in the case of a conservatorship.''.
        (3) Rights against receiver and conservator and treatment of 
    bridge banks.--Section 11(e)(10) of the Federal Deposit Insurance 
    Act (12 U.S.C. 1821(e)(10)) is amended--
            (A) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (B) by inserting after subparagraph (A) the following new 
        subparagraphs:
            ``(B) Certain rights not enforceable.--
                ``(i) Receivership.--A person who is a party to a 
            qualified financial contract with an insured depository 
            institution may not exercise any right that such person has 
            to terminate, liquidate, or net such contract under 
            paragraph (8)(A) of this subsection or section 403 or 404 
            of the Federal Deposit Insurance Corporation Improvement 
            Act of 1991, solely by reason of or incidental to the 
            appointment of a receiver for the depository institution 
            (or the insolvency or financial condition of the depository 
            institution for which the receiver has been appointed)--

                    ``(I) until 5:00 p.m. (eastern time) on the 
                business day following the date of the appointment of 
                the receiver; or
                    ``(II) after the person has received notice that 
                the contract has been transferred pursuant to paragraph 
                (9)(A).

                ``(ii) Conservatorship.--A person who is a party to a 
            qualified financial contract with an insured depository 
            institution may not exercise any right that such person has 
            to terminate, liquidate, or net such contract under 
            paragraph (8)(E) of this subsection or section 403 or 404 
            of the Federal Deposit Insurance Corporation Improvement 
            Act of 1991, solely by reason of or incidental to the 
            appointment of a conservator for the depository institution 
            (or the insolvency or financial condition of the depository 
            institution for which the conservator has been appointed).
                ``(iii) Notice.--For purposes of this paragraph, the 
            Corporation as receiver or conservator of an insured 
            depository institution shall be deemed to have notified a 
            person who is a party to a qualified financial contract 
            with such depository institution if the Corporation has 
            taken steps reasonably calculated to provide notice to such 
            person by the time specified in subparagraph (A).
            ``(C) Treatment of bridge banks.--The following 
        institutions shall not be considered to be a financial 
        institution for which a conservator, receiver, trustee in 
        bankruptcy, or other legal custodian has been appointed or 
        which is otherwise the subject of a bankruptcy or insolvency 
        proceeding for purposes of paragraph (9):
                ``(i) A bridge bank.
                ``(ii) A depository institution organized by the 
            Corporation, for which a conservator is appointed either--

                    ``(I) immediately upon the organization of the 
                institution; or
                    ``(II) at the time of a purchase and assumption 
                transaction between the depository institution and the 
                Corporation as receiver for a depository institution in 
                default.''.

    (b) Insured Credit Unions.--
        (1) Transfers of qualified financial contracts to financial 
    institutions.--Section 207(c)(9) of the Federal Credit Union Act 
    (12 U.S.C. 1787(c)(9)) is amended to read as follows:
        ``(9) Transfer of qualified financial contracts.--
            ``(A) In general.--In making any transfer of assets or 
        liabilities of a credit union in default which includes any 
        qualified financial contract, the conservator or liquidating 
        agent for such credit union shall either--
                ``(i) transfer to 1 financial institution, other than a 
            financial institution for which a conservator, receiver, 
            trustee in bankruptcy, or other legal custodian has been 
            appointed or which is otherwise the subject of a bankruptcy 
            or insolvency proceeding--

                    ``(I) all qualified financial contracts between any 
                person or any affiliate of such person and the credit 
                union in default;
                    ``(II) all claims of such person or any affiliate 
                of such person against such credit union under any such 
                contract (other than any claim which, under the terms 
                of any such contract, is subordinated to the claims of 
                general unsecured creditors of such credit union);
                    ``(III) all claims of such credit union against 
                such person or any affiliate of such person under any 
                such contract; and
                    ``(IV) all property securing or any other credit 
                enhancement for any contract described in subclause (I) 
                or any claim described in subclause (II) or (III) under 
                any such contract; or

                ``(ii) transfer none of the qualified financial 
            contracts, claims, property or other credit enhancement 
            referred to in clause (i) (with respect to such person and 
            any affiliate of such person).
            ``(B) Transfer to foreign bank, foreign financial 
        institution, or branch or agency of a foreign bank or financial 
        institution.--In transferring any qualified financial contracts 
        and related claims and property under subparagraph (A)(i), the 
        conservator or liquidating agent for the credit union shall not 
        make such transfer to a foreign bank, financial institution 
        organized under the laws of a foreign country, or a branch or 
        agency of a foreign bank or financial institution unless, under 
        the law applicable to such bank, financial institution, branch 
        or agency, to the qualified financial contracts, and to any 
        netting contract, any security agreement or arrangement or 
        other credit enhancement related to 1 or more qualified 
        financial contracts, the contractual rights of the parties to 
        such qualified financial contracts, netting contracts, security 
        agreements or arrangements, or other credit enhancements are 
        enforceable substantially to the same extent as permitted under 
        this section.
            ``(C) Transfer of contracts subject to the rules of a 
        clearing organization.--In the event that a conservator or 
        liquidating agent transfers any qualified financial contract 
        and related claims, property, and credit enhancements pursuant 
        to subparagraph (A)(i) and such contract is cleared by or 
        subject to the rules of a clearing organization, the clearing 
        organization shall not be required to accept the transferee as 
        a member by virtue of the transfer.
            ``(D) Definitions.--For purposes of this paragraph--
                ``(i) the term `financial institution' means a broker 
            or dealer, a depository institution, a futures commission 
            merchant, a credit union, or any other institution, as 
            determined by the Board by regulation to be a financial 
            institution; and
                ``(ii) the term `clearing organization' has the same 
            meaning as in section 402 of the Federal Deposit Insurance 
            Corporation Improvement Act of 1991.''.
        (2) Notice to qualified financial contract counterparties.--
    Section 207(c)(10)(A) of the Federal Credit Union Act (12 U.S.C. 
    1787(c)(10)(A)) is amended in the material immediately following 
    clause (ii) by striking ``the conservator'' and all that follows 
    through the period and inserting the following: ``the conservator 
    or liquidating agent shall notify any person who is a party to any 
    such contract of such transfer by 5:00 p.m. (eastern time) on the 
    business day following the date of the appointment of the 
    liquidating agent in the case of a liquidation, or the business day 
    following such transfer in the case of a conservatorship.''.
        (3) Rights against liquidating agent and conservator and 
    treatment of bridge banks.--Section 207(c)(10) of the Federal 
    Credit Union Act (12 U.S.C. 1787(c)(10)) is amended--
            (A) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (B) by inserting after subparagraph (A) the following new 
        subparagraphs:
            ``(B) Certain rights not enforceable.--
                ``(i) Liquidation.--A person who is a party to a 
            qualified financial contract with an insured credit union 
            may not exercise any right that such person has to 
            terminate, liquidate, or net such contract under paragraph 
            (8)(A) of this subsection or section 403 or 404 of the 
            Federal Deposit Insurance Corporation Improvement Act of 
            1991, solely by reason of or incidental to the appointment 
            of a liquidating agent for the credit union institution (or 
            the insolvency or financial condition of the credit union 
            for which the liquidating agent has been appointed)--

                    ``(I) until 5:00 p.m. (eastern time) on the 
                business day following the date of the appointment of 
                the liquidating agent; or
                    ``(II) after the person has received notice that 
                the contract has been transferred pursuant to paragraph 
                (9)(A).

                ``(ii) Conservatorship.--A person who is a party to a 
            qualified financial contract with an insured credit union 
            may not exercise any right that such person has to 
            terminate, liquidate, or net such contract under paragraph 
            (8)(E) of this subsection or section 403 or 404 of the 
            Federal Deposit Insurance Corporation Improvement Act of 
            1991, solely by reason of or incidental to the appointment 
            of a conservator for the credit union or the insolvency or 
            financial condition of the credit union for which the 
            conservator has been appointed).
                ``(iii) Notice.--For purposes of this paragraph, the 
            Board as conservator or liquidating agent of an insured 
            credit union shall be deemed to have notified a person who 
            is a party to a qualified financial contract with such 
            credit union if the Board has taken steps reasonably 
            calculated to provide notice to such person by the time 
            specified in subparagraph (A).
            ``(C) Treatment of bridge banks.--The following 
        institutions shall not be considered to be a financial 
        institution for which a conservator, receiver, trustee in 
        bankruptcy, or other legal custodian has been appointed or 
        which is otherwise the subject of a bankruptcy or insolvency 
        proceeding for purposes of paragraph (9):
                ``(i) A bridge bank.
                ``(ii) A credit union organized by the Board, for which 
            a conservator is appointed either--

                    ``(I) immediately upon the organization of the 
                credit union; or
                    ``(II) at the time of a purchase and assumption 
                transaction between the credit union and the Board as 
                receiver for a credit union in default.''.

SEC. 904. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF 
              QUALIFIED FINANCIAL CONTRACTS.

    (a) FDIC-Insured Depository Institutions.--Section 11(e) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)) is amended--
        (1) by redesignating paragraphs (11) through (15) as paragraphs 
    (12) through (16), respectively;
        (2) by inserting after paragraph (10) the following new 
    paragraph:
        ``(11) Disaffirmance or repudiation of qualified financial 
    contracts.--In exercising the rights of disaffirmance or 
    repudiation of a conservator or receiver with respect to any 
    qualified financial contract to which an insured depository 
    institution is a party, the conservator or receiver for such 
    institution shall either--
            ``(A) disaffirm or repudiate all qualified financial 
        contracts between--
                ``(i) any person or any affiliate of such person; and
                ``(ii) the depository institution in default; or
            ``(B) disaffirm or repudiate none of the qualified 
        financial contracts referred to in subparagraph (A) (with 
        respect to such person or any affiliate of such person).''; and
        (3) by adding at the end the following new paragraph:
        ``(17) Savings clause.--The meanings of terms used in this 
    subsection are applicable for purposes of this subsection only, and 
    shall not be construed or applied so as to challenge or affect the 
    characterization, definition, or treatment of any similar terms 
    under any other statute, regulation, or rule, including the Gramm-
    Leach-Bliley Act, the Legal Certainty for Bank Products Act of 
    2000, the securities laws (as that term is defined in section 
    3(a)(47) of the Securities Exchange Act of 1934), and the Commodity 
    Exchange Act.''.
    (b) Insured Credit Unions.--Section 207(c) of the Federal Credit 
Union Act (12 U.S.C. 1787(c)) is amended--
        (1) by redesignating paragraphs (11), (12), and (13) as 
    paragraphs (12), (13), and (14), respectively;
        (2) by inserting after paragraph (10) the following new 
    paragraph:
        ``(11) Disaffirmance or repudiation of qualified financial 
    contracts.--In exercising the rights of disaffirmance or 
    repudiation of a conservator or liquidating agent with respect to 
    any qualified financial contract to which an insured credit union 
    is a party, the conservator or liquidating agent for such credit 
    union shall either--
            ``(A) disaffirm or repudiate all qualified financial 
        contracts between--
                ``(i) any person or any affiliate of such person; and
                ``(ii) the credit union in default; or
            ``(B) disaffirm or repudiate none of the qualified 
        financial contracts referred to in subparagraph (A) (with 
        respect to such person or any affiliate of such person).''; and
        (3) by adding at the end the following new paragraph:
        ``(15) Savings clause.--The meanings of terms used in this 
    subsection are applicable for purposes of this subsection only, and 
    shall not be construed or applied so as to challenge or affect the 
    characterization, definition, or treatment of any similar terms 
    under any other statute, regulation, or rule, including the Gramm-
    Leach-Bliley Act, the Legal Certainty for Bank Products Act of 
    2000, the securities laws (as that term is defined in section 
    (a)(47) of the Securities Exchange Act of 1934), and the Commodity 
    Exchange Act.''.

SEC. 905. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.

    (a) FDIC-Insured Depository Institutions.--Section 11(e)(8)(D)(vii) 
of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(vii)) is 
amended to read as follows:
                ``(vii) Treatment of master agreement as one 
            agreement.--Any master agreement for any contract or 
            agreement described in any preceding clause of this 
            subparagraph (or any master agreement for such master 
            agreement or agreements), together with all supplements to 
            such master agreement, shall be treated as a single 
            agreement and a single qualified financial contract. If a 
            master agreement contains provisions relating to agreements 
            or transactions that are not themselves qualified financial 
            contracts, the master agreement shall be deemed to be a 
            qualified financial contract only with respect to those 
            transactions that are themselves qualified financial 
            contracts.''.
    (b) Insured Credit Unions.--Section 207(c)(8)(D) of the Federal 
Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended by inserting 
after clause (vi) (as added by section 901(f)) the following new 
clause:
                ``(vii) Treatment of master agreement as one 
            agreement.--Any master agreement for any contract or 
            agreement described in any preceding clause of this 
            subparagraph (or any master agreement for such master 
            agreement or agreements), together with all supplements to 
            such master agreement, shall be treated as a single 
            agreement and a single qualified financial contract. If a 
            master agreement contains provisions relating to agreements 
            or transactions that are not themselves qualified financial 
            contracts, the master agreement shall be deemed to be a 
            qualified financial contract only with respect to those 
            transactions that are themselves qualified financial 
            contracts.''.

SEC. 906. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 
              1991.

    (a) Definitions.--Section 402 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4402) is amended--
        (1) in paragraph (2)--
            (A) in subparagraph (A)(ii), by inserting before the 
        semicolon ``, or is exempt from such registration by order of 
        the Securities and Exchange Commission''; and
            (B) in subparagraph (B), by inserting before the period ``, 
        that has been granted an exemption under section 4(c)(1) of the 
        Commodity Exchange Act, or that is a multilateral clearing 
        organization (as defined in section 408 of this Act)'';
        (2) in paragraph (6)--
            (A) by redesignating subparagraphs (B) through (D) as 
        subparagraphs (C) through (E), respectively;
            (B) by inserting after subparagraph (A) the following new 
        subparagraph:
            ``(B) an uninsured national bank or an uninsured State bank 
        that is a member of the Federal Reserve System, if the national 
        bank or State member bank is not eligible to make application 
        to become an insured bank under section 5 of the Federal 
        Deposit Insurance Act;''; and
            (C) by amending subparagraph (C), so redesignated, to read 
        as follows:
            ``(C) a branch or agency of a foreign bank, a foreign bank 
        and any branch or agency of the foreign bank, or the foreign 
        bank that established the branch or agency, as those terms are 
        defined in section 1(b) of the International Banking Act of 
        1978;'';
        (3) in paragraph (11), by inserting before the period ``and any 
    other clearing organization with which such clearing organization 
    has a netting contract'';
        (4) by amending paragraph (14)(A)(i) to read as follows:
                ``(i) means a contract or agreement between 2 or more 
            financial institutions, clearing organizations, or members 
            that provides for netting present or future payment 
            obligations or payment entitlements (including liquidation 
            or close out values relating to such obligations or 
            entitlements) among the parties to the agreement; and''; 
            and
        (5) by adding at the end the following new paragraph:
        ``(15) Payment.--The term `payment' means a payment of United 
    States dollars, another currency, or a composite currency, and a 
    noncash delivery, including a payment or delivery to liquidate an 
    unmatured obligation.''.
    (b) Enforceability of Bilateral Netting Contracts.--Section 403 of 
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 4403) is amended--
        (1) by striking subsection (a) and inserting the following:
    ``(a) General Rule.--Notwithstanding any other provision of State 
or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act, paragraphs (8)(E), 
(8)(F), and (10)(B) of section 207(c) of the Federal Credit Union Act, 
or any order authorized under section 5(b)(2) of the Securities 
Investor Protection Act of 1970), the covered contractual payment 
obligations and the covered contractual payment entitlements between 
any 2 financial institutions shall be netted in accordance with, and 
subject to the conditions of, the terms of any applicable netting 
contract (except as provided in section 561(b)(2) of title 11, United 
States Code).''; and
        (2) by adding at the end the following new subsection:
    ``(f) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to one or more netting contracts between any 2 financial institutions 
shall be enforceable in accordance with their terms (except as provided 
in section 561(b)(2) of title 11, United States Code), and shall not be 
stayed, avoided, or otherwise limited by any State or Federal law 
(other than paragraphs (8)(E), (8)(F), and (10)(B) of section 11(e) of 
the Federal Deposit Insurance Act, paragraphs (8)(E), (8)(F), and 
(10)(B) of section 207(c) of the Federal Credit Union Act, and section 
5(b)(2) of the Securities Investor Protection Act of 1970).''.
    (c) Enforceability of Clearing Organization Netting Contracts.--
Section 404 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 4404) is amended--
        (1) by striking subsection (a) and inserting the following:
    ``(a) General Rule.--Notwithstanding any other provision of State 
or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act, paragraphs (8)(E), 
(8)(F), and (10)(B) of section 207(c) of the Federal Credit Union Act, 
and any order authorized under section 5(b)(2) of the Securities 
Investor Protection Act of 1970), the covered contractual payment 
obligations and the covered contractual payment entitlements of a 
member of a clearing organization to and from all other members of a 
clearing organization shall be netted in accordance with and subject to 
the conditions of any applicable netting contract (except as provided 
in section 561(b)(2) of title 11, United States Code).''; and
        (2) by adding at the end the following new subsection:
    ``(h) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to one or more netting contracts between any 2 members of a clearing 
organization shall be enforceable in accordance with their terms 
(except as provided in section 561(b)(2) of title 11, United States 
Code), and shall not be stayed, avoided, or otherwise limited by any 
State or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) 
of section 11(e) of the Federal Deposit Insurance Act, paragraphs 
(8)(E), (8)(F), and (10)(B) of section 207(c) of the Federal Credit 
Union Act, and section 5(b)(2) of the Securities Investor Protection 
Act of 1970).''.
    (d) Enforceability of Contracts With Uninsured National Banks, 
Uninsured Federal Branches and Agencies, Certain Uninsured State Member 
Banks, and Edge Act Corporations.--The Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4401 et seq.) is 
amended--
        (1) by redesignating section 407 as section 407A; and
        (2) by inserting after section 406 the following new section:

``SEC. 407. TREATMENT OF CONTRACTS WITH UNINSURED NATIONAL BANKS, 
              UNINSURED FEDERAL BRANCHES AND AGENCIES, CERTAIN 
              UNINSURED STATE MEMBER BANKS, AND EDGE ACT CORPORATIONS.

    ``(a) In General.--Notwithstanding any other provision of law, 
paragraphs (8), (9), (10), and (11) of section 11(e) of the Federal 
Deposit Insurance Act shall apply to an uninsured national bank or 
uninsured Federal branch or Federal agency, a corporation chartered 
under section 25A of the Federal Reserve Act, or an uninsured State 
member bank which operates, or operates as, a multilateral clearing 
organization pursuant to section 409 of this Act, except that for such 
purpose--
        ``(1) any reference to the `Corporation as receiver' or `the 
    receiver or the Corporation' shall refer to the receiver appointed 
    by the Comptroller of the Currency in the case of an uninsured 
    national bank or uninsured Federal branch or agency, or to the 
    receiver appointed by the Board of Governors of the Federal Reserve 
    System in the case of a corporation chartered under section 25A of 
    the Federal Reserve Act or an uninsured State member bank;
        ``(2) any reference to the `Corporation' (other than in section 
    11(e)(8)(D) of such Act), the `Corporation, whether acting as such 
    or as conservator or receiver', a `receiver', or a `conservator' 
    shall refer to the receiver or conservator appointed by the 
    Comptroller of the Currency in the case of an uninsured national 
    bank or uninsured Federal branch or agency, or to the receiver or 
    conservator appointed by the Board of Governors of the Federal 
    Reserve System in the case of a corporation chartered under section 
    25A of the Federal Reserve Act or an uninsured State member bank; 
    and
        ``(3) any reference to an `insured depository institution' or 
    `depository institution' shall refer to an uninsured national bank, 
    an uninsured Federal branch or Federal agency, a corporation 
    chartered under section 25A of the Federal Reserve Act, or an 
    uninsured State member bank which operates, or operates as, a 
    multilateral clearing organization pursuant to section 409 of this 
    Act.
    ``(b) Liability.--The liability of a receiver or conservator of an 
uninsured national bank, uninsured Federal branch or agency, a 
corporation chartered under section 25A of the Federal Reserve Act, or 
an uninsured State member bank which operates, or operates as, a 
multilateral clearing organization pursuant to section 409 of this Act, 
shall be determined in the same manner and subject to the same 
limitations that apply to receivers and conservators of insured 
depository institutions under section 11(e) of the Federal Deposit 
Insurance Act.
    ``(c) Regulatory Authority.--
        ``(1) In general.--The Comptroller of the Currency in the case 
    of an uninsured national bank or uninsured Federal branch or agency 
    and the Board of Governors of the Federal Reserve System in the 
    case of a corporation chartered under section 25A of the Federal 
    Reserve Act, or an uninsured State member bank that operates, or 
    operates as, a multilateral clearing organization pursuant to 
    section 409 of this Act, in consultation with the Federal Deposit 
    Insurance Corporation, may each promulgate regulations solely to 
    implement this section.
        ``(2) Specific requirement.--In promulgating regulations, 
    limited solely to implementing paragraphs (8), (9), (10), and (11) 
    of section 11(e) of the Federal Deposit Insurance Act, the 
    Comptroller of the Currency and the Board of Governors of the 
    Federal Reserve System each shall ensure that the regulations 
    generally are consistent with the regulations and policies of the 
    Federal Deposit Insurance Corporation adopted pursuant to the 
    Federal Deposit Insurance Act.
    ``(d) Definitions.--For purposes of this section, the terms 
`Federal branch', `Federal agency', and `foreign bank' have the same 
meanings as in section 1(b) of the International Banking Act of 
1978.''.

SEC. 907. BANKRUPTCY LAW 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) any combination of agreements or transactions 
        referred to in subparagraphs (A) and (C);
            ``(C) any option to enter into an agreement or transaction 
        referred to in subparagraph (A) or (B);
            ``(D) a master agreement that provides for an agreement or 
        transaction referred to in subparagraph (A), (B), or (C), 
        together with all supplements to any such master agreement, 
        without regard to whether such master agreement provides for an 
        agreement or transaction that is not a forward contract under 
        this paragraph, except that such master agreement shall be 
        considered to be a forward contract under this paragraph only 
        with respect to each agreement or transaction under such master 
        agreement that is referred to in subparagraph (A), (B), or (C); 
        or
            ``(E) any security agreement or arrangement, or other 
        credit enhancement related to any agreement or transaction 
        referred to in subparagraph (A), (B), (C), or (D), including 
        any guarantee or reimbursement obligation by or to a forward 
        contract merchant or financial participant in connection with 
        any agreement or transaction referred to in any such 
        subparagraph, but not to exceed the damages in connection with 
        any such agreement or transaction, measured in accordance with 
        section 562;'';
            (B) in paragraph (46), by striking ``on any day during the 
        period beginning 90 days before the date of'' and inserting 
        ``at any time before'';
            (C) by amending paragraph (47) to read as follows:
        ``(47) `repurchase agreement' (which definition also applies to 
    a reverse repurchase agreement)--
            ``(A) means--
                ``(i) an agreement, including related terms, which 
            provides for the transfer of one or more certificates of 
            deposit, mortgage related securities (as defined in section 
            3 of the Securities Exchange Act of 1934), mortgage loans, 
            interests in mortgage related securities or mortgage loans, 
            eligible bankers' acceptances, qualified foreign government 
            securities (defined as 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 securities that are direct 
            obligations of, or that are fully guaranteed by, the United 
            States or any agency of the United States against the 
            transfer of funds by the transferee of such certificates of 
            deposit, eligible bankers' acceptances, securities, 
            mortgage loans, or interests, with a simultaneous agreement 
            by such transferee to transfer to the transferor thereof 
            certificates of deposit, eligible bankers' acceptance, 
            securities, mortgage loans, or interests of the kind 
            described in this clause, at a date certain not later than 
            1 year after such transfer or on demand, against the 
            transfer of funds;
                ``(ii) any 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);
                ``(iv) a master agreement that provides for an 
            agreement or transaction referred to in clause (i), (ii), 
            or (iii), together with all supplements to any such master 
            agreement, without regard to whether such master agreement 
            provides for an agreement or transaction that is not a 
            repurchase agreement under this paragraph, except that such 
            master agreement shall be considered to be a repurchase 
            agreement under this paragraph only with respect to each 
            agreement or transaction under the master agreement that is 
            referred to in clause (i), (ii), or (iii); or
                ``(v) any security agreement or arrangement or other 
            credit enhancement related to any agreement or transaction 
            referred to in clause (i), (ii), (iii), or (iv), including 
            any guarantee or reimbursement obligation by or to a repo 
            participant or financial participant in connection with any 
            agreement or transaction referred to in any such clause, 
            but not to exceed the damages in connection with any such 
            agreement or transaction, measured in accordance with 
            section 562 of this title; and
            ``(B) does not include a repurchase obligation under a 
        participation in a commercial mortgage loan;'';
            (D) 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
            (E) by amending paragraph (53B) to read as follows:
        ``(53B) `swap agreement'--
            ``(A) means--
                ``(i) any agreement, including the terms and conditions 
            incorporated by reference in such agreement, which 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 equity swap, option, 
                future, or forward agreement;
                    ``(V) a debt index or debt swap, option, future, or 
                forward agreement;
                    ``(VI) a total return, credit spread or credit 
                swap, option, future, or forward agreement;
                    ``(VII) a commodity index or a commodity swap, 
                option, future, or forward agreement; or
                    ``(VIII) a weather swap, weather derivative, or 
                weather option;

                ``(ii) any agreement or transaction that is similar to 
            any other agreement or transaction referred to in this 
            paragraph and that--

                    ``(I) is of a type that has been, is presently, or 
                in the future becomes, the subject of recurrent 
                dealings in the swap markets (including terms and 
                conditions incorporated by reference therein); and
                    ``(II) is a forward, swap, future, or option on one 
                or more rates, currencies, commodities, equity 
                securities, or other equity instruments, debt 
                securities or other debt instruments, quantitative 
                measures associated with an occurrence, extent of an 
                occurrence, or contingency associated with a financial, 
                commercial, or economic consequence, or economic or 
                financial indices or measures of economic or financial 
                risk or value;

                ``(iii) any combination of agreements or transactions 
            referred to in this subparagraph;
                ``(iv) any option to enter into an agreement or 
            transaction referred to in this subparagraph;
                ``(v) a master agreement that provides for an agreement 
            or transaction referred to in clause (i), (ii), (iii), or 
            (iv), together with all supplements to any such master 
            agreement, and without regard to whether the master 
            agreement contains an agreement or transaction that is not 
            a swap agreement under this paragraph, except that the 
            master agreement shall be considered to be a swap agreement 
            under this paragraph only with respect to each agreement or 
            transaction under the master agreement that is referred to 
            in clause (i), (ii), (iii), or (iv); or
                ``(vi) any security agreement or arrangement or other 
            credit enhancement related to any agreements or 
            transactions referred to in clause (i) through (v), 
            including any guarantee or reimbursement obligation by or 
            to a swap participant or financial participant in 
            connection with any agreement or transaction referred to in 
            any such clause, but not to exceed the damages in 
            connection with any such agreement or transaction, measured 
            in accordance with section 562; and
            ``(B) 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, 
        the Gramm-Leach-Bliley Act, and the Legal Certainty for Bank 
        Products Act of 2000;'';
        (2) in section 741(7), 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 certificate of deposit, a mortgage loan or any 
            interest in a mortgage loan, a group or index of 
            securities, certificates of deposit, 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 such security, 
            certificate of deposit, mortgage loan, interest, group or 
            index, or option, and including any repurchase or reverse 
            repurchase transaction on any such security, certificate of 
            deposit, mortgage loan, interest, group or index, or 
            option;
                ``(ii) any option entered into on a national securities 
            exchange relating to foreign currencies;
                ``(iii) the guarantee by or to any securities clearing 
            agency of a settlement of cash, securities, certificates of 
            deposit, 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 such security, certificate 
            of deposit, mortgage loan, interest, group or index, or 
            option;
                ``(iv) any margin loan;
                ``(v) any other agreement or transaction that is 
            similar to an agreement or transaction referred to in this 
            subparagraph;
                ``(vi) any combination of the agreements or 
            transactions referred to in this subparagraph;
                ``(vii) any option to enter into any agreement or 
            transaction referred to in this subparagraph;
                ``(viii) a master 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 any such master agreement, without regard to 
            whether the master agreement provides for an agreement or 
            transaction that is not a securities contract under this 
            subparagraph, except that such master agreement shall be 
            considered to be a securities contract under this 
            subparagraph only with respect to each agreement or 
            transaction under such master agreement that is referred to 
            in clause (i), (ii), (iii), (iv), (v), (vi), or (vii); or
                ``(ix) any security agreement or arrangement or other 
            credit enhancement related to any agreement or transaction 
            referred to in this subparagraph, including any guarantee 
            or reimbursement obligation by or to a stockbroker, 
            securities clearing agency, financial institution, or 
            financial participant in connection with any agreement or 
            transaction referred to in this subparagraph, but not to 
            exceed the damages in connection with any such agreement or 
            transaction, measured in accordance with section 562; and
            ``(B) does not include any 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); and
            (B) 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) any combination of the agreements or transactions 
        referred to in this paragraph;
            ``(H) any option to enter into an agreement or transaction 
        referred to in this paragraph;
            ``(I) a master 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 agreement, without regard to whether the master 
        agreement provides for an agreement or transaction that is not 
        a commodity contract under this paragraph, except that the 
        master agreement shall be considered to be a commodity contract 
        under this paragraph only with respect to each agreement or 
        transaction under the master agreement that is referred to in 
        subparagraph (A), (B), (C), (D), (E), (F), (G), or (H); or
            ``(J) any security agreement or arrangement or other credit 
        enhancement related to any agreement or transaction referred to 
        in this paragraph, including any guarantee or reimbursement 
        obligation by or to a commodity broker or financial participant 
        in connection with any agreement or transaction referred to in 
        this paragraph, but not to exceed the damages in connection 
        with any such agreement or transaction, measured in accordance 
        with section 562;''.
    (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) a Federal reserve bank, or an entity (domestic or 
        foreign) that is a commercial or savings bank, industrial 
        savings bank, savings and loan association, trust company, 
        federally-insured credit union, or receiver, liquidating agent, 
        or conservator for such entity and, when any such Federal 
        reserve bank, receiver, liquidating agent, 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) an investment company registered under the 
        Investment Company Act of 1940;'';
        (2) by inserting after paragraph (22) the following:
        ``(22A) `financial participant' means--
            ``(A) an entity that, at the time it enters into a 
        securities contract, commodity contract, swap agreement, 
        repurchase agreement, or forward contract, or at the time of 
        the date of the filing of the petition, has one or more 
        agreements or transactions described in paragraph (1), (2), 
        (3), (4), (5), or (6) of section 561(a) 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 one or 
        more such agreements or transactions with the debtor or any 
        other entity (other than an affiliate) on any day during the 
        previous 15-month period; or
            ``(B) a clearing organization (as defined in section 402 of 
        the Federal Deposit Insurance Corporation Improvement Act of 
        1991);''; 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 in a 
    commodity (as defined in section 761) or any similar good, article, 
    service, right, or interest which is presently or in the future 
    becomes the subject of dealing 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) `master netting agreement'--
            ``(A) means an agreement providing for the exercise of 
        rights, including rights of netting, setoff, liquidation, 
        termination, acceleration, or close out, under or in connection 
        with one or more contracts that are described in any one or 
        more of paragraphs (1) through (5) of section 561(a), or any 
        security agreement or arrangement or other credit enhancement 
        related to one or more of the foregoing, including any 
        guarantee or reimbursement obligation related to 1 or more of 
        the foregoing; and
            ``(B) if the agreement contains provisions relating to 
        agreements or transactions that are not contracts described in 
        paragraphs (1) through (5) of section 561(a), shall be deemed 
        to be a master netting agreement only with respect to those 
        agreements or transactions that are described in any one or 
        more of paragraphs (1) through (5) of section 561(a);
        ``(38B) `master netting agreement participant' means an entity 
    that, at any time before the date of 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 sections 224, 303, 311, 401, and 718, is 
    amended--
            (A) in paragraph (6), by inserting ``, pledged to, under 
        the control of,'' after ``held by'';
            (B) in paragraph (7), by inserting ``, pledged to, 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 or financial participant of a mutual debt and claim 
    under or in connection with one or more swap 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 any swap agreement against any payment due to 
    the debtor from the swap participant or financial participant under 
    or in connection with any swap agreement or against cash, 
    securities, or other property held by, pledged to, under the 
    control of, or due from such swap participant or financial 
    participant to margin, guarantee, secure, or settle any swap 
    agreement;''; and
            (D) by inserting after paragraph (26) the following:
        ``(27) under subsection (a), of the setoff by a master netting 
    agreement participant of a mutual debt and claim under or in 
    connection with one 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 to, 
    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 that 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; and''.
        (2) Limitation.--Section 362 of title 11, United States Code, 
    as amended by sections 106, 305, 311, and 441, is amended by adding 
    at the end the following:
    ``(o) The exercise of rights not subject to the stay arising under 
subsection (a) pursuant to paragraph (6), (7), (17), or (27) of 
subsection (b) shall not be stayed by any 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)--
            (A) by striking ``under a swap agreement'';
            (B) by striking ``in connection with a swap agreement'' and 
        inserting ``under or in connection with any swap agreement''; 
        and
            (C) by inserting ``or financial participant'' after ``swap 
        participant''; and
        (2) by adding at the end the following:
    ``(j) Notwithstanding sections 544, 545, 547, 548(a)(1)(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, except under section 
548(a)(1)(A) 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.''.
    (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'' at the end;
        (2) in subparagraph (D), by striking the period 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 that, 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 amending the section heading to read as follows:

``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 amending the section heading to read as follows:

``Sec. 556. Contractual right to liquidate, terminate, or accelerate a 
            commodities contract or forward contract'';

        (2) in the first sentence, by striking ``liquidation'' and 
    inserting ``liquidation, termination, or acceleration''; and
        (3) in the second sentence, by striking ``As used'' and all 
    that follows through ``right,'' and inserting ``As used in this 
    section, the term `contractual right' includes a right set forth in 
    a rule or bylaw of a derivatives clearing organization (as defined 
    in the Commodity Exchange Act), a multilateral clearing 
    organization (as defined in the Federal Deposit Insurance 
    Corporation Improvement Act of 1991), a national securities 
    exchange, a national securities association, a securities clearing 
    agency, a contract market designated under the Commodity Exchange 
    Act, a derivatives transaction execution facility registered under 
    the Commodity Exchange Act, or a board of trade (as defined in the 
    Commodity Exchange Act) or in a resolution of the governing board 
    thereof and a right,''.
    (i) Termination or Acceleration of Repurchase Agreements.--Section 
559 of title 11, United States Code, is amended--
        (1) by amending the section heading to read as follows:

``Sec. 559. Contractual right to liquidate, terminate, or accelerate a 
            repurchase agreement'';

        (2) in the first sentence, by striking ``liquidation'' and 
    inserting ``liquidation, termination, or acceleration''; and
        (3) in the third sentence, by striking ``As used'' and all that 
    follows through ``right,'' and inserting ``As used in this section, 
    the term `contractual right' includes a right set forth in a rule 
    or bylaw of a derivatives clearing organization (as defined in the 
    Commodity Exchange Act), a multilateral clearing organization (as 
    defined in the Federal Deposit Insurance Corporation Improvement 
    Act of 1991), a national securities exchange, a national securities 
    association, a securities clearing agency, a contract market 
    designated under the Commodity Exchange Act, a derivatives 
    transaction execution facility registered under the Commodity 
    Exchange Act, or a board of trade (as defined in the Commodity 
    Exchange Act) or in a resolution of the governing board thereof and 
    a right,''.
    (j) Liquidation, Termination, or Acceleration of Swap Agreements.--
Section 560 of title 11, United States Code, is amended--
        (1) by amending the section heading to read as follows:

``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 one or more swap agreements'';
        (3) by striking ``in connection with any swap agreement'' and 
    inserting ``in connection with the termination, liquidation, or 
    acceleration of one or more swap agreements''; and
        (4) in the second sentence, by striking ``As used'' and all 
    that follows through ``right,'' and inserting ``As used in this 
    section, the term `contractual right' includes a right set forth in 
    a rule or bylaw of a derivatives clearing organization (as defined 
    in the Commodity Exchange Act), a multilateral clearing 
    organization (as defined in the Federal Deposit Insurance 
    Corporation Improvement Act of 1991), a national securities 
    exchange, a national securities association, a securities clearing 
    agency, a contract market designated under the Commodity Exchange 
    Act, a derivatives transaction execution facility registered under 
    the Commodity Exchange Act, or a board of trade (as defined in the 
    Commodity Exchange Act) or in a resolution of the governing board 
    thereof and a right,''.
    (k) Liquidation, Termination, Acceleration, or Offset Under a 
Master Netting Agreement and Across Contracts.--
        (1) In general.--Title 11, United States Code, is amended by 
    inserting after section 560 the following:

``Sec. 561. Contractual right to terminate, liquidate, accelerate, or 
            offset under a master netting agreement and across 
            contracts; proceedings under chapter 15

    ``(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 one or more (or the 
termination, liquidation, or acceleration of one 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--
        ``(A) a party may not net or offset an obligation to the debtor 
    arising under, or in connection with, a commodity contract traded 
    on or subject to the rules of a contract market designated under 
    the Commodity Exchange Act or a derivatives transaction execution 
    facility registered under the Commodity Exchange Act 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 positive net equity in the commodity 
    accounts at the debtor, as calculated under such subchapter; 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 and traded on or subject to the rules of a contract 
    market designated under the Commodity Exchange Act or a derivatives 
    transaction execution facility registered under the Commodity 
    Exchange Act against any claim arising under, or in connection 
    with, other instruments, contracts, or agreements listed in 
    subsection (a).
    ``(3) No provision of subparagraph (A) or (B) of paragraph (2) 
shall prohibit the offset of claims and obligations that arise under--
        ``(A) a cross-margining agreement or similar arrangement that 
    has been approved by the Commodity Futures Trading Commission or 
    submitted to the Commodity Futures Trading Commission under 
    paragraph (1) or (2) of section 5c(c) of the Commodity Exchange Act 
    and has not been abrogated or rendered ineffective by the Commodity 
    Futures Trading Commission; or
        ``(B) any other netting agreement between a clearing 
    organization (as defined in section 761) and another entity that 
    has been approved by the Commodity Futures Trading Commission.
    ``(c) As used in this section, the term `contractual right' 
includes a right set forth in a rule or bylaw of a derivatives clearing 
organization (as defined in the Commodity Exchange Act), a multilateral 
clearing organization (as defined in the Federal Deposit Insurance 
Corporation Improvement Act of 1991), a national securities exchange, a 
national securities association, a securities clearing agency, a 
contract market designated under the Commodity Exchange Act, a 
derivatives transaction execution facility registered under the 
Commodity Exchange Act, or a board of trade (as defined in the 
Commodity Exchange Act) 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.
    ``(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 under chapter 15, so that enforcement of contractual 
provisions of such contracts and agreements in accordance with their 
terms will not be stayed or otherwise limited by operation of any 
provision of this title or by order of a court in any case under this 
title, and to limit avoidance powers to the same extent as in a 
proceeding under chapter 7 or 11 of this title (such enforcement not to 
be limited based on the presence or absence of assets of the debtor in 
the United States).''.
        (2) 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 560 the following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
          under a master netting agreement and across contracts; 
          proceedings under chapter 15.''.
    (l) 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, financial participants, 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, financial participant, 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.''.
    (m) 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, 
            financial participants, 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, financial participant, 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) Setoff.--Section 553 of title 11, United States Code, is 
amended--
        (1) in subsection (a)(2)(B)(ii), by inserting before the 
    semicolon the following: ``(except for a setoff of a kind described 
    in section 362(b)(6), 362(b)(7), 362(b)(17), 362(b)(27), 555, 556, 
    559, 560, or 561)'';
        (2) in subsection (a)(3)(C), by inserting before the period the 
    following: ``(except for a setoff of a kind described in section 
    362(b)(6), 362(b)(7), 362(b)(17), 362(b)(27), 555, 556, 559, 560, 
    or 561)''; and
        (3) in subsection (b)(1), by striking ``362(b)(14),'' and 
    inserting ``362(b)(17), 362(b)(27), 555, 556, 559, 560, 561,''.
    (o) 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 sections 362(b)(7) and 546(f), by inserting ``or 
    financial participant'' after ``repo participant'' each place such 
    term appears;
        (3) in section 546(e), by inserting ``financial participant,'' 
    after ``financial institution,'';
        (4) in section 548(d)(2)(B), by inserting ``financial 
    participant,'' after ``financial institution,'';
        (5) in section 548(d)(2)(C), by inserting ``or financial 
    participant'' after ``repo participant'';
        (6) in section 548(d)(2)(D), by inserting ``or financial 
    participant'' after ``swap participant'';
        (7) in section 555--
            (A) by inserting ``financial participant,'' after 
        ``financial institution,''; and
            (B) by striking the second sentence and inserting the 
        following: ``As used in this section, the term `contractual 
        right' includes a right set forth in a rule or bylaw of a 
        derivatives clearing organization (as defined in the Commodity 
        Exchange Act), a multilateral clearing organization (as defined 
        in the Federal Deposit Insurance Corporation Improvement Act of 
        1991), a national securities exchange, a national securities 
        association, a securities clearing agency, a contract market 
        designated under the Commodity Exchange Act, a derivatives 
        transaction execution facility registered under the Commodity 
        Exchange Act, or a board of trade (as defined in the Commodity 
        Exchange Act), 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.'';
        (8) in section 556, by inserting ``, financial participant,'' 
    after ``commodity broker'';
        (9) in section 559, by inserting ``or financial participant'' 
    after ``repo participant'' each place such term appears; and
        (10) in section 560, by inserting ``or financial participant'' 
    after ``swap participant''.
    (p) Conforming Amendments.--Title 11, United States Code, is 
amended--
        (1) in the table of sections for chapter 5--
            (A) by amending the items relating to sections 555 and 556 
        to read as follows:

``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.'';
        and
            (B) by amending the items relating to sections 559 and 560 
        to read as follows:

``559. Contractual right to liquidate, terminate, or accelerate a 
          repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap 
          agreement.'';
        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, 
          financial participants, 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, financial 
          participants, securities clearing agencies, swap participants, 
          repo participants, and master netting agreement 
          participants.''.

SEC. 908. RECORDKEEPING REQUIREMENTS.

    (a) FDIC-Insured Depository Institutions.--Section 11(e)(8) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)) is amended by 
adding at the end the following new subparagraph:
            ``(H) Recordkeeping requirements.--The Corporation, in 
        consultation with the appropriate Federal banking agencies, may 
        prescribe regulations requiring more detailed recordkeeping by 
        any insured depository institution with respect to qualified 
        financial contracts (including market valuations) only if such 
        insured depository institution is in a troubled condition (as 
        such term is defined by the Corporation pursuant to section 
        32).''.
    (b) Insured Credit Unions.--Section 207(c)(8) of the Federal Credit 
Union Act (12 U.S.C. 1787(c)(8)) is amended by adding at the end the 
following new subparagraph:
            ``(H) Recordkeeping requirements.--The Board, in 
        consultation with the appropriate Federal banking agencies, may 
        prescribe regulations requiring more detailed recordkeeping by 
        any insured credit union with respect to qualified financial 
        contracts (including market valuations) only if such insured 
        credit union is in a troubled condition (as such term is 
        defined by the Board pursuant to section 212).''.

SEC. 909. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION REQUIREMENT.

    Section 13(e)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)(2)) is amended to read as follows:
        ``(2) Exemptions from contemporaneous execution requirement.--
    An agreement to provide for the lawful collateralization of--
            ``(A) deposits of, or other credit extension by, a Federal, 
        State, or local governmental entity, or of any depositor 
        referred to in section 11(a)(2), including an agreement to 
        provide collateral in lieu of a surety bond;
            ``(B) bankruptcy estate funds pursuant to section 345(b)(2) 
        of title 11, United States Code;
            ``(C) extensions of credit, including any overdraft, from a 
        Federal reserve bank or Federal home loan bank; or
            ``(D) one or more qualified financial contracts, as defined 
        in section 11(e)(8)(D),
    shall not be deemed invalid pursuant to paragraph (1)(B) solely 
    because such agreement was not executed contemporaneously with the 
    acquisition of the collateral or because of pledges, delivery, or 
    substitution of the collateral made in accordance with such 
    agreement.''.

SEC. 910. DAMAGE MEASURE.

    (a) In General.--Title 11, United States Code, is amended--
        (1) by inserting after section 561, as added by section 907, 
    the following:

``Sec. 562. Timing of damage measurement in connection with swap 
            agreements, securities contracts, forward contracts, 
            commodity contracts, repurchase agreements, and master 
            netting agreements

    ``(a) 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 pursuant to 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 or dates of such liquidation, termination, or 
    acceleration.
    ``(b) If there are not any commercially reasonable determinants of 
value as of any date referred to in paragraph (1) or (2) of subsection 
(a), damages shall be measured as of the earliest subsequent date or 
dates on which there are commercially reasonable determinants of value.
    ``(c) For the purposes of subsection (b), if damages are not 
measured as of the date or dates of rejection, liquidation, 
termination, or acceleration, and the forward contract merchant, 
stockbroker, financial institution, securities clearing agency, repo 
participant, financial participant, master netting agreement 
participant, or swap participant or the trustee objects to the timing 
of the measurement of damages--
        ``(1) the trustee, in the case of an objection by a forward 
    contract merchant, stockbroker, financial institution, securities 
    clearing agency, repo participant, financial participant, master 
    netting agreement participant, or swap participant; or
        ``(2) the forward contract merchant, stockbroker, financial 
    institution, securities clearing agency, repo participant, 
    financial participant, master netting agreement participant, or 
    swap participant, in the case of an objection by the trustee,
has the burden of proving that there were no commercially reasonable 
determinants of value as of such date or dates.''; and
        (2) in the table of sections for chapter 5, by inserting after 
    the item relating to section 561 (as added by section 907) the 
    following new item:

``562. Timing of 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 562 
shall be allowed under subsection (a), (b), or (c), or disallowed under 
subsection (d) or (e), as if such claim had arisen before the date of 
the filing of the petition.''.

SEC. 911. SIPC STAY.

    Section 5(b)(2) of the Securities Investor Protection Act of 1970 
(15 U.S.C. 78eee(b)(2)) is amended by adding at the end the following 
new subparagraph:
            ``(C) Exception from stay.--
                ``(i) Notwithstanding section 362 of title 11, United 
            States Code, neither the filing of an application under 
            subsection (a)(3) nor any order or decree obtained by SIPC 
            from the court shall operate as a stay of any contractual 
            rights of a creditor to liquidate, terminate, or accelerate 
            a securities contract, commodity contract, forward 
            contract, repurchase agreement, swap agreement, or master 
            netting agreement, as those terms are defined in sections 
            101, 741, and 761 of title 11, United States Code, to 
            offset or net termination values, payment amounts, or other 
            transfer obligations arising under or in connection with 
            one or more of such contracts or agreements, or to 
            foreclose on any cash collateral pledged by the debtor, 
            whether or not with respect to one or more of such 
            contracts or agreements.
                ``(ii) Notwithstanding clause (i), such application, 
            order, or decree may operate as a stay of the foreclosure 
            on, or disposition of, securities collateral pledged by the 
            debtor, whether or not with respect to one or more of such 
            contracts or agreements, securities sold by the debtor 
            under a repurchase agreement, or securities lent under a 
            securities lending agreement.
                ``(iii) As used in this subparagraph, 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 in writing, arising 
            under common law, under law merchant, or by reason of 
            normal business practice.''.

       TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN

SEC. 1001. PERMANENT 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 as in effect on June 30, 2005, is hereby reenacted.
        (2) Effective date of reenactment.--Paragraph (1) shall take 
    effect on July 1, 2005.
    (b) Amendments--Chapter 12 of title 11, United States Code, as 
reenacted by subsection (a), is amended by this Act.
    (c) 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, as amended by 
section 226, is amended by inserting ``101(18),'' after ``101(3),'' 
each place it appears.

SEC. 1003. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS.

    (a) Contents of Plan.--Section 1222(a)(2) of title 11, United 
States Code, as amended by section 213, 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;''.
    (b) Special Notice Provisions.--Section 1231(b) of title 11, United 
States Code, as so designated by section 719, is amended by striking 
``a State or local governmental unit'' and inserting ``any governmental 
unit''.
    (c) Effective Date; Application of Amendments.--This section and 
the amendments made by this section shall take effect on the date of 
the enactment of this Act and shall not apply with respect to cases 
commenced under title 11 of the United States Code before such date.

SEC. 1004. DEFINITION OF FAMILY FARMER.

    Section 101(18) of title 11, United States Code, is amended--
        (1) in subparagraph (A)--
            (A) by striking ``$1,500,000'' and inserting 
        ``$3,237,000''; and
            (B) by striking ``80'' and inserting ``50''; and
        (2) in subparagraph (B)(ii)--
            (A) by striking ``$1,500,000'' and inserting 
        ``$3,237,000''; and
            (B) by striking ``80'' and inserting ``50''.

SEC. 1005. 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 ``for the taxable year preceding the taxable year'' and 
inserting the following:
        ``for--
                ``(i) the taxable year preceding; or
                ``(ii) each of the 2d and 3d taxable years preceding;
        the taxable year''.

SEC. 1006. PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE INCOME.

    (a) Confirmation of Plan.--Section 1225(b)(1) 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 value of the property to be distributed under the 
    plan in the 3-year period, or such longer period as the court may 
    approve under section 1222(c), beginning on the date that the first 
    distribution is due under the plan is not less than the debtor's 
    projected disposable income for such period.''.
    (b) Modification of Plan.--Section 1229 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(d) A plan may not be modified under this section--
        ``(1) to increase the amount of any payment due before the plan 
    as modified becomes the plan;
        ``(2) by anyone except the debtor, based on an increase in the 
    debtor's disposable income, to increase the amount of payments to 
    unsecured creditors required for a particular month so that the 
    aggregate of such payments exceeds the debtor's disposable income 
    for such month; or
        ``(3) in the last year of the plan by anyone except the debtor, 
    to require payments that would leave the debtor with insufficient 
    funds to carry on the farming operation after the plan is 
    completed.''.

SEC. 1007. FAMILY FISHERMEN.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended--
        (1) by inserting after paragraph (7) the following:
        ``(7A) `commercial fishing operation' means--
            ``(A) the catching or harvesting of fish, shrimp, lobsters, 
        urchins, seaweed, shellfish, or other aquatic species or 
        products of such species; or
            ``(B) for purposes of section 109 and chapter 12, 
        aquaculture activities consisting of raising for market any 
        species or product described in subparagraph (A);
        ``(7B) `commercial fishing vessel' means a vessel used by a 
    family fisherman to carry out a commercial fishing operation;''; 
    and
        (2) by inserting after paragraph (19) the following:
        ``(19A) `family fisherman' means--
            ``(A) an individual or individual and spouse engaged in a 
        commercial fishing operation--
                ``(i) whose aggregate debts do not exceed $1,500,000 
            and not less than 80 percent of whose aggregate 
            noncontingent, liquidated debts (excluding a debt for the 
            principal residence of such individual or such individual 
            and spouse, unless such debt arises out of a commercial 
            fishing operation), on the date the case is filed, arise 
            out of a commercial fishing operation owned or operated by 
            such individual or such individual and spouse; and
                ``(ii) who receive from such commercial fishing 
            operation more than 50 percent of such individual's or such 
            individual's and spouse's gross income for the taxable year 
            preceding the taxable year in which the case concerning 
            such individual or such individual and spouse was filed; or
            ``(B) a corporation or partnership--
                ``(i) in which more than 50 percent of the outstanding 
            stock or equity is held by--

                    ``(I) 1 family that conducts the commercial fishing 
                operation; or
                    ``(II) 1 family and the relatives of the members of 
                such family, and such family or such relatives conduct 
                the commercial fishing operation; and

                ``(ii)(I) more than 80 percent of the value of its 
            assets consists of assets related to the commercial fishing 
            operation;
                ``(II) its aggregate debts do not exceed $1,500,000 and 
            not less than 80 percent of its aggregate noncontingent, 
            liquidated debts (excluding a debt for 1 dwelling which is 
            owned by such corporation or partnership and which a 
            shareholder or partner maintains as a principal residence, 
            unless such debt arises out of a commercial fishing 
            operation), on the date the case is filed, arise out of a 
            commercial fishing operation owned or operated by such 
            corporation or such partnership; and
                ``(III) if such corporation issues stock, such stock is 
            not publicly traded;
        ``(19B) `family fisherman with regular annual income' means a 
    family fisherman whose annual income is sufficiently stable and 
    regular to enable such family fisherman to make payments under a 
    plan under chapter 12 of this title;''.
    (b) Who May Be a Debtor.--Section 109(f) of title 11, United States 
Code, is amended by inserting ``or family fisherman'' after ``family 
farmer''.
    (c)  Chapter 12.--Chapter 12 of title 11, United States Code, is 
amended--
        (1) in the chapter heading, by inserting ``OR FISHERMAN'' after 
    ``FAMILY FARMER'';
        (2) in section 1203, by inserting ``or commercial fishing 
    operation'' after ``farm''; and
        (3) in section 1206, by striking ``if the property is farmland 
    or farm equipment'' and inserting ``if the property is farmland, 
    farm equipment, or property used to carry out a commercial fishing 
    operation (including a commercial fishing vessel)''.
    (d) Clerical Amendment.--In the table of chapters for title 11, 
United States Code, the item relating to chapter 12, is amended to read 
as follows:

``12. Adjustments of Debts of a Family Farmer or Family Fisherman 
with Regular Annual Income.......................................1201''.

    (e) Applicability.--Nothing in this section shall change, affect, 
or amend the Fishery Conservation and Management Act of 1976 (16 U.S.C. 
1801 et seq.).

              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 306, is amended--
        (1) by redesignating paragraph (27A) as paragraph (27B); and
        (2) by 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) home health agency; and
                    ``(V) other health care institution that is similar 
                to an entity referred to in subclause (I), (II), (III), 
                or (IV); 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) domiciliary 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) Patient and Patient Records Defined.--Section 101 of title 11, 
United States Code, is amended by inserting after paragraph (40) the 
following:
        ``(40A) `patient' means any individual who obtains or receives 
    services from a health care business;
        ``(40B) `patient records' means any written document relating 
    to a patient or a record recorded in a magnetic, optical, or other 
    form of electronic medium;''.
    (c) Rule of Construction.--The amendments made by subsection (a) of 
this section shall not affect the interpretation of section 109(b) of 
title 11, United States Code.

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--
            ``(A) promptly publish notice, in 1 or more appropriate 
        newspapers, that if 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 365 
        days after the date of that notification, the trustee will 
        destroy the patient records; and
            ``(B) during the first 180 days of the 365-day period 
        described in subparagraph (A), promptly attempt to notify 
        directly each patient that is the subject of the patient 
        records and appropriate insurance carrier concerning the 
        patient records by mailing to the most recent known address of 
        that patient, or a family member or contact person for that 
        patient, and to the appropriate insurance carrier an 
        appropriate notice regarding the claiming or disposing of 
        patient records.
        ``(2) If, after providing the notification under paragraph (1), 
    patient records are not claimed during the 365-day period described 
    under that paragraph, the trustee shall mail, by certified mail, at 
    the end of such 365-day period a written request to each 
    appropriate Federal agency to request permission from that agency 
    to deposit the patient records with that agency, except that no 
    Federal agency is required to accept patient records under this 
    paragraph.
        ``(3) If, following the 365-day period described in paragraph 
    (2) and after providing the notification under paragraph (1), 
    patient records are not claimed by a patient or insurance provider, 
    or request is not granted by a Federal agency to deposit such 
    records with that agency, 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 table of sections for subchapter III 
of chapter 3 of title 11, United States Code, is amended by adding at 
the end the following:

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

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

    Section 503(b) of title 11, United States Code, as amended by 
section 445, is amended by adding at the end the following:
        ``(8) the actual, necessary costs and expenses of closing a 
    health care business incurred by a trustee or by a Federal agency 
    (as defined in section 551(1) of title 5) or a department or agency 
    of a State or political subdivision thereof, 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; and''.

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

    (a) Ombudsman To Act as Patient Advocate.--
        (1) Appointment of ombudsman.--Title 11, United States Code, as 
    amended by section 232, is amended by inserting after section 332 
    the following:

``Sec. 333. Appointment of patient care ombudsman

    ``(a)(1) If the debtor in a case under chapter 7, 9, or 11 is a 
health care business, the court shall order, not later than 30 days 
after the commencement of the case, the appointment of an ombudsman to 
monitor the quality of patient care and to represent the interests of 
the patients of the health care business unless the court finds that 
the appointment of such ombudsman is not necessary for the protection 
of patients under the specific facts of the case.
    ``(2)(A) If the court orders the appointment of an ombudsman under 
paragraph (1), the United States trustee shall appoint 1 disinterested 
person (other than the United States trustee) to serve as such 
ombudsman.
    ``(B) If the debtor is a health care business that provides long-
term care, then the United States trustee may appoint the State Long-
Term Care Ombudsman appointed under the Older Americans Act of 1965 for 
the State in which the case is pending to serve as the ombudsman 
required by paragraph (1).
    ``(C) If the United States trustee does not appoint a State Long-
Term Care Ombudsman under subparagraph (B), the court shall notify the 
State Long-Term Care Ombudsman appointed under the Older Americans Act 
of 1965 for the State in which the case is pending, of the name and 
address of the person who is appointed under subparagraph (A).
    ``(b) An ombudsman appointed under subsection (a) shall--
        ``(1) monitor the quality of patient care provided to patients 
    of the debtor, to the extent necessary under the circumstances, 
    including interviewing patients and physicians;
        ``(2) not later than 60 days after the date of appointment, and 
    not less frequently than at 60-day intervals thereafter, report to 
    the court after notice to the parties in interest, at a hearing or 
    in writing, regarding the quality of patient care provided to 
    patients of the debtor; and
        ``(3) if such ombudsman determines that the quality of patient 
    care provided to patients of the debtor is declining significantly 
    or is otherwise being materially compromised, file with the court a 
    motion or a written report, with notice to the parties in interest 
    immediately upon making such determination.
    ``(c)(1) An ombudsman appointed under subsection (a) shall maintain 
any information obtained by such ombudsman under this section that 
relates to patients (including information relating to patient records) 
as confidential information. Such ombudsman may not review confidential 
patient records unless the court approves such review in advance and 
imposes restrictions on such ombudsman to protect the confidentiality 
of such records.
    ``(2) An ombudsman appointed under subsection (a)(2)(B) shall have 
access to patient records consistent with authority of such ombudsman 
under the Older Americans Act of 1965 and under non-Federal laws 
governing the State Long-Term Care Ombudsman program.''.
        (2) Clerical amendment.--The table of sections for subchapter 
    II of chapter 3 of title 11, United States Code, as amended by 
    section 232, is amended by adding at the end the following:

``333. Appointment of ombudsman.''.
    (b) Compensation of Ombudsman.--Section 330(a)(1) of title 11, 
United States Code, is amended--
        (1) in the matter preceding subparagraph (A), by inserting ``an 
    ombudsman appointed under section 333, 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 sections 102, 219, and 446, is amended by adding at the end 
the following:
        ``(12) 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, as amended by section 446, is amended by striking ``and 
(11)'' and inserting ``(11), and (12)''.

SEC. 1106. EXCLUSION FROM PROGRAM PARTICIPATION NOT SUBJECT TO 
              AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, is amended by 
inserting after paragraph (27), as amended by sections 224, 303, 311, 
401, 718, and 907, the following:
        ``(28) under subsection (a), of the exclusion by the Secretary 
    of Health and Human Services of the debtor from participation in 
    the medicare program or any other Federal health care program (as 
    defined in section 1128B(f) of the Social Security Act pursuant to 
    title XI or XVIII of such Act).''.

                    TITLE XII--TECHNICAL AMENDMENTS

SEC. 1201. DEFINITIONS.

    Section 101 of title 11, United States Code, as amended by this 
Act, is further amended--
        (1) by striking ``In this title--'' and inserting ``In this 
    title the following definitions shall apply:'';
        (2) in each paragraph (other than paragraph (54A)), 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), (38), and (54A), 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 and inserting a 
        semicolon;
        (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 paragraph (54A)--
            (A) by striking ``the term'' and inserting ``The term''; 
        and
            (B) by indenting the left margin of paragraph (54A) 2 ems 
        to the right; and
        (8) in each of paragraphs (1) through (35), in each of 
    paragraphs (36), (37), (38A), (38B) and (39A), and in each of 
    paragraphs (40) through (55), by striking the semicolon at the end 
    and inserting a period.

SEC. 1202. ADJUSTMENT OF DOLLAR AMOUNTS.

    Section 104(b) of title 11, United States Code, as amended by this 
Act, is further amended--
        (1) by inserting ``101(19A),'' after ``101(18),'' each place it 
    appears;
        (2) by inserting ``522(f)(3) and 522(f)(4),'' after ``522(d),'' 
    each place it appears;
        (3) by inserting ``541(b), 547(c)(9),'' after ``523(a)(2)(C),'' 
    each place it appears;
        (4) in paragraph (1), by striking ``and 1325(b)(3)'' and 
    inserting ``1322(d), 1325(b), and 1326(b)(3) of this title and 
    section 1409(b) of title 28''; and
        (5) in paragraph (2), by striking ``and 1325(b)(3) of this 
    title'' and inserting ``1322(d), 1325(b), and 1326(b)(3) of this 
    title and section 1409(b) of title 28''.

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, United States Code, is amended--
        (1) in section 109(b)(2), by striking ``subsection (c) or (d) 
    of''; and
        (2) 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)(4) of title 11, United States Code, as so 
redesignated by section 221, 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. 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. 1208. 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. 1209. EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, as amended by sections 
215 and 314, is amended--
        (1) by transferring paragraph (15), as added by section 304(e) 
    of Public Law 103-394 (108 Stat. 4133), so as to insert such 
    paragraph after subsection (a)(14A);
        (2) in subsection (a)(9), by striking ``motor vehicle'' and 
    inserting ``motor vehicle, vessel, or aircraft''; and
        (3) in subsection (e), by striking ``a insured'' and inserting 
    ``an insured''.

SEC. 1210. 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. 1211. 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. 1212. 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. 1213. PREFERENCES.

    (a) In General.--Section 547 of title 11, United States Code, as 
amended by section 201, 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 transfer made 
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 transfer 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 is pending or commenced on or after the date of 
enactment of this Act.

SEC. 1214. POSTPETITION TRANSACTIONS.

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

SEC. 1215. DISPOSITION OF PROPERTY OF THE ESTATE.

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

SEC. 1216. GENERAL PROVISIONS.

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

SEC. 1217. 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. 1218. 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. 1219. 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. 1220. 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. 1221. 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 of Reorganization.--Section 1129(a) of 
title 11, United States Code, as amended by sections 213 and 321, is 
amended by adding at the end the following:
        ``(16) 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, as amended by section 225, 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, or filed under that title on or after that date 
of enactment, except that the court shall not confirm a plan under 
chapter 11 of title 11, United States Code, 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 filing 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 of 
title 11, United States Code, 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. 1222. 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. 1223. BANKRUPTCY JUDGESHIPS.

    (a) Short Title.--This section may be cited as the ``Bankruptcy 
Judgeship Act of 2005''.
    (b) Temporary Judgeships.--
        (1) Appointments.--The following bankruptcy judges shall be 
    appointed 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 judge for the eastern 
        district of California.
            (B) Three additional bankruptcy judges for the central 
        district of California.
            (C) Four additional bankruptcy judges for the district of 
        Delaware.
            (D) Two additional bankruptcy judges for the southern 
        district of Florida.
            (E) One additional bankruptcy judge for the southern 
        district of Georgia.
            (F) Three additional bankruptcy judges for the district of 
        Maryland.
            (G) One additional bankruptcy judge for the eastern 
        district of Michigan.
            (H) One additional bankruptcy judge for the southern 
        district of Mississippi.
            (I) One additional bankruptcy judge for the district of New 
        Jersey.
            (J) One additional bankruptcy judge for the eastern 
        district of New York.
            (K) One additional bankruptcy judge for the northern 
        district of New York.
            (L) One additional bankruptcy judge for the southern 
        district of New York.
            (M) One additional bankruptcy judge for the eastern 
        district of North Carolina.
            (N) One additional bankruptcy judge for the eastern 
        district of Pennsylvania.
            (O) One additional bankruptcy judge for the middle district 
        of Pennsylvania.
            (P) One additional bankruptcy judge for the district of 
        Puerto Rico.
            (Q) One additional bankruptcy judge for the western 
        district of Tennessee.
            (R) One additional bankruptcy judge for the eastern 
        district of Virginia.
            (S) One additional bankruptcy judge for the district of 
        South Carolina.
            (T) One additional bankruptcy judge for the district of 
        Nevada.
        (2) Vacancies.--
            (A) Districts with single appointments.--Except as provided 
        in subparagraphs (B), (C), (D), and (E), the first vacancy 
        occurring in the office of bankruptcy judge in each of the 
        judicial districts set forth in paragraph (1)--
                (i) occurring 5 years or more after the appointment 
            date of the bankruptcy judge appointed under paragraph (1) 
            to such office; and
                (ii) resulting from the death, retirement, resignation, 
            or removal of a bankruptcy judge;
        shall not be filled.
            (B) Central district of california.--The 1st, 2d, and 3d 
        vacancies in the office of bankruptcy judge in the central 
        district of California--
                (i) occurring 5 years or more after the respective 1st, 
            2d, and 3d appointment dates of the bankruptcy judges 
            appointed under paragraph (1)(B); and
                (ii) resulting from the death, retirement, resignation, 
            or removal of a bankruptcy judge;
        shall not be filled.
            (C) District of delaware.--The 1st, 2d, 3d, and 4th 
        vacancies in the office of bankruptcy judge in the district of 
        Delaware--
                (i) occurring 5 years or more after the respective 1st, 
            2d, 3d, and 4th appointment dates of the bankruptcy judges 
            appointed under paragraph (1)(F); and
                (ii) resulting from the death, retirement, resignation, 
            or removal of a bankruptcy judge;
        shall not be filled.
            (D) Southern district of florida.--The 1st and 2d vacancies 
        in the office of bankruptcy judge in the southern district of 
        Florida--
                (i) occurring 5 years or more after the respective 1st 
            and 2d appointment dates of the bankruptcy judges appointed 
            under paragraph (1)(D); and
                (ii) resulting from the death, retirement, resignation, 
            or removal of a bankruptcy judge;
        shall not be filled.
            (E) District of maryland.--The 1st, 2d, and 3d vacancies in 
        the office of bankruptcy judge in the district of Maryland--
                (i) occurring 5 years or more after the respective 1st, 
            2d, and 3d appointment dates of the bankruptcy judges 
            appointed under paragraph (1)(F); and
                (ii) resulting from the death, retirement, resignation, 
            or removal of a bankruptcy judge;
        shall not be filled.
    (c) Extensions.--
        (1) In general.--The temporary office of bankruptcy judges 
    authorized for the northern district of Alabama, the district of 
    Delaware, the district of Puerto Rico, and the eastern district of 
    Tennessee under paragraphs (1), (3), (7), and (9) of section 3(a) 
    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 5 years after the date of the enactment of this Act.
        (2) Applicability of other provisions.--All other provisions of 
    section 3 of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 
    note) remain applicable to the temporary office of bankruptcy 
    judges referred to in this subsection.
    (d) Technical Amendments.--Section 152(a) of title 28, United 
States Code, is amended--
        (1) in paragraph (1), by striking the first sentence and 
    inserting the following: ``Each bankruptcy judge to be appointed 
    for a judicial district, as provided in paragraph (2), shall be 
    appointed by the court of appeals of the United States for the 
    circuit in which such district is located.''; and
        (2) in paragraph (2)--
            (A) in the item relating to the middle district of Georgia, 
        by striking ``2'' and inserting ``3''; and
            (B) in the collective item relating to the middle and 
        southern districts of Georgia, by striking ``Middle and 
        Southern . . . . . . 1''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 1224. COMPENSATING TRUSTEES.

    Section 1326 of title 11, United States Code, is amended--
        (1) in subsection (b)--
            (A) in paragraph (1), by striking ``and'';
            (B) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(3) if a chapter 7 trustee has been allowed compensation due 
    to the conversion or dismissal of the debtor's prior case pursuant 
    to section 707(b), and some portion of that compensation remains 
    unpaid in a case converted to this chapter or in the case dismissed 
    under section 707(b) and refiled under this chapter, the amount of 
    any such unpaid compensation, which shall be paid monthly--
            ``(A) by prorating such amount over the remaining duration 
        of the plan; and
            ``(B) by monthly payments not to exceed the greater of--
                ``(i) $25; or
                ``(ii) the amount payable to unsecured nonpriority 
            creditors, as provided by the plan, multiplied by 5 
            percent, and the result divided by the number of months in 
            the plan.''; and
        (2) by adding at the end the following:
    ``(d) Notwithstanding any other provision of this title--
        ``(1) compensation referred to in subsection (b)(3) is payable 
    and may be collected by the trustee under that paragraph, even if 
    such amount has been discharged in a prior case under this title; 
    and
        ``(2) such compensation is payable in a case under this chapter 
    only to the extent permitted by subsection (b)(3).''.

SEC. 1225. AMENDMENT TO SECTION 362 OF TITLE 11, UNITED STATES CODE.

    Section 362(b)(18) of title 11, United States Code, is amended to 
read as follows:
        ``(18) under subsection (a) of the creation or perfection of a 
    statutory lien for an ad valorem property tax, or a special tax or 
    special assessment on real property whether or not ad valorem, 
    imposed by a governmental unit, if such tax or assessment comes due 
    after the date of the filing of the petition;''.

SEC. 1226. JUDICIAL EDUCATION.

    The Director of the Federal Judicial Center, in consultation with 
the Director of the Executive Office for United States Trustees, shall 
develop materials and conduct such training as may be useful to courts 
in implementing this Act and the amendments made by this Act, including 
the requirements relating to the means test under section 707(b), and 
reaffirmation agreements under section 524, of title 11 of the United 
States Code, as amended by this Act.

SEC. 1227. RECLAMATION.

    (a) Rights and Powers of the Trustee.--Section 546(c) of title 11, 
United States Code, is amended to read as follows:
    ``(c)(1) Except as provided in subsection (d) of this section and 
in section 507(c), and subject to the prior rights of a holder of a 
security interest in such goods or the proceeds thereof, the rights and 
powers of the trustee under sections 544(a), 545, 547, and 549 are 
subject to the right of a seller of goods that has sold goods to the 
debtor, in the ordinary course of such seller's business, to reclaim 
such goods if the debtor has received such goods while insolvent, 
within 45 days before the date of the commencement of a case under this 
title, but such seller may not reclaim such goods unless such seller 
demands in writing reclamation of such goods--
        ``(A) not later than 45 days after the date of receipt of such 
    goods by the debtor; or
        ``(B) not later than 20 days after the date of commencement of 
    the case, if the 45-day period expires after the commencement of 
    the case.
    ``(2) If a seller of goods fails to provide notice in the manner 
described in paragraph (1), the seller still may assert the rights 
contained in section 503(b)(9).''.
    (b) Administrative Expenses.--Section 503(b) of title 11, United 
States Code, as amended by sections 445 and 1103, is amended by adding 
at the end the following:
        ``(9) the value of any goods received by the debtor within 20 
    days before the date of commencement of a case under this title in 
    which the goods have been sold to the debtor in the ordinary course 
    of such debtor's business.''.

SEC. 1228. PROVIDING REQUESTED TAX DOCUMENTS TO THE COURT.

    (a) Chapter 7 Cases.--The court shall not grant a discharge in the 
case of an individual who is a debtor in a case under chapter 7 of 
title 11, United States Code, unless requested tax documents have been 
provided to the court.
    (b) Chapter 11 and Chapter 13 Cases.--The court shall not confirm a 
plan of reorganization in the case of an individual under chapter 11 or 
13 of title 11, United States Code, unless requested tax documents have 
been filed with the court.
    (c) Document Retention.--The court shall destroy documents 
submitted in support of a bankruptcy claim not sooner than 3 years 
after the date of the conclusion of a case filed by an individual under 
chapter 7, 11, or 13 of title 11, United States Code. In the event of a 
pending audit or enforcement action, the court may extend the time for 
destruction of such requested tax documents.

SEC. 1229. ENCOURAGING CREDITWORTHINESS.

    (a) Sense of the Congress.--It is the sense of the Congress that--
        (1) certain lenders may sometimes offer credit to consumers 
    indiscriminately, without taking steps to ensure that consumers are 
    capable of repaying the resulting debt, and in a manner which may 
    encourage certain consumers to accumulate additional debt; and
        (2) resulting consumer debt may increasingly be a major 
    contributing factor to consumer insolvency.
    (b) Study Required.--The Board of Governors of the Federal Reserve 
System (hereafter in this section referred to as the ``Board'') shall 
conduct a study of--
        (1) consumer credit industry practices of soliciting and 
    extending credit--
            (A) indiscriminately;
            (B) without taking steps to ensure that consumers are 
        capable of repaying the resulting debt; and
            (C) in a manner that encourages consumers to accumulate 
        additional debt; and
        (2) the effects of such practices on consumer debt and 
    insolvency.
    (c) Report and Regulations.--Not later than 12 months after the 
date of enactment of this Act, the Board--
        (1) shall make public a report on its findings with respect to 
    the indiscriminate solicitation and extension of credit by the 
    credit industry;
        (2) may issue regulations that would require additional 
    disclosures to consumers; and
        (3) may take any other actions, consistent with its existing 
    statutory authority, that the Board finds necessary to ensure 
    responsible industrywide practices and to prevent resulting 
    consumer debt and insolvency.

SEC. 1230. PROPERTY NO LONGER SUBJECT TO REDEMPTION.

    Section 541(b) of title 11, United States Code, as amended by 
sections 225 and 323, is amended by adding after paragraph (7), as 
added by section 323, the following:
        ``(8) subject to subchapter III of chapter 5, any interest of 
    the debtor in property where the debtor pledged or sold tangible 
    personal property (other than securities or written or printed 
    evidences of indebtedness or title) as collateral for a loan or 
    advance of money given by a person licensed under law to make such 
    loans or advances, where--
            ``(A) the tangible personal property is in the possession 
        of the pledgee or transferee;
            ``(B) the debtor has no obligation to repay the money, 
        redeem the collateral, or buy back the property at a stipulated 
        price; and
            ``(C) neither the debtor nor the trustee have exercised any 
        right to redeem provided under the contract or State law, in a 
        timely manner as provided under State law and section 108(b); 
        or''.

SEC. 1231. TRUSTEES.

    (a) Suspension and Termination of Panel Trustees and Standing 
Trustees.--Section 586(d) of title 28, United States Code, is amended--
        (1) by inserting ``(1)'' after ``(d)''; and
        (2) by adding at the end the following:
    ``(2) A trustee whose appointment under subsection (a)(1) or under 
subsection (b) is terminated or who ceases to be assigned to cases 
filed under title 11, United States Code, may obtain judicial review of 
the final agency decision by commencing an action in the district court 
of the United States for the district for which the panel to which the 
trustee is appointed under subsection (a)(1), or in the district court 
of the United States for the district in which the trustee is appointed 
under subsection (b) resides, after first exhausting all available 
administrative remedies, which if the trustee so elects, shall also 
include an administrative hearing on the record. Unless the trustee 
elects to have an administrative hearing on the record, the trustee 
shall be deemed to have exhausted all administrative remedies for 
purposes of this paragraph if the agency fails to make a final agency 
decision within 90 days after the trustee requests administrative 
remedies. The Attorney General shall prescribe procedures to implement 
this paragraph. The decision of the agency shall be affirmed by the 
district court unless it is unreasonable and without cause based on the 
administrative record before the agency.''.
    (b) Expenses of Standing Trustees.--Section 586(e) of title 28, 
United States Code, is amended by adding at the end the following:
    ``(3) After first exhausting all available administrative remedies, 
an individual appointed under subsection (b) may obtain judicial review 
of final agency action to deny a claim of actual, necessary expenses 
under this subsection by commencing an action in the district court of 
the United States for the district where the individual resides. The 
decision of the agency shall be affirmed by the district court unless 
it is unreasonable and without cause based upon the administrative 
record before the agency.
    ``(4) The Attorney General shall prescribe procedures to implement 
this subsection.''.

SEC. 1232. BANKRUPTCY FORMS.

    Section 2075 of title 28, United States Code, is amended by adding 
at the end the following:
    ``The bankruptcy rules promulgated under this section shall 
prescribe a form for the statement required under section 707(b)(2)(C) 
of title 11 and may provide general rules on the content of such 
statement.''.

SEC. 1233. DIRECT APPEALS OF BANKRUPTCY MATTERS TO COURTS OF APPEALS.

    (a) Appeals.--Section 158 of title 28, United States Code, is 
amended--
        (1) in subsection (c)(1), by striking ``Subject to subsection 
    (b),'' and inserting ``Subject to subsections (b) and (d)(2),''; 
    and
        (2) in subsection (d)--
            (A) by inserting ``(1)'' after ``(d)''; and
            (B) by adding at the end the following:
    ``(2)(A) The appropriate court of appeals shall have jurisdiction 
of appeals described in the first sentence of subsection (a) if the 
bankruptcy court, the district court, or the bankruptcy appellate panel 
involved, acting on its own motion or on the request of a party to the 
judgment, order, or decree described in such first sentence, or all the 
appellants and appellees (if any) acting jointly, certify that--
        ``(i) the judgment, order, or decree involves a question of law 
    as to which there is no controlling decision of the court of 
    appeals for the circuit or of the Supreme Court of the United 
    States, or involves a matter of public importance;
        ``(ii) the judgment, order, or decree involves a question of 
    law requiring resolution of conflicting decisions; or
        ``(iii) an immediate appeal from the judgment, order, or decree 
    may materially advance the progress of the case or proceeding in 
    which the appeal is taken;
and if the court of appeals authorizes the direct appeal of the 
judgment, order, or decree.
    ``(B) If the bankruptcy court, the district court, or the 
bankruptcy appellate panel--
        ``(i) on its own motion or on the request of a party, 
    determines that a circumstance specified in clause (i), (ii), or 
    (iii) of subparagraph (A) exists; or
        ``(ii) receives a request made by a majority of the appellants 
    and a majority of appellees (if any) to make the certification 
    described in subparagraph (A);
then the bankruptcy court, the district court, or the bankruptcy 
appellate panel shall make the certification described in subparagraph 
(A).
    ``(C) The parties may supplement the certification with a short 
statement of the basis for the certification.
    ``(D) An appeal under this paragraph does not stay any proceeding 
of the bankruptcy court, the district court, or the bankruptcy 
appellate panel from which the appeal is taken, unless the respective 
bankruptcy court, district court, or bankruptcy appellate panel, or the 
court of appeals in which the appeal in pending, issues a stay of such 
proceeding pending the appeal.
    ``(E) Any request under subparagraph (B) for certification shall be 
made not later than 60 days after the entry of the judgment, order, or 
decree.''.
    (b) Procedural Rules.--
        (1) Temporary application.--A provision of this subsection 
    shall apply to appeals under section 158(d)(2) of title 28, United 
    States Code, until a rule of practice and procedure relating to 
    such provision and such appeals is promulgated or amended under 
    chapter 131 of such title.
        (2) Certification.--A district court, a bankruptcy court, or a 
    bankruptcy appellate panel may make a certification under section 
    158(d)(2) of title 28, United States Code, only with respect to 
    matters pending in the respective bankruptcy court, district court, 
    or bankruptcy appellate panel.
        (3) Procedure.--Subject to any other provision of this 
    subsection, an appeal authorized by the court of appeals under 
    section 158(d)(2)(A) of title 28, United States Code, shall be 
    taken in the manner prescribed in subdivisions (a)(1), (b), (c), 
    and (d) of rule 5 of the Federal Rules of Appellate Procedure. For 
    purposes of subdivision (a)(1) of rule 5--
            (A) a reference in such subdivision to a district court 
        shall be deemed to include a reference to a bankruptcy court 
        and a bankruptcy appellate panel, as appropriate; and
            (B) a reference in such subdivision to the parties 
        requesting permission to appeal to be served with the petition 
        shall be deemed to include a reference to the parties to the 
        judgment, order, or decree from which the appeal is taken.
        (4) Filing of petition with attachment.--A petition requesting 
    permission to appeal, that is based on a certification made under 
    subparagraph (A) or (B) of section 158(d)(2) shall--
            (A) be filed with the circuit clerk not later than 10 days 
        after the certification is entered on the docket of the 
        bankruptcy court, the district court, or the bankruptcy 
        appellate panel from which the appeal is taken; and
            (B) have attached a copy of such certification.
        (5) References in rule 5.--For purposes of rule 5 of the 
    Federal Rules of Appellate Procedure--
            (A) a reference in such rule to a district court shall be 
        deemed to include a reference to a bankruptcy court and to a 
        bankruptcy appellate panel; and
            (B) a reference in such rule to a district clerk shall be 
        deemed to include a reference to a clerk of a bankruptcy court 
        and to a clerk of a bankruptcy appellate panel.
        (6) Application of rules.--The Federal Rules of Appellate 
    Procedure shall apply in the courts of appeals with respect to 
    appeals authorized under section 158(d)(2)(A), to the extent 
    relevant and as if such appeals were taken from final judgments, 
    orders, or decrees of the district courts or bankruptcy appellate 
    panels exercising appellate jurisdiction under subsection (a) or 
    (b) of section 158 of title 28, United States Code.

SEC. 1234. INVOLUNTARY CASES.

    (a) Amendments.--Section 303 of title 11, United States Code, is 
amended--
        (1) in subsection (b)(1), by--
            (A) inserting ``as to liability or amount'' after ``bona 
        fide dispute''; and
            (B) striking ``if such claims'' and inserting ``if such 
        noncontingent, undisputed claims''; and
        (2) in subsection (h)(1), by inserting ``as to liability or 
    amount'' before the semicolon at the end.
    (b) Effective Date; Application of Amendments.--This section and 
the amendments made by this section shall take effect on the date of 
the enactment of this Act and shall apply with respect to cases 
commenced under title 11 of the United States Code before, on, and 
after such date.

SEC. 1235. FEDERAL ELECTION LAW FINES AND PENALTIES AS NONDISCHARGEABLE 
              DEBT.

    Section 523(a) of title 11, United States Code, as amended by 
section 314, is amended by inserting after paragraph (14A) the 
following:
        ``(14B) incurred to pay fines or penalties imposed under 
    Federal election law;''.

                 TITLE XIII--CONSUMER CREDIT DISCLOSURE

SEC. 1301. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.

    (a) Minimum Payment Disclosures.--Section 127(b) of the Truth in 
Lending Act (15 U.S.C. 1637(b)) is amended by adding at the end the 
following:
        ``(11)(A) In the case of an open end credit plan that requires 
    a minimum monthly payment of not more than 4 percent of the balance 
    on which finance charges are accruing, the following statement, 
    located on the front of the billing statement, disclosed clearly 
    and conspicuously: `Minimum Payment Warning: Making only the 
    minimum payment will increase the interest you pay and the time it 
    takes to repay your balance. For example, making only the typical 
    2% minimum monthly payment on a balance of $1,000 at an interest 
    rate of 17% would take 88 months to repay the balance in full. For 
    an estimate of the time it would take to repay your balance, making 
    only minimum payments, call this toll-free number: ______.' (the 
    blank space to be filled in by the creditor).
        ``(B) In the case of an open end credit plan that requires a 
    minimum monthly payment of more than 4 percent of the balance on 
    which finance charges are accruing, the following statement, in a 
    prominent location on the front of the billing statement, disclosed 
    clearly and conspicuously: `Minimum Payment Warning: Making only 
    the required minimum payment will increase the interest you pay and 
    the time it takes to repay your balance. Making a typical 5% 
    minimum monthly payment on a balance of $300 at an interest rate of 
    17% would take 24 months to repay the balance in full. For an 
    estimate of the time it would take to repay your balance, making 
    only minimum monthly payments, call this toll-free number: ______.' 
    (the blank space to be filled in by the creditor).
        ``(C) Notwithstanding subparagraphs (A) and (B), in the case of 
    a creditor with respect to which compliance with this title is 
    enforced by the Federal Trade Commission, the following statement, 
    in a prominent location on the front of the billing statement, 
    disclosed clearly and conspicuously: `Minimum Payment Warning: 
    Making only the required minimum payment will increase the interest 
    you pay and the time it takes to repay your balance. For example, 
    making only the typical 5% minimum monthly payment on a balance of 
    $300 at an interest rate of 17% would take 24 months to repay the 
    balance in full. For an estimate of the time it would take to repay 
    your balance, making only minimum monthly payments, call the 
    Federal Trade Commission at this toll-free number: ______.' (the 
    blank space to be filled in by the creditor). A creditor who is 
    subject to this subparagraph shall not be subject to subparagraph 
    (A) or (B).
        ``(D) Notwithstanding subparagraph (A), (B), or (C), in 
    complying with any such subparagraph, a creditor may substitute an 
    example based on an interest rate that is greater than 17 percent. 
    Any creditor that is subject to subparagraph (B) may elect to 
    provide the disclosure required under subparagraph (A) in lieu of 
    the disclosure required under subparagraph (B).
        ``(E) The Board shall, by rule, periodically recalculate, as 
    necessary, the interest rate and repayment period under 
    subparagraphs (A), (B), and (C).
        ``(F)(i) The toll-free telephone number disclosed by a creditor 
    or the Federal Trade Commission under subparagraph (A), (B), or 
    (G), as appropriate, may be a toll-free telephone number 
    established and maintained by the creditor or the Federal Trade 
    Commission, as appropriate, or may be a toll-free telephone number 
    established and maintained by a third party for use by the creditor 
    or multiple creditors or the Federal Trade Commission, as 
    appropriate. The toll-free telephone number may connect consumers 
    to an automated device through which consumers may obtain 
    information described in subparagraph (A), (B), or (C), by 
    inputting information using a touch-tone telephone or similar 
    device, if consumers whose telephones are not equipped to use such 
    automated device are provided the opportunity to be connected to an 
    individual from whom the information described in subparagraph (A), 
    (B), or (C), as applicable, may be obtained. A person that receives 
    a request for information described in subparagraph (A), (B), or 
    (C) from an obligor through the toll-free telephone number 
    disclosed under subparagraph (A), (B), or (C), as applicable, shall 
    disclose in response to such request only the information set forth 
    in the table promulgated by the Board under subparagraph (H)(i).
        ``(ii)(I) The Board shall establish and maintain for a period 
    not to exceed 24 months following the effective date of the 
    Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, a 
    toll-free telephone number, or provide a toll-free telephone number 
    established and maintained by a third party, for use by creditors 
    that are depository institutions (as defined in section 3 of the 
    Federal Deposit Insurance Act), including a Federal credit union or 
    State credit union (as defined in section 101 of the Federal Credit 
    Union Act), with total assets not exceeding $250,000,000. The toll-
    free telephone number may connect consumers to an automated device 
    through which consumers may obtain information described in 
    subparagraph (A) or (B), as applicable, by inputting information 
    using a touch-tone telephone or similar device, if consumers whose 
    telephones are not equipped to use such automated device are 
    provided the opportunity to be connected to an individual from whom 
    the information described in subparagraph (A) or (B), as 
    applicable, may be obtained. A person that receives a request for 
    information described in subparagraph (A) or (B) from an obligor 
    through the toll-free telephone number disclosed under subparagraph 
    (A) or (B), as applicable, shall disclose in response to such 
    request only the information set forth in the table promulgated by 
    the Board under subparagraph (H)(i). The dollar amount contained in 
    this subclause shall be adjusted according to an indexing mechanism 
    established by the Board.
        ``(II) Not later than 6 months prior to the expiration of the 
    24-month period referenced in subclause (I), the Board shall submit 
    to the Committee on Banking, Housing, and Urban Affairs of the 
    Senate and the Committee on Financial Services of the House of 
    Representatives a report on the program described in subclause (I).
        ``(G) The Federal Trade Commission shall establish and maintain 
    a toll-free number for the purpose of providing to consumers the 
    information required to be disclosed under subparagraph (C).
        ``(H) The Board shall--
            ``(i) establish a detailed table illustrating the 
        approximate number of months that it would take to repay an 
        outstanding balance if a consumer pays only the required 
        minimum monthly payments and if no other advances are made, 
        which table shall clearly present standardized information to 
        be used to disclose the information required to be disclosed 
        under subparagraph (A), (B), or (C), as applicable;
            ``(ii) establish the table required under clause (i) by 
        assuming--
                ``(I) a significant number of different annual 
            percentage rates;
                ``(II) a significant number of different account 
            balances;
                ``(III) a significant number of different minimum 
            payment amounts; and
                ``(IV) that only minimum monthly payments are made and 
            no additional extensions of credit are obtained; and
            ``(iii) promulgate regulations that provide instructional 
        guidance regarding the manner in which the information 
        contained in the table established under clause (i) should be 
        used in responding to the request of an obligor for any 
        information required to be disclosed under subparagraph (A), 
        (B), or (C).
        ``(I) The disclosure requirements of this paragraph do not 
    apply to any charge card account, the primary purpose of which is 
    to require payment of charges in full each month.
        ``(J) A creditor that maintains a toll-free telephone number 
    for the purpose of providing customers with the actual number of 
    months that it will take to repay the customer's outstanding 
    balance is not subject to the requirements of subparagraph (A) or 
    (B).
        ``(K) A creditor that maintains a toll-free telephone number 
    for the purpose of providing customers with the actual number of 
    months that it will take to repay an outstanding balance shall 
    include the following statement on each billing statement: `Making 
    only the minimum payment will increase the interest you pay and the 
    time it takes to repay your balance. For more information, call 
    this toll-free number: ____.' (the blank space to be filled in by 
    the creditor).''.
    (b) Regulatory Implementation.--
        (1) In general.--The Board of Governors of the Federal Reserve 
    System (hereafter in this title referred to as the ``Board'') shall 
    promulgate regulations implementing the requirements of section 
    127(b)(11) of the Truth in Lending Act, as added by subsection (a) 
    of this section.
        (2) Effective date.--Section 127(b)(11) of the Truth in Lending 
    Act, as added by subsection (a) of this section, and the 
    regulations issued under paragraph (1) of this subsection shall not 
    take effect until the later of--
            (A) 18 months after the date of enactment of this Act; or
            (B) 12 months after the publication of such final 
        regulations by the Board.
    (c) Study of Financial Disclosures.--
        (1) In general.--The Board may conduct a study to determine the 
    types of information available to potential borrowers from consumer 
    credit lending institutions regarding factors qualifying potential 
    borrowers for credit, repayment requirements, and the consequences 
    of default.
        (2) Factors for consideration.--In conducting a study under 
    paragraph (1), the Board should, in consultation with the other 
    Federal banking agencies (as defined in section 3 of the Federal 
    Deposit Insurance Act), the National Credit Union Administration, 
    and the Federal Trade Commission, consider the extent to which--
            (A) consumers, in establishing new credit arrangements, are 
        aware of their existing payment obligations, the need to 
        consider those obligations in deciding to take on new credit, 
        and how taking on excessive credit can result in financial 
        difficulty;
            (B) minimum periodic payment features offered in connection 
        with open end credit plans impact consumer default rates;
            (C) consumers make only the required minimum payment under 
        open end credit plans;
            (D) consumers are aware that making only required minimum 
        payments will increase the cost and repayment period of an open 
        end credit obligation; and
            (E) the availability of low minimum payment options is a 
        cause of consumers experiencing financial difficulty.
        (3) Report to congress.--Findings of the Board in connection 
    with any study conducted under this subsection shall be submitted 
    to Congress. Such report shall also include recommendations for 
    legislative initiatives, if any, of the Board, based on its 
    findings.

SEC. 1302. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED BY A 
              DWELLING.

    (a) Open End Credit Extensions.--
        (1) Credit applications.--Section 127A(a)(13) of the Truth in 
    Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
            (A) by striking ``consultation of tax adviser.--A statement 
        that the'' and inserting the following: ``tax deductibility.--A 
        statement that--
            ``(A) the''; and
            (B) by striking the period at the end and inserting the 
        following: ``; and
            ``(B) in any case in which the extension of credit exceeds 
        the fair market value (as defined under the Internal Revenue 
        Code of 1986) of the dwelling, the interest on the portion of 
        the credit extension that is greater than the fair market value 
        of the dwelling is not tax deductible for Federal income tax 
        purposes.''.
        (2) Credit advertisements.--Section 147(b) of the Truth in 
    Lending Act (15 U.S.C. 1665b(b)) is amended--
            (A) by striking ``If any'' and inserting the following:
        ``(1) In general.--If any''; and
            (B) by adding at the end the following:
        ``(2) Credit in excess of fair market value.--Each 
    advertisement described in subsection (a) that relates to an 
    extension of credit that may exceed the fair market value of the 
    dwelling, and which advertisement is disseminated in paper form to 
    the public or through the Internet, as opposed to by radio or 
    television, shall include a clear and conspicuous statement that--
            ``(A) the interest on the portion of the credit extension 
        that is greater than the fair market value of the dwelling is 
        not tax deductible for Federal income tax purposes; and
            ``(B) the consumer should consult a tax adviser for further 
        information regarding the deductibility of interest and 
        charges.''.
    (b) Non-Open End Credit Extensions.--
        (1) Credit applications.--Section 128 of the Truth in Lending 
    Act (15 U.S.C. 1638) is amended--
            (A) in subsection (a), by adding at the end the following:
        ``(15) In the case of a consumer credit transaction that is 
    secured by the principal dwelling of the consumer, in which the 
    extension of credit may exceed the fair market value of the 
    dwelling, a clear and conspicuous statement that--
            ``(A) the interest on the portion of the credit extension 
        that is greater than the fair market value of the dwelling is 
        not tax deductible for Federal income tax purposes; and
            ``(B) the consumer should consult a tax adviser for further 
        information regarding the deductibility of interest and 
        charges.''; and
            (B) in subsection (b), by adding at the end the following:
    ``(3) In the case of a credit transaction described in paragraph 
(15) of subsection (a), disclosures required by that paragraph shall be 
made to the consumer at the time of application for such extension of 
credit.''.
        (2) Credit advertisements.--Section 144 of the Truth in Lending 
    Act (15 U.S.C. 1664) is amended by adding at the end the following:
    ``(e) Each advertisement to which this section applies that relates 
to a consumer credit transaction that is secured by the principal 
dwelling of a consumer in which the extension of credit may exceed the 
fair market value of the dwelling, and which advertisement is 
disseminated in paper form to the public or through the Internet, as 
opposed to by radio or television, shall clearly and conspicuously 
state that--
        ``(1) the interest on the portion of the credit extension that 
    is greater than the fair market value of the dwelling is not tax 
    deductible for Federal income tax purposes; and
        ``(2) the consumer should consult a tax adviser for further 
    information regarding the deductibility of interest and charges.''.
    (c) Regulatory Implementation.--
        (1) In general.--The Board shall promulgate regulations 
    implementing the amendments made by this section.
        (2) Effective date.--Regulations issued under paragraph (1) 
    shall not take effect until the later of--
            (A) 12 months after the date of enactment of this Act; or
            (B) 12 months after the date of publication of such final 
        regulations by the Board.

SEC. 1303. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.

    (a) Introductory Rate Disclosures.--Section 127(c) of the Truth in 
Lending Act (15 U.S.C. 1637(c)) is amended by adding at the end the 
following:
        ``(6) Additional notice concerning `introductory rates'.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        an application or solicitation to open a credit card account 
        and all promotional materials accompanying such application or 
        solicitation for which a disclosure is required under paragraph 
        (1), and that offers a temporary annual percentage rate of 
        interest, shall--
                ``(i) use the term `introductory' in immediate 
            proximity to each listing of the temporary annual 
            percentage rate applicable to such account, which term 
            shall appear clearly and conspicuously;
                ``(ii) if the annual percentage rate of interest that 
            will apply after the end of the temporary rate period will 
            be a fixed rate, state in a clear and conspicuous manner in 
            a prominent location closely proximate to the first listing 
            of the temporary annual percentage rate (other than a 
            listing of the temporary annual percentage rate in the 
            tabular format described in section 122(c)), the time 
            period in which the introductory period will end and the 
            annual percentage rate that will apply after the end of the 
            introductory period; and
                ``(iii) if the annual percentage rate that will apply 
            after the end of the temporary rate period will vary in 
            accordance with an index, state in a clear and conspicuous 
            manner in a prominent location closely proximate to the 
            first listing of the temporary annual percentage rate 
            (other than a listing in the tabular format prescribed by 
            section 122(c)), the time period in which the introductory 
            period will end and the rate that will apply after that, 
            based on an annual percentage rate that was in effect 
            within 60 days before the date of mailing the application 
            or solicitation.
            ``(B) Exception.--Clauses (ii) and (iii) of subparagraph 
        (A) do not apply with respect to any listing of a temporary 
        annual percentage rate on an envelope or other enclosure in 
        which an application or solicitation to open a credit card 
        account is mailed.
            ``(C) Conditions for introductory rates.--An application or 
        solicitation to open a credit card account for which a 
        disclosure is required under paragraph (1), and that offers a 
        temporary annual percentage rate of interest shall, if that 
        rate of interest is revocable under any circumstance or upon 
        any event, clearly and conspicuously disclose, in a prominent 
        manner on or with such application or solicitation--
                ``(i) a general description of the circumstances that 
            may result in the revocation of the temporary annual 
            percentage rate; and
                ``(ii) if the annual percentage rate that will apply 
            upon the revocation of the temporary annual percentage 
            rate--

                    ``(I) will be a fixed rate, the annual percentage 
                rate that will apply upon the revocation of the 
                temporary annual percentage rate; or
                    ``(II) will vary in accordance with an index, the 
                rate that will apply after the temporary rate, based on 
                an annual percentage rate that was in effect within 60 
                days before the date of mailing the application or 
                solicitation.

            ``(D) Definitions.--In this paragraph--
                ``(i) the terms `temporary annual percentage rate of 
            interest' and `temporary annual percentage rate' mean any 
            rate of interest applicable to a credit card account for an 
            introductory period of less than 1 year, if that rate is 
            less than an annual percentage rate that was in effect 
            within 60 days before the date of mailing the application 
            or solicitation; and
                ``(ii) the term `introductory period' means the maximum 
            time period for which the temporary annual percentage rate 
            may be applicable.
            ``(E) Relation to other disclosure requirements.--Nothing 
        in this paragraph may be construed to supersede subsection (a) 
        of section 122, or any disclosure required by paragraph (1) or 
        any other provision of this subsection.''.
    (b) Regulatory Implementation.--
        (1) In general.--The Board shall promulgate regulations 
    implementing the requirements of section 127(c)(6) of the Truth in 
    Lending Act, as added by this section.
        (2) Effective date.--Section 127(c)(6) of the Truth in Lending 
    Act, as added by this section, and regulations issued under 
    paragraph (1) of this subsection shall not take effect until the 
    later of--
            (A) 12 months after the date of enactment of this Act; or
            (B) 12 months after the date of publication of such final 
        regulations by the Board.

SEC. 1304. INTERNET-BASED CREDIT CARD SOLICITATIONS.

    (a) Internet-Based Solicitations.--Section 127(c) of the Truth in 
Lending Act (15 U.S.C. 1637(c)) is amended by adding at the end the 
following:
        ``(7) Internet-based solicitations.--
            ``(A) In general.--In any solicitation to open a credit 
        card account for any person under an open end consumer credit 
        plan using the Internet or other interactive computer service, 
        the person making the solicitation shall clearly and 
        conspicuously disclose--
                ``(i) the information described in subparagraphs (A) 
            and (B) of paragraph (1); and
                ``(ii) the information described in paragraph (6).
            ``(B) Form of disclosure.--The disclosures required by 
        subparagraph (A) shall be--
                ``(i) readily accessible to consumers in close 
            proximity to the solicitation to open a credit card 
            account; and
                ``(ii) updated regularly to reflect the current 
            policies, terms, and fee amounts applicable to the credit 
            card account.
            ``(C) Definitions.--For purposes of this paragraph--
                ``(i) the term `Internet' means the international 
            computer network of both Federal and non-Federal 
            interoperable packet switched data networks; and
                ``(ii) the term `interactive computer service' means 
            any information service, system, or access software 
            provider that provides or enables computer access by 
            multiple users to a computer server, including specifically 
            a service or system that provides access to the Internet 
            and such systems operated or services offered by libraries 
            or educational institutions.''.
    (b) Regulatory Implementation.--
        (1) In general.--The Board shall promulgate regulations 
    implementing the requirements of section 127(c)(7) of the Truth in 
    Lending Act, as added by this section.
        (2) Effective date.--The amendment made by subsection (a) and 
    the regulations issued under paragraph (1) of this subsection shall 
    not take effect until the later of--
            (A) 12 months after the date of enactment of this Act; or
            (B) 12 months after the date of publication of such final 
        regulations by the Board.

SEC. 1305. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND PENALTIES.

    (a) Disclosures Related to Late Payment Deadlines and Penalties.--
Section 127(b) of the Truth in Lending Act (15 U.S.C. 1637(b)) is 
amended by adding at the end the following:
        ``(12) If a late payment fee is to be imposed due to the 
    failure of the obligor to make payment on or before a required 
    payment due date, the following shall be stated clearly and 
    conspicuously on the billing statement:
            ``(A) The date on which that payment is due or, if 
        different, the earliest date on which a late payment fee may be 
        charged.
            ``(B) The amount of the late payment fee to be imposed if 
        payment is made after such date.''.
    (b) Regulatory Implementation.--
        (1) In general.--The Board shall promulgate regulations 
    implementing the requirements of section 127(b)(12) of the Truth in 
    Lending Act, as added by this section.
        (2) Effective date.--The amendment made by subsection (a) and 
    regulations issued under paragraph (1) of this subsection shall not 
    take effect until the later of--
            (A) 12 months after the date of enactment of this Act; or
            (B) 12 months after the date of publication of such final 
        regulations by the Board.

SEC. 1306. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO INCUR FINANCE 
              CHARGES.

    (a) Prohibition on Certain Actions for Failure To Incur Finance 
Charges.--Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
amended by adding at the end the following:
    ``(h) Prohibition on Certain Actions for Failure To Incur Finance 
Charges.--A creditor of an account under an open end consumer credit 
plan may not terminate an account prior to its expiration date solely 
because the consumer has not incurred finance charges on the account. 
Nothing in this subsection shall prohibit a creditor from terminating 
an account for inactivity in 3 or more consecutive months.''.
    (b) Regulatory Implementation.--
        (1) In general.--The Board shall promulgate regulations 
    implementing the requirements of section 127(h) of the Truth in 
    Lending Act, as added by this section.
        (2) Effective date.--The amendment made by subsection (a) and 
    regulations issued under paragraph (1) of this subsection shall not 
    take effect until the later of--
            (A) 12 months after the date of enactment of this Act; or
            (B) 12 months after the date of publication of such final 
        regulations by the Board.

SEC. 1307. DUAL USE DEBIT CARD.

    (a) Report.--The Board may conduct a study of, and present to 
Congress a report containing its analysis of, consumer protections 
under existing law to limit the liability of consumers for unauthorized 
use of a debit card or similar access device. Such report, if 
submitted, shall include recommendations for legislative initiatives, 
if any, of the Board, based on its findings.
    (b) Considerations.--In preparing a report under subsection (a), 
the Board may include--
        (1) the extent to which section 909 of the Electronic Fund 
    Transfer Act (15 U.S.C. 1693g), as in effect at the time of the 
    report, and the implementing regulations promulgated by the Board 
    to carry out that section provide adequate unauthorized use 
    liability protection for consumers;
        (2) the extent to which any voluntary industry rules have 
    enhanced or may enhance the level of protection afforded consumers 
    in connection with such unauthorized use liability; and
        (3) whether amendments to the Electronic Fund Transfer Act (15 
    U.S.C. 1693 et seq.), or revisions to regulations promulgated by 
    the Board to carry out that Act, are necessary to further address 
    adequate protection for consumers concerning unauthorized use 
    liability.

SEC. 1308. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT 
              STUDENTS.

    (a) Study.--
        (1) In general.--The Board shall conduct a study regarding the 
    impact that the extension of credit described in paragraph (2) has 
    on the rate of cases filed under title 11 of the United States 
    Code.
        (2) Extension of credit.--The extension of credit described in 
    this paragraph is the extension of credit to individuals who are--
            (A) claimed as dependents for purposes of the Internal 
        Revenue Code of 1986; and
            (B) enrolled within 1 year of successfully completing all 
        required secondary education requirements and on a full-time 
        basis, in postsecondary educational institutions.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Board shall submit to the Senate and the House of 
Representatives a report summarizing the results of the study conducted 
under subsection (a).

SEC. 1309. CLARIFICATION OF CLEAR AND CONSPICUOUS.

    (a) Regulations.--Not later than 6 months after the date of 
enactment of this Act, the Board, in consultation with the other 
Federal banking agencies (as defined in section 3 of the Federal 
Deposit Insurance Act), the National Credit Union Administration Board, 
and the Federal Trade Commission, shall promulgate regulations to 
provide guidance regarding the meaning of the term ``clear and 
conspicuous'', as used in subparagraphs (A), (B), and (C) of section 
127(b)(11) and clauses (ii) and (iii) of section 127(c)(6)(A) of the 
Truth in Lending Act.
    (b) Examples.--Regulations promulgated under subsection (a) shall 
include examples of clear and conspicuous model disclosures for the 
purposes of disclosures required by the provisions of the Truth in 
Lending Act referred to in subsection (a).
    (c) Standards.--In promulgating regulations under this section, the 
Board shall ensure that the clear and conspicuous standard required for 
disclosures made under the provisions of the Truth in Lending Act 
referred to in subsection (a) can be implemented in a manner which 
results in disclosures which are reasonably understandable and designed 
to call attention to the nature and significance of the information in 
the notice.

            TITLE XIV--PREVENTING CORPORATE BANKRUPTCY ABUSE

SEC. 1401. EMPLOYEE WAGE AND BENEFIT PRIORITIES.

    Section 507(a) of title 11, United States Code, as amended by 
section 212, is amended--
        (1) in paragraph (4) by striking ``90'' and inserting ``180'', 
    and
        (2) in paragraphs (4) and (5) by striking ``$4,000'' and 
    inserting ``$10,000''.

SEC. 1402. FRAUDULENT TRANSFERS AND OBLIGATIONS.

    Section 548 of title 11, United States Code, is amended--
        (1) in subsections (a) and (b) by striking ``one year'' and 
    inserting ``2 years'',
        (2) in subsection (a)--
            (A) by inserting ``(including any transfer to or for the 
        benefit of an insider under an employment contract)'' after 
        ``transfer'' the 1st place it appears, and
            (B) by inserting ``(including any obligation to or for the 
        benefit of an insider under an employment contract)'' after 
        ``obligation'' the 1st place it appears, and
        (3) in subsection (a)(1)(B)(ii)--
            (A) in subclause (II) by striking ``or'' at the end,
            (B) in subclause (III) by striking the period at the end 
        and inserting ``; or'', and
            (C) by adding at the end the following:
        ``(IV) made such transfer to or for the benefit of an insider, 
    or incurred such obligation to or for the benefit of an insider, 
    under an employment contract and not in the ordinary course of 
    business.''.
        (4) by adding at the end the following:
    ``(e)(1) In addition to any transfer that the trustee may otherwise 
avoid, the trustee may avoid any transfer of an interest of the debtor 
in property that was made on or within 10 years before the date of the 
filing of the petition, if--
        ``(A) such transfer was made to a self-settled trust or similar 
    device;
        ``(B) such transfer was by the debtor;
        ``(C) the debtor is a beneficiary of such trust or similar 
    device; and
        ``(D) the debtor made such transfer with actual intent to 
    hinder, delay, or defraud any entity to which the debtor was or 
    became, on or after the date that such transfer was made, indebted.
    ``(2) For the purposes of this subsection, a transfer includes a 
transfer made in anticipation of any money judgment, settlement, civil 
penalty, equitable order, or criminal fine incurred by, or which the 
debtor believed would be incurred by--
        ``(A) any violation of the securities laws (as defined in 
    section 3(a)(47) of the Securities Exchange Act of 1934 (15 U.S.C. 
    78c(a)(47))), any State securities laws, or any regulation or order 
    issued under Federal securities laws or State securities laws; or
        ``(B) fraud, deceit, or manipulation in a fiduciary capacity or 
    in connection with the purchase or sale of any security registered 
    under section 12 or 15(d) of the Securities Exchange Act of 1934 
    (15 U.S.C. 78l and 78o(d)) or under section 6 of the Securities Act 
    of 1933 (15 U.S.C. 77f).''.

SEC. 1403. PAYMENT OF INSURANCE BENEFITS TO RETIRED EMPLOYEES.

    Section 1114 of title 11, United States Code, is amended--
        (1) by redesignating subsection (l) as subsection (m), and
        (2) by inserting after subsection (k) the following:
    ``(l) If the debtor, during the 180-day period ending on the date 
of the filing of the petition--
        ``(1) modified retiree benefits; and
        ``(2) was insolvent on the date such benefits were modified;
the court, on motion of a party in interest, and after notice and a 
hearing, shall issue an order reinstating as of the date the 
modification was made, such benefits as in effect immediately before 
such date unless the court finds that the balance of the equities 
clearly favors such modification.''.

SEC. 1404. DEBTS NONDISCHARGEABLE IF INCURRED IN VIOLATION OF 
              SECURITIES FRAUD LAWS.

    (a) Prepetition and Postpetition Effect.--Section 523(a)(19)(B) of 
title 11, United States Code, is amended by inserting ``, before, on, 
or after the date on which the petition was filed,'' after ``results''.
    (b) Effective Date Upon Enactment of Sarbanes-Oxley Act.--The 
amendment made by subsection (a) is effective beginning July 30, 2002.

SEC. 1405. APPOINTMENT OF TRUSTEE IN CASES OF SUSPECTED FRAUD.

    Section 1104 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) The United States trustee shall move for the appointment of a 
trustee under subsection (a) if there are reasonable grounds to suspect 
that current members of the governing body of the debtor, the debtor's 
chief executive or chief financial officer, or members of the governing 
body who selected the debtor's chief executive or chief financial 
officer, participated in actual fraud, dishonesty, or criminal conduct 
in the management of the debtor or the debtor's public financial 
reporting.''.

SEC. 1406. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this 
title and the amendments made by this title shall take effect on the 
date of the enactment of this Act.
    (b) Application of Amendments.--
        (1) In general.--cept as provided in paragraph (2), the 
    amendments made by this title shall apply only with respect to 
    cases commenced under title 11 of the United States Code on or 
    after the date of the enactment of this Act.
        (2) Avoidance period.--The amendment made by section 1402(1) 
    shall apply only with respect to cases commenced under title 11 of 
    the United States Code more than 1 year after the date of the 
    enactment of this Act.

      TITLE XV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 1501. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as otherwise provided 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.--
        (1) In general.--Except as otherwise provided in this Act and 
    paragraph (2), 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.
        (2) Certain limitations applicable to debtors.--The amendments 
    made by sections 308, 322, and 330 shall apply with respect to 
    cases commenced under title 11, United States Code, on or after the 
    date of the enactment of this Act.

SEC. 1502. TECHNICAL CORRECTIONS.

    (a) Conforming Amendments to Title 11 of the United States Code.--
Title 11 of the United States Code, as amended by the preceding 
provisions of this Act, is amended--
        (1) in section 507--
            (A) in subsection (a)--
                (i) in paragraph (5)(B)(ii) by striking ``paragraph 
            (3)'' and inserting ``paragraph (4)''; and
                (ii) in paragraph (8)(D) by striking ``paragraph (3)'' 
            and inserting ``paragraph (4)'';
            (B) in subsection (b) by striking ``subsection (a)(1)'' and 
        inserting ``subsection (a)(2)''; and
            (C) in subsection (d) by striking ``subsection (a)(3)'' and 
        inserting ``subsection (a)(1)'';
        (2) in section 523(a)(1)(A) by striking ``507(a)(2)'' and 
    inserting ``507(a)(3)'';
        (3) in section 752(a) by striking ``507(a)(1)'' and inserting 
    ``507(a)(2)'';
        (4) in section 766--
            (A) in subsection (h) by striking ``507(a)(1)'' and 
        inserting ``507(a)(2)''; and
            (B) in subsection (i) by striking ``507(a)(1)'' each place 
        it appears and inserting ``507(a)(2)'';
        (5) in section 901(a) by striking ``507(a)(1)'' and inserting 
    ``507(a)(2)'';
        (6) in section 943(b)(5) by striking ``507(a)(1)'' and 
    inserting ``507(a)(2)'';
        (7) in section 1123(a)(1) by striking ``507(a)(1), 507(a)(2)'' 
    and inserting ``507(a)(2), 507(a)(3)'';
        (8) in section 1129(a)(9)--
            (A) in subparagraph (A) by striking ``507(a)(1) or 
        507(a)(2)'' and inserting ``507(a)(2) or 507(a)(3)''; and
            (B) in subparagraph (B) by striking ``507(a)(3)'' and 
        inserting ``507(a)(1)'';
        (9) in section 1226(b)(1) by striking ``507(a)(1)'' and 
    inserting ``507(a)(2)''; and
        (10) in section 1326(b)(1) by striking ``507(a)(1)'' and 
    inserting ``507(a)(2)''.
    (b) Related Conforming Amendment.--Section 6(e) of the Securities 
Investor Protection Act of 1970 (15 U.S.C. 78fff(e)) is amended by 
striking ``507(a)(1)'' and inserting ``507(a)(2)''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.