1.This Act may be cited as the
Helping Families Save Their Homes in
Bankruptcy Act of 2007
.
<enum>I</enum><header>Minimizing
foreclosures</header>
<section id="H64C719108DCB4B2396FDC1EEDB942A6"><enum>101.</enum><header>Special rules
for modification of loans secured by residences</header>
<subsection id="H78D7A5579DA141598B53983D2FAC6E62"><enum>(a)</enum><header>In
general</header><text>Section 1322(b) of title 11, United States Code, is
amended—</text>
<paragraph id="H7B9550A6CD644945B17F1792B46560D6"><enum>(1)</enum><text>in paragraph (10),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H3699A6D495FD4CF7AED7305B041DB083"><enum>(2)</enum><text>by redesignating
paragraph (11) as paragraph (12); and</text>
</paragraph><paragraph id="HF5EE6A8FCE144930B1C392757C97AB5C"><enum>(3)</enum><text>by inserting after
paragraph (10) the following:</text>
<quoted-block changed="deleted" committee-id="SSJU00" display-inline="no-display-inline" id="H4168BD75ABA647D3B4B2B6FCC14C434D" reported-display-style="strikethrough" style="OLC">
<paragraph id="H4480705045B646708787933BB15ED55C"><enum>(11)</enum><text>notwithstanding
paragraph (2) and otherwise applicable nonbankruptcy law—</text>
<subparagraph id="H61D24481B9DB4961B208A2CEE13300A3"><enum>(A)</enum><text>modify an allowed
secured claim secured by the debtor’s principal residence, as described in
subparagraph (B), if, after deduction from the debtor’s current monthly income
of the expenses permitted for debtors described in section 1325(b)(3) of this
title (other than amounts contractually due to creditors holding such allowed
secured claims and additional payments necessary to maintain possession of that
residence), the debtor has insufficient remaining income to retain possession
of the residence by curing a default and maintaining payments while the case is
pending, as provided under paragraph (5); and</text>
</subparagraph><subparagraph id="H32595197D1764393ADDE058FE200C3B7"><enum>(B)</enum><text>provide for
payment of such claim—</text>
<clause id="H2DA1B44670DE4175B573906B621FC9D"><enum>(i)</enum><text display-inline="yes-display-inline">for a period not to exceed 30 years
(reduced by the period for which the loan has been outstanding) from the date
of the order for relief under this chapter; and</text>
</clause><clause id="HD80D7C52C3E94C36BCAFC515E14215F8"><enum>(ii)</enum><text>at a rate of
interest accruing after such date calculated at a fixed annual percentage rate,
in an amount equal to the most recently published annual yield on conventional
mortgages published by the Board of Governors of the Federal Reserve System, as
of the applicable time set forth in the rules of the Board, plus a reasonable
premium for risk;
and</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H65094A4AC1584248BF2BE41C621B63CA"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 1325(a)(5) of title 11, United States Code, is
amended by inserting before <quote>with respect</quote> the following:
<quote>except as otherwise provided in section 1322(b)(11) of this
title,</quote>.</text>
</subsection></section><section id="HA7DCB668292D4E7BB5B9D7BD79CCA224"><enum>102.</enum><header>Waiver of
counseling requirement when homes are in foreclosure</header><text display-inline="no-display-inline">Section 109(h) of title 11, United States
Code, is amended by adding at the end the following:</text>
<quoted-block changed="deleted" committee-id="SSJU00" display-inline="no-display-inline" id="H7343F9051A3347BB91F5EC7EE5E3A2D6" reported-display-style="strikethrough" style="OLC">
<paragraph id="H6FA1CABD6E5642F799AA93914C038F3F" indent="up1"><enum>(5)</enum><text>Paragraph (1)
shall not apply with respect to a debtor who files with the court a
certification that a foreclosure sale of the debtor’s principal residence has
been
scheduled.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>II</enum><header>Providing other
debtor protections</header>
<section id="HA2DDCF83C90D4AB993A181DF233BEB01"><enum>201.</enum><header>Combating
excessive fees</header><text display-inline="no-display-inline">Section 1322(c)
of title 11, the United States Code, is amended—</text>
<paragraph id="HBE54278182384E31B50018F43CB35719"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph id="H6D391344B5A24B97BBA03213B857DE9F"><enum>(2)</enum><text>in paragraph (2),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4133E379291D42A19455EB20F7B971D9"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block changed="deleted" committee-id="SSJU00" display-inline="no-display-inline" id="H61643E77F13E402E90A28D7F72D3A367" reported-display-style="strikethrough" style="OLC">
<paragraph id="HD9374CB5AFDF46F8BC73061E7172038B"><enum>(3)</enum><text>to the extent that
an allowed secured claim is secured by the debtor’s principal residence, the
value of which is greater than the amount of such claim, fees, costs, or
charges arising during the pendency of the case may be added to secured debt
provided for by the plan only if—</text>
<subparagraph id="HDAE6FC43101B4CABAFEDD6B5735CB83"><enum>(A)</enum><text>notice of such
fees, costs or charges is filed with the court before the expiration of the
earlier of—</text>
<clause id="H5472A1528EDC4322ADD7DFC1833090A8"><enum>(i)</enum><text>1 year after the
time at which they are incurred; or</text>
</clause><clause id="H8062193FDC7A4AF6BC180020A7F289DC"><enum>(ii)</enum><text>60 days before
the conclusion of the case; and</text>
</clause></subparagraph><subparagraph id="HE6970A877D9D415FB2CF972FDC814CA1"><enum>(B)</enum><text>such fees, costs,
or charges are lawful, reasonable, and provided for in the underlying
contract;</text>
</subparagraph></paragraph><paragraph id="H0C19875E07114BDFBCA2CB23A94CEDE8"><enum>(4)</enum><text>the failure of a
party to give notice described in paragraph (3) shall be deemed a waiver of any
claim for fees, costs, or charges described in paragraph (3) for all purposes,
and any attempt to collect such fees, costs, or charges shall constitute a
violation of section 524(a)(2) of this title or, if the violation occurs before
the date of discharge, of section 362(a) of this title; and</text>
</paragraph><paragraph id="H40B8ECCCB3BE4DAB984167D9545504A5"><enum>(5)</enum><text>a plan may provide
for the waiver of any prepayment penalty on a claim secured by the principal
residence of the
debtor.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H34EA53779A1B4DA9B897A2D53DE2192"><enum>202.</enum><header>Maintaining
debtors’ legal claims</header><text display-inline="no-display-inline">Section
554(e) of title 11, United States Code, is amended by adding at the end the
following:</text>
<quoted-block changed="deleted" committee-id="SSJU00" display-inline="no-display-inline" id="H488668E1EFBF4A93AA26BC8DDE51B00" reported-display-style="strikethrough" style="OLC">
<subsection id="HDC2852010B764376B2462E5415A777EE"><enum>(e)</enum><text>In any action in
State or Federal court with respect to a claim or defense asserted by an
individual debtor in such action that was not scheduled under section 521(a)(1)
of this title, the trustee shall be allowed a reasonable time to request
joinder or substitution as the real party in interest. If the trustee does not
request joinder or substitution in such action, the debtor may proceed as the
real party in interest, and no such action shall be dismissed on the ground
that it is not prosecuted in the name of the real party in interest or on the
ground that the debtor’s claims were not properly scheduled in a case under
this
title.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H6218AAD2BB554E9481E204503FF6547B"><enum>203.</enum><header>Resolving
disputes</header><text display-inline="no-display-inline">Section 1334 of title
28, United States Code, is amended by adding at the end the following:
<quote>Notwithstanding any agreement for arbitration that is subject to chapter
1 of title 9, in any core proceeding under section 157(b) of this title
involving an individual debtor whose debts are primarily consumer debts, the
court may hear and determine the proceeding, and enter appropriate orders and
judgments, in lieu of referral to arbitration.</quote>.</text>
</section><section id="H55C698DEB695488100C917938E850283"><enum>204.</enum><header>Enacting a
homestead floor for debtors over 55 years of age</header>
<subsection id="HE23029639E624D1180B847BB63440361"><enum>(a)</enum><header>In
general</header><text>Section 522(b)(3) of title 11, United States Code, is
amended—</text>
<paragraph id="HC70E0FB6309848D48D8FB5A87254B7AA"><enum>(1)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HB3BBE7FCEA6A43C895ABCB4BEF5C56DB"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking the period
at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="H359B32A973814D83992680617E78D727"><enum>(3)</enum><text>by adding at the
end and inserting the following:</text>
<quoted-block changed="deleted" committee-id="SSJU00" display-inline="no-display-inline" id="H17F7189F919B4B118D00F04FF8D4D6DE" reported-display-style="strikethrough" style="OLC">
<subparagraph id="H1BC76AE73A9D445296B637582953A0C4" indent="up1"><enum>(D)</enum><text>if the debtor, as
of the date of the filing of the petition, is 55 years old or older, the
debtor's aggregate interest, not to exceed $75,000 in value, in real property
or personal property that the debtor or a dependent of the debtor uses as a
principal residence, or in a cooperative that owns property that the debtor or
a dependent of the debtor uses as a principal
residence.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF2C70CEDBC6B4D748F825DE2C8DBB6FB"><enum>(b)</enum><header>Exemption
authority</header><text>Section 522(d)(1) of title 11, United States Code, is
amended by inserting <quote>or, if the debtor is 55 years of age or older,
$75,000 in value,</quote> before <quote>in real property</quote>.</text>
</subsection></section><section id="H139B03BB31394017BFD7D8D832C0CDD"><enum>205.</enum><header>Disallowing
claims from violations of consumer protection laws</header><text display-inline="no-display-inline">Section
502(b) of title 11, United States Code, is amended—</text>
<paragraph id="H8FB2DB275071488298DA8701AF9417CA"><enum>(1)</enum><text>in paragraph (8),
by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="H171B55911AE54A7B9C4D6FA4C6FE4400"><enum>(2)</enum><text>in paragraph (9),
by striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="H56EECC94B14442D2A6EC27952811D1BD"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block changed="deleted" committee-id="SSJU00" display-inline="no-display-inline" id="H3DA38837198B4F1A8E9E091958E06DB4" reported-display-style="strikethrough" style="OLC">
<paragraph commented="no" id="H25BB2BAD99F84FFB9DFC30BA7D9000E1"><enum>(10)</enum><text>the claim is
subject to any remedy for damages or rescission due to failure to comply with
any applicable requirement under the Truth in Lending Act (15 U.S.C. 1601 et
seq.), or any other provision of applicable State or Federal consumer
protection law that was in force when the noncompliance took place,
notwithstanding the prior entry of a foreclosure
judgment.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section>
1.This Act may be cited as the
Helping Families Save Their Homes in
Bankruptcy Act of 2008
.
<enum>I</enum><header>Minimizing
foreclosures</header>
<section id="id8f9d1922-a560-49ea-adbb-13513725ace0"><enum>101.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 101 of title 11, United States Code,
is amended—</text>
<paragraph id="H17BF797659904A0595451E1EA668EFE1"><enum>(1)</enum><text>by redesignating
paragraphs (40A) and (40B) as paragraphs (40B) and (40C), respectively;</text>
</paragraph><paragraph id="H548E1BA1D8CA4BB298BF08AAE6E7A336"><enum>(2)</enum><text>by inserting after
paragraph (40) the following:</text>
<quoted-block changed="added" committee-id="SSJU00" display-inline="no-display-inline" id="HC3DF5163BC59451FBC7EA28223A7B7A3" reported-display-style="italic" style="traditional">
<paragraph id="H690CF687D3FC406B85290051A2632439"><enum>(40A)</enum><text display-inline="yes-display-inline">The term <quote>nontraditional
mortgage</quote> means a security interest in the debtor’s principal residence
that secures a debt for a loan that at any period during the term of the loan
provides for the deferral of payment of principal or interest through
permitting periodic payments that do not cover the full amount of interest due
or that cover only the interest due, except that such term excludes—</text>
<subparagraph id="id0552731DD6E74385921496E9464B9866"><enum>(A)</enum><text>a loan that at any period
during the term of the loan provides for the deferral of payment of principal
through permitting periodic payments that cover only the interest due, if the
creditor demonstrates that it determined in good faith at the time the loan was
consummated, after undergoing a full underwriting process based on verified and
documented information, that the debtor had a reasonable ability to repay at
the full interest and principal payment amount (assuming an initial 30 year
full amortization), and payments under the loan resulted in a debt-to-income
ratio of the debtor in an amount equal to or less than that which would have
been permitted under guidelines and directives established by the Secretary of
Housing and Urban Development pursuant to section 203.33 of title 24, Code of
Federal Regulations, for loans subject to such section;</text>
</subparagraph><subparagraph id="HEEB9FF3066C94E099E6DEC67E866FD24"><enum>(B)</enum><text>a home equity line of
credit that is in a subordinate lien position; and</text>
</subparagraph><subparagraph id="HC6477602DCDE4D53B021933900BBE857"><enum>(C)</enum><text>a reverse
mortgage.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H80F4BCDCBC814BBC0021054815C190BB"><enum>(3)</enum><text>by redesignating
paragraphs (53B) through (53D) as paragraphs (53C), (53D), (53E), and (53F),
respectively; and</text>
</paragraph><paragraph id="HB5F57AAB687C42D281745BDF6C40D900"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting after paragraph (53A) the
following:</text>
<quoted-block changed="added" committee-id="SSJU00" display-inline="no-display-inline" id="H818289E12B874768886E54906923C13B" reported-display-style="italic" style="traditional">
<paragraph id="H2F34FD6033B24CEEAF99900093DCAE9"><enum>(53B)</enum><text>The term
<quote>subprime mortgage</quote> means a security interest in the debtor’s
principal residence that secures a debt for a loan that has an annual
percentage rate that is greater than—</text>
<subparagraph id="H71F2A0CF3DAE4885A629BC882E03211"><enum>(A)</enum><text display-inline="yes-display-inline">the sum of 3 percent plus the yield on
United States Treasury securities having comparable periods of maturity, if the
loan is secured by a first mortgage or first deed of trust; or</text>
</subparagraph><subparagraph id="H3AF14B2185E04A1796E4C9782C28007D"><enum>(B)</enum><text display-inline="yes-display-inline">the sum of 5 percent plus the yield on
United States Treasury securities having comparable periods of maturity, if the
loan is secured by a subordinate mortgage or subordinate deed of trust.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Without regard to whether such loan is
subject to or reportable under the Home Mortgage Disclosure Act, the difference
between the annual percentage rate of such loan and the yield on United States
Treasury securities having comparable periods of maturity shall be determined
using the procedures and calculation methods applicable to loans that are
subject to the reporting requirements of such Act, except that such yield shall
be determined as of the 15th day of the month preceding the month in which a
completed application is submitted for such loan. If such loan provides for a
fixed interest rate for an introductory period and then resets or adjusts to a
variable interest rate, the determination of the annual percentage rate shall
be based on the greater of the introductory rate and the fully indexed rate.
For purposes of this paragraph, the term <quote>fully indexed rate</quote>
means the prevailing index rate on a residential mortgage loan at the time at
which the loan is made, plus the margin that will apply after the expiration of
an introductory interest
rate.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id17233AE707964750B128D8EFCE3DAE25"><enum>102.</enum><header>Special rules for
modification of loans secured by residences</header>
<subsection id="id24cf5a16-12a3-489b-a2ea-66d011bccd6f"><enum>(a)</enum><header>In
general</header><text>Section 1322(b) of title 11, United States Code, is
amended—</text>
<paragraph id="idda2542b9-8485-413b-a76b-66f9b9557d41"><enum>(1)</enum><text>in paragraph (10), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id7723d09d-9323-44c6-907e-b9019a777cd1"><enum>(2)</enum><text>by redesignating
paragraph (11) as paragraph (12); and</text>
</paragraph><paragraph id="idc8796a6f-e6e5-443b-a035-3d27c3297b5b"><enum>(3)</enum><text>by inserting after
paragraph (10) the following:</text>
<quoted-block changed="added" committee-id="SSJU00" display-inline="no-display-inline" id="ida5161305-3ed6-44ad-b97e-e36732c20d86" reported-display-style="italic" style="OLC">
<paragraph id="id6a55a865-be0d-4c26-b9e5-b7cebd579339"><enum>(11)</enum><text>notwithstanding
paragraph (2) and otherwise applicable nonbankruptcy law—</text>
<subparagraph id="id1fdfb4a4-faf1-41a3-ad3a-2450497e7b5a"><enum>(A)</enum><text>modify an allowed secured
claim for a debt incurred prior to the effective date of this paragraph secured
by a nontraditional mortgage, or a subprime mortgage, and any lien subordinate
to such claim, on the debtor’s principal residence, as described in
subparagraph (B), if, after deduction from the debtor’s current monthly income
of the expenses permitted for debtors described in section 1325(b)(3) of this
title (other than amounts contractually due to creditors holding such allowed
secured claims and additional payments necessary to maintain possession of that
residence), the debtor has insufficient remaining income to retain possession
of the residence by curing a default and maintaining payments while the case is
pending, as provided under paragraph (5);</text>
</subparagraph><subparagraph id="id4cd13061-44d2-49aa-b281-1c3abca0fd5a"><enum>(B)</enum><text>provide for payment of
such claim—</text>
<clause id="ID031f9462ac6b42d5b77b7860fcf75d01"><enum>(i)</enum><text>in an amount equal to the
amount of the allowed secured claim;</text>
</clause><clause id="ida3f43250-8fe7-44c9-a622-dc00482c72a0"><enum>(ii)</enum><text display-inline="yes-display-inline">for a period that is the longer of 30 years
(reduced by the period for which the loan has been outstanding) or the
remaining term of such loan, beginning on the date of the order for relief
under this chapter; and</text>
</clause><clause id="id0cdbf383-be49-4f9c-8af9-a260636fd853"><enum>(iii)</enum><text>at a rate of interest
accruing after such date calculated at a fixed annual percentage rate, in an
amount equal to the most recently published annual yield on conventional
mortgages published by the Board of Governors of the Federal Reserve System, as
of the applicable time set forth in the rules of the Board, plus a reasonable
premium for risk; and</text>
</clause></subparagraph><subparagraph id="ID37d8b588b612480288901bf03049ac8b"><enum>(C)</enum><text>if a claim has been
modified to an amount below the original principal of the loan pursuant to
subparagraph (B)(i) and the debtor's principal residence is sold during the
term of the plan, the holder of the claim shall be entitled to receive, in
addition to the unpaid portion of the allowed secured claim, the net proceeds
of the sale, or the amount of the holder's allowed unsecured claim, whichever
is less;
and</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id7ba5a072-5d10-40d4-a38f-d48ff20ab68c"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 1325(a)(5) of title 11, United States Code, is
amended by inserting before <quote>with respect</quote> the following:
<quote>except as otherwise provided in section 1322(b)(11) of this
title,</quote>.</text>
</subsection></section><section id="idce0abb8a-68d9-4649-97ff-5328ec7ffeab"><enum>103.</enum><header>Waiver of counseling
requirement when homes are in foreclosure</header><text display-inline="no-display-inline">Section 109(h) of title 11, United States
Code, is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="SSJU00" display-inline="no-display-inline" id="ide4649f54-911d-47f4-9b8c-f445bf182ea2" reported-display-style="italic" style="OLC">
<paragraph id="id2f930f43-b6c0-4b4f-a218-b6b45e95f597" indent="up1"><enum>(5)</enum><text>Paragraph (1) shall not
apply with respect to a debtor who files with the court a certification that a
foreclosure sale of the debtor’s principal residence has been
scheduled.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>II</enum><header>Providing other debtor
protections</header>
<section id="idb86f0a5e-6259-4f6e-ac7a-955607439cf7"><enum>201.</enum><header>Combating excessive
fees</header><text display-inline="no-display-inline">Section 1322(c) of title
11, the United States Code, is amended—</text>
<paragraph id="ida2027d42-c768-4b47-8fdf-55000ec6493c"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph id="id83a893ab-8b14-4c66-b4b1-1f95559396cb"><enum>(2)</enum><text>in paragraph (2), by
striking the period at the end and inserting a semicolon; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2f6dc21e-1f36-4394-978a-710dc7edfea5"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="SSJU00" display-inline="no-display-inline" id="id1b28a0b6-3d6d-484e-a0ba-42ffca2c9137" reported-display-style="italic" style="OLC">
<paragraph id="id9a98dc15-4dbb-4e5a-87a7-34433dd53d35"><enum>(3)</enum><text>the plan need not provide
for the payment of, and the debtor, the debtor’s property, and property of the
estate shall not be liable for, any fee, cost, or charge, notwithstanding
section 506(b), that arises in connection with a claim secured by the debtor’s
principal residence if the event that gives rise to such fee, cost, or charge
occurs while the case is pending but before the discharge order, except to the
extent that—</text>
<subparagraph id="id959822fd-d4a1-4226-b2da-2417284c5d44"><enum>(A)</enum><text>notice of such fees,
costs or charges is filed with the court, and served on the debtor and the
trustee, before the expiration of the earlier of—</text>
<clause id="idd34bd78c-0eba-42db-947d-efc568bdbb1c"><enum>(i)</enum><text>1 year after the event
that gives rise to such fee, cost, or charge occurs; or</text>
</clause><clause id="id646c8303-7aaf-4223-9af7-35203e16c6b0"><enum>(ii)</enum><text>60 days before the
closing of the case; and</text>
</clause></subparagraph><subparagraph id="id39f96011-f260-44da-b7a9-94cc98419d15"><enum>(B)</enum><text>such fees, costs, or
charges are lawful, reasonable, and provided for in the agreement under which
such claim or security interest arose;</text>
</subparagraph></paragraph><paragraph id="ide25ad8a3-c3fa-49d9-91d3-ee613bf0f61f"><enum>(4)</enum><text>the failure of a party to
give notice described in paragraph (3) shall be deemed a waiver of any claim
for fees, costs, or charges described in paragraph (3) for all purposes, and
any attempt to collect such fees, costs, or charges shall constitute a
violation of section 524(a)(2) of this title or, if the violation occurs before
the date of discharge, of section 362(a) of this title; and</text>
</paragraph><paragraph id="id777f3e0b-0df5-4212-9db5-d1c3c6e08ab4"><enum>(5)</enum><text>a plan may provide for
the waiver of any prepayment penalty on a claim secured by the principal
residence of the
debtor.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ided5808db-d9df-4035-a340-d8204c018310"><enum>202.</enum><header>Maintaining debtors’
legal claims</header><text display-inline="no-display-inline">Section 554(e) of
title 11, United States Code, is amended by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="SSJU00" display-inline="no-display-inline" id="id046942fc-c19e-402e-9247-445709170436" reported-display-style="italic" style="OLC">
<subsection id="id57ac1a28-2d21-4cce-bad1-5ada4cbf90bd"><enum>(e)</enum><text>In any action in State or
Federal court with respect to a claim or defense asserted by an individual
debtor in such action that was not scheduled under section 521(a)(1) of this
title, the trustee shall be allowed a reasonable time to request joinder or
substitution as the real party in interest. If the trustee does not request
joinder or substitution in such action, the debtor may proceed as the real
party in interest, and no such action shall be dismissed on the ground that it
is not prosecuted in the name of the real party in interest or on the ground
that the debtor’s claims were not properly scheduled in a case under this
title.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id3e145b6b-e140-473a-a3ae-b976a7652590"><enum>203.</enum><header>Resolving
disputes</header><text display-inline="no-display-inline">Section 1334 of title
28, United States Code, is amended by adding at the end the following:
<quote>Notwithstanding any agreement for arbitration that is subject to chapter
1 of title 9, in any core proceeding under section 157(b) of this title
involving an individual debtor whose debts are primarily consumer debts, the
court may hear and determine the proceeding, and enter appropriate orders and
judgments, in lieu of referral to arbitration.</quote>.</text>
</section><section id="id6b84bc48-6766-408f-825f-33ecdfc3e668"><enum>204.</enum><header>Enacting a homestead
floor for debtors over 55 years of age</header>
<subsection id="id2e5d3322-6101-4965-bf6e-8f36c1b0a96d"><enum>(a)</enum><header>In
general</header><text>Section 522(b)(3) of title 11, United States Code, is
amended—</text>
<paragraph id="idb561f632-efb8-42e1-8acb-b52edea6b100"><enum>(1)</enum><text>in subparagraph (B), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="ida0819559-db26-4858-90f2-01847e81b40b"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking the period
at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="idbe04aa1a-4c0e-452e-9f9a-5d3960aba434"><enum>(3)</enum><text>by adding at the end and
inserting the following:</text>
<quoted-block changed="added" committee-id="SSJU00" display-inline="no-display-inline" id="idfc50d888-95c6-422b-b506-f0b2ed9471f6" reported-display-style="italic" style="OLC">
<subparagraph id="id7a6c0427-6b76-4252-b5a9-f09fae563907" indent="up1"><enum>(D)</enum><text>if the debtor, as of the
date of the filing of the petition, is 55 years old or older, the debtor's
aggregate interest, not to exceed $75,000 in value, in real property or
personal property that the debtor or a dependent of the debtor uses as a
principal residence, or in a cooperative that owns property that the debtor or
a dependent of the debtor uses as a principal
residence.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id959c2d93-4740-473d-b8da-ea5ceb4ecf8e"><enum>(b)</enum><header>Exemption
authority</header><text>Section 522(d)(1) of title 11, United States Code, is
amended by inserting <quote>or, if the debtor is 55 years of age or older,
$75,000 in value,</quote> before <quote>in real property</quote>.</text>
</subsection></section><section id="idd025a1ff-ff68-49d5-a499-6fccb3476c13"><enum>205.</enum><header>Disallowing claims
from violations of consumer protection laws</header><text display-inline="no-display-inline">Section 502(b) of title 11, United States
Code, is amended—</text>
<paragraph id="id36419139-4bf8-4222-9329-284cbbfea4bf"><enum>(1)</enum><text>in paragraph (8), by
striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="idb68db81e-7578-48ba-bbec-c86524b2df3f"><enum>(2)</enum><text>in paragraph (9), by
striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="idd545d442-3eb0-4be9-ba0e-fe468c7a11d9"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="SSJU00" display-inline="no-display-inline" id="id15cb4757-abc0-45ef-9e5e-4fe819c57164" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="id43b0f9df-40fc-4b71-a223-35f8c2c8c0ad"><enum>(10)</enum><text>the claim is subject to
any remedy for damages or rescission due to failure to comply with any
applicable requirement under the Truth in Lending Act (15 U.S.C. 1601 et seq.),
or any other provision of applicable State or Federal consumer protection law
that was in force when the noncompliance took place, notwithstanding the prior
entry of a foreclosure
judgment.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section>
July 29 (legislative day, July 28), 2008
Reported with an amendment