[Congressional Record Volume 144, Number 118 (Wednesday, September 9, 1998)]
[Senate]
[Pages S10101-S10109]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 CONSUMER BANKRUPTCY REFORM ACT OF 1998

  The PRESIDING OFFICER. The clerk will report the bill.
  The bill clerk read as follows:

       A bill (S. 1301) to amend title 11, United States Code, to 
     provide for consumer protection, and for other purposes.

  The Senate proceeded to consider the bill, which had been reported 
from the Committee on the Judiciary, with an amendment to strike all 
after the enacting clause and inserting in lieu thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Consumer 
     Bankruptcy Reform Act of 1998''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--NEEDS-BASED BANKRUPTCY

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.

        TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS

Sec. 201. Allowance of claims or interests.
Sec. 202. Exceptions to discharge.
Sec. 203. Effect of discharge.
Sec. 204. Automatic stay.
Sec. 205. Discharge.
Sec. 206. Discouraging predatory lending practices.

  TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE 
                           BANKRUPTCY SYSTEM

Sec. 301. Notice of alternatives.
Sec. 302. Fair treatment of secured creditors under chapter 13.
Sec. 303. Discouragement of bad faith repeat filings.
Sec. 304. Timely filing and confirmation of plans under chapter 13.
Sec. 305. Application of the codebtor stay only when the stay protects 
              the debtor.
Sec. 306. Improved bankruptcy statistics.
Sec. 307. Audit procedures.
Sec. 308. Creditor representation at first meeting of creditors.
Sec. 309. Fair notice for creditors in chapter 7 and 13 cases.
Sec. 310. Stopping abusive conversions from chapter 13.
Sec. 311. Prompt relief from stay in individual cases.
Sec. 312. Dismissal for failure to timely file schedules or provide 
              required information.
Sec. 313. Adequate time for preparation for a hearing on confirmation 
              of the plan.
Sec. 314. Discharge under chapter 13.
Sec. 315. Nondischargeable debts.
Sec. 316. Credit extensions on the eve of bankruptcy presumed 
              nondischargeable.
Sec. 317. Definition of household goods and antiques.
Sec. 318. Relief from stay when the debtor does not complete intended 
              surrender of consumer debt collateral.
Sec. 319. Adequate protection of lessors and purchase money secured 
              creditors.
Sec. 320. Limitation.
Sec. 321. Miscellaneous improvements.
Sec. 322. Bankruptcy judgeships.
Sec. 323. Preferred payment of child support in chapter 7 proceedings.
Sec. 324. Preferred payment of child support in chapter 13 proceedings.
Sec. 325. Payment of child support required to obtain a discharge in 
              chapter 13 proceedings.
Sec. 326. Child support and alimony collection.
Sec. 327. Nondischargeability of certain debts for alimony, 
              maintenance, and support.
Sec. 328. Enforcement of child and spousal support.
Sec. 329. Dependent child defined.

                    TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Definitions.
Sec. 402. Adjustment of dollar amounts.
Sec. 403. Extension of time.
Sec. 404. Who may be a debtor.
Sec. 405. Penalty for persons who negligently or fraudulently prepare 
              bankruptcy petitions.
Sec. 406. Limitation on compensation of professional persons.
Sec. 407. Special tax provisions.
Sec. 408. Effect of conversion.
Sec. 409. Automatic stay.
Sec. 410. Amendment to table of sections.
Sec. 411. Allowance of administrative expenses.
Sec. 412. Priorities.
Sec. 413. Exemptions.
Sec. 414. Exceptions to discharge.
Sec. 415. Effect of discharge.
Sec. 416. Protection against discriminatory treatment.
Sec. 417. Property of the estate.
Sec. 418. Limitations on avoiding powers.
Sec. 419. Preferences.
Sec. 420. Postpetition transactions.
Sec. 421. Technical amendment.
Sec. 422. Setoff.
Sec. 423. Disposition of property of the estate.
Sec. 424. General provisions.
Sec. 425. Appointment of elected trustee.
Sec. 426. Abandonment of railroad line.
Sec. 427. Contents of plan.
Sec. 428. Discharge under chapter 12.
Sec. 429. Extensions.
Sec. 430. Bankruptcy cases and proceedings.
Sec. 431. Knowing disregard of bankruptcy law or rule.
Sec. 432. Effective date; application of amendments.
                    TITLE I--NEEDS-BASED BANKRUPTCY

     SEC. 101. CONVERSION.

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

     SEC. 102. DISMISSAL OR CONVERSION.

       (a) In General.--Section 707 of title 11, United States 
     Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

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

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

       (I) by striking ``but not'' and inserting ``or'';
       (II) by inserting ``, or, with the debtor's consent, 
     convert such a case to a case under chapter 13 of this 
     title,'' after ``consumer debts''; and
       (III) by striking ``substantial abuse'' and inserting 
     ``abuse''; and

       (ii) by striking the last sentence and inserting the 
     following:
       ``(2) In considering under paragraph (1) whether the 
     granting of relief would be an abuse of the provisions of 
     this chapter, the court shall consider whether--
       ``(A) under section 1325(b)(1), on the basis of the current 
     income of the debtor, the debtor could pay an amount greater 
     than or equal to 20 percent of unsecured claims that are not 
     considered to be priority claims (as determined under 
     subchapter I of chapter 5); or

[[Page S10102]]

       ``(B) the debtor filed a petition for the relief in bad 
     faith.
       ``(3)(A) If a panel trustee appointed under section 
     586(a)(1) of title 28 brings a motion for dismissal or 
     conversion under this subsection and the court grants that 
     motion and finds that the action of the counsel for the 
     debtor in filing under this chapter was not substantially 
     justified, the court shall order the counsel for the debtor 
     to reimburse the trustee for all reasonable costs in 
     prosecuting the motion, including reasonable attorneys' fees.
       ``(B) If the court finds that the attorney for the debtor 
     violated Rule 9011, at a minimum, the court shall order--
       ``(i) the assessment of an appropriate civil penalty 
     against the counsel for the debtor; and
       ``(ii) the payment of the civil penalty to the panel 
     trustee or the United States trustee.
       ``(C) In the case of a petition referred to in subparagraph 
     (B), the signature of an attorney shall constitute a 
     certificate that the attorney has--
       ``(i) performed a reasonable investigation into the 
     circumstances that gave rise to the petition; and
       ``(ii) determined that the petition--
       ``(I) is well grounded in fact; and
       ``(II) is warranted by existing law or a good faith 
     argument for the extension, modification, or reversal of 
     existing law and does not constitute an abuse under paragraph 
     (1) of this subsection.
       ``(4)(A) Except as provided in subparagraph (B), the court 
     may award a debtor all reasonable costs in contesting a 
     motion brought by a party in interest (other than a panel 
     trustee) under this subsection (including reasonable 
     attorneys' fees) if--
       ``(i) the court does not grant the motion; and
       ``(ii) the court finds that--
       ``(I) the position of the party that brought the motion was 
     not substantially justified; or
       ``(II) the party brought the motion solely for the purpose 
     of coercing a debtor into waiving a right guaranteed to the 
     debtor under this title.
       ``(B) A party in interest that has a claim of an aggregate 
     amount less than $1,000 shall not be subject to subparagraph 
     (A).
       ``(5) However, a party in interest may not bring a motion 
     under this section if the debtor and the debtor's spouse 
     combined, as of the date of the order for relief, have 
     current monthly total income equal to or less than the 
     national median household monthly income calculated on a 
     monthly basis for a household of equal size. However, for a 
     household of more than 4 individuals, the median income shall 
     be that of a household of 4 individuals plus $583 for each 
     additional member of that household.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 7 of title 11, United States Code, is 
     amended by striking the item relating to section 707 and 
     inserting the following:

``707. Dismissal of a case or conversion to a case under chapter 13.''.
        TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS

     SEC. 201. ALLOWANCE OF CLAIMS OR INTERESTS.

       Section 502 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(k)(1) The court may award the debtor reasonable 
     attorneys' fees and costs if, after an objection is filed by 
     a debtor, the court--
       ``(A)(i) disallows the claim; or
       ``(ii) reduces the claim by an amount greater than 20 
     percent of the amount of the initial claim filed by a party 
     in interest; and
       ``(B) finds the position of the party filing the claim is 
     not substantially justified.
       ``(2) If the court finds that the position of a claimant 
     under this section is not substantially justified, the court 
     may, in addition to awarding a debtor reasonable attorneys' 
     fees and costs under paragraph (1), award such damages as may 
     be required by the equities of the case.''.

     SEC. 202. EXCEPTIONS TO DISCHARGE.

       Section 523 of title 11, United States Code, is amended--
       (1) in subsection (a)(2)(A), by striking ``a false 
     representation'' and inserting ``a material false 
     representation upon which the defrauded person justifiably 
     relied''; and
       (2) by striking subsection (d) and inserting the following:
       ``(d)(1) Subject to paragraph (3), if a creditor requests a 
     determination of dischargeability of a consumer debt under 
     this section and that debt is discharged, the court shall 
     award the debtor reasonable attorneys' fees and costs.
       ``(2) In addition to making an award to a debtor under 
     paragraph (1), if the court finds that the position of a 
     creditor in a proceeding covered under this section is not 
     substantially justified, the court may award reasonable 
     attorneys' fees and costs under paragraph (1) and such 
     damages as may be required by the equities of the case.
       ``(3)(A) A creditor may not request a determination of 
     dischargeability of a consumer debt under subsection (a)(2) 
     if--
       ``(i) before the filing of the petition, the debtor made a 
     good faith effort to negotiate a reasonable alternative 
     repayment schedule (including making an offer of a reasonable 
     alternative repayment schedule); and
       ``(ii) that creditor refused to negotiate an alternative 
     payment schedule, and that refusal was not reasonable.
       ``(B) For purposes of this paragraph, the debtor shall have 
     the burden of proof of establishing that--
       ``(i) an offer made by that debtor under subparagraph 
     (A)(i) was reasonable; and
       ``(ii) the refusal to negotiate by the creditor involved to 
     was not reasonable.''.

     SEC. 203. EFFECT OF DISCHARGE.

       Section 524 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(i) The willful failure of a creditor to credit payments 
     received under a plan confirmed under this title (including a 
     plan of reorganization confirmed under chapter 11 of this 
     title) in the manner required by the plan (including 
     crediting the amounts required under the plan) shall 
     constitute a violation of an injunction under subsection 
     (a)(2).
       ``(j) An individual who is injured by the failure of a 
     creditor to comply with the requirements for a reaffirmation 
     agreement under subsections (c) and (d), or by any willful 
     violation of the injunction under subsection (a)(2), shall be 
     entitled to recover--
       ``(1) the greater of--
       ``(A)(i) the amount of actual damages; multiplied by
       ``(ii) 3; or
       ``(B) $5,000; and
       ``(2) costs and attorneys' fees.''.

     SEC. 204. AUTOMATIC STAY.

       Section 362(h) of title 11, United States Code, is amended 
     to read as follows:
       ``(h)(1) An individual who is injured by any willful 
     violation of a stay provided in this section shall be 
     entitled to recover--
       ``(A) actual damages; and
       ``(B) reasonable costs, including attorneys' fees.
       ``(2) In addition to recovering actual damages, costs, and 
     attorneys' fees under paragraph (1), an individual described 
     in paragraph (1) may recover punitive damages in appropriate 
     circumstances.''.

     SEC. 205. DISCHARGE.

       Section 727 of title 11, United States Code, is amended--
       (1) in subsection (c), by adding at the end the following:
       ``(3)(A) A creditor may not request a determination of 
     dischargeability of a consumer debt under subsection (a) if--
       ``(i) before the filing of the petition, the debtor made a 
     good faith effort to negotiate a reasonable alternative 
     repayment schedule (including making an offer of a reasonable 
     alternative repayment schedule); and
       ``(ii) that creditor refused to negotiate an alternative 
     payment schedule, and that refusal was not reasonable.
       ``(B) For purposes of this paragraph, the debtor shall have 
     the burden of proof of establishing that--
       ``(i) an offer made by that debtor under subparagraph 
     (A)(i) was reasonable; and
       ``(ii) the refusal to negotiate by the creditor involved to 
     was not reasonable.''; and
       (2) by adding at the end the following:
       ``(f)(1) The court may award the debtor reasonable 
     attorneys' fees and costs in any case in which a creditor 
     files a motion to deny relief to a debtor under this section 
     and that motion--
       ``(A) is denied; or
       ``(B) is withdrawn after the debtor has replied.
       ``(2) If the court finds that the position of a party 
     filing a motion under this section is not substantially 
     justified, the court may assess against the creditor such 
     damages as may be required by the equities of the case.''.

     SEC. 206. DISCOURAGING PREDATORY LENDING PRACTICES.

       Section 502(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (8), by striking ``or'' at the end;
       (2) in paragraph (9), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(10) the claim is based on a secured debt if the creditor 
     has failed to comply with the requirements of subsection (a), 
     (b), (c), (d), (e), (f), (g), (h), or (i) of section 129 of 
     the Truth in Lending Act (15 U.S.C. 1639).''.
  TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE 
                           BANKRUPTCY SYSTEM

     SEC. 301. NOTICE OF ALTERNATIVES.

       (a) In General.--Section 342 of title 11, United States 
     Code, is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Before the commencement of a case under this title by 
     an individual whose debts are primarily consumer debts, that 
     individual shall be given or obtain (as required in section 
     521(a)(1), as part of the certification process under 
     subchapter 1 of chapter 5) a written notice prescribed by the 
     United States trustee for the district in which the petition 
     is filed pursuant to section 586 of title 28. The notice 
     shall contain the following:
       ``(1) A brief description of chapters 7, 11, 12, and 13 and 
     the general purpose, benefits, and costs of proceeding under 
     each of those chapters.
       ``(2) A brief description of services that may be available 
     to that individual from an independent nonprofit debt 
     counseling service.
       ``(3)(A) The name, address, and telephone number of each 
     nonprofit debt counseling service with an office located in 
     the district in which the petition is filed, if any.
       ``(B) Any nonprofit debt counseling service described in 
     subparagraph (A) that has registered with the clerk of the 
     bankruptcy court on or before December 10 of the preceding 
     year shall be included in the list referred to in that 
     clause, unless the chief bankruptcy judge of the district 
     involved, after giving notice to the debt counseling service 
     and the United States trustee and opportunity for a hearing, 
     orders, for good cause, that a particular debt counseling 
     service shall not be so listed.''.
       (b) Debtor's Duties.--Section 521 of title 11, United 
     States Code, is amended--
       (1) by inserting ``(a)'' before ``The debtor 
     shall--'';
       (2) by striking paragraph (1) and inserting the following:
       ``(1) file--
       ``(A) a list of creditors; and

[[Page S10103]]

       ``(B) unless the court orders otherwise--
       ``(i) a schedule of assets and liabilities;
       ``(ii) a schedule of current income and current 
     expenditures;
       ``(iii) a statement of the debtor's financial affairs and, 
     if applicable, a certificate--

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

       ``(iv) copies of any Federal tax returns, including any 
     schedules or attachments, filed by the debtor for the 3-year 
     period preceding the order for relief;
       ``(v) copies of all payment advices or other evidence of 
     payment, if any, received by the debtor from any employer of 
     the debtor in the period 60 days prior to the filing of the 
     petition;
       ``(vi) a statement of the amount of projected monthly net 
     income, itemized to show how calculated; and
       ``(vii) a statement disclosing any reasonably anticipated 
     increase in income or expenditures over the 12-month period 
     following the date of filing;''; and
       (3) by adding at the end the following:
       ``(b)(1) At any time, a creditor, in the case of an 
     individual under chapter 7 or 13, may file with the court 
     notice that the creditor requests the petition, schedules, 
     and a statement of affairs filed by the debtor in the case 
     and the court shall make those documents available to the 
     creditor who requests those documents.
       ``(2) At any time, a creditor, in a case under chapter 13, 
     may file with the court notice that the creditor requests the 
     plan filed by the debtor in the case and the court shall make 
     that plan available to the creditor who requests that plan.
       ``(c) An individual debtor in a case under chapter 7 or 13 
     shall file with the court--
       ``(1) at the time filed with the taxing authority, all tax 
     returns, including any schedules or attachments, with respect 
     to the period from the commencement of the case until such 
     time as the case is closed;
       ``(2) at the time filed with the taxing authority, all tax 
     returns, including any schedules or attachments, that were 
     not filed with the taxing authority when the schedules under 
     subsection (a)(1) were filed with respect to the period that 
     is 3 years before the order for relief;
       ``(3) any amendments to any of the tax returns, including 
     schedules or attachments, described in paragraph (1) or (2); 
     and
       ``(4) in a case under chapter 13, a statement subject to 
     the penalties of perjury by the debtor of the debtor's income 
     and expenditures in the preceding tax year and monthly 
     income, that shows how the amounts are calculated--
       ``(A) beginning on the date that is the later of 90 days 
     after the close of the debtor's tax year or 1 year after the 
     order for relief, unless a plan has been confirmed; and
       ``(B) thereafter, on or before the date that is 45 days 
     before each anniversary of the confirmation of the plan until 
     the case is closed.
       ``(d)(1) A statement referred to in subsection (c)(4) shall 
     disclose--
       ``(A) the amount and sources of income of the debtor;
       ``(B) the identity of any persons responsible with the 
     debtor for the support of any dependents of the debtor; and
       ``(C) the identity of any persons who contributed, and the 
     amount contributed, to the household in which the debtor 
     resides.
       ``(2) The tax returns, amendments, and statement of income 
     and expenditures described in paragraph (1) shall be 
     available to the United States trustee, any bankruptcy 
     administrator, any trustee, and any party in interest for 
     inspection and copying, subject to the requirements of 
     subsection (e).
       ``(e)(1) Not later than 30 days after the date of enactment 
     of the Consumer Bankruptcy Reform Act of 1998, the Director 
     of the Administrative Office of the United States Courts 
     shall establish procedures for safeguarding the 
     confidentiality of any tax information required to be 
     provided under this section.
       ``(2) The procedures under paragraph (1) shall include 
     restrictions on creditor access to tax information that is 
     required to be provided under this section.
       ``(3) Not later than 1 year after the date of enactment of 
     the Consumer Bankruptcy Reform Act of 1998, the Director of 
     the Administrative Office of the United States Courts shall 
     prepare, and submit to Congress a report that--
       ``(A) assesses the effectiveness of the procedures under 
     paragraph (1); and
       ``(B) if appropriate, includes proposed legislation--
       ``(i) to further protect the confidentiality of tax 
     information; and
       ``(ii) to provide penalties for the improper use by any 
     person of the tax information required to be provided under 
     this section.''.
       (c) Title 28.--Section 586(a) of title 28, United States 
     Code, is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(7) on or before January 1 of each calendar year, and 
     also not later than 30 days after any change in the nonprofit 
     debt counseling services registered with the bankruptcy 
     court, prescribe and make available on request the notice 
     described in section 342(b)(3) of title 11 for each district 
     included in the region.''.

     SEC. 302. FAIR TREATMENT OF SECURED CREDITORS UNDER CHAPTER 
                   13.

       (a) Restoring the Foundation for Secured Credit.--Section 
     1325(a) of title 11, United States Code, is amended--
       (1) in paragraph (5), by striking the matter preceding 
     subparagraph (A) and inserting the following:
       ``(5) with respect to an allowed claim provided for by the 
     plan that is secured under applicable nonbankruptcy law by 
     reason of a lien on property in which the estate has an 
     interest or is subject to a setoff under section 553--''; and
       (2) by adding at the end of the subsection the following 
     flush sentence:

     ``For purposes of paragraph (5), section 506 shall not apply 
     to a claim described in that paragraph.''.
       (b) Payment of Holders of Claims Secured by Liens.--Section 
     1325(a)(5)(B)(i) of title 11, United States Code, is amended 
     to read as follows:
       ``(B)(i) the plan provides that the holder of such claim 
     retain the lien securing such claim until the debt that is 
     the subject of the claim is fully paid for, as provided under 
     the plan; and''.
       (c) Determination of Secured Status.--Section 506 of title 
     11, United States Code, is amended by adding at the end the 
     following:
       ``(e) Subsection (a) shall not apply to an allowed claim to 
     the extent attributable in whole or in part to the purchase 
     price of personal property acquired by the debtor during the 
     90-day period preceding the date of filing of the 
     petition.''.

     SEC. 303. DISCOURAGEMENT OF BAD FAITH REPEAT FILINGS.

       Section 362(c) of title 11, United States Code, is 
     amended--
       (1) by inserting ``(1)'' before ``Except as'';
       (2) by striking ``(1) the stay'' and inserting ``(A) the 
     stay'';
       (3) by striking ``(2) the stay'' and inserting ``(B) the 
     stay'';
       (4) by striking ``(A) the time'' and inserting ``(i) the 
     time'';
       (5) by striking ``(B) the time'' and inserting ``(ii) the 
     time''; and
       (6) by adding at the end the following:
       ``(2) Except as provided in subsections (d) through (f), 
     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 
     if--
       ``(A) a single or joint case is filed by or against an 
     individual debtor under chapter 7, 11, or 13; and
       ``(B) a single or joint case of that debtor (other than a 
     case refiled under a chapter other than chapter 7 after 
     dismissal under section 707(b)) was pending during the 
     preceding year but was dismissed.
       ``(3) If a party in interest so requests, the court may 
     extend the stay in a particular case with respect to 1 or 
     more creditors (subject to such conditions or limitations as 
     the court may impose) after providing notice and a hearing 
     completed before the expiration of the 30-day period 
     described in paragraph (2) only if the party in interest 
     demonstrates that the filing of the later case is in good 
     faith with respect to the creditors to be stayed.
       ``(4) A case shall be presumed to have not been filed in 
     good faith (except that such presumption may be rebutted by 
     clear and convincing evidence to the contrary)--
       ``(A) with respect to the creditors involved, if--
       ``(i) more than 1 previous case under any of chapters 7, 
     11, or 13 in which the individual was a debtor was pending 
     during the 1-year period described in paragraph (1);
       ``(ii) a previous case under any of chapters 7, 11, or 13 
     in which the individual was a debtor was dismissed within the 
     period specified in paragraph (2) after--
       ``(I) the debtor, after having received from the court a 
     request to do so, failed to file or amend the petition or 
     other documents as required by this title; or
       ``(II) the debtor, without substantial excuse, failed to 
     perform the terms of a plan that was confirmed by the court; 
     or
       ``(iii)(I) during the period commencing with the dismissal 
     of the next most previous case under chapter 7, 11, or 13 
     there has not been a substantial change in the financial or 
     personal affairs of the debtor;
       ``(II) if the case is a chapter 7 case, there is no other 
     reason to conclude that the later case will be concluded with 
     a discharge; or
       ``(III) if the case is a chapter 11 or 13 case, there is 
     not a confirmed plan that will be fully performed; and
       ``(B) with respect 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 
     that case, that action was still pending or had been resolved 
     by terminating, conditioning, or limiting the stay with 
     respect to actions of that creditor.
       ``(5)(A) If a request is made for relief from the stay 
     under subsection (a) with respect to real or personal 
     property of any kind, and the request is granted in whole or 
     in part, the court may, in addition to making any other order 
     under this subsection, order that the relief so granted shall 
     be in rem either--
       ``(i) for a definite period of not less than 1 year; or
       ``(ii) indefinitely.
       ``(B)(i) After an order is issued under subparagraph (A), 
     the stay under subsection (a) shall not apply to any property 
     subject to such an in rem order in any case of the debtor.
       ``(ii) If an in rem order issued under subparagraph (A) so 
     provides, the stay shall, in addition to being inapplicable 
     to the debtor involved, not apply with respect to an entity 
     under this title if--
       ``(I) the entity had reason to know of the order at the 
     time that the entity obtained an interest in the property 
     affected; or

[[Page S10104]]

       ``(II) the entity was notified of the commencement of the 
     proceeding for relief from the stay, and at the time of the 
     notification, no case in which the entity was a debtor was 
     pending.
       ``(6) For purposes of this section, a case is pending 
     during the period beginning with the issuance of the order 
     for relief and ending at such time as the case involved is 
     closed.''.

     SEC. 304. TIMELY FILING AND CONFIRMATION OF PLANS UNDER 
                   CHAPTER 13.

       (a) Filing of Plan.--Section 1321 of title 11, United 
     States Code, is amended to read as follows:

     ``Sec. 1321. Filing of plan

       ``The debtor shall file a plan not later than 90 days after 
     the order for relief under this chapter, except that the 
     court may extend such period if the need for an extension is 
     attributable to circumstances for which the debtor should not 
     justly be held accountable.''.
       (b) Confirmation of Hearing.--Section 1324 of title 11, 
     United States Code, is amended by adding at the end the 
     following: ``That hearing shall be held not later than 45 
     days after the filing of the plan, unless the court, after 
     providing notice and a hearing, orders otherwise.''.

     SEC. 305. APPLICATION OF THE CODEBTOR STAY ONLY WHEN THE STAY 
                   PROTECTS THE DEBTOR.

       Section 1301(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) Notwithstanding subsection (c) and except as 
     provided in subparagraph (B), in any case in which the debtor 
     did not receive the consideration for the claim held by a 
     creditor, the stay provided by subsection (a) shall apply to 
     that creditor for a period not to exceed 30 days beginning on 
     the date of the order for relief, to the extent the creditor 
     proceeds against--
       ``(i) the individual that received that consideration; or
       ``(ii) property not in the possession of the debtor that 
     secures that claim.
       ``(B) Notwithstanding subparagraph (A), the stay provided 
     by subsection (a) shall apply in any case in which the debtor 
     is primarily obligated to pay the creditor in whole or in 
     part with respect to a claim described in subparagraph (A) 
     under a legally binding separation or property settlement 
     agreement or divorce or dissolution decree with respect to--
       ``(i) an individual described in subparagraph (A)(i); or
       ``(ii) property described in subparagraph (A)(ii).
       ``(3) Notwithstanding subsection (c), the stay provided by 
     subsection (a) shall terminate as of the date of confirmation 
     of the plan, in any case in which the plan of the debtor 
     provides that the debtor's interest in personal property 
     subject to a lease with respect to which the debtor is the 
     lessee will be surrendered or abandoned or no payments will 
     be made under the plan on account of the debtor's obligations 
     under the lease.''.

     SEC. 306. IMPROVED BANKRUPTCY STATISTICS.

       (a) Amendment.--Chapter 6 of part I of title 28, United 
     States Code, is amended by adding at the end the following:

     ``Sec. 159. Bankruptcy statistics

       ``(a) The clerk of each district shall compile statistics 
     regarding individual debtors with primarily consumer debts 
     seeking relief under chapters 7, 11, and 13 of title 11. 
     Those statistics shall be in a form prescribed by the 
     Director of the Administrative Office of the United States 
     Courts (referred to in this section as the `Office').
       ``(b) The Director shall--
       ``(1) compile the statistics referred to in subsection (a);
       ``(2) make the statistics available to the public; and
       ``(3) not later than October 31, 1998, 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 those 
     debtors;
       ``(B) the current total monthly income, projected monthly 
     net income, and average income and average expenses of those 
     debtors as reported on the schedules and statements that each 
     such debtor files under sections 111, 521, and 1322 of title 
     11;
       ``(C) the aggregate amount of debt discharged in the 
     reporting period, determined as the difference between the 
     total amount of debt and obligations of a debtor reported on 
     the schedules and the amount of such debt reported in 
     categories which are predominantly nondischargeable;
       ``(D) the average period of time between the filing of the 
     petition and the closing of the case;
       ``(E) for the reporting period--
       ``(i) the number of cases in which a reaffirmation was 
     filed; and
       ``(ii)(I) the total number of reaffirmations filed;
       ``(II) of those cases in which a reaffirmation was filed, 
     the number in which the debtor was not represented by an 
     attorney; and
       ``(III) of those cases, the number of cases in which the 
     reaffirmation was approved by the court;
       ``(F) with respect to cases filed under chapter 13 of title 
     11, for the reporting period--
       ``(i)(I) the number of cases in which a final order was 
     entered determining the value of property securing a claim in 
     an amount less than the amount of the claim; and
       ``(II) the number of final orders determining the value of 
     property securing a claim issued;
       ``(ii) the number of cases dismissed for failure to make 
     payments under the plan; and
       ``(iii) the number of cases in which the debtor filed 
     another case within the 6 years previous to the filing; and
       ``(G) the extent of creditor misconduct and any amount of 
     punitive damages awarded by the court for creditor 
     misconduct.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of 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. 307. AUDIT PROCEDURES.

       (a) Amendments.--Section 586 of title 28, United States 
     Code, is amended--
       (1) in subsection (a), as amended by section 301 of this 
     Act, by striking paragraph (6) and inserting the following:
       ``(6) make such reports as the Attorney General directs, 
     including the results of audits performed under subsection 
     (f); and''; and
       (2) by adding at the end the following:
       ``(f)(1)(A) The Attorney General shall establish procedures 
     for the auditing of the accuracy and completeness of 
     petitions, schedules, and other information which the debtor 
     is required to provide under sections 521 and 1322 of title 
     11, and, if applicable, section 111 of title 11, in 
     individual cases filed under chapter 7 or 13 of such title.
       ``(B) The audits described in subparagraph (A) shall be 
     made in accordance with generally accepted auditing standards 
     and performed by independent certified public accountants or 
     independent licensed public accountants. Those procedures 
     shall--
       ``(i) establish a method of selecting appropriate qualified 
     persons to contract with the United States trustee to perform 
     those audits;
       ``(ii) establish a method of randomly selecting cases to be 
     audited according to generally accepted auditing standards, 
     except that not less than 1 out of every 500 cases in each 
     Federal judicial district shall be selected for audit;
       ``(iii) require audits for schedules of income and expenses 
     which reflect greater than average variances from the 
     statistical norm of the district in which the schedules were 
     filed; and
       ``(iv) establish procedures for--
       ``(I) reporting the results of those audits and any 
     material misstatement of income, expenditures, or assets of a 
     debtor to the Attorney General, the United States Attorney 
     and the court, as appropriate;
       ``(II) 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; 
     and
       ``(III) fully funding those audits, including procedures 
     requiring each debtor with sufficient available income or 
     assets to contribute to the payment for those audits, as an 
     administrative expense or otherwise.
       ``(2) The United States trustee for each district is 
     authorized to contract with auditors to perform audits in 
     cases designated by the United States trustee according to 
     the procedures established under paragraph (1).
       ``(3) According to procedures established under paragraph 
     (1), upon request of a duly appointed auditor, the debtor 
     shall cause the accounts, papers, documents, financial 
     records, files and all other papers, things, or property 
     belonging to the debtor as the auditor requests and that are 
     reasonably necessary to facilitate the audit to be made 
     available for inspection and copying.
       ``(4)(A) The report of each audit conducted under this 
     subsection shall be filed with the court, the Attorney 
     General, and the United States Attorney, as required under 
     procedures established by the Attorney General under 
     paragraph (1).
       ``(B) If a material misstatement of income or expenditures 
     or of assets is reported under subparagraph (A), a statement 
     specifying that misstatement shall be filed with the court 
     and the United States trustee shall--
       ``(i) give notice thereof to the creditors in the case; and
       ``(ii) in an appropriate case, in the opinion of the United 
     States trustee, that requires investigation with respect to 
     possible criminal violations, the United States Attorney for 
     the district.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect 18 months after the date of enactment of 
     this Act.

     SEC. 308. CREDITOR REPRESENTATION AT FIRST MEETING OF 
                   CREDITORS.

       Section 341(c) of title 11, United States Code, is amended 
     by inserting after the first sentence the following: 
     ``Notwithstanding any local court rule, provision of a State 
     constitution, any other Federal or State law that is not a 
     bankruptcy law, or other requirement that representation at 
     the meeting of creditors under subsection (a) be by an 
     attorney, a creditor holding a consumer debt or any 
     representative of the creditor (which may include an entity 
     or an employee of an entity and may be a representative for 
     more than one 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.''.

[[Page S10105]]

     SEC. 309. FAIR NOTICE FOR CREDITORS IN CHAPTER 7 AND 13 
                   CASES.

       Section 342 of title 11, United States Code, is amended--
       (1) in subsection (c), by striking ``, but the failure of 
     such notice to contain such information shall not invalidate 
     the legal effect of such notice''; and
       (2) by adding at the end the following:
       ``(d)(1) If the credit agreement between the debtor and the 
     creditor or the last communication before the filing of the 
     petition in a voluntary case from the creditor to a debtor 
     who is an individual states an account number of the debtor 
     that is the current account number of the debtor with respect 
     to any debt held by the creditor against the debtor, the 
     debtor shall include that account number in any notice to the 
     creditor required to be given under this title.
       ``(2) If the creditor has specified to the debtor, in the 
     last communication before the filing of the petition, an 
     address at which the creditor wishes to receive 
     correspondence regarding the debtor's account, any notice to 
     the creditor required to be given by the debtor under this 
     title shall be given at such address.
       ``(3) For purposes of this section, the term `notice' shall 
     include--
       ``(A) any correspondence from the debtor to the creditor 
     after the commencement of the case;
       ``(B) any statement of the debtor's intention under section 
     521(a)(2);
       ``(C) notice of the commencement of any proceeding in the 
     case to which the creditor is a party; and
       ``(D) any notice of a hearing under section 1324.
       ``(e)(1) At any time, a creditor, in a case of an 
     individual under chapter 7 or 13, may file with the court and 
     serve on the debtor a notice of the address to be used to 
     notify the creditor in that case.
       ``(2) If the court or the debtor is required to give the 
     creditor notice, not later than 5 days after receipt of the 
     notice under paragraph (1), that notice shall be given at 
     that address.
       ``(f) An entity may file with the court a notice stating 
     its address for notice in cases under chapter 7 or 13. After 
     the date that is 30 days following the filing of that notice, 
     any notice in any case filed under chapter 7 or 13 given by 
     the court shall be to that address unless specific notice is 
     given under subsection (e) with respect to a particular case.
       ``(g)(1) Notice given to a creditor other than as provided 
     in this section shall not be effective notice until that 
     notice has been brought to the attention of the creditor.
       ``(2) If the creditor has designated a person or department 
     to be responsible for receiving notices concerning bankruptcy 
     cases and has established reasonable procedures so that 
     bankruptcy notices received by the creditor will be delivered 
     to that department or person, notice shall not be brought to 
     the attention of the creditor until that notice is received 
     by that person or department.''.

     SEC. 310. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13.

       Section 348(f)(1) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B)--
       (A) by striking ``in the converted case, with allowed 
     secured claims'' and inserting ``only in a case converted to 
     chapter 11 or 12 but not in a case converted to chapter 7, 
     with allowed secured claims in cases under chapters 11 and 
     12''; and
       (B) by striking the period and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) with respect to cases converted from chapter 13, 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 that claim determined under applicable 
     nonbankruptcy law has been paid in full as of the date of 
     conversion, notwithstanding any valuation or determination of 
     the amount of an allowed secured claim made for the purposes 
     of the chapter 13 proceeding.''.

     SEC. 311. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

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

     SEC. 312. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR 
                   PROVIDE REQUIRED INFORMATION.

       Section 707 of title 11, United States Code, as amended by 
     section 102 of this Act, is amended by adding at the end the 
     following:
       ``(c)(1) Notwithstanding subsection (a), and subject to 
     paragraph (2), if an individual debtor in a voluntary case 
     under chapter 7 or 13 fails to file all of the information 
     required under section 521(a)(1) within 45 days after the 
     filing of the petition commencing the case, the case shall be 
     automatically dismissed effective on the 46th day after the 
     filing of the petition.
       ``(2) With respect to a case described in paragraph (1), 
     any party in interest may request the court to enter an order 
     dismissing the case. The court shall, if so requested, enter 
     an order of dismissal not later than 5 days after that 
     request.
       ``(3) Upon request of the debtor made within 45 days after 
     the filing of the petition commencing a case described in 
     paragraph (1), the court may allow the debtor an additional 
     period of not to exceed 20 days to file the information 
     required under section 521(a)(1) if the court finds 
     justification for extending the period for the filing.''.

     SEC. 313. ADEQUATE TIME FOR PREPARATION FOR A HEARING ON 
                   CONFIRMATION OF THE PLAN.

       Section 1324 of title 11, United States Code, as amended by 
     section 304 of this Act, 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) If not later than 5 days after receiving notice of a 
     hearing on confirmation of the plan, a creditor objects to 
     the confirmation of the plan, the hearing on confirmation of 
     the plan may be held no earlier than 20 days after the first 
     meeting of creditors under section 341(a).''.

     SEC. 314. DISCHARGE UNDER CHAPTER 13.

       Section 1328(a) of title 11, United States Code, is amended 
     by striking paragraphs (1) through (3) and inserting the 
     following:
       ``(1) provided for under section 1322(b)(5);
       ``(2) of the kind specified in paragraph (2), (4), (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. NONDISCHARGEABLE DEBTS.

       Section 523(a) of title 11, United States Code, is amended 
     by inserting after paragraph (14) the following:
       ``(14A) incurred to pay a debt that is nondischargeable by 
     reason of section 727, 1141, 1228 (a) or (b), or 1328(b), or 
     any other provision of this subsection, except for any debt 
     incurred to pay such a nondischargeable debt in any case in 
     which--
       ``(A)(i) the debtor who paid the nondischargeable debt is a 
     single parent who has 1 or more dependent children at the 
     time of the order for relief; or
       ``(ii) there is an allowed claim for alimony to, 
     maintenance for, or support of a spouse, former spouse, or 
     child of the debtor payable under a judicial or 
     administrative order to that spouse or child (but not to any 
     other person) that was unpaid by the debtor as of the date of 
     the petition; and
       ``(B) the creditor is unable to demonstrate that the debtor 
     intentionally incurred the debt to pay the nondischargeable 
     debt;''.

     SEC. 316. CREDIT EXTENSIONS ON THE EVE OF BANKRUPTCY PRESUMED 
                   NONDISCHARGEABLE.

       Section 523(a)(2) of title 11, United States Code, as 
     amended by section 202 of this Act, is amended--
       (1) in subparagraph (A), by striking the semicolon at the 
     end and inserting the following: ``(and, for purposes of this 
     subparagraph, consumer debts owed in an aggregate amount 
     greater than or equal to $400 incurred for goods or services 
     not reasonably necessary for the maintenance or support of 
     the debtor or a dependent child of the debtor to a single 
     creditor that are incurred during the 90-day period preceding 
     the date of the order for relief shall be presumed to be 
     nondischargeable under this subparagraph); or'';
       (2) in subparagraph (B), by striking ``or'' at the end; and
       (3) by striking subparagraph (C).

     SEC. 317. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

       Section 101 of title 11, United States Code, is amended by 
     inserting after paragraph (27) the following:
       ``(27A) `household goods' has the meaning given that term 
     in section 444.1(i) of title 16, of the Code of Federal 
     Regulations (as in effect on the effective date of this 
     paragraph), which is part of the regulations issued by the 
     Federal Trade Commission that are commonly known as the 
     `Trade Regulation Rule on Credit Practices', except that the 
     term shall also include any tangible personal property 
     reasonably necessary for the maintenance or support of a 
     dependent child;''.

     SEC. 318. RELIEF FROM STAY WHEN THE DEBTOR DOES NOT COMPLETE 
                   INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.

       (a) Automatic Stay.--Section 362 of title 11, United States 
     Code, as amended by section 303, is amended--
       (1) in subsection (c)(1), in the matter preceding 
     subparagraph (A), by striking ``(e) and (f)'' and inserting 
     ``(e), (f), and (h)'';
       (2) by redesignating subsection (h) as subsection (i); and
       (3) by inserting after subsection (g) the following:
       ``(h) In an individual case under chapter 7, 11, or 13 the 
     stay provided by subsection (a) is terminated with respect to 
     property of the estate securing in whole or in part a claim 
     that is in an amount greater than $3,000, or subject to an 
     unexpired lease with a remaining term of at least 1 year (in 
     any case in which the debtor owes at least $3,000 for a 1-
     year period), if within 30 days after the expiration of the 
     applicable period under section 521(a)(2)--
       ``(1)(A) the debtor fails to timely file a statement of 
     intention to surrender or retain the property; or
       ``(B) if the debtor indicates in the filing that the debtor 
     will retain the property, the debtor fails to meet an 
     applicable requirement to--
       ``(i) either--

[[Page S10106]]

       ``(I) redeem the property pursuant to section 722; or
       ``(II) reaffirm the debt the property secures pursuant to 
     section 524(c); or
       ``(ii) assume the unexpired lease pursuant to section 
     365(d) if the trustee does not do so; or
       ``(2) the debtor fails to timely take the action specified 
     in a statement of intention referred to in paragraph (1)(A) 
     (as amended, if that statement is amended before expiration 
     of the period for taking action), unless--
       ``(A) the statement of intention specifies reaffirmation; 
     and
       ``(B) the creditor refuses to reaffirm the debt on the 
     original contract terms for the debt.''.
       (b) Debtor's Duties.--Section 521(a)(2) of title 11, United 
     States Code, as redesignated by section 301(b) of this Act, 
     is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``consumer'';
       (2) in subparagraph (B)--
       (A) by striking ``forty-five days after the filing of a 
     notice of intent under this section'' and inserting ``30 days 
     after the first meeting of creditors under section 341(a)''; 
     and
       (B) by striking ``forty-five-day period'' and inserting 
     ``30-day period''; and
       (3) in subparagraph (C), by inserting ``, except as 
     provided in section 362(h)'' before the semicolon.

     SEC. 319. ADEQUATE PROTECTION OF LESSORS AND PURCHASE MONEY 
                   SECURED CREDITORS.

       (a) In General.--Chapter 13 of title 11, United States 
     Code, is amended by adding after section 1307 the following:

     ``Sec. 1307A. Adequate protection in chapter 13 cases

       ``(a)(1)(A) On or before the date that is 30 days after the 
     filing of a case under this chapter, the debtor shall make 
     cash payments in an amount determined under paragraph (2)(A), 
     to--
       ``(i) any lessor of personal property; and
       ``(ii) any creditor holding a claim secured by personal 
     property to the extent that the claim is attributable to the 
     purchase of that property by the debtor.
       ``(B) The debtor or the plan shall continue making the 
     adequate protection payments until the earlier of the date on 
     which--
       ``(i) the creditor begins to receive actual payments under 
     the plan; or
       ``(ii) the debtor relinquishes possession of the property 
     referred to in subparagraph (A) to--
       ``(I) the lessor or creditor; or
       ``(II) any third party acting under claim of right, as 
     applicable.
       ``(2) The payments referred to in paragraph (1)(A) shall be 
     determined by the court.
       ``(b)(1) Subject to the limitations under paragraph (2), 
     the court may, after notice and hearing, change the amount 
     and timing of the dates of payment of payments made under 
     subsection (a).
       ``(2)(A) The payments referred to in paragraph (1) shall be 
     payable not less frequently than monthly.
       ``(B) The amount of a payment referred to in paragraph (1) 
     shall not be less than the reasonable depreciation of the 
     personal property described in subsection (a)(1), determined 
     on a month-to-month basis.
       ``(c) Notwithstanding section 1326(b), the payments 
     referred to in subsection (a)(1)(A) shall be continued in 
     addition to plan payments under a confirmed plan until actual 
     payments to the creditor begin under that plan, if the 
     confirmed plan provides--
       ``(1) for payments to a creditor or lessor described in 
     subsection (a)(1); and
       ``(2) for the deferral of payments to such creditor or 
     lessor under the plan until the payment of amounts described 
     in section 1326(b).
       ``(d) Notwithstanding sections 362, 542, and 543, a lessor 
     or creditor described in subsection (a) may retain possession 
     of property described in that subsection that was obtained in 
     accordance with applicable law before the date of filing of 
     the petition until the first payment under subsection 
     (a)(1)(A) is received by the lessor or creditor.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 13 of title 11, United States Code, is 
     amended by inserting after the item relating to section 1307 
     the following:

``1307A. Adequate protection in chapter 13 cases.''.

     SEC. 320. LIMITATION.

       Section 522 of title 11, United States Code, is amended--
       (1) in subsection (b)(2)(A), by inserting ``subject to 
     subsection (n),'' before ``any property''; and
       (2) by adding at the end the following new subsection:
       ``(n)(1) Except as provided in paragraph (2), as a result 
     of electing under subsection (b)(2)(A) to exempt property 
     under State or local law, a debtor may not exempt any amount 
     of interest that exceeds in the aggregate $100,000 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; or
       ``(C) a burial plot for the debtor or a dependent of the 
     debtor.
       ``(2) The limitation under paragraph (1) shall not apply to 
     an exemption claimed under subsection (b)(2)(A) by a family 
     farmer for the principal residence of that farmer.''.

     SEC. 321. MISCELLANEOUS IMPROVEMENTS.

       (a) Who May Be a Debtor.--Section 109 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(h) Notwithstanding any other provision of this section, 
     an individual may not be a debtor under this title unless 
     that individual has, during the 90-day period preceding the 
     date of filing of the petition of that individual, made a 
     good-faith attempt to create a debt repayment plan outside 
     the judicial system for bankruptcy law (commonly referred to 
     as the `bankruptcy system'), through a credit counseling 
     program (offered through credit counseling services described 
     in section 111(a)) that has been approved by--
       ``(1) the United States trustee; or
       ``(2) the bankruptcy administrator for the district in 
     which the petition is filed.''.
       (b) Chapter 7 Discharge.--Section 727(a) of title 11, 
     United States Code, is amended--
       (1) in paragraph (9), by striking ``or'' at the end;
       (2) in paragraph (10), by striking the period and inserting 
     ``; or''; and
       (3) by adding at the end the following:
       ``(11) after the filing of the petition, the debtor failed 
     to complete an instructional course concerning personal 
     financial management described in section 111 that was 
     administered or approved by--
       ``(A) the United States trustee; or
       ``(B) the bankruptcy administrator for the district in 
     which the petition is filed.''.
       (c) Chapter 13 Discharge.--Section 1328 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(f) 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 that 
     was administered or approved by--
       ``(1) the United States trustee; or
       ``(2) the bankruptcy administrator for the district in 
     which the petition is filed.''.
       (d) Debtor's Duties.--Section 521 of title 11, United 
     States Code, as amended by sections 301(b) and 318(b) of this 
     Act, is amended by adding at the end the following:
       ``(e) In addition to the requirements under subsection (a), 
     an individual debtor shall file with the court--
       ``(1) a certificate from the credit counseling service that 
     provided the debtor services under section 109(h) or other 
     substantial evidence of a good-faith attempt to create a debt 
     repayment plan outside the bankruptcy system in the manner 
     prescribed in section 109(h); and
       ``(2) a copy of the debt repayment plan developed under 
     section 109(h) through the credit counseling service referred 
     to in paragraph (1).''.
       (e) Exceptions to Discharge.--Section 523(d) of title 11, 
     United States Code, as amended by section 202 of this Act, is 
     amended by striking paragraph (3)(A)(i) and inserting the 
     following:
       ``(i) before the filing of the petition, the debtor made a 
     good faith attempt pursuant to section 109(h) to negotiate a 
     reasonable alternative repayment schedule (including making 
     an offer of a reasonable alternative repayment schedule); 
     and''.
       (f) General Provisions.--
       (1) In general.--Chapter 1 of title 11, United States Code, 
     is amended by adding at the end the following:

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

       ``(a) The clerk of each district shall maintain a list of 
     credit counseling services that provide 1 or more programs 
     described in section 109(h) and that have been approved by--
       ``(1) the United States trustee; or
       ``(2) the bankruptcy administrator for the district.
       ``(b) The United States trustee or each bankruptcy 
     administrator referred to in subsection (a)(1) shall--
       ``(1) make available to debtors who are individuals an 
     instructional course concerning personal financial 
     management, under the direction of the bankruptcy court; and
       ``(2) maintain a list of instructional courses concerning 
     personal financial management that are operated by a private 
     entity and that have been approved by the United States 
     trustee or that bankruptcy administrator.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 1 of title 11, United States Code, is 
     amended by adding at the end the following:

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

       (g) Definitions.--Section 101 of title 11, United States 
     Code, as amended by section 317 of this Act, is amended--
       (1) by inserting after paragraph (13) the following:
       ``(13A) `debtor's principal residence'--
       ``(A) means a residential structure, including incidental 
     property, without regard to whether that structure is 
     attached to real property; and
       ``(B) includes an individual condominium or co-operative 
     unit;''; and
       (2) by inserting after paragraph (27A), as added by section 
     318 of this Act, the following:
       ``(27B) `incidental property' means, with respect to a 
     debtor's principal residence--
       ``(A) property commonly conveyed with a principal residence 
     in the area where the real estate is located;
       ``(B) all easements, rights, appurtenances, fixtures, 
     rents, royalties, mineral rights, oil or gas rights or 
     profits, water rights, escrow funds, or insurance proceeds; 
     and
       ``(C) all replacements or additions;''.

     SEC. 322. BANKRUPTCY JUDGESHIPS.

       (a) Short Title.--This section may be cited as the 
     ``Bankruptcy Judgeship Act of 1998''.
       (b) Temporary Judgeships.--
       (1) Appointments.--The following judgeship positions shall 
     be filled in the manner prescribed in section 152(a)(1) of 
     title 28, United States Code, for the appointment of 
     bankruptcy judges provided for in section 152(a)(2) of such 
     title:

[[Page S10107]]

       (A) One additional bankruptcy judgeship for the eastern 
     district of California.
       (B) Four additional bankruptcy judgeships for the central 
     district of California.
       (C) One additional bankruptcy judgeship for the southern 
     district of Florida.
       (D) Two additional bankruptcy judgeships for the district 
     of Maryland.
       (E) One additional bankruptcy judgeship for the eastern 
     district of Michigan.
       (F) One additional bankruptcy judgeship for the southern 
     district of Mississippi.
       (G) One additional bankruptcy judgeship for the district of 
     New Jersey.
       (H) One additional bankruptcy judgeship for the eastern 
     district of New York.
       (I) One additional bankruptcy judgeship for the northern 
     district of New York.
       (J) One additional bankruptcy judgeship for the southern 
     district of New York.
       (K) One additional bankruptcy judgeship for the eastern 
     district of Pennsylvania.
       (L) One additional bankruptcy judgeship for the middle 
     district of Pennsylvania.
       (M) One additional bankruptcy judgeship for the western 
     district of Tennessee.
       (N) One additional bankruptcy judgeship for the eastern 
     district of Virginia.
       (2) Vacancies.--The first vacancy occurring in the office 
     of a bankruptcy judge in each of the judicial districts set 
     forth in paragraph (1) that--
       (A) results from the death, retirement, resignation, or 
     removal of a bankruptcy judge; and
       (B) occurs 5 years or more after the appointment date of a 
     bankruptcy judge appointed under paragraph (1);
     shall not be filled.
       (c) Extensions.--
       (1) In general.--The temporary bankruptcy judgeship 
     positions authorized for the northern district of Alabama, 
     the district of Delaware, the district of Puerto Rico, the 
     district of South Carolina, and the eastern district of 
     Tennessee under section 3(a) (1), (3), (7), (8), and (9) of 
     the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note) are 
     extended until the first vacancy occurring in the office of a 
     bankruptcy judge in the applicable district resulting from 
     the death, retirement, resignation, or removal of a 
     bankruptcy judge and occurring--
       (A) 8 years or more after November 8, 1993, with respect to 
     the northern district of Alabama;
       (B) 10 years or more after October 28, 1993, with respect 
     to the district of Delaware;
       (C) 8 years or more after August 29, 1994, with respect to 
     the district of Puerto Rico;
       (D) 8 years or more after June 27, 1994, with respect to 
     the district of South Carolina; and
       (E) 8 years or more after November 23, 1993, with respect 
     to the eastern district of Tennessee.
       (2) Applicability of other provisions.--All other 
     provisions of section 3 of the Bankruptcy Judgeship Act of 
     1992 remain applicable to such temporary judgeship position.
       (d) Technical Amendment.--The first sentence of section 
     152(a)(1) of title 28, United States Code, is amended to read 
     as follows: ``Each bankruptcy judge to be appointed for a 
     judicial district as provided in paragraph (2) shall be 
     appointed by the United States court of appeals for the 
     circuit in which such district is located.''.
       (e) Travel Expenses of Bankruptcy Judges.--Section 156 of 
     title 28, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(g)(1) In this subsection, the term `travel expenses'--
       ``(A) means the expenses incurred by a bankruptcy judge for 
     travel that is not directly related to any case assigned to 
     such bankruptcy judge; and
       ``(B) shall not include the travel expenses of a bankruptcy 
     judge if--
       ``(i) the payment for the travel expenses is paid by such 
     bankruptcy judge from the personal funds of such bankruptcy 
     judge; and
       ``(ii) such bankruptcy judge does not receive funds 
     (including reimbursement) from the United States or any other 
     person or entity for the payment of such travel expenses.
       ``(2) Each bankruptcy judge shall annually submit the 
     information required under paragraph (3) to the chief 
     bankruptcy judge for the district in which the bankruptcy 
     judge is assigned.
       ``(3)(A) Each chief bankruptcy judge shall submit an annual 
     report to the Director of the Administrative Office of the 
     United States Courts on the travel expenses of each 
     bankruptcy judge assigned to the applicable district 
     (including the travel expenses of the chief bankruptcy judge 
     of such district).
       ``(B) The annual report under this paragraph shall 
     include--
       ``(i) the travel expenses of each bankruptcy judge, with 
     the name of the bankruptcy judge to whom the travel expenses 
     apply;
       ``(ii) a description of the subject matter and purpose of 
     the travel relating to each travel expense identified under 
     clause (i), with the name of the bankruptcy judge to whom the 
     travel applies; and
       ``(iii) the number of days of each travel described under 
     clause (ii), with the name of the bankruptcy judge to whom 
     the travel applies.
       ``(4)(A) The Director of the Administrative Office of the 
     United States Courts shall--
       ``(i) consolidate the reports submitted under paragraph (3) 
     into a single report; and
       ``(ii) annually submit such consolidated report to 
     Congress.
       ``(B) The consolidated report submitted under this 
     paragraph shall include the specific information required 
     under paragraph (3)(B), including the name of each bankruptcy 
     judge with respect to clauses (i), (ii), and (iii) of 
     paragraph (3)(B).''.

     SEC. 323. PREFERRED PAYMENT OF CHILD SUPPORT IN CHAPTER 7 
                   PROCEEDINGS.

       Section 507(a) of title 11, United States Code, is amended 
     in the matter preceding paragraph (1), by inserting ``, 
     except that, notwithstanding any other provision of this 
     title, any expense or claim entitled to priority under 
     paragraph (7) shall have first priority over any other 
     expense or claim that has priority under any other provision 
     of this subsection'' before the colon.

     SEC. 324. PREFERRED PAYMENT OF CHILD SUPPORT IN CHAPTER 13 
                   PROCEEDINGS.

       Section 1322(b)(1) of title 11, United States Code, is 
     amended by striking the semicolon at the end and inserting 
     the following: ``and provide for the payment of any claim 
     entitled to priority under section 507(a)(7) before the 
     payment of any other claim entitled to priority under section 
     507(a), notwithstanding the priorities established under 
     section 507(a).''.

     SEC. 325. PAYMENT OF CHILD SUPPORT REQUIRED TO OBTAIN A 
                   DISCHARGE IN CHAPTER 13 PROCEEDINGS.

       Title 11, United States Code, is amended--
       (1) in section 1325(a)--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(7) if the debtor is required by a judicial or 
     administrative order to pay alimony to, maintenance for, or 
     support of a spouse, former spouse, or child of the debtor, 
     the debtor has paid all amounts payable under that order for 
     alimony, maintenance, or support that are due after the date 
     on which the petition is filed.''; and
       (2) in section 1328(a), as amended by section 314 of this 
     Act, in the matter preceding paragraph (1), by inserting ``, 
     and with respect to a debtor who is required by a judicial or 
     administrative order to pay alimony to, maintenance for, or 
     support of a spouse, former spouse, or child of the debtor, 
     only after the debtor certifies as of the later of the date 
     of that completion or the date of certification that all 
     amounts payable under that order for alimony, maintenance, or 
     support that are due before the date of that certification 
     have been paid in accordance with the plan if applicable, or 
     if the underlying debt is not treated by the plan, paid in 
     full'' after ``completion by the debtor of all payments under 
     the plan''.

     SEC. 326. CHILD SUPPORT AND ALIMONY COLLECTION.

       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 at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(19) under subsection (a) with respect to the withholding 
     of income pursuant to an order as specified in section 466(b) 
     of the Social Security Act (42 U.S.C. 666(b)); or
       ``(20) under subsection (a) with respect to the 
     withholding, suspension, or restriction of drivers' licenses, 
     professional and occupational licenses, and recreational 
     licenses pursuant to State law, as specified in section 
     466(a)(15) of the Social Security Act (42 U.S.C. 666(a)(15)) 
     or with respect to the reporting of overdue support owed by 
     an absent parent to any consumer reporting agency as 
     specified in section 466(a)(7) of the Social Security Act (42 
     U.S.C. 666(a)(7)).''.

     SEC. 327. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
                   MAINTENANCE, AND SUPPORT.

       Section 523 of title 11, United States Code, as amended by 
     section 202 of this Act, is amended--
       (1) in subsection (a), by striking paragraph (5) and 
     inserting the following:
       ``(5) to a spouse, former spouse, or child of the debtor--
       ``(A) for actual alimony to, maintenance for, or support of 
     that spouse or child;
       ``(B) that was incurred by the debtor in the course of a 
     divorce or separation or in connection with a separation 
     agreement, property settlement agreement, divorce decree, 
     other order of a court of record, or determination made in 
     accordance with State or territorial law by a governmental 
     unit; or
       ``(C) that is described in subparagraph (A) or (B) and that 
     is assigned pursuant to section 408(a)(3) of the Social 
     Security Act (42 U.S.C. 608(a)(3)), or to the Federal 
     Government, a State, or any political subdivision of a State,

     but not to the extent that the debt (other than a debt 
     described in subparagraph (C)) is assigned to another entity, 
     voluntarily, by operation of law, or otherwise;''; and
       (2) in subsection (c), by striking ``(6), or (15)'' and 
     inserting ``or (6)''.

     SEC. 328. ENFORCEMENT OF CHILD AND SPOUSAL SUPPORT.

       Section 522(c)(1) of title 11, United States Code, is 
     amended by inserting ``, except that, notwithstanding any 
     other Federal law or State law relating to exempted property, 
     such exempt property shall be liable for debts of a kind 
     specified in paragraph (1) or (5) of section 523(a)'' before 
     the semicolon at the end of the paragraph.

     SEC. 329. DEPENDENT CHILD DEFINED.

       Section 101 of title 11, United States Code, is amended by 
     inserting after paragraph (14) the following:
       ``(14A) `dependent child' means, with respect to an 
     individual, a child who has not attained the age of 18 and 
     who is a dependent of that individual, within the meaning of 
     section 152 of the Internal Revenue Code;''.
                    TITLE IV--TECHNICAL CORRECTIONS

     SEC. 401. DEFINITIONS.

       Section 101 of title 11, United States Code, as amended by 
     section 317, is amended--
       (1) by striking ``In this title--'' and inserting ``In this 
     title:'';
       (2) in each paragraph, by inserting ``The term'' after the 
     paragraph designation;

[[Page S10108]]

       (3) in paragraph (35)(B), by striking ``paragraphs (21B) 
     and (33)(A)'' and inserting ``paragraphs (23) and (35)'';
       (4) in each of paragraphs (35A) and (38), by striking ``; 
     and'' at the end and inserting a period;
       (5) in paragraph (51B)--
       (A) by inserting ``who is not a family farmer'' after 
     ``debtor'' the first place it appears; and
       (B) by striking ``thereto having aggregate'' and all that 
     follows through the end of the paragraph;
       (6) by amending paragraph (54) to read as follows:
       ``(54) The term `transfer' means--
       ``(A) the creation of a lien;
       ``(B) the retention of title as a security interest;
       ``(C) the foreclosure of a debtor's equity of redemption; 
     or
       ``(D) each mode, direct or indirect, absolute or 
     conditional, voluntary or involuntary, of disposing of or 
     parting with--
       ``(i) property; or
       ``(ii) an interest in property;'';
       (7) in each of paragraphs (1) through (35), in each of 
     paragraphs (36) and (37), and in each of paragraphs (40) 
     through (56A) (including paragraph (54), as amended by 
     paragraph (6) of this section), by striking the semicolon at 
     the end and inserting a period; and
       (8) by redesignating paragraphs (4) through (56A) in 
     entirely numerical sequence, so as to result in numerical 
     paragraph designations of (4) through (72), respectively.

     SEC. 402. ADJUSTMENT OF DOLLAR AMOUNTS.

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

     SEC. 403. 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. 404. WHO MAY BE A DEBTOR.

       Section 109(b)(2) of title 11, United States Code, is 
     amended by striking ``subsection (c) or (d) of''.

     SEC. 405. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY 
                   PREPARE BANKRUPTCY PETITIONS.

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

     SEC. 406. 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. 407. SPECIAL TAX PROVISIONS.

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

     SEC. 408. 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. 409. AUTOMATIC STAY.

       Section 362(b) of title 11, United States Code, as amended 
     by section 326 of this Act, is amended--
       (1) in paragraph (19), by striking ``or'' at the end;
       (2) in paragraph (20), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(21) under subsection (a) of this section of any transfer 
     that is not avoidable under section 544 and that is not 
     avoidable under section 549;
       ``(22) under subsection (a)(3) of this section, of the 
     continuation of any eviction, unlawful detainer action, or 
     similar proceeding by a lessor against a debtor involving 
     residential real property in which the debtor resides as a 
     tenant under a rental agreement; or
       ``(23) under subsection (a)(3) of this section, of the 
     commencement of any eviction, unlawful detainer action, or 
     similar proceeding by a lessor against a debtor involving 
     residential real property in which the debtor resides as a 
     tenant under a rental agreement that has terminated.''.

     SEC. 410. AMENDMENT TO TABLE OF SECTIONS.

       The table of sections for chapter 5 of title 11, United 
     States Code, is amended by striking the item relating to 
     section 556 and inserting the following:

``556. Contractual right to liquidate a commodities contract or forward 
              contract.''.

     SEC. 411. 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. 412. PRIORITIES.

       Section 507(a) of title 11, United States Code, as amended 
     by section 323 of this Act, is amended--
       (1) in paragraph (3)(B), by striking the semicolon at the 
     end and inserting a period; and
       (2) in paragraph (7), by inserting ``unsecured'' after 
     ``allowed''.

     SEC. 413. EXEMPTIONS.

       Section 522 of title 11, United States Code, as amended by 
     section 320 of this Act, is amended--
       (1) in subsection (f)(1)(A)(ii)(II)--
       (A) by striking ``includes a liability designated as'' and 
     inserting ``is for a liability that is designated as, and is 
     actually in the nature of,''; and
       (B) by striking ``, unless'' and all that follows through 
     ``support''; and
       (2) in subsection (g)(2), by striking ``subsection (f)(2)'' 
     and inserting ``subsection (f)(1)(B)''.

     SEC. 414. EXCEPTIONS TO DISCHARGE.

       Section 523 of title 11, United States Code, is amended--
       (1) in subsection (a)(3), by striking ``or (6)'' each place 
     it appears and inserting ``(6), or (15)'';
       (2) as amended by section 304(e) of Public Law 103-394 (108 
     Stat. 4133), in paragraph (15), by transferring such 
     paragraph so as to insert it after paragraph (14) of 
     subsection (a);
       (3) in subsection (a)(9), by inserting ``, watercraft, or 
     aircraft'' after ``motor vehicle'';
       (4) in subsection (a)(15), as so redesignated by paragraph 
     (2) of this subsection, by inserting ``to a spouse, former 
     spouse, or child of the debtor and'' after ``(15)'';
       (5) in subsection (a)(17)--
       (A) by striking ``by a court'' and inserting ``on a 
     prisoner by any court'';
       (B) by striking ``section 1915 (b) or (f)'' and inserting 
     ``subsection (b) or (f)(2) of section 1915''; and
       (C) by inserting ``(or a similar non-Federal law)'' after 
     ``title 28'' each place it appears; and
       (6) in subsection (e), by striking ``a insured'' and 
     inserting ``an insured''.

     SEC. 415. 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) of this title, or that''.

     SEC. 416. 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. 417. PROPERTY OF THE ESTATE.

       Section 541(b)(4) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (B)(ii), by inserting ``365 or'' before 
     ``542''; and
       (2) by adding ``or'' at the end.

     SEC. 418. LIMITATIONS ON AVOIDING POWERS.

       Section 546 of title 11, United States Code, is amended by 
     redesignating the second subsection (g) (as added by section 
     222(a) of the Bankruptcy Reform Act of 1994; 108 Stat. 4129) 
     as subsection (h).

     SEC. 419. PREFERENCES.

       Section 547 of title 11, United States Code, is amended--
       (1) in subsection (b), by striking ``subsection (c)'' and 
     inserting ``subsections (c) and (h)''; and
       (2) by adding at the end the following:
       ``(h) If the trustee avoids under subsection (b) a security 
     interest given between 90 days and 1 year before the date of 
     the filing of the petition, by the debtor to an entity that 
     is not an insider for the benefit of a creditor that is an 
     insider, such security interest shall be considered to be 
     avoided under this section only with respect to the creditor 
     that is an insider.''.

     SEC. 420. POSTPETITION TRANSACTIONS.

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

     SEC. 421. TECHNICAL AMENDMENT.

       Section 552(b)(1) of title 11, United States Code, is 
     amended by striking ``product'' each place it appears and 
     inserting ``products''.

     SEC. 422. SETOFF.

       Section 553(b)(1) of title 11, United States Code, is 
     amended by striking ``362(b)(14)'' and inserting 
     ``362(b)(17)''.

     SEC. 423. DISPOSITION OF PROPERTY OF THE ESTATE.

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

     SEC. 424. GENERAL PROVISIONS.

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

     SEC. 425. 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. 
     Upon the filing of a report under the preceding sentence--
       ``(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.
       ``(B) In the case of any dispute arising out of an election 
     under subparagraph (A), the court shall resolve the 
     dispute.''.

     SEC. 426. 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. 427. 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. 428. DISCHARGE UNDER CHAPTER 12.

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

     SEC. 429. EXTENSIONS.

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

[[Page S10109]]

       (2) in subparagraph (F)--
       (A) in clause (i)--
       (i) in subclause (II), by striking ``or October 1, 2002, 
     whichever occurs first''; and
       (ii) in the matter following subclause (II), by striking 
     ``October 1, 2003, or''; and
       (B) in clause (ii), in the matter following subclause 
     (II)--
       (i) by striking ``before October 1, 2003, or''; and
       (ii) by striking ``, whichever occurs first''.

     SEC. 430. 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. 431. 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. 432. 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 enactment of this Act.
       (b) Application of Amendments.--The amendments made by this 
     title shall apply only with respect to cases commenced under 
     title 11, United States Code, on or after the date of 
     enactment of this Act.


                           Amendment No. 3559

                (Purpose: In the nature of a substitute)

  Mr. LOTT. On behalf of Senator Grassley, I send an amendment to the 
desk.
  The PRESIDING OFFICER. The clerk will report the amendment.
  The assistant legislative clerk read as follows:

       The Senator from Mississippi [Mr. Lott] for Mr. Grassley, 
     for himself and Mr. Hatch, proposes an amendment numbered 
     3559.

  Mr. LOTT. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  Mr. LOTT. Mr. President, I send a cloture motion to the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:


                             Cloture Motion

       We, the undersigned Senators, in accordance with the 
     provision of Rule XXII of the Standing Rules of the Senate, 
     do hereby move to bring to a close debate on the substitute 
     amendment to Calendar No. 394, S. 1301, the Consumer 
     Bankruptcy Protection Act:
         Trent Lott, Orrin G. Hatch, Charles Grassley, Arlen 
           Specter, Strom Thurmond, Connie Mack, Ben Nighthorse 
           Campbell, Thad Cochran, Tim Hutchinson, Wayne Allard, 
           Christopher Bond, Rick Santorum, Chuck Hagel, Larry E. 
           Craig, and Jon Kyl.

  Mr. LOTT. Mr. President, for the information of all Senators, this 
cloture vote would occur, then, on Friday 1 hour after the Senate 
convenes unless changed by unanimous consent or unless we get something 
worked out.
  I yield to Senator Daschle for his comments on this or his 
suggestions as to how we might proceed.
  Mr. DASCHLE. Mr. President, I appreciate the leader's comments 
earlier. I do believe that there is an opportunity here for us to come 
to some procedural conclusion on how we might address this bill. I 
think that Senators Grassley and Durbin have been working in good 
faith. I have had the opportunity to discuss this matter with Senator 
Kennedy. I personally don't believe the cloture motion is the most 
constructive approach, but I also recognize that the majority leader 
has noted that that could be vitiated were we to come to some 
agreement.
  I think it is a fair statement that if we are forced into a cloture 
motion, nothing will happen. If we can reach an agreement, there may be 
an opportunity for us to have a good debate and to have some votes on 
key amendments, both directly relevant to the bill and perhaps not as 
directly relevant, but certainly relevant to the American agenda.
  I am hopeful that we can accommodate the needs of Senators who have 
expressed an interest in amending this bill. I am confident that we 
can, and I hope this cloture motion will not be necessary.
  Mr. LOTT. Mr. President, just in conclusion, once again, I urge all 
of the Senators that are interested in this legislation that they begin 
work right away, tomorrow, so that we will not let the whole day pass 
without trying to work something out. Senator Daschle and I will talk 
as the day progresses. That would be the wise thing to do, I think, if 
we can work something out that is reasonable, to allow us to continue 
to complete campaign finance reform, and so we can go on and hopefully 
complete the Interior appropriations bill.
  This is a positive move and I appreciate the opportunity to work on 
it to see if we can get something agreed to.
  Mr. President, at this point, I ask that the mandatory quorum under 
rule XXII be waived.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. LOTT. On behalf of the managers of the bankruptcy bill, I hope 
Members will file their amendments in a timely manner. I know there are 
amendments that Senators are very interested in that would even be 
relevant postcloture, and then there are others that obviously Members 
are interested in, too. I hope they will file them. The managers are 
attempting to clear as many amendments as possible and would like to 
reach a consent agreement limiting amendments, if that is at all 
possible, and perhaps that could be taken care of in our agreement that 
we are working on.

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