[Congressional Record Volume 144, Number 127 (Tuesday, September 22, 1998)]
[Senate]
[Pages S10712-S10713]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 CONSUMER BANKRUPTCY REFORM ACT OF 1998

  The Senate continued with the consideration of the bill.


            Modifications to Amendment No. 3595, as modified

  Mr. GRASSLEY. Mr. President, I ask unanimous consent that the 
amendment No. 3595, previously agreed to, be modified to make certain 
technical corrections and remove duplicate language. The language is 
now at the desk.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The modifications to Amendment No. 3595 are as follows:

       1. Replace page 3 of the Amendment with the following 
     language:

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

       (a) Section 507(a) of title 11, United States Code, is 
     amended by inserting after paragraph (9) the following:
       ``(10) Tenth, allowed claims for death or personal injuries 
     resulting from the operation of a motor vehicle or vessel if 
     such operation was unlawful because the debtor was 
     intoxicated from using alcohol, a drug or another 
     substance.''.
       (b) Section 523(a)(9) of title 11, United States Code, is 
     amended by inserting ``or vessel'' after ``vehicle''.
       2. Replace pages 31 and 32 with the following language:

     SEC.   . DEBT LIMIT INCREASE.

       Section 104(b) of title 11, United States Code, is amended 
     by adding at the end the following:
       ``(4) The dollar amount in section 101(18) shall be 
     adjusted at the same times and in the same manner as the 
     dollar amounts in paragraph (1) of this subsection, beginning 
     with the adjustment to be made on April 1, 2001.''.

     SEC.   . ELIMINATION OF REQUIREMENT THAT FAMILY FARMER AND 
                   SPOUSE RECEIVE OVER 50 PERCENT OF INCOME FROM 
                   FARMING OPERATION IN YEAR PRIOR TO BANKRUPTCY.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``the taxable year preceding the taxable 
     year'' and inserting ``at least one of the three calendar 
     years preceding the year''

     SEC.   . PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE 
                   INCOME.

       (a) Section 1225(b) of title 11, United States Code, is 
     amended by adding at the end the following:
       ``(3) If the plan provides for specific amounts of property 
     to be distributed on account of allowed unsecured claims as 
     required by paragraph (1)(B) of this subsection, those 
     amounts equal or exceed the debtor's projected disposable 
     income for that period, and the plan meets the requirements 
     for confirmation other than those of this subsection, the 
     plan shall be confirmed.
       (b) Section 1229 of title 11, United States Code, is 
     amended by adding at the end the following:
       ``(d)(1) A modification of the plan under this section may 
     not increase the amount of payments that were due prior to 
     the date of the order modifying the plan.
       ``(2) A modification of the plan under this section to 
     increase payments based on an increase in the debtor's 
     disposable income may not require payments to unsecured 
     creditors in any particular month greater than the debtor's 
     disposable income for that month unless the debtor proposes 
     such a modification.
       ``(3) A modification of the plan in the last year of the 
     plan shall not require payments that would leave the debtor 
     with insufficient funds to carry on the farming operation 
     after the plan is completed unless the debtor proposes such a 
     modification.''.
       3. Strike pages 46 through 49.
       4. Replace pages 58 and 59 with the following language:

     SEC.   . DISCOURAGING ABUSIVE REAFFIRMATION PRACTICES.

       Section 524 of title 11, United States Code, is amended--
       (1) in subsection (c)(2)(B) by adding at the end the 
     following:
       ``(C) such agreement contains a clear and conspicuous 
     statement which advises the debtor what portion of the debt 
     to be reaffirmed is attributable to principal, interest, late 
     fees, creditor's attorneys fees, expenses or other costs 
     relating to the collection of the debt.''.
       (2)(A) in subsection (c)(6)(B), by inserting after ``real 
     property'' the following: ``or is a debt described in 
     subsection (c)(7)''; and
       (B) by adding at the end of subsection (c) the following:

[[Page S10713]]

       ``(7) in a case concerning an individual, if the 
     consideration for such agreement is based in whole or in part 
     on an unsecured consumer debt, or is based in whole or in 
     part upon a debt for an item of personalty the value of which 
     at point of purchase was $250 or less, and in which the 
     creditor asserts a purchase money security interest, the 
     court, approves such agreement as--
       ``(A) in the best interest of the debtor in light of the 
     debtor's income and expenses;
       ``(B) not imposing an undue hardship on the debtor's future 
     ability of the debtor to pay for the needs of children and 
     other dependents (including court ordered support);
       ``(C) not requiring the debtor to pay the creditor's 
     attorney's fees, expenses or other costs relating to the 
     collection of the debt;
       ``(D) not entered into to protect property that is 
     necessary for the care and maintenance of children or other 
     dependents that would have nominal value on repossession;
       ``(E) not entered into after coercive threats or actions by 
     the creditor in the creditor's course of dealings with the 
     debtor.''.
       (3) in subsection (d)(2) by striking ``subsections (c)(6)'' 
     and inserting ``subsections (c)(6) and (c)(7)'', and after 
     ``of this section,'' by striking ``if the consideration for 
     such agreement is based in whole or in part on a consumer 
     debt that is not secured by real property of the debtor'' and 
     adding at the end: ``as applicable''.
       5. Strike page 66.

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