[House Report 105-573]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-573
_______________________________________________________________________


 
PROVIDING FOR THE CONSIDERATION OF H.R. 3150, BANKRUPTCY REFORM ACT OF 
                                  1998

                                _______
                                

    June 9, 1998.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


    Mr. Linder, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 462]

    The Committee on Rules, having had under consideration 
House Resolution 462, by a record vote of 9 to 4, report the 
same to the House with the recommendation that the resolution 
be adopted.

               brief summary of provisions of resolution

    The resolution provides for the consideration of H.R. 3150, 
the ``Bankruptcy Reform Act of 1998'' under a structured rule. 
The rule provides one hour of general debate divided equally 
between the chairman and ranking minority member of the 
Committee on the Judiciary.
    The rule waives section 303(a) of the Congressional Budget 
Act (prohibiting consideration of legislation, as reported, 
providing new budget authority, changes in revenues, or changes 
in the public debt for a fiscal year until the budget 
resolution for that year has been agreed to) against 
consideration of the bill.
    The rule provides that the amendment in the nature of a 
substitute recommended by the Committee on the Judiciary now 
printed in the bill be considered as an original bill for the 
purpose of amendment. The rule provides that the committee 
amendment in the nature of a substitute shall be considered by 
title and that each title shall be considered as read. The rule 
waives all points of order against the committee amendment in 
the nature of a substitute.
    The rule provides that no amendment to the committee 
amendment in the nature of a substitute shall be in order 
except those printed in this report, which may be offered only 
in the order printed in this report, may be offered only by a 
Member designated in this report, shall be considered as read, 
shall be debatable for the time specified in this report 
equally divided and controlled by the proponent and an 
opponent, and shall not be subject to amendment. The rule 
waives all points of order against the amendments printed in 
this report.
    The rule allows the chairman of the Committee of the Whole 
to postpone recorded votes and to reduce to five minutes the 
voting time on any postponed question, provided voting time on 
the first in any series of questions is not less than 15 
minutes. Finally, the rule provides for one motion to recommit 
with or without instructions.

                            committee votes

    Pursuant to clause 2(l)(2)(B) of House Rule XI the results 
of each rollcall vote on an amendment or motion to report, 
together with the names of those voting for and against, are 
printed below:

Rules Committee Rollcall No. 92

    Date: June 9, 1998.
    Measure: Resolution providing for the consideration of H.R. 
3150, the ``Bankruptcy Reform Act of 1998''.
    Motion by: Mr. Moakley.
    Summary of motion: Open rule for the consideration of H.R. 
3150, the Bankruptcy Reform Act of 1998.
    Results: Defeated 2 to 7.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Hastings--Nay; Myrick--Nay; Moakley--Yea; Frost--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 93

    Date: June 9, 1998.
    Measure: Resolution providing for the consideration of H.R. 
3150, the ``Bankruptcy Reform Act of 1998''.
    Motion by: Mr. Moakley.
    Summary of motion: To make in order amendment numbered 36 
by Representatives Jackson-Lee, Slaughter, Nadler and 
Blumenauer which clarifies status of child support and alimony 
payments under the means test; insures that child support and 
alimony are paid before unsecured debts; protects against 
abusive reaffirmation agreements that adversely impact support 
obligations; protects children's toys in bankruptcy; prevents 
new creditor entitlements from competing against child support, 
alimony and other priority payments; protects property 
settlements and other debts owing to a spouse or child in 
chapter 13; acknowledges the bankruptcy rights of creditors who 
are drunk driving victims or victims of crimes or willful or 
malicious injury; and enforces the bill's protections for child 
support and alimony.
    Results: Defeated 3 to 7.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Hastings--Nay; Myrick--Nay; Moakley--Yea; Frost--
Yea; Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 94

    Date: June 9, 1998.
    Measure: Resolution providing for the consideration of H.R. 
3150, the ``Bankruptcy Reform Act of 1998''.
    Motion by: Mr. Frost.
    Summary of motion: To make in order amendment numbered 40 
by Representatives Edwards and Bentsen which Strikes provisions 
in the bill that limit the amount that may be exempted under 
the Texas Homestead Exemption Law by individuals who file for 
bankruptcy.
    Results: Defeated 4 to 9.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; Hastings--Nay; 
Myrick--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Slaughter--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 95

    Date: June 9, 1998.
    Measure: Resolution providing for the consideration of H.R. 
3150, the ``Bankruptcy Reform Act of 1998''.
    Motion by: Mr. Dreier.
    Summary of motion: Order the rule reported.
    Results: Adopted 9 to 4.
    Vote by Members: Dreier--Yea; Goss--Yea; Linder--Yea; 
Pryce--Yea; Diaz-Balart--Yea; McInnis--Yea; Hastings--Yea; 
Myrick--Yea; Moakley--Nay; Frost--Nay; Hall--Nay; Slaughter--
Nay; Solomon--Yea.

Amendments Made in Order Under the Rule for H.R. 3150 Bankruptcy Reform 
                              Act of 1998

         (Listed in the order in which they will be considered)

  (Numbers correspond to the numbered amendments filed with the Rules 
                               Committee)

    37. Hyde (10 Minutes): Manager's Amendment. Ensures that a 
debtor who is disqualified from obtaining relief under chapter 
7 of the Bankruptcy Code by virtue of the bill's needs-based 
formula is also not disqualified from obtaining relief under 
chapter 11. Accords a higher priority to child and spousal 
support obligations in bankruptcy cases. Adds a provision 
regarding the treatment of nonmonetary defaults under executory 
contracts and unexpired leases. Makes substantive revisions 
relating to the debt counseling service and financial 
management provisions contained in Sections 111 through 116. 
Clarifies language regarding procedural aspects of bad faith 
repeat filings and prompt relief from the automatic stay. 
Deletes Section 145, regarding credit extensions obtained 
without a reasonable expectation of repayment. Amends Section 
182, which limits the amount of a debtor's homestead, to 
prevent manipulation of this provision to the disadvantage of 
homeowners through the use of involuntary bankruptcy 
proceedings. Adds administrative safeguards to Section 201 
(appointment of fee examiners) and Section 205 (creditor's 
committee membership). Revises Section 212 to accord more 
protection to recording artists. Amendment to Section 235 
clarifies that the Advisory Committee on Bankruptcy Rules of 
the Judicial Conference of the United States will establish 
uniform rules and forms for small business debtors.
    29. Nadler (10 minutes): Modifies the small business 
subtitle: Restores the right of an individual debtor to count 
debt as ``disposable income'' if the debtor is engaged in 
business, for the payment of expenditures necessary for the 
continuation, preservation and operation of such business; 
restores the current definition of ``small business debtor''; 
strikes onerous and burdensome paperwork and other paperwork 
and other bureaucratic burdens, and excessively rigid and short 
deadlines which are not otherwise imposed on larger businesses 
in Chapter 11; strikes a provision which would allow a creditor 
to violate the automatic stay if the creditor had a ``good 
faith belief'' that it was exempt from the automatic stay; 
strikes a provision that would prohibit a small business from 
filing a new petition for two years after a case was dismissed 
or ended; and strikes a provision which would require a 
successor entity to a previously bankruptcy entity to bring 
forward a plan capable of confirmation in order to file the 
case in the first place.
    6. Delahunt (10 minutes): Adds a new section 105 to the 
bill authorizing the Judicial Conference of the United States 
to reduce disbursements to unsecured nonpriority creditors 
payable in Chapter 13 cases to cover the increased costs to the 
courts and the U.S. Trustees Office of implementing and 
administering the means testing system provided for under the 
bill.
    18. Boucher, Gekas (10 minutes): Expands the definition of 
``household goods'' to include any personal property that is 
reasonable, necessary for the maintenance or support of a 
dependent child, thereby ensuring that exempt household 
possessions used in childbearing will not be taken away from 
the parent filing bankruptcy by a secured creditor who did not 
finance the purchase of those possessions. Rewrites the 
provision which makes debts incurred to pay nondischargeable 
debt nondischargeable--such debts continue to be 
nondischargable in many cases. If the debtor is a single parent 
with dependent children or a person obligated to pay child 
support, the debt will not be dischargeable unless the creditor 
shows that the debtor intentionally used the borrowed funds to 
pay the debt which is involved. Moves child support, alimony 
and marital dissolution obligations from 7th priory to 1st 
priority during bankruptcy proceedings. Requires that a chapter 
13 debtor obligated to pay child support, alimony or marital 
dissolution obligations do so before paying any other priority 
debt.
    32. Gekas (10 minutes): Provides that a prevailing party 
must be awarded the cost of any filing fees incurred in 
connection with the filing of a nondischargeability proceeding 
in a case where the debtor is an individual.
    39. Shaw, Camp (10 minutes): If credit card companies 
obtain payments from parents who owe past-due child support, 
the companies are required to hold the payments in trust and 
distribute the payments to parents and children who are 
entitled to priority under the committee bill.
    38. Paul (10 minutes): Reorders the tax priorities for debt 
repayment (U.S.C. title 11 Chapter 5 Subchapter I Section 507) 
to put repayment to governmental units as the last priority 
with local governmental units before state governmental units 
which would be repaid before Federal governmental units.
    24. Gekas, McCollum, Smith (TX) (10 minutes): Prohibits the 
conversion of non-exempt assets into exempt homestead property 
within 1 year of filing for bankruptcy. Prevents abuses such as 
using bankruptcy exemptions as a means of hiding assets.
    13. Scott (10 minutes): Eliminates Section 212 of the bill. 
The effect is to maintain current law by eliminating the 
provisions of the bill which would prevent a recording artist 
from discharging their obligations under service contract 
agreements with recording companies.
    16. Velazquez (10 minutes): Requires a study of the causes 
of small business bankruptcies. The study would examine how the 
bankruptcy system can be improved in order to help viable small 
businesses reorganize.
    11. Baldacci (10 minutes): Directs the Comptroller General 
to conduct a study of the impact on the nation's bankruptcy 
rate due to the extension of credit to students enrolled in 
post-secondary education programs who are claimed as dependents 
for tax purposes by their parents or legal guardians.
    27. Nadler, Meehan, Berman, Jackson-Lee (1 hour): 
Democratic Amendment in the Nature of a Substitute. Deletes one 
size fits all means test. Strengthens procedure under current 
law for dismissal of a case for abuse of Chapter 7. Restores 
existing priorities among creditors. Protects alimony and child 
support. Revises the small business subtitle to be consistent 
with the recommendations of the National Bankruptcy Conference 
and the Small Business Administration. Reduces administrative 
costs and paperwork burdens. Ensures that governments, 
including the IRS cannot harass debtors. Retains International 
and Miscellaneous titles.
    The amendments made in order by the rule are as follows:

1. An Amendment To Be Offered by Representative Hyde of Illinois, or a 
                   Designee, Debatable for 10 Minutes

  Page 6, line 8, strike ``spouse'' and insert ``spouse,''.
  Page 8, line 13, insert ``, issued by the Internal Revenue 
Service,'' after ``debts)''.
  Page 8, line 16, strike ``under'' and insert ``by''.
  Page 8, beginning on line 16, strike ``financial analysis for 
expenses'' and insert ``allowance for such expenses''.
  Page 9, line 10, insert ``total'' after ``monthly''.
  Page 9, line 20, insert ``total'' after ``monthly''.
  Page 9, line 21, strike ``what income'' and insert ``any 
income that''.
  Page 12, line 15, insert ``chapter 13'' after ``a'' (and make 
such technical and conforming changes to the table of contents 
of the bill as may be appropriate).
  Page 13, line 1, insert ``, issued by the Internal Revenue 
Service,'' after ``debts)''.
  Page 13, line 4, strike ``under'' and insert ``by''.
  Page 13, beginning on line 5, strike ``financial analysis for 
expenses'' and insert ``allowance for such expenses''.
  Page 13, line 15, strike ``of'' and insert ``under''.
  Page 13, line 22, strike ``of'' and insert ``under''.
  Page 14, line 3, insert ``and'' at the end.
  Page 14, beginning on line 14, strike ``, in a case in which 
a trustee has been appointed,''.
  Page 14, beginning on line 21, strike ``what income'' and 
inserting ``any income that''.
  Page 18, line 1, strike ``total current monthly'' and insert 
``current monthly total''.
  Page 18, beginning on line 7, strike ``total current 
monthly'' and insert ``current monthly total''.
  Page 20, line 24, strike ``and'' at the end and insert a 
comma.
  Page 21, line 1, strike ``its schedules'' and insert 
``schedules,''.
  Page 21, beginning on line 3, strike ``and its schedules'' 
and insert ``schedules,''.
  Page 22, beginning on line 6, strike ``outside'' and all that 
follows through ``system)'' on line 7.
  Page 24, line 21, insert ``by the debtor'' after 
``statement''.
  Page 25, after line 6, insert the following (and make such 
technical and conforming changes as may be appropriate):

SEC. 105. WHO MAY BE A DEBTOR UNDER CHAPTER 11.

  Section 109(d) of title 11, United States Code, is amended by 
inserting ``, or a person described in subsection (b)(4)),'' 
after ``chapter 7''.
  Page 25, line 19, strike ``12'' and insert ``12,''.
  Page 26, line 3, strike ``(i)'' and insert ``(i)(I)''.
  Page 26, line 5, strike ``(ii)'' and insert ``(II)''.
  Page 26, line 6, strike the period at the end and insert ``; 
and''.
  Page 26, after line 6, insert the following:
                  ``(ii) that offers its services to debtors 
                without charge, or at an appropriately reduced 
                charge if payment of any regular charge would 
                impose a hardship on the debtor or a dependent 
                of the debtor.''
  Page 26, line 10, insert ``or on the motion of the United 
States trustee and'' after ``district''.
  Page 26, beginning on line 11, strike ``the United States 
trustee and''.
  Page 27, line 21, strike ``60'' and insert ``180''.
  Page 33, line 22, strike ``select a chapter 7 proceeding'' 
and insert ``choose to file a chapter 7 case''.
  Page 34, line 1, strike ``select a chapter 13 proceeding'' 
and insert ``choose to file a chapter 13 case''.
  Page 34, line 6, strike ``proceeding'' and insert ``relief''.
  Page 34, line 9, strike ``proceeding'' and insert ``relief''.
  Page 34, line 10, strike ``procceding'' and insert ``case''.
  Page 34, beginning on line 13, strike ``represent you in 
litigation'' and insert ``give you legal advice''.
  Page 34, line 21, insert ``, to the extent permitted by 
nonbankruptcy law,''.
  Page 38, line 4, strike ``or'' and insert ``and''.
  Page 41, after line 12, insert the following:
          ``(5) Notwithstanding any other provision of Federal 
        law, if the court, on its own motion or on the motion 
        of the United States trustee, finds that a person 
        intentionally violated section 526 or 527 of this 
        title, or engaged in a clear and consistent pattern or 
        practice of violating section 526 or 527 of this title, 
        the court may--
                  ``(A) enjoin the violation of such section; 
                or
                  ``(B) impose an appropriate civil penalty 
                against such person.''.
  Page 43, line 17, insert ``, together with any other such 
contribution,'' after ``contribution''.
  Page 46, line 12, strike ``2002bb'' and insert ``2000bb''.
  Page 49, beginning on line 8, strike ``If a party in interest 
requests'' and insert ``Upon motion by a party in interest for 
continuation of the automatic stay and upon notice and a 
hearing''.
  Page 55, line 9, strike ``reaffirmation''.
  Page 56, line 1, insert ``the automatic'' after ``from'' (and 
make such technical and conforming changes to the table of 
contents of the bill as may be appropriate).
  Page 59, line 7, insert ``the automatic'' after ``from'' (and 
make such technical and conforming changes to the table of 
contents of the bill as may be appropriate).
  Page 59, line 20, insert ``as described in findings made by 
the court'' after ``circumstances''.
  Page 60, line 12, strike ``cases'' and insert ``a case''.
  Page 64, line 3, strike ``case''.
  Page 66, line 19, insert ``, excluding debts incurred for 
necessaries that do not exceed $250 in the aggregate,'' after 
``creditor''.
  Page 66, beginning on line 22, strike ``, except'' and all 
that follows through ``less'' on line 25.
  Page 67, line 23, strike ``or divorce or dissolution decree'' 
and insert ``divorce decree, or other order of a court of 
record''.
  Page 68, strike lines 8 through 23 (and make such technical 
and conforming changes as may be appropriate).
  Page 74, strike lines 13 through 15, and insert the 
following:
          (2) in subsection (a)(7) by inserting ``an order of 
        disgorgement or restitution obtained by a governmental 
        unit,'' after ``such debt is for''; and
  Page 75, line 20, strike ``the''.
  Page 76, line 14, strike ``(14)'' and insert ``(19)''.
  Page 76, in the matter after line 21, insert ``payments after 
discharge'' after ``alimony''.
  Page 78, after line 2, insert the following (and make such 
technical and conforming changes as may be appropriate):

SEC. 152. HIGHER PRIORITY FOR DEBTS FOR ALIMONY, MAINTENANCE, AND 
                    SUPPORT.

  Section 507(a) of title 11, United States Code, is amended--
          (1) by striking paragraph (7);
          (2) in paragraph (6) by striking ``(6) Sixth'' and 
        inserting ``(7) Seventh'';
          (3) in paragraph (5) by striking ``(5) Fifth'' and 
        inserting ``(6) Sixth'';
          (4) in paragraph (4) by striking ``(4) Fourth'' and 
        inserting ``(5) Fifth'';
          (5) in paragraph (3) by striking ``(3) Third'' and 
        inserting ``(4) Fourth''; and
          (6) by inserting after paragraph (2) the following:
          ``(3) Third, allowed claims for debts to a spouse, 
        former spouse, or child of the debtor for alimony to, 
        maintenance for, or support of such spouse or child, in 
        connection with a separation agreement, divorce decree 
        or other order of a court of record, determination made 
        in accordance with State or territorial law by a 
        governmental unit, or property settlement agreement, 
        but not to the extent that such debt--
                  ``(A) is assigned to another entity, 
                voluntarily, by operation of law, or otherwise; 
                or
                  ``(B) includes a liability designed as 
                alimony, maintenance, or support, unless such 
                liability is actually in the nature of alimony, 
                maintenance, or support.''.
  Page 83, strike lines 17 through 19, and insert the 
following:
apply to--
          ``(A) an exemption claimed under subsection (b)(2)(A) 
        by a family farmer for the principal residence of that 
        farmer; or
          ``(B) an involuntary case.''.
  Page 84, strike lines 8 through 10, and insert the following:
  ``(e) A person appointed to examine a request for 
compensation or reimbursement payable under this section may 
not be paid on the basis of the amount of any reduction 
recommended by such person in the amount or rate of such 
compensation or such reimbursement.''.
  Page 85, line 16, strike ``(3)'' and insert ``(3)(A)''.
  Page 85, line 16, insert ``, subject to subparagraph (B),'' 
after ``or''.
  Page 85, line 20, strike the close quotation marks and the 
period at the end.
  Page 85, after line 20, insert the following:
  ``(B) A request to change the membership of a committee 
appointed under subsection (a) may be made under subparagraph 
(A) by a party in interest only after such request is submitted 
to and denied by the United States trustee.''.
  Beginning on page 90, strike line 24 and all that follows 
through line 10 on page 91, and insert the following:
          ``(5) Where the court finds that a personal services 
        contract is property of the estate, the trustee may not 
        reject an executory contract for personal services in 
        which advances are paid for the creation of copyrighted 
        sound recordings in the future if a material purpose 
        for commencing a case under this title is to reject 
        such contract, unless, absent such rejection, economic 
        rehabilitation of the debtor's finances, including such 
        contract, cannot be achieved.''.
  Page 91, beginning on line 24, strike ``debtor's motion'' and 
insert ``motion of the trustee''.
  Page 92, line 4, insert ``the'' after ``provided''.
  Page 92, after line 24, insert the following (and make such 
technical and conforming changes as may be appropriate):

SEC. 215. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

  (a) Executory Contracts and Unexpired Leases.--Section 365 of 
title 11, United States Code, is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1)(A) by striking the 
                semicolon at the end and inserting the 
                following:
        ``other than a default that is a breach of a provision 
        relating to--
                  ``(i) the satisfaction of any provision 
                (other than a penalty rate or penalty 
                provision) relating to a default arising from 
                any failure to perform nonmonetary obligations 
                under an unexpired lease of real property, if 
                it is impossible for the trustee to cure such 
                default by performing nonmonetary acts at and 
                after the time of assumption; or
                  ``(ii) the satisfaction of any provision 
                (other than a penalty rate or penalty 
                provision) relating to a default arising from 
                any failure to perform nonmonetary obligations 
                under an executory contract, if it is 
                impossible for the trustee to cure such default 
                by performing nonmonetary acts at and after the 
                time of assumption and if the court determines, 
                based on the equities of the case, that this 
                subparagraph should not apply with respect to 
                such default;'', and
                  (B) by amending paragraph (2)(D) to read as 
                follows:
          ``(D) the satisfaction of any penalty rate or penalty 
        provision relating to a default arising from a failure 
        to perform nonmonetary obligations under an executory 
        contract or under an unexpired lease of real or 
        personal property.'',
          (2) in subsection (c)--
                  (A) in paragraph (2) by adding ``or'' at the 
                end,
                  (B) in paragraph (3) by striking ``; or'' at 
                the end and inserting a period, and
                  (C) by striking paragraph (4),
          (3) in subsection (d)--
                  (A) by striking paragraphs (5) through (9), 
                and
                  (B) by redesignating paragraph (10) as 
                paragraph (5).
          (4) in subsection (f)(1) by striking ``; except 
        that'' and all that follows through the end of the 
        paragraph and inserting a period.
  (b) Impairment of Claims or Interests.--Section 1124(2) of 
title 11, United States Code, is amended--
          (1) in subparagraph (A) by inserting ``or of a kind 
        that section 365(b)(1)(A) of this title expressly does 
        not require to be cured'' before the semicolon at the 
        end,
          (2) in subparagraph (C) by striking ``and'' at the 
        end,
          (3) by redesignating subparagraph (D) as subparagraph 
        (E), and
          (4) by inserting after subparagraph (C) the 
        following:
                  ``(D) if such claim or such interest arises 
                from any failure to perform a nonmonetary 
                obligation, compensates the holder of such 
                claim or such interest (other than the debtor 
                or an insider) for any actual pecuniary loss 
                incurred by such holder as a result of such 
                failure; and''.
  Page 95, beginning on line 14, strike ``statements and 
plans'' and insert ``statement and plan'' (and make such 
technical and conforming changes to the table of contents of 
the bill as may be appropriate).
  Beginning on page 97, strike line 17 and all that follows 
through line 6 on page 98, and insert the following (and make 
such technical and conforming changes as may be appropriate):

SEC. 235. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.

  (a) Proposal of Rules and Forms.--The Advisory Committee on 
Bankruptcy Rules of the Judicial Conference of the United 
States shall propose for adoption amended Federal Rules of 
Bankruptcy Procedure and Official Bankruptcy Forms to be used 
by small business debtors to file periodic financial and other 
reports containing information, including information relating 
to--
          (1) the debtor's profitability;
          (2) the debtor's cash receipts and disbursements; and
          (3) whether the debtor is timely filing tax returns 
        and paying taxes and other administrative claims when 
        due.
  (b) Purpose.--The rules and forms proposed under subsection 
(a) shall be designed to achieve a practical balance between--
          (1) the reasonable needs of the bankruptcy court, the 
        United States trustee or bankruptcy administrator, 
        creditors, and other parties in interest for reasonably 
        complete information;
          (2) the small business debtor's interest that 
        required reports be easy and inexpensive to complete; 
        and
          (3) the interest of all parties that the required 
        reports help the small business debtor to understand 
        its financial condition and plan its future.
  Page 103, line 22, insert ``and'' at the end.
  Page 104, strike lines 3 through 6, and insert the following:
          ``(9) in cases in which the United States trustee 
        finds material grounds for any relief under section 
        1112 of title 11, the United States trustee shall apply 
        promptly to the court for relief.''.
  Page 105, line 15, strike ``()'' and insert ``(j)''.
  Page 106, line 5, strike ``(C) un-'' and insert ``(C);''.
  Page 106, strike lines 6 through 12, and insert the 
following:
unless the debtor proves, by a preponderance of the evidence, 
that the filing of such petition resulted from circumstances 
beyond the control of the debtor not foreseeable at the time 
the case then pending was filed; and that it is more likely 
than not that the court will confirm a feasible plan, but not a 
liquidating plan, within a reasonable time.''.
  Page 108, line 24, strike ``, and'' and all that follows 
through line 2 on page 109, and insert a semicolon.
  Page 112, after line 6, insert the following (and make such 
technical and conforming changes as may be appropriate):

SEC. 302. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

  Section 901 of title 11, United States Code, is amended--
          (1) by inserting ``555, 556,'' after ``553,''; and
          (2) by inserting ``559, 560,'' after ``557,''.
  Page 125, line 8, strike ``total current monthly'' and insert 
``current monthly total''.
  Page 125, line 17, strike ``total current monthly'' and 
insert ``current monthly total''.
  Page 126, beginning on line 11, strike ``total current 
monthly'' and insert ``current monthly total''.
  Page 126, line 18, strike ``total current monthly'' and 
insert ``current monthly total''.
  Page 131, line 3, strike ``or dismissed'' and insert ``, 
dismissed, or closed''.
  Page 131, beginning on line 17, strike ``Such'' and all that 
follows through ``Courts.'' on line 19.
  Page 131, line 20, insert ``in such form as shall be 
determined by such Office, in consultation with the 
Administrative Office of the United States Courts,'' after 
``tics,''.
  Page 131, line 19, strike ``Office'' and insert ``Executive 
Office for United States Trustees''.
  Page 132, line 5, strike ``total current monthly'' and insert 
``current monthly total''.
  Page 133, line 16, insert ``uniform rules for the collection 
of'' after ``SEC. 442.'' (and make such technical and 
conforming changes to the table of contents of the bill as may 
be appropriate).
  Page 140, strike lines 6 through 10, and insert the 
following:
  amended to read as follows:
          ``(1) a debt of a kind specified in paragraph (1) or 
        (5) of section 523(a) of this title, and such property 
        shall be liable for a debt of a kind specified in such 
        paragraph (5) notwithstanding any State law to the 
        contrary;''
  Page 161, line 16, strike ``or'' at the end.
  Page 161, line 21, strike the period at the end and insert 
``; or''.
  Page 161, after line 21, insert the following:
          ``(3) an entity subject to a proceeding under the 
        Securities Investor Protection Act, a stockbroker 
        subject to subchapter III of chapter 7 of this title, 
        or a commodity broker subject to subchapter IV of 
        chapter 7 of this title.
  Page 164, line 2, strike ``Nothing in this chapter limits the 
power of'' and insert ``Subject to the specific limitations 
stated elsewhere in this chapter''.
  Page 165, after line 15, insert the following:
  ``(c) Subject to section 610 of this title, a foreign 
representative is subject to laws of general application.
  Page 165, line 16, strike ``(c)'' and insert ``(d)''.
  Page 165, beginning on line 17, strike ``proceeding'' and 
insert ``representative''.
  Page 165, line 19, insert ``by a foreign representative'' 
after ``cooperation''.
  Page 166. line 5, strike ``sections'' and insert ``section''.
  Page 166, line 10, strike ``filing a petition for''.
  Page 166, strike lines 22 and 23.
  Page 170, line 24, insert ``after notice and a hearing'' 
after ``606,''.
  Page 177, strike lines 11 through 17, and insert the 
following:
  ``(a) The court may grant relief under section 619 or 621, or 
may modify or terminate relief under subsection (c) of this 
section, only if the interests of the creditors and other 
interested persons or entities, including the debtor, are 
sufficiently protected.
  ``(b) The court may subject relief granted under section 619 
or 621, or the operation of the debtor's business under section 
620(a)(2) of this title, to conditions it considers 
appropriate, including the giving of security or the filing of 
a bond.
  Page 177, after line 21, insert the following:
  ``(d) Section 1104(d) shall apply to the appointment of an 
examiner under this chapter. Any examiner shall comply with the 
qualification requirements imposed on a trustee by section 322.
  Page 178, line 19, strike ``In all matters included within'' 
and insert ``Consistent with''.
  Page 179, line 6, strike ``In all matters included within'' 
and insert ``Consistent with''.
  Page 179, line 12, strike ``designated'' and insert 
``authorized''.
  Page 179, strike lines 15 through 18.
  Page 181, line 8, insert ``the relief granted in'' after 
``with''.
  Page 181, line 24, insert ``the relief granted in'' after 
``with''.
  Page 186, line 11, strike ``The'' and insert ``Except as 
otherwise provided in this Act, the''.
                              ----------                              


2. An Amendment To Be Offered by Representative Nadler of New York, or 
                  a Designee, Debatable for 10 Minutes

  Page 13, strike line 23 and insert the following:
                plan; and
                  ``(D) if the debtor is engaged in business, 
                the payment of expenditures necessary for the 
                continuation, preservation, and operation of 
                such business;'';
  Beginning on page 93, strike line 5 and all that follows 
through line 2 on page 94, and insert the following:
          
  (a) Definition.--Section 101 of title 11, United States Code, 
is amended--
          (1) by redesignating paragraph (51C) as paragraph 
        (51D); and
          (2) by inserting after paragraph (51B) the following:
          ``(51C) `small business case' means a case filed 
        under chapter 11 of this title in which the debtor is a 
        small business debtor;''.
  Beginning on page 98, strike line 7 and all that follows 
through the matter preceding line 15 on page 100 (and make such 
technical and conforming changes as may be appropriate).
  Beginning on page 100, strike line 15 and all that follows 
through line 11 on page 104 (and make such technical and 
conforming changes as may be appropriate).
  Beginning on page 105, strike line 1 and all that follows 
through line 12 on page 106 (and make such technical and 
conforming changes as may be appropriate).
  Beginning on page 106, strike line 13 and all that follows 
through line 16 on page 109, and insert the following (and make 
such technical and conforming changes as may be appropriate):

SEC. 243. ADDITIONAL GROUNDS FOR APPOINTMENT OF TRUSTEE.

  Section 1104(a) of title 11, United States Code,
                              ----------                              


      3. An Amendment To Be Offered by Representative Delahunt of 
         Massachusetts, or a Designee, Debatable for 10 Minutes

  Page 25, after line 6, insert the following (and make such 
technical and conforming changes as may be appropriate):

SEC. 105. AUTHORITY TO IMPOSE FEES PAYABLE FOR COSTS INCURRED TO 
                    ADMINISTER THE AMENDMENTS MADE BY SECTIONS 101 AND 
                    102.

  Section 1930(b) of title 28, United States Code, is amended--
          (1) by inserting ``(1)'' after ``(b)''; and
          (2) by adding at the end the following:
  ``(2) The Judicial Conference of the United States may 
prescribe additional fees that are both--
          ``(A) payable from disbursements to unsecured, 
        nonpriority creditors in cases under chapter 13 of 
        title 11; and
          ``(B) based on the estimated increased costs incurred 
        in cases under chapters 7 and 13 of title 11 of the 
        United States Code, by the Government to carry out the 
        amendments made by title I and subtitle A of IV of the 
        Bankruptcy Reform Act of 1998.''.
                              ----------                              


4. An Amendment To Be Offered by Representative Boucher of Virginia, or 
 Representative Gekas of Pennsylvania, or a Designee, Debatable for 10 
                                Minutes

  Page 54, line 15, before the semicolon insert the following:
        ``, except that the term shall also include any 
        tangible personal property reasonably necessary for the 
        maintenance and support of a dependent child''.
  Page 66, strike lines 11 through 13 and insert the following:
          ``(19) incurred to pay a debt that is 
        nondischargeable by reason of any other provision of 
        this subsection or section 727, 1141, 1228(a), 1228(b), 
        or 1328(b), 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 custodial 
                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 
                such spouse or child (but not to any other 
                person) which was unpaid 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 debt which is nondischargeable;''.
  Page 70, after line 12, insert the following (and make such 
technical and conforming changes as may be appropriate):
          (1) in the matter preceding paragraph (1) by 
        inserting before the colon the following:
``, 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'';
  Page 70, after line 22, insert the following (and make such 
technical and conforming changes as may be appropriate):
  (e) Contents of Plans.--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) of this title before 
        the payment of any other claim entitled to priority 
        under section 507(a), notwithstanding the priorities 
        established under section 507(a);''.
                              ----------                              


5. An Amendment To Be Offered by Representative Gekas of Pennsylvania, 
                or a Designee, Debatable for 10 Minutes

    Page 74, strike lines 16 and 17, and insert the following:
          (3) in subsection (c)--
                  (A) in paragraph (1) by striking ``(6), or
          (15)'' and inserting ``or (6)''; and
                  (B) by adding at the end the following:
    ``(3) In any proceeding under paragraph (1) in a case 
concerning an individual debtor, the court shall award to the 
prevailing party (other than the debtor) who is a party as 
defined in section 2412(d)(2)(B) of title 28, any filing fee 
paid by such party to commence such proceeding. The debt for 
such fee shall be treated as a nondischargeable debt under the 
respective paragraph (2), (4), or (6) of subsection (a) 
applicable to the debt that is the subject of such 
proceeding.''.
                              ----------                              


  6. An Amendment To Be Offered by Representative Shaw of Florida, or 
   Representative Camp of Michigan, or a Designee, Debatable for 10 
                                Minutes

    Page 76, line 17, insert the following before the 1st 
period:
except with respect to any property of the debtor acquired 
after the date of the filing of the petition. A creditor that 
receives a payment, or collects money or property, in 
satisfaction of all or part of any debt excepted from discharge 
under paragraph (2), (4), or (14) of section 523(a) of this 
title shall hold such payment, such money, or such property in 
trust and, not later than 20 days after receiving such payment 
or collecting such money or property, shall distribute such 
payment, such money, or such property ratably to individuals 
who then hold debts entitled to priority under this section. 
Not later than 5 years after receiving such payment or 
collecting such money or property, such creditor shall make the 
distribution required by this section to all individuals whose 
identity is known to such creditor, or is reasonably 
ascertainable by such creditor, at the time of distribution.
                              ----------                              


  7. An Amendment To Be Offered by Representative Paul of Texas, or a 
                   Designee, Debatable for 10 Minutes

  Page 78, after line 2, insert the following (and make such 
technical and conforming changes as may be appropriate):

SEC. 152. PRIORITIES.

  Section 507(a) of title 11, United States Code, as amended by 
any other provision of this Act, is amended--
          (1) in paragraph (9), as so redesignated and amended 
        by any other provision of this Act--
                  (A) by inserting ``firstly of local 
                governmental units, secondly of State 
                governmental units, and thirdly of all other 
                governmental units,'' after ``claims'';
                  (B) by striking ``(9) Ninth'' and inserting 
                ``(11) Eleventh''; and
                  (C) by transferring such paragraph so as to 
                insert such paragraph at the end of subsection 
                (a) of section 507;
          (2) in paragraph (10), as so redesignated and amended 
        by any other provision of this Act, by striking ``(10) 
        Tenth'' and inserting ``(9) Ninth'';
          (3) in paragraph (11), as so redesignated and amended 
        by any other provision of this Act, by striking ``(11) 
        Eleventh'' and inserting ``(10) Tenth''.
                              ----------                              


8. An Amendment To Be Offered by Representative Gekas of Pennsylvania, 
or Representative McCollum of Florida, or a Designee, Debatable for 10 
                                Minutes

    Beginning on page 82, strike line 23 and all that follows 
through line 19 on page 83, and insert the following:

SEC. 182. 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:
    ``(n) For purposes of subsection(b)(2)(A) and 
notwithstanding subsection (a), the value of an interest in--
          ``(1) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
          ``(2) a cooperative that owns property that the 
        debtor or a dependent of the debtor uses as a 
        residence; or
          ``(3) a burial plot for the debtor or a dependent of 
        the debtor;

shall be reduced to the extent such value is attributable to 
any portion of any property that the debtor disposed of in the 
365-day period ending of the date of the filing of the 
petition, with the intent to hinder, delay, or defraud a 
creditor and that the debtor could not exempt, or that portion 
that the debtor could not exempt, under subsection (b) if on 
such date the debtor had held the property so disposed of.''.
                              ----------                              


9. An Amendment to Be Offered by Representative Scott of Virginia, or a 
                   Designee, Debatable for 10 Minutes

  Beginning on page 90, strike line 19 and all that follows 
through line 10 on page 91 (and make such technical and 
conforming changes as may be appropriate).
                              ----------                              


10. An Amendment To Be Offered by Representative Velazquez of New York, 
                or a Designee, Debatable for 10 Minutes

  Page 110, after line 2, insert the following (and make such 
technical and conforming changes as may be appropriate):

SEC. 244. STUDY OF OPERATION OF TITLE 11 OF THE UNITED STATES CODE WITH 
                    RESPECT TO SMALL BUSINESSES.

  Not later than 2 years after the date of the enactment of 
this Act, the Small Business Administration, in consultation 
with the Attorney General, the Director of the Administrative 
Office of United States Trustees, and the Director of the 
Administrative Office of the United States Courts, shall--
          (1) conduct a study to determine--
                  (A) the internal and external factors that 
                cause small businesses to become debtors in 
                cases under title 11 of the United States Code 
                and that cause certain small businesses to 
                successfully complete cases under chapter 11 of 
                such title; and
                  (B) how Federal laws relating to bankruptcy 
                can be made more effective and efficient in 
                assisting small businesses to remain viable; 
                and
          (2) submit to the Speaker of the House of 
        Representatives and the President pro tempore of the 
        Senate a report summarizing such study.
                              ----------                              


11. An Amendment To Be Offered by Representative Baldacci of Maine, or 
                  a Designee, Debatable for 10 Minutes

    Page 131, after line 7, insert the following:

SEC. 414. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT 
                    STUDENTS.

    Not later than 1 year after the date of the enactment of 
this Act, the Comptroller General of the United States shall--
      (1) conduct a study regarding the impact that the 
extension of credit to individuals who are--
                  (A) claimed as dependents for purposes of the 
                Internal Revenue Code of 1986; and
                  (B) enrolled in post-secondary educational 
                institutions;

has on the rate of cases filed under title II of the United 
States Code; and
      (2) submit to the Speaker of the House of Representatives 
and the President pro tempore of the Senate a report 
summarizing such study.
                              ----------                              


12. An Amendment To Be Offered by Representative Nadler of New York, or 
Representative Meehan of Massachusetts, or a Designee, Debatable for 60 
                                Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

                 TITLE I--CONSUMER BANKRUPTCY PROVISIONS

                   Subtitle A--Needs-Based Bankruptcy

Sec. 101. Dismissal or conversion of a chapter 7 case.
Sec. 102. Debtor participation in credit counseling program.

             Subtitle B--Adequate Protections for Consumers

Sec. 111. Notice of alternatives.
Sec. 112. Debtor financial management training test program.
Sec. 113. Definitions.
Sec. 114. Disclosures.
Sec. 115. Debtor's bill of rights.
Sec. 116. Enforcement.
Sec. 117. Sense of the Congress.
Sec. 118. Charitable contributions.
Sec. 119. Reinforce the fresh start.
Sec. 119A. Chapter 11 discharge of debts arising from tobacco-related 
          debts.

         Subtitle C--Adequate Protections for Secured Creditors

Sec. 121. Discouraging bad faith repeat filings.
Sec. 122. Definition of household goods.
Sec. 123. Debtor retention of personal property security.
Sec. 124. Relief from stay when the debtor does not complete intended 
          surrender of consumer debt collateral.
Sec. 125. Giving secured creditors fair treatment in chapter 13.
Sec. 126. Prompt relief from stay in individual cases.
Sec. 127. Stopping abusive conversions from chapter 13.
Sec. 128. Restraining abusive purchases on secured credit.
Sec. 129. Fair valuation of collateral.
Sec. 130. Protection of holders of claims secured by debtor's principal 
          residence.
Sec. 131. Aircraft equipment and vessels.

        Subtitle D--Adequate Protections for Unsecured Creditors

Sec. 141. Fraudulent debts are nondischargeable in chapter 13 cases.
Sec. 142. Applying the codebtor stay only when it protects the debtor.
Sec. 143. Nondischargeability of certain debts for alimony, maintenance, 
          and support.
Sec. 144. Other exceptions to discharge.
Sec. 145. Fees arising from certain ownership interests.
Sec. 146. Adequate protection for investors.
Sec. 147. Super-priority for child and spousal support claims.
Sec. 148. Debts for alimony, maintenance, and support.
Sec. 149. Protection of child support and alimony.

              Subtitle E--Adequate Protections for Lessors

Sec. 161. Giving debtors the ability to keep leased personal property by 
          assumption.

   Subtitle F--Bankruptcy Relief Less Frequently Available for Repeat 
                                 Filers

Sec. 171. Extend period between bankruptcy discharges.

                         Subtitle G--Exemptions

Sec. 181. Exemptions.
Sec. 182. Limitation.
Sec. 183. Provide fair property exemptions and prevent high-rollers from 
          abusing the system.

                TITLE II--BUSINESS BANKRUPTCY PROVISIONS

                     Subtitle A--General Provisions

Sec. 201. Limitation relating to the use of fee examiners.
Sec. 202. Sharing of compensation.
Sec. 203. Chapter 12 made permanent law.
Sec. 204. Meetings of creditors and equity security holders.
Sec. 205. Creditors' and equity security holders' committees.
Sec. 206. Postpetition disclosure and solicitation.
Sec. 207. Preferences.
Sec. 208. Venue of certain proceedings.
Sec. 209. Cases ancillary to foreign proceedings involving foreign 
          insurance companies that are engaged in the business of 
          insurance or reinsurance in the United States.
Sec. 210. Period for filing plan under chapter 11.
Sec. 211. Unexpired leases of nonresidential real property.
Sec. 212. Definition of disinterested person.

                  Chapter 1--Small Business Bankruptcy

Sec. 231. Definitions.
Sec. 232. Flexible rules for disclosure statement and plan.
Sec. 233. Standard form disclosure statements and plans.
Sec. 234. Uniform national reporting requirements.
Sec. 235. Uniform reporting rules and forms.
Sec. 236. Duties in small business cases.
Sec. 237. Plan filing and confirmation deadlines.
Sec. 238. Plan confirmation deadline.
Sec. 239. Prohibition against extension of time.
Sec. 240. Duties of the United States trustee and bankruptcy 
          administrator.
Sec. 241. Scheduling conferences.
Sec. 242. Serial filer provisions.
Sec. 243. Expanded grounds for dismissal or conversion and appointment 
          of trustee.

                   Chapter 2--Single Asset Real Estate

Sec. 251. Single asset real estate defined.
Sec. 252. Payment of interest.

            Chapter 3--Conditional Application of Amendments

Sec. 291. Loss of jobs.

               TITLE III--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 301. Petition and proceedings related to petition.
Sec. 302. Applicability of other sections to chapter 9.

                   TITLE IV--BANKRUPTCY ADMINISTRATION

                     Subtitle A--General Provisions

Sec. 401. Adequate preparation time for creditors before the meeting of 
          creditors in individual cases.
Sec. 402. Creditor representation at first meeting of creditors.
Sec. 403. Filing proofs of claim.
Sec. 404. Audit procedures.
Sec. 405. Giving creditors fair notice in chapter 7 and 13 cases.
Sec. 406. Debtor to provide tax returns and other information.
Sec. 407. Dismissal for failure to file schedules timely or provide 
          required information.
Sec. 408. Adequate time to prepare for hearing on confirmation of the 
          plan.
Sec. 409. Sense of the Congress regarding expansion of rule 9011 of the 
          Federal rules of bankruptcy procedure.
Sec. 410. Jurisdiction of courts of appeals.
Sec. 411. Establishment of official forms.
Sec. 412. Elimination of certain fees payable in chapter 11 bankruptcy 
          cases.

                       Subtitle B--Data Provisions

Sec. 441. Improved bankruptcy statistics.
Sec. 442. Bankruptcy data.
Sec. 443. Sense of the Congress regarding availability of bankruptcy 
          data.

                         TITLE V--TAX PROVISIONS

Sec. 501. Treatment of certain liens.
Sec. 502. Enforcement of child and spousal support.
Sec. 503. Effective notice to Government.
Sec. 504. Notice of request for a determination of taxes.
Sec. 505. Rate of interest on tax claims.
Sec. 506. Tolling of priority of tax claim time periods.
Sec. 507. Assessment defined.
Sec. 508. Chapter 13 discharge of fraudulent and other taxes.
Sec. 509. Chapter 11 discharge of fraudulent taxes.
Sec. 510. The stay of tax proceedings.
Sec. 511. Periodic payment of taxes in chapter 11 cases.
Sec. 512. The avoidance of statutory tax liens prohibited.
Sec. 513. Payment of taxes in the conduct of business.
Sec. 514. Tardily filed priority tax claims.
Sec. 515. Income tax returns prepared by tax authorities.
Sec. 516. The discharge of the estate's liability for unpaid taxes.
Sec. 517. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 518. Standards for tax disclosure.
Sec. 519. Setoff of tax refunds.

            TITLE VI--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 601. Amendment to add a chapter 6 to title 11, United States Code.
Sec. 602. Amendments to other chapters in title 11, United States Code.

                        TITLE VII--MISCELLANEOUS

Sec. 701. Technical amendments.
Sec. 702. Application of amendments.

                TITLE I--CONSUMER BANKRUPTCY PROVISIONS

                   Subtitle A--Needs-Based Bankruptcy

SEC. 101. DISMISSAL OR CONVERSION OF A CHAPTER 7 CASE.

  (a) Amendments to Chapter 7.--Section 707 of title 11, United 
States Code, is amended--
          (1) by amending the heading to read as follows:

``Sec. 707 Dismissal or conversion of case'';

          (2) by amending subsection (b) to read as follows:
  ``(b)(1) In a case filed by an individual debtor who has 
regular income and whose debts are primarily consumer debts, 
the court--
          ``(A) on its own motion, or on a motion by the United 
        States trustee or the trustee; or
          ``(B) on a motion filed by a party in interest, if 
        the household income with respect to the debtor during 
        the 1-year period ending on the date the case is 
        commenced exceeds the sum of $60,000 and $5,000 for 
        each household member exceeding 4, adjusted to reflect 
        the change in the Consumer Price Index for All Urban 
        Consumers, published by the Department of Labor, for 
        the period beginning on the 1st January 1 occurring 
        after the effective date of this subparagraph and 
        ending immediately before the most recent January 1 
        occurring before the commencement of the case;
and after notice and a hearing, shall dismiss the case, or 
convert the case with the consent of the debtor to a case under 
another chapter of this title, if the court finds that granting 
relief would be an abuse of the provisions of this chapter.
  ``(2) For purposes of paragraph (1)--
          ``(A) `an abuse of the provisions of this chapter' 
        means that--
                  ``(i)(I) the debtor has, and is expected to 
                have, disposable income that is sufficient, 
                after paying allowed claims (whether secured or 
                unsecured) for a debt secured only by the 
                principal residence of the debtor, allowed 
                secured claims, claims that have priority under 
                section 507 of this title, allowed unsecured 
                claims arising under not more than 1 motor 
                vehicle lease in effect on the date the case is 
                commenced, and debts arising in the 3-year 
                period beginning on such date under not more 
                than 1 motor vehicle lease in effect on the 
                such date, to pay during such 3-year period not 
                less than 30 percent of the aggregate amount of 
                the remaining allowed unsecured claims; and
                  ``(II) household income received with respect 
                to the debtor during the 1-year period ending 
                on the date the case is commenced exceeds the 
                sum of $40,000 and $5,000 for each household 
                member exceeding 2, adjusted to reflect the 
                change in the Consumer Price Index for All 
                Urban Consumers, published by the Department of 
                Labor, for the period beginning on the 1st 
                January 1 occurring after the effective date of 
                this subparagraph and ending immediately before 
                the most recent January 1 occurring before the 
                commencement of the case; or
                  ``(ii) the debtor commenced a case under this 
                chapter, or converted a case to a case under 
                this chapter, in bad faith;
          ``(B) `disposable income' means income that is 
        received by the debtor and that is not reasonably 
        necessary to be expended for the maintenance or support 
        of the debtor or a dependent of the debtor;
          ``(C) `household income' means--
                  ``(i) in an individual case, the sum of--
                          ``(I) the debtor's income; and
                          ``(II) the income of any other 
                        household member of the debtor; and
                  ``(ii) in a joint case, the sum of--
                          ``(I) the debtor's income;
                          ``(II) the income of the debtor's 
                        spouse; and
                          ``(III) the income of any other 
                        household member of the debtor or of 
                        the debtor's spouse;
          ``(D) `household member' means--
                  ``(i) the debtor;
                  ``(ii) the debtor's spouse if the debtor's 
                spouse maintains a common principal residence 
                with the debtor on the date the case is 
                commenced; or
                  ``(iii) a relative (by affinity, 
                consanguinity, or adoption) of the debtor or 
                the debtor's spouse who--
                          ``(I) maintains a common principal 
                        residence with the debtor on the date 
                        the case is commenced; and
                          ``(II) is dependent on the debtor, or 
                        on the debtors' spouse if the debtor's 
                        spouse maintains a common principal 
                        residence with the debtor on the date 
                        the case is commenced, for 
                        substantially all financial support 
                        during the 180-day period ending on the 
                        date the case is commenced.
  ``(3) Except as provided in paragraph (2)(C), this subsection 
shall apply jointly to debtors in a joint case.''; and
          (3) by adding at the end the following:
  ``(c) If the court denies a motion filed under this section 
by a party in interest, the court shall award to the debtor--
          ``(1) costs and a reasonable attorney's fee incurred 
        by the debtor to oppose the motion; and
          ``(2) damages of not less than $5000;
unless the position of such party in interest is substantially 
justified.''.

SEC. 102. DEBTOR PARTICIPATION IN CREDIT COUNSELING PROGRAM.

  (a) Who May Be a Debtor.--Section 109 of title 11, United 
States Code is amended by adding at the end the following:
  ``(i)(1) Subject to paragraph (2) and notwithstanding any 
other provision of this section, an individual may not be a 
debtor under this title unless such individual has, during the 
90-day period preceding the date of filing of the petition, 
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 342(b)(2) that has been approved by--
          ``(A) the United States trustee; or
          ``(B) the bankruptcy administrator for the district 
        in which the petition is filed.
  ``(2) The United States trustee or bankruptcy administrator 
may not approve a program for inclusion on the list under 
paragraph (1) unless the counseling service offering the 
program offers the program without charge, or at an 
appropriately reduced charge, if payment of the regular charge 
would impose a hardship on the debtor or the debtor's 
dependents.
  ``(3) The United States trustee or bankruptcy administrator 
shall designate any geographical areas in the United States 
trustee region or judicial district, as the case may be, as to 
which the United States trustee or bankruptcy administrator has 
determined that credit counseling services needed to comply 
with this subsection are not available or are too 
geographically remote for debtors residing within the 
designated geographical areas. The clerk of the bankruptcy 
court for each judicial district shall maintain a list of the 
designated areas within the district.
  ``(4) The clerk shall exclude a particular counseling service 
from the list maintained under section 342(b)(2) of this title 
if the United States trustee or bankruptcy administrator orders 
that the counseling service not be included in the list.
  ``(5) The court may waive the requirement specified in 
paragraph (1) if--
          ``(A) no credit counseling services are available as 
        designated under paragraphs (2) and (3);
          ``(B) the providers of credit counseling services 
        available in the district are unable or unwilling 
toprovide such services to the debtor in a timely manner; or
          ``(C) foreclosure, garnishment, attachment, eviction, 
        levy of execution, utility termination, repossession, 
        or similar claim enforcement procedure that would have 
        deprived the individual of property had commenced or 
        threatened to commence before the debtor could complete 
        a good-faith attempt to create such a repayment plan.
  ``(6) A debtor who is subject to the exemption under 
paragraph (5)(C) shall be required to make a good-faith attempt 
to create a debt repayment plan outside the judicial system in 
the manner prescribed in paragraph (1) during the 30-day period 
beginning on the date of filing of the petition of that debtor.
  ``(7) A debtor shall be exempted from the bad faith 
presumption for repeat filing under section 362(c) of title 11 
if the case is dismissed due to the creation of a debt 
repayment plan.
  ``(8) Only the United States trustee may make a motion for 
dismissal on the ground that the debtor did not comply with 
this subsection.''.
  (b) Debtor's Duties.--Section 521 of title 11, United States 
Code, as amended by sections 406 and 407, is amended by adding 
at the end the following:
  ``(g)(1) In addition to the requirements under subsection 
(a), an individual debtor shall file with the court--
          ``(A) a certificate from the credit counseling 
        services that provided the debtor services under 
        section 109(i), or a verified statement as to why such 
        attempt was not required under section 109(i) 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(i); and
          ``(B) a copy of the debt repayment plan, if any, 
        developed under section 109(i) through the credit 
        counseling service referred to in paragraph (1).
  ``(2) Only the United States trustee may make a motion for 
dismissal on the ground that the debtor did not comply with 
this subsection.''.

             Subtitle B--Adequate Protections for Consumers

SEC. 111. NOTICE OF ALTERNATIVES.

  (a) Section 342(b) of title 11, United States Code, is 
amended to read as follows:
  ``(b)(1) Before the commencement of a case under this title 
by an individual whose debts are primarily consumer debts, the 
individual shall be given or obtain (as required to be 
certified under section 521(a)(1)(B)(viii)) a written notice 
that is prescribed by the United States trustee for the 
district in which the petition is filed pursuant to section 586 
of title 28 and that contains the following:
          ``(A) A brief description of chapters 7, 11, 12 and 
        13 of this title and the general purpose, benefits, and 
        costs of proceeding under each of such chapters.
          ``(B) A brief description of services that may be 
        available to the individual from an independent 
        nonprofit debt counselling service.
          ``(C) The name, address, and telephone number of each 
        nonprofit debt counselling service (if any)--
                  ``(i)(I) with an office located in the 
                district in which the petition is filed; or
                  ``(ii)(II) that offers toll-free telephone 
                communication to debtors in such district; and
                  ``(ii) that provides such service without 
                charge or on an appropriate reduced fee basis.
  ``(2) Any such nonprofit debt counselling service that 
registers with the clerk of the bankruptcy court on or before 
December 10 of the preceding year shall be included in such 
list unless the chief bankruptcy judge of the district, after 
notice to the debt counselling service and the United States 
trustee and opportunity for a hearing, for good cause, orders 
that such debt counselling service shall not be so listed.
  ``(3) The clerk shall make such notice available to 
individuals whose debts are primarily consumer debts.
          ``(4) The United States trustee may file a motion 
        with the bankruptcy court to request the removal of any 
        debt counseling service from such list.''.
  (b) 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 within 30 days of any change in the nonprofit 
        debt counselling services registered with the 
        bankruptcy court, prescribe and make available on 
        request the notice described in section 342(b)(1) of 
        title 11 for each district included in the region.''.

SEC. 112. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

  (a) Development of Financial Management and Training 
Curriculum and Materials.--The Director of the Executive Office 
for United States Trustees (in this section referred to as the 
``Director'') shall consult with a wide range of individuals 
who are experts in the field of debtor education, including 
trustees who are appointed under chapter 13 of title 11 of the 
United States Code and who operate financial management 
education programs for debtors, and shall develop a financial 
management training curriculum and materials that can be used 
to educate individual debtors on how to better manage their 
finances.
  (b) Test.--(1) The Director shall select 3 judicial districts 
of the United States in which to test the effectiveness of the 
financial management training curriculum and materials 
developed under subsection (a).
  (2) For a 1-year period beginning not later than 180 days 
after the date of the enactment of this Act, such curriculum 
and materials shall be made available by the Director, directly 
or indirectly, on request to individual debtors in cases filed 
in such 1-year period under chapter 7 or 13 of title 11 of the 
United States Code.
  (3) The bankruptcy courts in each of such districts may 
require individual debtors in such cases to undergo such 
financial management training as a condition to receiving a 
discharge in such case.
  (c) Evaluation.--(1) During the 1-year period referred to in 
subsection (b), the Director shall evaluate the effectiveness 
of--
          (A) the financial management training curriculum and 
        materials developed under subsection (a); and
          (B) a sample of existing consumer education programs 
        such as those described in the Report of the National 
        Bankruptcy Review Commission (October 20, 1997) that 
        are representative of consumer education programs 
        carried out by the credit industry, by trustees serving 
        under chapter 13 of title 11 of the United States Code, 
        and by consumer counselling groups.
  (2) Not later than 3 months after concluding such evaluation, 
the Director shall submit a report to the Speaker of the House 
of Representatives and the President pro tempore of the Senate, 
for referral to the appropriate committees of the Congress, 
containing the findings of the Director regarding the 
effectiveness of such curriculum, such materials, and such 
programs.

SEC. 113. DEFINITIONS.

  (a) Definitions.--Section 101 of title 11, United States 
Code, is amended--
          (1) by inserting after paragraph (3) the following:
          ``(3A) `assisted person' means any person whose debts 
        consist primarily of consumer debts and whose non-
        exempt assets are less than $150,000;'';
          (2) by inserting after paragraph (4) the following:
          ``(4A) `bankruptcy assistance' means any goods or 
        services sold or otherwise provided to an assisted 
        person with the express or implied purpose of providing 
        information, advice, counsel, document preparation or 
        filing, or attendance at a creditors' meeting or 
        appearing in a proceeding on behalf of another or 
        providing legal representation with respect to a 
        proceeding under this title;''; and
          (3) by inserting after paragraph (12A) the following:
          ``(12B) `debt relief counselling agency' means any 
        person who provides any bankruptcy assistance to an 
        assisted person in return for the payment of money or 
        other valuable consideration, or who is a bankruptcy 
        petition preparer pursuant to section 110 of this 
        title, but does not include any person that is any of 
        the following or an officer, director, employee or 
        agent thereof--
                  ``(A) any nonprofit organization which is 
                exempt from taxation under section 501(c)(3) of 
                the Internal Revenue Code of 1986;
                  ``(B) any creditor of the person to the 
                extent the creditor is assisting the person to 
                restructure any debt owed by the person to the 
                creditor; or
                  ``(C) any depository institution (as defined 
                in section 3 of the Federal Deposit Insurance 
                Act) or any Federal credit union or State 
                credit union (as those terms are defined in 
                section 101 of the Federal Credit Union Act), 
                or any affiliate or subsidiary of such a 
                depository institution or credit union;''.
  (b) Conforming Amendment.--In section 104(b)(1) by inserting 
``101(3),'' after ``sections''.

SEC. 114. DISCLOSURES.

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

``Sec. 526. Disclosures

  ``(a) A debt relief counselling agency providing bankruptcy 
assistance to an assisted person shall provide the following 
notices to the assisted person:
          ``(1) the written notice required under section 
        342(b)(1) of this title; and
          ``(2) to the extent not covered in the written notice 
        described in paragraph (1) of this section and no later 
        than three business days after the first date on which 
        a debt relief counselling agency first offers to 
        provide any bankruptcy assistance services to an 
        assisted person, a clear and conspicuous written notice 
        advising assisted persons of the following--
                  ``(A) all information the assisted person is 
                required to provide with a petition and 
                thereafter during a case under this title must 
                be complete, accurate and truthful;
                  ``(B) all assets and all liabilities must be 
                completely and accurately disclosed in the 
                documents filed to commence the case, and the 
                value of each asset as defined in section 506 
                of this title must be stated in those documents 
                where requested after reasonable inquiry to 
                establish such value;
                  ``(C) household income, and, in a chapter 13 
                case, disposable income, must be stated after 
                reasonable inquiry; and
                  ``(D) that information an assisted person 
                provides during their case may be audited 
                pursuant to this title and that failure to 
                provide such information may result in 
                dismissal of the proceeding under this title or 
                other sanction including, in some instances, 
                criminal sanctions.
  ``(b) A debt relief counselling agency providing bankruptcy 
assistance to an assisted person shall provide each assisted 
person at the same time as the notices required under 
subsection (a)(1) with the following statement, to the extent 
applicable, or one substantially similar. The statement shall 
be clear and conspicuous and shall be in a single document 
separate from other documents or notices provided to the 
assisted person:
  `` `IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE 
SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER
  `` `If you decide to seek bankruptcy relief, you can 
represent yourself, you can hire an attorney to represent you, 
or you can get help in some localities from a bankruptcy 
petition preparer who is not an attorney. THE LAW REQUIRES AN 
ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN 
CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION 
PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see 
the contract before you hire anyone.
  `` `The following information helps you understand what must 
be done in a routine bankruptcy case to help you evaluate how 
much service you need. Although bankruptcy can be complex, many 
cases are routine.
  `` `Before filing a bankruptcy case, either you or your 
attorney should analyze your eligibility for different forms of 
debt relief made available by the Bankruptcy Code and which 
form of relief is most likely to be beneficial for you. Be sure 
you understand the relief you can obtain and its limitations. 
To file a bankruptcy case, documents called a Petition, 
Schedules and Statement of Financial Affairs, as well as in 
some cases a Statement of Intention need to be prepared 
correctly and filed with the bankruptcy court. You will have to 
pay a filing fee to the bankruptcy court. Once your case 
starts, you will have to attend the required first meeting of 
creditors where you may be questioned by a court official 
called a ``trustee'' and by creditors.
  `` `If you select a chapter 7 proceeding, you may be asked by 
a creditor to reaffirm a debt. You may want help deciding 
whether to do so.
  `` `If you select a chapter 13 proceeding in which you repay 
your creditors what you can afford over three to seven years, 
you may also want help with preparing your chapter 13 plan and 
with the confirmation hearing on your plan which will be before 
a bankruptcy judge.'
  `` `If you select another type of proceeding under the 
Bankruptcy Code other than chapter 7 or chapter 13, you will 
want to find out what needs to be done from someone familiar 
with that type of proceeding.
  `` `Your bankruptcy proceeding may also involve litigation. 
You are generally permitted to represent yourself in litigation 
in bankruptcy court, but only attorneys, not bankruptcy 
petition preparers, can represent you in litigation.'.
  ``(c) Except to the extent the debt relief counselling agency 
provides the required information itself after reasonably 
diligent inquiry of the assisted person or others so as to 
obtain such information reasonably accurately for inclusion on 
the petition, schedules or statement of financial affairs, a 
debt relief counselling agency providing bankruptcy assistance 
to an assisted person, to the extent authorized by applicable 
nonbankruptcy law, shall provide each assisted person at the 
time required for the notice required under subsection (a)(1) 
reasonably sufficient information (which may be provided orally 
or in a clear and conspicuous writing) to the assisted person 
on how to provide all the information the assisted person is 
required to provide under this title pursuant to section 521, 
including--
          ``(1) how to value assets at replacement value, 
        determine household income and, in a chapter 13 case, 
        disposable income, and related calculations;
          ``(2) how to complete the list of creditors, 
        including how to determine what amount is owed and what 
        address for the creditor should be shown;
          ``(3) how to determine what property is exempt and 
        how to value exempt property as defined in section 506 
        of this title; and
          ``(4) a clear and conspicuous statement that an 
        employee of such service may not provide legal advice 
        unless such employee is an attorney.
  ``(d) A debt relief counselling agency shall maintain a copy 
of the notices required under subsection (a) of this section 
for two years after the later of the date on which the notice 
is given the assisted person.''.
  (b) Conforming Amendment.--The table of section for chapter 5 
of title 11, United States Code, is amended by inserting after 
the item relating to section 525 the following:

``526. Disclosures.''.

SEC. 115. DEBTOR'S BILL OF RIGHTS.

  (a) Debtor's Bill of Rights.--Subchapter II of chapter 5 of 
title 11, United States Code, as amended by section 114, is 
amended by adding at the end the following:

``Sec. 527. Debtor's bill of rights

  ``(a) A debt relief counselling agency shall--
          ``(1) no later than three business days after the 
        first date on which a debt relief counselling agency 
        provides any bankruptcy assistance services to an 
        assisted person, execute a written contract with the 
        assisted person specifying clearly and conspicuously 
        the services the agency will provide the assisted 
        person and the basis on which fees or charges will be 
        made for such services and the terms of payment, and 
        give the assisted person a copy of the fully executed 
        and completed contract in a form the person can keep;
          ``(2) disclose in any advertisement of bankruptcy 
        assistance services or of the benefits of bankruptcy 
        directed to the general public (whether in general 
        media, seminars or specific mailings, telephonic or 
        electronic messages or otherwise) that the services or 
        benefits are with respect to proceedings under this 
        title, clearly and conspicuously using the following 
        statement: `We are a debt relief counselling agency. We 
        help people file Bankruptcy petitions to obtain relief 
        under the Bankruptcy Code.' or a substantially similar 
        statement. An advertisement shall be of bankruptcy 
        assistance services if it describes or offers 
        bankruptcy assistance with a chapter 13 plan, 
        regardless of whether chapter 13 is specifically 
        mentioned, including such statements as `federally 
        supervised repayment plan' or `Federal debt 
        restructuring help' or other similar statements which 
        would lead a reasonable consumer to believe that help 
        with debts was being offered when in fact in most cases 
        the help available is bankruptcy assistance with a 
        chapter 13 plan; and
          ``(3) if an advertisement directed to the general 
        public indicates that the debt relief counselling 
        agency provides assistance with respect to credit 
        defaults, mortgage foreclosures, lease eviction 
        proceedings, excessive debt, debt collection pressure, 
        or inability to pay any consumer debt, disclose 
        conspicuously in that advertisement that the assistance 
        is with respect to or may involve proceedings under 
        this title, using the following statement: ``We are a 
        debt relief counselling agency. We help people file 
        Bankruptcy petitions to obtain relief under the 
        Bankruptcy Code.'' or a substantially similar 
        statement.
  ``(b) A debt relief counselling agency shall not--
          ``(1) fail to perform any service which the debt 
        relief counseling agency has told the assisted person 
        or prospective assisted person the agency would provide 
        that person in connection with the preparation for or 
        activities during a proceeding under this title;
          ``(2) make any statement, or counsel or advise any 
        assisted person to make any statement in any document 
        filed in a proceeding under this title, which is untrue 
        or misleading and which upon the exercise of reasonable 
        care, should be known by the debt relief counselling 
        agency to be untrue or misleading;
          ``(3) misrepresent to any assisted person or 
        prospective assisted person, directly or indirectly, 
        affirmatively or by material omission, what services 
        the debt relief counselling agency can reasonably 
        expect to provide that person, or the benefits an 
        assisted person may obtain or the difficulties the 
        person may experience if the person seeks relief in a 
        proceeding pursuant to this title; or
          ``(4) advise an assisted person or prospective 
        assisted person to incur more debt in contemplation of 
        that person filing a proceeding under this title or in 
        order to pay an attorney or bankruptcy petition 
        preparer fee or charge for services performed as part 
        of preparing for or representing a debtor in a 
        proceeding under this title.''.
  (b) Conforming Amendment.--The table of sections for chapter 
5 of title 11, United States Code, as amended by section 114, 
is amended by inserting after the item relating to section 526, 
the following:

``527. Debtor's bill of rights.''.

SEC. 116. ENFORCEMENT.

  (a) Enforcement.--Subchapter II of chapter 5 of title 11, 
United States Code, as amended by sections 114 and 115, is 
amended by adding at the end the following:

``Sec. 528. Debt relief counselling agency enforcement

  ``(a) Assisted Person Waivers Invalid.--Any waiver by any 
assisted person of any protection or right provided by or under 
section 526 or 527 of this title shall be void and may not be 
enforced by any Federal or State court or any other person.
  ``(b) Noncompliance.--
          ``(1) Any contract between a debt relief counselling 
        agency and an assisted person for bankruptcy assistance 
        which does not comply with the requirements of section 
        526 or 527 of this title shall be treated as void and 
        may not be enforced by any Federal or State court or by 
        any other person.
          ``(2) Any debt relief counselling agency which has 
        been found, after notice and hearing, to have--
                  ``(A) failed to comply with any provision of 
                section 526 or 527 with respect to a bankruptcy 
                case or related proceeding of an assisted 
                person; or
                  ``(B) negligently or intentionally 
                disregarded the requirements of this title or 
                the Federal Rules of Bankruptcy Procedure 
                applicable to such debt relief counselling 
                agency shall be liable to the assisted person 
                in the amount of any fees and charges in 
                connection with providing bankruptcy assistance 
                to such person which the debt relief 
                counselling agency has already been paid on 
                account of that proceeding and if the case has 
                not been closed, the court may in addition 
                require the debt relief counselling agency to 
                continue to provide bankruptcy assistance 
                services in the pending case to the assisted 
                person without further fee or charge or upon 
                such other terms as the court may order.
          ``(3) In addition to such other remedies as are 
        provided under State law, whenever the chief law 
        enforcement officer of a State, or an official or 
        agency designated by a State, has reason to believe 
        that any person has violated or is violating section 
        526 or 527 of this title, the State--
                  ``(A) may bring an action to enjoin such 
                violation;
                  ``(B) may bring an action on behalf of its 
                residents to recover the actual damages of 
                assisted persons arising from such violation, 
                including any liability under paragraph (2); 
                and
                  ``(C) in the case of any successful action 
                under subparagraph (A) or (B), shall be awarded 
                the costs of the action and reasonable attorney 
                fees as determined by the court.
          ``(4) The United States District Court for any 
        district located in the State shall have concurrent 
        jurisdiction of any action under subparagraph (A) or 
        (B) of paragraph (3).
          ``(5) The rights and remedies provided in this 
        section are in addition to any rights and remedies 
        provided under any other provision of Federal law.
  ``(c) Relation to State Law.--This section and sections 526 
and 527 shall not annul, alter, affect or exempt any person 
subject to those sections from complying with any law of any 
State.''.
  (b) Conforming Amendment.--The table of sections for chapter 
5 of title 11, United States Code, as amended by sections 114 
and 115, is amended by inserting after the item relating to 
section 527, the following:

``528. Debt relief counselling agency enforcement.''.

SEC. 117. SENSE OF THE CONGRESS.

  It is the sense of the Congress that States should develop 
curricula relating to the subject of personal finance, designed 
for use in elementary and secondary schools.

SEC. 118. CHARITABLE CONTRIBUTIONS.

  (a) Definitions.--Section 548(d) of title 11, United States 
Code, is amended by adding at the end the following:
  ``(3) In this section, the term `charitable contribution' 
means a charitable contribution, as that term is defined in 
section 170(c) of the Internal Revenue Code of 1986, if that 
contribution--
          ``(A) is made by a natural person; and
          ``(B) consists of--
                  ``(i) a financial instrument (as that term is 
                defined in section 731(c)(2)(C) of the Internal 
                Revenue Code of 1986); or
                  ``(ii) cash.
  ``(4) In this section, the term `qualified religious or 
charitable entity or organization' means--
          ``(A) an entity described in section 170(c)(1) of the 
        Internal Revenue Code of 1986; or
          ``(B) an entity or organization described in section 
        170(c)(2) of the Internal Revenue Code of 1986.''.
  (b) Treatment of Prepetition Qualified Charitable 
Contributions.--
          (1) In general.--Section 548(a) of title 11, United 
        States Code, is amended--
                  (A) by inserting ``(1)'' after ``(a)'';
                  (B) by striking ``(1) made'' and inserting 
                ``(A) made'';
                  (C) by striking ``(2)(A)'' and inserting 
                ``(B)(i)'';
                  (D) by striking ``(B)(i)'' and inserting 
                ``(ii)(I)'';
                  (E) by striking ``(ii) was'' and inserting 
                ``(II) was'';
                  (F) by striking ``(iii)'' and inserting 
                ``(III)''; and
                  (G) by adding at the end the following:
  ``(2) A transfer of a charitable contribution to a qualified 
religious or charitable entity or organization shall not be 
considered to be a transfer covered under paragraph (1)(B) in 
any case in which--
          ``(A) the aggregate annual amount of all 
        contributions to qualified religious or charitable 
        entities or organizations does not exceed 15 percent of 
        the gross annual income of the debtor for the year in 
        which the transfer of the contribution is made; or
          ``(B) the contribution made by a debtor exceeded the 
        maximum amount specified in subparagraph (A), but the 
        transfer was consistent with the practices of the 
        debtor in making charitable contributions.''.
          (2) Trustee as lien creditor and as successor to 
        certain creditors and purchasers.--Section 544(b) of 
        title 11, United States Code, is amended--
                  (A) by striking ``(b) The trustee'' and 
                inserting ``(b)(1) Except as provided in 
                paragraph (2), the trustee''; and
                  (B) by adding at the end the following:
  ``(2) Paragraph (1) shall not apply to a transfer of a 
charitable contribution (as that term is defined in section 
548(d)(3)) that is not covered under section 548(a)(1)(B), by 
reason of section 548(a)(2). Any claim by any person to recover 
a transferred contribution described in the preceding sentence 
under Federal or State law in a Federal or State court shall be 
preempted by the commencement of the case.''.
          (3) Conforming amendments.--Section 546 of title 11, 
        United States Code, is amended--
                  (A) in subsection (e)--
                          (i) by striking ``548(a)(2)'' and 
                        inserting ``548(a)(1)(B)''; and
                          (ii) by striking ``548(a)(1)'' and 
                        inserting ``548(a)(1)(A)'';
                  (B) in subsection (f)--
                          (i) by striking ``548(a)(2)'' and 
                        inserting ``548(a)(1)(B)''; and
                          (ii) by striking ``548(a)(1)'' and 
                        inserting ``548(a)(1)(A)''; and
                  (C) in subsection (g)--
                          (i) by striking ``section 548(a)(1)'' 
                        each place it appears and inserting 
                        ``section 548(a)(1)(A)''; and
                          (ii) by striking ``548(a)(2)'' and 
                        inserting ``548(a)(1)(B)''.
  (d) Treatment of postpetition charitable contributions.--
          (1) Confirmation of chapter 13 plan.--Section 
        1325(b)(2)(A) of title 11, United States Code, is 
        amended by inserting before the semicolon the 
        following: ``, including charitable contributions (that 
        meet the definition of `charitable contribution' under 
        section 548(d)(3)) to a qualified religious or 
        charitable entity or organization (as that term is 
        defined in section 548(d)(4)) in an amount not to 
        exceed 15 percent of the gross income of the debtor for 
        the year in which the contributions are made''.
          (2) Dismissal of chapter 7 case.--Section 707(b) of 
        title 11, United States Code, is amended by adding at 
        the end the following: ``In making a determination 
        whether to dismiss a case under this section, the court 
        may not take into consideration whether a debtor has 
        made, or continues to make, charitable contributions 
        (that meet the definition of `charitable contribution' 
        under section 548(d)(3)) to any qualified religious or 
        charitable entity or organization (as that term is 
        defined in section 548(d)(4)).''.
          (3) Contents of chapter 11 plan.--Section 1123 of 
        title 11, United States Code, is amended by adding at 
        the end the following:
  ``(e) In a case concerning an individual, the plan may 
provide for charitable contributions (as defined in section 
548(d)(3) of this title) to a qualified religious or charitable 
entity or organization (as defined in section 548(d)(4) of this 
title) in an aggregate annual amount not to exceed 15 percent 
of the gross income of the debtor for the year in which such 
contributions are made.''.
          (4) Confirmation of chapter 12 plan.--Section 
        1225(b)(2) of title 11, United States Code, is 
        amended--
                  (A) in subparagraph (A) by striking ``or'' at 
                the end;
                  (B) in subparagraph (B) by striking the 
                period at the end and inserting ``; or''; and
                  (C) by inserting adding at the end the 
                following
          ``(C) for charitable contributions (as defined in 
        section 548(d)(3) of this title) to a qualified 
        religious or charitable entity or organization (as 
        defined in section 548(d)(4) of this title) in an 
        aggregate annual amount not to exceed 15 percent of the 
        gross income of the debtor for the year in which such 
        contributions are made.''.
  (e) Applicability.--
  This section and the amendments made by this section shall 
apply to any case brought under an applicable provision of 
title 11, United States Code, that is pending or commenced on 
or after the date of enactment of this Act.
  (f) Rule of Construction.--
  Nothing in the amendments made by this section is intended to 
limit the applicability of the Religious Freedom Restoration 
Act of 1993 (42 U.S.C. 2002bb et seq.).

SEC. 119. REINFORCE THE FRESH START.

  (a) Restoration of an Effective Discharge.--Section 
523(a)(17) of title 11, United States Code, is amended--
          (1) by striking ``by a court'' and inserting ``on a 
        prisoner by any court'',
          (2) by striking ``section 1915(b) or (f)'' and 
        inserting ``subsection (b) or (f)(2) of section 1915'', 
        and
          (3) by inserting ``(or a similar non-Federal law)'' 
        after ``title 28'' each place it appears.
  (b) Protection of Retirement Funds in Bankruptcy.--Section 
522 of title 11, United States Code, is amended--
          (1) in subsection (b)(2)--
                  (A) in subparagraph (A) by striking ``and'' 
                at the end;
                  (B) in subparagraph (B) by striking the 
                period at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(C) retirement funds to the extent exempt from 
        taxation under section 401, 403, 408, 414, 457, or 
        501(a) of the Internal Revenue Code of 1986.''; and
          (2) in subsection (d) by adding at the end the 
        following:
          ``(12) Retirement funds to the extent exempt from 
        taxation under 401, 403, 408, 414, 457, or 501(a) of 
        the Internal Revenue Code of 1986.''.
  (c) Effective Protection for Utility Service in the Wake of 
Deregulation.--Section 366 of title 11, United States Code, is 
amended by adding at the end the following:
  ``(c) For the purposes of this section, the term `utility' 
includes any provider of gas, electric, telephone, 
telecommunication, cable television, satellite communication, 
water, or sewer service, whether or not such service is a 
regulated monopoly.''.

SEC. 119A. CHAPTER 11 DISCHARGE OF DEBTS ARISING FROM TOBACCO-RELATED 
                    DEBTS.

  Section 1141(d) of title 11, United States Code, is amended 
by adding at the end the following:
  ``(5) The confirmation of a plan does not discharge a debtor 
that is a corporation from any debt arising from a judicial, 
administrative, or other action or proceeding that is--
          ``(A) related to the consumption or consumer purchase 
        of a tobacco product; and
          ``(B) based in whole or in part on false pretenses, a 
        false representation, or actual fraud.''.

         Subtitle C--Adequate Protections for Secured Creditors

SEC. 121. DISCOURAGING BAD FAITH REPEAT FILINGS.

  Section 362(c) of title 11, United States Code, is amended--
          (1) in paragraph (1) by striking ``and'' at the end;
          (2) in paragraph (2) by striking the period at the 
        end and inserting a semicolon; and
          (3) by adding at the end the following new 
        paragraphs:
          ``(3) If a single or joint case is filed by or 
        against an individual debtor under chapter 7, 11, or 
        13, and if a single or joint case of that debtor was 
        pending within the previous 1-year period but was 
        dismissed, other than a case refiled under a chapter 
        other than chapter 7 after dismissal under section 
        707(b) of this title, 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 will terminate with respect to the debtor on the 
        30th day after the filing of the later case. If a party 
        in interest requests, the court may extend the stay in 
        particular cases as to any or all creditors (subject to 
        such conditions or limitations as the court may then 
        impose) after notice and a hearing completed before the 
        expiration of the 30-day period only if the party in 
        interest demonstrates that the filing of the later case 
        is in good faith as to the creditors to be stayed. A 
        case is presumptively filed not in good faith (but such 
        presumption may be rebutted by clear and convincing 
        evidence to the contrary)--
                  ``(A) as to all creditors if--
                          ``(i) more than 1 previous case under 
                        any of chapters 7, 11, or 13 in which 
                        the individual was a debtor was pending 
                        within such 1-year period;
                          ``(ii) a previous case under any of 
                        chapters 7, 11, or 13 in which the 
                        individual was a debtor was dismissed 
                        within such 1-year period, after the 
                        debtor failed to file or amend the 
                        petition or other documents as required 
                        by this title or the court without 
                        substantial excuse (but mere 
                        inadvertence or negligence shall not be 
                        substantial excuse unless the dismissal 
                        was caused by the negligence of the 
                        debtor's attorney), failed to provide 
                        adequate protection as ordered by the 
                        court, or failed to perform the terms 
                        of a plan confirmed by the court; or
                          ``(iii) there has not been a 
                        substantial change in the financial or 
                        personal affairs of the debtor since 
                        the dismissal of the next most previous 
                        case under any of chapters 7, 11, or 13 
                        of this title, or any other reason to 
                        conclude that the later case will be 
                        concluded, if a case under chapter 7 of 
                        this title, with a discharge, and if a 
                        chapter 11 or 13 case, a confirmed plan 
                        which will be fully performed;
                  ``(B) as to any creditor that commenced an 
                action under subsection (d) in a previous case 
                in which the individual was a debtor if, as of 
                the date of dismissal of that case, that action 
                was still pending or had been resolved by 
                terminating, conditioning, or limiting the stay 
                as to actions of that creditor.
          ``(4) If a single or joint case is filed by or 
        against an individual debtor under this title, and if 2 
        or more single or joint cases of that debtor were 
        pending within the previous year but were dismissed, 
        other than a case refiled under section 707(b) of this 
        title, the stay under subsection (a) will not go into 
        effect upon the filing of the later case. On request of 
        a party in interest, the court shall promptly enter an 
        order confirming that no stay is in effect. If a party 
        in interest requests within 30 days of the filing of 
        the later case, the court may order the stay to take 
        effect in the case as to any or all creditors (subject 
        to such conditions or limitations as the court may 
        impose), after notice and hearing, only if the party in 
        interest demonstrates that the filing of the later case 
        is in good faith as to the creditors to be stayed. A 
        stay imposed pursuant to the preceding sentence will be 
        effective on the date of entry of the order allowing 
        the stay to go into effect. A case is presumptively not 
        filed in good faith (but such presumption may be 
        rebutted by clear and convincing evidence to the 
        contrary)--
                  ``(A) as to all creditors if--
                          ``(i) 2 or more previous cases under 
                        this title in which the individual was 
                        a debtor were pending within the 1-year 
                        period;
                          ``(ii) a previous case under this 
                        title in which the individual was a 
                        debtor was dismissed within the time 
                        period stated in this paragraph after 
                        the debtor failed to file or amend the 
                        petition or other documents as required 
                        by this title or the court without 
                        substantial excuse (but mere 
                        inadvertence or negligence shall not be 
                        substantial excuse unless the dismissal 
                        was caused by the negligence of the 
                        debtor's attorney), failed to pay 
                        adequate protection as ordered by the 
                        court, or failed to perform the terms 
                        of a plan confirmed by the court; or
                          ``(iii) there has not been a 
                        substantial change in the financial or 
                        personal affairs of the debtor since 
                        the dismissal of the next most previous 
                        case under this title, or any other 
                        reason to conclude that the later case 
                        will not be concluded, if a case under 
                        chapter 7, with a discharge, and if a 
                        case under chapter 11 or 13, with a 
                        confirmed plan that will be fully 
                        performed; or
                  ``(B) as to any creditor that commenced an 
                action under subsection (d) in a previous case 
                in which the individual was a debtor if, as of 
                the date of dismissal of that case, that action 
                was still pending or had been resolved by 
                terminating, conditioning, or limiting the stay 
                as to action 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 such request is 
        granted in whole or in part, the court may order in 
        addition that the relief so granted shall be in rem 
        either for a definite period not less than 1 year or 
        indefinitely. After the issuance of such an order, the 
        stay under subsection (a) shall not apply to any 
        property subject to such an in rem order in any case of 
        the debtor under this title. If such an order so 
        provides, such stay shall also not apply in any pending 
        or later-filed case of any entity under this title that 
        claims or has an interest in the subject property other 
        than those entities identified in the court's order.
          ``(B) The court shall cause any order entered 
        pursuant to this paragraph with respect to real 
        property to be recorded in the applicable real property 
        records, which recording shall constitute notice to all 
        parties having or claiming an interest in such real 
        property for purpose of this section.
          ``(6) For the purposes of this section, a case is 
        pending from the time of the order for relief until the 
        case is closed.''.

SEC. 122. DEFINITION OF HOUSEHOLD GOODS.

  Section 101 of title 11, United States Code, is amended by 
inserting after paragraph (27) the following:
          ``(27A) `household goods' has the meaning given such 
        term in the Trade Regulation Rule on Credit Practices 
        promulgated by the Federal Trade Commission (16 C.F.R. 
        444.1(i)), as in effect on the effective date of this 
        paragraph, but includes any tangible personal property 
        reasonably necessary for the maintenance or support of 
        a dependent child, including children's toys;''.

SEC. 123. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

  Title 11, United States Code, is amended--
          (1) in section 521--
                  (A) in paragraph (4) by striking ``and'' at 
                the end;
                  (B) in paragraph (5) by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(6) in an individual case under chapter 7 of this 
        title, not retain possession of personal property 
        having a value exceeding $5,000 as to which a creditor 
        has an allowed claim for the purchase price secured in 
        whole or in part by an interest in that personal 
        property unless, in the case of an individual debtor, 
        the debtor takes 1 of the following actions within 30 
        days after the first meeting of creditors under section 
        341(a)--
                  ``(A) enters into a reaffirmation agreement 
                with the creditor pursuant to section 524(c) of 
                this title with respect to the claim secured by 
                such property; or
                  ``(B) redeems such property from the security 
                interest pursuant to section 722 of this title.
        ``If the debtor fails to so act within the 30-day 
        period, the personal property affected shall no longer 
        be property of the estate, and the creditor may take 
        whatever action as to such property as is permitted by 
        applicable nonbankruptcy law, unless the court 
        determines on the motion of the trustee, and after 
        notice and a hearing, that such property is of 
        consequential value or benefit to the estate.''; and
          (2) in section 722 by inserting ``in full at the time 
        of redemption'' before the period at the end.

SEC. 124. RELIEF FROM STAY WHEN THE DEBTOR DOES NOT COMPLETE INTENDED 
                    SURRENDER OF CONSUMER DEBT COLLATERAL.

  Title 11, United States Code, is amended as follows--
          (1) in section 362--
                  (A) by striking ``(e), and (f)'' in 
                subsection (c) and inserting in lieu thereof 
                ``(e), (f), and (h)''; and
                  (B) by redesignating subsection (h) as 
                subsection (i) and by inserting after 
                subsection (g) the following:
  ``(h) In an individual case pursuant to chapter 7, 11, or 13 
the stay provided by subsection (a) is terminated with respect 
to property of the estate having a value exceeding $5000 and 
securing in whole or in part a claim, or subject to an 
unexpired lease, if the debtor fails within the applicable time 
set by section 521(a)(2) of this title--
          ``(1) to file timely any statement of intention 
        required under section 521(a)(2) of this title with 
        respect to that property or to indicate therein that 
        the debtor will either surrender the property or retain 
        it and, if retaining it, either redeem the property 
        pursuant to section 722 of this title, reaffirm the 
        debt it secures pursuant to section 524(c) of this 
        title, or assume the unexpired lease pursuant to 
        section 365(p) of this title if the trustee does not do 
        so, as applicable; or
          ``(2) to take timely the action specified in that 
        statement of intention, as it may be amended before 
        expiration of the period for taking action, unless the 
        statement of intention specifies reaffirmation and the 
        creditor refuses to reaffirm on the original contract 
        terms;
unless the court determines on the motion of the trustee, and 
after notice and a hearing, that such property is of 
consequential value or benefit to the estate.'';
          (2) in section 521, as amended by sections 104, 406, 
        and 407--
                  (A) in paragraph (2) by striking 
                ``consumer'';
                  (B) in paragraph (2)(B)--
                          (i) by striking ``forty-five days 
                        after the filing of a notice of intent 
                        under this section'' and inserting ``30 
                        days after the first date set for the 
                        meeting of creditors under section 
                        341(a)''; and
                          (ii) by striking ``forty-five day'' 
                        the second place it appears and 
                        inserting ``30-day'';
                  (C) in paragraph (2)(C) by inserting ``except 
                as provided in section 362(h)'' before the 
                semicolon; and
                  (D) by adding at the end the following:
  ``(h) If the debtor fails timely to take the action specified 
in subsection (a)(6) of this section, or in paragraphs (1) and 
(2) of section 362(h) of this title, with respect to property 
which a lessor or bailor owns and has leased, rented, or bailed 
to the debtor or as to which a creditor holds a security 
interest not otherwise voidable under section 522(f), 544, 545, 
547, 548, or 549, nothing in this title shall prevent or limit 
the operation of a provision in the underlying lease or 
agreement which has the effect of placing the debtor in default 
under such lease or agreement by reason of the occurrence, 
pendency, or existence of a proceeding under this title or the 
insolvency of the debtor. Nothing in this subsection shall be 
deemed to justify limiting such a provision in any other 
circumstance.''.

SEC. 125. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

  Section 1325(a)(5)(B)(i) of title 11, United States Code, is 
amended to read as follows:
                  ``(i) the plan provides that the holder of 
                such claim retain the lien securing such claim 
                until the earlier of payment of the underlying 
                debt determined under nonbankruptcy law or 
                discharge under section 1328, and that if the 
                case under this chapter is dismissed or 
                converted without completion of the plan, such 
                lien shall also be retained by such holder to 
                the extent recognized by applicable 
                nonbankruptcy law; and''.

SEC. 126. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

  Section 362(e) of title 11, United States Code, is amended by 
inserting at the end the following:
``Notwithstanding the foregoing, in the case of an individual 
filing under chapter 7, 11, or 13, the stay under subsection 
(a) shall terminate 60 days after a request under subsection 
(d) of this section, unless--
          ``(1) a final decision is rendered by the court 
        within such 60-day period; or
          ``(2) such 60-day period is extended either by 
        agreement of all parties in interest or by the court 
        for a specific time which the court finds is required 
        by compelling circumstances.''.

SEC. 127. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13.

  Section 348(f)(1) of title 11, United States Code, is 
amended--
          (1) by striking in subparagraph (B) ``in the 
        converted case, with allowed secured claims'' and 
        inserting in lieu thereof ``only in a case converted to 
        chapter 11 or 12 but not in one converted to chapter 7, 
        with allowed secured claims in cases under chapters 11 
        and 12''; and
          (2) in subparagraph (A) by striking ``and'' at the 
        end;
          (3) in subparagraph (B) by striking the period and 
        inserting ``; and''; and
          (4) 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 case under chapter of this title. 
        Unless a prebankruptcy default has been fully cured 
        pursuant to the plan at the time of conversion, inany 
proceeding under this title or otherwise, the default shall have the 
effect given under applicable nonbankruptcy law.''.

SEC. 128. RESTRAINING ABUSIVE PURCHASES ON SECURED CREDIT.

  Section 506 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(e) In an individual case under chapter 7, 11, 12, or 13--
          ``(1) 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 within 90 days of the filing of the petition, 
        except for the purpose of applying paragraph (3) of 
        this subsection;
          ``(2) if such allowed claim attributable to the 
        purchase price is secured only by the personal property 
        so acquired, the value of the personal property and the 
        amount of the allowed secured claim shall be the sum of 
        the unpaid principal balance of the purchase price and 
        accrued and unpaid interest and charges at the contract 
        rate;
          ``(3) if such allowed claim attributable to the 
        purchase price is secured by the personal property so 
        acquired and other property, the value of the security 
        may be determined under subsection (a), but the value 
        of the security and the amount of the allowed secured 
        claim shall be not less than the unpaid principal 
        balance of the purchase price of the personal property 
        acquired and unpaid interest and charges at the 
        contract rate; and
          ``(4) in any subsequent case under this title that is 
        filed by or against the debtor in the 2-year period 
        beginning on the date the petition is filed in the 
        original case, the value of the personal property and 
        the amount of the allowed secured claim shall be deemed 
        to be not less than the amount provided under 
        paragraphs (2) and (3).''.

SEC. 129. FAIR VALUATION OF COLLATERAL.

    The last sentence of section 506(a) of title 11, United 
States Code, is amended to read as follows:
``Such value shall be the liquidation value of the property 
which shall be not more than the cash wholesale value of the 
property and shall be determined in conjunction with any 
hearing on a plan or after notice and a hearing pursuant to any 
other provision of this title when they are paid in full.''.

SEC. 130. PROTECTION OF HOLDERS OF CLAIMS SECURED BY DEBTOR'S PRINCIPAL 
                    RESIDENCE.

  Title 11, United States Code, is amended--
          (1) in section 101 by inserting after paragraph (13) 
        the following:
          ``(13A) `debtor's principal residence' means a 
        residential structure including incidental property 
        when the structure contains 1 to 4 units, whether or 
        not that structure is attached to real property, and 
        includes, without limitation, an individual condominium 
        or cooperative unit or mobile or manufactured home or 
        trailer;
          ``(13B) `incidental property' means property 
        incidental to such residence including, without 
        limitation, property commonly conveyed with a principal 
        residence where the real estate is located, window 
        treatments, carpets, appliances and equipment located 
        in the residence, and easements, appurtenances, 
        fixtures, rents, royalties, mineral rights, oil and gas 
        rights, escrow funds and insurance proceeds;'';
          (2) in section 362(b)--
                  (A) in paragraph (17) by striking ``or'' at 
                the end thereof;
                  (B) in paragraph (18) by striking the period 
                at the end and inserting ``; or''; and
                  (C) by inserting after paragraph (18) the 
                following:
          ``(19) under subsection (a), until a prepetition 
        default is cured fully in a case under chapter 13 of 
        this title case by actual payment of all arrears as 
        required by the plan, of the postponement, continuation 
        or other similar delay of a prepetition foreclosure 
        proceeding or sale in accordance with applicable 
        nonbankruptcy law, but nothing herein shall imply that 
        such postponement, continuation or other similar delay 
        is a violation of the stay under subsection (a).''; and
          (3) by amending section 1322(b)(2) to read as 
        follows:
          ``(2) modify the rights of holders of secured claims, 
        other than a claim secured primarily by a security 
        interest in property used as the debtor's principal 
        residence at any time during 180 days prior to the 
        filing of the petition, or of holders of unsecured 
        claims, or leave unaffected the rights of holders of 
        any class of claims;''.

SEC. 131. AIRCRAFT EQUIPMENT AND VESSELS.

  Section 1110(a)(1) of title 11, United States Code, is 
amended--
          (1) in subparagraph (A) by striking ``that become due 
        on or after the date of the order'';
          (2) in subparagraph (B)--
                  (A) in clause (i) by striking ``and'' at the 
                end; and
                  (B) in clause (ii)--
                          (i) by inserting ``and within such 
                        60-day period'' after ``order''; and
                          (ii) in subclause (II) by striking 
                        the period at the end and inserting ``; 
                        and''; and
                  (3) by adding at the end the following:
                  ``(iii) that occurs after the date of the 
                order and such 60-day period is cured in 
                accordance with the terms of such security 
                agreement, lease, or conditional sale 
                contract.''.

        Subtitle D--Adequate Protections for Unsecured Creditors

SEC. 141. FRAUDULENT DEBTS ARE NONDISCHARGEABLE IN CHAPTER 13 CASES.

  Section 1328(a)(2) of title 11, United States Code, is 
amended--
          (1) by inserting ``(2), (3)(B), (4),'' after 
        ``paragraph''; and
          (2) by inserting ``(6),'' after ``(5),''.

SEC. 142. APPLYING THE CODEBTOR STAY ONLY WHEN IT 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) When the debtor did not receive the consideration for 
the claim held by a creditor, the stay provided by subsection 
(a) does not apply to such creditor, notwithstanding subsection 
(c), to the extent the creditor proceeds against the individual 
which received such consideration or against property not in 
the possession of the debtor which secures such claim, after 
notice and a hearing to the person in possession of such 
property, but this subsection shall not apply if the debtor is 
primarily obligated to pay the creditor in whole or in part 
with respect to the claim under a legally binding separation 
agreement, or divorce or dissolution decree, with respect to 
such individual or the person who has possession of such 
property.
  ``(3) When the debtor's plan provides that the debtor's 
interest in personal property subject to a lease as 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, the stay provided by subsection 
(a) shall terminate as of the date of confirmation of the plan 
notwithstanding subsection (c).''.

SEC. 143. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
                    MAINTENANCE, AND SUPPORT.

  Section 523(a)(5) of title 11, United States Code, is amended 
to read as follows:
          ``(5) to a spouse, former spouse, or child of the 
        debtor for alimony to, maintenance for, or support of 
        such spouse or child, or to a spouse, former spouse, or 
        child of the debtor, to the extent such debt is the 
        result of a property settlement agreement, a hold 
        harmless agreement, or any other type of debt that is 
        not in the nature of alimony, maintenance, or support 
        in connection with or incurred by the debtor in the 
        course of a separation agreement, divorce decree, any 
        modifications thereof, or other order of a court of 
        record, determination made in accordance with State or 
        territorial law by a governmental unit, but not to the 
        extent that such debt is assigned to another entity, 
        voluntarily, by operation of law, or otherwise (other 
        than debts assigned pursuant to section 408(a)(3) of 
        the Social Security Act, or such debt that has been 
        assigned to the Federal government, or to a State or 
        political subdivision of such State, or the creditor's 
        attorney);''.

SEC. 144. OTHER EXCEPTIONS TO DISCHARGE.

  Section 523 of title 11, United States Code, is amended--
          (1) by striking subsection (a)(15), as added by 
        section 304(e)(1) of Public Law 103-394;
          (2) in subsection (a)(7) by inserting ``an order of 
        disgorgement or restitution obtained by a governmental 
        unit'' after ``such debt is for''; and
          (3) in subsection (c)(1) by striking ``(6), or (15)'' 
        and inserting ``or (6)''.

SEC. 145. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

  (a) Exception to Discharge.--Section 523(a)(16) of title 11, 
United States Code, is amended--
          (1) by striking ``dwelling'' the 1st place it 
        appears;
          (2) by striking ``ownership or'' and inserting 
        ``ownership,'';
          (3) by striking ``housing'' the 1st place it appears; 
        and
          (4) by striking ``but only'' and all that follows 
        through ``such period,'', and inserting ``or a lot in a 
        homeowners association, for as long as the debtor or 
        the trustee has a legal, equitable, or possessory 
        ownership interest in such unit, such corporation, or 
        such lot,''.
  (b) Executory Contracts.--Section 365 of title 11, United 
States Code, as amended by section 161, is amended by adding at 
the end the following:
  ``(q) A debt of a kind described in section 523(a)(16) of 
this title shall not be considered to be a debt arising from an 
executory contract.''

SEC. 146. ADEQUATE PROTECTION FOR INVESTORS.

  (a) Definition.--Section 101 of title 11, United States Code, 
is amended by inserting after paragraph (48) the following:
          ``(48A) `securities self regulatory organization' 
        means either a securities association registered with 
        the Securities and Exchange Commission pursuant to 
        section 15A of the Securities Exchange Act of 1934 or a 
        national securities exchange registered with the 
        Securities and Exchange Commission pursuant to section 
        6 of the Securities Exchange Act of 1934;''.
  (b) Automatic Stay.--Section 362(b) of title 11, United 
States Code, is amended--
          (1) in paragraph (17) by striking ``or'' at the end;
          (2) in paragraph (18) by striking the period at the 
        end and a inserting ``; or''; and
          (3) by adding at the end the following:
          ``(19) under subsection (a) of this section, of the 
        commencement or continuation of an investigation or 
        action by a securities self regulatory organization to 
        enforce such organization's regulatory power; of the 
        enforcement of an order or decision, other than for 
        monetary sanctions, obtained in an action by the 
        securities self regulatory organization to enforce such 
        organization's regulatory power; or of any act taken by 
        the securities self regulatory organization to delist, 
        delete, or refuse to permit quotation of any stock that 
        does not meet applicable regulatory requirements.''.

SEC. 147. SUPER-PRIORITY FOR CHILD AND SPOUSAL SUPPORT CLAIMS.

  Section 507 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(e) Notwithstanding any other provision of this title, a 
claim entitled to priority under subsection (a)(7) shall have 
first priority over any expense or claim that has priority 
under any other provision of this title, except that 
administrative expenses may be paid under the priority provided 
in subsection (a)(1) if the failure to do so would result in 
less property being distributed to the holder of a claim of a 
kind specified in subsection (a)(7).''.

SEC. 148. DEBTS FOR ALIMONY, MAINTENANCE, AND SUPPORT.

  (a) Nondischargeability.--Section 523(a)(18) of title 11, 
United States Code, is amended--
          (1) by inserting ``(including interest)'' after 
        ``law''; and
          (2) in subparagraph (A) by striking ``and'' at the 
        end and inserting ``or''.
  (b) Automatic Stay.--Section 362(b) of title 11, United 
States Code, as amended by section 130, is amended--
          (1) in paragraph (19) by striking ``or'' at the end;
          (2) in paragraph (19) by striking the period at the 
        end and inserting a semicolon; and
          (3) by adding at the end the following:
          ``(20) under subsection (a) with respect to the 
        withholding of income pursuant to an order for support 
        that is owed to a spouse, former spouse, or child of 
        the debtor; or
          ``(21) 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 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.''.
  (c) Continued Liability of Property.--Section 522(c) of title 
11, United States Code, is amended by striking ``section 
523(a)(1) or 523(a)(5)'' and inserting ``paragraph (1) or (5) 
of section 523(a)''.
  (d) Confirmation of Plans.--Title 11 of the United States 
Code is amended--
          (1) in section 1129(a) by adding at the end the 
        following:
          ``(14) If the debtor is required by a judicial or 
        administrative order 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 such order for current alimony, maintenance, or 
        support that are due after the date the petition is 
        filed and owed to such spouse, former spouse, or child, 
        unless such spouse, former spouse, or child waives the 
        operation of this paragraph.'';
          (2) in section 1225(a)--
                  (A) in paragraph (5) by striking ``and'' at 
                the end;
                  (B) in paragraph (6) by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(7) the debtor 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 such order for current alimony, maintenance, or 
        support that are due after the date the petition is 
        filed and owed to such spouse, former spouse, or child, 
        unless such spouse, former spouse, or child waives the 
        operation of this paragraph.''; and
          (3) 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 such order for current alimony, maintenance, or 
        support that are due after the date the petition is 
        filed and owed to such spouse, former spouse, or child, 
        unless such spouse, former spouse, or child waives the 
        operation of this paragraph.''.
  (f) Discharge.--Title 11 United States Code is amended--
          (1) in section 1228(a) by inserting ``and only after 
        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, certifies that all amounts payable under 
        such order for alimony, maintenance, or support that 
        are due after the date the petition is filed have been 
        paid unless such spouse, former spouse, or child waives 
        the operation of this paragraph,'' after ``this 
        title,''; and
          (2) in section 1328(a) by inserting ``and only after 
        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, certifies that all amounts payable under 
        such order for alimony, maintenance, or support that 
        are due after the date the petition is filed have been 
        paid unless such spouse, former spouse, or child waives 
        the operation of this paragraph,'' after ``plan,'' the 
        1st place it appears.
  (g) Conforming Amendments.--Section 456(b) of the Social 
Security Act (42 U.S.C. 656(b)) is amended--
          (1) by inserting ``, including interest,'' after 
        ``Code)'';
          (2) by striking ``and'' and inserting ``or''; and
          (3) by striking ``released by a discharge'' and 
        inserting ``dischargeable''.

SEC. 149. PROTECTION OF CHILD SUPPORT AND ALIMONY.

  (a) Amendment.--Title 11 of the United States Code, as 
amended by section 116, is amended by inserting after section 
528 the following:

``Sec. 529. Protection of child support and alimony payments after the 
                    discharge

  ``Notwithstanding the provisions of the constitution or law 
of any State providing a different priority, any debts of the 
individual who has received a discharge under this title to a 
spouse, former spouse, or child for alimony to, maintenance 
for, or support of such spouse or child, in connection with a 
separation agreement, divorce decree, or other order of a court 
of record, determination made in accordance with State or 
territorial law by a governmental unit, or property settlement 
agreement, but not to the extent that such debt--
          ``(1) is assigned to another entity, voluntarily, by 
        operation of law, or otherwise; or
          ``(2) includes a liability designated as alimony, 
        maintenance, or support, unless such liability is 
        actually in the nature of alimony, maintenance, or 
        support,
and any debt of a kind specified in paragraph (6), (9), or (13) 
of section 523(a) of this title, shall have priority in payment 
and collection over a creditor's claim which is not discharged 
in the individual's case pursuant to paragraph (2) or (4) of 
section 523(a) of this title, but such priority shall not 
affect the priority of any consensual lien, mortgage, or 
security interest securing such creditor's claim.''.
  (b) Conforming Amendment.--The table of sections of chapter 5 
of title 11, United States Code, as amended by section 116, is 
amended by inserting after the item relating to section 528 the 
following:

``529. Protection of child support and alimony.''.

              Subtitle E--Adequate Protections for Lessors

SEC. 161. GIVING DEBTORS THE ABILITY TO KEEP LEASED PERSONAL PROPERTY 
                    BY ASSUMPTION.

  Section 365 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(p)(1) If a lease of personal property with an aggregate 
value of not less than $5,000 leased by the debtor is rejected 
or not timely assumed by the trustee under subsection (d), the 
leased property is no longer property of the estate and the 
stay under section 362(a) of this title is automatically 
terminated.
  ``(2) In the case of an individual under chapter 7, the 
debtor may notify the creditor in writing that the debtor 
desires to assume the lease. Upon being so notified, the 
creditor may, at its option, notify the debtor that it is 
willing to have the lease assumed by the debtor and may 
condition such assumption on cure of any outstanding default on 
terms set by the lessor. If within 30 days of such notice the 
debtor notifies the lessor in writing that the lease is 
assumed, the liability under the lease will be assumed by the 
debtor and not by the estate. The stay under section 362 of 
this title and the injunction under section 524(a)(2) of this 
title shall not be violated by notification of the debtor and 
negotiation of cure under this subsection.
  ``(3) In a case under chapter 11 of this title in which the 
debtor is an individual and in a case under chapter 13 of this 
title, if the debtor is the lessee with respect to personal 
property and the lease is not assumed in the plan confirmed by 
the court, the lease is deemed rejected as of the conclusion of 
the hearing on confirmation. If the lease is rejected, the stay 
under section 362 of this title and any stay under section 1301 
is automatically terminated with respect to the property 
subject to the lease.''.

  Subtitle F--Bankruptcy Relief Less Frequently Available for Repeat 
                                 Filers

SEC. 171. EXTEND PERIOD BETWEEN BANKRUPTCY DISCHARGES.

  Section 727(a)(8) of title 11, United States Code, is amended 
by striking ``six'' and inserting ``7''.

                         Subtitle G--Exemptions

SEC. 181. EXEMPTIONS.

  Section 522(b)(2)(A) of title 11, United States Code, is 
amended--
          (1) by striking ``180'' and inserting ``365''; and
          (2) by striking ``, or for a longer portion of such 
        180-day period than in any other place''.

SEC. 182. 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:
  ``(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 interest to the 
extent that such interest exceeds $100,000 in value, in the 
aggregate, 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--
          ``(A) an exemption claimed under subsection (b)(2)(A) 
        by a family farmer for the principal residence of that 
        farmer; or
          ``(B) a case commenced under section 303 of this 
        title.''.

SEC. 183. PROVIDE FAIR PROPERTY EXEMPTIONS AND PREVENT HIGH-ROLLERS 
                    FROM ABUSING THE SYSTEM.

  Section 522 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(n) If, in the 1-year period ending on the date of the 
filing of the petition and while the debtor was insolvent, the 
debtor makes property exempt under subsection (b) by converting 
property to a form of property that is exempt in an unlimited 
amount, such property shall not be exempt under this section to 
the extent that the value of the debtor's interest in the 
property that is converted exceeds $100,000. Such conversion 
shall not otherwise be a basis for denying an exemption and 
shall not be the basis for denying the debtor other relief 
under this title.''.

                TITLE II--BUSINESS BANKRUPTCY PROVISIONS

                     Subtitle A--General Provisions

SEC. 201. LIMITATION RELATING TO THE USE OF FEE EXAMINERS.

  Section 330 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(e) The court may not appoint any person to examine any 
request for compensation or reimbursement payable under this 
section.''.

SEC. 202. SHARING OF COMPENSATION.

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

SEC. 203. CHAPTER 12 MADE PERMANENT LAW.

  Section 302(f) of the Bankruptcy Judges, United States 
Trustees, and Family Farmer Bankruptcy Act of 1986 (11 U.S.C. 
1201 note) is repealed.

SEC. 204. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

  Section 341 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(e) Notwithstanding subsections (a) and (b), the court, on 
the request of a party in interest and after notice and a 
hearing, for cause may order that the United States trustee not 
convene a meeting of creditors or equity security holders if 
the debtor has filed a plan as to which the debtor solicited 
acceptances prior to the commencement of the case.''.

SEC. 205. CREDITORS' AND EQUITY SECURITY HOLDERS' COMMITTEES.

  Section 1102(b) of title 11, United States Code, is amended 
by adding at the end the following:
  ``(3) The court on its own motion or on request of a party in 
interest, and after notice and a hearing, may order a change in 
membership of a committee appointed under subsection (a) if 
necessary to ensure adequate representation of creditors or of 
equity security holders.''.

SEC. 206. POSTPETITION DISCLOSURE AND SOLICITATION.

  Section 1125 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(g) Notwithstanding subsection (b), an acceptance or 
rejection of the plan may be solicited from a holder of a claim 
or interest if such solicitation complies with applicable 
nonbankruptcy law and if such holder was solicited before the 
commencement of the case in a manner complying with applicable 
nonbankruptcy law.''.

SEC. 207. PREFERENCES.

  Section 547(c) of title 11, United States Code, is amended--
          (1) by amending paragraph (2) to read as follows:
          ``(2) to the extent that such transfer was in payment 
        of a debt incurred by the debtor in the ordinary course 
        of business or financial affairs of the debtor and the 
        transferee, and such transfer was--
                  ``(A) made in the ordinary course of business 
                or financial affairs of the debtor and the 
                transferee; or
                  ``(B) made according to ordinary business 
                terms;'';
          (2) in paragraph (7) by striking ``or'' at the end;
          (3) in paragraph (8) by striking the period at the 
        end and inserting ``; or''; and
          (4) by adding at the end the following:
          ``(9) if, in a case filed by a debtor whose debts are 
        not primarily consumer debts, the aggregate value of 
        all property that constitutes or is affected by such 
        transfer is less than $5000.''.

SEC. 208. VENUE OF CERTAIN PROCEEDINGS.

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

SEC. 209. CASES ANCILLARY TO FOREIGN PROCEEDINGS INVOLVING FOREIGN 
                    INSURANCE COMPANIES THAT ARE ENGAGED IN THE 
                    BUSINESS OF INSURANCE OR REINSURANCE IN THE UNITED 
                    STATES.

  Section 304 of title 11, United States Code, is amended--
          (1) in subsection (b) by striking ``provisions of 
        subsection (c)'' and inserting ``subsections (c) and 
        (d)''; and
          (2) by adding at the end the following:
  ``(d) The court may not grant to a foreign representative of 
the estate of an insurance company that is not organized under 
the law of a State and that is engaged in the business of 
insurance, or reinsurance, in the United States relief under 
subsection (b) with respect to property that is--
          ``(1) a deposit required by a State law relating to 
        insurance or reinsurance;
          ``(2) a multibeneficiary trust required by a State 
        law relating to insurance or reinsurance to protect 
        holders of insurance policies issued in the United 
        States or to protect holders or claimants against such 
        policies; or
          ``(3) a multibeneficiary trust authorized by a State 
        law relating to insurance or reinsurance to allow a 
        person engaged in the business of insurance in the 
        United States--
                  ``(A) to cede reinsurance to such an 
                insurance company; and
                  ``(B) to treat so ceded reinsurance as an 
                asset, or deduction from liability, in 
                financial statements of such person.''.

SEC. 210. PERIOD FOR FILING PLAN UNDER CHAPTER 11.

  Section 1121(d) of title 11, United States Code, is amended--
          (1) by striking ``On'' and inserting ``(1) Subject to 
        paragraph (1), on''; and
          (2) by adding at the end the following:
  ``(2)(A) Such 120-day period may not be extended beyond a 
date that is 18 months after the date of the order for relief 
under this chapter unless the court determines that there is 
substantial likelihood that the failure to extend such date 
would result in the loss of jobs in the operation of the 
debtor's business.
  ``(B) Such 180-day period may not be extended beyond a date 
that is 20 months after the date of the order for relief under 
this chapter unless the court determines that there is 
substantial likelihood that the failure to extend such date 
would result in the loss of jobs in the operation of the 
debtor's business.''.

SEC. 211. UNEXPIRED LEASES OF NONRESIDENTIAL REAL PROPERTY.

  Section 365(d)(4) of title 11, United States Code, is amended 
to read as follows:
  ``(4) In a case under any chapter of this title, if the 
trustee does not assume or reject an unexpired lease of 
nonresidential real property under which the debtor is the 
lessee before the earlier of (A) 120 days after the date of the 
order for relief, or (B) the entry of an order confirming a 
plan, then such lease is deemed rejected, and the trustee shall 
immediately surrender such nonresidential real property to the 
lessor but in no event shall such time period exceed 120 days 
unless the court determines that there is substantial 
likelihood that the failure to extend such date would result in 
the loss of jobs in the operation of the debtor's business. 
Notwithstanding the immediately preceding sentence, and 
provided no plan has been confirmed, upon debtor's motion, and 
after notice and a hearing, the court may within such 120-day 
period extend the 120-day period by a period not to exceed 150 
days, contingent upon written consent of the affected lessor or 
with the approval of the court, and provided trustee has timely 
performed all post-petition lease obligations, but in no 
circumstance shall such period extend beyond the earlier of (i) 
270 days from the date of the order for relief or (ii) the 
entry of an order approving a disclosure statement, without the 
consent of the lessor unless the court determines that there is 
substantial likelihood that the failure to extend such date 
would result in the loss of jobs in the operation of the 
debtor's business.''.

SEC. 212. DEFINITION OF DISINTERESTED PERSON.

  Section 101(14) of title 11, United States Code, is amended 
to read as follows:
          ``(14) `disinterested person' means a person that--
                  ``(A) is not a creditor, an equity security 
                holder, or an insider;
                  ``(B) is not and was not, within 2 years 
                before the date of the filing of the petition, 
                a director, officer, or employee of the debtor; 
                and
                  ``(C) does not have an interest materially 
                adverse to the interest of the estate or of any 
                class of creditors or equity security holders, 
                by reason of any direct or indirect 
                relationship to, connection with, or interest 
                in, the debtor, or for any other reason;''.

                    Subtitle B--Specific Provisions

                  CHAPTER 1--SMALL BUSINESS BANKRUPTCY

SEC. 231. DEFINITIONS.

  (a) Definitions.--Section 101 of title 11, United States 
Code, is amended by striking paragraph (51C) and inserting the 
following:
          ``(51C) `small business case' means a case filed 
        under chapter 11 of this title in which the debtor is a 
        small business debtor;
          ``(51D) `small business debtor' means--
                  ``(A) a person (including affiliates of such 
                person that are also debtors under this title) 
                that has aggregate noncontingent, liquidated 
                secured and unsecured debts as of the date of 
                the petition or the order for relief in an 
                amount not more than $5,000,000 (excluding 
                debts owed to 1 or more affiliates or 
                insiders); or
                  ``(B) a debtor of the kind described in 
                paragraph (51B) but without regard to the 
                amount of such debtor's debts;
        except that if a group of affiliated debtors has 
        aggregate noncontingent liquidated secured and 
        unsecured debts greater than $5,000,000 (excluding debt 
        owed to 1 or more affiliates or insiders), then no 
        member of such group is a small business debtor;''.
  (b) Conforming Amendment.--Section 1102(a)(3) of title 11, 
United States Code, is amended by inserting ``debtor'' after 
``small business''.

SEC. 232. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

  Section 1125(f) of title 11, United States Code, is amended 
to read as follows:
  ``(f) Notwithstanding subsection (b), in a small business 
case--
          ``(1) in determining whether a disclosure statement 
        provides adequate information, the court shall consider 
        the complexity of the case, the benefit of additional 
        information to creditors and other parties in interest, 
        and the cost of providing additional information;
          ``(2) the court may determine that the plan itself 
        provides adequate information and that a separate 
        disclosure statement is not necessary;
          ``(3) the court may approve a disclosure statement 
        submitted on standard forms approved by the court or 
        adopted pursuant to section 2075 of title 28; and
          ``(4)(A) the court may conditionally approve a 
        disclosure statement subject to final approval after 
        notice and a hearing;
          ``(B) acceptances and rejections of a plan may be 
        solicited based on a conditionally approved disclosure 
        statement if the debtor provides adequate information 
        to each holder of a claim or interest that is 
        solicited, but a conditionally approved disclosure 
        statement shall be mailed not less than 20 days before 
        the date of the hearing on confirmation of the plan; 
        and
          ``(C) the hearing on the disclosure statement may be 
        combined with the hearing on confirmation of a plan.''.

SEC. 233. STANDARD FORM DISCLOSURE STATEMENTS AND PLANS.

  The Advisory Committee on Bankruptcy Rules of the Judicial 
Conference of the United States shall, within a reasonable 
period of time after the date of the enactment of this Act, 
propose for adoption standard form disclosure statements and 
plans of reorganization for small business debtors (as defined 
in section 101 of title 11, United States Code, as amended by 
this Act), designed to achieve a practical balance between--
          (1) the reasonable needs of the courts, the United 
        States trustee or bankruptcy administrator, creditors, 
        and other parties in interest for reasonably complete 
        information; and
          (2) economy and simplicity for debtors.

SEC. 234. UNIFORM NATIONAL REPORTING REQUIREMENTS.

  (a) Reporting Required.--(1) Title 11 of the United States 
Code is amended by inserting after section 307 the following:

``Sec. 308. Debtor reporting requirements

  ``A small business debtor shall file periodic financial and 
other reports containing information including--
          ``(1) the debtor's profitability, that is, 
        approximately how much money the debtor has been 
        earning or losing during current and recent fiscal 
        periods;
          ``(2) reasonable approximations of the debtor's 
        projected cash receipts and cash disbursements over a 
        reasonable period;
          ``(3) comparisons of actual cash receipts and 
        disbursements with projections in prior reports;
          ``(4) whether the debtor is--
                  ``(A) in compliance in all material respects 
                with postpetition requirements imposed by this 
                title and the Federal Rules of Bankruptcy 
                Procedure; and
                  ``(B) timely filing tax returns and paying 
                taxes and other administrative claims when due, 
                and, if not, what the failures are and how, at 
                what cost, and when the debtor intends to 
                remedy such failures; and
          ``(5) such other matters as are in the best interests 
        of the debtor and creditors, and in the public interest 
        in fair and efficient procedures under chapter 11 of 
        this title.''.
  (2) The table of sections of chapter 3 of title 11, United 
States Code, is amended by inserting after the item relating to 
section 307 the following:

``308. Debtor reporting requirements.''.

  (b) Effective Date.--The amendments made by subsection (a) 
shall take effect 60 days after the date on which rules are 
prescribed pursuant to section 2075, title 28, United States 
Code to establish forms to be used to comply with section 308 
of title 11, United States Code, as added by subsection (a).

SEC. 235. UNIFORM REPORTING RULES AND FORMS.

  After consultation with the Director of the Executive for 
United States Trustees and with the Judicial Conference of the 
United States, the Attorney General of the United States shall 
propose for adoption amended Federal Rules of Bankruptcy 
Procedure and Official Bankruptcy Forms to be used by small 
business debtors to comply with section 308 of title 11, United 
States Code, as added by section 234 of this Act to achieve a 
practical balance between--
          (1) the reasonable needs of the courts, the United 
        States trustee or bankruptcy administrator, creditors, 
        and other parties in interest for reasonably complete 
        information; and
          (2) economy and simplicity for debtors in cases under 
        such title.

SEC. 236. DUTIES IN SMALL BUSINESS CASES.

  (a) Duties in Chapter 11 Cases.--Title 11 of the United 
States Code is amended by inserting after section 1114 the 
following:

``Sec. 1115. Duties of trustee or debtor in possession in small 
                    business cases

  ``In a small business case, a trustee or the debtor in 
possession, in addition to the duties provided in this title 
and as otherwise required by law, shall--
          ``(1) append to the voluntary petition or, in an 
        involuntary case, file within 3 days after the date of 
        the order for relief--
                  ``(A) its most recent balance sheet, 
                statement of operations, cash-flow statement, 
                Federal income tax return; or
                  ``(B) a statement made under penalty of 
                perjury that no balance sheet, statement of 
                operations, or cash-flow statement has been 
                prepared and no Federal tax return has been 
                filed;
          ``(2) attend, through its senior management personnel 
        and counsel, meetings scheduled by the court or the 
        United States trustee, including initial debtor 
        interviews, scheduling conferences, and meetings of 
        creditors convened under section 341 of this title;
          ``(3) timely file all schedules and statements of 
        financial affairs, unless the court, after notice and a 
        hearing, grants an extension, which shall not extend 
        such time period to a date later than 30 days after the 
        date of the order for relief, absent extraordinary and 
        compelling circumstances;
          ``(4) file all postpetition financial and other 
        reports required by the Federal Rules of Bankruptcy 
        Procedure or by local rule of the district court;
          ``(5) subject to section 363(c)(2), maintain 
        insurance customary and appropriate to the industry;
          ``(6)(A) timely file tax returns;
          ``(B) subject to section 363(c)(2), timely pay all 
        administrative expense tax claims, except those being 
        contested by appropriate proceedings being diligently 
        prosecuted; and
          ``(C) subject to section 363(c)(2), establish 1 or 
        more separate deposit accounts not later than 10 
        business days after the date of order for relief (or as 
        soon thereafter as possible if all banks contacted 
        decline the business) and deposit therein, not later 
        than 1 business day after receipt thereof, all taxes 
        payable for periods beginning after the date the case 
        is commenced that are collected or withheld by the 
        debtor for governmental units; and
          ``(7) allow the United States trustee or bankruptcy 
        administrator, or its designated representative, to 
        inspect the debtor's business premises, books, and 
        records at reasonable times, after reasonable prior 
        written notice, unless notice is waived by the 
        debtor.''.
  (b) Technical Amendment.--The table of sections of chapter 
11, United States Code, is amended by inserting after the item 
relating to section 1114 the following:

``1115. Duties of trustee or debtor in possession in small business 
          cases.''.

SEC. 237. PLAN FILING AND CONFIRMATION DEADLINES.

  Section 1121(e) of title 11, United States Code, is amended 
to read as follows:
  ``(e) In a small business case--
          ``(1) only the debtor may file a plan until after 90 
        days after the date of the order for relief, unless 
        shortened on request of a party in interest made during 
        the 90-day period, or unless extended as provided by 
        this subsection, after notice and hearing the court, 
        for cause, orders otherwise;
          ``(2) the plan, and any necessary disclosure 
        statement, shall be filed not later than 90 days after 
        the date of the order for relief; and
          ``(3) the time periods specified in paragraphs (1) 
        and (2), and the time fixed in section 1129(e) of this 
        title, within which the plan shall be confirmed may be 
        extended only if--
                  ``(A) the debtor, after providing notice to 
                parties in interest (including the United 
                States trustee), demonstrates by a 
                preponderance of the evidence that it is more 
                likely than not that the court will confirm a 
                plan within a reasonable time;
                  ``(B) a new deadline is imposed at the time 
                the extension is granted; and
                  ``(C) the order extending time is signed 
                before the existing deadline has expired.''.

SEC. 238. PLAN CONFIRMATION DEADLINE.

  Section 1129 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(e) In a small business case, the plan shall be confirmed 
not later than 150 days after the date of the order for relief 
unless such 150-day period is extended as provided in section 
1121(e)(3) of this title.''.

SEC. 239. PROHIBITION AGAINST EXTENSION OF TIME.

  Section 105(d) of title 11, United States Code, is amended--
          (1) in paragraph (2)(B)(vi) by striking the period at 
        the end and inserting ``; and''; and
          (2) by adding at the end the following:
          ``(3) in a small business case, not extend the time 
        periods specified in sections 1121(e) and 1129(e) of 
        this title except as provided in section 1121(e)(3) of 
        this title.''.

SEC. 240. DUTIES OF THE UNITED STATES TRUSTEE AND BANKRUPTCY 
                    ADMINISTRATOR.

  (a) Duties of the United States Trustee.--Section 586(a) of 
title 28, United States Code, as amended by section 111, is 
amended--
          (1) in paragraph (3)--
                  (A) in subparagraph (G) by striking ``and'' 
                at the end;
                  (B) by redesignating subparagraph (H) as 
                subparagraph (I); and
                  (C) by inserting after subparagraph (G) the 
                following:
                  ``(H) in small business cases (as defined in 
                section 101 of title 11), performing the 
                additional duties specified in title 11 
                pertaining to such cases;'',
          (2) in paragraph (6) by striking ``and'' at the end,
          (3) in paragraph (7) by striking the period at the 
        end and inserting ``; and'', and
          (4) by inserting after paragraph (7) the following:
          ``(8) in each of such small business cases--
                  ``(A) conduct an initial debtor interview as 
                soon as practicable after the entry of order 
                for relief but before the first meeting 
                scheduled under section 341(a) of title 11 at 
                which time the United States trustee shall 
                begin to investigate the debtor's viability, 
                inquire about the debtor's business plan, 
                explain the debtor's obligations to file 
                monthly operating reports and other required 
                reports, attempt to develop an agreed 
                scheduling order, and inform the debtor of 
                other obligations;
                  ``(B) when determined to be appropriate and 
                advisable, visit the appropriate business 
                premises of the debtor and ascertain the state 
                of the debtor's books and records and verify 
                that the debtor has filed its tax returns;
                  ``(C) review and monitor diligently the 
                debtor's activities, to identify as promptly as 
                possible whether the debtor will be unable to 
                confirm a plan; and
                  ``(D) in cases where the United States 
                trustee finds material grounds for any relief 
                under section 1112 of title 11 move the court 
                promptly for relief.''.
  (b) Duties of the Bankruptcy Administrator.--In a small 
business case (as defined in section 101 of title 11 of the 
United States Code), the bankruptcy administrator shall perform 
the duties specified in section 586(a)(6) of title 28 of the 
United States Code.

SEC. 241. SCHEDULING CONFERENCES.

  Section 105(d) of title 11, United States Code, is amended--
          (1) in the matter preceding paragraph (1) by striking 
        ``, may'';
          (2) by amending paragraph (1) to read as follows:
          ``(1) shall hold such status conferences as are 
        necessary to further the expeditious and economical 
        resolution of the case; and''; and
          (3) in paragraph (2) by striking ``unless 
        inconsistent with another provision of this title or 
        with applicable Federal Rules of Bankruptcy 
        Procedure,'' and inserting ``may''.

SEC. 242. SERIAL FILER PROVISIONS.

  Section 362 of title 11, United States Code, is amended--
          (1) in subsection (i) as so redesignated by section 
        124--
                  (A) by striking ``An'' and inserting ``(1) 
                Except as provided in paragraph (2), an''; and
                  (B) by adding at the end the following:
  ``(2) If such violation is based on an action taken by an 
entity in the good-faith belief that subsection (h) applies to 
the debtor, then recovery under paragraph (1) against such 
entity shall be limited to actual damages.''; and
          (2) by inserting after subsection (i), as 
        redesignated by section 124, the following:
  ``() The filing of a petition under chapter 11 of this title 
operates as a stay of the acts described in subsection (a) only 
in an involuntary case involving no collusion by the debtor 
with creditors and in which the debtor--
          ``(1) is a debtor in a small business case pending at 
        the time the petition is filed;
          ``(2) was a debtor in a small business case which was 
        dismissed for any reason by an order that became final 
        in the 2-year period ending on the date of the order 
        for relief entered with respect to the petition;
          ``(3) was a debtor in a small business case in which 
        a plan was confirmed in the 2-year period ending on the 
        date of the order for relief entered with respect to 
        the petition; or
          ``(4) is an entity that has succeeded to 
        substantially all of the assets or business of a small 
        business debtor described in subparagraph (A), (B), or 
        (C) unless the debtor proves, by a preponderance of the 
        evidence, that the filing of such petition resulted 
        from circumstances beyond the control of the debtor not 
        foreseeable at the time the case then pending was 
        filed; and that it is more likely than not that the 
        court will confirm a feasible plan, but not a 
        liquidating plan, within a reasonable time.''.

SEC. 243. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND APPOINTMENT 
                    OF TRUSTEE.

  (a) Expanded Grounds for Dismissal or Conversion.--Section 
1112(b) of title 11, United States Code, is amended to read as 
follows:
  ``(b)(1) Except as provided in paragraph (2), in subsection 
(c), and in section 1104(a)(3) of this title, on request of a 
party in interest, and after notice and a hearing, the court 
shall convert a case under this chapter to a case under chapter 
7 of this title or dismiss a case under this chapter, whichever 
is in the best interest of creditors and the estate, if the 
movant establishes cause.
  ``(2) The relief provided in paragraph (1) shall not be 
granted if the debtor or another party in interest objects and 
establishes, by a preponderance of the evidence that--
          ``(A) it is more likely than not that a plan will be 
        confirmed within a time as fixed by this title or by 
        order of the court entered pursuant to section 
        1121(e)(3), or within a reasonable time if no time has 
        been fixed; and
          ``(B) if the reason is an act or omission of the 
        debtor that--
                  ``(i) there exists a reasonable justification 
                for the act or omission; and
                  ``(ii) the act or omission will be cured 
                within a reasonable time fixed by the court not 
                to exceed 30 days after the court decides the 
                motion, unless the movant expressly consents to 
                a continuance for a specific period of time, or 
                compelling circumstances beyond the control of 
                the debtor justify an extension.
  ``(3) For purposes of this subsection, cause includes--
          ``(A) substantial or continuing loss to or diminution 
        of the estate;
          ``(B) gross mismanagement of the estate;
          ``(C) failure to maintain appropriate insurance;
          ``(D) unauthorized use of cash collateral harmful to 
        1 or more creditors;
          ``(E) failure to comply with an order of the court;
          ``(F) failure timely to satisfy any filing or 
        reporting requirement established by this title or by 
        any rule applicable to a case under this chapter;
          ``(G) failure to attend the meeting of creditors 
        convened under section 341(a) of this title or an 
        examination ordered under rule 2004 of the Federal 
        Rules of Bankruptcy Procedure;
          ``(H) failure timely to provide information or attend 
        meetings reasonably requested by the United States 
        trustee;
          ``(I) failure timely to pay taxes due after the date 
        of the order for relief or to file tax returns due 
        after the order for relief;
          ``(J) failure to file a disclosure statement, or to 
        file or confirm a plan, within the time fixed by this 
        title or by order of the court;
          ``(K) failure to pay any fees or charges required 
        under chapter 123 of title 28;
          ``(L) revocation of an order of confirmation under 
        section 1144 of this title, and denial of confirmation 
        of another plan or of a modified plan under section 
        1129 of this title;
          ``(M) inability to effectuate substantial 
        consummation of a confirmed plan;
          ``(N) material default by the debtor with respect to 
        a confirmed plan; and
          ``(O) termination of a plan by reason of the 
        occurrence of a condition specified in the plan.
  ``(4) The court shall commence the hearing on any motion 
under this subsection not later than 30 days after filing of 
the motion, and shall decide the motion within 15 days after 
commencement of the hearing, unless the movant expressly 
consents to a continuance for a specific period of time or 
compelling circumstances prevent the court from meeting the 
time limits established by this paragraph.''.
  (b) Additional Grounds for Appointment of Trustee.--Section 
1104(a) of title 11, United States Code, is amended--
          (1) in paragraph (1) by striking ``or'' at the end;
          (2) in paragraph (2) by striking the period at the 
        end and inserting ``; or''; and
          (3) by adding at the end the following:
          ``(3) if grounds exist to convert or dismiss the case 
        under section 1112 of this title, but the court 
        determines that the appointment of a trustee is in the 
        best interests of creditors and the estate.''.

                  CHAPTER 2--SINGLE ASSET REAL ESTATE

SEC. 251. SINGLE ASSET REAL ESTATE DEFINED.

  Section 101(51B) of title 11, United States Code, is amended 
to read as follows:
          ``(51B) `single asset real estate' means undeveloped 
        real property or other real property constituting a 
        single property or project, other than residential real 
        property with fewer than 4 residential units, on which 
        is located a single development or project which 
        property or project generates substantially all of the 
        gross income of a debtor and on which no substantial 
        business is being conducted by a debtor, or by a 
        commonly controlled group of entities all of which are 
        concurrently debtors in a case under chapter 11 of this 
        title, other than the business of operating the real 
        property and activities incidental thereto;''.

SEC. 252. PAYMENT OF INTEREST.

  Section 362(d)(3) of title 11, United States Code, is 
amended--
          (1) by inserting ``or 30 days after the court 
        determines that the debtor is subject to this 
        paragraph, whichever is later'' after ``90-day 
        period)''; and
          (2) by amending subparagraph (B) to read as follows:
                  ``(B) the debtor has commenced monthly 
                payments (which payments may, in the debtor's 
                sole discretion, notwithstanding section 
                363(c)(2) of this title, be made from rents or 
                other income generated before or after the 
                commencement of the case by or from the 
                property) to each creditor whose claim is 
                secured by such real estate (other than a claim 
                secured by a judgment lien or by an unmatured 
                statutory lien), which payments are in an 
                amount equal to interest at the then-applicable 
                nondefault contract rate of interest on the 
                value of the creditor's interest in the real 
                estate; or''.

            CHAPTER 3--CONDITIONAL APPLICATION OF AMENDMENTS

SEC. 291. LOSS OF JOBS.

  The amendments made by this subtitle shall not apply in a 
case under title 11 of the United States Code if the court 
determines that there is a substantial likelihood that the 
application of such amendments in such case would result in a 
loss of jobs in the operation of the debtor's business in such 
case.

               TITLE III--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 301. PETITION AND PROCEEDINGS RELATED TO PETITION.

  (a) Technical Amendment Relating to Municipalities.--Section 
921(d) of title 11, United States Code, is amended by inserting 
``notwithstanding section 301(b)'' before the period at the 
end.
  (b) Conforming Amendment.--Section 301 of title 11, United 
States Code, is amended--
          (1) by inserting ``(a)'' before ``A voluntary''; and
          (2) by amending the last sentence to read as follows:
  ``(b) The commencement of a voluntary case under a chapter of 
this title constitutes an order for relief under such 
chapter.''.

SEC. 302. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

  Section 901 of title 11, United States Code, is amended--
          (1) by inserting ``555, 556,'' after ``553,''; and
          (2) by inserting ``559, 560,'' after ``557,''.

                  TITLE IV--BANKRUPTCY ADMINISTRATION

                     Subtitle A--General Provisions

SEC. 401. ADEQUATE PREPARATION TIME FOR CREDITORS BEFORE THE MEETING OF 
                    CREDITORS IN INDIVIDUAL CASES.

  Section 341(a) of title 11, United States Code, is amended by 
inserting after the first sentence the following: ``If the 
debtor is an individual in a voluntary case under chapter 7, 
11, or 13, the meeting of creditors shall not be convened 
earlier than 60 days (or later than 90 days) after the date of 
the order for relief, unless the court, after notice and 
hearing, determines unusual circumstances justify an earlier 
meeting.''.

SEC. 402. 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 State or Federal nonbankruptcy 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 its representatives (which 
representatives may include an entity or an employee of an 
entity and may be a representative for more than 1 creditor) 
shall be permitted to appear at and participate in the meeting 
of creditors in a case under chapter 7 or 13 either alone or in 
conjunction with an attorney for the creditor. Nothing in this 
subsection shall be construed to require any creditor to be 
represented by an attorney at any meeting of creditors.''.

SEC. 403. FILING PROOFS OF CLAIM.

  Section 501 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(e) In a case under chapter 7 or 13, a proof of claim or 
interest is deemed filed under this section for any claim or 
interest that appears in the schedules filed under section 
521(a)(1) of this title, except a claim or interest that is 
scheduled as disputed, contingent, or unliquidated.''.

SEC. 404. AUDIT PROCEDURES.

  (a) Amendment.--Section 586 of title 28, United States Code, 
as amended by sections 111 and 240, is amended--
          (1) by amending subsection (a)(6) to read as follows:
          ``(6) make such reports as the Attorney General 
        directs, including the results of audits performed 
        under subsection (f),'';
          (2) by inserting at the end the following:
  ``(f)(1) 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, and, if applicable, 
section 111, of title 11 in individual cases filed under 
chapter 7 or 13 of such title. Such procedures shall--
          ``(A) establish a method of selecting appropriate 
        qualified persons to contract with the United States 
        trustee to perform such audits;
          ``(B) establish a method of randomly selecting cases 
        to be audited according to generally accepted audit 
        standards, provided that no less than 1 out of every 
        1000 cases in each Federal judicial district shall be 
        selected for audit and provided that such procedures 
        shall ensure that the United States trustee may select 
        such cases in which there is a high likelihood of 
        fraud;
          ``(C) require audits for schedules of income and 
        expenses which reflect higher than average variances 
        from the statistical norm of the district in which the 
        schedules were filed;
          ``(D) establish procedures for reporting the results 
        of such 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, and for providing public information no 
        less than annually on 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
          ``(E) establish procedures for fully funding such 
        audits.
  ``(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) of this subsection.
  ``(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 which are reasonably 
necessary to facilitate an audit to be made available for 
inspection and copying.
  ``(4) The report of each such audit 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). If a material misstatement of income or 
expenditures or of assets is reported, a statement specifying 
such misstatement shall be filed with the court and the United 
States trustee shall give notice thereof to the creditors in 
the case and, in an appropriate case, in the opinion of the 
United States trustee, 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 the enactment of 
this Act.

SEC. 405. GIVING CREDITORS FAIR NOTICE IN CHAPTER 7 AND 13 CASES.

  Section 342 of title 11, United States Code, is amended--
          (1) in subsection (c)--
                  (A) by striking ``, but the failure of such 
                notice to contain such information shall not 
                invalidate the legal effect of such notice''; 
                and
                  (B) by adding the following at the end:
``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 which is the 
current account number of the debtor with respect to any debt 
held by the creditor against the debtor, the debtor shall make 
a good faith effort to include such account number in any 
notice to the creditor required to be given under this title. 
If the creditor has specified to the debtor an address at which 
the creditor wishes to receive correspondence regarding the 
debtor's account, the debtor shall make a good faith effort to 
provide any notice required to be given under this title by the 
debtor to the creditor at such address. For the purposes of 
this section, `notice' shall include, but shall not be limited 
to, any correspondence from the debtor to the creditor after 
the commencement of the case, any statement of the debtor's 
intention under section 521(a)(2) of this title, notice of the 
commencement of any proceeding in the case to which the 
creditor is a party, and any notice of the hearing under 
section 1324.'';
          (2) by adding at the end the following:
  ``(d) At any time, a creditor in a case of an individual 
debtor 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. Five days after receipt of such notice, 
if the court or the debtor is required to give the creditor 
notice, such notice shall be given at that address.
  ``(e) An entity may file with the court a notice stating its 
address for notice in cases under chapters 7 and 13. After 30 
days following the filing of such 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 
(d) with respect to a particular case.
  ``(f) Notice given to a creditor other than as provided in 
this section shall not be effective notice until it has been 
brought to the attention of the creditor unless the creditor 
knew or should have known of such notice. 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 such department 
or person, notice will not be brought to the attention of the 
creditor until received by such person or department. No 
sanction under section 362(h) of this title or any other 
sanction which a court may impose on account of violations of 
the stay under section 362(a) of this title or failure to 
comply with section 542 or 543 of this title may be imposed on 
any action of the creditor unless the action takes place after 
the creditor has received notice of the commencement of the 
case effective under this section unless the creditor knew or 
should have known of such notice.''.

SEC. 406. DEBTOR TO PROVIDE TAX RETURNS AND OTHER INFORMATION.

  Section 521 of title 11, United States Code, is amended--
          (1) by inserting ``(a)'' before ``The'';
          (2) by amending paragraph (1) to read as follows:
          ``(1) file--
                  ``(A) a list of creditors, and
                  ``(B) unless the court orders otherwise--
                          ``(i) a schedule of assets and 
                        liabilities;
                          ``(ii) a schedule of current income 
                        and current expenditures;
                          ``(iii) a statement of the debtor's 
                        financial affairs;
                          ``(iv) 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;
                          ``(v) a statement of the amount of 
                        disposable income, itemized to show how 
                        calculated;
                          ``(vi) if applicable, any statement 
                        under paragraphs (3) and (4) of section 
                        109(h);
                          ``(vii) a statement disclosing any 
                        reasonably anticipated increase in 
                        income or expenditures over the next 12 
                        months; and
                          ``(viii) a certificate, if 
                        applicable--
                                  ``(I) of an attorney whose 
                                name is on the petition as the 
                                attorney for the debtor, or of 
                                any bankruptcy petition 
                                preparer who signed the 
                                petition pursuant to section 
                                110(b)(1) of this title, 
                                indicating that such attorney 
                                or bankruptcy petition preparer 
                                delivered to the debtor any 
                                notice required by section 
                                342(b)(1) of this title; 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;''; and
          (3) by adding at the end the following:
  ``(b) At any time, a creditor in a case of an individual 
debtor under chapter 7 or 13 may file with the court and serve 
on the debtor notice that the creditor requests the petition, 
schedules, and statement of financial affairs filed by the 
debtor in the case. At any time, a creditor in a case under 
chapter 13 of this title may file with the court and serve on 
the debtor notice that the creditor requests the plan filed by 
the debtor in the case. Within 10 days of the first such 
request in a case under this subsection for the petition, 
schedules, and statement of financial affairs and the first 
such request for the plan under this subsection, the debtor 
shall serve on that creditor a conformed copy of the requested 
documents or plan and any amendments thereto as of that date, 
and shall thereafter promptly serve on that creditor at the 
time filed with the court--
          ``(1) any requested document or plan which is not 
        filed with the court at the time requested; and
          ``(2) any amendment to any requested document or 
        plan.
  ``(c) An individual debtor in a case under chapter 7 or 13 
shall provide to the United States trustee, on the request of 
the United States trustee--
          ``(1) copies of all Federal tax returns (including 
        any schedules and attachments) filed by the debtor for 
        the 3 most recent tax years preceding the order for 
        relief;
          ``(2) at the time the debtor files them with the 
        Commissioner of Internal Revenue, all Federal tax 
        returns (including any schedules and attachments) for 
        the debtor's tax years ending while such case is 
        pending; and
          ``(3) at the time the debtor files them with the 
        Commissioner of Internal Revenue, all amendments to the 
        tax returns (including schedules and attachments) 
        described in subparagraphs (A) and (B).
  ``(d) A debtor in a case under chapter 13 of this title shall 
file, from a time which 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 then been confirmed, and thereafter on or 
before 45 days before each anniversary of the confirmation of 
the plan until the case is closed, 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 net income, 
showing how calculated. Such statement shall disclose the 
amount and sources of income of the debtor, the identity of any 
persons responsible with the debtor for the support of any 
dependents of the debtor, and any persons who contributed and 
the amount contributed to the household in which the debtor 
resides. Such tax returns, amendments and statement of income 
and expenditures shall be available to the United States 
trustee, any bankruptcy administrator, any trustee and any 
party in interest for inspection and copying.''.

SEC. 407. DISMISSAL FOR FAILURE TO FILE SCHEDULES TIMELY OR PROVIDE 
                    REQUIRED INFORMATION.

  Section 521 of title 11, United States Code, as amended by 
section 406, is amended by adding at the end the following:
  ``(e) Notwithstanding section 707(a) of this title, if an 
individual debtor in a voluntary case under chapter 7 or 13 
fails to provide all of the information required under 
subsections (a)(1) and (c)(1)(A) within 45 days after the 
filing of the petition, the case shall be automatically 
dismissed effective on the 46th day after the filing of the 
petition without the need for any order of court unless the 
court for good cause beyond the debtor's control orders 
otherwise, but any party in interest may request the court to 
enter an order dismissing the case and the court shall, if so 
requested, enter an order of dismissal within 5 days of such 
request if the court finds compelling justification for doing 
so.
  ``(f) If an individual debtor in a case under chapter 7 or 13 
fails to perform any of the duties imposed by subsections (b), 
(c)(1)(B), (c)(1)(C), and (d), any party in interest may 
request that the court order the debtor to comply. Within 10 
days of such request the court shall order that the debtor do 
so within a period of time set by the court no longer than 30 
days unless the court for good cause beyond the debtor's 
control orders otherwise. If the debtor does not comply with 
that order within the period of time set by the court, the 
court shall, on request of any party in interest certifying 
that the debtor has not so complied, enter an order dismissing 
the case within 5 days of such request.''.

SEC. 408. ADEQUATE TIME TO PREPARE FOR HEARING ON CONFIRMATION OF THE 
                    PLAN.

  Section 1324 of title 11, United States Code, is amended--
          (1) by striking ``After'' and inserting the 
        following:
  ``(a) Except as provided in subsection (b) and after''; and
          (2) by adding at the end the following:
  ``(b) The hearing on confirmation of the plan may be held not 
earlier than 20 days, and not later than 45 days, after the 
meeting of creditors under section 341(a) of this title.''.

SEC. 409. SENSE OF THE CONGRESS REGARDING EXPANSION OF RULE 9011 OF THE 
                    FEDERAL RULES OF BANKRUPTCY PROCEDURE.

  It is the sense of the Congress that rule 9011 of the Federal 
Rules of Bankruptcy Procedure (11 U.S.C. App) should be 
modified to include a requirement that all documents (including 
schedules), signed and unsigned, submitted to the court or to a 
trustee by debtors who represent themselves and debtors who are 
represented by an attorney be submitted only after the debtor 
or the debtor's attorney has made reasonable inquiry to verify 
that the information contained in such documents is well 
grounded in fact, and is warranted by existing law or a good-
faith argument for the extension, modification, or reversal of 
existing law.

SEC. 410. JURISDICTION OF COURTS OF APPEALS.

  (a) Jurisdiction.--Title 28 of the United States Code is 
amended--
          (1) by striking section 158;
          (2) by inserting after section 1292 the following:

``Sec. 1293. Bankruptcy appeals

  ``The courts of appeals (other the United States Court of 
Appeals for the Federal Circuit) shall have jurisdiction of 
appeals from the following:
          ``(1) Final orders and judgments of bankruptcy courts 
        entered under--
                  ``(A) section 157(b) of this title in core 
                proceedings arising under title 11, or arising 
                in or related to a case under title 11; or
                  ``(B) section 157(c)(2) of this title in 
                proceedings referred to such courts.
          ``(2) Final orders and judgments of district courts 
        entered under section 157 of this title in--
                  ``(A) core proceedings arising under title 
                11, or arising in or related to a case under 
                title 11; or
                  ``(B) proceedings that are not core 
                proceedings, but that are otherwise related to 
                a case under title 11.
          ``(3) Orders and judgments of bankruptcy courts or 
        district courts entered under section 105 of title 11, 
        or the refusal to enter an order or judgment under such 
        section.
          ``(4) Orders of bankruptcy courts or district courts 
        entered under section 1104(a) or 1121(d) of title 11, 
        or the refusal to enter an order under such section.
          ``(5) An interlocutory order of a bankruptcy court or 
        district court entered in a case under title 11, in a 
        proceeding arising under title 11, or in a proceeding 
        arising in or related to a case under title 11, if--
                  ``(A) such court is of the opinion that--
                          ``(i) such order involves a 
                        controlling question of law as to which 
                        there is substantial ground for 
                        difference of opinion; and
                          ``(ii) an immediate appeal from such 
                        order may materially advance the 
                        ultimate termination of such case or 
                        such proceeding; or
                  ``(B) the court of appeals that would have 
                jurisdiction of an appeal of a final order 
                entered in such case or such proceeding 
                permits, in its discretion, appeal to be taken 
                from such interlocutory order.''; and
          (3) in--
                  (A) the table of sections for chapter 6 by 
                striking the item relating to section 158; and
                  (B) the table of sections for chapter 83 by 
                inserting after the item relating to section 
                1292 the following:

``1293. Bankruptcy appeals.''.

  (b) Conforming Amendments.--(1) Section 305(c) of title 11, 
the United States Code, is amended by striking ``158(d), 1291, 
or 1292'' and inserting ``1291, 1292, or 1293''.
  (2) Title 28, United States Code, is amended--
          (A) in subsections (b)(1) and (c)(2) of section 157 
        by striking ``section 158'' and inserting ``section 
        1293'';
          (B) in section 1334(d) by striking ``158(d), 1291, or 
        1292'' and inserting ``1291, 1292, or 1293''; and
          (C) in section 1452(b) by striking ``158(d), 1291, or 
        1292'' and inserting ``1291, 1292, or 1293''.

SEC. 411. ESTABLISHMENT OF OFFICIAL FORMS.

  The Judicial Conference of the United States shall establish 
official forms to facilitate compliance with the amendments 
made by sections 101 and 102.

SEC. 412. ELIMINATION OF CERTAIN FEES PAYABLE IN CHAPTER 11 BANKRUPTCY 
                    CASES.

  (a) Amendments.--Section 1930(a)(6) of title 28, United 
States Code, is amended--
          (1) in the 1st sentence by striking ``until the case 
        is converted or dismissed, whichever occurs first'', 
        and
          (2) in the 2d sentence--
                  (A) by striking ``The'' and inserting ``Until 
                the plan is confirmed or the case is converted 
                (whichever occurs first) the'', and
                  (B) by striking ``less than $300,000;'' and 
                inserting ``less than $300,000. Until the case 
                is converted, dismissed, or closed (whichever 
                occurs first and without regard to confirmation 
                of the plan) the fee shall be''.
  (b) Delayed Effective Date.--The amendments made by 
subsection (a) shall take effect on October 1, 1999.

                      Subtitle B--Data Provisions

SEC. 441. IMPROVED BANKRUPTCY STATISTICS.

  (a) Amendment.--Title 28, United States Code, is amended by 
adding after section 158 the following new section:

``Sec. 159. Bankruptcy statistics

  ``The Director of the Executive Office for United States 
Trustees shall compile statistics regarding individual debtors 
with primarily consumer debts seeking relief under chapters 7, 
11, and 13 of title 11. Such statistics shall be in a form 
prescribed by the Executive Office for United States Trustees 
in consultation with the Administrative Office of the United 
States Courts. The Office shall compile such statistics, and 
make them public, and report annually to the Congress on the 
information collected, and on its analysis thereof, no later 
than October 31 of each year. Such compilation shall be 
itemized by chapter of title 11, shall be presented in the 
aggregate and for each district, and shall include the 
following:
          ``(1) Total assets and total liabilities of such 
        debtors, and in each category of assets and 
        liabilities, as reported in the schedules prescribed 
        pursuant to section 2075 of this title and filed by 
        such debtors.
          ``(2) The current total monthly income, projected 
        monthly net income, and average income and average 
        expenses of such debtors as reported on the schedules 
        and statements the debtor has filed under sections 111, 
        521, and 1322 of title 11.
          ``(3) 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.
          ``(4) The average time between the filing of the 
        petition and the closing of the case.
          ``(5) The number of cases in the reporting period in 
        which a reaffirmation was filed and the total number of 
        reaffirmations filed in that period, and of those cases 
        in which a reaffirmation was filed, the number in which 
        the debtor was not represented by an attorney, and of 
        those the number of cases in which the reaffirmation 
        was approved by the court.
          ``(6) With respect to cases filed under chapter 13 of 
        title 11--
                  ``(A) the number of cases in which a final 
                order was entered determining the value of 
                property securing a claim less than the claim, 
                and the total number of such orders in the 
                reporting period; and
                  ``(B) the number of cases dismissed for 
                failure to make payments under the plan.
          ``(7) The number of cases in which the debtor filed 
        another case within the 6 years previous to the 
        filing.''.
  (b) Effective Date.--The amendment made by subsection (a) 
shall take effect 18 months after the date of the enactment of 
this Act.

SEC. 442. BANKRUPTCY DATA.

  (a) Amendment.--Title 28 of the United States Code is amended 
by inserting after section 589a the following:

``Sec. 589b. Bankruptcy data

  ``(a) Rules.--The Attorney General shall, within a reasonable 
time after the effective date of this section, issue rules 
requiring uniform forms for (and from time to time thereafter 
to appropriately modify and approve)--
          ``(1) final reports by trustees in cases under 
        chapters 7, 12, and 13 of title 11; and
          ``(2) periodic reports by debtors in possession or 
        trustees, as the case may be, in cases under chapter 11 
        of title 11.
  ``(b) Reports.--All reports referred to in subsection (a) 
shall be designed (and the requirements as to place and manner 
of filing shall be established) so as to facilitate compilation 
of data and maximum possible access of the public, both by 
physical inspection at 1 or more central filing locations, and 
by electronic access through the Internet or other appropriate 
media.
  ``(c) Required Information.--The information required to be 
filed in the reports referred to in subsection (b) shall be 
that which is in the best interests of debtors and creditors, 
and in the public interest in reasonable and adequate 
information to evaluate the efficiency and practicality of the 
Federal bankruptcy system. In issuing rules proposing the forms 
referred to in subsection (a), the Attorney General shall 
strike the best achievable practical balance between--
          ``(1) the reasonable needs of the public for 
        information about the operational results of the 
        Federal bankruptcy system; and
          ``(2) economy, simplicity, and lack of undue burden 
        on persons with a duty to file reports.
  ``(d) Final Reports.--Final reports proposed for adoption by 
trustees under chapters 7, 12, and 13 of title 11 shall, in 
addition to such other matters as are required by law or as the 
Attorney General in the discretion of the Attorney General, 
shall propose, include with respect to a case under such 
title--
          ``(1) information about the length of time the case 
        was pending;
          ``(2) assets abandoned;
          ``(3) assets exempted;
          ``(4) receipts and disbursements of the estate;
          ``(5) expenses of administration;
          ``(6) claims asserted;
          ``(7) claims allowed; and
          ``(8) distributions to claimants and claims 
        discharged without payment;
in each case by appropriate category and, in cases under 
chapters 12 and 13 of title 11, date of confirmation of the 
plan, each modification thereto, and defaults by the debtor in 
performance under the plan.
  ``(e) Periodic Reports.--Periodic reports proposed for 
adoption by trustees or debtors in possession under chapter 11 
of title 11 shall, in addition to such other matters as are 
required by law or as the Attorney General, in the discretion 
of the Attorney General, shall propose, include--
          ``(1) information about the standard industry 
        classification, published by the Department of 
        Commerce, for the businesses conducted by the debtor;
          ``(2) length of time the case has been pending;
          ``(3) number of full-time employees as at the date of 
        the order for relief and at end of each reporting 
        period since the case was filed;
          ``(4) cash receipts, cash disbursements and 
        profitability of the debtor for the most recent period 
        and cumulatively since the date of the order for 
        relief;
          ``(5) compliance with title 11, whether or not tax 
        returns and tax payments since the date of the order 
        for relief have been timely filed and made;
          ``(6) all professional fees approved by the court in 
        the case for the most recent period and cumulatively 
        since the date of the order for relief (separately 
        reported, in for the professional fees incurred by or 
        on behalf of the debtor, between those that would have 
        been incurred absent a bankruptcy case and those not); 
        and
          ``(7) plans of reorganization filed and confirmed 
        and, with respect thereto, by class, the recoveries of 
        the holders, expressed in aggregate dollar values and, 
        in the case of claims, as a percentage of total claims 
        of the class allowed.''.
  (b) Technical Amendment.--The table of sections of chapter 39 
of title 28, United States Code, is amended by adding at the 
end the following:

``589b. Bankruptcy data.''.

SEC. 443. SENSE OF THE CONGRESS REGARDING AVAILABILITY OF BANKRUPTCY 
                    DATA.

  It is the sense of the Congress that--
          (1) the national policy of the United States should 
        be that all data held by bankruptcy clerks in 
        electronic form, to the extent such data reflects only 
        public records (as defined in section 107 of title 11 
        of the United States Code), should be released in a 
        usable electronic form in bulk to the public subjectto 
such appropriate privacy concerns and safeguards as the Judicial 
Conference of the United States may determine; and
          (2) there should be established a bankruptcy data 
        system in which--
                  (A) a single set of data definitions and 
                forms are used to collect data nationwide; and
                  (B) data for any particular bankruptcy case 
                are aggregated in the same electronic record.

                        TITLE V--TAX PROVISIONS

SEC. 501. TREATMENT OF CERTAIN LIENS.

  (a) Treatment of Certain Liens.--Section 724 of title 11, 
United States Code, is amended--
          (1) in subsection (b), in the matter preceding 
        paragraph (1), by inserting ``(other than to the extent 
        that there is a properly perfected unavoidable tax lien 
        arising in connection with an ad valorem tax on real or 
        personal property of the estate)'' after ``under this 
        title'';
          (2) in subsection (b)(2), after ``507(a)(1)'', insert 
        ``(except that such expenses, other than claims for 
        wages, salaries, or commissions which arise after the 
        filing of a petition, shall be limited to expenses 
        incurred under chapter 7 of this title and shall not 
        include expenses incurred under chapter 11 of this 
        title)''; and
          (3) by adding at the end the following:
  ``(e) Before subordinating a tax lien on real or personal 
property of the estate, the trustee shall--
          ``(1) exhaust the unencumbered assets of the estate; 
        and
          ``(2) in a manner consistent with section 506(c) of 
        this title, recover from property securing an allowed 
        secured claim the reasonable, necessary costs and 
        expenses of preserving or disposing of that property.
  ``(f) Notwithstanding the exclusion of ad valorem tax liens 
set forth in this section and subject to the requirements of 
subsection (e)--
          ``(1) claims for wages, salaries, and commissions 
        that are entitled to priority under section 507(a)(3) 
        of this title; or
          ``(2) claims for contributions to an employee benefit 
        plan entitled to priority under section 507(a)(4) of 
        this title,
may be paid from property of the estate which secures a tax 
lien, or the proceeds of such property.''.
  (b) Determination of Tax Liability.--Section 505(a)(2) of 
title 11, United States Code, is amended--
          (1) in subparagraph (A), by striking ``or'' at the 
        end;
          (2) in subparagraph (B), by striking the period at 
        the end and inserting ``; or''; and
          (3) by adding at the end the following:
          ``(C) the amount or legality of any amount arising in 
        connection with an ad valorem tax on real or personal 
        property of the estate, if the applicable period for 
        contesting or redetermining that amount under any law 
        (other than a bankruptcy law) has expired.''.

SEC. 502. 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, exempt property 
shall be liable for debts of a kind specified in section 
507(a)(7) of this title'' before the semicolon at the end.

SEC. 503. EFFECTIVE NOTICE TO GOVERNMENT.

  (a) Effective Notice to Governmental Units.--Section 342 of 
title 11, United States Code, as amended by section 405, is 
amended by adding at the end the following:
  ``(g) If a debtor lists a governmental unit as a creditor in 
a list or schedule, any notice required to be given by the 
debtor under this title, any rule, any applicable law, or any 
order of the court, shall identify the department, agency, or 
instrumentality through which the debtor is indebted. The 
debtor shall identify (with information such as a taxpayer 
identification number, loan, account or contract number, or 
real estate parcel number, where applicable), and describe the 
underlying basis for the governmental unit's claim. If the 
debtor's liability to a governmental unit arises from a debt or 
obligation owed or incurred by another individual, entity, or 
organization, or under a different name, the debtor shall 
identify such individual, entity, organization, or name.
  ``(h) The clerk shall keep and update quarterly, in the form 
and manner as the Director of the Administrative Office of the 
United States Courts prescribes, and make available to debtors, 
a register in which a governmental unit may designate a safe 
harbor mailing address for service of notice in cases pending 
in the district. A governmental unit may file a statement with 
the clerk designating a safe harbor address to which notices 
are to be sent, unless such governmental unit files a notice of 
change of address.''.
  (b) Adoption of Rules Providing Notice.--The Advisory 
Committee on Bankruptcy Rules of the Judicial Conference shall, 
within a reasonable period of time after the date of the 
enactment of this Act, propose for adoption enhanced rules for 
providing notice to State, Federal, and local government units 
that have regulatory authority over the debtor or which may be 
creditors in the debtor's case. Such rules shall be reasonably 
calculated to ensure that notice will reach the representatives 
of the governmental unit, or subdivision thereof, who will be 
the proper persons authorized to act upon the notice. At a 
minimum, the rules should require that the debtor--
          (1) identify in the schedules and the notice, the 
        subdivision, agency, or entity in respect of which such 
        notice should be received;
          (2) provide sufficient information (such as case 
        captions, permit numbers, taxpayer identification 
        numbers, or similar identifying information) to permit 
        the governmental unit or subdivision thereof, entitled 
        to receive such notice, to identify the debtor or the 
        person or entity on behalf of which the debtor is 
        providing notice where the debtor may be a successor in 
        interest or may not be the same as the person or entity 
        which incurred the debt or obligation; and
          (3) identify, in appropriate schedules, served 
        together with the notice, the property in respect of 
        which the claim or regulatory obligation may have 
        arisen, if any, the nature of such claim or regulatory 
        obligation and the purpose for which notice is being 
        given.
  (c) Effect of Failure of Notice.--Section 342 of title 11, 
United States Code, as amended by subsection (a) and section 
405, is amended by adding at the end the following:
  ``(i)(1) A notice that does not comply with subsections (d) 
and (e) shall have no effect unless the debtor demonstrates, by 
clear and convincing evidence, that timely notice was given in 
a manner reasonably calculated to satisfy the requirements of 
this section was given, and that--
          ``(A) either the notice was timely sent to the safe 
        harbor address provided in the register maintained by 
        the clerk of the district in which the matter or 
        proceeding with respect to which the notice was 
        provided was pending for such purposes; or
          ``(B) no safe harbor address was provided in such 
        list for the governmental unit and that an officer of 
        the governmental unit who is responsible for the matter 
        or claim had actual knowledge of the case in sufficient 
        time to act or the taxpayer made a good faith effort to 
        provide the required notice under subsections (d) and 
        (e).
  ``(2) No sanction under section 362(h) of this title or any 
other sanction which a court may impose on account of 
violations of the stay under section 362(a) of this title or 
failure to comply with section 542 or 543 of this title may be 
imposed unless the action takes place after notice of the 
commencement of the case as required by this section has been 
received.''.

SEC. 504. NOTICE OF REQUEST FOR A DETERMINATION OF TAXES.

  Section 505(b) of title 11, United States Code, is amended by 
striking ``Unless'' at the beginning of the second sentence 
thereof and inserting ``If the request is made in the manner 
designated by the governmental unit and the taxing authority 
has place in file with the clerk of the court a description of 
the manner in which the governmental unit requires such request 
and unless''.

SEC. 505. RATE OF INTEREST ON TAX CLAIMS.

  Chapter 5 of title 11, United States Code, is amended by 
adding at the end the following:

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

  ``Notwithstanding any provision of this title that requires 
the payment of interest on a claim, if interest is required to 
be paid on a tax claim, the rate of interest shall be as 
follows:
          ``(1) In the case of ad valorem tax claims, whether 
        secured or unsecured, other unsecured tax claims where 
        interest is required to be paid under section 726(a)(5) 
        of this title and secured tax claims the rate shall be 
        determined under applicable nonbankruptcy law.
          ``(2) In the case of unsecured claims for taxes 
        arising before the date of the order for relief and 
        paid under a plan of reorganization, the minimum rate 
        of interest to be applied during the period after the 
        filing of the petition shall be the Federal short-term 
        rate rounded to the nearest full percent, determined 
        under section 1274(d) of the Internal Revenue Code of 
        1986, for the calendar month in which the plan is 
        confirmed, plus 3 percentage points.''.

SEC. 506. TOLLING OF PRIORITY OF TAX CLAIM TIME PERIODS.

  Section 507(a)(9)(A) of title 11, United States Code, as so 
redesignated, is amended--
          (1) in clause (i) by inserting after ``petition'' and 
        before the semicolon ``, plus any time, plus 6 months, 
        during which the stay of proceedings was in effect in a 
        prior case under this title''; and
          (2) amend clause (ii) to read as follows:
                          ``(ii) assessed within 240 days 
                        before the date of the filing of the 
                        petition, exclusive of--
                                  ``(I) any time plus 30 days 
                                during which an offer in 
                                compromise with respect of such 
                                tax, was pending or in effect 
                                during such 240-day period;
                                  ``(II) any time plus 30 days 
                                during which an installment 
                                agreement with respect of such 
                                tax was pending or in effect 
                                during such 240-day period, up 
                                to 1 year; and
                                  ``(III) any time plus 6 
                                months during which a stay of 
                                proceedings against collections 
                                was in effect in a prior case 
                                under this title during such 
                                240-day period.''.

SEC. 507. ASSESSMENT DEFINED.

  (a) Assessment Defined for Priority Purposes.--Section 101 of 
title 11, United States Code, is amended by inserting after 
paragraph (2) the following:
          ``(3) `assessment'--
                  ``(A) for purposes of State and local taxes, 
                means that point in time when all actions 
                required have been taken so that thereafter a 
                taxing authority may commence an action to 
                collect the tax, and
                  ``(B) for Federal tax purposes has the 
                meaning given such term in the Internal Revenue 
                Code of 1986;
        and `assessed' and `assessable' shall be interpreted in 
        light of the definition of assessment in this 
        paragraph;''.
  (b) Assessment Defined for the Stay of Proceedings.--Section 
362(b)(9)(D) of title 11, United States Code, is amended by 
inserting after ``the making of an assessment'' the following: 
``as defined by applicable nonbankruptcy law notwithstanding 
the definition of an `assessment' elsewhere in this title''.

SEC. 508. CHAPTER 13 DISCHARGE OF FRAUDULENT AND OTHER TAXES.

  Section 1328(a)(2) of title 11, United States Code, is 
amended by inserting ``(1) to the extent that the debtor made a 
fraudulent return or fraudulently attempted in any manner to 
evade such taxes,'' after ``paragraph''.

SEC. 509. CHAPTER 11 DISCHARGE OF FRAUDULENT TAXES.

  Section 1141(d) of title 11, United States Code, as amended 
by section 119A, is amended by adding at the end the following:
  ``(6) Notwithstanding the provisions of paragraph (1), the 
confirmation of a plan does not discharge a debtor which is a 
corporation from any debt for a tax or customs duty with 
respect to which the debtor made a fraudulent return or 
willfully attempted in any manner to evade or defeat such 
tax.''.

SEC. 510. THE STAY OF TAX PROCEEDINGS.

  (a) The Section 362 Stay Limited to Prepetition Taxes.--
Section 362(a)(8) of title 11, United States Code, is amended 
by striking the period at the end and inserting ``, in respect 
of a tax liability for a taxable period ending before the order 
for relief.''.
  (b) The Appeal of Tax Court Decisions Permitted.--Section 
362(b)(9) of title 11, United States Code, is amended--
          (1) in subparagraph (C) by striking ``or'' at the 
        end,
          (2) in subparagraph (D) by striking the period at the 
        end and inserting ``; or'', and
          (3) by adding at the end the following:
                  ``(E) the appeal of a decision by a court or 
                administrative tribunal which determines a tax 
                liability of the debtor without regard to 
                whether such determination was made prepetition 
                or postpetition.''.

SEC. 511. PERIODIC PAYMENT OF TAXES IN CHAPTER 11 CASES.

  Section 1129(a)(9) of title 11, United States Code, is 
amended--
          (1) in subparagraph (B) by striking ``and'' at the 
        end; and
          (2) in subparagraph (C)--
                  (A) by striking ``deferred cash payments, 
                over a period not exceeding six years after the 
                date of assessment of such claim,'' and 
                inserting ``regular installment payments in 
                cash, but in no case with a balloon provision, 
                and no more than three months apart, beginning 
                no later than the effective date of the plan 
                and ending on the earlier of five years after 
                the petition date or the last date payments are 
                to be made under the plan to unsecured 
                creditors,'';
                  (B) by striking the period at the end and 
                inserting ``; and''; and
          (3) by adding at the end the following:
                  ``(D) with respect to a secured claim which 
                would be described in section 507(a)(8) of this 
                title but for its secured status, the holder of 
                such claim will receive on account of such 
                claim cash payments of not less than is 
                required in subparagraph (C) and over a period 
                no greater than is required in such 
                subparagraph.''.

SEC. 512. THE AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

  Section 545(2) of title 11, United States Code, is amended by 
striking the semicolon at the end and inserting ``, except 
where such purchaser is a purchaser described in section 6323 
of the Internal Revenue Code of 1986 or similar provision of 
State or local law;''.

SEC. 513. PAYMENT OF TAXES IN THE CONDUCT OF BUSINESS.

  (a) Payment of Taxes Required.--Section 960 of title 28, 
United States Code, is amended--
          (1) by inserting ``(a)'' before ``Any''; and
          (2) by adding at the end the following:
  ``(b) Such taxes shall be paid when due in the conduct of 
such business unless--
          ``(1) the tax is a property tax secured by a lien 
        against property that is abandoned within a reasonable 
        time after the lien attaches, by the trustee of a 
        bankruptcy estate, pursuant to section 554 of title 11; 
        or
          ``(2) payment of the tax is excused under a specific 
        provision of title 11.
  ``(c) In a case pending under chapter 7 of title 11, payment 
of a tax may be deferred until final distribution is made under 
section 726 of title 11 if--
          ``(1) the tax was not incurred by a trustee duly 
        appointed under chapter 7 of title 11; or
          ``(2) before the due date of the tax, the court has 
        made a finding of probable insufficiency of funds of 
        the estate to pay in full the administrative expenses 
        allowed under section 503(b) of title 11 that have the 
        same priority in distribution under section 726(b) of 
        title 11 as such tax.''.
  (b) Payment of Ad Valorem Taxes Required.--Section 
503(b)(1)(B) of title 11, United States Code, is amended in 
clause (i) by inserting after ``estate,'' and before ``except'' 
the following: ``whether secured or unsecured, including 
property taxes for which liability is in rem only, in personam 
or both,''.
  (c) Request for Payment of Administrative Expense Taxes 
Eliminated.--Section 503(b)(1) of title 11, United States Code, 
is amended by adding at the end the following:
          ``(D) notwithstanding the requirements of subsection 
        (a) of this section, a governmental unit shall not be 
        required to file a request for the payment of a claim 
        described in subparagraph (B) or (C);''.
  (d) Payment of Taxes and Fees as Secured Claims.--Section 506 
of title 11, United States Code, is amended--
          (1) in subsection (b) by inserting ``or State 
        statute'' after ``agreement''; and
          (2) in subsection (c) by inserting ``, including the 
        payment of all ad valorem property taxes in respect of 
        the property'' before the period at the end.

SEC. 514. TARDILY FILED PRIORITY TAX CLAIMS.

  Section 726(a)(1) of title 11, United States Code, is amended 
by striking ``before the date on which the trustee commences 
distribution under this section'' and inserting ``on or before 
the earlier of 10 days after the mailing to creditors of the 
summary of the trustee's final report or the date on which the 
trustee commences final distribution under this section''.

SEC. 515. INCOME TAX RETURNS PREPARED BY TAX AUTHORITIES.

  Section 523(a)(1)(B) of title 11, United States Code, is 
amended--
          (1) by inserting ``or equivalent report or notice,'' 
        after ``a return,'';
          (2) in clause (i)--
                  (A) by inserting ``or given'' after 
                ``filed''; and
                  (B) by striking ``or'' at the end;
          (3) in clause (ii)
                  (A) by inserting ``or given'' after 
                ``filed'';
                  (B) by inserting ``, report, or notice'' 
                after ``return''; and
          (4) by adding at the end the following:
                          ``(iii) for purposes of this 
                        subsection, a return--
                                  ``(I) must satisfy the 
                                requirements of applicable 
                                nonbankruptcy law, and includes 
                                a return prepared pursuant to 
                                section 6020(a) of the Internal 
                                Revenue Code of 1986, or 
                                similar State or local law, or 
                                a written stipulation to a 
                                judgment entered by a 
                                nonbankruptcy tribunal, but 
                                does not include a return made 
                                pursuant to section 6020(b) of 
                                the Internal Revenue Code of 
                                1986, or similar State or local 
                                law, and
                                  ``(II) must have been filed 
                                in a manner permitted by 
                                applicable nonbankruptcy law; 
                                or''.

SEC. 516. THE DISCHARGE OF THE ESTATE'S LIABILITY FOR UNPAID TAXES.

  Section 505(b) of title 11, United States Code, is amended in 
the second sentence by inserting ``the estate,'' after 
``misrepresentation,''.

SEC. 517. REQUIREMENT TO FILE TAX RETURNS TO CONFIRM CHAPTER 13 PLANS.

  (a) Filing of Prepetition Tax Returns Required for Plan 
Confirmation.--Section 1325(a) of title 11, United States Code, 
as amended by section 146, is amended--
          (1) in paragraph (6) by striking ``and'' at the end;
          (2) in paragraph (7) by striking the period at the 
        end and inserting ``; and''; and
          (3) by adding at the end the following:
          ``(8) if the debtor has filed all Federal, State, and 
        local tax returns as required by section 1308 of this 
        title.''.
  (b) Additional Time Permitted for Filing Tax Returns.--(1) 
Chapter 13 of title 11, United States Code, is amended by 
adding at the end the following:

``Sec. 1308. Filing of prepetition tax returns

  ``(a) On or before the day prior to the day on which the 
first meeting of the creditors is convened under section 341(a) 
of this title, the debtor shall have filed with appropriate tax 
authorities all tax returns for all taxable periods ending in 
the 6-year period ending on the date of filing of the petition 
which the debtor had been required to file under applicable 
nonbankruptcy law.
  ``(b) If the tax returns required by subsection (a) have not 
been filed by the date on which the first meeting of creditors 
is convened under section 341(a) of this title, the trustee may 
continue such meeting for a reasonable period of time, to allow 
the debtor additional time to file any unfiled returns, but 
such additional time shall be no more than--
          ``(1) for returns that are past due as of the date of 
        the filing of the petition, 120 days from such date,
          ``(2) for returns which are not past due as of the 
        date of the filing of the petition, the later of 120 
        days from such date or the due date for such returns 
        under the last automatic extension of time for filing 
        such returns to which the debtor is entitled, and for 
        which request has been timely made, according to 
        applicable nonbankruptcy law, and
          ``(3) upon notice and hearing, and order entered 
        before the lapse of any deadline fixed according to 
        this subsection, where the debtor demonstrates, by 
        clear and convincing evidence, that the failure to file 
        the returns as required is because of circumstances 
        beyond the control of the debtor, the court may extend 
        the deadlines set by the trustee as provided in this 
        subsection for--
                  ``(A) a period of no more than 30 days for 
                returns described in paragraph (1) of this 
                subsection, and
                  ``(B) for no more than the period of time 
                ending on the applicable extended due date for 
                the returns described in paragraph (2).
  ``(c) For purposes of this section only, a return includes a 
return prepared pursuant to section 6020 (a) or (b) of the 
Internal Revenue Code of 1986 or similar State or local law, or 
a written stipulation to a judgment entered by a nonbankruptcy 
tribunal.''.
  (2) The table of sections of chapter 13 of title 11, United 
States Code, is amended by inserting after the item relating to 
section 1307 the following:

``1308. Filing of prepetition tax returns.''.

  (c) Dismissal or Conversion on Failure To Comply.--Section 
1307 of title 11, United States Code, is amended--
          (1) by redesignating subsections (e) and (f) as 
        subsections (f) and (g), respectively, and
          (2) by inserting after subsection (d) the following:
  ``(e) Upon the failure of the debtor to file tax returns 
under section 1308 of this title, on request of a party in 
interest or the United States trustee and after notice and a 
hearing, the court shall dismiss a case or convert a case under 
this chapter to a case under chapter 7 of this title, whichever 
is in the best interests of creditors and the estate.''.
  (d) Timely Filed Claims.--Section 502(b)(9) of title 11, 
United States Code, is amended by striking the period at the 
end and inserting ``, and except that in a case under chapter 
13 of this title, a claim of a governmental unit for a tax in 
respect of a return filed under section 1308 of this title 
shall be timely if it is filed on or before 60 days after such 
return or returns were filed as required.''.
  (e) Rules for Objections to Claims and to Confirmation.--It 
is the sense of Congress that the Advisory Committee on 
Bankruptcy Rules of the Judicial Conference should, within a 
reasonable period of time after the date of the enactment of 
this Act, propose for adoption amended Federal Rules of 
Bankruptcy Procedure which provide that--
          (1) notwithstanding the provisions of Rule 3015(f), 
        in cases under chapter 13 of title 11, United States 
        Code, a governmental unit may object to the 
        confirmation of a plan on or before 60 days after the 
        debtor files all tax returns required under sections 
        1308 and 1325(a)(7) of title 11, United States Code, 
        and
          (2) in addition to the provisions of Rule 3007, in a 
        case under chapter 13 of title 11, United States Code, 
        no objection to a tax in respect of a return required 
        to be filed under such section 1308 shall be filed 
        until such return has been filed as required.

SEC. 518. STANDARDS FOR TAX DISCLOSURE.

  Section 1125(a) of title 11, United States Code, is amended 
in paragraph (1)--
          (1) by inserting after ``records,'' the following: 
        ``including a full discussion of the potential material 
        Federal, State, and local tax consequences of the plan 
        to the debtor, any successor to the debtor, and a 
        hypothetical investor domiciled in the State in which 
        the debtor resides or has its principal place of 
        business typical of the holders of claims or interests 
        in the case,'',
          (2) by inserting ``such'' after ``enable'', and
          (3) by striking ``reasonable'' where it appears after 
        ``hypothetical'' and by striking ``typical of holders 
        of claims or interests'' after ``investor''.

SEC. 519. SETOFF OF TAX REFUNDS.

  Section 362(b) of title 11, United States Code, as amended by 
sections 130, 146, and 150 is amended--
          (1) in paragraph (17) by striking ``or'',
          (2) in paragraph (18) by striking the period at the 
        end and inserting ``; or'', and
          (3) by inserting after paragraph (18) the following:
          ``(19) under subsection (a) of the setoff of an 
        income tax refund, by a governmental unit, in respect 
        of a taxable period which ended before the order for 
        relief against an income tax liability for a taxable 
        period which also ended before the order for relief, 
        unless prior to such setoff the debt is listed by the 
        debtor as disputed, contingent, or unliquidated.''.

            TITLE VI--ANCILLARY AND OTHER CROSS-BORDER CASES

SEC. 601. AMENDMENT TO ADD A CHAPTER 6 TO TITLE 11, UNITED STATES CODE.

  (a) In General.--Title 11, United States Code, is amended by 
inserting after chapter 5 the following:

          ``CHAPTER 6--ANCILLARY AND OTHER CROSS-BORDER CASES

``Sec.
``601. Purpose and scope of application.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``602. Definitions.
``603. International obligations of the United States.
``604. Commencement of ancillary case.
``605. Authorization to act in a foreign country.
``606. Public policy exception.
``607. Additional assistance.
``608. Interpretation.

``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                  COURT

``609. Right of direct access.
``610. Limited jurisdiction.
``611. Commencement of bankruptcy case under section 301 or 303.
``612. Participation of a foreign representative in a case under this 
          title.
``613. Access of foreign creditors to a case under this title.
``614. Notification to foreign creditors concerning a case under this 
          title.

    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``615. Application for recognition of a foreign proceeding.
``616. Presumptions concerning recognition.
``617. Order recognizing a foreign proceeding.
``618. Subsequent information.
``619. Relief that may be granted upon petition for recognition of a 
          foreign proceeding.
``620. Effects of recognition of a foreign main proceeding.
``621. Relief that may be granted upon recognition of a foreign 
          proceeding.
``622. Protection of creditors and other interested persons.
``623. Actions to avoid acts detrimental to creditors.
``624. Intervention by a foreign representative.

      ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                             REPRESENTATIVES

``625. Cooperation and direct communication between the court and 
          foreign courts or foreign representatives.
``626. Cooperation and direct communication between the trustee and 
          foreign courts or foreign representatives.
``627. Forms of cooperation.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``628. Commencement of a case under this title after recognition of a 
          foreign main proceeding.
``629. Coordination of a case under this title and a foreign proceeding.
``630. Coordination of more than 1 foreign proceeding.
``631. Presumption of insolvency based on recognition of a foreign main 
          proceeding.
``632. Rule of payment in concurrent proceedings.

``Sec. 601. Purpose and scope of application

  ``(a) The purpose of this chapter is to incorporate the Model 
Law on Cross-Border Insolvency so as to provide effective 
mechanisms for dealing with cases of cross-border insolvency 
with the objectives of--
          ``(1) cooperation between--
                  ``(A) United States courts, United States 
                Trustees, trustees, examiners, debtors, and 
                debtors in possession; and
                  ``(B) the courts and other competent 
                authorities of foreign countries involved in 
                cross-border insolvency cases;
          ``(2) greater legal certainty for trade and 
        investment;
          ``(3) fair and efficient administration of cross-
        border insolvencies that protects the interests of all 
        creditors, and other interested entities, including the 
        debtor;
          ``(4) protection and maximization of the value of the 
        debtor's assets; and
          ``(5) facilitation of the rescue of financially 
        troubled businesses, thereby protecting investment and 
        preserving employment.
  ``(b) This chapter applies where--
          ``(1) assistance is sought in the United States by a 
        foreign court or a foreign representative in connection 
        with a foreign proceeding;
          ``(2) assistance is sought in a foreign country in 
        connection with a case under this title;
          ``(3) a foreign proceeding and a case under this 
        title with respect to the same debtor are taking place 
        concurrently; or
          ``(4) creditors or other interested persons in a 
        foreign country have an interest in requesting the 
        commencement of, or participating in, a case or 
        proceeding under this title.
  ``(c) This chapter does not apply to--
          ``(1) a proceeding concerning an entity identified by 
        exclusion in subsection 109(b); or
          ``(2) an individual, or to an individual and such 
        individual's spouse, who have debts within the limits 
        specified in under section 109(e) and who are citizens 
        of the United States or aliens lawfully admitted for 
        permanent residence in the United States.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 602. Definitions

  ``For the purposes of this chapter, the term--
          ``(1) `debtor' means an entity that is the subject of 
        a foreign proceeding;
          ``(2) `establishment' means any place of operations 
        where the debtor carries out a nontransitory economic 
        activity;
          ``(3) `foreign court' means a judicial or other 
        authority competent to control or supervise a foreign 
        proceeding;
          ``(4) `foreign main proceeding' means a foreign 
        proceeding taking place in the country where the debtor 
        has the center of its main interests;
          ``(5) `foreign nonmain proceeding' means a foreign 
        proceeding, other than a foreign main proceeding, 
        taking place in a country where the debtor has an 
        establishment;
          ``(6) `trustee' includes a trustee, a debtor in 
        possession in a case under any chapter of this title, 
        or a debtor under chapters 9 or 13 of this title; and
          ``(7) `within the territorial jurisdiction of the 
        United States' when used with reference to property of 
        a debtor refers to tangible property located within the 
        territory of the United States and intangible property 
        deemed under applicable nonbankruptcy law to be located 
        within that territory, including any property subject 
        to attachment or garnishment that may properly be 
        seized or garnished by an action in a Federal or State 
        court in the United States.

``Sec. 603. International obligations of the United States

  ``To the extent that this chapter conflicts with an 
obligation of the United States arising out of any treaty or 
other form of agreement to which it is a party with 1 or more 
other countries, the requirements of the treaty or agreement 
prevail.

``Sec. 604. Commencement of ancillary case

  ``A case under this chapter is commenced by the filing of a 
petition for recognition of a foreign proceeding under section 
615.

``Sec. 605. Authorization to act in a foreign country

  ``A trustee or another entity (including an examiner) 
authorized by the court may be authorized by the court to act 
in a foreign country on behalf of an estate created under 
section 541. An entity authorized to act under this section may 
act in any way permitted by the applicable foreign law.

``Sec. 606. Public policy exception

  ``Nothing in this chapter prevents the court from refusing to 
take an action governed by this chapter if the action would be 
manifestly contrary to the public policy of the United States.

``Sec. 607. Additional assistance

  ``(a) Nothing in this chapter limits the power of the court, 
upon recognition of a foreign proceeding, to provide additional 
assistance to a foreign representative under this title or 
under other laws of the United States.
  ``(b) In determining whether to provide additional assistance 
under this title or under other laws of the United States, the 
court shall consider whether such additional assistance, 
consistent with the principles of comity, will reasonably 
assure--
          ``(1) just treatment of all holders of claims against 
        or interests in the debtor's property;
          ``(2) protection of claim holders in the United 
        States against prejudice and inconvenience in the 
        processing of claims in such foreign proceeding;
          ``(3) prevention of preferential or fraudulent 
        dispositions of property of the debtor;
          ``(4) distribution of proceeds of the debtor's 
        property substantially in accordance with the order 
        prescribed by this title; and
          ``(5) if appropriate, the provision of an opportunity 
        for a fresh start for the individual that such foreign 
        proceeding concerns.

``Sec. 608. Interpretation

  ``In interpreting this chapter, the court shall consider its 
international origin, and the need to promote an application of 
this chapter that is consistent with the application of similar 
statutes adopted by foreign jurisdictions.

``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``Sec. 609. Right of direct access

  ``(a) A foreign representative is entitled to commence a case 
under section 604 by filing a petition for recognition under 
section 615, and upon recognition, to apply directly to other 
Federal and State courts for appropriate relief in those 
courts.
  ``(b) Upon recognition, and subject to section 610, a foreign 
representative has the capacity to sue and be sued, and shall 
be subject to the laws of the United States of general 
applicability.
  ``(c) Recognition under this chapter is prerequisite to the 
granting of comity or cooperation to a foreign proceeding in 
any State or Federal court in the United States. Any request 
for comity or cooperation in any court shall be accompanied by 
a sworn statement setting forth whether recognition under 
section 615 has been sought and the status of any such 
petition.
  ``(d) Upon denial of recognition under this chapter, the 
court may issue appropriate orders necessary to prevent an 
attempt to obtain comity or cooperation from courts in the 
United States without such recognition.

``Sec. 610. Limited jurisdiction

  ``The sole fact that a foreign representative files a 
petition under sections 615 does not subject the foreign 
representative to the jurisdiction of any court in the United 
States for any other purpose.

``Sec. 611. Commencement of case under section 301 or 303

  ``(a) Upon filing a petition for recognition, a foreign 
representative may commence--
          ``(1) an involuntary case under section 303; or
          ``(2) a voluntary case under section 301 or 302, if 
        the foreign proceeding is a foreign main proceeding.
  ``(b) The petition commencing a case under subsection (a) of 
this section must be accompanied by a statement describing the 
petition for recognition and its current status. The court 
where the petition for recognition has been filed must be 
advised of the foreign representative's intent to commence a 
case under subsection (a) of this section prior to such 
commencement.
  ``(c) A case under subsection (a) shall be dismissed unless 
recognition is granted.

``Sec. 612. Participation of a foreign representative in a case under 
                    this title

  ``Upon recognition of a foreign proceeding, the foreign 
representative in that proceeding is entitled to participate as 
a party in interest in a case regarding the debtor under this 
title.

``Sec. 613. Access of foreign creditors to a case under this title

  ``(a) Foreign creditors have the same rights regarding the 
commencement of, and participation in, a case under this title 
as domestic creditors.
  ``(b)(1) Subsection (a) of this section does not change or 
codify present law as to the priority of claims under section 
507 or 726 of this title, except that the claim of a foreign 
creditor under those sections shall not be given a lower 
priority than that of general unsecured claims without priority 
solely because the holder of such claim is a foreign creditor.
  ``(2)(A) Subsection (a) of this section and paragraph (1) of 
this subsection do not change or codify present law as to the 
allowability of foreign revenue claims or other foreign public 
law claims in a proceeding under this title.
  ``(B) Allowance and priority as to a foreign tax claim or 
other foreign public law claim shall be governed by any 
applicable tax treaty of the United States, under the 
conditions and circumstances specified therein.

``Sec. 614. Notification to foreign creditors concerning a case under 
                    this title

  ``(a) Whenever in a case under this title notice is to be 
given to creditors generally or to any class or category of 
creditors, such notice shall also be given to the known 
creditors generally, or to creditors in the notified class or 
category, that do not have addresses in the United States. The 
court may order that appropriate steps be taken with a view to 
notifying any creditor whose address is not yet known.
  ``(b) Such notification to creditors with foreign addresses 
described in subsection (a) shall be given individually, unless 
the court considers that, under the circumstances, some other 
form of notification would be more appropriate. No letters 
rogatory or other similar formality is required.
  ``(c) When a notification of commencement of a case is to be 
given to foreign creditors, the notification shall--
          ``(1) indicate the time period for filing proofs of 
        claim and specify the place for their filing;
          ``(2) indicate whether secured creditors need to file 
        their proofs of claim; and
          ``(3) contain any other information required to be 
        included in such a notification to creditors pursuant 
        to this title and the orders of the court.
  ``(d) Any rule of procedure or order of the court as to 
notice or the filing of a claim shall provide such additional 
time to creditors with foreign addresses as is reasonable under 
the circumstances.

    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``Sec. 615. Application for recognition of a foreign proceeding

  ``(a) A foreign representative applies to the court for 
recognition of the foreign proceeding in which the foreign 
representative has been appointed by filing a petition for 
recognition.
  ``(b) A petition for recognition shall be accompanied by--
          ``(1) a certified copy of the decision commencing the 
        foreign proceeding and appointing the foreign 
        representative;
          ``(2) a certificate from the foreign court affirming 
        the existence of the foreign proceeding and of the 
        appointment of the foreign representative; or
          ``(3) in the absence of evidence referred to in 
        paragraphs (1) and (2), any other evidence acceptable 
        to the court of the existence of the foreign proceeding 
        and of the appointment of the foreign representative.
  ``(c) A petition for recognition shall also be accompanied by 
a statement identifying all foreign proceedings with respect to 
the debtor that are known to the foreign representative.
  ``(d) The documents referred to in paragraphs (1) and (2) of 
subsection (b) must be translated into English. The court may 
require a translation into English of additional documents.

``Sec. 616. Presumptions concerning recognition

  ``(a) If the decision or certificate referred to in section 
615(b) indicates that the foreign proceeding is a foreign 
proceeding within the meaning of section 101(23) and that the 
person or body is a foreign representative within the meaning 
of section 101(24), the court is entitled to so presume.
  ``(b) The court is entitled to presume that documents 
submitted in support of the petition for recognition are 
authentic, whether or not they have been legalized.
  ``(c) In the absence of evidence to the contrary, the 
debtor's registered office, or habitual residence in the case 
of an individual, is presumed to be the center of the debtor's 
main interests.

``Sec. 617. Order recognizing a foreign proceeding

  ``(a) Subject to section 606, an order recognizing a foreign 
proceeding shall be entered if--
          ``(1) the foreign proceeding is a foreign main 
        proceeding or foreign nonmain proceeding within the 
        meaning of section 602;
          ``(2) the foreign representative applying for 
        recognition is a person or body within the meaning of 
        section 101(24); and
          ``(3) the petition meets the requirements of section 
        615.
  ``(b) The foreign proceeding shall be recognized--
          ``(1) as a foreign main proceeding if it is taking 
        place in the country where the debtor has the center of 
        its main interests; or
          ``(2) as a foreign nonmain proceeding if the debtor 
        has an establishment within the meaning of section 602 
        in the foreign country where the proceeding is pending.
  ``(c) A petition for recognition of a foreign proceeding 
shall be decided upon at the earliest possible time. Entry of 
an order recognizing a foreign proceeding shall constitute 
recognition under this chapter.
  ``(d) The provisions of this subchapter do not prevent 
modification or termination of recognition if it is shown that 
the grounds for granting it were fully or partially lacking or 
have ceased to exist, but in considering such action the court 
shall give due weight to possible prejudice to parties that 
have relied upon the granting of recognition. The case under 
this chapter may be closed in the manner prescribed for a case 
under section 350.

``Sec. 618. Subsequent information

  ``From the time of filing the petition for recognition of the 
foreign proceeding, the foreign representative shall file with 
the court promptly a notice of change of status concerning--
          ``(1) any substantial change in the status of the 
        foreign proceeding or the status of the foreign 
        representative's appointment; and
          ``(2) any other foreign proceeding regarding the 
        debtor that becomes known to the foreign 
        representative.

``Sec. 619. Relief that may be granted upon petition for recognition of 
                    a foreign proceeding

  ``(a) From the time of filing a petition for recognition 
until the petition is decided upon, the court may, at the 
request of the foreign representative, where relief is urgently 
needed to protect the assets of the debtor or the interests of 
the creditors, grant relief of a provisional nature, 
including--
          ``(1) staying execution against the debtor's assets;
          ``(2) entrusting the administration or realization of 
        all or part of the debtor's assets located in the 
        United States to the foreign representative or another 
        person authorized by the court, including an examiner, 
        in order to protect and preserve the value of assets 
        that, by their nature or because of other 
        circumstances, are perishable, susceptible to 
        devaluation or otherwise in jeopardy; and
          ``(3) any relief referred to in paragraph (3), (4), 
        or (7) of section 621(a).
  ``(b) Unless extended under section 621(a)(6), the relief 
granted under this section terminates when the petition for 
recognition is decided upon.
  ``(c) It is a ground for denial of relief under this section 
that such relief would interfere with the administration of a 
foreign main proceeding.
  ``(d) The court may not enjoin a police or regulatory act of 
a governmental unit, including a criminal action or proceeding, 
under this section.
  ``(e) The standards, procedures, and limitations applicable 
to an injunction shall apply to relief under this section.

``Sec. 620. Effects of recognition of a foreign main proceeding

  ``(a) Upon recognition of a foreign proceeding that is a 
foreign main proceeding--
          ``(1) section 362 applies with respect to the debtor 
        and that property of the debtor that is within the 
        territorial jurisdiction of the United States; and
          ``(2) transfer, encumbrance, or any other disposition 
        of an interest of the debtor in property within the 
        territorial jurisdiction of the United States is 
        restrained as and to the extent that is provided for 
        property of an estate under sections 363, 549, and 552.
Unless the court orders otherwise, the foreign representative 
may operate the debtor's business and may exercise the powers 
of a trustee under section 549, subject to sections 363 and 
552.
  ``(b) The scope, and the modification or termination, of the 
stay and restraints referred to in subsection (a) of this 
section are subject to the exceptions and limitations provided 
in subsections (b), (c), and (d) of section 362, subsections 
(b) and (c) of section 363, and sections 552, 555 through 557, 
559, and 560.
  ``(c) Subsection (a) of this section does not affect the 
right to commence individual actions or proceedings in a 
foreign country to the extent necessary to preserve a claim 
against the debtor.
  ``(d) Subsection (a) of this section does not affect the 
right of a foreign representative or an entity to file a 
petition commencing a case under this title or the right of any 
party to file claims or take other proper actions in such a 
case.

``Sec. 621. Relief that may be granted upon recognition of a foreign 
                    proceeding

  ``(a) Upon recognition of a foreign proceeding, whether main 
or nonmain, where necessary to effectuate the purpose of this 
chapter and to protect the assets of the debtor or the 
interests of the creditors, the court may, at the request of 
the foreign representative, grant any appropriate relief, 
including--
          ``(1) staying the commencement or continuation of 
        individual actions or individual proceedings concerning 
        the debtor's assets, rights, obligations or liabilities 
        to the extent they have not been stayed under section 
        620(a);
          ``(2) staying execution against the debtor's assets 
        to the extent it has not been stayed under section 
        620(a);
          ``(3) suspending the right to transfer, encumber or 
        otherwise dispose of any assets of the debtor to the 
        extent this right has not been suspended under section 
        620(a);
          ``(4) providing for the examination of witnesses, the 
        taking of evidence or the delivery of information 
        concerning the debtor's assets, affairs, rights, 
        obligations or liabilities;
          ``(5) entrusting the administration or realization of 
        all or part of the debtor's assets within the 
        territorial jurisdiction of the United States to the 
        foreign representative or another person, including an 
        examiner, authorized by the court;
          ``(6) extending relief granted under section 619(a); 
        and
          ``(7) granting any additional relief that may be 
        available to a trustee, except for relief available 
        under sections 522, 544, 545, 547, 548, 550, and 
        724(a).
  ``(b) Upon recognition of a foreign proceeding, whether main 
or nonmain, the court may, at the request of the foreign 
representative, entrust the distribution of all or part of the 
debtor's assets located in the United States to the foreign 
representative or another person, including an examiner, 
authorized by the court, provided that the court is satisfied 
that the interests of creditors in the United States are 
sufficiently protected.
  ``(c) In granting relief under this section to a 
representative of a foreign nonmain proceeding, the court must 
be satisfied that the relief relates to assets that, under the 
law of the United States, should be administered in the foreign 
nonmain proceeding or concerns information required in that 
proceeding.
  ``(d) The court may not enjoin a police or regulatory act of 
a governmental unit, including a criminal action or proceeding, 
under this section.
  ``(e) The standards, procedures, and limitations applicable 
to an injunction shall apply to relief under paragraphs (1), 
(2), (3), and (6) of subsection (a).

``Sec. 622. Protection of creditors and other interested persons

  ``(a) In granting or denying relief under section 619 or 621, 
or in modifying or terminating relief under subsection (c) of 
this section, the court must find that the interests of the 
creditors and other interested persons or entities, including 
the debtor, are sufficiently protected.
  ``(b) The court may subject relief granted under section 619 
or 621 to conditions it considers appropriate.
  ``(c) The court may, at the request of the foreign 
representative or an entity affected by relief granted under 
section 619 or 621, or at its own motion, modify or terminate 
such relief.

``Sec. 623. Actions to avoid acts detrimental to creditors

  ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a pending case under another 
chapter of this title to initiate actions under sections 522, 
544, 545, 547, 548, 550, and 724(a).
  ``(b) When the foreign proceeding is a foreign nonmain 
proceeding, the court must be satisfied that an action under 
subsection (a) of this section relates to assets that, under 
United States law, should be administered in the foreign 
nonmain proceeding.

``Sec. 624. Intervention by a foreign representative

  ``Upon recognition of a foreign proceeding, the foreign 
representative may intervene in any proceedings in a State or 
Federal court in the United States in which the debtor is a 
party.

     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``Sec. 625. Cooperation and direct communication between the court and 
                    foreign courts or foreign representatives

  ``(a) In all matters included within section 601, the court 
shall cooperate to the maximum extent possible with foreign 
courts or foreign representatives, either directly or through 
the trustee.
  ``(b) The court is entitled to communicate directly with, or 
to request information or assistance directly from, foreign 
courts or foreign representatives, subject to the rights of 
parties in interest to notice and participation.

``Sec. 626. Cooperation and direct communication between the trustee 
                    and foreign courts or foreign representatives

  ``(a) In all matters included in section 601, the trustee or 
other person, including an examiner, authorized by the court, 
shall, subject to the supervision of the court, cooperate to 
the maximum extent possible with foreign courts or foreign 
representatives.
  ``(b) The trustee or other person, including an examiner, 
designated by the court is entitled, subject to the supervision 
of the court, to communicate directly with foreign courts or 
foreign representatives.
  ``(c) Section 1104(d) shall apply to the appointment of an 
examiner under this chapter. Any examiner shall comply with the 
qualification requirements imposed on a trustee by section 322.

``Sec. 627. Forms of cooperation

  ``Cooperation referred to in sections 625 and 626 may be 
implemented by any appropriate means, including--
          ``(1) appointment of a person or body, including an 
        examiner, to act at the direction of the court;
          ``(2) communication of information by any means 
        considered appropriate by the court;
          ``(3) coordination of the administration and 
        supervision of the debtor's assets and affairs;
          ``(4) approval or implementation of agreements 
        concerning the coordination of proceedings; and
          ``(5) coordination of concurrent proceedings 
        regarding the same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``Sec. 628. Commencement of a case under this title after recognition 
                    of a foreign main proceeding

  ``After recognition of a foreign main proceeding, a case 
under another chapter of this title may be commenced only if 
the debtor has assets in the United States. The effects of that 
case shall be restricted to the assets of the debtor that are 
within the territorial jurisdiction of the United States and, 
to the extent necessary to implement cooperation and 
coordination under sections 625, 626, and 627, to other assets 
of the debtor that are within the jurisdiction of the court 
under sections 541(a) of this title, and 1334(e) of title 28, 
to the extent that such other assets are not subject to the 
jurisdiction and control of a foreign proceeding that has been 
recognized under this chapter.

``Sec. 629. Coordination of a case under this title and a foreign 
                    proceeding

  ``Where a foreign proceeding and a case under another chapter 
of this title are taking place concurrently regarding the same 
debtor, the court shall seek cooperation and coordination under 
sections 625, 626, and 627, and the following shall apply:
          ``(1) When the case in the United States is taking 
        place at the time the petition for recognition of the 
        foreign proceeding is filed--
                  ``(A) any relief granted under sections 619 
                or 621 must be consistent with the case in the 
                United States; and
                  ``(B) even if the foreign proceeding is 
                recognized as a foreign main proceeding, 
                section 620 does not apply.
          ``(2) When a case in the United States under this 
        title commences after recognition, or after the filing 
        of the petition for recognition, of the foreign 
        proceeding--
                  ``(A) any relief in effect under sections 619 
                or 621 shall be reviewed by the court and shall 
                be modified or terminated if inconsistent with 
                the case in the United States; and
                  ``(B) if the foreign proceeding is a foreign 
                main proceeding, the stay and suspension 
                referred to in section 620(a) shall be modified 
                or terminated if inconsistent with the case in 
                the United States.
          ``(3) In granting, extending, or modifying relief 
        granted to a representative of a foreign nonmain 
        proceeding, the court must be satisfied that the relief 
        relates to assets that, under the law of the United 
        States, should be administered in the foreign nonmain 
        proceeding or concerns information required in that 
        proceeding.
          ``(4) In achieving cooperation and coordination under 
        sections 628 and 629, the court may grant any of the 
        relief authorized under section 305.

``Sec. 630. Coordination of more than 1 foreign proceeding

  ``In matters referred to in section 601, with respect to more 
than 1 foreign proceeding regarding the debtor, the court shall 
seek cooperation and coordination under sections 625, 626, and 
627, and the following shall apply:
          ``(1) Any relief granted under section 619 or 621 to 
        a representative of a foreign nonmain proceeding after 
        recognition of a foreign main proceeding must be 
        consistent with the foreign main proceeding.
          ``(2) If a foreign main proceeding is recognized 
        after recognition, or after the filing of a petition 
        for recognition, of a foreign nonmain proceeding, any 
        relief in effect under section 619 or 621 shall be 
        reviewed by the court and shall be modified or 
        terminated if inconsistent with the foreign main 
        proceeding.
          ``(3) If, after recognition of a foreign nonmain 
        proceeding, another foreign nonmain proceeding is 
        recognized, the court shall grant, modify, or terminate 
        relief for the purpose of facilitating coordination of 
        the proceedings.

``Sec. 631. Presumption of insolvency based on recognition of a foreign 
                    main proceeding

  ``In the absence of evidence to the contrary, recognition of 
a foreign main proceeding is for the purpose of commencing a 
proceeding under section 303, proof that the debtor is 
generally not paying its debts.

``Sec. 632. Rule of payment in concurrent proceedings

  ``Without prejudice to secured claims or rights in rem, a 
creditor who has received payment with respect to its claim in 
a foreign proceeding pursuant to a law relating to insolvency 
may not receive a payment for the same claim in a case under 
any other chapter of this title regarding the debtor, so long 
as the payment to other creditors of the same class is 
proportionately less than the payment the creditor has already 
received.''.
  (b) Clerical Amendment.--The table of chapters for title 11, 
United States Code, is amended by inserting after the item 
relating to chapter 5 the following:

``6. Ancillary and Other Cross-Border Cases.......................601''.

SEC. 602. AMENDMENTS TO OTHER CHAPTERS IN TITLE 11, UNITED STATES CODE.

  (a) Applicability of Chapters.--Section 103 of title 11, 
United States Code, is amended--
          (1) in subsection (a), by inserting before the period 
        the following: ``and this chapter, sections 307, 555 
        through 557, 559, and 560 apply in a case under chapter 
        6''; and
          (2) by adding at the end the following:
  ``(j) Chapter 6 applies only in a case under that chapter, 
except that section 605 applies to trustees and to any other 
entity authorized by the court, including an examiner, under 
chapters 7, 11, and 12, to debtors in possession under chapters 
11 and 12, and to debtors or trustees under chapters 9 and 13 
who are authorized to act under section 605.''.
  (b) Definitions.--Section 101 of title 11, United States 
Code, is amended by striking paragraphs (23) and (24) and 
inserting the following:
          ``(23) `foreign proceeding' means a collective 
        judicial or administrative proceeding in a foreign 
        state, including an interim proceeding, pursuant to a 
        law relating to insolvency in which proceeding the 
        assets and affairs of the debtor are subject to control 
        or supervision by a foreign court, for the purpose of 
        reorganization or liquidation;
          ``(24) `foreign representative' means a person or 
        body, including a person or body appointed on an 
        interim basis, authorized in a foreign proceeding to 
        administer the reorganization or the liquidation of the 
        debtor's assets or affairs or to act as a 
        representative of the foreign proceeding;''.
  (c) Amendments to Title 28, United States Code.--
          (1) Procedures.--Section 157(b)(2) of title 28, 
        United States Code, is amended--
                  (A) in subparagraph (N), by striking ``and'' 
                at the end;
                  (B) in subparagraph (O), by striking the 
                period at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(P) recognition of foreign proceedings and other 
        matters under chapter 6 of title 11.''.
          (2) Bankruptcy cases and proceedings.--Section 
        1334(c)(1) of title 28, United States Code, is amended 
        by striking ``Nothing in'' and inserting ``Except with 
        respect to a case under chapter 6 of title 11, nothing 
        in''.
          (3) Duties of trustees.--Section 586(a)(3) of title 
        28, United States Code, is amended by inserting ``6,'' 
        after ``chapter''.

                        TITLE VII--MISCELLANEOUS

SEC. 701. TECHNICAL AMENDMENTS.

  Title 11 of the United States Code is amended--
          (1) in section 109(b)(2) by striking ``subsection (c) 
        or (d) of'';
          (2) in section 541(b)(4) by adding ``or'' at the end; 
        and
          (3) in section 552(b)(1) by striking ``product'' each 
        place it appears and inserting ``products''.

SEC. 702. APPLICATION OF AMENDMENTS.

  The amendments made by this Act shall apply only with respect 
to cases commenced under title 11 of the United States Code 
after the date of the enactment of this Act.

                                
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