This bankruptcy bill has the full text of S. 486, the "Methamphetamine Antiproliferation Act of 2000" attached to it as an amendment,
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HR 833 EAS
In the Senate of the United States,
February 2, 2000.
Resolved, That the bill from the House of Representatives (H.R. 833) entitled `An Act to amend title 11 of the United States Code, and for other purposes.', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Bankruptcy Reform Act of 2000'.
(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--NEEDS-BASED BANKRUPTCY
Sec. 102. Dismissal or conversion.
Sec. 103. Findings and study.
Sec. 104. Notice of alternatives.
Sec. 105. Debtor financial management training test program.
Sec. 106. Credit counseling.
TITLE II--ENHANCED CONSUMER PROTECTION
Subtitle A--Penalties for Abusive Creditor Practices
Sec. 201. Promotion of alternative dispute resolution.
Sec. 202. Effect of discharge.
Sec. 203. Discouraging abuse of reaffirmation practices.
Subtitle B--Priority Child Support
Sec. 211. Definition of domestic support obligation.
Sec. 212. Priorities for claims for domestic support obligations.
Sec. 213. Requirements to obtain confirmation and discharge in cases involving domestic support obligations.
Sec. 214. Exceptions to automatic stay in domestic support obligation proceedings.
Sec. 215. Nondischargeability of certain debts for alimony, maintenance, and support.
Sec. 216. Continued liability of property.
Sec. 217. Protection of domestic support claims against preferential transfer motions.
Sec. 218. Disposable income defined.
Sec. 219. Collection of child support.
Sec. 220. Nondischargeability of certain educational benefits and loans.
Subtitle C--Other Consumer Protections
Sec. 221. Amendments to discourage abusive bankruptcy filings.
Sec. 222. Sense of Congress.
Sec. 223. Additional amendments to title 11, United States Code.
Sec. 224. Protection of retirement savings in bankruptcy.
Sec. 225. Protection of education savings.
TITLE III--DISCOURAGING BANKRUPTCY ABUSE
Sec. 301. Reinforcement of the fresh start.
Sec. 302. Discouraging bad faith repeat filings.
Sec. 303. Curbing abusive filings.
Sec. 304. Debtor retention of personal property security.
Sec. 305. Relief from the automatic stay when the debtor does not complete intended surrender of consumer debt collateral.
Sec. 306. Giving secured creditors fair treatment in chapter 13.
Sec. 308. Residency requirement for homestead exemption.
Sec. 309. Protecting secured creditors in chapter 13 cases.
Sec. 310. Limitation on luxury goods.
Sec. 311. Automatic stay.
Sec. 312. Extension of period between bankruptcy discharges.
Sec. 313. Definition of household goods and antiques.
Sec. 314. Debt incurred to pay nondischargeable debts.
Sec. 315. Giving creditors fair notice in chapters 7 and 13 cases.
Sec. 316. Dismissal for failure to timely file schedules or provide required information.
Sec. 317. Adequate time to prepare for hearing on confirmation of the plan.
Sec. 318. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 319. Sense of the Congress regarding expansion of rule 9011 of the Federal Rules of Bankruptcy Procedure.
Sec. 320. Prompt relief from stay in individual cases.
Sec. 321. Chapter 11 cases filed by individuals.
Sec. 322. Excluding employee benefit plan participant contributions and other property from the estate.
Sec. 323. Clarification of postpetition wages and benefits.
Sec. 325. Exclusive jurisdiction in matters involving bankruptcy professionals.
Sec. 326. United States trustee program filing fee increase.
Sec. 327. Compensation of trustees in certain cases under chapter 7 of title 11, United States Code.
Sec. 328. Nondischargeability of debts incurred through the commission of violence at clinics.
TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS
Subtitle A--General Business Bankruptcy Provisions
Sec. 401. Rolling stock equipment.
Sec. 402. Adequate protection for investors.
Sec. 403. Meetings of creditors and equity security holders.
Sec. 404. Protection of refinance of security interest.
Sec. 405. Executory contracts and unexpired leases.
Sec. 406. Creditors and equity security holders committees.
Sec. 407. Amendment to section 546 of title 11, United States Code.
Sec. 409. Amendment to section 330(a) of title 11, United States Code.
Sec. 410. Postpetition disclosure and solicitation.
Sec. 412. Venue of certain proceedings.
Sec. 413. Period for filing plan under chapter 11.
Sec. 414. Fees arising from certain ownership interests.
Sec. 415. Creditor representation at first meeting of creditors.
Sec. 416. Definition of disinterested person.
Sec. 417. Factors for compensation of professional persons.
Sec. 418. Appointment of elected trustee.
Sec. 419. Utility service.
Sec. 420. Bankruptcy fees.
Sec. 421. More complete information regarding assets of the estate.
Subtitle B--Small Business Bankruptcy Provisions
Sec. 431. Flexible rules for disclosure statement and plan.
Sec. 432. Definitions; effect of discharge.
Sec. 433. Standard form disclosure statement and plan.
Sec. 434. Uniform national reporting requirements.
Sec. 435. Uniform reporting rules and forms for small business cases.
Sec. 436. Duties in small business cases.
Sec. 437. Plan filing and confirmation deadlines.
Sec. 438. Plan confirmation deadline.
Sec. 439. Duties of the United States trustee.
Sec. 440. Scheduling conferences.
Sec. 441. Serial filer provisions.
Sec. 442. Expanded grounds for dismissal or conversion and appointment of trustee.
Sec. 443. Study of operation of title 11, United States Code, with respect to small businesses.
Sec. 444. Payment of interest.
Sec. 445. Technical correction.
TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS
Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.
TITLE VI--IMPROVED BANKRUPTCY STATISTICS AND DATA
Sec. 601. Audit procedures.
Sec. 602. Improved bankruptcy statistics.
Sec. 603. Uniform rules for the collection of bankruptcy data.
Sec. 604. Sense of Congress regarding availability of bankruptcy data.
TITLE VII--BANKRUPTCY TAX PROVISIONS
Sec. 701. Treatment of certain liens.
Sec. 702. Treatment of fuel tax claims.
Sec. 703. Notice of request for a determination of taxes.
Sec. 704. Rate of interest on tax claims.
Sec. 705. Priority of tax claims.
Sec. 706. Priority property taxes incurred.
Sec. 707. No discharge of fraudulent taxes in chapter 13.
Sec. 708. No discharge of fraudulent taxes in chapter 11.
Sec. 709. Stay of tax proceedings limited to prepetition taxes.
Sec. 710. Periodic payment of taxes in chapter 11 cases.
Sec. 711. Avoidance of statutory tax liens prohibited.
Sec. 712. Payment of taxes in the conduct of business.
Sec. 713. Tardily filed priority tax claims.
Sec. 714. Income tax returns prepared by tax authorities.
Sec. 715. Discharge of the estate's liability for unpaid taxes.
Sec. 716. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 717. Standards for tax disclosure.
Sec. 718. Setoff of tax refunds.
Sec. 719. Special provisions related to the treatment of State and local taxes.
Sec. 720. Dismissal for failure to timely file tax returns.
TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES
Sec. 801. Amendment to add chapter 15 to title 11, United States Code.
Sec. 802. Amendments to other chapters in title 11, United States Code.
Sec. 803. Claims relating to insurance deposits in cases ancillary to foreign proceedings.
TITLE IX--FINANCIAL CONTRACT PROVISIONS
Sec. 901. Bankruptcy Code amendments.
Sec. 902. Damage measure.
Sec. 903. Asset-backed securitizations.
Sec. 904. Effective date; application of amendments.
TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN
Sec. 1001. Reenactment of chapter 12.
Sec. 1002. Debt limit increase.
Sec. 1003. Elimination of requirement that family farmer and spouse receive over 50 percent of income from farming operation in year prior to bankruptcy.
Sec. 1004. Certain claims owed to governmental units.
Sec. 1005. Prohibition of retroactive assessment of disposable income.
Sec. 1006. Family fishermen.
TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS
Sec. 1102. Disposal of patient records.
Sec. 1103. Administrative expense claim for costs of closing a health care business.
Sec. 1104. Appointment of ombudsman to act as patient advocate.
Sec. 1105. Debtor in possession; duty of trustee to transfer patients.
Sec. 1106. Establishment of policy and protocols relating to bankruptcies of health care businesses.
Sec. 1107. Exclusion from program participation not subject to automatic stay.
TITLE XII--AMENDMENTS TO FAIR LABOR STANDARDS ACT OF 1938
Sec. 1202. Regular rate for overtime purposes.
TITLE XIII--TAX RELIEF
Sec. 1300. Amendment of 1986 code.
Subtitle A--Small Business Tax Relief
Sec. 1301. Increase in expensing limitation to $30,000.
Sec. 1302. Repeal of temporary unemployment tax.
Sec. 1303. Full deduction of health insurance costs for self-employed individuals.
Sec. 1304. Permanent extension of work opportunity tax credit.
Sec. 1305. Small businesses allowed increased deduction for meal and entertainment expenses.
Subtitle B--Deduction for Health and Long-Term Care Insurance
Sec. 1311. Deduction for health and long-term care insurance costs of individuals not participating in employer-subsidized health plans.
Subtitle C--Pension Tax Relief
Part I--Expanding Coverage
Sec. 1321. Increase in benefit and contribution limits.
Sec. 1322. Plan loans for subchapter s owners, partners, and sole proprietors.
Sec. 1323. Modification of top-heavy rules.
Sec. 1324. Elective deferrals not taken into account for purposes of deduction limits.
Sec. 1325. Repeal of coordination requirements for deferred compensation plans of State and local governments and tax-exempt organizations.
Sec. 1326. Elimination of user fee for requests to IRS regarding pension plans.
Sec. 1327. Deduction limits.
Sec. 1328. Option to treat elective deferrals as after-tax contributions.
Part II--Enhancing Fairness for Women
Sec. 1331. Catchup contributions for individuals age 50 or over.
Sec. 1332. Equitable treatment for contributions of employees to defined contribution plans.
Sec. 1333. Faster vesting of certain employer matching contributions.
Sec. 1334. Simplify and update the minimum distribution rules.
Sec. 1335. Clarification of tax treatment of division of section 457 plan benefits upon divorce.
Sec. 1336. Modification of safe harbor relief for hardship withdrawals from cash or deferred arrangements.
Part III--Increasing Portability for Participants
Sec. 1341. Rollovers allowed among various types of plans.
Sec. 1342. Rollovers of IRAs into workplace retirement plans.
Sec. 1343. Rollovers of after-tax contributions.
Sec. 1344. Hardship exception to 60-day rule.
Sec. 1345. Treatment of forms of distribution.
Sec. 1346. Rationalization of restrictions on distributions.
Sec. 1347. Purchase of service credit in governmental defined benefit plans.
Sec. 1348. Employers may disregard rollovers for purposes of cash-out amounts.
Sec. 1349. Minimum distribution and inclusion requirements for section 457 plans.
Part IV--Strengthening Pension Security and Enforcement
Sec. 1351. Repeal of 150 percent of current liability funding limit.
Sec. 1352. Maximum contribution deduction rules modified and applied to all defined benefit plans.
Sec. 1353. Excise tax relief for sound pension funding.
Sec. 1354. Excise tax on failure to provide notice by defined benefit plans significantly reducing future benefit accruals.
Sec. 1355. Protection of investment of employee contributions to 401(K) plans.
Sec. 1356. Treatment of multiemployer plans under section 415.
Part V--Reducing Regulatory Burdens
Sec. 1361. Modification of timing of plan valuations.
Sec. 1362. ESOP dividends may be reinvested without loss of dividend deduction.
Sec. 1363. Repeal of transition rule relating to certain highly compensated employees.
Sec. 1364. Employees of tax-exempt entities.
Sec. 1365. Clarification of treatment of employer-provided retirement advice.
Sec. 1366. Reporting simplification.
Sec. 1367. Improvement of employee plans compliance resolution system.
Sec. 1368. Modification of exclusion for employer-provided transit passes.
Sec. 1369. Repeal of the multiple use test.
Sec. 1370. Flexibility in nondiscrimination, coverage, and line of business rules.
Sec. 1371. Extension to international organizations of moratorium on application of certain nondiscrimination rules applicable to State and local plans.
Part VI--Plan Amendments
Sec. 1381. Provisions relating to plan amendments.
Subtitle D--Revenue Provisions
Sec. 1391. Modification of installment method and repeal of installment method for accrual method taxpayers.
Sec. 1392. Modification of estimated tax rules for closely held real estate investment trusts.
TITLE XIV--TECHNICAL AMENDMENTS
Sec. 1402. Adjustment of dollar amounts.
Sec. 1403. Extension of time.
Sec. 1404. Technical amendments.
Sec. 1405. Penalty for persons who negligently or fraudulently prepare bankruptcy petitions.
Sec. 1406. Limitation on compensation of professional persons.
Sec. 1407. Effect of conversion.
Sec. 1408. Allowance of administrative expenses.
Sec. 1409. Exceptions to discharge.
Sec. 1410. Effect of discharge.
Sec. 1411. Protection against discriminatory treatment.
Sec. 1412. Property of the estate.
Sec. 1414. Postpetition transactions.
Sec. 1415. Disposition of property of the estate.
Sec. 1416. General provisions.
Sec. 1417. Abandonment of railroad line.
Sec. 1418. Contents of plan.
Sec. 1419. Discharge under chapter 12.
Sec. 1420. Bankruptcy cases and proceedings.
Sec. 1421. Knowing disregard of bankruptcy law or rule.
Sec. 1422. Transfers made by nonprofit charitable corporations.
Sec. 1423. Protection of valid purchase money security interests.
Sec. 1425. Bankruptcy judgeships.
Sec. 1426. Family fishermen.
Sec. 1427. Compensating trustees.
Sec. 1428. Amendment to section 362 of title 11, United States Code.
Sec. 1429. Provision of electronic FTC pamphlet with electronic credit card applications and solicitations.
Sec. 1430. No bankruptcy for insolvent political committees.
Sec. 1431. Federal election law fines and penalties as nondischargeable debt.
Sec. 1432. Prohibition on certain retroactive finance charges.
Sec. 1433. Sense of Senate concerning credit worthiness.
Sec. 1434. Judicial education.
Sec. 1435. United States trustee program filing fee increase.
Sec. 1436. Providing requested tax documents to the court.
Sec. 1437. Definition of family farmer.
Sec. 1438. Encouraging creditworthiness.
Sec. 1439. Property no longer subject to redemption.
Sec. 1440. Availability of toll-free access to information.
TITLE XV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS
Sec. 1501. Effective date; application of amendments.
TITLE XVI--FINANCIAL INSTITUTIONS INSOLVENCY IMPROVEMENT
Sec. 1602. Treatment of certain agreements by conservators or receivers of insured depository institutions.
Sec. 1603. Authority of the corporation with respect to failed and failing institutions.
Sec. 1604. Amendments relating to transfers of qualified financial contracts.
Sec. 1605. Amendments relating to disaffirmance or repudiation of qualified financial contracts.
Sec. 1606. Clarifying amendment relating to master agreements.
Sec. 1607. Federal Deposit Insurance Corporation Improvement Act of 1991.
Sec. 1608. Recordkeeping requirements.
Sec. 1609. Exemptions from contemporaneous execution requirement.
Sec. 1611. Federal Reserve collateral requirements.
Sec. 1612. Effective date; application of amendments.
TITLE XVII--METHAMPHETAMINE AND OTHER CONTROLLED SUBSTANCES
Subtitle A--Methamphetamine Production, Trafficking, and Abuse
Chapter 1--Criminal Penalties
Sec. 1711. Enhanced punishment of amphetamine laboratory operations.
Sec. 1712. Enhanced punishment of amphetamine or methamphetamine laboratory operators.
Sec. 1713. Mandatory restitution for violations of Controlled Substances Act and Controlled Substances Import and Export Act relating to amphetamine and methamphetamine.
Sec. 1714. Methamphetamine paraphernalia.
Chapter 2--Enhanced Law Enforcement
Sec. 1721. Environmental hazards associated with illegal manufacture of amphetamine and methamphetamine.
Sec. 1722. Reduction in retail sales transaction threshold for non-safe harbor products containing pseudoephedrine or phenlypropanolamine.
Sec. 1723. Training for Drug Enforcement Administration and State and local law enforcement personnel relating to clandestine laboratories.
Sec. 1724. Combating methamphetamine and amphetamine in high intensity drug trafficking areas.
Sec. 1725. Combating amphetamine and methamphetamine manufacturing and trafficking.
Chapter 3--Abuse Prevention and Treatment
Sec. 1731. Expansion of methamphetamine research.
Sec. 1732. Methamphetamine and amphetamine treatment initiative by Center for Substance Abuse Treatment.
Sec. 1733. Expansion of methamphetamine abuse prevention efforts.
Sec. 1734. Study of methamphetamine treatment.
Chapter 4--Reports
Sec. 1741. Reports on consumption of methamphetamine and other illicit drugs in rural areas, metropolitan areas, and consolidated metropolitan areas.
Sec. 1742. Report on diversion of ordinary over-the-counter pseudoephedrine and phenylpropanolamine products.
Subtitle B--Controlled Substances Generally
Chapter 1--Criminal Matters
Sec. 1751. Enhanced punishment for trafficking in list I chemicals.
Sec. 1752. Mail order requirements.
Sec. 1753. Increased penalties for distributing drugs to minors.
Sec. 1754. Increased penalty for drug trafficking in or near a school or other protected location.
Sec. 1755. Advertisments for drug paraphernalia and schedule I controlled substances.
Sec. 1756. Theft and transportation of anhydrous ammonia for purposes of illicit production of controlled substances.
Sec. 1757. Criminal prohibition on distribution of certain information relating to the manufacture of controlled substances.
Chapter 2--Other Matters
Sec. 1761. Waiver authority for physicians who dispense or prescribe certain narcotic drugs for maintenance treatment or detoxification treatment.
Subtitle C--Cocaine Powder
Sec. 1772. Sentencing for violations involving cocaine powder.
Subtitle D--Education Matters
Sec. 1782. Student safety and family school choice.
Sec. 1783. Transfer of revenues.
Subtitle E--Miscellaneous
Sec. 1791. Notice; clarification.
Sec. 1792. Domestic terrorism assessment and recovery.
Sec. 1793. Antidrug messages on Federal Government Internet websites.
Sec. 1794. State schools.
Sec. 1795. Student safety and family school choice.
Sec. 1796. Transfer of revenues.
Sec. 1797. Increased penalties for distributing drugs to minors.
Sec. 1798. Increased penalty for drug trafficking in or near a school or other protected location.
TITLE XVIII--PROTECTION FROM THE IMPACT OF BANKRUPTCY OF CERTAIN ELECTRIC UTILITIES
Sec. 1802. Findings and purposes.
Sec. 1803. Unlawful contract and amended contract.
Sec. 1804. Exclusive enforcement.
TITLE XIX--CONSUMER CREDIT DISCLOSURE
Sec. 1901. Enhanced disclosures under an open end credit plan.
Sec. 1902. Enhanced disclosure for credit extensions secured by a dwelling.
Sec. 1903. Disclosures related to `introductory rates'.
Sec. 1904. Internet-based credit card solicitations.
Sec. 1905. Disclosures related to late payment deadlines and penalties.
Sec. 1906. Prohibition on certain actions for failure to incur finance charges.
Sec. 1907. Dual use debit card.
Sec. 1908. Study of bankruptcy impact of credit extended to dependent students.
TITLE I--NEEDS-BASED BANKRUPTCY
SEC. 101. CONVERSION.
Section 706(c) of title 11, United States Code, is amended by inserting `or consents to' after `requests'.
SEC. 102. DISMISSAL OR CONVERSION.
(a) IN GENERAL- Section 707 of title 11, United States Code, is amended--
(1) by striking the section heading and inserting the following:
`Sec. 707. Dismissal of a case or conversion to a case under chapter 11 or 13';
(A) by inserting `(1)' after `(b)';
(B) in paragraph (1), as redesignated by subparagraph (A) of this paragraph--
(i) in the first sentence--
(I) by striking `but not at the request or suggestion' and inserting `, panel trustee or';
(II) by inserting `, or, with the debtor's consent, convert such a case to a case under chapter 11 or 13 of this title,' after `consumer debts'; and
(III) by striking `substantial abuse' and inserting `abuse'; and
(ii) by striking the next to last sentence; and
(C) by adding at the end the following:
`(2)(A)(i) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall presume abuse exists if the debtor's current monthly income reduced by the amounts determined under clauses (ii), (iii), and (iv), and multiplied by 60 is not less than the lesser of--
`(I) 25 percent of the debtor's nonpriority unsecured claims in the case; or
`(ii)(I) The debtor's monthly expenses shall be the applicable monthly (excluding payments for debts) expenses under standards issued by the Internal Revenue Service for the area in which the debtor resides, as in effect on the date of the entry of the order for relief, for the debtor, the dependents of the debtor, and the spouse of the debtor in a joint case, if the spouse is not otherwise a dependent. In addition, the debtor's monthly expenses shall include the debtor's reasonably necessary expenses incurred to maintain the safety of the debtor and the family of the debtor from family violence as identified under section 309 of the Family Violence Prevention and Services Act (42 U.S.C. 10408), or other applicable Federal law. The expenses included in the debtor's monthly expenses described in the preceding sentence shall be kept confidential by the court.
`(II) In addition, the debtor's monthly expenses may include, if applicable, the continuation of actual expenses paid by the debtor that are reasonable and necessary for care and support of an elderly, chronically ill, or disabled household member or member of the debtor's immediate family (including parents, grandparents, and siblings of the debtor, the dependents of the debtor, and the spouse of the debtor in a joint case) who is not a dependent and who is unable to pay for such reasonable and necessary expenses.
`(iii) The debtor's average monthly payments on account of secured debts shall be calculated as--
`(aa) the total of all amounts scheduled as contractually due to secured creditors in each month of the 60 months following the date of the petition; and
`(bb) any additional payments to secured creditors necessary for the debtor, in filing a plan under chapter 13 of this title, to maintain possession of the debtor's primary residence, motor vehicle, or other property necessary for the support of the debtor and the debtor's dependents, that serves as collateral for secured debts; divided by
`(iv) The debtor's expenses for payment of all priority claims (including priority child support and alimony claims) shall be calculated as--
`(I) the total amount of debts entitled to priority; divided by
`(B)(i) In any proceeding brought under this subsection, the presumption of abuse may be rebutted by demonstrating special circumstances that justify additional expenses or adjustments of current monthly total income. In order to establish special circumstances, the debtor shall be required to--
`(I) itemize each additional expense or adjustment of income; and
`(aa) documentation for such expenses; and
`(bb) a detailed explanation of the special circumstances that make such expenses necessary and reasonable.
`(ii) The debtor, and the attorney for the debtor if the debtor has an attorney, shall attest under oath to the accuracy of any information provided to demonstrate that additional expenses or adjustments to income are required.
`(iii) The presumption of abuse may be rebutted if the additional expenses or adjustments to income referred to in clause (i) cause the product of the debtor's current monthly income reduced by the amounts determined under clauses (ii), (iii), and (iv) of subparagraph (A) multiplied by 60 to be less than the lesser of--
`(I) 25 percent of the debtor's nonpriority unsecured claims; or
`(C)(i) As part of the schedule of current income and expenditures required under section 521, the debtor shall include a statement of the debtor's current monthly income, and the calculations that determine whether a presumption arises under subparagraph (A)(i), that shows how each such amount is calculated.
`(ii) The Supreme Court shall promulgate rules under section 2075 of title 28, that prescribe a form for a statement under clause (i) and may provide general rules on the content of the statement.
`(3) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter in a case in which the presumption in subparagraph (A)(i) of such paragraph does not apply or has been rebutted, the court shall consider--
`(A) whether the debtor filed the petition in bad faith; or
`(B) the totality of the circumstances (including whether the debtor seeks to reject a personal services contract and the financial need for such rejection as sought by the debtor) of the debtor's financial situation demonstrates abuse.'.
(b) DEFINITION- Title 11, United States Code, is amended--
(1) in section 101, by inserting after paragraph (10) the following:
`(10A) `current monthly income'--
`(A) means the average monthly income from all sources which the debtor, or in a joint case, the debtor and the debtor's spouse, receive without regard to whether the income is taxable income, derived during the 180-day period preceding the date of determination; and
`(B) includes any amount paid by any entity other than the debtor (or, in a joint case, the debtor and the debtor's spouse), on a regular basis to the household expenses of the debtor or the debtor's dependents (and, in a joint case, the debtor's spouse if not otherwise a dependent), but excludes benefits received under the Social Security Act;'; and
(A) by inserting `(a)' before `The trustee shall--'; and
(B) by adding at the end the following:
`(b)(1) With respect to an individual debtor under this chapter--
`(A) the United States trustee or bankruptcy administrator shall review all materials filed by the debtor and, not later than 10 days before the first meeting of creditors, file with the court a statement as to whether the debtor's case would be presumed to be an abuse under section 707(b); and
`(B) not later than 5 days after receiving a statement under subparagraph (A), the court shall provide a copy of the statement to all creditors.
`(2) The United States trustee or bankruptcy administrator shall not later than 30 days after receiving a statement filed under paragraph (1) file a motion to dismiss or convert under section 707(b), or file a statement setting forth the reasons the United States trustee or bankruptcy administrator does not believe that such a motion would be appropriate, if based on the filing of such statement with the court, the United States trustee or bankruptcy administrator determines that the debtor's case should be presumed to be an abuse under section 707(b) and the product of the debtor's current monthly income, multiplied by 12 is not less than--
`(A) the highest national or applicable State median family income reported for a family of equal or lesser size, whichever is greater; or
`(B) in the case of a household of 1 person, the national or applicable State median household income for 1 earner, whichever is greater.
`(3) In any case in which a motion to dismiss or convert, or a statement is required to be filed by this subsection, the United States trustee or bankruptcy administrator may decline to file a motion to dismiss or convert pursuant to section 704(b)(2) or if the product of the debtor's current monthly income multiplied by 12--
`(A)(i) exceeds 100 percent, but does not exceed 150 percent of the national or applicable State median household income reported for a household of equal size, whichever is greater; or
`(ii) in the case of a household of 1 person, exceeds 100 percent but does not exceed 150 percent of the national or applicable State median household income reported for 1 earner, whichever is greater; and
`(B) the product of the debtor's current monthly income (reduced by the amounts determined under section 707(b)(2)(A)(ii)) (except for the amount calculated under the other necessary expenses standard issued by the Internal Revenue Service and section 707(b)(2)(A) (iii) and (iv)) multiplied by 60 is less than the greater of--
`(i) 25 percent of the debtor's nonpriority unsecured claims in the case; or
`(4)(A) The court shall order the counsel for the debtor to reimburse the panel trustee for all reasonable costs in prosecuting a motion brought under section 707(b), including reasonable attorneys' fees, if--
`(i) a panel trustee appointed under section 586(a)(1) of title 28 brings a motion for dismissal or conversion under this subsection; and
`(I) grants that motion; and
`(II) finds that the action of the counsel for the debtor in filing under this chapter was frivolous.
`(B) If the court finds that the attorney for the debtor violated Rule 9011, at a minimum, the court shall order--
`(i) the assessment of an appropriate civil penalty against the counsel for the debtor; and
`(ii) the payment of the civil penalty to the panel trustee or the United States trustee.
`(C) In the case of a petition referred to in subparagraph (B), the signature of an attorney shall constitute a certificate that the attorney has--
`(i) performed a reasonable investigation into the circumstances that gave rise to the petition; and
`(ii) determined that the petition--
`(I) is well grounded in fact; and
`(II) is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law and does not constitute an abuse under paragraph (1).
`(5)(A) Except as provided in subparagraph (B) and subject to paragraph (6), the court may award a debtor all reasonable costs in contesting a motion brought by a party in interest (other than a panel trustee or United States trustee) under this subsection (including reasonable attorneys' fees) if--
`(i) the court does not grant the motion; and
`(ii) the court finds that--
`(I) the position of the party that brought the motion was not substantially justified; or
`(II) the party brought the motion solely for the purpose of coercing a debtor into waiving a right guaranteed to the debtor under this title.
`(B) A party in interest that has a claim of an aggregate amount less than $1,000 shall not be subject to subparagraph (A).
`(6)(A) Only the judge, United States trustee, bankruptcy administrator, or panel trustee may bring a motion under section 707(b), if the current monthly income of the debtor, or in a joint case, the debtor and the debtor's spouse, as of the date of the order for relief, when multiplied by 12, is equal to or less than--
`(i) the national or applicable State median family income reported for a family of equal or lesser size, whichever is greater; or
`(ii) in the case of a household of 1 person, the national or applicable State median household income last reported by the Bureau of the Census for 1 earner, whichever is greater.
`(B) Notwithstanding subparagraph (A), the national or applicable State median family income for a family of more than 4 individuals shall be the national or applicable State median family income last reported by the Bureau of the Census for a family of 4 individuals, whichever is greater, plus $583 for each additional member of that family.'.
(c) NONLIMITATION OF INFORMATION- Nothing in this title shall limit the ability of a creditor to provide information to a judge, United States trustee, bankruptcy administrator or panel trustee.
(d) DISMISSAL FOR CERTAIN CRIMES- Section 707 of title 11, United States Code, as amended by subsection (a) of this section, is amended by adding at the end the following:
`(c)(1) In this subsection--
`(A) the term `crime of violence' has the meaning given that term in section 16 of title 18; and
`(B) the term `drug trafficking crime' has the meaning given that term in section 924(c)(2) of title 18.
`(2) Except as provided in paragraph (3), after notice and a hearing, the court, on a motion by the victim of a crime of violence or a drug trafficking crime, or at the request of a party in interest, shall dismiss a voluntary case filed by an individual debtor under this chapter if that individual was convicted of that crime.
`(3) The court may not dismiss a case under paragraph (2) if the debtor establishes by a preponderance of the evidence that the filing of a case under this chapter is necessary to satisfy a claim for a domestic support obligation.'.
(e) CLERICAL AMENDMENT- The table of sections for chapter 7 of title 11, United States Code, is amended by striking the item relating to section 707 and inserting the following:
`707. Dismissal of a case or conversion to a case under chapter 11 or 13.'.
SEC. 103. FINDINGS AND STUDY.
(a) FINDINGS- Congress finds that the Secretary of the Treasury has the inherent authority to alter the Internal Revenue Service standards established to set guidelines for repayment plans as needed to accommodate their use under section 707(b) of title 11, United States Code.
(1) IN GENERAL- Not later than 3 years after the date of enactment of this Act, the Secretary of the Treasury, in consultation with the Director of the Executive Office of United States Trustees, shall submit a report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives containing the findings of the Secretary concerning the utilization of Internal Revenue Service standards for determining--
(A) the current monthly expenses of a debtor under section 707(b) of title 11, United States Code; and
(B) the impact that the application of those standards has had on debtors and on the bankruptcy courts.
(2) RECOMMENDATION- The report under paragraph (1) may include recommendations for amendments to title 11, United States Code, that are consistent with the findings of the Secretary of the Treasury under paragraph (1).
SEC. 104. NOTICE OF ALTERNATIVES.
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, that individual shall be given or obtain (as required in section 521(a)(1), as part of the certification process under subchapter I of chapter 5) a written notice prescribed by the United States trustee for the district in which the petition is filed under section 586 of title 28.
`(2) The notice shall contain the following:
`(A) A brief description of chapters 7, 11, 12, and 13 and the general purpose, benefits, and costs of proceeding under each of those chapters.
`(B) A brief description of services that may be available to that individual from a nonprofit budget and credit counseling agency that is approved by the United States trustee for that district.'.
SEC. 105. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.
(a) DEVELOPMENT OF FINANCIAL MANAGEMENT AND TRAINING CURRICULUM AND MATERIALS- The Director of the Executive Office for United States Trustees (in this section referred to as the `Director') shall--
(1) 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, United States Code, and who operate financial management education programs for debtors; and
(2) develop a financial management training curriculum and materials that may be used to educate individual debtors concerning how to better manage their finances.
(1) IN GENERAL- 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) AVAILABILITY OF CURRICULUM AND MATERIALS- For a 1-year period beginning not later than 270 days after the date of enactment of this Act, the curriculum and materials referred to in paragraph (1) shall be made available by the Director, directly or indirectly, on request to individual debtors in cases filed during that 1-year period under chapter 7 or 13 of title 11, United States Code.
(1) IN GENERAL- 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 issued on October 20, 1997, that are representative of consumer education programs carried out by--
(ii) trustees serving under chapter 13 of title 11, United States Code; and
(iii) consumer counseling groups.
(2) REPORT- Not later than 3 months after concluding the evaluation under paragraph (1), 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 Congress, containing the findings of the Director regarding the effectiveness of such curriculum, such materials, and such programs.
SEC. 106. CREDIT COUNSELING.
(a) WHO MAY BE A DEBTOR- Section 109 of title 11, United States Code, is amended by adding at the end the following:
`(h)(1) Subject to paragraphs (2) and (3), and notwithstanding any other provision of this section, an individual may not be a debtor under this title unless that individual has, during the 180-day period preceding the date of filing of the petition of that individual, received from an approved nonprofit budget and credit counseling agency described in section 111(a) an individual or group briefing (including a briefing conducted by telephone or on the Internet) that outlined the opportunities for available credit counseling and assisted that individual in performing a related budget analysis.
`(2)(A) Paragraph (1) shall not apply with respect to a debtor who resides in a district for which the United States trustee or bankruptcy administrator of the bankruptcy court of that district determines that the approved nonprofit budget and credit counseling agency for that district is not reasonably able to provide adequate services to the additional individuals who would otherwise seek credit counseling from that agency by reason of the requirements of paragraph (1).
`(B) Each United States trustee or bankruptcy administrator that makes a determination described in subparagraph (A) shall review that determination not later than 1 year after the date of that determination, and not less frequently than every year thereafter. Notwithstanding the preceding sentence, a nonprofit budget and credit counseling service may be disapproved by the United States trustee or bankruptcy administrator at any time.
`(3)(A) Subject to subparagraph (B), the requirements of paragraph (1) shall not apply with respect to a debtor who submits to the court a certification that--
`(i) describes exigent circumstances that merit a waiver of the requirements of paragraph (1);
`(ii) states that the debtor requested credit counseling services from an approved nonprofit budget and credit counseling agency, but was unable to obtain the services referred to in paragraph (1) during the 5-day period beginning on the date on which the debtor made that request; and
`(iii) is satisfactory to the court.
`(B) With respect to a debtor, an exemption under subparagraph (A) shall cease to apply to that debtor on the date on which the debtor meets the requirements of paragraph (1), but in no case may the exemption apply to that debtor after the date that is 30 days after the debtor files a petition, except that the court, for cause, may order an additional 15 days.'.
(b) CHAPTER 7 DISCHARGE- Section 727(a) of title 11, United States Code, is amended--
(1) in paragraph (9), by striking `or' at the end;
(2) in paragraph (10), by striking the period and inserting `; or'; and
(3) by adding at the end the following:
`(11) after the filing of the petition, the debtor failed to complete an instructional course concerning personal financial management described in section 111.'.
(c) CHAPTER 13 DISCHARGE- Section 1328 of title 11, United States Code, is amended by adding at the end the following:
`(g) The court shall not grant a discharge under this section to a debtor, unless after filing a petition the debtor has completed an instructional course concerning personal financial management described in section 111.
`(h) Subsection (g) shall not apply with respect to a debtor who resides in a district for which the United States trustee or bankruptcy administrator of the bankruptcy court of that district determines that the approved instructional courses are not adequate to service the additional individuals who would be required to complete the instructional course by reason of the requirements of this section.
`(i) Each United States trustee or bankruptcy administrator that makes a determination described in subsection (h) shall review that determination not later than 1 year after the date of that determination, and not less frequently than every year thereafter.'.
(d) DEBTOR'S DUTIES- Section 521 of title 11, United States Code, is amended--
(1) by inserting `(a)' before `The debtor shall--'; and
(2) by adding at the end the following:
`(b) In addition to the requirements under subsection (a), an individual debtor shall file with the court--
`(1) a certificate from the approved nonprofit budget and credit counseling agency that provided the debtor services under section 109(h); and
`(2) a copy of the debt repayment plan, if any, developed under section 109(h) through the approved nonprofit budget and credit counseling agency referred to in paragraph (1).'.
(1) IN GENERAL- Chapter 1 of title 11, United States Code, is amended by adding at the end the following:
`Sec. 111. Nonprofit budget and credit counseling agencies; financial management instructional courses
`(a) The clerk of each district shall maintain a list of nonprofit budget and credit counseling ageancies that provide 1 or more programs described in section 109(h) and a list of instructional courses concerning personal financial management that have been approved by--
`(1) the United States trustee; or
`(2) the bankruptcy administrator for the district.
`(b) For inclusion on the approved list under subsection (a), the United States trustee or bankruptcy administrator shall require the credit counseling service, at a minimum--
`(1) to be a nonprofit budget and credit counseling agency, the majority of the board of directors of which--
`(A) are not employed by the agency; and
`(B) will not directly or indirectly benefit financially from the outcome of a credit counseling session;
`(2) if a fee is charged for counseling services, to charge a reasonable fee, and to provide services without regard to ability to pay the fee;
`(3) to provide for safekeeping and payment of client funds, including an annual audit of the trust accounts and appropriate employee bonding;
`(4) to provide full disclosures to clients, including funding sources, counselor qualifications, and possible impact on credit reports;
`(5) to provide adequate counseling with respect to client credit problems that includes an analysis of their current situation, what brought them to that financial status, and how they can develop a plan to handle the problem without incurring negative amortization of their debts; and
`(6) to provide trained counselors who receive no commissions or bonuses based on the counseling session outcome.
`(c)(1) No credit counseling service may provide to a credit reporting agency information concerning whether an individual debtor has received or sought instruction concerning personal financial management from the credit counseling service.
`(2) A credit counseling service that willfully or negligently fails to comply with any requirement under this title with respect to a debtor shall be liable for damages in an amount equal to the sum of--
`(A) any actual damages sustained by the debtor as a result of the violation; and
`(B) any court costs or reasonable attorneys' fees (as determined by the court) incurred in an action to recover those damages.'.
(2) CLERICAL AMENDMENT- The table of sections for chapter 1 of title 11, United States Code, is amended by adding at the end the following:
`111. Nonprofit budget and credit counseling agencies; financial management instructional courses.'.
(f) LIMITATION- Section 362 of title 11, United States Code, is amended by adding at the end the following:
`(i) If a case commenced under chapter 7, 11, or 13 is dismissed due to the creation of a debt repayment plan, for purposes of subsection (c)(3), any subsequent case commenced by the debtor under any such chapter shall not be presumed to be filed not in good faith.'.
TITLE II--ENHANCED CONSUMER PROTECTION
Subtitle A--Penalties for Abusive Creditor Practices
SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.
(a) REDUCTION OF CLAIM- Section 502 of title 11, United States Code, is amended by adding at the end the following:
`(k)(1) The court, on the motion of the debtor and after a hearing, may reduce a claim filed under this section based in whole on unsecured consumer debts by not more than 20 percent of the claim, if--
`(A) the claim was filed by a creditor who unreasonably refused to negotiate a reasonable alternative repayment schedule proposed by an approved credit counseling agency acting on behalf of the debtor;
`(B) the offer of the debtor under subparagraph (A)--
`(i) was made at least 60 days before the filing of the petition; and
`(ii) provided for payment of at least 60 percent of the amount of the debt over a period not to exceed the repayment period of the loan, or a reasonable extension thereof; and
`(C) no part of the debt under the alternative repayment schedule is nondischargeable.
`(2) The debtor shall have the burden of proving, by clear and convincing evidence, that--
`(A) the creditor unreasonably refused to consider the debtor's proposal; and
`(B) the proposed alternative repayment schedule was made in the 60-day period specified in paragraph (1)(B)(i).'.
(b) LIMITATION ON AVOIDABILITY- Section 547 of title 11, United States Code, is amended by adding at the end the following:
`(h) The trustee may not avoid a transfer if such transfer was made as a part of an alternative repayment plan between the debtor and any creditor of the debtor created by an approved credit counseling agency.'.
SEC. 202. EFFECT OF DISCHARGE.
Section 524 of title 11, United States Code, is amended by adding at the end the following:
`(i) The willful failure of a creditor to credit payments received under a plan confirmed under this title (including a plan of reorganization confirmed under chapter 11 of this title) in the manner required by the plan (including crediting the amounts required under the plan) shall constitute a violation of an injunction under subsection (a)(2).'.
SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION PRACTICES.
(a) IN GENERAL- Section 524 of title 11, United States Code, as amended by section 202 of this Act, is amended--
(1) in subsection (c) by striking paragraph (2) and inserting the following:
`(2) the debtor received the disclosures described in subsection (i) at or before the time the debtor signed the agreement.';
(2) by inserting at the end of the section the following:
`(i)(1) The disclosures required under subsection (c) paragraph (2) of this section shall consist of the disclosure statement described in paragraph (3), completed as required in that paragraph, together with the agreement, statement, declaration, motion and order described, respectively, in paragraphs (4) through (8) of this subsection, and shall be the only disclosures required in connection with the reaffirmation.
`(2) Disclosures made under this paragraph shall be made clearly and conspicuously and in writing. The terms `Amount Reaffirmed' and `Annual Percentage Rate' shall be disclosed more conspicuously than other terms, data or information provided in connection with this disclosure, except that the phrases `Before agreeing to reaffirm a debt, review these important disclosures' and `Summary of Reaffirmation Agreement' may be equally conspicuous. Disclosures may be made in a different order and may use terminology different from that set forth in paragraphs (2) through (8), except that the terms `Amount Reaffirmed' and `Annual Percentage Rate' must be used where indicated.
`(3) The disclosure statement required under this paragraph shall consist of the following:
`(A) The statement: `Part A: Before agreeing to reaffirm a debt, review these important disclosures:';
`(B) Under the heading `Summary of Reaffirmation Agreement', the statement: `This Summary is made pursuant to the requirements of the Bankruptcy Code';
`(C) The `Amount Reaffirmed', using that term, which shall be--
`(i) the total amount which the debtor agrees to reaffirm, and
`(ii) the total of any other fees or cost accrued as of the date of the disclosure statement.
`(D) In conjunction with the disclosure of the `Amount Reaffirmed', the statements--
`(i) `The amount of debt you have agreed to reaffirm'; and
`(ii) `Your credit agreement may obligate you to pay additional amounts which may come due after the date of this disclosure. Consult your credit agreement.'.
`(E) The `Annual Percentage Rate', using that term, which shall be disclosed as--
`(i) if, at the time the petition is filed, the debt is open end credit as defined pursuant to the Truth in Lending Act, title 15, United States Code, section 1601 et. seq., then--
`(I) the annual percentage rate determined pursuant to title 15, United States Code, section 1637(b) (5) and (6), as applicable, as disclosed to the debtor in the most recent periodic statement prior to the agreement or, if no such periodic statement has been provided the debtor during the prior six months, the annual percentage rate as it would have been so disclosed at the time the disclosure statement is given the debtor, or to the extent this annual percentage rate is not readily available or not applicable, then
`(II) the simple interest rate applicable to the amount reaffirmed as of the date the disclosure statement is given to the debtor, or if different simple interest rates apply to different balances, the simple interest rate applicable to each such balance, identifying the amount of each such balance included in the amount reaffirmed, or
`(III) if the entity making the disclosure elects, to disclose the annual percentage rate under (I) and the simple interest rate under (II);
`(ii) if, at the time the petition is filed, the debt is closed end credit as defined pursuant to the Truth in Lending Act, title 15, United States Code, section 1601 et seq., then--
`(I) the annual percentage rate pursuant to title 15, United States Code, section 1638(a)(4) as disclosed to the debtor in the most recent disclosure statement given the debtor prior to the reaffirmation agreement with respect to the debt, or, if no such disclosure statement was provided the debtor, the annual percentage rate as it would have been so disclosed at the time the disclosure statement is given the debtor, or to the extent this annual percentage rate is not readily available or not applicable, then
`(II) the simple interest rate applicable to the amount reaffirmed as of the date the disclosure statement is given the debtor, or if different simple interest rates apply to different balances, the simple interest rate applicable to each such balance, identifying the amount of such balance included in the amount reaffirmed, or
`(III) if the entity making the disclosure elects, to disclose the annual percentage rate under (I) and the simple interest rate under (II).
`(F) If the underlying debt transaction was disclosed as a variable rate transaction on the most recent disclosure given pursuant to the Truth in Lending Act, title 15, United States Code, section 1601 et seq., by stating `The interest rate on your loan may be a variable interest rate which changes from time to time, so that the annual percentage rate disclosed here may be higher or lower.'.
`(G) If the debt is secured by a security interest which has not been waived in whole or in part or determined to be void by a final order of the court at the time of the disclosure, by disclosing that a security interest or lien in goods or property is asserted over some or all of the obligations you are reaffirming and listing the items and their original purchase price that are subject to the asserted security interest, or if not a purchase-money security interest then listing by items or types and the original amount of the loan.
`(H) At the election of the creditor, a statement of the repayment schedule using one or a combination of the following--
`(i) by making the statement: `Your first payment in the amount $XXX is due on XXX but the future payment amount may be different. Consult your reaffirmation or credit agreement, as applicable.', and stating the amount of the first payment and the due date of that payment in the places provided;
`(ii) by making the statement: `Your payment schedule will be:', and describing the repayment schedule with the number, amount and due dates or period of payments scheduled to repay the obligations reaffirmed to the extent then known by the disclosing party; or
`(iii) by describing the debtor's repayment obligations with reasonable specificity to the extent then known by the disclosing party.
`(I) The following statement: `Note: When this disclosure talks about what a creditor `may' do, it does not use the word `may' to give the creditor specific permission. The word `may' is used to tell you what might occur if the law permits the creditor to take the action. If you have questions about your reaffirmation or what the law requires, talk to the attorney who helped you negotiate this agreement. If you don't have an attorney helping you, the judge will explain the effect of your reaffirmation when the reaffirmation hearing is held.'.
`(J) The following additional statements:
`Reaffirming a debt is a serious financial decision. The law requires you to take certain steps to make sure the decision is in your best interest. If these steps are not completed, the reaffirmation agreement is not effective, even though you have signed it.
`1. Read the disclosures in this Part A carefully. Consider the decision to reaffirm carefully. Then, if you want to reaffirm, sign the reaffirmation agreement in Part B (or you may use a separate agreement you and your creditor agree on).
`2. Complete and sign Part D and be sure you can afford to make the payments you are agreeing to make and have received a copy of the disclosure statement and a completed and signed reaffirmation agreement.
`3. If you were represented by an attorney during the negotiation of the reaffirmation agreement, the attorney must have signed the certification in Part C.
`4. If you were not represented by an attorney during the negotiation of the reaffirmation agreement, you must have completed and signed Part E.
`5. The original of this disclosure must be filed with the court by you or your creditor. If a separate reaffirmation agreement (other than the one in Part B) has been signed, it must be attached.
`6. If you were represented by an attorney during the negotiation of the reaffirmation agreement, your reaffirmation agreement becomes effective upon filing with the court unless the reaffirmation is presumed to be an undue hardship as explained in Part D.
`7. If you were not represented by an attorney during the negotiation of the reaffirmation agreement, it will not be effective unless the court approves it. The court will notify you of the hearing on your reaffirmation agreement. You must attend this hearing in bankruptcy court where the judge will review your agreement. The bankruptcy court must approve the agreement as consistent with your best interests, except that no court approval is required if the agreement is for a consumer debt secured by a mortgage, deed of trust, security deed or other lien on your real property, like your home.
`Your right to rescind a reaffirmation. You may rescind (cancel) your reaffirmation at any time before the bankruptcy court enters a discharge order or within 60 days after the agreement is filed with the court, whichever is longer. To rescind or cancel, you must notify the creditor that the agreement is canceled.
`What are your obligations if you reaffirm the debt? A reaffirmed debt remains your personal legal obligation. It is not discharged in your bankruptcy. That means that if you default on your reaffirmed debt after your bankruptcy is over, your creditor may be able to take your property or your wages. Otherwise, your obligations will be determined by the reaffirmation agreement which may have changed the terms of the original agreement. For example, if you are reaffirming an open end credit agreement, the creditor may be permitted by that agreement and/or applicable law to change the terms of the agreement in the future under certain conditions.
`Are you required to enter into a reaffirmation agreement by any law? No, you are not required to reaffirm a debt by any law. Only agree to reaffirm a debt if it is in your best interest. Be sure you can afford the payments you agree to make.
`What if your creditor has a security interest or lien? Your bankruptcy discharge does not eliminate any lien on your property. A `lien' is often referred to as a security interest, deed of trust, mortgage or security deed. Even if you do not reaffirm and your personal liability on the debt is discharged, because of the lien your creditor may still have the right to take the security property if you do not pay the debt or default on it. If the lien is on an item of personal property that is exempt under your State's law or that the trustee has abandoned, you may be able to redeem the item rather than reaffirm the debt. To redeem, you make a single payment to the creditor equal to the current value of the security property, as agreed by the parties or determined by the court.'.
`(4) The form of reaffirmation agreement required under this paragraph shall consist of the following:
`Part B: Reaffirmation Agreement. I/we agree to reaffirm the obligations arising under the credit agreement described below.
`Brief description of credit agreement:
`Description of any changes to the credit agreement made as part of this reaffirmation agreement:
`Co-borrower, if also reaffirming:
`Date of creditor acceptance:'.
`(5)(A) The declaration shall consist of the following:
`Part C: Certification by Debtor's Attorney (If Any).
`I hereby certify that (1) this agreement represents a fully informed and voluntary agreement by the debtor(s); (2) this agreement does not impose an undue hardship on the debtor or any dependent of the debtor; and (3) I have fully advised the debtor of the legal effect and consequences of this agreement and any default under this agreement.
`Signature of Debtor's Attorney: Date:'.
`(B) In the case of reaffirmations in which a presumption of undue hardship has been established, the certification shall state that in the opinion of the attorney, the debtor is able to make the payment.
`(6) The statement in support of reaffirmation agreement, which the debtor shall sign and date prior to filing with the court, shall consist of the following:
`Part D: Debtor's Statement in Support of Reaffirmation Agreement.
`1. I believe this agreement will not impose an undue hardship on my dependents or me. I can afford to make the payments on the reaffirmed debt because my monthly income (take home pay plus any other income received) is $XXX, and my actual current monthly expenses including monthly payments on post-bankruptcy debt and other reaffirmation agreements total $XXX, leaving $XXX to make the required payments on this reaffirmed debt. I understand that if my income less my monthly expenses does not leave enough to make the payments, this reaffirmation agreement is presumed to be an undue hardship on me and must be reviewed by the court. However, this presumption may be overcome if I explain to the satisfaction of the court how I can afford to make the payments here: XXX.
`2. I received a copy of the Reaffirmation Disclosure Statement in Part A and a completed and signed reaffirmation agreement.'.
`(7) The motion, which may be used if approval of the agreement by the court is required in order for it to be effective and shall be signed and dated by the moving party, shall consist of the following:
`Part E: Motion for Court Approval (To be completed only where debtor is not represented by an attorney.). I (we), the debtor, affirm the following to be true and correct:
`I am not represented by an attorney in connection with this reaffirmation agreement.
`I believe this agreement is in my best interest based on the income and expenses I have disclosed in my Statement in Support of this reaffirmation agreement above, and because (provide any additional relevant reasons the court should consider):
`Therefore, I ask the court for an order approving this reaffirmation agreement.'.
`(8) The court order, which may be used to approve a reaffirmation, shall consist of the following:
`Court Order: The court grants the debtor's motion and approves the reaffirmation agreement described above.'.
`(j) Notwithstanding any other provision of this title:
`(1) A creditor may accept payments from a debtor before and after the filing of a reaffirmation agreement with the court.
`(2) A creditor may accept payments from a debtor under a reaffirmation agreement which the creditor believes in good faith to be effective.
`(3) The requirements of subsections (c)(2) and (i) shall be satisfied if disclosures required under those subsections are given in good faith.
`(k) Until 60 days after a reaffirmation agreement is filed with the court (or such additional period as the court, after notice and hearing and for cause, orders before the expiration of such period), it shall be presumed that the reaffirmation agreement is an undue hardship on the debtor if the debtor's monthly income less the debtor's monthly expenses as shown on the debtor's completed and signed statement in support of the reaffirmation agreement required under subsection (i)(6) of this section is less than the scheduled payments on the reaffirmed debt. This presumption must be reviewed by the court. The presumption may be rebutted in writing by the debtor if the statement includes an explanation which identifies additional sources of funds to make the payments as agreed upon under the terms of the reaffirmation agreement. If the presumption is not rebutted to the satisfaction of the court, the court may disapprove the agreement. However, no agreement shall be disapproved without notice and hearing to the debtor and creditor and such hearing must be concluded before the entry of the debtor's discharge.'.
(1) IN GENERAL- Chapter 9 of title 18, United States Code, is amended by adding at the end the following:
`Sec. 158. Designation of United States attorneys and agents of the Federal Bureau of Investigation to address abusive reaffirmations of debt and materially fraudulent statements in bankruptcy schedules
`(a) IN GENERAL- The Attorney General of the United States shall designate the individuals described in subsection (b) to have primary responsibility in carrying out enforcement activities in addressing violations of section 152 or 157 relating to abusive reaffirmations of debt. In addition to addressing the violations referred to in the preceding sentence, the individuals described under subsection (b) shall address violations of section 152 or 157 relating to materially fraudulent statements in bankruptcy schedules that are intentionally false or intentionally misleading.
`(b) UNITED STATES DISTRICT ATTORNEYS AND AGENTS OF THE FEDERAL BUREAU OF INVESTIGATION--The individuals referred to in subsection (a) are--
`(1) a United States attorney for each judicial district of the United States; and
`(2) an agent of the Federal Bureau of Investigation (within the meaning of section 3107) for each field office of the Federal Bureau of Investigation.
`(c) BANKRUPTCY INVESTIGATIONS- Each United States attorney designated under this section shall have primary responsibility for carrying out the duties of a United States attorney under section 3057.
`(d) BANKRUPTCY PROCEDURES- The bankruptcy courts shall establish procedures for referring any case which may contain a materially fraudulent statement in a bankruptcy schedule to the individuals designated under this section.'.
(2) CLERICAL AMENDMENT- The analysis for chapter 9 of title 18, United States Code, is amended by adding at the end the following:
`158. Designation of United States attorneys and agents of the Federal Bureau of Investigation to address abusive reaffirmations of debt and materially fraudulent statements in bankruptcy schedules.'.
Subtitle B--Priority Child Support
SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.
Section 101 of title 11, United States Code, is amended--
(1) by striking paragraph (12A); and
(2) by inserting after paragraph (14) the following:
`(14A) `domestic support obligation' means a debt that accrues before or after the entry of an order for relief under this title, including interest that accrues on that debt as provided under applicable nonbankruptcy law notwithstanding any other provision of this title, that is--
`(A) owed to or recoverable by--
`(i) a spouse, former spouse, or child of the debtor or such child's parent, legal guardian, or responsible relative; or
`(ii) a governmental unit;
`(B) in the nature of alimony, maintenance, or support (including assistance provided by a governmental unit) of such spouse, former spouse, or child of the debtor or such child's parent, without regard to whether such debt is expressly so designated;
`(C) established or subject to establishment before or after entry of an order for relief under this title, by reason of applicable provisions of--
`(i) a separation agreement, divorce decree, or property settlement agreement;
`(ii) an order of a court of record; or
`(iii) a determination made in accordance with applicable nonbankruptcy law by a governmental unit; and
`(D) not assigned to a nongovernmental entity, unless that obligation is assigned voluntarily by the spouse, former spouse, child, or parent, legal guardian, or responsible relative of the child for the purpose of collecting the debt.'.
SEC. 212. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT OBLIGATIONS.
Section 507(a) of title 11, United States Code, is amended--
(1) by striking paragraph (7);
(2) by redesignating paragraphs (1) through (6) as paragraphs (2) through (7), respectively;
(3) in paragraph (2), as redesignated, by striking `First' and inserting `Second';
(4) in paragraph (3), as redesignated, by striking `Second' and inserting `Third';
(5) in paragraph (4), as redesignated, by striking `Third' and inserting `Fourth';
(6) in paragraph (5), as redesignated, by striking `Fourth' and inserting `Fifth';
(7) in paragraph (6), as redesignated, by striking `Fifth' and inserting `Sixth';
(8) in paragraph (7), as redesignated, by striking `Sixth' and inserting `Seventh'; and
(9) by inserting before paragraph (2), as redesignated, the following:
`(A) Allowed unsecured claims for domestic support obligations that, as of the date of the filing of the petition, are owed to or recoverable by a spouse, former spouse, or child of the debtor, or the parent, legal guardian, or responsible relative of such child, without regard to whether the claim is filed by such person or is filed by a governmental unit on behalf of that person, on the condition that funds received under this paragraph by a governmental unit under this title after the date of filing of the petition shall be applied and distributed in accordance with applicable nonbankruptcy law.
`(B) Subject to claims under subparagraph (A), allowed unsecured claims for domestic support obligations that, as of the date the petition was filed are assigned by a spouse, former spouse, child of the debtor, or such child's parent, legal guardian, or responsible relative to a governmental unit (unless such obligation is assigned voluntarily by the spouse, former spouse, child, parent, legal guardian, or responsible relative of the child for the purpose of collecting the debt) or are owed directly to or recoverable by a government unit under applicable nonbankruptcy law, on the condition that funds received under this paragraph by a governmental unit under this title after the date of filing of the petition be applied and distributed in accordance with applicable nonbankruptcy law.'.
SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE IN CASES INVOLVING DOMESTIC SUPPORT OBLIGATIONS.
Title 11, United States Code, is amended--
(1) in section 1129(a), by adding at the end the following:
`(14) If the debtor is required by a judicial or administrative order or statute to pay a domestic support obligation, the debtor has paid all amounts payable under such order or statute for such obligation that first become payable after the date on which the petition is filed.';
(A) in paragraph (8), by striking `or' at the end;
(B) in paragraph (9), by striking the period at the end and inserting `; and'; and
(C) by adding at the end the following:
`(10) failure of the debtor to pay any domestic support obligation that first becomes payable after the date on which the petition is filed.';
(A) in paragraph (2), by striking `and' at the end;
(B) in paragraph (3), by striking the period at the end and inserting `; and'; and
(C) by adding at the end the following:
`(4) notwithstanding any other provision of this section, a plan may provide for less than full payment of all amounts owed for a claim entitled to priority under section 507(a)(1)(B) only if the plan provides that all of the debtor's projected disposable income for a 5-year period, beginning on the date that the first payment is due under the plan, will be applied to make payments under the plan.';
(A) by redesignating paragraph (10) as paragraph (11); and
(B) by inserting after paragraph (9) the following:
`(10) provide for the payment of interest accruing after the date of the filing of the petition on unsecured claims that are nondischargeable under section 1328(a), except that such interest may be paid only to the extent that the debtor has disposable income available to pay such interest after making provision for full payment of all allowed claims;';
(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 or statute to pay a domestic support obligation, the debtor has paid all amounts payable under such order for such obligation that first become payable after the date on which the petition is filed.';
(6) in section 1228(a), in the matter preceding paragraph (1), by inserting `, and in the case of a debtor who is required by a judicial or administrative order to pay a domestic support obligation, after such debtor certifies that all amounts payable under such order or statute that are due on or before the date of the certification (including amounts due before the petition was filed, but only to the extent provided for in the plan) have been paid' after `completion by the debtor of all payments under the plan';
(A) in paragraph (9), by striking `or' at the end;
(B) in paragraph (10), by striking the period at the end and inserting `; or'; and
(C) by adding at the end the following:
`(11) failure of the debtor to pay any domestic support obligation that first becomes payable after the date on which the petition is filed.';
(A) in paragraph (2), by striking `and' at the end;
(B) in paragraph (3), by striking the period at the end and inserting `; and'; and
(C) by adding in the end the following:
`(4) notwithstanding any other provision of this section, a plan may provide for less than full payment of all amounts owed for a claim entitled to priority under section 507(a)(1)(B) only if the plan provides that all of the debtor's projected disposable income for a 5-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan.';
(A) in paragraph (9), by striking `; and' and inserting a semicolon;
(B) by redesignating paragraph (10) as paragraph (11); and
(C) inserting after paragraph (9) the following:
`(10) provide for the payment of interest accruing after the date of the filing of the petition on unsecured claims that are nondischargeable under section 1328(a), except that such interest may be paid only to the extent that the debtor has disposable income available to pay such interest after making provision for full payment of all allowed claims; and';
(10) in section 1325(a)--
(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 or statute to pay a domestic support obligation, the debtor has paid amounts payable after the date on which the petition is filed.'; and
(11) in section 1328(a), in the matter preceding paragraph (1), by inserting `, and in the case of a debtor who is required by a judicial or administrative order to pay a domestic support obligation, after such debtor certifies that all amounts payable under such order or statute that are due on or before the date of the certification (including amounts due before the petition was filed, but only to the extent provided for in the plan) have been paid' after `completion by the debtor of all payments under the plan'.
SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION PROCEEDINGS.
Section 362(b) of title 11, United States Code, is amended by striking paragraph (2) and inserting the following:
`(2) under subsection (a)--
`(A) of the commencement or continuation of a civil action or proceeding--
`(i) for the establishment of paternity;
`(ii) for the establishment or modification of an order for domestic support obligations;
`(iii) concerning child custody or visitation;
`(iv) for the dissolution of a marriage except to the extent that such a proceeding seeks to determine the division of property which is property of the estate; or
`(v) regarding domestic violence;
`(B) the collection of a domestic support obligation from property that is not property of the estate;
`(C) with respect to the withholding of income that is property of the estate or property of the debtor for payment of a domestic support obligation pursuant to a judicial or administrative order;
`(D) the withholding, suspension, or restriction of drivers' licenses, professional and occupational licenses, and recreational licenses under State law, as specified in section 466(a)(16) of the Social Security Act (42 U.S.C. 666(a)(16));
`(E) the reporting of overdue support owed by a parent to any consumer reporting agency as specified in section 466(a)(7) of the Social Security Act (42 U.S.C. 666(a)(7));
`(F) the interception of tax refunds, as specified in sections 464 and 466(a)(3) of the Social Security Act (42 U.S.C. 664 and 666(a)(3)) or under an analogous State law; or
`(G) the enforcement of medical obligations as specified under title IV of the Social Security Act (42 U.S.C. 601 et seq.).';
SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, MAINTENANCE, AND SUPPORT.
Section 523 of title 11, United States Code, is amended--
(A) by striking paragraph (5) and inserting the following:
`(5) for a domestic support obligation;';
(i) by inserting `to a spouse, former spouse, or child of the debtor and' before `not of the kind';
(ii) by inserting `or' after `court of record'; and
(iii) by striking `unless--' and all that follows through the end of the paragraph and inserting a semicolon; and
(C) by striking paragraph (18); and
(2) in subsection (c), by striking `(6), or (15)' and inserting `or (6)'.
SEC. 216. CONTINUED LIABILITY OF PROPERTY.
Section 522 of title 11, United States Code, is amended--
(1) in subsection (c), by striking paragraph (1) and inserting the following:
`(1) a debt of a kind specified in paragraph (1) or (4) of section 523(a) (in which case, notwithstanding any provision of applicable nonbankruptcy law to the contrary, such property shall be liable for a debt of a kind specified in section 523(a)(4));'; and
(2) in subsection (f)(1)(A), by striking the dash and all that follows through the end of the subparagraph and inserting `of a kind that is specified in section 523(a)(4); or'.
SEC. 217. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST PREFERENTIAL TRANSFER MOTIONS.
Section 547(c)(7) of title 11, United States Code, is amended to read as follows:
`(7) to the extent such transfer was a bona fide payment of a debt for a domestic support obligation; or'.
SEC. 218. DISPOSABLE INCOME DEFINED.
(a) CONFIRMATION OF PLAN UNDER CHAPTER 12- Section 1225(b)(2)(A) of title 11, United States Code, is amended by inserting `or for a domestic support obligation that first becomes payable after the date on which the petition is filed' after `dependent of the debtor'.
(b) CONFIRMATION OF PLAN UNDER CHAPTER 13- Section 1325(b)(2)(A) of title 11, United States Code, is amended by inserting `or for a domestic support obligation that first becomes payable after the date on which the petition is filed' after `dependent of the debtor'.
SEC. 219. COLLECTION OF CHILD SUPPORT.
(a) DUTIES OF TRUSTEE UNDER CHAPTER 7- Section 704 of title 11, United States Code, as amended by section 102(b) of this Act, is amended--
(A) in paragraph (8), by striking `and' at the end;
(B) in paragraph (9), by striking the period and inserting `; and'; and
(C) by adding at the end the following:
`(10) if, with respect to an individual debtor, there is a claim for a domestic support obligation, provide the applicable notification specified in subsection (c).'; and
(2) by adding at the end the following:
`(c)(1) In any case described in subsection (a)(10), the trustee shall--
`(A)(i) notify in writing the holder of the claim of the right of that holder to use the services of a State child support enforcement agency established under sections 464 and 466 of the Social Security Act (42 U.S.C. 664 and 666, respectively) for the State in which the holder resides for assistance in collecting child support during and after the bankruptcy procedures;
`(ii) include in the notice under this paragraph the address and telephone number of the child support enforcement agency; and
`(iii) include in the notice an explanation of the rights of the holder of the claim to payment of the claim under this chapter; and
`(B)(i) notify in writing the State child support agency of the State in which the holder of the claim resides of the claim;
`(ii) include in the notice under this paragraph the name, address, and telephone number of the holder of the claim; and
`(iii) at such time as the debtor is granted a discharge under section 727, notify the holder of that claim and the State child support agency of the State in which that holder resides of--
`(I) the granting of the discharge;
`(II) the last recent known address of the debtor;
`(III) the last recent known name and address of the debtor's employer; and
`(IV) with respect to the debtor's case, the name of each creditor that holds a claim that--
`(aa) is not discharged under paragraph (2), (4), or (14A) of section 523(a); or
`(bb) was reaffirmed by the debtor under section 524(c).
`(2)(A) A holder of a claim or a State child support agency may request from a creditor described in paragraph (1)(B)(iii)(IV) the last known address of the debtor.
`(B) Notwithstanding any other provision of law, a creditor that makes a disclosure of a last known address of a debtor in connection with a request made under subparagraph (A) shall not be liable to the debtor or any other person by reason of making that disclosure.'.
(b) DUTIES OF TRUSTEE UNDER CHAPTER 11- Section 1106 of title 11, United States Code, is amended--
(A) in paragraph (6), by striking `and' at the end;
(B) in paragraph (7), by striking the period and inserting `; and'; and
(C) by adding at the end the following:
`(8) if, with respect to an individual debtor, there is a claim for a domestic support obligation, provide the applicable notification specified in subsection (c).'; and
(2) by adding at the end the following:
`(c)(1) In any case described in subsection (a)(7), the trustee shall--
`(A)(i) notify in writing the holder of the claim of the right of that holder to use the services of a State child support enforcement agency established under sections 464 and 466 of the Social Security Act (42 U.S.C. 664 and 666) for the State in which the holder resides; and
`(ii) include in the notice under this paragraph the address and telephone number of the child support enforcement agency; and
`(B)(i) notify, in writing, the State child support agency (of the State in which the holder of the claim resides) of the claim;
`(ii) include in the notice under this paragraph the name, address, and telephone number of the holder of the claim; and
`(iii) at such time as the debtor is granted a discharge under section 1141, notify the holder of the claim and the State child support agency of the State in which that holder resides of--
`(I) the granting of the discharge;
`(II) the last recent known address of the debtor;
`(III) the last recent known name and address of the debtor's employer; and
`(IV) with respect to the debtor's case, the name of each creditor that holds a claim that--
`(aa) is not discharged under paragraph (2), (3), or (14) of section 523(a); or
`(bb) was reaffirmed by the debtor under section 524(c).
`(2)(A) A holder of a claim or a State child support agency may request from a creditor described in paragraph (1)(B)(iii)(IV) the last known address of the debtor.
`(B) Notwithstanding any other provision of law, a creditor that makes a disclosure of a last known address of a debtor in connection with a request made under subparagraph (A) shall not be liable to the debtor or any other person by reason of making that disclosure.'.
(c) DUTIES OF TRUSTEE UNDER CHAPTER 12- Section 1202 of title 11, United States Code, is amended--
(A) in paragraph (4), by striking `and' at the end;
(B) in paragraph (5), by striking the period and inserting `; and'; and
(C) by adding at the end the following:
`(6) if, with respect to an individual debtor, there is a claim for a domestic support obligation, provide the applicable notification specified in subsection (c).'; and
(2) by adding at the end the following:
`(c)(1) In any case described in subsection (b)(6), the trustee shall--
`(A)(i) notify in writing the holder of the claim of the right of that holder to use the services of a State child support enforcement agency established under sections 464 and 466 of the Social Security Act (42 U.S.C. 664 and 666) for the State in which the holder resides; and
`(ii) include in the notice under this paragraph the address and telephone number of the child support enforcement agency; and
`(B)(i) notify, in writing, the State child support agency (of the State in which the holder of the claim resides) of the claim;
`(ii) include in the notice under this paragraph the name, address, and telephone number of the holder of the claim; and
`(iii) at such time as the debtor is granted a discharge under section 1228, notify the holder of the claim and the State child support agency of the State in which that holder resides of--
`(I) the granting of the discharge;
`(II) the last recent known address of the debtor;
`(III) the last recent known name and address of the debtor's employer; and
`(IV) with respect to the debtor's case, the name of each creditor that holds a claim that--
`(aa) is not discharged under paragraph (2), (3), or (14) of section 523(a); or
`(bb) was reaffirmed by the debtor under section 524(c).
`(2)(A) A holder of a claim or a State child support agency may request from a creditor described in paragraph (1)(B)(iii)(IV) the last known address of the debtor.
`(B) Notwithstanding any other provision of law, a creditor that makes a disclosure of a last known address of a debtor in connection with a request made under subparagraph (A) shall not be liable to the debtor or any other person by reason of making that disclosure.'.
(d) DUTIES OF TRUSTEE UNDER CHAPTER 13- Section 1302 of title 11, United States Code, is amended--
(A) in paragraph (4), by striking `and' at the end;
(B) in paragraph (5), by striking the period and inserting `; and'; and
(C) by adding at the end the following:
`(6) if, with respect to an individual debtor, there is a claim for a domestic support obligation, provide the applicable notification specified in subsection (d); and
`(7) provide information relating to the administration of cases that is practical to any not-for-profit entity which shall provide information to parties in interest in a timely and convenient manner, including telephonic and Internet access, at no cost or a nominal cost.
An entity described in paragraph (7) shall provide parties in interest with reasonable information about each case on behalf of the trustee of that case, including the status of the debtor's payments to the plan, the unpaid balance payable to each creditor treated by the plan, and the amount and date of payments made under the plan. The trustee shall have no duty to provide information under paragraph (7) if no such entity has been established.'; and
(2) by adding at the end the following:
`(d)(1) In any case described in subsection (b)(6), the trustee shall--
`(A)(i) notify in writing the holder of the claim of the right of that holder to use the services of a State child support enforcement agency established under sections 464 and 466 of the Social Security Act (42 U.S.C. 664 and 666, respectively) for the State in which the holder resides; and
`(ii) include in the notice under this paragraph the address and telephone number of the child support enforcement agency; and
`(B)(i) notify in writing the State child support agency of the State in which the holder of the claim resides of the claim;
`(ii) include in the notice under this paragraph the name, address, and telephone number of the holder of the claim; and
`(iii) at such time as the debtor is granted a discharge under section 1328, notify the holder of the claim and the State child support agency of the State in which that holder resides of--
`(I) the granting of the discharge;
`(II) the last recent known address of the debtor;
`(III) the last recent known name and address of the debtor's employer; and
`(IV) with respect to the debtor's case, the name of each creditor that holds a claim that--
`(aa) is not discharged under paragraph (2), (3), or (14) of section 523(a); or
`(bb) was reaffirmed by the debtor under section 524(c).
`(2)(A) A holder of a claim or a State child support agency may request from a creditor described in paragraph (1)(B)(iii)(IV) the last known address of the debtor.
`(B) Notwithstanding any other provision of law, a creditor that makes a disclosure of a last known address of a debtor in connection with a request made under subparagraph (A) shall not be liable to the debtor or any other person by reason of making that disclosure.'.
SEC. 220. NONDISCHARGEABILITY OF CERTAIN EDUCATIONAL BENEFITS AND LOANS.
Section 523(a) of title 11, United States Code, is amended by striking paragraph (8) and inserting the following:
`(8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for--
`(A)(i) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or
`(ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or
`(B) any other educational loan that is a qualified education loan, as that term is defined in section 221(e)(1) of the Internal Revenue Code of 1986, incurred by an individual debtor;'.
Subtitle C--Other Consumer Protections
SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY FILINGS.
Section 110 of title 11, United States Code, is amended--
(1) in subsection (a)(1), by inserting `, under the direct supervision of an attorney,' after `who';
(A) in paragraph (1), by adding at the end the following: `If a bankruptcy petition preparer is not an individual, then an officer, principal, responsible person, or partner of the preparer shall be required to--
`(A) sign the document for filing; and
`(B) print on the document the name and address of that officer, principal, responsible person or partner.';
(B) by striking paragraph (2) and inserting the following:
`(2)(A) Before preparing any document for filing or accepting any fees from a debtor, the bankruptcy petition preparer shall provide to the debtor a written notice to debtors concerning bankruptcy petition preparers, which shall be on an official form issued by the Judicial Conference of the United States.
`(B) The notice under subparagraph (A)--
`(i) shall inform the debtor in simple language that a bankruptcy petition preparer is not an attorney and may not practice law or give legal advice;
`(ii) may contain a description of examples of legal advice that a bankruptcy petition preparer is not authorized to give, in addition to any advice that the preparer may not give by reason of subsection (e)(2); and
`(bb) the bankruptcy petition preparer, under penalty of perjury; and
`(II) be filed with any document for filing.';
(i) by striking `(2) For purposes' and inserting `(2)(A) Subject to subparagraph (B), for purposes'; and
(ii) by adding at the end the following:
`(B) If a bankruptcy petition preparer is not an individual, the identifying number of the bankruptcy petition preparer shall be the Social Security account number of the officer, principal, responsible person, or partner of the preparer.'; and
(B) by striking paragraph (3);
(A) by striking `(d)(1)' and inserting `(d)'; and
(B) by striking paragraph (2);
(A) by striking paragraph (2); and
(B) by adding at the end the following:
`(2)(A) A bankruptcy petition preparer may not offer a potential bankruptcy debtor any legal advice, including any legal advice described in subparagraph (B).
`(B) The legal advice referred to in subparagraph (A) includes advising the debtor--
`(I) to file a petition under this title; or
`(II) commencing a case under chapter 7, 11, 12, or 13 is appropriate;
`(ii) whether the debtor's debts will be eliminated or discharged in a case under this title;
`(iii) whether the debtor will be able to retain the debtor's home, car, or other property after commencing a case under this title;
`(I) the tax consequences of a case brought under this title; or
`(II) the dischargeability of tax claims;
`(v) whether the debtor may or should promise to repay debts to a creditor or enter into a reaffirmation agreement with a creditor to reaffirm a debt;
`(vi) concerning how to characterize the nature of the debtor's interests in property or the debtor's debts; or
`(vii) concerning bankruptcy procedures and rights.';
(A) by striking `(f)(1)' and inserting `(f)'; and
(B) by striking paragraph (2);
(A) by striking `(g)(1)' and inserting `(g)'; and
(B) by striking paragraph (2);
(A) by redesignating paragraphs (1) through (4) as paragraphs (2) through (5), respectively;
(B) by inserting before paragraph (2), as so redesignated, the following:
`(h)(1) The Supreme Court may promulgate rules under section 2075 of title 28, or the Judicial Conference of the United States may prescribe guidelines, for setting a maximum allowable fee chargeable by a bankruptcy petition preparer. A bankruptcy petition preparer shall notify the debtor of any such maximum amount before preparing any document for filing for a debtor or accepting any fee from the debtor.';
(C) in paragraph (2), as redesignated by subparagraph (A) of this paragraph--
(i) by striking `Within 10 days after the date of filing a petition, a bankruptcy petition preparer shall file a' and inserting `A';
(ii) by inserting `by the bankruptcy petition preparer shall be filed together with the petition,' after `perjury'; and
(iii) by adding at the end the following: `If rules or guidelines setting a maximum fee for services have been promulgated or prescribed under paragraph (1), the declaration under this paragraph shall include a certification that the bankruptcy petition preparer complied with the notification requirement under paragraph (1).';
(D) by striking paragraph (3), as redesignated by subparagraph (A) of this paragraph, and inserting the following:
`(3)(A) The court shall disallow and order the immediate turnover to the bankruptcy trustee any fee referred to in paragraph (2) found to be in excess of the value of any services--
`(i) rendered by the preparer during the 12-month period immediately preceding the date of filing of the petition; or
`(ii) found to be in violation of any rule or guideline promulgated or prescribed under paragraph (1).
`(B) All fees charged by a bankruptcy petition preparer may be forfeited in any case in which the bankruptcy petition preparer fails to comply with this subsection or subsection (b), (c), (d), (e), (f), or (g).
`(C) An individual may exempt any funds recovered under this paragraph under section 522(b).'; and
(E) in paragraph (4), as redesignated by subparagraph (A) of this paragraph, by striking `or the United States trustee' and inserting `the United States trustee, or the court, on the initiative of the court,';
(9) in subsection (i)(1), by striking the matter preceding subparagraph (A) and inserting the following:
`(i) If a bankruptcy petition preparer violates this section or commits any act that the court finds to be fraudulent, unfair, or deceptive, on motion of the debtor, trustee, or United States trustee, and after the court holds a hearing with respect to that violation or act, the court shall order the bankruptcy petition preparer to pay to the debtor--';
(i) in subparagraph (A)(i)(I), by striking `a violation of which subjects a person to criminal penalty';
(ii) in subparagraph (B)--
(I) by striking `or has not paid a penalty' and inserting `has not paid a penalty'; and
(II) by inserting `or failed to disgorge all fees ordered by the court' after `a penalty imposed under this section,';
(B) by redesignating paragraph (3) as paragraph (4); and
(C) by inserting after paragraph (2) the following:
`(3) The court, as part of its contempt power, may enjoin a bankruptcy petition preparer that has failed to comply with a previous order issued under this section. The injunction under this paragraph may be issued upon motion of the court, the trustee, or the United States trustee.'; and
(11) by adding at the end the following:
`(l)(1) A bankruptcy petition preparer who fails to comply with any provision of subsection (b), (c), (d), (e), (f), (g), or (h) may be fined not more than $500 for each such failure.
`(2) The court shall triple the amount of a fine assessed under paragraph (1) in any case in which the court finds that a bankruptcy petition preparer--
`(A) advised the debtor to exclude assets or income that should have been included on applicable schedules;
`(B) advised the debtor to use a false Social Security account number;
`(C) failed to inform the debtor that the debtor was filing for relief under this title; or
`(D) prepared a document for filing in a manner that failed to disclose the identity of the preparer.
`(3) The debtor, the trustee, a creditor, or the United States trustee may file a motion for an order imposing a fine on the bankruptcy petition preparer for each violation of this section.
`(4) All fines imposed under this section shall be paid to the United States trustee, who shall deposit an amount equal to such fines in a special account of the United States Trustee System Fund referred to in section 586(e)(2) of title 28. Amounts deposited under this paragraph shall be available to fund the enforcement of this section on a national basis.'.
SEC. 222. SENSE OF CONGRESS.
It is the sense of Congress that States should develop curricula relating to the subject of personal finance, designed for use in elementary and secondary schools.
SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.
(a) IN GENERAL- Section 507(a) of title 11, United States Code, as amended by section 212 of this Act, is amended by inserting after paragraph (9) the following:
`(10) Tenth, allowed claims for death or personal injuries resulting from the operation of a motor vehicle or vessel if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance.'.
(b) VESSELS- Section 523(a)(8) of title 11, United States Code, is amended by inserting `or vessel' after `vehicle'.
SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.
(a) IN GENERAL- Section 522 of title 11, United States Code, as amended by section 215 of this Act, is amended--
(i) by striking `(2)(A) any property' and inserting:
`(3) Property listed in this paragraph is--
(ii) in subparagraph (A), by striking `and' at the end;
(iii) in subparagraph (B), by striking the period at the end and inserting `; and'; and
(iv) by adding at the end the following:
`(C) retirement funds to the extent that those funds are in a fund or a
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