|
|
SEC. 204. PRESERVATION OF CLAIMS AND DEFENSES UPON SALE OF PREDATORY
LOANS.
Section 363 of title 11, United States
Code, is amended —
(1) by redesignating subsection (o) as subsection
(p), and
(2) by inserting after subsection
(n) the following:
"(o) Notwithstanding subsection (f),
if a person purchases any interest in a consumer credit transaction
that is subject to the Truth in Lending Act or any interest in a consumer
credit contract (as defined in section 433.1 of title 16 of the Code
of Federal Regulations (January 1, 2004), as amended from time to time),
and if such interest is purchased through a sale under this section,
then such person shall remain subject to all claims and defenses that
are related to such consumer credit transaction or such consumer credit
contract, to the same extent as such person would be subject to such
claims and defenses of the consumer had such interest been purchased
at a sale not under this section.".
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 205. GAO STUDY AND REPORT ON REAFFIRMATION AGREEMENT PROCESS.
(a) STUDY.—The Comptroller General of the United States shall
conduct a study of the reaffirmation agreement process that occurs under
title 11 of the United States Code, to determine the overall treatment
of consumers within the context of such process, and shall include in
such study consideration of—
(1) the policies and activities of creditors with respect
to reaffirmation agreements; and
(2) whether consumers are fully, fairly, and consistently
informed of their rights pursuant to such title.
(b) REPORT TO THE CONGRESS.—Not later than 18 months after
the date of the enactment of this Act, the Comptroller General shall
submit to the President pro tempore of the Senate and the Speaker of
the House of Representatives a report on the results of the study conducted
under subsection (a), together with recommendations for legislation
(if any) to address any abusive or coercive tactics found in connection
with the reaffirmation agreement process that occurs under title 11
of the United States Code.
|
|
|
|
|
|
|
|
|
|
|
|
|
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, on, or after the date of the order
for relief in a case 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, on, or after the date of the order
for relief in a case 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 of the debtor, or such child's
parent, legal guardian, or responsible relative 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 so redesignated, by striking "First" and inserting "Second";
(4) in paragraph
(3), as so redesignated, by striking "Second" and inserting
"Third";
(5) in paragraph
(4), as so redesignated—
(A) by striking "Third" and inserting "Fourth"; and
(B) by striking the semicolon at the end and inserting
a period;
(6) in paragraph
(5), as so redesignated, by striking "Fourth" and inserting
"Fifth";
(7) in paragraph
(6), as so redesignated, by striking "Fifth" and inserting "Sixth";
(8) in paragraph
(7), as so redesignated, by striking "Sixth" and inserting "Seventh";
and
(9) by inserting before paragraph
(2), as so redesignated,
the following:
"(A) Allowed unsecured
claims for domestic support obligations that, as of the date
of the filing of the petition in a case under this title, are
owed to or recoverable by a spouse, former spouse, or child
of the debtor, or such child's parent, legal guardian, or responsible
relative, without regard to whether the claim is filed by such
person or is filed by a governmental unit on behalf of such
person, on the condition that funds received under this paragraph
by a governmental unit under this title after the date of the
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 of the filing
of the petition, 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 governmental 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 the filing
of the petition be applied and distributed in accordance with
applicable nonbankruptcy law.
"(C) If a trustee
is appointed or elected under section 701, 702, 703, 1104, 1202,
or 1302, the administrative expenses of the trustee allowed
under paragraphs (1)(A), (2), and (6) of section 503(b) shall
be paid before payment of claims under subparagraphs (A) and
(B), to the extent that the trustee administers assets that
are otherwise available for the payment of such claims.".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 by statute, to pay a domestic
support obligation, the debtor has paid all amounts payable under
such order or such statute for such obligation that first become
payable after the date of the filing of the petition.";
(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 of the filing of the petition.";
(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) in paragraph (10),
by striking "and" at the end;
(B) by redesignating paragraph
(11) as paragraph (12); and
(C) by inserting after paragraph
(10) the following:
"(11) provide for the payment
of interest accruing after the date of the filing of the petition
on unsecured claims that are nondischargeable under section 1228(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";
(A) in paragraph (5),
by striking "and" at the end;
(B) in paragraph (6),
by striking the period at the end and inserting "; and"; and
(C) by adding at the end the following:
"(7) the debtor has paid all amounts
that are required to be paid under a domestic support obligation
and that first become payable after the date of the filing of the
petition if the debtor is required by a judicial or administrative
order, or by statute, to pay such domestic support obligation.";
(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,
or by statute, to pay a domestic support obligation, after such
debtor certifies that all amounts payable under such order or such
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 by 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 of the filing of the petition.";
(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) 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),
as amended by section 102, by inserting after paragraph (7) the
following:
"(8) the debtor has paid all amounts
that are required to be paid under a domestic support obligation
and that first become payable after the date of the filing of the
petition if the debtor is required by a judicial or administrative
order, or by statute, to pay such domestic support obligation; 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, or by statute, to pay a domestic support obligation, after
such debtor certifies that all amounts payable under such order
or such 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 by 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 proceeding seeks to determine the division of
property that is property of the estate; or
"(v) regarding domestic violence;
"(B) of 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 under a
judicial or administrative order or a statute;
"(D) of the withholding, suspension,
or restriction of a driver's license, a professional or occupational
license, or a recreational license, under State law, as specified
in section 466(a)(16) of the Social Security Act;
"(E) of 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;
"(F) of the interception of
a tax refund, as specified in sections 464 and 466(a)(3) of
the Social Security Act or under an analogous State law; or
"(G) of the enforcement of
a medical obligation, as specified under title IV of the Social
Security Act;".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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;";
and
(B) by striking paragraph
(18);
(2) in subsection (c), by
striking "(6), or (15)" each place it appears and inserting "or
(6)"; and
(3) in paragraph (15), as
added by Public Law
103-394 (108 Stat. 4133)—
(A) by inserting "to a spouse, former spouse, or child
of the debtor and" before "not of the kind";
(B) by inserting "or" after "court of record,"; and
(C) by striking "unless—" and all that follows through
the end of the paragraph and inserting a semicolon.
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (5) 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)(5));";
(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)(5); or"; and
(3) in subsection (g)(2), by striking "subsection (f)(2)"
and inserting "subsection (f)(1)(B)".
|
|
|
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;".
|
|
|
SEC. 218. DISPOSABLE INCOME DEFINED.
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 of the filing of
the petition" 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, is amended —
(A) in paragraph (8),
by striking "and" at the end;
(B) in paragraph (9),
by striking the period and inserting a semicolon; and
(C) by adding at the end the following:
"(10) if with respect to the
debtor there is a claim for a domestic support obligation, provide
the applicable notice specified in subsection (c); and"; and
(2) by adding at the end the following:
"(c)(1)
In a case described in subsection (a)(10) to which subsection (a)(10)
applies, the trustee shall—
"(A)(i)
provide written notice to the holder of the claim described in subsection
(a)(10) of such claim and of the right of such holder to use the
services of the State child support enforcement agency established
under sections 464 and 466 of the Social Security Act for the State
in which such holder resides, for assistance in collecting child
support during and after the case under this title;
"(C) at such time as the debtor
is granted a discharge under section 727, provide written notice
to such holder and to such State child support enforcement agency
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) the name of each
creditor that holds a claim that—
"(I) is not discharged under paragraph (2), (4), or (14A)
of section 523(a); or
"(II) was reaffirmed by the debtor under section 524(c).
"(2)(A)
The holder of a claim described in subsection (a)(10) or the State child
support enforcement agency of the State in which such holder resides
may request from a creditor described in paragraph (1)(C)(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 by reason of
making such 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 the debtor
there is a claim for a domestic support obligation, provide the
applicable notice specified in subsection (c)."; and
(2) by adding at the end the following:
"(c)(1)
In a case described in subsection (a)(8) to which subsection (a)(8)
applies, the trustee shall—
"(A)(i)
provide written notice to the holder of the claim described in subsection
(a)(8) of such claim and of the right of such holder to use the
services of the State child support enforcement agency established
under sections 464 and 466 of the Social Security Act for the State
in which such holder resides, for assistance in collecting child
support during and after the case under this title; and
"(C) at such time as the debtor
is granted a discharge under section 1141, provide written notice
to such holder and to such State child support enforcement agency
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) the name of each creditor
that holds a claim that—
"(I) is not discharged
under paragraph (2), (4), or (14A) of section 523(a); or
"(II) was reaffirmed
by the debtor under section 524(c).
"(2)(A)
The holder of a claim described in subsection (a)(8) or the State child
enforcement support agency of the State in which such holder resides
may request from a creditor described in paragraph (1)(C)(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 by reason of
making such 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 the debtor
there is a claim for a domestic support obligation, provide the
applicable notice specified in subsection (c)."; and
(2) by adding at the end the following:
"(c)(1)
In a case described in subsection (b)(6) to which subsection (b)(6)
applies, the trustee shall—
"(A)(i)
provide written notice to the holder of the claim described in subsection
(b)(6) of such claim and of the right of such holder to use the
services of the State child support enforcement agency established
under sections 464 and 466 of the Social Security Act for the State
in which such holder resides, for assistance in collecting child
support during and after the case under this title; and
"(C) at such time as the debtor
is granted a discharge under section 1228, provide written notice
to such holder and to such State child support enforcement agency
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) the name of each creditor
that holds a claim that—
"(I) is not discharged under paragraph (2), (4), or (14A)
of section 523(a); or
"(II) was reaffirmed by the debtor under section 524(c).
"(2)(A)
The holder of a claim described in subsection (b)(6) or the State child
support enforcement agency of the State in which such holder resides
may request from a creditor described in paragraph (1)(C)(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 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 the debtor
there is a claim for a domestic support obligation, provide the
applicable notice specified in subsection (d)."; and
(2) by adding at the end the following:
"(d)(1)
In a case described in subsection (b)(6) to which subsection (b)(6)
applies, the trustee shall—
"(A)(i)
provide written notice to the holder of the claim described in subsection
(b)(6) of such claim and of the right of such holder to use the
services of the State child support enforcement agency established
under sections 464 and 466 of the Social Security Act for the State
in which such holder resides, for assistance in collecting child
support during and after the case under this title; and
"(C) at such time as the debtor
is granted a discharge under section 1328, provide written notice
to such holder and to such State child support enforcement agency
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) the name of each creditor
that holds a claim that—
"(I) is not discharged
under paragraph (2) or (4) of section 523(a); or
"(II) was reaffirmed
by the debtor under section 524(c).
"(2)(A)
The holder of a claim described in subsection (b)(6) or the State child
support enforcement agency of the State in which such holder resides
may request from a creditor described in paragraph (1)(C)(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 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
"(B) any other educational
loan that is a qualified education loan, as defined in section
221(d)(1) of the Internal Revenue Code of 1986, incurred by
a debtor who is an individual;".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 striking "or an employee of an attorney" and inserting "for the
debtor or an employee of such attorney under the direct supervision
of such attorney";
(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 bankruptcy petition 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."; and
(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 which shall be on an official form prescribed by the
Judicial Conference of the United States in accordance with rule 9009
of the Federal Rules of Bankruptcy Procedure.
"(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
"(I) be signed by the debtor
and, under penalty of perjury, by the bankruptcy petition preparer;
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 bankruptcy petition
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).
"(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 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:
"(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 so redesignated—
(i) by striking "Within 10 days after the date of
the filing of 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 so redesignated, 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—
"(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).
(E) in paragraph (4),
as so redesignated, by striking "or the United States trustee"
and inserting "the United States trustee (or the bankruptcy
administrator, if any) 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)(1) If a bankruptcy petition preparer
violates this section or commits any act that the court finds to be
fraudulent, unfair, or deceptive, on the motion of the debtor, trustee,
United States trustee (or the bankruptcy administrator, if any), and
after notice and a hearing, 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 on the motion of the court, the trustee,
or the United States trustee (or the bankruptcy administrator, if any).";
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—
"(3) A
debtor, trustee, creditor, or United States trustee (or the bankruptcy
administrator, if any) may file a motion for an order imposing a fine
on the bankruptcy petition preparer for any violation of this section.
"(4)(A)
Fines imposed under this subsection in judicial districts served by
United States trustees 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 subparagraph shall be available
to fund the enforcement of this section on a national basis.
"(B) Fines
imposed under this subsection in judicial districts served by bankruptcy
administrators shall be deposited as offsetting receipts to the fund
established under section 1931 of title 28, and shall remain available
until expended to reimburse any appropriation for the amount paid out
of such appropriation for expenses of the operation and maintenance
of the courts of the United States.".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Section 507(a) of title 11, United States
Code, as amended by section 212, is amended by inserting
after paragraph (9) the following:
"(10) Tenth, allowed claims for
death or personal injury 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.".
|
|
|
SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.
(a) IN GENERAL.—Section
522 of title 11, United States
Code, is amended —
(i) in subparagraph
(A), by striking
"and" at the end;
(ii) in subparagraph
(B), by striking
the period at the end and inserting "; and";
(iii) by adding at the end the following:
"(C) retirement funds
to the extent that those funds are in a fund or account that is
exempt from taxation under section 401, 403, 408, 408A, 414, 457,
or 501(a) of the Internal Revenue Code of 1986."; and
(iv) by striking "(2)(A)
any property" and inserting:
"(3) Property listed in
this paragraph is—
(B) by striking paragraph
(1) and inserting:
"(2) Property listed in
this paragraph is property that is specified under subsection (d), unless
the State law that is applicable to the debtor under paragraph (3)(A)
specifically does not so authorize.";
(C) by striking "(b)
Notwithstanding" and inserting "(b)(1)
Notwithstanding";
(D) by striking "paragraph (2)" each place it appears
and inserting "paragraph (3)";
(E) by striking "paragraph (1)" each place it appears
and inserting "paragraph (2)";
(F) by striking "Such property is—"; and
(G) by adding at the end the following:
"(4) For purposes of paragraph
(3)(C) and subsection (d)(12), the following shall apply:
"(A) If the retirement
funds are in a retirement fund that has received a favorable determination
under section 7805 of the Internal Revenue Code of 1986, and that
determination is in effect as of the date of the filing of the petition
in a case under this title, those funds shall be presumed to be
exempt from the estate.
"(B) If the retirement
funds are in a retirement fund that has not received a favorable
determination under such section 7805, those funds are exempt from
the estate if the debtor demonstrates that—
"(i) no prior
determination to the contrary has been made by a court or the
Internal Revenue Service; and
"(C) A direct transfer
of retirement funds from 1 fund or account that is exempt from taxation
under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal
Revenue Code of 1986, under section 401(a)(31) of the Internal Revenue
Code of 1986, or otherwise, shall not cease to qualify for exemption
under paragraph (3)(C) or subsection (d)(12) by reason of such direct
transfer.
"(I)
has been distributed from a fund or account that is exempt from
taxation under section 401, 403, 408, 408A, 414, 457, or 501(a)
of the Internal Revenue Code of 1986; and
(A) in the matter preceding paragraph
(1), by striking
"subsection (b)(1)" and inserting "subsection (b)(2)"; and
(B) by adding at the end the following:
"(12) Retirement funds
to the extent that those funds are in a fund or account that is
exempt from taxation under section 401, 403, 408, 408A, 414, 457,
or 501(a) of the Internal Revenue Code of 1986.".
(b) AUTOMATIC STAY.—Section
362(b) of title 11, United
States Code, is amended —
(1) in paragraph
(17), by striking
"or" at the end;
(2) in paragraph
(18), by striking
the period and inserting a semicolon; and
(3) by inserting after paragraph
(18) the following:
"(19) under subsection
(a), of withholding of income from a debtor's wages and collection
of amounts withheld, under the debtor's agreement authorizing that
withholding and collection for the benefit of a pension, profit-sharing,
stock bonus, or other plan established under section 401, 403, 408,
408A, 414, 457, or 501(c) of the Internal Revenue Code of 1986,
that is sponsored by the employer of the debtor, or an affiliate,
successor, or predecessor of such employer—
"(A) to the extent
that the amounts withheld and collected are used solely for
payments relating to a loan from a plan under section 408(b)(1)
of the Employee Retirement Income Security Act of 1974 or is
subject to section 72(p) of the Internal Revenue Code of 1986;
or
"(B) a loan from
a thrift savings plan permitted under subchapter III of chapter
84 of title 5, that satisfies the requirements of section 8433(g)
of such title;
but nothing in this paragraph may be construed to provide that any
loan made under a governmental plan under section 414(d), or a contract
or account under section 403(b), of the Internal Revenue Code of
1986 constitutes a claim or a debt under this title;".
(c) EXCEPTIONS TO DISCHARGE.—Section
523(a) of title 11, United
States Code, as amended by section 215, is amended
by inserting after paragraph
(17) the following:
"(18) owed to
a pension, profit-sharing, stock bonus, or other plan established
under section 401, 403, 408, 408A, 414, 457, or 501(c) of the Internal
Revenue Code of 1986, under—
"(A) a loan
permitted under section 408(b)(1) of the Employee Retirement
Income Security Act of 1974, or subject to section 72(p) of
the Internal Revenue Code of 1986; or
"(B) a loan
from a thrift savings plan permitted under subchapter III of
chapter 84 of title 5, that satisfies the requirements of section
8433(g) of such title;
but nothing in this paragraph may be construed to provide that any
loan made under a governmental plan under section 414(d), or a contract
or account under section 403(b), of the Internal Revenue Code of
1986 constitutes a claim or a debt under this title; or".
(d) PLAN CONTENTS.—Section
1322 of title 11, United
States Code, is amended by adding at the end the following:
"(f) A plan may not materially
alter the terms of a loan described in section 362(b)(19) and any amounts
required to repay such loan shall not constitute 'disposable income'
under section 1325.".
(1) LIMITATION.—Section
522 of title 11, United
States Code, is amended by adding at the end the following:
"(n) For assets in individual
retirement accounts described in section 408 or 408A of the Internal
Revenue Code of 1986, other than a simplified employee pension under
section 408(k) of such Code or a simple retirement account under section
408(p) of such Code, the aggregate value of such assets exempted under
this section, without regard to amounts attributable to rollover contributions
under section 402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8)
of the Internal Revenue Code of 1986, and earnings thereon, shall not
exceed $1,000,000 in a case filed by a debtor who is an individual,
except that such amount may be increased if the interests of justice
so require.".
(2) ADJUSTMENT OF DOLLAR AMOUNTS.—Paragraphs
(1) and
(2) of section
104(b) of title 11,
United States Code, are amended by inserting "522(n)," after "522(d),".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANKRUPTCY.
(a) EXCLUSIONS.—Section 541 of
title 11, United States Code, is amended —
(A) in paragraph (4),
by striking "or" at the end;
(B) by redesignating paragraph (5) as paragraph
(9); and
(C) by inserting after paragraph
(4) the following:
"(5) funds placed in an education
individual retirement account (as defined in section 530(b)(1) of
the Internal Revenue Code of 1986) not later than 365 days before
the date of the filing of the petition in a case under this title,
but—
"(A) only if the designated
beneficiary of such account was a child, stepchild, grandchild,
or stepgrandchild of the debtor for the taxable year for which
funds were placed in such account;
"(B) only to the extent that
such funds—
"(i) are not pledged or
promised to any entity in connection with any extension
of credit; and
"(ii) are not excess contributions
(as described in section 4973(e) of the Internal Revenue
Code of 1986); and
"(C) in the case of funds placed
in all such accounts having the same designated beneficiary
not earlier than 720 days nor later than 365 days before such
date, only so much of such funds as does not exceed $5,000;
"(6) funds used to purchase a tuition
credit or certificate or contributed to an account in accordance
with section 529(b)(1)(A) of the Internal Revenue Code of 1986 under
a qualified State tuition program (as defined in section 529(b)(1)
of such Code) not later than 365 days before the date of the filing
of the petition in a case under this title, but—
"(A) only if the designated
beneficiary of the amounts paid or contributed to such tuition
program was a child, stepchild, grandchild, or stepgrandchild
of the debtor for the taxable year for which funds were paid
or contributed;
"(B) with respect to the aggregate
amount paid or contributed to such program having the same designated
beneficiary, only so much of such amount as does not exceed
the total contributions permitted under section 529(b)(7) of
such Code with respect to such beneficiary, as adjusted beginning
on the date of the filing of the petition in a case under this
title by the annual increase or decrease (rounded to the nearest
tenth of 1 percent) in the education expenditure category of
the Consumer Price Index prepared by the Department of Labor;
and
"(C) in the case of funds paid
or contributed to such program having the same designated beneficiary
not earlier than 720 days nor later than 365 days before such
date, only so much of such funds as does not exceed $5,000;";
and
(2) by adding at the end the following:
"(e) In determining whether any of the
relationships specified in paragraph (5)(A) or (6)(A) of subsection
(b) exists, a legally adopted child of an individual (and a child who
is a member of an individual's household, if placed with such individual
by an authorized placement agency for legal adoption by such individual),
or a foster child of an individual (if such child has as the child's
principal place of abode the home of the debtor and is a member of the
debtor's household) shall be treated as a child of such individual by
blood.".
(b) DEBTOR'S DUTIES.—Section 521 of title 11, United States Code, as amended by section 106,
is amended by adding at the end the following:
"(c) In addition to meeting the requirements
under subsection (a), a debtor shall file with the court a record of
any interest that a debtor has in an education individual retirement
account (as defined in section 530(b)(1) of the Internal Revenue Code
of 1986) or under a qualified State tuition program (as defined in section
529(b)(1) of such Code).".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 226. DEFINITIONS.
(a) DEFINITIONS.—Section 101 of
title 11, United States Code, is amended —
(1) by inserting after paragraph
(2) the following:
"(3) 'assisted person' means
any person whose debts consist primarily of consumer debts and the
value of whose nonexempt property is less than $150,000;";
(2) by inserting after paragraph
(4) the following:
"(4A) 'bankruptcy assistance' means
any goods or services sold or otherwise provided to an assisted
person with the express or implied purpose of providing information,
advice, counsel, document preparation, or filing, or attendance
at a creditors' meeting or appearing in a case or proceeding on
behalf of another or providing legal representation with respect
to a case or proceeding under this title;"; and
(3) by inserting after paragraph
(12) the following:
"(12A) 'debt relief agency'
means any person who provides any bankruptcy assistance to an assisted
person in return for the payment of money or other valuable consideration,
or who is a bankruptcy petition preparer under section 110, but
does not include—
"(A) any person who
is an officer, director, employee, or agent of a person who
provides such assistance or of the bankruptcy petition preparer;
"(B) a nonprofit organization
that is exempt from taxation under section 501(c)(3) of the
Internal Revenue Code of 1986;
"(C) a creditor of such
assisted person, to the extent that the creditor is assisting
such assisted person to restructure any debt owed by such assisted
person to the creditor;
"(D) a depository institution
(as defined in section 3 of the Federal Deposit Insurance Act)
or any Federal credit union or State credit union (as those
terms are defined in section 101 of the Federal Credit Union
Act), or any affiliate or subsidiary of such depository institution
or credit union; or
"(E) an author, publisher,
distributor, or seller of works subject to copyright protection
under title 17, when acting in such capacity.".
(b) CONFORMING AMENDMENT.—Section
104(b) of title 11, United States Code,
is amended by inserting "101(3)," after "sections" each place it appears.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES.
(a) ENFORCEMENT.—Subchapter II of chapter 5 of title 11, United
States Code, is amended by adding at the end the following:
"Sec. 526. Restrictions on debt relief
agencies
"(a) A debt relief agency shall not—
"(1) fail to perform any service
that such agency informed an assisted person or prospective assisted
person it would provide in connection with a case or proceeding
under this title;
"(2) make any statement, or counsel
or advise any assisted person or prospective assisted person to
make a statement in a document filed in a case or proceeding under
this title, that is untrue and misleading, or that upon the exercise
of reasonable care, should have been known by such agency to be
untrue or misleading;
"(3) misrepresent to any assisted
person or prospective assisted person, directly or indirectly, affirmatively
or by material omission, with respect to—
"(A) the services that such
agency will provide to such person; or
"(B) the benefits and risks
that may result if such person becomes a debtor in a case under
this title; or
"(4) advise an assisted person or
prospective assisted person to incur more debt in contemplation
of such person filing a case under this title or to pay an attorney
or bankruptcy petition preparer fee or charge for services performed
as part of preparing for or representing a debtor in a case under
this title.
"(b) Any waiver by any assisted person
of any protection or right provided under this section shall not be
enforceable against the debtor by any Federal or State court or any
other person, but may be enforced against a debt relief agency.
"(c)(1)
Any contract for bankruptcy assistance between a debt relief agency
and an assisted person that does not comply with the material requirements
of this section, section 527, or section 528 shall be void and may not
be enforced by any Federal or State court or by any other person, other
than such assisted person.
"(2) Any
debt relief agency shall be liable to an assisted person in the amount
of any fees or charges in connection with providing bankruptcy assistance
to such person that such debt relief agency has received, for actual
damages, and for reasonable attorneys' fees and costs if such agency
is found, after notice and a hearing, to have—
"(3) In
addition to such other remedies as are provided under State law, whenever
the chief law enforcement officer of a State, or an official or agency
designated by a State, has reason to believe that any person has violated
or is violating this section, the State—
"(4) The
district courts of the United States for districts located in the State
shall have concurrent jurisdiction of any action under subparagraph
(A) or (B) of paragraph (3).
"(5) Notwithstanding
any other provision of Federal law and in addition to any other remedy
provided under Federal or State law, if the court, on its own motion
or on the motion of the United States trustee or the debtor, finds that
a person intentionally violated this section, or engaged in a clear
and consistent pattern or practice of violating this section, the court
may—
"(d) No provision of this section, section
527, or section 528 shall—
"(1) annul, alter, affect, or exempt
any person subject to such sections from complying with any law
of any State except to the extent that such law is inconsistent
with those sections, and then only to the extent of the inconsistency;
or
"(2) be deemed to limit or curtail
the authority or ability—
"(A) of a State or subdivision
or instrumentality thereof, to determine and enforce qualifications
for the practice of law under the laws of that State; or
"(B) of a Federal court to
determine and enforce the qualifications for the practice of
law before that court.".
(b) CONFORMING AMENDMENT.—The table of sections for chapter
5 of title 11, United States Code, is amended
by inserting after the item relating to section
525, the following:
"526. Restrictions on debt relief
agencies.".
|
|
|
|
| |
| |
|
|
| |
| |
|
|
| |
| |
|
|
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 228. DISCLOSURES.
(a) DISCLOSURES.—Subchapter II of chapter
5 of title 11, United States Code, as amended
by section 227, is amended by adding at the end the
following:
"Sec. 527. Disclosures
"(a) A debt relief agency providing bankruptcy
assistance to an assisted person shall provide—
"(1) the written notice required
under section 342(b)(1); and
"(2) to the extent not covered in
the written notice described in paragraph (1), and not later than
3 business days after the first date on which a debt relief agency
first offers to provide any bankruptcy assistance services to an
assisted person, a clear and conspicuous written notice advising
assisted persons that—
"(A) all information that the
assisted person is required to provide with a petition and thereafter
during a case under this title is required to be complete, accurate,
and truthful;
"(B) all assets and all liabilities
are required to be completely and accurately disclosed in the
documents filed to commence the case, and the replacement value
of each asset as defined in section 506 must be stated in those
documents where requested after reasonable inquiry to establish
such value;
"(C) current monthly income,
the amounts specified in section 707(b)(2), and, in a case under
chapter 13 of this title, disposable income (determined in accordance
with section 707(b)(2)), are required to be stated after reasonable
inquiry; and
"(D) information that an assisted
person provides during their case may be audited pursuant to
this title, and that failure to provide such information may
result in dismissal of the case under this title or other sanction,
including a criminal sanction.
"(b) A debt relief agency providing bankruptcy
assistance to an assisted person shall provide each assisted person
at the same time as the notices required under subsection (a)(1) the
following statement, to the extent applicable, or one substantially
similar. The statement shall be clear and conspicuous and shall be in
a single document separate from other documents or notices provided
to the assisted person:
"IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN
ATTORNEY OR BANKRUPTCY PETITION PREPARER.
" 'If you decide to seek bankruptcy relief, you can represent yourself,
you can hire an attorney to represent you, or you can get help in some
localities from a bankruptcy petition preparer who is not an attorney.
THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE
YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION
PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract
before you hire anyone.
" 'The following information helps you understand what must be done
in a routine bankruptcy case to help you evaluate how much service you
need. Although bankruptcy can be complex, many cases are routine.
" 'Before filing a bankruptcy case, either you or your attorney should
analyze your eligibility for different forms of debt relief available
under the Bankruptcy Code and which form of relief is most likely to
be beneficial for you. Be sure you understand the relief you can obtain
and its limitations. To file a bankruptcy case, documents called a Petition,
Schedules and Statement of Financial Affairs, as well as in some cases
a Statement of Intention need to be prepared correctly and filed with
the bankruptcy court. You will have to pay a filing fee to the bankruptcy
court. Once your case starts, you will have to attend the required first
meeting of creditors where you may be questioned by a court official
called a "trustee" and by creditors.
" 'If you choose to file a chapter 7 case, you may be asked by a creditor
to reaffirm a debt. You may want help deciding whether to do so. A creditor
is not permitted to coerce you into reaffirming your debts.
" 'If you choose to file a chapter 13 case in which you repay your creditors
what you can afford over 3 to 5 years, you may also want help with preparing
your chapter 13 plan and with the confirmation hearing on your plan
which will be before a bankruptcy judge.
" 'If you select another type of relief under the
Bankruptcy Code other
than chapter 7 or chapter 13, you will want to find out what should
be done from someone familiar with that type of relief.
" 'Your bankruptcy case may also involve litigation. You are generally
permitted to represent yourself in litigation in bankruptcy court, but
only attorneys, not bankruptcy petition preparers, can give you legal
advice.'.
"(c) Except to the extent the debt relief
agency provides the required information itself after reasonably diligent
inquiry of the assisted person or others so as to obtain such information
reasonably accurately for inclusion on the petition, schedules or statement
of financial affairs, a debt relief agency providing bankruptcy assistance
to an assisted person, to the extent permitted by nonbankruptcy law,
shall provide each assisted person at the time required for the notice
required under subsection (a)(1) reasonably sufficient information (which
shall be provided in a clear and conspicuous writing) to the assisted
person on how to provide all the information the assisted person is
required to provide under this title pursuant to section 521, including—
"(1) how to value assets at replacement
value, determine current monthly income, the amounts specified in
section 707(b)(2) and, in a chapter 13 case, how to determine disposable
income in accordance with section 707(b)(2) and related calculations;
"(2) how to complete the list of
creditors, including how to determine what amount is owed and what
address for the creditor should be shown; and
"(3) how to determine what property
is exempt and how to value exempt property at replacement value
as defined in section 506.
"(d) A debt relief agency shall maintain
a copy of the notices required under subsection (a) of this section
for 2 years after the date on which the notice is given the assisted
person.".
(b) CONFORMING AMENDMENT.—The table of sections for chapter
5 of title 11, United States Code, as amended
by section 227, is amended by inserting after the
item relating to section 526 the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES.
(a) ENFORCEMENT.—Subchapter II of chapter
5 of title 11, United States Code, as amended
by sections 227 and 228, is amended
by adding at the end the following:
"Sec. 528. Requirements for debt relief
agencies
"(a) A debt relief agency shall—
"(1) not later than 5 business days
after the first date on which such agency provides any bankruptcy
assistance services to an assisted person, but prior to such assisted
person's petition under this title being filed, execute a written
contract with such assisted person that explains clearly and conspicuously—
"(A) the services such agency
will provide to such assisted person; and
"(B) the fees or charges for
such services, and the terms of payment;
"(2) provide the assisted person
with a copy of the fully executed and completed contract;
"(3) clearly and conspicuously disclose
in any advertisement of bankruptcy assistance services or of the
benefits of bankruptcy directed to the general public (whether in
general media, seminars or specific mailings, telephonic or electronic
messages, or otherwise) that the services or benefits are with respect
to bankruptcy relief under this title; and
"(4) clearly and conspicuously use
the following statement in such advertisement: "We are a debt relief
agency. We help people file for bankruptcy relief under the
Bankruptcy
Code." or a substantially similar statement.
"(b)(1)
An advertisement of bankruptcy assistance services or of the benefits
of bankruptcy directed to the general public includes—
"(2) An
advertisement, directed to the general public, indicating that the debt
relief agency provides assistance with respect to credit defaults, mortgage
foreclosures, eviction proceedings, excessive debt, debt collection
pressure, or inability to pay any consumer debt shall—
(b) CONFORMING AMENDMENT.—The table of sections for chapter
5 of title 11, United States Code, as amended by section
227 and 228, is amended by inserting
after the item relating to section 527,
the following:
"528. Requirements for debt relief
agencies.".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 230. GAO STUDY.
(a) STUDY.—Not later than 270 days after the date of enactment
of this Act, the Comptroller General of the United States shall conduct
a study of the feasibility, effectiveness, and cost of requiring trustees
appointed under title 11, United States Code, or the bankruptcy courts,
to provide to the Office of Child Support Enforcement promptly after
the commencement of cases by debtors who are individuals under such
title, the names and social security account numbers of such debtors
for the purposes of allowing such Office to determine whether such debtors
have outstanding obligations for child support (as determined on the
basis of information in the Federal Case Registry or other national
database).
(b) REPORT.—Not later than 300 days after the date of enactment
of this Act, the Comptroller General shall submit to the President pro
tempore of the Senate and the Speaker of the House of Representatives
a report containing the results of the study required by subsection
(a).
|
|
|
|
|
|
|
SEC. 231. PROTECTION OF PERSONALLY IDENTIFIABLE INFORMATION.
(a) LIMITATION.—Section
363(b)(1)
of title 11, United States Code, is amended by striking the period at
the end and inserting the following:
", except that if the debtor in connection with offering a product or
a service discloses to an individual a policy prohibiting the transfer
of personally identifiable information about individuals to persons
that are not affiliated with the debtor and if such policy is in effect
on the date of the commencement of the case, then the trustee may not
sell or lease personally identifiable information to any person unless—
"(A) such sale or such lease is
consistent with such policy; or
"(B) after appointment of a consumer
privacy ombudsman in accordance with section 332, and after notice
and a hearing, the court approves such sale or such lease—
"(i) giving due consideration
to the facts, circumstances, and conditions of such sale or
such lease; and
"(ii) finding that no showing
was made that such sale or such lease would violate applicable
nonbankruptcy law.".
(b) DEFINITION.—Section 101
of title 11, United States Code, is amended by inserting after paragraph
(41) the following:
"(41A) 'personally identifiable
information' means—
"(A) if provided by an individual
to the debtor in connection with obtaining a product or a service
from the debtor primarily for personal, family, or household
purposes—
"(i) the first name
(or initial) and last name of such individual, whether given
at birth or time of adoption, or resulting from a lawful
change of name;
"(ii) the geographical
address of a physical place of residence of such individual;
"(iii) an electronic
address (including an e-mail address) of such individual;
"(iv) a telephone number
dedicated to contacting such individual at such physical
place of residence;
"(v) a social security account number
issued to such individual; or
"(vi) the account number
of a credit card issued to such individual; or
"(B) if identified in connection
with 1 or more of the items of information specified in subparagraph
(A)—
"(i) a birth date,
the number of a certificate of birth or adoption, or a place
of birth; or
"(ii) any other information
concerning an identified individual that, if disclosed,
will result in contacting or identifying such individual
physically or electronically;".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 232. CONSUMER PRIVACY OMBUDSMAN.
(a) CONSUMER PRIVACY OMBUDSMAN.—Title 11 of the United States
Code is amended by inserting after section
331 the following:
"Sec. 332. Consumer privacy ombudsman
"(a) If a hearing is required under section
363(b)(1)(B), the court shall order the United States trustee to appoint,
not later than 5 days before the commencement of the hearing, 1 disinterested
person (other than the United States trustee) to serve as the consumer
privacy ombudsman in the case and shall require that notice of such
hearing be timely given to such ombudsman.
"(b) The consumer privacy ombudsman may
appear and be heard at such hearing and shall provide to the court information
to assist the court in its consideration of the facts, circumstances,
and conditions of the proposed sale or lease of personally identifiable
information under section 363(b)(1)(B). Such information may include
presentation of—
"(1) the debtor's privacy policy;
"(2) the potential losses or gains
of privacy to consumers if such sale or such lease is approved by
the court;
"(3) the potential costs or benefits
to consumers if such sale or such lease is approved by the court;
and
"(4) the potential alternatives
that would mitigate potential privacy losses or potential costs
to consumers.
"(c) A consumer privacy ombudsman shall
not disclose any personally identifiable information obtained by the
ombudsman under this title.".
(b) COMPENSATION OF CONSUMER PRIVACY OMBUDSMAN.—Section
330(a)(1) of title 11, United States
Code, is amended in the matter preceding subparagraph (A), by inserting
"a consumer privacy ombudsman appointed under section 332," before "an
examiner".
(c) CONFORMING AMENDMENT.—The table of sections for subchapter
II of chapter
3 of title 11, United States
Code, is amended by adding at the end the following:
"332. Consumer privacy ombudsman.".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 233. PROHIBITION ON DISCLOSURE OF NAME OF MINOR CHILDREN.
(a) PROHIBITION.—Title 11 of the United States Code, as amended
by section 106, is amended by inserting
after section 111 the following:
"Sec. 112. Prohibition on disclosure of
name of minor children
"The debtor may be required to provide information regarding a minor
child involved in matters under this title but may not be required to
disclose in the public records in the case the name of such minor child.
The debtor may be required to disclose the name of such minor child
in a nonpublic record that is maintained by the court and made available
by the court for examination by the United States trustee, the trustee,
and the auditor (if any) serving under section 586(f) of title 28, in
the case. The court, the United States trustee, the trustee, and such
auditor shall not disclose the name of such minor child maintained in
such nonpublic record.".
(b) CLERICAL AMENDMENT.—The table of sections for chapter
1 of title 11, United States Code, as amended by section 106, is amended
by inserting after the item relating to section
111 the following:
"112. Prohibition on disclosure
of name of minor children.".
(c) CONFORMING AMENDMENT.—Section
107(a) of title 11, United States Code, is amended by inserting
"and subject to section
112" after "section".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEC. 234. PROTECTION OF PERSONAL INFORMATION.
(a) Restriction of Public
Access to Certain Information Contained in Bankruptcy Case Files.—Section
107 of title 11, United States Code, is
amended by adding at the end the following:
"(c)(1)
The bankruptcy court, for cause, may protect an individual, with respect
to the following types of information to the extent the court finds
that disclosure of such information would create undue risk of identity
theft or other unlawful injury to the individual or the individual's
property:
"(2) Upon
ex parte application demonstrating cause, the court shall provide access
to information protected pursuant to paragraph (1) to an entity acting
pursuant to the police or regulatory power of a domestic governmental
unit.
"(3) The
United States trustee, bankruptcy administrator, trustee, and any auditor
serving under section 586(f) of title 28—
(b) Security of Social
Security Account Number of Debtor in Notice to Creditor.—Section
342(c) of title 11, United States Code,
is amended —
(1) by inserting "last 4 digits of the" before "taxpayer
identification number"; and
(2) by adding at the end the following: "If the notice concerns
an amendment that adds a creditor to the schedules of assets and
liabilities, the debtor shall include the full taxpayer identification
number in the notice sent to that creditor, but the debtor shall
include only the last 4 digits of the taxpayer identification number
in the copy of the notice filed with the court.".
(c) Conforming Amendment.—Section
107(a) of title 11, United States Code,
is amended by striking "subsection (b)," and inserting "subsections
(b) and (c),".
|
|
|
|
|
|
|
|
|
|
|
|
|
